SALEM – Gov. Ted Kulongoski’s plan for the next biennium includes a proposal to pump nearly $1 billion a biennium into local economies, with citizens picking up the tab in higher fees and taxes.

The Jobs and Transportation Act of 2009, presented last month to the Oregon House and Senate Transportation Committees, would create thousands of jobs, establish long-term funding for Oregon’s statewide transportation system and address greenhouse gas emissions in transportation construction and planning.

“Investing in our transportation system is the strongest stimulus tool available to us during this current economic downturn,” Kulongoski wrote in his message to lawmakers. “(Additionally), Oregon will see a steep decline in Oregon Transportation Investment Act funding starting in 2010 if we don’t reinvest now.”

However, the funding strategy is expected to stir debate when the Legislature takes up the proposal in January.

The governor, who released his proposed budget last week, has called for increases in state registration and title fees, a 2-cent gas tax increase and a cigarette tax hike.

State Sen. Dave Nelson (R-Pendleton) said there’s a fair chance the proposal could pass, given the Democratic dominance of the Legislature, but he warned that “the act has a long way to go.”

State Sen. Ted Ferrioli (R-John Day) described the funding as a Rube Goldberg-esque collection of fees and taxes, and said it would likely be referred to the voters even if it gained approval in the Legislature.

He said most folks don’t care for gas tax hikes, and rural Oregonians in particular will have a hard time dealing with stiff title registration increases for trucks and large vehicles.

Ferrioli said the plan essentially extends the strategy of the past, using roads and bridge work to build our economy.

It worked in the good times, he said, because the bond market was favorable.

“Now we’re in the crappiest bond market in 30 years,” he said.

“The strategy of going to the bond market now – at unfavorable rates, and with the taxpayers dubious at best about increased fees and costs – doesn’t work.”

The plan was developed from input by an advisory committee composed of business leaders, legislators, local and state officials, and transportation and land use experts. One of the primary concerns was to create a baseline level of road dollars, $6.5 million annually, for the 12 counties most dependent on the federal forest payments program, which is set to phase out in four years. Grant County is one of those counties.

In addition to shoring up rural counties’ road funds, Kulongoski predicts that the plan would support at least 6,700 jobs per year in the first five years the plan is active.

The plan would earmark $5 million for elderly and disabled transit services statewide; $600 million in one-time bond proceeds to relieve freight bottlenecks across the state; and $150 million to extend the ConnectOregon transportation funding program.

The ConnectOregon Acts of 2005 and 2007 brought an additional $200 million to railroad, port, airport and transit projects throughout the state.

The proposal could produce about $91 million for city and county projects. The preliminary numbers for the local area include: Grant County, $385,000; John Day, $64,523; Canyon City, $23,368; Dayville, $6,103; Granite $1,046; Long Creek, $7,673; Monument, $4,708; Mt.Vernon, $20,926; Prairie City $38,365; and Seneca, $8,022.

The Act also would dedicate funding for non-highway projects such as light-rail expansion or construction and address state goals for reducing greenhouse emissions by support of community plans for bicycle and pedestrian paths, a statewide rideshare program, incentive programs designed to reduce the number of cars on the road and other plans.

To encourage the use of technologies other than petroleum-powered vehicles, the governor has proposed shifting business and residential energy tax credits toward new “medium speed” vehicles.

The act also proposes a broadening of environmental standards currently applied to OTIA III construction projects. Reports suggest that these performance standards are already saving money for contractors in addition to protecting the environment, so the act calls for the standards to be applied to all construction contracts supported by state funds.

The 2-cent gas tax might seem small, but citizens still smarting from $4-gallon prices at the pump may still object. Oregonians currently pay combined state and federal taxes of 43.4 cents per gallon on gasoline and 48.7 cents per gallon on diesel. The federal portion of that is 18.4 cents per gallon on gas and 24.4 cents per gallon for diesel.

Nevertheless, the governor’s office remains optimistic about passage of some form of the Act.

“Based on what we saw in response when the governor presented this package, we’re going to see a lot of attention paid to this, said Rem Nivens, spokesperson for the Governor’s office. “People do recognize that improved transportation will be key in terms of economic prosperity for the state and the ability to get goods around the state.”