La Grande Proposes Gas Tax to Repair Oregon City Roads

La Grande, Oregon, is asking voters to approve a local 5-cent-per-gallon gas tax to repair damaged streets and sidewalks as the city faces worsening road conditions and a broader debate over transportation funding during the 2026 governor's race.

The city of about 13,000 people has previously failed to pass similar measures, while state transportation funding has also become a major political issue. According to OPB, voters across Oregon have prioritized road maintenance but largely opposed higher gas taxes.

An OPB poll of 915 likely Oregon voters found 86% agreed maintaining and repairing existing roads, highways and bridges was a priority. The same poll found 73% considered raising gas taxes a poor approach.

La Grande Public Works Director Kyle Carpenter said local governments face funding shortages that are limiting road maintenance options.

"If there are no new revenue sources, you end up with a whole bunch of potholes and trying to do whatever you can to cobble together a street that people can still get around on," said Kyle Carpenter, Public Works Director.

Carpenter said the Oregon Department of Transportation has a $200 million funding shortfall, affecting paving and maintenance projects. He also warned that reduced funding could eventually force some smaller roads to return to gravel surfaces.

"But at some point you’ll end up with a low enough amount of funds that to avoid any liability for creating unsafe situations, you’ll turn them back to gravel, which is kind of a crazy thought," said Kyle Carpenter, Public Works Director.

The proposed tax has divided La Grande residents. Some residents cited pothole damage and safety concerns, while others said additional taxes would be difficult to afford.

Oregon Gov. Tina Kotek addressed rural transportation concerns during a debate with state Sen. Christine Drazan on Oct. 1. Kotek supported a statewide 6-cent gas tax increase during her first term, but voters rejected the measure, with 80% voting against it.

"We all need safe roads and bridges to travel, to move things, to get to where we need to go," said Tina Kotek, Governor.

Drazan has opposed higher gas taxes and has proposed freezing the state's current 40-cents-a-gallon gas tax. She described the transportation agency's funding problems as a leadership issue during the debate.

"Another example of failed leadership," said Christine Drazan, State Senator.

Transportation economist Jenny Liu of Portland State University said finding a reliable funding method remains important for Oregon's economy and transportation system.

"It’s a tough thing to sell in these economic times," said Jenny Liu, Transportation Economist who teaches at Portland State University.