Oregon Voters Reject Statewide Gas Tax but Back Dozens of Local Levies
Why It Matters
Oregon’s May 19 primary election produced a split verdict on taxation that carries real consequences for school funding, public safety, and local infrastructure. While voters statewide turned down a measure to raise gas taxes and vehicle registration fees for transportation, the results underscore a broader pattern: Oregonians are generally willing to fund services they can see and touch close to home, even amid economic uncertainty.
What Happened
Oregon voters considered 66 local tax measures in the May primary. Forty-two of those measures appear to be passing — a range spanning library services, local road improvements, school levies, and fire and emergency services. The statewide transportation measure, Measure 120, was rejected by wide margins.
The contrast between the statewide rejection and local approvals was sharp. Six hyper-local road improvement measures passed in rural areas, while Measure 120, which would have directed funding to statewide transportation infrastructure, failed decisively. Public opinion researcher John Horvick attributed the difference to proximity. “It’s ‘I know the road. I’m clear about who are the people that are getting the work done for me,'” he said, explaining that local measures carry a directness that statewide proposals often lack.
Horvick noted that overall support for local funding measures represents a slight decline compared to the past five years, but that Oregonians continue to demonstrate willingness to back services they value when they trust the money will be well spent.
By the Numbers
- 66 local tax measures were on the May 19 ballot statewide; 42 appear to be passing.
- The Newberg School District faces a $5.7 million shortfall for the 2026–27 school year after its levy failed; 17.5 teaching positions and 10 support staff positions will be cut.
- The Canby School District faces a $6.3 million shortfall; the district is losing 60 staff members this year after cutting 74 last year — a combined reduction representing more than 25 percent of its workforce.
- Clackamas County voters rejected a public safety levy increase by more than 20 percentage points, a move that could eliminate 84 of 483 jail beds and cut dozens of sheriff’s office positions, including 34 patrol deputies.
- The Rogue Valley Transportation District renewal passed with 63% of roughly 45,000 Medford-area votes.
Zoom Out
The Oregon results reflect a pattern visible across the country: voter skepticism toward broad statewide tax increases coexists with continued appetite for targeted local levies. Economic pressure — including persistent inflation — has made voters more selective, even as the need for local services remains acute. Oregon’s school funding challenges mirror those seen in other states where districts have struggled to balance state formula funding against rising operating costs. Oregon has also been at the center of national debates over federal trade policy, adding to the fiscal uncertainty that local officials say shaped the election environment.
Newberg Superintendent Dave Parker cited “challenges going on in Washington, D.C.” and the statewide gas tax measure as headwinds that may have dampened local school levy support — a dynamic in which federal and state-level political noise bleeds into purely local ballot decisions.
What’s Next
Several school districts facing failed levies must now make difficult budget decisions before the 2026–27 school year begins. Newberg and Canby are both planning four furlough days, effectively shortening the school year. The Canby school board is scheduled to meet June 1 to discuss next steps and continued advocacy for increased state funding.
Under an order from Gov. Tina Kotek issued in April, any instructional hours removed through furlough days must be restored by the 2027–28 school year — meaning districts relying on furloughs as a short-term fix will face additional pressure ahead. The Oregon Department of Education is currently collecting data from districts on instructional time compliance.
In Clackamas County, officials must identify alternative revenue or make significant cuts to jail staffing and patrol operations before the current levy expires. OSU Extension in Lane County, whose youth programs levy failed by a narrow margin, says its reserves will sustain operations in the near term while the organization evaluates its options.