Grants Pass officials are voicing strong concerns about potential legislation in Salem that could reshape how transportation dollars are distributed across Oregon. In a letter dated August 27, 2025, the City of Grants Pass clarified its stance on the issue, stressing that while it supports maintaining and improving the state’s transportation network, it does not support measures that would increase taxes on local residents.
The letter, signed by Mayor Clint Scherf, Council President Victoria Marshall, and City Manager Aaron Cubic, was addressed to legislative committee chairs and members reviewing LC 2, a measure tied to the upcoming special session. City leaders emphasized that their testimony should not be misinterpreted as support for tax hikes. “The City is not supporting legislation in this special session that increases any taxes. Our testimony is intended solely to reflect support for preserving the longstanding State Highway Fund (SHF) revenue sharing model,” the letter stated.
Grants Pass currently receives about $3 million every two years through SHF allocations, money distributed according to a formula that directs 50 percent of revenues to the state, 30 percent to counties, and 20 percent to cities. City officials argue that this framework is essential because it provides local governments with a reliable and dedicated funding stream for Oregon’s vast road network.
City leaders also underscored the impact of rising costs on residents and small businesses. They cautioned that additional financial burdens could make it even harder for households already grappling with higher expenses. “We recognize the necessity of sustained investment; we also believe successful transportation packages succeed when they pair revenue with accountability, transparency, and sensitivity to household and business costs,” the letter explained.
In the communication, Grants Pass officials urged legislators to maintain the existing revenue-sharing structure within the SHF while exploring other ways to secure revenue that do not increase taxes. They also called for stronger oversight at the state level, emphasizing the need for clearer project lists, more timely reporting, and outcome measures that demonstrate the return on taxpayer investment.
The city’s position reflects broader concerns heard across Oregon as lawmakers prepare for a special session focused on transportation funding. Cities and counties alike rely heavily on SHF dollars to maintain roads, address safety needs, and ensure mobility. Grants Pass leaders argue that altering the revenue formula or raising taxes could undermine those goals rather than strengthen them.
“The City of Grants Pass is dedicated to being a constructive partner in the effort to strengthen Oregon’s transportation network. We ask that as the Legislature look internally for existing revenue to ensure the cities share of the State Highway Fund be protected so communities can sustain both infrastructure and economic vitality,” the letter concluded.
As the debate continues in Salem, Grants Pass leaders are making it clear: they want stability and fairness in funding, not additional costs pushed onto their residents.

