OTA Dispatch Issue 4 2017

8 Oregon Trucking Associations, Inc. Oregon Truck Dispatch A s we close in on the end of 2017, the trucking industry, as always, has many challenges and opportunities facing us. Our industry continues to see growth in freight volumes, while at the same time we are experiencing the beginnings of the greatest driver shortage we have ever seen. Governments at all levels are looking to bolster their budgets, which will likely include new or increased taxes. So, how will the next year unfold? Unless one of you has a better crystal ball than I do, we’ll have to rely on a few things we already know. In early 2017, Portland implemented the Weight Miles Tax Surcharge, which tacked a 2.8 percent surcharge on top of the state weight-mile tax. Some optimistic individuals have speculated that it will disappear as the state tax increases; however, governmental bodies rarely repeal taxes once they’re on the books. We’ll see. At the state level, we saw the passage of the transportation package. There are obviously many positives to improving our highways and infrastructure, as well as the promise of reduced congestion. Some OTA members may also directly benefit from the expected jobs creation this investment will bring; however, the old adage still rings true—there’s no such thing as a free lunch. The cost of this package will have a substantial impact on all our businesses. The increase the first year is 25 percent and will increase to 53 percent over the following six years. This will be difficult to absorb into our budgets, especially as spending in other areas, such as driver pay and benefits, also increases. There is a bit of a silver lining—this package started at twice the size of the final version. It was only through OTA’s efforts and those of others siding with us that we were able to cut the cost in half. As part of the new transportation package, we were able to get the oversight of ODOT placed under the Oregon Transportation Commission (OTC). OTC will be granted independent staff and the power to hire and fire the ODOT director in consultation with the governor, creating some hope to improve ODOT’s accountability and transparency. This move decentralizes the supervision of the agency to the regional representatives on the commission. In this next legislative session, we could see continued efforts to implement either a carbon tax or cap and trade model similar to our neighbors to the south. Also, the passage of employee benefit mandates has been a priority for all three states on the west coast and will most likely continue. With all this in front of us, it seems we have two choices. Either we can retreat to our offices and hope for the best, or we can step up our efforts and raise our ability to greatly influence the outcome. In my opinion, we should do the latter! To accomplish this, we will need to substantially increase our involvement in the process with both time and money. Now that ODOT’s oversight has moved under the OTC, we need to engage our local commission members in order to influence outcomes in our favor. Your commitment of time and financial support of OTA’s government affairs activities make this fight possible. While taxes will be collected for investing in our infrastructure, your investment in the Oregon Truck PAC fund goes to several key areas that directly benefit our industry: Lobby efforts to curb some legislation or defeat it altogether. Supporting legislators who work well with our industry and candidates who understand our position where their incumbent opponents don’t. Teaming with others to form business coalitions that leverage all of our investments into defeating detrimental legislation. The cost of these activities continues to rise, especially as well-funded unions and other groups are often our primary opponents. While our goal has been to raise $100,000 annually, Truck PAC contributions typically average between $50,000–$60,000. I thank all of you who have contributed—both trucking companies and allied members alike. If, however, we want to be effective and retain our “seat at the table,” we realistically need to raise at least $200,000 per year. I realize that this is not an easy number to swallow, but spread out across our membership, it’s doable. To that end, I pledge that my companies will give one penny for every 10 miles we operate in Oregon, and I ask that each company that travels over 100,000 miles in Oregon do the same. This is 1/10th of a penny per mile, but collectively it is over $225,000 per year in contributions to the Truck PAC. To all the Allied members who have supported us in the past, we thank you! We ask that you continue your support, and if you are able increase your contribution, please do so. More importantly, convince fellow Allied members to join our efforts. It will ultimately change the landscape in Oregon, making it easier for all of us to do business. Every dollar counts. Learn more about other ways to contribute on the OTA website. What is Truck PAC? By Dale Lemmons, Truck PAC Chairman