(The Center Square) – Oregon’s revenue projections remain stable, according to the state’s Revenue Forecast released by the Office of Economic Analysis this week.
The state’s gross general fund revenues are expected to reach $25.9 billion overall for the 2023-2025 biennium, an increase of $76 million over what was projected in December 2023.
“Oregon’s economy continues to stabilize. Now, we need to keep our economy moving in the right direction,” Governor Tina Kotek said in a press release. “It’s harder than ever for Oregonians to afford to live here, which is why we must take bold action on affordable housing. I look forward to working with legislators this session to make progress for Oregonians.”
While the revenue projections remain stable, there have been some changes to how the state anticipates getting that revenue.
While the state expects a dip in income tax collections, in part, due to a record kicker tax credit being issued, another tax collection will help make up for those losses.
The corporate excise tax is among those; those collections have outpaced the state’s expectations. Meanwhile, the state’s other tax sources, like estate taxes, liquor excise tax, interest earnings, insurance taxes, and tobacco taxes, will, on net, deliver 2.7% less revenue than the state previously projected. However, they only account for about 7.5% of the state’s general fund revenue, making this change negligible.
However, Republican Senate Leader Tim Knoff, R-Bend, expressed concern about the forecast — but not because of the near future.
“Flat population is a warning sign for the future of our state and is reflected by poor policy decisions that continue to hurt businesses and families. It is critically important that we leave behind status-quo policies and pursue pro-job policies that will make Oregon an attractive place to live, work, and raise a family,” Knopp said in a press release.“We can do that this Session by putting all our efforts into boosting housing production, lowering the cost of living, and addressing drug addiction, homelessness, and crime.”
