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Hello Friends,
State
economists presented the quarterly revenue forecast this morning during a joint meeting of the Senate Finance and Revenue and House
Revenue committees.
The
forecast was relatively unchanged since the last one was issued in December,
with positive economic and revenue growth expected. According to the
economists, Oregon is back to where its potential Gross Domestic Product was
prior to the start of the Great Recession ten years ago and is producing at
capacity.
Oregon’s
revenue continues to grow faster than most states, and we now have eight
percent of the state budget for the 2017-19 biennium in reserves. While that is
the most we’ve ever had, the economists cautioned that it still would not be
enough to offset the full impacts of another recession on the budget.
The
summary of the forecast states that personal income tax revenue is up $27.4
million from the estimate given at the end of the last legislative session in
July 2017. Corporate tax revenue is down $98.8 million and general fund gross
revenue is down $61.2 million from then. However, net general fund and lottery
resources are up $255.4 million from those original estimates.
No
personal kicker rebates are currently projected for the upcoming 2019-21
biennium, and no corporate tax kicker is projected to be dedicated to K-12
education for that same time period.
Projected
net general fund resources are up $69.8 million from the previous forecast in
December and projected lottery resources are up $29.3 million since then, for a
total of $99.1 million. The projected ending balance is up $145 million since
July 2017 and $69.8 million since the December forecast, and the state’s Rainy
Day fund is expected to receive $198.6 million after the current 2017-19
biennium.
The
next revenue forecast is scheduled for May. Click
here to download a presentation on the forecast and here to
watch video footage of the meeting.
Session Update
The
February legislative session is well underway and a couple of important deadlines
have already come and gone. House and Senate bills had until February 15 to be
passed out of committee in their chambers in order to continue being
considered. Work sessions for House bills in the Senate and Senate bills in the
House must be scheduled by February 22 and held by the 27th. Under the
state constitution, the session must adjourn no later than March 11.
Yours Truly,
Sen. Alan DeBoer
Senate District 3
Capitol Phone: 503-986-1703
Capitol Address: 900 Court St. NE, S-421, Salem, Oregon 97301
Email: sen.AlanDeBoer@oregonlegislature.gov
Website: http://www.oregonlegislature.gov/deboer
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