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If you're having trouble viewing this message, please visit my legislative web page at http://www.oregonlegislature.gov/prozanski/, click "News and Information" on the left.
Dear friends,
On February 2, Oregon's 83rd Legislative Assembly officially began its 2026 "short" session. The short session must conclude by March 8 since it is limited to 35 days under the Oregon Constitution (unless extended by a two-thirds vote of both the Senate and House).
Much of my focus this short session is on combating constitutional overreach by the current federal administration. I want to thank everyone who read and responded to my January 30 call to action. These actions bring our communities together as we stand united in our fight to protect democracy across our great nation. We will overcome this federal administration's push for authoritarian rule. (Notice how the President is calling for either ending elections or at least take control of various Democratic controlled states' elections.)
Turning to Oregon's budget, due to the passage of the President’s H.R. 1, Oregon lost more than $900 million in revenue from its recently passed 2025-27 budget. It will continue to be a difficult budgeting session. I'm working with my colleagues who serve on the Joint Ways & Means Committee to prevent — or at least minimize — negative impacts on already-strained vital programs.
In a short session, each legislator is allowed to file two personal bills. I have introduced the following two measures: Senate Joint Resolution 201 would refer to the people a proposal to modernize Oregon's kicker law, requiring that when the kicker "kicks" beyond $300 million, half the revenue above that threshold would be returned to taxpayers and the other half allocated to education (K-12, community colleges and higher education) and wildfire suppression and prevention. If the kicker is less than $300 million, the full amount would be returned to taxpayers. This approach provides much-needed funding to two of our state's most critical funding needs while maintaining the principle of Oregon's law. It would also allow the state to budget for catastrophic wildfires.
The other measure I've introduced, SJR 202, would refer to the people a constitutional requirement that an extra day be added to a legislative session for any day when a quorum isn't achieved during session. Since members are expected to work each day of the session, I believe that if legislative business can't be conducted due to a lack of quorum, Oregonians should rightly expect that their elected representatives fulfill their obligation and work the fully allotted number of session days. When voters approved annual sessions, they prescribed that long sessions (odd-numbered years) would last 160 days and that short sessions would last 35 days.
In addition to my personal bills, I am working on a high-priority bill introduced by the Senate Judiciary Committee, which I chair, that includes various public safety provisions. Among those is regulation around use and data retention of automatic license plate readers (ALPRs). I am focused on establishing statewide standards for data retention, limiting vendor data access, and exempting ALPR data from public record laws to protect privacy while maintaining the technology as a crime-fighting tool.
You can review committee agendas, watch live proceedings (and recordings) and find more information on the short session using the Legislature's Online Information System (OLIS).
Finally, thank you to everyone who attended the joint pre-session legislative town hall hosted by Speaker Julie Fahey, Senator James Manning, Representatives Lisa Fragala and Nancy Nathanson, and me on January 24. Harris Hall was packed and the crowd was passionate.
Left to right: Rep. Nathanson, Rep. Fragala, Speaker Fahey, Sen. Manning and me at our joint town hall on January 24.
Below you will find information on:
- March Revenue Forecast
- Tax Filing Season Now Open
- Springfield Utility Board Receives State Award for Safe Drinking Water
I hope this information is helpful and informative for you or someone you know. As always, feel free to share your comments, questions or concerns with me by phone, mail or e-mail.
March Revenue Forecast
The latest revenue forecast was released at a joint meeting of the Senate and House Revenue Committees by the Oregon Office of Economic Analysis (OEA). Below is a summary of the forecast. There are bright spots in Oregon’s economic outlook: growth is persevering and our population is rising. At the same time, economic turmoil as a result of the Trump administration's spite-driven policies continues, with inflation persisting and tariffs harming Oregon's export-driven economy.
Revenue Outlook
2025-27 Net General Fund revenue is $35.3 billion, up $105.6 million from the December 2025 forecast. The 2025-2027 General Fund net resources are now $37.5 billion, an increase of $252.7 million from the December 2025 forecast, while Lottery revenue for the 2025-27 biennium is $1.8 billion, a $33.8 million increase from the December 2025 forecast.
Reserve accounts as of December are: $1.08 billion (Education Stability Fund) and $1.95 billion (Rainy Day Fund). The projected ending balances for the 2025-2027 biennium are as follows: Education Stability Fund ($1.22 billion) and Rainy Day Fund ($2.18 billion). The Rainy Day Fund is not projected to receive a transfer from the General Fund beginning balance.
Kicker Outlook
There is no personal kicker projected for the 2027-29 biennium. There is no corporate kicker projected to be transferred to K-12 spending in 2027-29.
OEA Economic Outlook
The overall economic forecast is one of growth while possibility of a recession declines. Oregon's employment reflects a "low hire/low fire" dynamic; the unemployment rate is 5.2 percent, up from 5 percent in the December 2025 forecast. Population growth is expected to remain modest, averaging 0.5 percent annually through 2035. Our state’s labor market is not yet reflecting growth improvement.
OEA Corporate Activity Tax (CAT) Projections
Anticipated revenues for the current biennium (2025-27) are up $17.9 million to $3.05 billion. For 20207-29, projected revenue is now $3.43 billion, up $6.2 million from the December 2025 forecast.
Tax Filing Season Now Open
(From the Oregon Department of Revenue)
The filing season for 2025 Tax Returns officially opened January 26. Since this is a "kicker year," the Oregon Department of Revenue (DOR) expects more people to file returns sooner and have interest in their refund status. DOR is sharing the following suggestions that may help make filing and receiving refunds faster, easier, and cheaper for Oregonians.
You must file a return to get your kicker — Use the Kicker Calculator
The kicker is a refundable credit that will either increase a taxpayer's Oregon state income tax refund or decrease the amount of state taxes they owe. It is not sent to taxpayers separately as a check. Taxpayers may use the "What’s My Kicker? Calculator" to determine their credit.
Only taxpayers who filed a tax year 2024 return and file a tax year 2025 return can receive a kicker. The credit is a percentage of Oregon personal income tax liability for the 2024 tax year.
Electronic filing is faster — especially in 2026
On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund within two weeks. E-filed returns will be processed in the order they are received, with the first refunds expected to be issued February 15. For paper filed returns, refunds will not start being issued until early April.
Due to the delayed receipt of tax forms and information from the IRS in late 2025, processing of paper-filed Oregon personal income tax returns will be delayed until late March, a process that has historically begun in February.
The delay in paper return processing means the department won't be able to tell taxpayers who file paper returns, that their return has been received until paper return processing starts at the end of March. Also, information on paper-filed returns won't be available in the Where’s My Refund? Calculator until that time.
Free e-filing options
Oregon residents who normally mail their tax return to DOR should consider using Direct File Oregon, a free filing option available through Revenue Online, or other online tax preparation software, to receive their refund — and their kicker — sooner.
Free guided tax preparation is available from several companies for taxpayers who meet income requirements. Using links from the DOR's website ensures that both taxpayers' federal and state return will be filed for free. All electronic filing software options approved for filing Oregon personal income tax returns can be found on the Electronic filing page of DOR's website.
Free and low-cost tax help
Free tax preparation services are available for low- to moderate-income taxpayers through AARP and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program. Visit the Department of Revenue website to take advantage of the software and free offers and get more information .about free tax preparation services.
Springfield Utility Board Receives State Award for Safe Drinking Water
Congratulations to the City of Springfield for being awarded nearly $10 million from the state's Safe Drinking Water Revolving Loan Fund for its McKenzie River Water Supply Project! To learn more about the project, click here.
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