Oregon Governor optimistic about economy, even as revenue projections slip

(The Center Square) - Oregon Governor Tina Kotek expressed optimism in response to the state's September revenue forecast, even as long-term economic problems loom.

“It is encouraging to see that our economy continues to be stable, with healthy workforce participation in key sectors," Kotek said in a statement. "The forecast urges an emphasis on core programs and holding our ground on Oregonians’ top priorities.”The report released by the Department of Administrative Services this week said the resources available in the current 2023 to 2025 biennium are $676 million (2%) higher than previously expected. About two-thirds of this is due to higher-than-expected tax collections, while one-third is due to a stronger expected revenue outlook moving forward.These projections mean that the personal kicker that will be returned to taxpayers in 2026 is an estimated $987 million, while the expected corporate kicker is $883 million. The projected personal kicker marks a substantial increase -- up from $582 million in the May projection .However, the projections were less optimistic for the 2025-2027 biennium, projecting $66 million less in available resources than the previous forecast -- in part due to the larger personal kicker being paid out. However, the projections also decreased the projected collections for corporate activity tax, the lottery, and recreational marijuana by $34 million for the upcoming biennium. The report said this largely has to do with the marijuana industry, where prices are down, resulting in less revenue for the government.In response to the May forecast earlier this year, Kotek had called for more government spending on housing, schools and behavioral health.“Oregon’s economy continues to be stable and productive,” Kotek said. “We have made meaningful progress on issues of top concern for Oregonians and worked to move our economy in the right direction. I look forward to continuing to partner with the legislature to focus on meeting people’s needs in every part of the state, from housing to safe schools to behavioral health services.”