SALEM, Ore. (AP) — Oregon will have plenty to spend on public services as corporate tax collections are increasing in a strong post-pandemic economy, state economists said Wednesday.
Total General Fund resources in 2023-25 increased by $437 million, state economists said. Democratic Gov. Tina Kotek welcomed the news contained in the quarterly revenue forecast presented Wednesday by the Office of Economic Analysis.
“We must leverage the opportunity presented by another positive forecast to invest in housing production and other urgent needs to support Oregon families and the state’s long-term economic growth,” Kotek said.
Rep. Vikki Breese-Iverson, leader of the minority Republicans in the Oregon House of Representatives, urged that funds be dedicated to combatting crime and the flood of fentanyl into the state. House Speaker Dan Rayfield, a Democrat, said the healthy revenue forecast means Oregon can continue to address homelessness, access to mental health and health care, community safety and education.
State economists said that as inflation slows, income gains are outpacing price increases, leading to rising living standards.
“Today’s forecast means we can sustain critical funding for services that directly impact the lives of Oregon families,” Democratic Senate President Rob Wagner said.
Senate Republican Leader Tim Knopp urged bold investments in infrastructure like roads, sewer systems, and water.
An increase in revenues at the end of the 2021-23 biennium will result in a larger personal income “kicker” than previously estimated, for a total of $5.6 billion, state economists said. The typical Oregonian is expected to receive a $980 credit when they file their state income taxes next year under Oregon’s unique “kicker” law.
That amount would break the previous record of $1.9 billion.
“This one isn’t just bigger. It’s multiple or a few times bigger,” Democratic Rep. Nancy Nathanson, chair of the House Revenue Committee, said in a Wednesday hearing, according to Oregon Public Broadcasting.
Whenever actual revenues from personal income taxes come in at least 2% higher than the forecast amount, taxpayers get the excess back in the form of a tax credit.