May Oregon revenue forecast: $473 million kicker expected

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by NW Spotlight

Oregon’s quarterly revenue forecast (for May) came out today with some very good news. General fund revenues are up and it is expected that there will be a $473 million personal income tax kicker. The forecast notes “Due to actions taken by the 2011 Legislature, this potential kicker payment will take the form of a credit on 2015 tax returns rather than being issued as a check at the end of the year.”

The Oregonian reports “Even after the rebate, economists expect fast-growing revenues will send $463 million more to the state’s general fund,” and “the income increase will allow the state to pump an additional $105 million to the state school fund, bringing the total school budget to an unprecedented $7.36 billion.” The Oregonian added “The new figure still falls short of what school advocates had been pushing for. An alternative proposal backed by Republican lawmakers and teacher unions would have raised the school budget to $7.56 billion.”

Senate Republican Leader Ted Ferrioli (R-John Day) released the following statement regarding today’s May revenue forecast. Additional revenue from the forecast will trigger a kicker of $478 million, with the average Oregon family receiving $284 back from the kicker.

“A $478 million kicker is the best economic stimulus package that Oregonians could hope for,” said Senator Ferrioli. “The kicker must be returned to taxpayers at all possible dispatch so they can invest, spend or save as they choose. With nearly $1.75 billion in new revenue this budget cycle, we can fully fund education and provide for all the needs of Oregonians without new taxes.”

House Republican Leader Mike McLane (R-Powell Butte) issued the following statement regarding today’s revenue forecast:

“Today’s revenue forecast is welcome news and an optimistic sign that Oregon’s economy is continuing to grow. After many years of economic hardship and sacrifice following the Great Recession, hard-working Oregonians will receive much-needed tax relief through this $478 million individual income tax kicker.

“Despite nearly $1.75 billion in additional revenue available for this budget, legislative Democrats have somehow managed to underfund our schools while also jeopardizing our roads, bridges and public safety. The Legislature doesn’t have a revenue problem, it has a leadership and priorities problem. The recent calls from legislative Democrats to overturn or suspend the voter-approved kicker law are predictable and disappointing. Oregon taxpayers know how to spend their money better than we do.”

The Oregonian also pointed out “the kicker’s actual size won’t be known until August, after the state’s fiscal year ends June 30 and revenues are finalized.”

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Posted by at 01:26 | Posted in OR 78th Legislative Session, State Budget | 4 Comments |Email This Post Email This Post |Print This Post Print This Post
  • Jack Lord God

    Could we please stop calling these people “school advocates”? They advocate nothing for the schools. If anyone can show me where they have ever stood up and demanded budget increases tied to performance, or ever once advocated for standards testing for teachers I will retract that statement.

    These people are union advocates. Not school advocates. They view schools as a jobs program for union members, our kids are merely fodder to achieve that end.

    Witness the fact that all they ever advocate for is throwing money at the problem. By any metric we spend sufficiently. More than almost any other nation, more as compared to decades ago, Oregon? Right in the middle in spending. Yet they want more money for more pay to buy votes.

    Mark my words, in a generation or two these people will go down in history the same as segregationists of the past. It is absolutely unconscionable what these people do. I put them in the same category as ex campaign worker Rev. Fred Phelps, or George Wallace. The worst humanity has to offer.

  • Bob Clark

    Tax rates over all have been somewhat stable for a while, thanks in part to the Tea Party turning the tide in 2010 nationally and Kitzhaber having put off tax “reform” at the state level. The Nike and Intel tax certainty deals help export driven industry.

    Property taxes for some Portland folks have shot up in the last year, but this is a case by case basis as the average home had a property tax bill increase of about 2.5% last November. (Thank you Measure 5 limits.)

    Neighboring California boosted its tax rate a year or two ago, and it may have accelerated the migration of tech workers to Oregon. This upper income professional immigration seems to be partly behind a building boom in the City of Portland, which benefits from the lack of expansion of the Urban Growth Boundary and planned road congestion (making it a headache to live outside the City and commute into it). Of course, the restricted UGB has negative externalities, such as driving the price of single family home land costs much higher than otherwise (diminished housing affordability for middle class and lower middle class income folks within the City of Portland).

    Keeping tax rates stable is a significant key to spurring continued economic growth, that and the possibility of new technologies undoing the effectiveness of onerous regulations.

  • Steve

    We don’t need no stinkin’ kicker
    the poor just keep gettin’ sicker.
    We need to save it for a rainy day,
    don’t let politics get in the way.
    To send this money back to the rich,
    simply makes me sick, sick, sick.
    They don’t need it but we sure do,
    The kicker must go away or I will sue.
    I am being denied my civil rights,
    to free housing, food, and fun filled nights.
    Using my food stamp card to pay the bills,
    and rightly suing now that I have some ills.
    Sure, I choose not to do any work,
    I leave that stuff for some other jerk.
    But I will say this and say it out loud,
    Pay me what I am owed you rich, rich crowd.

    • guess who

      Isn’t sarcasm great

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