We repeatedly hear the term “revenue” with regards to the state budget, but what exactly does that mean and why is the current $1.2 Billion shortfall in “tax revenue” important?
Tax Revenue is this: your tax dollars that go to the government for public services.
The budget deficit is the result of government spending too much, not Oregonians paying too little.
In fact, “budget deficit” is actually a misnomer. The “deficit” exists because the state plans on spending more than it anticipates taking in as opposed to a negative balance of funds in an account.
In Oregon, the revenue forecast for the current 2009‐11 biennium decreased $49 million. This is the tenth reduction since we ended the last legislative session in June 2009.
Overall, Oregon has not taken in $1.2 billion of the “revenue” it expected to receive during the past two years.
Given Oregon’s tax rate structure, this means that Oregonians’ personal income dropped by more than $10 billion from what it was expected to be at the start of the biennium.
With personal income dropping, Oregonians have had to cut household expenses and rein in their spending in order to accommodate for the loss of income.
Yet, our state budget has grown by 50% over the last four years.
Considering our current economic climate, where is the shared sacrifice between the public and private sectors?