The Office of Economic Analysis has presented the quarterly revenue forecast, which is the final forecast for the fiscal biennium. It confirmed that Oregon taxpayers will receive a $1.9 billion Kicker -- the largest kicker in the history of the kicker. The money will be returned to taxpayers in the form of a tax credit on the next state tax filing.

The median taxpayer can expect to receive a credit of $420, while the average is estimated to be $850.The corporate Kicker will send an additional $850 million to K-12 schools. The state budget will also have an ending fund balance of $699 million.

The strong revenue growth seen during the 2019-21 biennium put a cap on a decade of unprecedented expansion in Oregon’s General Fund revenues. Over the past decade, General Fund revenues have almost doubled from around $12 billion per year to around $24 billion. Over the decade as a whole, kicker payments amounted to $2.6 billion, reducing cumulative General Fund resources by 2.6 percent. Last biennium, kicker payments took away half of the General Fund growth. Looking forward, the current $1.9 billion kicker reduces 2021-23 revenues as well.

Senate GOP Leader Fred Girod (R-Lyons) issued a statement that said, “It’s clear that Democrats raided $15 million from the Kicker for no good reason. Unprecedented deficit stimulus spending by the federal government and Oregonians stepping up to support businesses during the Governor’s shutdowns has given the state excess money.

“The legislature now has money to invest in COVID and wildfire response and recovery and preparing for upcoming unknown expenses in the next biennium. Most importantly, our kids need to be in school full-time to get caught up after a year of learning loss. This money can help our kids recover.”

House Republican Leader Christine Drazan took a dim view of Oregon's progress. “Despite a budget that has doubled in ten years, the state is worse off today for our students’ education, housing prices, and the safety of our communities. State agencies have fumbled distribution of unemployment checks and rent assistance to those in desperate need. The state has struggled to protect foster kids. The cost of higher education is a barrier for students and families.

“The spending spree of the last decade has not solved Oregonians’ problems. Billions in new taxes did not make things better and the state can’t continue to operate this way. The lowest hospital bed per capita, bottom of the nation graduation rates, deteriorating safety for communities, and persistent homelessness are unacceptable.

“While it is great for the state that we have an increase in tax revenues, it is not the same thing as real progress for Oregonians.”


--Staff Reports

Post Date: 2021-08-25 10:49:54

Last Update: 2021-08-25 12:38:51