Home arrow COSA Blogs arrow December Revenue Forecast is up again
December Revenue Forecast is up again Print E-mail
kent-hunsakerby Kent Hunsaker, Executive Director

The revenue committees of the House and Senate heard the December state revenue forecast this morning. The news is again good as both the 2005-07 forecast and 2007-09 forecast are higher than in September -- but the good news is buffered by the fact that all new revenue in the 2005-07 biennium only increases the amount of the 2% kicker.

2005-07 FORECAST

General Fund  revenues have increased by $92 million over the September forecast, resulting in larger kicker checks for Oregonians. The personal income tax kicker will now be $1.097 billion or 21.4% of 2006 liability. The median refund will be $272 and the average refund will be $636. The corporate income tax kicker will now be $275 million or 67% of the 2007 liability.

Lottery revenues have also increased by $15.6 million over the September forecast.

This good news comes at a time when Oregon remains one of the few states without a significant rainy day fund to protect government services in a time of economic downturn, which according to forecasters could be just around the corner.

2007-09 FORECAST

General Fund revenues have increased by $177.3 million over the September forecast, but this is reduced by the additional amount added to kicker refunds ($92 million), resulting in a net increase of $85.4 million in General Fund revenues.

Lottery revenues are projected to increase by $68 million over the September forecast bringing the total increase in General Fund and Lottery to $153.4 million over the September forecast.

For more details on the STATE REVENUE FORECAST, click here and it will take you to the state’s website that has all the documents released with the forecast.

GOVERNOR’S BUDGET

Governor Kulongoski will use this revenue forecast in his proposed budget for the 2007-09 biennium. His budget will be unveiled on December 1. It is expected the Governor will use his formula for the education enterprise (61% of  revenues to be allocated to the education enterprise). The governor's K-12 budget is expected to have a base of $6.0 B and some additional amount of funding to be used to further invest in schools.

The Education Coalition (COSA, OEA, OSBA, OSEA, PTA, Stand for Children, OSSA, OAESD and others) will be advocating for a K-12 budget allocation of $6.3 billion. You can details of our budget proposal inside our website.
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