SALEM, Ore. (KGW) — They say money makes the world go around and in Oregon it keeps the government running. The latest forecast from Oregon’s state economists gives revenue a big boost. It’s enough to solidify a record-shattering kicker refund for taxpayers and give lawmakers more money to work with.
The kicker fund is up to $5.5 billion to be returned to taxpayers in the 2024 tax season and there is almost $2 billion more for the budget currently being negotiated in Salem.
Experts say the unexpected rise in revenue is mostly due to a better-than-expected rebound from the pandemic as well as inflation raising incomes and tax brackets.
On Wednesday, Oregon Gov. Tina Kotek met with reporters in her offices at the capitol to discuss a spending plan for the $1.96 billion in additional state revenue.
“We have a lot of work to do but this forecast provides the resources that we need to get there. It’s an opportunity for bold leadership. And legislative leadership and I are very aligned on these top three priorities,” Kotek said.
Then the governor laid out her priorities with numbers.
Kotek said she wants $316 million to expand the state’s response to the homeless crisis, $1 billion in bonds to create and sustain affordable housing, $280 million to address what she called the “behavioral health crisis” playing out across Oregon and $120 million more for education, to fund early literacy programs for all school districts in the state.
Beyond that, Kotek said she wants $207 million to improve the wildfire protection system, $64 million for urgent water quality and infrastructure projects, $6.3 million to train more police officers and $6.7 million to address the backlog at the Oregon Board of Parole for updating the state’s sex offender registry.
The other big part of the forecast equation is good news connected to next year’s kicker rebate.
Sen. Republican Leader Tim Knopp commented on the kicker rebate and state spending, writing: “Oregon families are on track to receive the largest kicker return they have ever received. Republicans trust Oregonians with their tax refund, their children and their families. Meanwhile, Democrats want government to spend your money and parent your children.”
For two weeks, Republicans have walked off the job and shut down the state senate. Kotek again urged them to come back so they can finish their business, including the budget.
“I’m treating people with respect. Get back to work. I don’t need to chase you down. Get back to work,” Kotek said.
The deadline to get the budget done is June 30 with the new two-year cycle beginning July 1, although the governor and legislature have signed off on a continuing resolution that would keep government services running until Sept. 1, if needed.
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