SALEM, Ore. (AP) — Oregon’s tax collections will be down nearly $200 million from projections for the two-year state budget cycle that has just begun.
The latest forecast from state economists, released to lawmakers on Friday, is unlikely to require any immediate cuts in government spending because it’s early in the budget cycle, and because lawmakers budgeted significant reserves in case income fell flat.
But the dip in projected revenue is disappointing news for public schools, which are first in line for any unbudgeted dollars if economists have a rosier outlook when the Legislature returns in February.
Economists attribute the decrease to a wave of bad economic news, including concerns about European debt and volatility on Wall Street, which could affect capital gains income and consumer spending.
