SALEM, Ore. (AP) — Immediate state budget cuts may not be needed after economists told Oregon lawmakers their projections for state revenue are virtually flat — not greatly improved but not getting much worse.
The state revenue forecast delivered to lawmakers Tuesday morning shows projections for the current two-year budget cycle down just $1 million — a tiny fraction of the $14.9 billion total budget.
That’s the good news. But for the next budget cycle beginning in June, economists are projecting that Oregon will take in $109 million less than they predicted three months ago.
Senior economist Mark McMullen from the state Office of Economic Analysis says the widening gap comes in part from lower-than-expected tax collection from businesses.