The latest Oregon economic forecast shows any fears of an upcoming recession are fading, but the risks still remain.
The Oregon Office of Economic Analysis released its quarterly economic and revenue forecast Wednesday.
During the last forecast last year, the office indicated the possibility of a mild recession later this year. Now that’s been pushed back thanks to somewhat lower inflation and continued economic growth.
The report also shows the state will have nearly $700 million more to spend in the coming years.
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In response to the revenue forecast, Gov. Tina Kotek released this statement:
“As inflation continues to slow, this revenue forecast shows that we can anticipate having more predictability and stability for the coming budget cycle. While this is encouraging news, the legislature still has some tough choices to make. We will have to keep focused and stay the course in order to make much-needed investments in Oregonians’ most urgent shared priorities: housing and homelessness, behavioral health, and education.”
Last month, Kotek released her budget recommendations which include redirecting a $765 million payment to the states reserves to tackles these three areas.
The forecast also shows taxpayers have a big refund on the way next year.
It’s predicted that near $4 billion will be sent back to residents — what’s known as the “kicker.”
The money will be returned as credit when Oregonians file their taxes next year.
The highest-ranking Republicans in the Oregon House and Senate — both from Central Oregon. want the kickers to come to residents faster.
Senate Republican Leader Tim Knopp of Bend introduced a bill to return the kicker in the form of a check instead of a credit.
House Republican Leader Vikki Breese-Iverson of Prineville added, “We must return Oregon’s ‘kicker’ back into the hands of hardworking Oregonians. While my Pendleton friends would say “let er’ buck,” I say “let er’ kick.”