State revenue forecast grows
On Feb. 22, the state released an updated economic forecast, which revised revenue projections for the coming biennium upward.On Feb. 22, the state released an updated economic forecast, which revised revenue projections for the coming biennium upward. The 2017-2019 biennium gross general fund revenue projection is now more than $19.6 billion, an 8.3 percent increase over the 2015-2017 biennium. The upward adjustment to the revenue forecast decreases the projected budget deficit to $1.6 billion. The Alliance is supporting the Oregon Business Plan three-prong strategy to address the state’s projected budget deficit: 1) growing the economy; 2) slowing unsustainable growth in state spending through cost containment; and 3) new revenue tied to outcomes if cost containment is achieved. With revenues up almost $1.5 billion for the upcoming biennium, leading to an all-time high in the state’s general fund, some costs, particularly those for public employee retirement, health care and Medicaid, are projected to increase faster than revenue growth in the next fiscal biennium.