Revenue forecast released; higher education leaders call for increased investments in students

On May 15, the Oregon Office of Economic Analysis released its quarterly economic and revenue forecast. This is the forecast that lawmakers will use to make final budget decisions this session.

The level of funding in the Public University Support Fund will receive is heavily reliant on this forecast.

It’s clear that Oregon’s economy is currently on solid ground. According to the report, “Economic gains over the upcoming 2019-21 biennium will be more in-line with underlying growth in the labor force and productivity. Encouragingly, the latter has shown signs of life recently due to the tighter labor market. The recent escalation in the trade war is a wildcard. It is too soon to know how disruptive it may be to global supply chains as developments are ongoing.”

Here’s the bottom line: Projected net General Fund resources are up $883 million, which provides undeniable certainty that the Legislature has the necessary funds to invest in tuition stability, reduce student debt and strengthen the entire education continuum in Oregon. Including Lottery revenues, net resources are up $908 million.

Oregon’s unique kicker law has been triggered for both personal and corporate taxes. A record (in dollar terms) $1.4 billion personal kicker is projected for 2019-21, while corporate tax revenue of $616 million is projected to be dedicated to K-12 education spending. This means that Oregonians will receive a kicker credit on their taxes next year.

Students and families across the state are counting on the Legislature to keep the cost of a college degree affordable and expand scholarships for Pell-eligible and historically underserved Oregonians so their dreams into degrees.  Moreover, Oregon businesses need the trained workforce that our community colleges and universities provide.

You can read more about the quarterly revenue forecast and economic outlook here.