Dim and Dimmer

May 21, 2001 Download PDF

Forecasts of State Revenues and Federal Discretionary Spending in Oregon

Executive Summary

The future of state General Fund revenues and federal discretionary spending in Oregon is not bright. The May Oregon Economic and Revenue Forecast projects state General Fund and lottery revenues for the next biennium will fall some $600 million below current spending needs, and over the next two biennia the resources available will be less than the Legislature anticipated at the beginning of the legislative session. Adding insult to injury, a new analysis of President Bush's proposed budget by the Economic Policy Institute shows that federal discretionary spending in grants-in-aid to the State and to local governments in Oregon will fall short of current needs both next year and 10 years from now, when the Bush-proposed tax cuts are fully implemented.

The forecasts show:

Needed (and Possible) Corrections: