According to the Revenue Forecast released at the end of May, total General Fund revenues for Oregon’s 2007-09 biennium are expected to be $13,016.7 million. This projection represents a $91.2 million increase from what economists were projecting the state would receive earlier this year, when economists projected the state’s revenue would be $161.1 million less than what lawmakers were expecting at the end of the 2007 Legislative Session. The $91.2 million increase from the previous Revenue Forecast means the state’s total fund revenues are expected to be $69 million less than what lawmakers anticipated at the end of the 2007 Legislative Session.

 Though the Revenue Forecast was generally good news for Oregon lawmakers, the state’s economists cautioned the increase in the state’s revenue projection “is the product of unique circumstances in personal income taxes, rather than an indication of stronger-than-expected economic conditions”. The economists stated they believe the United States is “nearing recessionary conditions” and expect job growth to be flat for the remainder of 2008 and predict major job losses in the wood products, computer electronics, transportation, and financial activities sectors – among others. Meanwhile, state and local governments are projected to experience increases in both 2008 and 2009.

Looking to the future, economists predict that with no new tax increases; the state’s total general fund revenues will increase 20.7 percent to $15.706 million in 2009-11. The increased revenue is expected to come, in significant part, as a result of there not being a kicker during the 2009-2011 biennium, as there was during the 2007-09 biennium when $1.094 billion in tax collections was returned to taxpayers.