Weekly Updates

It's the Spending: Despite tax hikes, Oregon faces long-term funding crisis

Prior to the February Legislative Session, legislative leaders had nearly $300 million in reserve funds and $79 million in ending fund balance at their disposal to respond to an economic forecast that fell yet another $183 million from the last budget forecast. The bill to reign in exploding costs of Oregon's Business Energy Tax Credit, which will save the state $55 million, helped soften the blow of the declining revenue projection.  Despite falling revenue, legislative leaders still increased state spending by another $30 million in February, adding 200 more jobs to the state payroll. 

While the shortfall for the current biennium is manageable; it is the next round of budgets that will face serious cuts. Even with forecasted economic recovery at over 20 percent growth, including nearly 8 percent growth in non-farm employment beginning in 2010, Oregon still faces substantial shortfalls for 2011-2013.

Oregon's 2007-2009 state spending grew 20 percent from the prior budget and the 2009-2011 budget spent 9 percent over that figure. This continued growth in spending means that costs for 2011-2013 are already anticipated to exceed state revenues by $2.5 billion.

Some of the issues facing the next legislative budget include: increased obligation of General Fund dollars for debt-service for additional state borrowing; increased costs for public employee pensions, which have unfunded liability assessments as well as current rates of 8-14 percent of salary; replacement of one-time federal funds, a continued sluggish economic forecast and expectations of state employees for wage and compensation increases following salary freezes in 2009-2011; inflation for goods and services; and caseload increases in the Department of Human Services.

Since Oregon is not able to print its own money or deficit spend, legislators, having just concluded their jobless “jobs” session, are crossing their fingers for another federal bailout to get them through 2011-2013. Without federal assistance, legislators will face the same choices from 2009-2011: raise taxes or cut state budgets.

Work needs to begin now. AOI members should demand that the state get its fiscal house in order, including reigning in skyrocketing benefits and pension costs.

AOI is saddened by the passing of State Treasurer Ben Westlund.
Article by: AOI Staff - March 8, 2010
Oregonians knew Ben as someone compassionate to the plight of others and committed to helping Oregon achieve her ideals. Read More
February 2010
February 2010 "Short Session" - Sine Die
Article by: AOI Staff - February 25, 2010
The legislature spent 25 calendar days in a February special session to deal with the state’s most critical issues.  They called it a “Jobs” session. Read More
Week of February 8 - 12
Article by: AOI Staff - February 8, 2010
New Jobless Claims on the Rise, State Revenues Drop Again Read More
Retail
Article by: Betsy Earls - February 1, 2010

Product Stewardship Stateholder Group Begins Work

Read More
How Oregon AOI Retail Council Members are Responding to the Haitian Earthquakes
How Oregon AOI Retail Council Members are Responding to the Haitian Earthquakes
Article by: AOI Staff - January 20, 2010
AOI member retailers stepped up quickly last week to support relief efforts for victims of Haiti’s recent earthquake.  Read More
THE AOI ANNUAL MEETING
Article by: AOI Staff - December 14, 2009
BOARD MEMBER ELECTIONS, CHAIRMAN’S AWARDS GIVEN, GOVERNOR LEAVITT ON HEALTH REFORM Read More
AOI Annual Meeting - Michael O. Leavitt on Health Care Reform
Article by: AOI Staff - November 19, 2009
Dialogue on Health Care with Michael O. Leavitt Read More
Pacific Power
Phillips & Company