Photo: Ford, Brad
The State of Oregon's economic outlook has gone from good to bad. When the Legislative session ended earlier this year, the state had a $473 million budget surplus, but now there's a deficit of $373 million. The state's economist says it's due to changes in the economy, cuts from President Trump's Big Beautiful Bill and adjustments to the kicker credit.
Governor Tina Kotek released a statement:
“More Oregon families are experiencing tougher financial situations — not by chance, but because of the economic uncertainty coming straight from the Trump Administration. From reckless choices on trade to broken promises on getting control of prices, working families are falling further behind. With President Trump and Congressional Republicans cutting fifteen billion dollars from essential services over the next six years, and being responsible for reducing state funding right now by an additional $888 million, the damage is here.
“While D.C. plays politics, I will stay focused on doing what we need to do to stay ahead. I will work to make sure all families have a place to sleep at night, all young people going back to school can realize their promise, and basic services Oregonians rely on are maintained. All of us need to be nimble and look for ways to make our state dollars go further when delivering for Oregonians. I believe in the resilience of our state and our ability to work together to take care of each other.”
House Republican Leader Christine Drazan:
“Don’t believe anyone who tells you this forecast is someone else’s fault. You can’t trust people who aren’t honest with you or themselves. For too long Oregon’s budgets have been driven by social experiments and political agendas not fiscal responsibility and economic strategy. When our states’ population is in decline, when unemployment levels rise while other states grow their economy, when our tax rates are among the highest in the nation, when our local public schools shed students, and more businesses close their doors, it points to failed leadership and bad choices at the state level.
Oregonians see their neighbors losing their jobs because companies shut down or moved out. They feel the weight of how expensive it is to live here. They are scrolling for home prices in other states, thinking seriously for the first time about what it might be like to pack up and move away.
The risk that Oregon’s majority party will miss the lessons in this forecast and revert to reactionary policies driven by their hatred of the federal administration is very real. Using this forecast as an excuse to continue to deny Oregonians the opportunity to grow their businesses or to prevent families from keeping more of what they earn would be a mistake. Instead, they should set aside partisanship for progress and listen to people who want to stay and fight for a better path forward.”