XPost: or.politics, talk.politics.guns, sac.politics
XPost: alt.politics.economics

Oregon has a $370 million hole in its budget, state economists told
lawmakers Wednesday.

As previously reported by The Oregonian, President Donald Trump’s
signature tax- and budget-cutting legislation is likely to cut nearly $1 billion from Oregon’s revenue collections during the current 2025-27
budget cycle.

The most recent estimate, presented by state economist Carl Riccadonna to
the Senate and House revenue committees Wednesday morning, is that Oregon
will lose out on $888 million.

Lawmakers expected some federal turmoil when they set the state’s $37
billion budget in June. They left $473 million of wiggle room in the
“ending fund balance” to help cushion against economic changes.

But even with that set aside, federal H.R. 1 is still predicted to leave
Oregon nearly $400 million in the hole.

“Where, as of the end of the session, we thought that the ending balance
was positive and a fairly decent cushion, (of) almost $500 million – it’s
now in the red,” said senior economist Michael Kennedy.

Chris Allanach, the state’s Legislative Revenue Officer, said in July that Oregon lawmakers have three possible responses to the projected shortfall. Lawmakers could cut budgets, find a way to bring in more revenue or tap
reserve funds.

Oregon is particularly vulnerable to federal tax cuts because its income
tax system is closely linked to the federal one. The state uses federal
taxable income, which accounts for federal exemptions and deductions, to determine the starting point for the amount that businesses or individuals
owe.

https://www.oregonlive.com/politics/2025/08/oregons-budget-has-a-370m- problem-economists-say-its-now-in-the-red.html

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