Statement by Governor Kulongoski
Governor Kulongoski on December Revenue Forecast
(Salem) – "Today's revenue forecast delivers some good short-term news. The increase will help us balance the budget for the remainder of this biennium and will avoid additional cuts to services at this time. But it does not accelerate what continues to look like a slow-growth recovery.
In fact, with this forecast, the challenge for our next budget period just got more difficult.
"The one-time additional revenue predicted for this biennium is the result of the Dept. of Revenue's ongoing efforts to true up their tax withholding tables. It is important to maintain the integrity of that system and keep our tax collections up to date.
"But, longer term, our challenges persist - and we must continue to proceed and budget with prudence, as well as focus on job creation. Last month's announcement of a major expansion by Intel and this week's improved jobs report are steps in the right direction. But we cannot be satisfied with a slow-growth recovery.
"Also, it will be a mistake to treat the additional revenue forecasted for this biennium as a windfall. We should use that revenue to help address what will now be a $3.5 billion shortfall in the next budget period. The need to "reset" our budget is now all the more compelling.
"In the weeks ahead, I will continue to work with the legislature and with Governor-elect Kitzhaber to better position the state to address the tough decisions that confront us in the next budget period and to continue to improve our economy in the years ahead."
Source: News Release - Theodore R. Kulongoski Governor
See also
Ted Ferrioli Statement on Revenue Forecast
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