Oregonians could see record $1.9 billion ‘kicker’ tax refund next year
Governor, lawmakers, others react to news
SALEM, Ore. (AP) — Oregon could send out a massive $1.9 billion “kicker” tax refund next year, due to surging income tax receipts.
Oregon Public Broadcasting reports if the projections hold, the refund — which takes the form of credits on 2021 tax returns filed next year — would be Oregon’s largest-ever kicker. The state’s unique kicker tax law sends money back to taxpayers whenever personal income tax revenues come in at least 2% above initial projections during a two-year budget cycle.
The new projection was delivered to a joint meeting of state senators and representatives Wednesday morning. In May, economic forecasters had anticipated the state would see a $1.4 billion kicker.
Under the anticipated kicker, the median income taxpayer would receive a $420 credit on this year’s state taxes. The average taxpayer, with an adjusted gross income of roughly $67,500, would receive $850. Since the kicker is awarded as a percentage of income taxes paid, the top 20% of earners stand to receive far more: between $1,600 and $16,880.
The state last hit a record kicker amount in 2019, the last time the refund was triggered, when more than $1.5 billion flowed back to taxpayers.
Governor Kate Brown Issues Statement on Revenue Forecast
(Salem, OR) — Governor Kate Brown issued the following statement today on the state’s revenue forecast:
“Today’s revenue forecast is another sign that Oregon’s economy is healthy, strong, and on the path for a rapid recovery. This is welcome news at a time that Oregonians continue to face immense challenges: from wildfire recovery to extreme drought to our worst surge of cases and hospitalizations during the COVID-19 pandemic.
“And we must never lose sight of the fact that, because of historic, structural inequities, the impacts of the pandemic and the natural disasters of the past year and a half have disproportionately impacted Black, Indigenous, Latino, Latina, Latinx, Asian, Pacific Islander, and Tribal communities the hardest.
“My priority will be to continue to address the challenges facing Oregon families, including the disparities resulting from systemic racism, with a particular focus on ensuring our hospitals and health care workers have the resources they need to continue to provide patients with life-saving care.”
House Speaker Tina Kotek releases statement on quarterly economic and revenue forecast
SALEM – Oregon House Speaker Tina Kotek issued the following statement today after the release of the latest quarterly state economic and revenue forecast:
“The stable outlook of today’s revenue forecast is welcome news coming off a legislative session where we invested strongly in programs to help Oregonians impacted by the pandemic, wildfires, the housing crisis and other challenges. We need to maintain this momentum to build a better future for everyone.
“Today is also a reminder that our economic recovery is linked to our ability to control the virus. Our hospital systems are on the verge of collapse in this moment. With 1,000 Oregonians hospitalized due to COVID-19, there is still too much suffering across the state. We will maintain our economic recovery if we all commit to protecting each other from the Delta variant.”
Senate President’s Response to September Revenue Forecast
Senate President Peter Courtney issued the following statement after the release of the September 2021 quarterly economic and revenue forecast:
“Oregon's economy remains strong. We have more money to invest in pandemic relief, childcare and housing. We're still in a crisis. The Legislature will help out Oregonians who've hurt the most. I look forward to doing this as fast as we can.”
Senate GOP Leader’s Statement on the Revenue Forecast
SALEM, Ore. – Today, the Office of Economic Analysis presented the quarterly revenue forecast. It confirmed that Oregon taxpayers will receive a $1.9 billion Kicker. The corporate Kicker will send an additional $850 million to K-12 schools. The state budget will also have an ending fund balance of $699 million.
“It’s clear that Democrats raided $15 million from the Kicker for no good reason. Unprecedented deficit stimulus spending by the federal government and Oregonians stepping up to support businesses during the Governor’s shutdowns has given the state excess money.
“The legislature now has money to invest in COVID and wildfire response and recovery and preparing for upcoming unknown expenses in the next biennium. Most importantly, our kids need to be in school full-time to get caught up after a year of learning loss. This money can help our kids recover.”
House Majority Leader Smith Warner Statement on Latest Revenue Forecast
SALEM, OR—Today, Oregon’s state economists released the quarterly Revenue and Economic forecast, outlining significant economic gains. In response, House Majority Leader Barbara Smith Warner (D-Portland) issued the following statement:
“Today’s revenue forecast shows that between the investments we’ve made as a Legislature and support from the Biden-Harris administration’s American Rescue Plan Act, Oregon is on the right path, with the means to ensure an equitable recovery. This is a promising forecast.
“In the face of another wave of the pandemic, we must continue to prioritize bold, structural changes that benefit all Oregonians, including working families, low-income communities, and our small businesses. We also must recognize how structural racism continues to harm Black, Indigenous, People of Color (BIPOC) communities, impeding opportunities to build generational wealth. Economic opportunity should and can be available to all.
“I look forward to continuing the work we have started and building a future where everyone has a chance to truly prosper.”
Public Health Critical as Oregon’s Recovery Continues
Senate Majority Leader Rob Wagner Statement on the September Revenue Forecast
SALEM – This morning, the Senate Committee on Finance and Revenue and the House Committee on Revenue met jointly to hear the September Economic and Revenue Forecast. Senate Majority Leader Rob Wagner (D-Lake Oswego) released the following statement in response:
“The September forecast is good news. Democrats delivered over the 2021 Legislative Session to fund critical services to support Oregonians now and going forward. We also ensured American Rescue Plan dollars were invested directly in our communities to meet their own unique needs.
“Our public schools and resources will continue to receive necessary funds that will improve the wellbeing of individuals and families and improve opportunities for all who call Oregon home. Additionally, we must remain steadfast in our dedication to equity on our road to recovery.
“To continue Oregon's recovery and boost our economy, we need to follow public health recommendations, which most importantly will save lives. As the Delta variant surges, each of us must do our part by wearing face coverings and getting vaccinated. This is the best way we each can look out for our loved ones, care for our neighbors and support frontline workers who ensure Oregon continues moving forward.”
Oregon state budget continues to grow without solving problems
SALEM, Ore. – House Republican Leader Christine Drazan (R-Canby) released the following statement in response to the state revenue forecast announced today which included news of a $1.9 billion kicker for Oregon taxpayers next year:
“Despite a budget that has doubled in ten years, the state is worse off today for our students’ education, housing prices, and the safety of our communities. State agencies have fumbled distribution of unemployment checks and rent assistance to those in desperate need. The state has struggled to protect foster kids. The cost of higher education is a barrier for students and families.
The spending spree of the last decade has not solved Oregonians’ problems. Billions in new taxes did not make things better and the state can’t continue to operate this way. The lowest hospital bed per capita, bottom of the nation graduation rates, deteriorating safety for communities, and persistent homelessness are unacceptable.
While it is great for the state that we have an increase in tax revenues, it is not the same thing as real progress for Oregonians.”
Oregon Manufactures and Commerce Responds to Quarterly Economic and Revenue Forecast
Salem, Ore. - Oregon Manufacturers and Commerce issued the following statement upon reviewing the Oregon Office of Economic Analysis’ quarterly economic and revenue forecast:
“While Oregon’s economy and the state budget continue to benefit from federal spending and relief programs, policymakers must remember that key industries remain very fragile in the wake of the pandemic. Manufacturers are continuing to struggle to find enough workers to fill shifts and to respond to an unpredictable and disproportionately costly regulatory environment. Make no mistake, these challenges represent a tremendous threat to the prospects of a full recovery for the industry. We urge state leaders to partner with employers in the months ahead to set the foundation for a stable and thriving economy over the next decade.”
Statement by Oregon Recovers on revenue forecast related to addiction crisis
Portland - In response to today’s revenue forecast, Mike Marshall, Executive Director of Oregon Recovers made the following statement:
“Today's positive revenue forecast makes clear that the Oregon Legislature and Governor Kate Brown have the ability to immediately fund the state plan to end Oregon’s addiction crisis. In February 2020 the Alcohol and Drug Policy Commission delivered a comprehensive plan to end the addiction crisis to the legislature and the Governor. It was promptly ignored.
To date, and despite nearly 4000 additional deaths due to substance use disorder during that time, even outpacing COVID deaths, the plan remains unfunded. This lack of action has led to a dramatic increase in alcohol-related emergency room visits and drug overdoses. Additionally, the pandemic has exacerbated a workforce crisis within the SUD treatment and recovery support organizations that threatens the collapse of the existing addiction recovery continuum of care.
Covid is not the only killer threatening Oregon. We call on the legislature and Governor to immediately address Oregon’s other health crisis and fund the implementation of the Alcohol & Drug Policy Commission strategic plan.”
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The mission of Oregon Recovers is to mobilize the recovery community to transform Oregon's fractured and incomplete addiction recovery system into a recovery based, continuum of care which recognizes addiction as a chronic disease requiring a lifetime of support.
