Kicker: Oregon families’ tax credit to average $284
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State economists predict Oregon families will get a bigger-than-expected boost for their tax returns next year.
The economists told lawmakers Thursday the latest strong revenue forecast makes “kicker” rebates all but certain. The economists raised their estimate of the total size of the refund to more than $470 million.
They said this means the average Oregon family would get $284 as an income tax credit, based on current estimates
Oregon’s unique “kicker” is triggered when tax collections exceed expectations by at least 2 percent. The additional revenue is kicked back to Oregonians. The last time it happened was 2007.
Taxpayers used to get checks in the mail right before the holiday shopping season. But a new law means they’ll get a tax credit when they file their returns next year.
The quarterly revenue forecast released Thursday includes $123 million more in rebates than was predicted in February.
The exact amount of kickers won’t be fixed until after the two-year budget cycle ends in July.
Gov. Kate Brown said in a statement that strong economic growth means an additional $100 million for schools.
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Here’s reactions from Oregon lawmakers and others:
Statement by House Speaker Tina Kotek on May Economic and Revenue Forecast
“Today’s forecast puts us in a solid place to pass bipartisan budgets that will expand prosperity in all corners of our state while building toward a secure future.
“Because the Legislature guaranteed that additional revenue from this forecast would go directly to our schools, Oregon’s K-12 schools will see a boost of over $100 million for the next two years, on top of the $7.255 billion already approved. We will further prioritize education by strengthening support for early childhood education and expanding financial assistance for college students.
“This strong forecast will allow us to fill the current budget holes in public safety, human services, and natural resources in order to meet the needs of communities throughout Oregon – all while maintaining responsible reserves to protect our state from future downturns.”
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Statement From House Republican Leader Mike McLane On Revenue Forecast
Salem, OR – House Republican Leader Mike McLane (R-Powell Butte) issued the following statement regarding today’s revenue forecast:
“Today’s revenue forecast is welcome news and an optimistic sign that Oregon’s economy is continuing to grow. After many years of economic hardship and sacrifice following the Great Recession, hard-working Oregonians will receive much-needed tax relief through this $478 million individual income tax kicker.
“Despite nearly $1.75 billion in additional revenue available for this budget, legislative Democrats have somehow managed to underfund our schools while also jeopardizing our roads, bridges and public safety. The Legislature doesn’t have a revenue problem, it has a leadership and priorities problem. The recent calls from legislative Democrats to overturn or suspend the voter-approved kicker law are predictable and disappointing. Oregon taxpayers know how to spend their money better than we do.”
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REPRESENTATIVE KNUTE BUEHLER COMMENTS ON ECONOMIC FORECAST AND TAX REFUNDS
Salem, OR – The Oregon revenue forecast was released today and showed that there will be a $473 million individual income tax kicker. Representative Knute Buehler released the following statement in response:
“Hard working Oregonians are driving the economic growth that has created $105 million more to fund K-12 schools and will generate tax relief for millions of Oregon families. For certain, there will be calls in Salem to keep and spend these taxpayer refunds. That would be a mistake. These tax refunds are the people’s money not the politicians’, and they should be returned for Oregonians to save, invest or spend as they please.
“Revenue has increased by 9% which means nearly $1.75 billion in additional funding. Given this economic growth, Oregon should be able to adequately fund education and start addressing the unacceptable dropout rates – which are the worst in the nation. Oregon families understand how to live within a budget and prioritize their spending – so should the state. We need to work smarter, not just bigger.”
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University Presidents Urge Restoration of Higher Education Funding
Today in response to the May revenue forecast, the presidents of Oregon’s seven public universities issued the following statement, urging Governor Brown and lawmakers to restore funding for post-secondary education to pre-recession levels just as they did for K-12 during the 2013 legislative session:
“With today’s revenue projections, Governor Brown and legislative leaders have the information they need to begin finalizing the budget for the 2015-17 biennium. We urge our leaders to make post-secondary education a priority with the increased revenue now available.
“Since 2007, state funding for Oregon’s universities has been cut by more than 38 percent. While other sectors of the budget have had funding restored, higher education has not. The result has been higher tuition, reduced student services, and a more expensive and uncertain path to a post-secondary degree. This trend cannot continue.
“Never before has the public been so supportive of making higher education a priority for public dollars. It’s time to restore funding to higher education. It’s time to return to investment levels that will help control tuition, expand access, enhance graduation rates, and position Oregonians for a lifetime of opportunity and practical skills that will support a strong middle class.
“Students in every rural town and urban city need public higher education. Universities and community colleges provide students with the skills and training needed to get a job. Investing now in higher education will help ensure Oregon’s recovering economy continues to grow.
“Oregon lawmakers must restore funding for higher education to pre-recession levels, just as they did for K-12. Given the importance of higher education to Oregon’s economic future, we simply cannot afford to continue at investment levels of the past – and with this revenue forecast the opportunity is now.”
Jay Kenton, interim President Eastern Oregon University
Chris Maples, President Oregon Institute of Technology
Edward Ray, President Oregon State University Wim Wiewel, President Portland State University Roy Saigo, President Southern Oregon University Scott Coltrane, interim President University of Oregon Mark Weiss, interim President Western Oregon University