Oregon economy improving, may trigger ‘kicker’ rebates

A swelling state treasury is on the verge of triggering “kicker” rebates for Oregon taxpayers.

For the third time this year, economists on Wednesday revised their revenue forecast upward, leaving it just $27 million shy of the kicker threshold. That means even a small improvement over expected employment and wages could send at least $290 million in rebates to individual taxpayers.

Under a tax law unique to Oregon, if personal income tax collections exceed expectations during a two-year budget cycle by at least 2 percent, the extra money is kicked back to taxpayers.

Corporate income tax collections are expected to hit the 2 percent threshold, but excess corporate revenue is earmarked for schools.

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To review the full report and a slide presentation, visit the Oregon Office of Economic Analysis Website.

News releases:

Governor Kitzhaber: “Even as the Recovery Gains Steam, We Must Continue our Focus on Family-wage Jobs”

(Salem, OR) — Governor Kitzhaber released the following statement on the Office of Economic Analysis’ quarterly Oregon Economic and Revenue Forecast.

“Along with recent jobs reports showing the strength of Oregon’s manufacturing sector, this forecast provides further evidence that our economy is moving in the right direction. Even as the recovery gains steam, we must continue our focus on family-wage jobs – the types of jobs that are supported through our work with Daimler, Nike, Intel, Boise Cascade and hundreds of businesses large and small throughout the state.”

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Joint Statement From Rep. Mike McLane And Senator Ted Ferrioli On Revenue Forecast

Salem, OR – House Republican Leader Mike McLane (R-Powell Butte) and Senate Republican Leader Ted Ferrioli (R-John Day) issued the following statement in response to today’s revenue forecast:

“Today’s revenue forecast is a step in the right direction for Oregon’s economic recovery, but it is by no means a full representation of Oregon’s current economic state. After losing 3,000 jobs in June, the state added only 200 jobs back in July, leaving the unemployment rate at 6.9%, one of the higher rates in the nation. Many Oregonians across the state remain unemployed or underemployed and continue to struggle supporting their families and paying their bills.

“A truly healthy economy is one in which all Oregonians have access to stable, long-term employment. Unfortunately, this is not the case for many families in rural parts of Oregon, where entire industries and businesses have been shut down or have drastically reduced operations due to excessive government regulation. As we look toward the 2015 session, the Legislature needs to ensure that all Oregonians benefit from any proposed economic policies and legislation. This means providing tax relief for Oregon families and increasing opportunities for economic development in all regions of the state.”

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Oregon House Speaker Kotek Statement on Today’s Economic and Revenue Forecast

“Today’s forecast affirms that our economy continues to make solid progress, five years after the official end of the Great Recession. This good news is tempered with the understanding that Oregonians in every part of the state still struggle to make ends meet. The legislature has its work cut out for it to extend this renewed prosperity to everyone.”

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Statement from Senate Majority Leader Diane Rosenbaum on the September 2014 Revenue Forecast

SALEM– Senate Majority Leader Diane Rosenbaum (D-Portland) released the following statement this morning following the release of the September 2014 Revenue Forecast:

“This morning in our revenue committees we heard clear evidence that Oregon’s economy is growing. This is good news for families and small businesses across Oregon, and another indication that we are building a strong economic base throughout the state that will provide greater opportunities for Oregonians.”

“While far too many Oregonians are still struggling to get back on their feet and find work, today’s good news means that last session’s historic investments in our schools, mental health, and senior services will be protected through the beginning of the next budget cycle. Looking ahead to the 2015 Session, Senate Democrats will continue to protect these investments, furthering our economic recovery, and prioritizing the needs of Oregonians that are still fighting to get by.”