Oregon Revenue Chair’s agree to proposed Revenue Deal, ODOT Funding Still Uncertain
Spencer Sacks
(Update: Added quotes from Senator Anthony Broadman and Representative Emerson Levy. Correction, proposed deal was made by leaders of the Revenue committees in both the house and Senate)
SALEM, Ore. (KTVZ) — Oregon Revenue Chair’s reached a revenue deal Monday in Salem to address an approximate $880 million shortfall. The agreement was announced on the first day of the state’s short session.
The revenue gap was caused by several factors, including a reduction in spending by the federal government. Legislators moved to secure the deal to stabilize state funding amid the decrease in federal support.
The revenue plan consists of three primary components designed to offset the deficit. A significant portion of the deal involves a reduction in overall department spending across the state government. Additionally, deal makers agreed to tap into the state’s education rainy day fund to provide necessary capital, if needed.
The deal also includes a split from the federal tax code. This specific change targets the tax treatment of stocks and high earners to generate additional revenue for the state.
Senator Anthony Broadman who chairs the Senate Revenue Comittee told KTVZ, “We’re using this as an opportunity to invest in affordability, to put more money in working Oregonians pockets, to lower taxes for businesses that are creating jobs and really ensure that we’re able to provide that health care, education, public safety that Oregonians deserve and require.”
“I think it was really important that we made a risk adverse decision. And that’s why you see, a little bit from three buckets and why you don’t see all just cuts or all just revenue. It would not make sense for the longevity of the state budget,” Representative Emerson Levy told KTVZ News. “We are responsible to make sure that we are solvent as a state. And I think we did the best we could to balance all the many competing interests in our state.”
Now, this doesn’t mean a budget deal has been reached. However, this is potentially just one leg of a multi legged chair that has been solved. Now the budget is projected to be released later this month, but this week we could see the budget projections rolled out, which will tell lawmakers whether or not they have to tap in to the education fund.
While the broader state revenue plan has been addressed, funding for the Oregon Department of Transportation remains uncertain. The agency’s future funding levels were not resolved as part of the primary agreement reached in Salem.