SALEM, Ore. (AP) – Oregon’s tax collections will be down nearly
$200 million from projections for the two-year state budget cycle
that has just begun.
The latest forecast from state economists, released to lawmakers
on Friday, is unlikely to require any immediate cuts in government
spending because it’s early in the budget cycle, and because
lawmakers budgeted significant reserves in case income fell flat.
But the dip in projected revenue is disappointing news for
public schools, which are first in line for any unbudgeted dollars
if economists have a rosier outlook when the Legislature returns in
February.
Economists attribute the decrease to a wave of bad economic
news, including concerns about European debt and volatility on Wall
Street, which could affect capital gains income and consumer
spending.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
AP-NY-08-26-11 1151EDT
