Governor Kotek has released her recommended budget for the 2023-2025 biennium, reflecting $32.1 billion in total spending, up from $26.8 billion in the previous biennium. Kotek’s budget is centered on addressing three key issues: Homelessness and housing, mental health and addiction services, and education. Significant investments in these areas have interestingly led Governor Kotek to hold back $765 million in funds that would otherwise be deposited into Oregon’s reserve funds. There are no new taxes included in Governor Kotek’s budget, and given the strong economy and infusions of federal dollars, the state will likely be returning over $3.5 billion to taxpayers in the form of the “kicker” tax refund. The legislature will be charged with balancing the budget in the coming months, and when faced with a projected $32.5 billion in revenue, they will have a challenging time prioritizing and negotiating with Governor Kotek and balancing numerous legislative fiscal acts.
This is just a sneak peek at recent legislative happenings. OTA members are invited to view the full weekly summary, prepared for OTA by Oxley & Associates, located in the member-only section of our website.