Oregon's Revenue Forecast Drops Again!

In the words of Yogi Berra, "It's deja vu all over again". 

The state released it's latest look into it's crystal revenue forecast ball and once again the amount of money coming into the state or Oregon will be lower than predicted. It seems this is about all we have come to expect over the last few years as forecast after forecast has been wrong. We now find out that expected revenue is going to be short another 107 million, which added to the 198 million drop in August, adds up to 305 million short so far and we are only 1/4 of the way through a two year budget cycle.Amid much criticism during the legislative session, the legislature wisely set aside 460 million in reserves in case this happened, roughly 3.5% of the General Fund budget. Thanks to Rep Dennis Richardson for the above chart.

The Governor told state agencies today not to expect to have the 3.5% budget holdbacks restored given the latest forecast and the likelihood of further revenue losses from Oregon's slumping economy. Given all of this, I will guarantee you that there will be plenty of inappropriate, un necessary and wasteful state spending that is still occurring that needs to be exposed and cut. Be assured that Oregon Capitol Watch will be watching!