| Press Release |
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| August 29, 2006 |
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Governor hails revenue forecast as evidence of economic growth
Voters should decide future of corporate kicker, Governor says
Salem, Or.—The Oregon Office of Economic Analysis on Thursday released its latest revenue forecast for the current ’05-’07 biennium and the upcoming ’07-’09 biennium. The revenue forecast shows increased state revenues and indicates continued growth in Oregon’s economy.
Reacting to the forecast, Oregon Governor Ted Kulongoski said, "We’ve had tremendous economic growth in the last three years, resulting in thousands of new jobs and propelling Oregon into the top tier among states in job growth and economic expansion. Investments in transportation, industrial land, skills training, and improving Oregon’s business environment have helped fuel that economic recovery. But more work needs to be done to create higher-paying jobs to replace those jobs that were lost in the ’01-’03 recession. We need jobs that provide not only good wages but also health care for Oregon workers."
Under current law, a significant portion of the revenue increase from this economic expansion will go to the personal and corporate "kickers."
"An increase in state revenue means our economy is doing better, which is good news," the Governor said. "But we cannot ignore the fact that the corporate kicker law leaves Oregon’s bank account with a zero balance when the next economic downturn occurs. The time has come for voters to decide whether sending massive refunds out-of-state is the right policy for Oregon’s future, or if we should keep those revenues here at home in a rainy day fund to invest in Oregonians."
The Governor has worked with members of the education and business communities to develop a proposal for the 2007 Legislature that would dedicate the corporate kicker to a rainy day fund for education, health care, and public safety during economic downturns.
Media Contacts:
Lonn Hoklin: 503.378.6169
Charlie Burr: 503.378.6496
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