Sponsored by Oregon Business

Oregon among states in danger

| Print |  Email
High Five
Thursday, November 12, 2009

A new study by the Pew Center names Oregon as one of nine states that could follow California's budget trend.

Virtually all 50 states have faced spending cuts and government layoffs — and for many, tax increases — as a result of the nation's worst economic downturn since the Great Depression of the 1930s. But California, the nation's most populous state, has been hit the worst for a variety of reasons — and it has affected all three neighboring states.

"It is hard to imagine that what happens in California doesn't have an effect outside California," said Susan Urahn, the managing director of the Pew Center on the States, during a conference call with reporters from Washington, D.C.

Read the full story at the Statesman Journal.

{biztweet}Oregon economy{/biztweet}



Kurt Hutton
0 #1 Kurt Hutton 2009-11-12 12:02:34
Oregon faces a tough time, but not nearly as tough as California. Any property sold in California in the couple of years immediately preceding the meltdown were assessed at inflated values. And California built a budget based on those bubble assessments. Now they have to lower those assessements, they by law they can't increase more than a couple of percentage points a year. So it will take a very long time for California to regain those revenues - that's why they have to propose an equivalent of at VAT. Oregon didn't build that much in the past few years (except in Bend), so the budgeting process wasn't nearly as skewed as California's.
Quote | Report to administrator
Oregon Business magazinetitle-sponsored-links-02