Economists predict that less federal spending will lead to a 7% decrease for 2011-2013 in Oregon’s “all funds” budget.
Economists predict that less federal spending will lead to a 7% decrease for 2011-2013 in Oregon’s “all funds” budget.
The all funds budget is the mix of taxes, fees, pension dollars and federal aid in Oregon.
“We had a big buildup in 2009-11 because of the stimulus,” said Ken Rocco, the Legislature’s chief fiscal officer. Not only that, but high unemployment and record food stamp claims also helped jack up the amount of federal money flowing into the state to a record two-year total of $17.7 billion. That’s twice the amount that came in from Uncle Sam in the 2005-07 budget cycle.
Rocco and his colleagues are now estimating that figure will drop by more than $3 billion. Combined with slow growth in income tax revenue and a decline in the amount of money that the state will collect in fees, and the total state budget is expected to drop from its 2011-13 high of $62.2 billion down to $57.8 billion.
The last time the state witnessed a decrease in the all-funds budget was after the deep recession of the early 1980s, when the timber industry fell on hard times.
Read more at OregonLive.com.
{biztweet}oregon all fund{/biztweet}
