Business comments on Gov. Brown’s budget

Associated Oregon Industries
Oregon’s largest business advocate

Governor Kate Brown released her proposed 2017-19 budget last week. The governor’s original proposal is a starting point for discussions and leaves many questions unanswered, but it does set parameters. Here are the most important:

Total Proposed Budget: $20.8 billion. The proposal includes a combination of tax increases and budget cuts to accommodate state expenses that are outpacing revenues.

Total Budget Shortfall: $1.7 billion. The shortfall is driven by increases in state responsibility for Medicaid costs ($1 billion), increased PERS payments ($350 million), passage of ballot measures that re-direct state spending ($350 million). Whether they use Brown’s ideas or come up with a different mix of revenues and cuts, the Legislature will have to close the gap.

New Taxes: $897 million. The governor proposes increases in tobacco and liquor taxes, as well as hospital and insurance taxes. She also recommends elimination of the “small business tax cut” passed by the 2013 Legislature and the research and development tax credit.

 

 


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