LOC News
State Economists Release Latest Forecast
This week, state economists released Oregon’s latest economic and revenue forecast. The quarterly forecast provides state policymakers with an understanding of the health of Oregon’s economy and the available revenue for state government.
This quarter shows a sluggish economy, with oil and energy prices spiking and a relatively high unemployment rate when compared to other states. The State Office of Economic Analysis continues to estimate a low chance of a recession in the next six months, but the likelihood is up marginally from the last forecast. As reported in this article by The Oregonian, the new forecast reveals stark divide: Wages are down, but profits for corporations, the wealthy are surging.
On the revenue front, most revenue sources are mildly trending upward with a less than 1% increase ($345 million) for general fund revenues. Revenue outside of the general fund is mixed with lottery and cooperate activity tax revenues up. However, marijuana revenue forecast is down by roughly $10 million. A portion of these revenues are shared with cities, and the LOC will provide more information through the weekly LOC Bulletin as we understand the impact of this news.
This information was presented to legislators this week. To review the full forecast and watch the presentation here.
Contact: Nicole Stingh, Legislative Director – nstingh@orcities.org
Last Updated 5/22/25