Oregon state budget and finances

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Oregon budget and finances
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General information
Budget calendar:
Biennial
Fiscal year:
2015
State credit rating:
AA+ (as of 2014)
Current governor:
Kate Brown
Financial figures
Total spending (state and federal funds):
$28.3 billion (estimated for 2014)
Per capita spending:
$7,119.22 (estimated for 2014)
Total state tax collections:
$9.2 billion (2013)
Per capita tax collections:
$2,332.16 (2013)
State debt:
$88.7 billion (as of 2014)
Per capita state debt:
$22,229 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Oregon
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.

Between fiscal years 2013 and 2014, total government spending in Oregon increased by approximately $2.4 billion, from $25.7 billion in fiscal year 2013 to an estimated $28.3 billion in 2014. This represents a 10.1 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Oregon a credit rating of AA+.[1][2][3]

In 2013, the share of the Oregon state budget spent on higher education was 1.1 percent, the lowest in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Oregon in fiscal year 2014, estimated per capita spending totaled $7,119.22, a greater amount than in any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Oregon $20,175 $8,090 $28,265 3,970,239 $7,119.22
California $140,239 $81,059 $221,298 38,802,500 $5,703.19
Nevada $5,903 $2,823 $8,726 2,839,099 $3,073.51
Washington $25,171 $9,102 $34,273 7,061,530 $4,853.48
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013.
Source: National Association of State Budget Officers

State spending in Oregon can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In 2013, the share of the Oregon state budget spent on higher education was 1.1 percent, the lowest in the nation.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Oregon 14.3% 1.1% 0.7% 21.4% 3.9% 6.1% 52.6%
California 21.4% 6.6% 3.9% 25.1% 5% 6% 31.9%
Nevada 22.3% 8.5% 0.6% 22.7% 3.2% 7.4% 35.3%
Washington 23.4% 14.3% 0.9% 11.9% 2.7% 8.9% 38%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the Oregon state budget spent on higher education decreased from 9.5 percent to 1.1 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 14.3% 1.1% 0.7% 21.4% 3.9% 6.1% 52.6%
2012 14.0% 2.5% 0.7% 18.2% 3.9% 6.7% 54.1%
2011 11.0% 7.2% 0.6% 13.3% 2.8% 5.6% 59.4%
2010 11.6% 7.1% 0.4% 13.1% 3.0% 5.6% 59.2%
2009 15.7% 9.5% 0.8% 14.3% 3.3% 6.6% 49.7%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "population" and "per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "population" and "per capita revenue" have not been abbreviated).[9]

In Oregon in 2013, total state tax collections equaled $9.2 billion. Per capita tax collections totaled $2,332.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Oregon $19,893 $1,369,266 $923,123 $6,260,161 $459,744 $128,700 $9,160,887 3,928,068 $2,332.16
California $1,982,208 $48,074,580 $8,743,748 $66,809,000 $7,462,000 $112,710 $133,184,246 38,431,393 $3,465.51
Nevada $235,143 $5,468,363 $586,801 N/A N/A $736,319 $7,026,626 2,791,494 $2,517.16
Washington $1,939,883 $14,647,173 $1,359,685 N/A N/A $720,303 $18,667,044 6,973,742 $2,676.76
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Oregon tax collections by source in 2013.
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Oregon, individual income taxes accounted for 68.34 percent of total state tax collections.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Oregon 0.22% 14.95% 10.08% 68.34% 5.02% 1.40%
California 1.49% 36.10% 6.57% 50.16% 5.60% 0.08%
Nevada 3.35% 77.82% 8.35% N/A N/A 10.48%
Washington 10.39% 78.47% 7.28% N/A N/A 3.86%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Oregon budget and finance information

Fiscal years 2014 and 2015

In Oregon, no single appropriation bill encompasses the entirety of the state budget. Instead, individual appropriation bills comprise the budget. The biennial budget for fiscal years 2014 and 2015 included a $15.6 billion General Fund, $0.8 billion in lottery funds, $26.6 billion in other funds, and $16.8 billion in federal funds -- a grand total of approximately $59.8 billion for the biennium, which represented a 4.6 percent increase over the prior biennial budget.[10]

For more detailed information about the approved biennial budget, click here.

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Oregon had a state debt of approximately $86.7 billion. Its state debt per capita was $22,229. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Oregon $86,678,268,000 $22,229 8
California $777,918,403,000 $20,449 9
Nevada $52,838,629,000 $19,152 13
Washington $89,579,477,000 $12,988 32
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Oregon public pensions and Oregon public employee salaries

A 2012 report from the Pew Center on the States noted that Oregon's pension system was funded at 87 percent at the close of fiscal year 2010, above the 80 percent funding level experts recommend. Nonetheless, the report's authors wrote that Oregon should "improve how it [handles] its long-term liabilities for pensions.[12]

The funding ratio for the state's pension system decreased from 110.5 percent in fiscal year 2006 to 82 percent in fiscal year 2011, a decrease of 28.5 percentage points, or 25.8 percent. Likewise, unfunded liabilities increased from -$5.3 billion (a surplus) in fiscal year 2006 to more than $11 billion in fiscal year 2011.[13]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[14][15]

The table below lists the Standard and Poor's credit ratings for Oregon and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[16]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Oregon AA+ AA+ AA+ AA+ AA AA AA AA AA- AA- AA-
California A A A- A- A- A A+ A+ A+ A A
Nevada AA AA AA AA AA+ AA+ AA+ AA+ AA+ AA AA
Washington AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[17]

The table below notes what share of Oregon’s general revenues came from the federal government in 2012. That year, Oregon received approximately $7.8 billion in federal aid, 36.04 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[17]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Oregon $7,830,552 36.04% 13
California $54,145,284 27.16% 40
Nevada $2,798,426 25.48% 44
Washington $9,743,127 28.59% 37
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Oregon received $3.05 billion in federal stimulus funding between February 2009 and June 2013.[18]

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[19][20]

  1. Budget instruction guidelines are sent to state agencies from February through May in the year preceding the start of the new biennium.
  2. State agencies submit their budget requests to the governor in September.
  3. Agency hearings are held from September through November.
  4. The governor submits his or her proposed budget to the state legislature in December.
  5. From January through June, the legislature debates and then adopts a budget. A simple majority is required to pass a budget. The biennium begins July 1.

Oregon is one of 44 states in which the governor has line item veto authority.[20]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[20]

Agencies, offices and committees

The following standing committees in the Oregon State Legislature deal with budget and finance matters:

  1. Finance and Revenue Committee, Oregon State Senate
  2. Joint Ways and Means Committee, Oregon State Legislature

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[21] According to the report, Oregon received a grade of A- and a numerical score of 93.5, indicating that Oregon was "leading" in terms of transparency regarding state spending.[21]

Contact information

Oregon Department of Administrative Services
155 Cottage Street NE, U-10
Salem, Oregon 97301
Telephone: 503-378-3106

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
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Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: State and local government budgets, spending and finance on the ballot and List of Oregon ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Oregon.

  1. Oregon $100,000 for Building Armories, Measure 7 (June 1908)
  2. Oregon $125,000 for the University of Oregon, Measure 8 (June 1908)
  3. Oregon Appropriations for the University of Oregon, Measure 36 (1912)
  4. Oregon Appropriations for the University of Oregon, Measure 37 (1912)
  5. Oregon Ballot Measure 48, State Government Spending Limits (2006)
  6. Oregon Common School Fund, Measure 1 (May 1968)
  7. Oregon Common School Fund Investments and Revenues, Measure 2 (1988)
  8. Oregon County Debt Limitations, Measure 3 (1970)
  9. Oregon County Indebtedness for Roads, Measure 1 (June 1919)
  10. Oregon County Purchase and Lease Limitations, Measure 3 (1972)
  11. Oregon County Purchase or Leasing of Property, Measure 4 (1968)
  12. Oregon Creation of Domestic Water Fund, Measure 4 (May 1978)
  13. Oregon Credit and Indebtedness for Higher Education Buildings, Measure 2 (1950)
  14. Oregon Credit and Indebtedness for War Veterans' Fund, Measure 3 (1950)
  15. Oregon Credit and Indebtedness for War Veterans' Fund, Measure 5 (1952)
  16. Oregon Credit and Indebtedness for World War II Veterans Fund, Measure 7 (1950)
  17. Oregon Debt and Taxation Limitations for Municipal Corporations, Measure 5 (July 1933)
  18. Oregon Development of Nonnuclear Natural Energy, Measure 2 (1977)
  19. Oregon Distribution of Surplus Revenues to School Districts, Measure 7 (1942)
  20. Oregon Education Stability Fund, Measure 19 (2002)
  21. Oregon Fixing of County Debt Limit, Measure 6 (1958)
  22. Oregon Funding for Psychiatric Hospitals, Schools and Prisons, Measure 1 (June 1906)
  23. Oregon Funds for Veterans' Loans, Measure 2 (1958)
  24. Oregon Government Funds, Measure 38 (2004)
  25. Oregon Guaranteed Earnings on Tuition Trust Fund, Measure 55 (1998)
  26. Oregon Higher Education Appropriations, Measure 6 (1932)
  27. Oregon Increase Debt Limitation for Veterans’ Loans, Measure 3 (May 1977)
  28. Oregon Increases Veterans' Loan Bonding, Measure 5 (May 1974)
  29. Oregon Indebtedness for Forest Rehabilitation, Measure 2 (1962)
  30. Oregon Indebtedness for Permanent Roads, Measure 3 (1962)
  31. Oregon Indebtedness for Ports and Water Transportation, Measure 1 (June 1917)
  32. Oregon Indebtedness for Power Development, Measure 4 (1962)
  33. Oregon Indebtedness for State Reforestation, Measure 2 (1948)
  34. Oregon Investment of Higher Education Donations, Measure 4 (1970)
  35. Oregon Limit of Indebtedness for Permanent Roads, Measure 2 (May 1920)
  36. Oregon Limitations on Taxes and Indebtedness Provided by Law, Measure 10 (1932)
  37. Oregon Limits on County Road Indebtedness, Measure 23 (1912)
  38. Oregon Limits on State Appropriations from Personal Income Tax, Measure 8 (2000)
  39. Oregon Limits on State Road Indebtedness, Measure 21 (1912)
  40. Oregon Loan Eligibility of Veterans, Measure 1 (1968)
  41. Oregon Loans for Watershed Restoration, Measure 1 (May 1988)
  42. Oregon Local State-Mandated Programs Paid by State Government, Measure 30 (1996)
  43. Oregon Maintain Funding for Schools and Community Colleges, Measure 15 (1994)
  44. Oregon Modification of School Finance System, Measure 5A (May 1990)
  45. Oregon Municipal Indebtedness for Roads, Measure 28 (1910)
  46. Oregon New Building Appropriation for the University of Oregon, Measure 2 (1913)
  47. Oregon One-Year Tax Increase for Expenditures, Measure 11 (1948)
  48. Oregon Removal of Consecutive Years Requirement for Taxation, Measure 7 (1962)
  49. Oregon Requirements for County Indebtedness, Measure 1 (May 1934)
  50. Oregon Requirements for Veterans' Loans, Measure 6 (1972)
  51. Oregon Requires State to Pay for Services at Local Level, Measure 84 (2000)
  52. Oregon State Highway Funds for Mass Transit, Measure 2 (May 1974)
  53. Oregon State Indebtedness for Pension Liabilities, Measure 29 (September 2003)
  54. Oregon State Indebtedness for Roads, Irrigation and Energy, Measure 4 (1914)
  55. Oregon State Lottery Amendment, Measure 62 (2008)
  56. Oregon State Money for Public Works Projects, Measure 1 (May 1984)
  57. Oregon State Proceeds from Forfeited Property, Measure 1 (June 1989)
  58. Oregon State University Repair Fund, Measure 1 (1913)
  59. Oregon Taxpayer Refunds from General Fund, Measure 86 (2000)
  60. Oregon Tobacco Settlement Fund for Low-Income Healthcare, Measure 4 (2000)
  61. Oregon Tobacco Settlement Proceeds to Health, Housing and Transportation Programs, Measure 89 (2000)
  62. Oregon Utilization of Education Fund Principle, Measure 13 (2002)
  63. Oregon War Veterans' Fund Bonding Limits, Measure 5 (1970)
  64. Oregon War Veterans' Loans, Measure 13 (1960)
  65. Oregon Water Development Fund, Measure 1 (1977)

Recent news

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Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Oregon state budget and finances - Google News Feed

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See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. Oregon Legislative Fiscal Office, "2013-15 Legislative Adopted Budget General Fund/Lottery Funds - Summary," July 2013
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update: Oregon," June 18, 2012
  13. Oregon Public Employees Retirement System, "Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012," accessed November 14, 2013
  14. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  15. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  16. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  17. 17.0 17.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  18. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  19. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  20. 20.0 20.1 20.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  21. 21.0 21.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014