Oregon state budget and finances

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Oregon budget and finances

General information

Budget calendar: Biennial

Fiscal year: 2017

State credit rating: AA+ (as of 2017)

Current governor: Kate Brown

Financial figures

Total spending (state and federal funds): $37,126,000,000 (estimated 2016)

Per capita spending: $9,070 (estimated 2016)

Total state tax collections: $11,043,311,000 (2016)

Per capita tax collections: $2,698 (2016)

State debt: $13,061,182,000 (2014)

Per capita state debt: $3,245 (2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Oregon

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can differ from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis. This article, which is updated on an annual basis, was last updated in June 2017. It contains information from several sources; consequently, the currency of the information can vary from source to source.

In Oregon, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2015 and 2016, total government spending in Oregon decreased by approximately $82.0 million—from $37.2 billion in fiscal year 2015 to an estimated $37.1 billion in 2016. This represents a 0.2-percent decrease.

In Oregon in fiscal year 2015, 75.2 percent of total tax revenues came from income taxes.

Education accounted for 13.1 percent of state expenditures in fiscal year 2015, while 23.4 percent went to Medicaid.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• 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 are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Revenues

2016 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.

State tax collections by source ($ in thousands), 2016
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2016 population	Per capita collections
Oregon	$20,587	$1,532,190	$1,048,709	$8,299,887	$141,938	$11,043,311	4,093,465	$2,698
Idaho	N/A	$2,121,094	$372,883	$1,710,234	$5,303	$4,209,514	1,683,140	$2,501
Nevada	$280,055	$6,347,777	$651,067	N/A	$746,147	$8,025,046	2,940,058	$2,730
Washington	$2,062,065	$17,636,031	$1,461,200	N/A	$1,120,792	$22,280,088	7,288,000	$3,057
United States	$18,364,298	$442,909,995	$52,164,396	$392,286,910	$24,538,146	$930,263,745	322,762,018	$2,882.20
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017

The table below lists 2016 tax collections by source as percentages of total collections. About 75.2 percent of Oregon's total state tax collections came from income taxes.

State tax collections by source (as percentages), 2016
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Oregon	0.2%	13.9%	9.5%	75.2%	1.3%
Idaho	N/A	50.4%	8.9%	40.6%	0.1%
Nevada	3.5%	79.1%	8.1%	N/A	9.3%
Washington	9.3%	79.2%	6.6%	N/A	5.0%
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2014, federal aid to the states accounted for roughly 31 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.2 billion in federal aid in 2014, accounting for about 41 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2014, or just 17 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of Oregon’s general revenues came from the federal government in 2014. That year, Oregon received approximately $8.8 billion in federal aid, 36.0 percent of the state's general revenues. Taking into consideration the state's 2014 population, this came out to about $2,211 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2014
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2014 population	Aid per capita
Oregon	$8,775,637	36.0%	10	3,968,371	$2,211
Idaho	$2,516,494	33.9%	19	1,633,532	$1,541
Nevada	$2,842,077	24.8%	46	2,833,013	$1,003
Washington	$11,191,122	29.2%	33	7,054,196	$1,586
Sources: United States Census Bureau, "2014 State and Local Government Finances," accessed June 26, 2017 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2014.

Spending

Estimated 2016 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2016 (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.

The total estimated government spending in Oregon in fiscal year 2016 was $37.1 billion.

Total estimated state spending, FY 2016 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Oregon	$26,809	$10,317	$37,126	4,093,465	$9,070
Idaho	$5,039	$2,905	$7,944	1,683,140	$4,720
Nevada	$7,543	$3,984	$11,527	2,940,058	$3,921
Washington	$29,744	$11,507	$41,251	7,288,000	$5,660
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 Bureau estimates. Source: National Association of State Budget Officers, "State Expenditure Report (Fiscal 2014-2016)," accessed June 26, 2017

Spending by function

See also: State spending by function as a percent of total expenditures

State spending in Oregon can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2015 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.

In fiscal year 2015, other spending accounted for 53.1 percent of Oregon's total expenditures.

State spending by function as a percent of total expenditures, FY 2015
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
Oregon	12.0%	1.1%	0.4%	23.4%	2.5%	7.5%	53.1%
Idaho	24.7%	8.3%	0.2%	27.8%	3.9%	9.1%	26.0%
Nevada	16.1%	6.8%	0.4%	25.6%	2.5%	5.4%	43.2%
Washington	22.7%	13.7%	0.5%	19.4%	2.4%	7.7%	33.6%
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."

Spending trends

The table below details the spending trends in Oregon in previous years. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Spending by function from 2010 to 2015 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2015	12.0%	1.1%	0.4%	23.4%	2.5%	7.5%	53.1%
2014	17.9%	1.3%	0.5%	20.9%	2.9%	5.8%	50.7%
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%
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."

State debt

See also: Oregon state debt

State debt refers to any debt owned by a state government. Debt may include any financial obligations a state has that have not been paid, such as bonds issued by state governments, money borrowed by a state government that has not been repaid, or post-retirement benefits promised to state employees. According to the U.S. Census Bureau, Oregon had a debt of $13,061,182,000 in fiscal year 2015. The state debt per capita was $3,245. This ranked Oregon 26th among the states in debt and 24th in per capita debt. The total state debt owned by the 50 states was $1.15 trillion with a per capita debt of $3,582.

Economic indicators

See also: Economic indicators by state

Oregon's GDP increased by 3.6 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

In 2013, most residents in Oregon earned incomes at least 400 percent of the federal poverty level, with a median annual household income of $54,066. In September 2014, Oregon's unemployment rate was 7.1, which was 1.2 percentage points above the national rate.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Oregon	15%	19%	31%	35%	$54,066	7.6%	7.1%	$219,590
California	15%	21%	28%	36%	$57,161	8.8%	7.3%	$2,202,678
Idaho	13%	25%	34%	29%	$49,952	6%	4.5%	$62,247
Washington	12%	19%	28%	41%	$60,520	6.9%	5.7%	$408,049
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Oregon budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Oregon CAFR Oregon budget agency

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

1. Budget instructions are sent to state agencies between February and May.
2. State agencies submit their budget requests to the governor in September.
3. Agency hearings are held between September and November.
4. The governor submits his or her proposed budget to the state legislature by December 1. For new governors, the deadline is the first day the legislature convenes.
5. The legislature adopts a budget between February and June. 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.

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature is required to pass a balanced budget.

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

Public Interest Research Group 2016 report

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 2016. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Oregon received a grade of A+ and a numerical score of 100, indicating that Oregon was "Leading" in terms of transparency regarding state spending.

Budget and finance ballot measures

Voting on state and local government budgets, spending, and finance
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
Local City budgets County budgets Spending limits School budgets

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 Measure 102, Removes Restriction that Affordable Housing Projects Funded by Municipal Bonds be Government Owned (2018)
45. Oregon Measure 104, Definition of Raising Revenue for Three-Fifths Vote Requirement Initiative (2018)
46. Oregon Modification of School Finance System, Measure 5A (May 1990)
47. Oregon Municipal Indebtedness for Roads, Measure 28 (1910)
48. Oregon New Building Appropriation for the University of Oregon, Measure 2 (1913)
49. Oregon One-Year Tax Increase for Expenditures, Measure 11 (1948)
50. Oregon Public University Diversification of Investments, Measure 95 (2016)
51. Oregon Removal of Consecutive Years Requirement for Taxation, Measure 7 (1962)
52. Oregon Requirements for County Indebtedness, Measure 1 (May 1934)
53. Oregon Requirements for Veterans' Loans, Measure 6 (1972)
54. Oregon Requires State to Pay for Services at Local Level, Measure 84 (2000)
55. Oregon State Highway Funds for Mass Transit, Measure 2 (May 1974)
56. Oregon State Indebtedness for Pension Liabilities, Measure 29 (September 2003)
57. Oregon State Indebtedness for Roads, Irrigation and Energy, Measure 4 (1914)
58. Oregon State Lottery Amendment, Measure 62 (2008)
59. Oregon State Money for Public Works Projects, Measure 1 (May 1984)
60. Oregon State Proceeds from Forfeited Property, Measure 1 (June 1989)
61. Oregon State University Repair Fund, Measure 1 (1913)
62. Oregon Taxpayer Refunds from General Fund, Measure 86 (2000)
63. Oregon Tobacco Settlement Fund for Low-Income Healthcare, Measure 4 (2000)
64. Oregon Tobacco Settlement Proceeds to Health, Housing and Transportation Programs, Measure 89 (2000)
65. Oregon Utilization of Education Fund Principle, Measure 13 (2002)
66. Oregon War Veterans' Fund Bonding Limits, Measure 5 (1970)
67. Oregon War Veterans' Loans, Measure 13 (1960)
68. Oregon Water Development Fund, Measure 1 (1977)

Budget and finance legislation

The following is a list of recent budget and finance bills that have been introduced in or passed by the Oregon state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Recent news

The link below is to the most recent stories in a Google news search for the terms Oregon budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Oregon state budget and finances - Google News

See also

• Historical Oregon budget and finance information
• Tax policy in Oregon
• Oregon government sector lobbying
• Oregon public pensions
• Governor of Oregon
• Oregon State Senate
• Oregon House of Representatives
• Oregon State Legislature