The Oregon Office of Economic Analysis released its March 2017 forecast on the state’s economy and public revenues.

Bottom line: employment is up, even in rural areas (although not as high as metro areas, unfortunately); personal income, corporate income, estate, and liquor taxes are healthy and tracking ahead of schedule; the manufacturing slowdown may be over; and net general fund and lottery resources have exceeded the close-of-session estimate by $219.4 million.

No personal kicker is projected, but the corporate kicker is expected to generate $36.2 million for K-12 spending in 2017-19.

This good news does not, however, bridge the gap in funds needed to balance the current-service-level 2017-19 budget requirements. What besets state financing is structural, PERS unfunded liabilities being a prime example.

And uncertainty in federal policy remains. There is still no clarity on federal policies related to taxation, infrastructure, deregulation, immigration, federal land management, or health care (the Affordable Care Act).

During the National Association of Counties Legislative Conference (Feb. 25 to Mar. 1), AOC will emphasize to the Oregon Congressional Delegation, among other things, the need to revitalize and reform federal land management. Active federal management would give a shot in the arm to rural and the state’s economy.

Contributed by: Gil Riddell | AOC Public Land & Natural Resources Policy Manager