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Oregon's 2013-15 Budget: Pulling Out of the Recession, Winners and Losers

Abstract

The 2014 Oregon Legislative short session was a highly partisan affair where majority Democrats in the House and Senate pursued contentious issues to Republicans including marijuana legalization, gun control, the Columbia River Bridge Crossing, and the huge implementation problems of Oregon’s dysfunctional health plan exchange (“Cover Oregon”).  The economic picture in the state featured a modest recovery and urban job growth providing an increase in state income taxes, while other revenue sources such as cigarette taxes, estate taxes, and Oregon Lottery revenues were less than expected. Nonetheless, the legislature managed to adjust the 2013-15 biennial budget, although two issues indicate there are deeper unresolved problems remaining: ongoing public employee dissatisfaction and the impact of general fund redistribution on specific programs.

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