COVID-19 affects Oregon's state budget

By Jazmine Weaver

(MAY 28, 2020) COVID-19 has affected everyone. All across the United States many people have lost their jobs. In Oregon, the unemployment rate grew from 3.5% in March to 14.2% in April. The state government, like the federal government, gave people more time to pay their taxes.

Oregon’s state budget is based on corporation and personal taxes. When individuals and businesses pay their taxes, it all comes together to make most of the state budget. However, Oregon’s budget is short $3 billion because people are out of work or unable to pay their taxes. Other sources of revenue, such as lottery sales, have also declined due to the COVID-19 pandemic.

Oregon did get some help from the federal government. There is also about $1.6 billion in a Rainy Day fund that will help. Unfortunately it will not be enough to cover the loss of taxes. Economists, people who study how money is spent and saved, say that the state will not completely recover until at least 2023. There will not be any recovery until the state can open back up without a big spike in COVID-19 cases.

Governor Kate Brown said that she is working on a plan to reduce spending.