SALEM, Ore. (KTVZ) — Oregon lawmakers reached a revenue deal Monday in Salem to address an approximate $880 million shortfall. The agreement was finalized on the first day of the state’s short session.<\/p>\n
The revenue gap was caused by several factors, including a reduction in spending by the federal government. Legislators moved to secure the deal to stabilize state funding amid the decrease in federal support.<\/p>\n
The revenue plan consists of three primary components designed to offset the deficit. A significant portion of the deal involves a reduction in overall department spending across the state government. Additionally, legislators agreed to tap into the state’s education rainy day fund to provide necessary capital, if needed.<\/p>\n
The deal also includes a split from the federal tax code. This specific change targets the tax treatment of stocks and high earners to generate additional revenue for the state.<\/p>\n
While the broader state revenue plan has been addressed, funding for the Oregon Department of Transportation remains uncertain. The agency’s future funding levels were not resolved as part of the primary agreement reached in Salem.<\/p>\n
BE PART OF THE CONVERSATION<\/p>\n
KTVZ is committed to providing a forum for civil and constructive conversation.<\/p>\n
Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here <\/a><\/p>\n