Published: February 26, 2021

Last year – as the pandemic shuttered businesses and unemployment hit record highs – economists warned that declining tax revenue could throw the state budget into crisis. We feared pay freezes, benefits cuts, or hours cuts. As it turns out, those fears were unfounded. We are actually in a much better position.

This week economists released an updated revenue forecast that’s far more optimistic about the state budget. While unemployment remains high and many communities are struggling – particularly communities of color, immigrants and low-wage workers – state tax revenues are up and that means cuts are unlikely.

We’re not entirely in the clear yet. The predictions in the revenue forecast assume that Congress will pass the Biden Administration’s American Rescue Plan, which includes $1,400 stimulus checks and billions in aid for essential public services and care providers. SEIU 503 Executive Director Melissa Unger recently wrote an op-ed in The Oregonian, calling on the Legislature to rise to the challenge and put us on a path toward greater prosperity: “With bold action in these areas, lawmakers can rebuild Oregon so we are stronger and more equitable than ever before. They have the tools they need. Now they must act.”