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SALEM, Ore. – Oregon economists say the recent turmoil on Wall Street is having an effect on the state’s finances. But it’s a small one so far. An economic forecast issued Friday shows a projected 200 million dollar drop in revenue.
Economists say European debt, a topsy-turvy Dow and political divisiveness inside the beltway are a recipe for economic heartburn. Interim state economist Mark McMullen told lawmakers so far, Oregon is dodging the worst of the current financial troubles. Still-
"Make no mistake. If the U.S. and the nationwide economy goes into recession, it'll drag Oregon down with it," McMullen said.
McMullen is projecting a drop in state tax and lottery revenue of about 200 million dollars since the last prediction. That’s not good news for state agencies and public schools, who were hoping for an economic uptick before lawmakers come back to Salem in February. But for now lawmakers won’t have to make additional cuts. They left a cushion in the two-year spending plan they crafted in June.
Copyright 2011 Northwest News Network
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