The forecast for total personal income tax receipts during the current biennium was increased $97.7 million from the September forecast. If not for the upcoming changes to the personal income tax withholding formulas, the forecast would have been revised downward.
"Longer term, our challenges persist - and we must continue to proceed and budget with prudence, as well as focus on job creation. Last month's announcement of a major expansion by Intel and this week's improved jobs report are steps in the right direction. But we cannot be satisfied with a slow-growth recovery.
"Also, it will be a mistake to treat the additional revenue forecasted for this biennium as a windfall. We should use that revenue to help address what will now be a $3.5 billion shortfall in the next budget period. The need to "reset" our budget is now all the more compelling.
"In the weeks ahead, I will continue to work with the legislature and with Governor-elect Kitzhaber to better position the state to address the tough decisions that confront us in the next budget period and to continue to improve our economy in the years ahead."