November 19 – The State of Oregon today released its quarterly revenue forecast for the 2025–27 biennium, showing a marked improvement in the state’s fiscal outlook. The Office of Economic Analysis now projects a $63.1 million shortfall, a significant reduction from the previously forecasted $373 million deficit in August. Economists propose this turnaround is driven by stronger corporate tax receipts and improved national economic expectations, despite ongoing concerns about slower growth and federal policy impacts.
The earlier forecast had attributed an estimated $888 million revenue loss over two years to federal tax and spending changes, which had reversed a modest surplus at the end of the June legislative session.
While the current outlook is more optimistic, economists caution that risks remain, including a potential recession, a possible government shutdown, and a pending Supreme Court ruling on federal tariffs. The forecast also raises questions about the stability of Oregon’s long-term budget outlook and continued support for critical services including education, healthcare, and public safety.
In response, the Oregon Community College Association (OCCA) continues to urge lawmakers to protect funding for Oregon’s 17 community colleges, which serve as essential infrastructure for workforce development and economic growth.
“This forecast underscores the urgent need to safeguard investments in Oregon’s community colleges,” said Dr. Abby Lee, Executive Director of OCCA. “Our colleges are not only education providers – they are economic engines. When we invest in community colleges, we invest in Oregon’s recovery and long-term resilience.”
OCCA calls on lawmakers to:
- Prioritize community college funding in the 2026 legislative session
- Avoid cuts that would limit access to affordable education and workforce training
- Recognize the role of community colleges in driving economic recovery and opportunity, especially in rural and underserved communities.
OCCA emphasizes that cuts in the second half of the biennium are especially difficult, as colleges have already committed to programs, staffing, and student services based on earlier funding levels. Mid-cycle reductions disrupt planning and directly impact students’ access to affordable education and timely completion.OCCA remains committed to advocating for Oregon’s community colleges, amplifying their impact and ensuring they continue to serve as engines of equity, opportunity, and economic vitality across the state.