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Oregon 2023: Entering the Post-COVID World

Abstract

The political and budget landscape of Oregon once again can be characterized by incivility and polarization as exemplified by the 6-week walkout of Senate Republicans denying the chamber a quorum to conduct business including the 2023-25 budget. Eventually the Republicans returned, and a budget was passed after the Democrats made concessions on abortion, gender affirming care, and gun bills. The 2023 economic forecast was surprisingly positive given the Federal Reserve’s reaction to persistent inflation, the governor and legislature chose three very difficult issues as their priorities: (1) homelessness and housing affordability, (2) mental health and addiction services, and (3) improved early literacy and K-12 education outcomes. There have been major state leadership changes in 2022 and 2023, although the shifts featured familiar faces in new positions more than any deep change. As the 2022 elections demonstrated, the rural-urban split festers. Meanwhile, the federal spigot from COVID funding slowly dries out, although federal infrastructure and economic development programs advance. In sum, the state’s steadiness could be on thin ice, especially with Oregon’s infamous “kicker” law returning a record $5.6 billion of tax revenue back to taxpayers.

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