Oregon revenue forecast: State to bring in $200 million more than expected

regon's economy is growing fast enough to generate nearly $200 million more in tax revenue for the state's next budget than had been expected, state economists said Wednesday. That means the state's $1.8 billion budget shortfall has shrunk to $1.6 billion. Although the new revenue will be welcome in Salem, it still leaves lawmakers with a massive budget hole to address. The gap is driven by rising costs in the state's public pension system and Medicaid, as well as three unfunded directives passed by voters in November. In a presentation at a joint meeting of the House's and Senate's revenue committees on Wednesday, state economist Mark McMullen told lawmakers that the takeaway from the forecast was "so far, so good." Half of the extra $200 million comes from unexpected revenues in the current two-year budget, which will likely be carried over to the 2017-19 budget cycle, McMullen said.