June 3, 2026

Revenue Forecast for the 2025-2027 Biennium

On May 20, 2026, the Oregon Office of Economic Analysis (OEA), part of the Department of Administrative Services, presented the 2025-27 biennium revenue forecast. OEA projected the state’s revenue will increase by $345 million from the previous forecast, which anticipated an ending fund balance of nearly zero. The projected ending fund balance of $345 million will not be sufficient to make up for the failed transportation funding package. 

The revenue increase was split between personal income ($153 million) and corporate income tax ($139 million). Taxable income is slightly lower than the previous forecast. The current projection does not project a personal income kicker but does project a corporate kicker in the next biennium. 

Unemployment rates in Oregon have increased slightly statewide compared to a year ago. The rise appears to have leveled off and is consistent with national trends. Oregon’s unemployment rate remains about 1 percent higher than the national average. 


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May Primary Summary

Oregon’s May 19 primary election determined party nominees and many judicial races. All Supreme Court and Court of Appeals incumbents ran unopposed and have been reelected. Several counties held contested circuit court races, including Benton, Clackamas, Lane, Multnomah, and Tillamook counties.  

Benton County, Tillamook County, and Multnomah County (4th District, Position 5) all filled circuit court seats, electing new judges to replace retirees. In Clackamas County, incumbent Judge Michelle Bartov appears to have reached the required majority to avoid a runoff in the general election, but this may not be confirmed until final results are posted in mid-June.  

In Multnomah County, Peter Klym decisively defeated incumbent Adrian Brown for Position 12 with about 70% of the vote. In the race to succeed retiring Judge Amy Holmes Hehn in Position 14, Joseph Hagedorn and Elizabeth Savage are headed for a runoff in the general election. Position 2 will also go to a general election runoff between Diane Sykes and Laura Maurer Rowan. In Lane County, Katina Saint Marie narrowly prevailed over incumbent Amit Kapoor.  

Partisan Offices and Ballot Measures 

The Democratic incumbent Governor Tina Kotek will face a rematch against Republican state Senator Christine Drazan this November. Incumbent Labor Commissioner Christina Stephenson retained her position, and U.S. Senator Jeff Merkley advances as the Democratic nominee.  

In state Senate District 15, an incumbent state Senator suffered a rare loss, with challenger Myrna Muñoz defeating incumbent Senator Janeen Sollman. In state Senate Districts 6 and 16, incumbent state Senators Cedric Hayden and Suzanne Weber were barred from running for re-election. In several state House districts incumbents are retiring, including in House District 27 where physician Dr. Tammy Carpenter defeated Beaverton City Council Member Ashley Hartmeier-Prigg by over 400 votes.  

Ballot Measure 120, which would have increased the gas tax, was overwhelmingly rejected by voters, with over 83% of voters voting no. The measure aimed to close the gap on the transportation funding shortage. 


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Rule of Law in May

The Oregon State Bar (OSB) launched its Rule of Law Initiative during the month of May which coincided with Law Day on May 1. There is now a Rule of Law Initiative page on the OSB website with background resources and links including several groups for lawyers to get involved with and a calendar of upcoming events.

In recognition of Law Day on May 1 and celebrating the rule of law, OSB highlighted pro bono opportunities for lawyers throughout the month of May. These activities included pro bono opportunities with CLEAR Clinic, Deschutes County Lawyer in the Library, Oregon Law Center’s Senior Law Service, CASA of Marion County, and Habitat for Humanity and Proud Ground.  

At the swearing-in of new lawyers on May 21 at Willamette University, OSB and the Oregon Supreme Court invited lawyers to retake their oath of admission to the Oregon State Bar. The opportunity for retaking the oath was meant to inspire people to reflect on the importance of the rule of law, an independent judiciary and legal profession, and access to justice for all Oregonians.


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OBI Economic Summit

Oregon Business and Industries (OBI) hosted their annual economic summit in Salem. The presentation by Ted Abernathy from Economic Leadership highlighted Oregon’s struggle to keep pace economically with the rest of the nation. Oregon ranks among the lowest in the country across key categories including GDP growth and job growthA panel discussed pathways to improve Oregon’s economy and bring competitiveness back to Oregon. The panel suggested exploring reforms in areas such as Oregon’s tax structure and land-use system to jumpstart Oregon’s economy and make Oregon more competitive for businesses and workers. Panelists added the need for keeping cultural amenities, creating a clearer and predictable environment for businesses, and rural communities must have a seat at the table when addressing rural economy issues 


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Civics Learning Project

On May 15, OSB took part in the Civics Learning Project’s Law Day event at the University of Oregon School of Law. Several hundred local high schoolers were in attendance to hear from speakers about the legal field and how working in the legal field relates to current events and key policy issues. OSB President Tomás Hernandez was a speaker on a panel about the 250th anniversary of the Declaration of Independence and OSB board member John Marandas moderated a panel about immigration law.  

Tomas Hernandez, OSB President, speaking with Eugene Mayor Kaarin Knudson and Oregon Department of Education Chair Jennifer Scurlock.
From left to right: Oregon Department of Education Chair Jennifer Scurlock, Eugene Mayor Kaarin Knudson, and OSB President Tomás Hernandez.
John Marandas and Peggy Nagae talking to students.
OSB Public Affairs Committee Member John Marandas and Co-Founder of the Minoru Yasui Legacy Project Peggy Nagae, speaking with students.
From left to right: John Marandas, Peggy Nagae, and Attorney & Oregon Governor’s Policy Advisor Danny Sanots speaking to attendees.
John Marandas, Peggy Nagae, and longtime policy advisor to several Oregon governors Danny Santos speaking to attendees.

Archives



Thank you for reading the Oregon State Bar’s CAPITOL INSIDER.
The archives are available here.

2026 Oregon State Bar Officers and Public Affairs Chair



Tomás Hernandez, President, Oregon State Bar
Kyle Sciuchetti,
President Elect, Oregon State Bar
Myah Kehoe,
Immediate Past President, Oregon State Bar
Curtis Peterson,
Chair, Public Affairs Committee, Oregon State Bar Board of Governor

For questions about articles, legislation, or the legislative process, please contact:


Dominique Rossi, Chief External Affairs Officer

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