February 4, 2026 10:55 a.m. 

On Wednesday, Governor Tina Kotek issued a statement in response to the first quarter revenue forecast.

Governor Kotek said, “Oregon’s economy continues to show signs of resilience, even though President Trump’s economic policies are exacerbating inflation pressures and cost of living challenges for Oregonians. My focus remains on driving solutions for people struggling to make ends meet and defending Oregon’s values in the face of federally driven cuts to essential services”.

Reports indicate the forecast shows the state’s budget gap is closer to $650 million as opposed to the prior $750 million that had previously been estimated.

House Republican Leader Lucetta Elmer responded to the forecast and said, “This forecast should be a moment to reset. If Democrats are serious about prioritizing affordability, growing the economy, and restoring trust in voters, they should stop looking for new ways to take from Oregonians – and do the hard work required to achieve those goals”.

The forecast came out with the short session of the Oregon State Legislature underway.