Share of proposed tax hike consumed by pensions

A $2 billion business tax increase could grow to $3.3 billion by 2031. But Oregon pension costs are rising even faster. Pensions could eat up most of the tax increase by the end of the decade, even if the money is set aside just for schools. If you consider the state's full pension obligations, rising costs could consume nearly the entire tax increase by 2031.

Based on an analysis by the Oregon Business Council of general fund pension obligations, including schools and state agencies. Excludes pension obligations owed by local governments. Note: Expiring pension-obligation bonds reduce the size of the pension deficit in the 2027-29 budget cycle.