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flag Oregon lawmakers consider redirecting part of the tax rebate to schools and fire prep, with a voter vote possible.

flag Oregon lawmakers may revisit the "kicker" tax rebate law in 2026, with Senator Floyd Prozanski proposing to redirect part of the surplus tax refunds to schools and fire preparedness. flag The kicker, which returns excess state revenue to taxpayers, has triggered rebates in 14 of the past 23 bienniums, including a record $5.6 billion in 2024. flag Prozanski’s bill would retain about $2.65 billion, reducing this year’s rebate from $1.41 billion to $850 million. flag The state’s new chief economist is using updated forecasting that may lower future rebate likelihood. flag While Democrats support reform, citing nearly $11 billion diverted from public services, Republicans oppose changes, calling the rebate a spending check. flag A two-thirds vote is needed to suspend the law, making reform challenging, but Prozanski’s proposal would allow voters to decide via ballot measure.

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