Oregon Governor Proposes Diverting $1 Billion Kicker Rebate to Combat Soaring Wildfire Costs Amid Political Pushback
Oregon Governor Tina Kotek has opened a conversation on using ‘kicker’ funds to cover the cost of wildfires in the state.
Part Of Oregon ‘Kicker’ Rebate Could Go To Wildfire Costs
Kotek indicated that she supports using part of the ‘kicker’ tax rebate to cover some wildfire costs on a one-time basis.
The kicker rebate is a tax refund triggered when the state exceeds its revenue projections by over 2%. The surplus money is generally returned as an income tax credit to taxpayers, and not all sides support the proposal to divert part of these funds to wildfire costs.
The latest state revenue forecast estimates a $1.6 billion kicker in 2025, significantly less than the record high of $5.6 billion in 2023. Kotek proposed diverting $1 billion of the 2025 surplus toward wildfire suppression and mitigation.
Kotek’s recommended budget- released in December, asked lawmakers to withhold state reserve fund payments of $150 million for wildfire costs.
Lawmakers have been struggling to reach a consensus on how to fund wildfire suppression this session and have looked at other possibilities, such as adding a nonrefundable five-cent fee to the bottle bill deposit, redirecting a tax on insurance companies, and potentially using lottery funds.
Kotek said the Legislature must find a way to pay for wildfire costs this session. Still, lawmakers need a two-thirds majority in both chambers to divert kicker funds to other projects.
Oregon Senator Jeff Golden, chair of the Senate Committee on Natural Resources, who has advocated for the suspension of the kicker in favor of investing the money into an interest-earning fund, supports Kotek’s proposal to use kicker funds on a one-time basis and indicated he believes she is on the right track.
State Republicans don’t want to add the kicker rebate to wildfire funding. According to House Minority Leader Rep. Christine Drazan, a Republican from Canby, the proposal got a hard no from House Republicans.