Major findings outlined in the initial draft report deal with a variety of issues. Economic Stability Oregon's economy is more stable than it was in 1980. Oregon's economy is more diverse. Oregon's economy is still subject to business cycle fluctuations. Though more diverse than 1980, Oregon's economy is highly dependent on durable goods manufacturing industries such as computer equipment, lumber and wood products.
Structural change makes Oregon's economy less predictable.
Overall Revenue System Oregon's revenue system is more sensitive to changes in the economy than it was in 1980. The shift away from property taxes to income taxes has made the state-local revenue system more unstable as a whole. A growing share of taxes are collected at the state level. The General Fund is subject to short-term fluctuations. The General fund grows rapidly during economic expansions, but slows sharply during recessions because income taxes make up 95 percent of revenue to the General Fund.