Study: Portland region benefits state, but is it a fair deal?
Published 11:00 am Wednesday, February 12, 2025
- A new report documents how the Portland region supports the rest of Oregon.
Oregon is dependent on the vitality of the Portland region, which contributes more to the overall economy and state government than the rest of the state combined.
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But it is unclear whether Multnomah, Washington and Clackamas county residents and businesses are getting a fair return on their fiscal contributions.
That is the upshot of a new study released on Wednesday, Feb. 12. It was commissioned by the city of Portland, Multnomah County and the Portland Metro Chamber, and was produced by the ECOnorthwest economic consulting firm.
The report will be presented at the chamber’s monthly breakfast forum on Thursday, Feb. 20, along with the annual State of the Economy and State of Downtown and Central City reports, also produced by ECOnorthwest.
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“Elected officials should know the Portland region is a good investment that produces benefits for the entire state. It is not a question of urban versus rural,” Chamber President and CEO Andrew Hoan said of the study, which will help support the organization’s lobbying efforts at the Oregon Legislature, the Multnomah County Commission and the Portland City Council.
The study is titled “Portland’s Region’s Role in the State’s Fiscal Health.” It found that 42.8% of Oregonians live in the tricounty region, which is home to half of all jobs in the state. But the region generates a disproportionate 57.5% of the Oregon’s total economic output (GNP), while also contributing 53.3% of all state revenue.
“The numbers tell a compelling story: investments made in Portland and Multnomah County ripple across the rest of the state, driving revenue that supports communities statewide. This study demonstrates the importance of a resilient and growing Portland region should not just be a local priority — it’s a strategic investment in Oregon’s shared future,” according to the study.
But the study also says that it is all but impossible to know how much state revenue is coming back to the region on a per capital basis.
“Calculating per capita expenditures is extraordinarily challenging, as the state does not track spending by specific geographic distribution. Instead, funds are allocated to programs and departments, without a mechanism to consistently monitor where in the state those funds are ultimately spent. State agencies distribute funding across programs and regions using formulas based on population size, need, and other relevant factors,” the study reads.
Mike Wilkerson, the ECOnorthwest partner and director of economic research who led the study, said he was surprised to learn state spending data is not available on a geographic or per capita basis.
“We did a lot of research, including meetings with Oregon Revenue Department officials and public records requests. State agencies simply don’t track their spending that way,” Wilkerson told the Portland Tribune.
The only exception does not favor the Portland region — Oregon public school spending.
“Oregon’s school funding follows an equalization formula, ensuring students receive similar support regardless of where they live, even if their county contributes more. High-contributing communities don’t see a direct return on their local tax dollars, but the system guarantees education dollars are allocated by formula — making it one of the few areas of the state budget with certainty on where exactly in the state money is being spent,” the study said.
The lack of per capita state spending data is in strong contrast to the details of the revenue data, which shows the tricounty region generates more personal income taxes, corporate income taxes, corporate activity taxes, unemployment insurance taxes and medical provider/hospital taxes than the rest of the state. The only category where it lags is gasoline and use fuel taxes.
“Residents and businesses in the Portland metro area contribute a disproportionately large share of the state’s revenue,” the report reads. “For example, after reviewing 37 revenue sources, the Portland region contributes 60% more per capita in personal income tax, 92% more per capita in corporate income tax, and 72% more per capita in corporate activity tax.”
And, according to the report, Multnomah County, which includes Portland, generates more per capita revenue than either Washington or Clackamas counties.
“The per capita amount of revenue generated in Multnomah County is slightly higher than the entirety of the rest of the tri-county area ($5,570 versus $5,440). These figures highlight the collaborative role that both residents and businesses in Portland and Multnomah County play in supporting Oregon’s fiscal foundation,” the study reads.
The reports to be presented at the Feb. 20 forum will help answer questions about the region’s future. Last year’s reports documented that the metro area lost population in the aftermath of the pandemic for the first time in memory. Is that a continuing trend, and, if so, what are the long-term implications?
“We did a lot of research, including meetings with Oregon Revenue Department officials and public records requests. State agencies simply don’t track their spending that way.”
Mike Wilkerson, ECOnorthwest partner, director of economic research