Oregon lawmakers will get an update on the state's financial outlook Tuesday in Salem.
Related: 4 Things To Know As Oregon's Tax And Budget Wars Heat Up
The May revenue forecast is a critical piece of information as lawmakers decide how to spend taxpayer dollars during the next two-year budget cycle.
Coming into the forecast, there's a $1.6 billion gap between what lawmakers are currently expecting in revenue and what state agencies say it will take to continue services at their current levels.
That gap could shrink or grow bigger, depending on what the forecast from state economists says.
Lawmakers are likely to cover the shortfall by some combination of reducing state services and increasing taxes.
They're currently debating whether to overhaul the way the state taxes businesses. That could bring in additional dollars, though majority Democrats would need some Republican support for the proposal to become law.