SALEM, Ore. - Some state lawmakers expressed concern Monday that even during this sour economy, businesses may still get money back from the state in the form of the corporate kicker tax, thereby reducing state revenue.

The chair of the Senate Revenue Committee, Sen. Ginny Burdick, D-Portland, said if corporations get a tax refund in the current economic climate, Oregon could be put in the same situation it was last recession “where we are cutting schools, being ridiculed in Doonesbury, and returning kickers to taxpayers. It’s just crazy,” she said.

For each budget, state revenue forecasters project how much state tax revenue businesses generate, but if businesses exceed that amount by 2 percent they get the difference back from the state.

For this budget, forecasters said if Oregon businesses generate $16 million more in corporate income taxes between now and June of next year, they’ll get a refund.

State economist Tom Potiowsky said there’s a 50 percent chance the corporate kicker would go into effect.

"We've seen January retail sales are actually much stronger than expected," he said.

He said corporate taxes are the hardest to predict because sales and revenue can fluctuate wildly.

Sen. Bruce Starr, R-Hillsboro, said he’s against efforts to send part of the kicker refund into a state rainy day fund and has his own plan to require the Legislature to take 3 percent off the top of every state budget and save it for a rainy day.

“It’s about paying yourself first, or basically saving money first for that rainy day fund or for a time when we’re in a recession like we are now,” Starr said. “The question is: Do you want to take money out of the taxpayers’ pocket through kicker reform or do you want to force government to live within its means.”

Sen. Frank Morse, R-Albany, said he wants the voters to decide.

“Do they want stable funding for schools and police and all these critical services? I believe they do,” he said.

The debate comes on the heels of a revenue forecast released Monday that says lawmakers will have a $182 million budget hole to fill in the next three weeks.

Legislators are working toward approval of one piece of legislation that would cut $50 million from the Business Energy Tax Credits that have spurred Oregon’s wind farm industry. The credits have been more popular than expected, and legislators say they are no longer critical to nurturing that part of the energy industry.

Meanwhile, Gov. Ted Kulongoski wants to ask voters to divert part of their kicker refund to a rainy day fund, but it’s unclear if the idea will gain traction in this special session.

The Associated Press contributed to this report.

• What else are Oregon and Washington lawmakers up to? Find out here.