SALEM -- State economists predict Oregon income taxpayers will receive a $473 million "kicker" rebate at the end of the two-year budget cycle, $124 million more than was estimated in February.

The quarterly revenue forecast released Thursday morning shows the state's economy continued to grow faster than economists anticipated, meaning that income taxpayers are projected to get bigger credits when they do their taxes next year.

The rebate is expected to amount to a more than 6 percent reduction in tax liability for every Oregonian -- $284 for the average taxpayer, according to economists.

Personal income tax revenue grew 3.5 percent above what economists predicted in 2013, soundly passing the threshold to trigger the refund. Under Oregon's unique "kicker" law, any tax surplus must be returned to voters in its entirety if revenues exceed 2 percent of what state economists predicted at the start of the two-year budget cycle.

Even after the rebate, economists expect fast-growing revenues will send $463 million more to the state's general fund.

Although economists are predicting a larger surplus than in the last forecast, the kicker's actual size won't be known until August, after the state's fiscal year ends June 30 and revenues are finalized.

Related: How the Kicker works and how much you might get

In addition, the income increase will allow the state to pump an additional $105 million to the state school fund, bringing the total school budget to an unprecedented $7.36 billion. Legislators had earlier pledged to direct 40 percent of additional revenue from the February 2015-17 forecast to schools.

The new figure still falls short of what school advocates had been pushing for. An alternative proposal backed by Republican lawmakers and teacher unions would have raised the school budget to $7.56 billion, but Democrats feared it would gouge other parts of the budget.

"I am pleased that strong economic growth will enable us to invest an additional $100 million in our public schools as well as fund early childhood, career technical, and STEM programs that support student success and reduce the opportunity gap," Gov. Kate Brown said in a statement. "According to the U.S. Department of Education, Oregon's 2013 graduation rate was the worst in the country. We simply must do better, and we will."

Keep checking for updates.

-- Ian K. Kullgren

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