SENATE SPECIAL SESSION COMMITTEE ON BUDGET AND FINANCE

 

 

February 26, 2002   Hearing Room E

11:15 a.m.     Tapes 1 – 2

 

MEMBERS PRESENT:            Sen. Lenn Hannon, Chair

Sen. Roger Beyer

Sen. Peter Courtney

 

MEMBER EXCUSED:            None

 

STAFF PRESENT:                  Susan Jordan, Legislative Fiscal Office

Ken Rocco, Legislative Fiscal Office

Patricia Nielsen, Administrative Support

 

MEASURE/ISSUES HEARD:            Organizational meeting

HB 4028A - Public Hearing and Work Session

SB 5575 - Public Hearing and Work Session

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

 

TAPE 1, A

003

Chair Hannon

Calls the meeting to order at 11:25 a.m.  Opens organizational meeting.

ORGANIZATIONAL MEETING

005

Sen. Courtney

Moves to adopt proposed committee rules for the Senate Special Committee on Budget and Finance for the Second Special Session of the 71st Legislative Assembly (EXHIBIT A).

010

Chair Hannon

Without objection, the motion is approved.  Opens public hearing and work session on HB 4028A.

HB 4028A – PUBLIC HEARING

015

Susan Jordan

Legislative Fiscal Office (LFO).  Presents an overview of HB 4028A, which allows Oregon Liquor Control Commission (OLCC) stores to remain open on Sundays. 

020

Sen. Courtney

Asks whether staying open on Sundays is mandatory or optional.

025

Jordan

Confirms it is optional.

030

Paul Cosgrove

Distilled Spirits Council of the United States.  Offers to answer questions for the Committee.

035

Sen. Courtney

Asks for more information on the position of liquor store owners.

040

Cosgrove

Explains that about half of store owners want to stay open on Sundays, according to a poll of the largest 40 stores.

060

Sen. Courtney

Asks how many stores there are in the state.

065

Cosgrove

Responds there are 237 stores, and about half want to stay open.  States that nearly all sales are made in the largest 40 or 50 stores.


 

070

Chair Hannon

Asks for additional public testimony.  Seeing no additional requests for testimony, closes public hearing on HB 4028A.  Opens work session on HB 4028A.

HB 4028A – WORK SESSION

080

Sen. Courtney

Moves HB 4028A to the floor with a DO PASS recommendation.

085

Chair Hannon

Without objection, the motion is approved.  Sen. Hannon will lead the discussion on the floor.  Recesses the committee at 11:32 a.m., to reconvene at 1:00 p.m. for a hearing on SB 5575, the budget disappropriations bill.

 

 

 

***************************

RECESS          ***************************

 

 

 

110

Chair Hannon

Reconvenes the committee at 1:23 p.m.  Opens public hearing and work session on SB 5575.

SB 5575 – PUBLIC HEARING

125

Ken Rocco

LFO.  Presents overview of SB 5575, the omnibus disappropriations bill.  Explains the bill is based on former SB 5574 and HB 5070, which were vetoed.  Describes specific changes.  Presents dash-1 amendments (EXHIBIT B).  Refers to written analysis of dash-1 amendments (EXHIBIT C).

180

Gov. John Kitzhaber

Testifies regarding SB 5575.  Expresses concern about direction of the rebalance package.  Describes the short-term and long-term problems to be addressed.  Affirms the current legislature has lengthy practical knowledge to consider the problem.  Explains the state’s bond rating may be negatively affected by a long-term strategy of relying on economic growth to rebalance the budget.

Expresses gratitude for taking out the 1% trigger.  Expresses deep concerns about $50 million taken out of the salary package, which may result in real program cuts by agencies because the salary package has been negotiated by contract.

250

Chair Hannon

Thanks the Governor for appearing and expressing his views.  Expresses willingness to continue working with the Governor’s office.

270

Governor Kitzhaber

Affirms.

275

Sen. Courtney

Comments this will be an open process.  Asks for additional information about the effect on the state’s credit rating.

310

Governor Kitzhaber

Explains he has had an email from Moody’s and a letter will go to the state Treasurer.  Describes the expected effect on the state bond rating if the legislature balances the budget by using a strategy which relies on economic growth.

345

Sen. Courtney

Asks about revenue forecasts for September 2002.


 

350

Governor Kitzhaber

Responds he expects no change in the revenue forecast in June and September because the forecast is for the rest of the biennium.  Continues that in the next few weeks the state will have income tax collections information.  Predicts the economy will not improve very quickly and there will be another rebalance effort needed because of the expected increase in Department of Human Services (DHS) cases.

370

Sen. Courtney

Asks if the legislature will be coming back in September.

375

Governor Kitzhaber

Responds there is no information about that now.

390

Stan Bunn

Superintendent of Public Instruction.  Testifies about 4 areas of the bill:

·         TESA program for computerized student testing.  The $4.8 million cut will completely kill the program, causing a serious impact on teachers and students.

TAPE 2, A

035

Bunn

Continues, presenting impact on remaining program areas:

·         Data Integrity Assurance Project.  The proposed $10.1 million cut will eliminate the possibility for the project to save $80 million in the next ten years in costs for data assurance programming.

·         $112 million reduction in the School Improvement Fund to come in the second year of the biennium. 

·         Impact on the deaf and blind schools

060

Jean Mulholland

Director of Special Schools, including the deaf and blind schools.  Urges the committee to avoid budget cuts which will be devastating to the schools’ programs.

090

Sen. Courtney

Asks how close the schools are to closing.

095

Mulholland

Responds they hope not to have to consider closing, but may need to eliminate sports and classroom programs.

100

Bob Castagna

Oregon Catholic Conference.  Testifies and asks for reconsideration of cuts which reduce the safety net for vulnerable poor.  Refers to submitted written material (EXHBITS D, E).

150

Phillip Wong

Ecumenical Ministries of Oregon.  Describes the conference of churches before last special session.  Refers to press release (EXHIBIT F).

185

Al Soenneker

Executive Director, Riverside Training Centers in St. Helens and Coast Rehabilitation Services in Astoria.  Asks for return of a 2.5% cost of living increase so the centers need not cut wages.  Explains the COLA would cover a 21% increase in medical care costs, not salary increases.

220

Jeanne Farr

Vice President of Developmental Disability Services at the Albertina Kerr Center.  Urges the committee to restore essential funds.  Explains how caregivers provide essential services to the disabled.

285

Beth Burczak

League of Women Voters.  Expresses concern over the lack of public process provided during the special sessions, as well as the lack of notice and lack of materials.  Urges the committee to consider enhanced revenue sources instead of cutting education and human resources.

315

Chair Hannon

Describes the process which has been used.

350

Ozzie Rose

Confederation of Oregon School Administrators.  Requests reinstatement of the TESA program and the Data Integrity project.  Explains how these packages allow school districts to get student information together and measure accountability.  Continues that if $112 million is cut for next year, there will be severe impact for the following biennium.

TAPE 1, B

010

Ms. Chris Coughlin

Coalition for School Funding Now.  Expresses concern about the school budgets for next year and next biennium.  Testifies in opposition to SB 5575, because it is not a long-term solution.

045

Jane Ames

Parent with children in Portland public schools.  Describes specific cuts looming, such as custodial services being contracted out, closing two schools, increasing staff ratios and shortening the school year.  Describes all the activities done by volunteers now.

105

Ralph Groener

ASFCME lobbyist.  Speaks against the $50 million cut to salaries/benefits.  Comments that the public must be educated about the budget.  Recommends the voters take a leadership role in deciding budget cuts.  Suggests that ballot measures have done damage to the state’s income.  Agrees with the Governor that a $50 million cut to salaries will actually come from programs, because the salaries are set according to contract and cannot be reduced.

225

Chair Hannon

Recesses public hearing at 2:25 p.m., to be reconvened at the call of the Chair.

260

 

(The Committee did not re-convene.  Signed off 6:10 p.m.)

 

Submitted By,                        Reviewed By,

 

 

 

Patricia Nielsen,                        Adrienne Sexton,

Administrative Support                        Administrator

 

EXHIBITS

 

A – Proposed committee rules, staff, 1 p

B – SB 5575, Dash-1 amendments dated 2-26-02, staff, 1 p

C – SB 5575, Dash-1 amendments analysis, staff, 1 p

D – SB 5575, letter to legislators, Robert Castagna, 2 pp

E – SB 5575, press release, Robert Castagna, 5 pp

F – SB 5575, press release, Phillip Wong, 3 pp