Special Session 2002

 

Senate Budget & Finance Committee

Tape Log

 

Date: 2-28-02
Tapes 3-4

 

This tape log summarizes committee proceedings. For complete content and intent, please refer to tapes.

Tape / Counter

Speaker

Comments

 

Members Present:  Senators Lenn Hannon, Roger Beyer, Margaret Carter, Bev Clarno,

                                  Peter Courtney, John Minnis, Cliff Trow

 

Members Excused:  None

TAPE 3, A

 

 

003

Chair Hannon

Calls the meeting to order at 3:15 p.m.  Opens a public hearing on HB 4029-A.

 

HB 4029-A – PUBLIC HEARING

005

John Britton, Legislative Fiscal Office (LFO)

Presents an overview of HB 4029-A (EXHIBITS A, B), which reduces adult dental benefits under the Oregon Health Plan.

010

Sen. Trow

Asks about temporary and long-term savings under the measure.

015

Britton

Explains the measure saves $6.1 million in the General Fund.  Describes how the savings might be carried on.  Says that the department must manage its budget carefully and expand slowly.

040

Chair Hannon

Closes the public hearing and opens a work session on              HB 4029-A.

 

 

 

HB 4029-A – WORK SESSION

050

Sen. Courtney

MOTION:  Moves HB 4029-A to the floor with a DO PASS recommendation.

055

Sen. Trow

Advises he will vote yes on the motion but may not support the measure on the floor of the Senate.

058

 

VOTE:  6-0-1

EXCUSED:  1 – Carter

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

 

SEN. COURTNEY will lead discussion on the floor.

060

Chair Hannon

Closes the work session on HB 4029-A and opens a public hearing on HB 4030.

 

 

 

HB 4030 – PUBLIC HEARING

065

Larry Niswender, LFO

Presents an overview of HB 4030 (EXHIBITS C, D), which transfers money from the 9-1-1 telecommunications system.

070

Hasina Squires, Special Districts Association of Oregon (SDAO)

Testifies in opposition to HB 4030.  Acknowledges the difficulty in balancing the state’s budget, but urges the committee not to pass the measure.  Asserts that the 9-1-1 tax was created for a specific purpose and should not be diverted.  Expresses concern that the measure may create a precedent for similar action in the future.

100

Chair Hannon

Closes the public hearing and opens a work session on HB 4030.

 

HB 4030 – WORK SESSION

105

Larry Niswender, LFO

Lists where the expenditures are anticipated to come from.

110

Sen. Trow

Inquires whether legal action may be taken if the money is transferred.

115

Niswender

Answers that he is uncertain.

120

Sen. Trow

Inquires whether legal opinion was sought from counsel.

125

Niswender

Replies affirmatively, adding that there are precedents for such a transfer.

127

Sen. Beyer

MOTION:  Moves HB 4030 to the floor with a DO PASS recommendation.

128

 

VOTE:  6-0-1

EXCUSED:  1 - Sen. Carter

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

 

SEN. BEYER will lead discussion on the floor.

130

Chair Hannon

Closes the work session on HB 4030 and opens a public hearing on HB 4035.

 

 

 

HB 4035 – PUBLIC HEARING

140

Larry Niswender, LFO

Presents overview of the bill (EXHIBITS E, F), which makes program changes.  Notes that the –3 amendments (EXHIBIT G) have been submitted for the committee’s consideration.

170

Chair Hannon

Closes the public hearing and opens a work session on HB 4035.

 

 

 

HB 4035 – WORK SESSION

180

Sen. Courtney

MOTION:  Moves to ADOPT HB 4035-3 amendments dated 2/27/02.

182

 

VOTE:  6-0-1

EXCUSED:  1 – Carter

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

 

185

Sen. Courtney

MOTION:  Moves HB 4035 to the floor with a DO PASS AS AMENDED recommendation.

187

 

VOTE:  6-0-1

EXCUSED:  1 - Carter

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

 

SEN. MINNIS will lead discussion on the floor.

195

Chair Hannon

Closes the work session on HB 4035 and opens a public hearing on HB 4036.

 

 

 

 

HB 4036 – PUBLIC HEARING

205

Sue MacGlashan, LFO

Presents an overview of HB 4036 (EXHIBITS H, I), which affects the School Improvement Fund.

215

Chair Hannon

Asks whether the measure includes language related to disappropriation from Education Service Districts (ESDs).

220

MacGlashan

Clarifies that the language in question is in a different measure.

225

Ozzie Rose, Confederation of Oregon School Administrators (COSA)

Testifies that the interested parties would appear to be satisfied with the measure.

230

Sen. Trow

Inquires about language related to flexibility of spending.

235

MacGlashan

Elaborates on flexibility of spending.

250

Sen. Trow

Asks if the reading requirement has been eliminated for the 2003-05 biennium as well.

252

MacGlashan

Replies affirmatively.

255

Sen. Trow

Remarks that he cannot support the measure in its current form.

260

Chair Hannon

Closes the public hearing and opens a work session on HB 4036.

 

 

 

HB 4036 – WORK SESSION

265

Sen. Beyer

MOTION:  Moves HB 4036 to the floor with a DO PASS recommendation.

268

Sen. Carter

Advises she will vote no, citing the need for greater accountability.

270

 

VOTE:  4-3

AYE:               4 - Beyer R, Clarno, Minnis, Hannon

NAY:               3 - Carter, Courtney, Trow

 

Chair Hannon

The motion CARRIES.

 

SEN. CLARNO will lead discussion on the floor.

282

Chair Hannon

Closes the work session on HB 4036 and opens a public hearing on HB 5081-A.

 

 

 

HB 5081A – PUBLIC HEARING

285

Robin LaMonte, LFO

Presents overview of the bill (EXHIBITS J, K), which affects lottery fund allocations.

295

Chair Hannon

Closes the public hearing and opens a work session on              HB 5081-A.

 

 

 

HB 5081A – WORK SESSION

315

Sen. Courtney

MOTION:  Moves HB 5081-A to the floor with a DO PASS recommendation.

322

 

VOTE:  7-0

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

 

SEN. TROW will lead discussion on the floor.

330

Chair Hannon

Outlines the schedule for the evening committee hearing.  Declares the meeting to be in recess until 6:30 p.m.

 

 

 

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335

Chair Hannon

Reconvenes the committee at 6:33 p.m.

 

SB 5575 – PUBLIC HEARING

352

Ken Rocco, Legislative Fiscal Officer

Provides an overview of SB 5575 (EXHIBITS L, M).  Presents copies of the –4 amendments (EXHIBIT N) for the committee’s consideration and says the amendments replace the bill.  Indicates that the amended measure anticipates $464 million in budget reductions, including adjustments by the Emergency Board (E-Board) and lottery bond calculations.  Reviews the changes the –4 amendments make to SB 5575.

TAPE 4, A

010

Rocco

Continues reviewing the changes that the –4 amendments make to the measure. 

028

Ruby Houghton, Cure Oregon

Provides information regarding the state’s health network.  Asserts that the state’s entire health care system is becoming unstable and unable to serve vulnerable Oregonians.  Notes the reduction in the funding and asks that it be restored. 

067

Nan Heim, Oregon Rehabilitation Association

Oregon Rehabilitation Association.  Expresses concern regarding the elimination of the COLA for her program.  Describes the services provided and the population served.  Employees are low paid and the loss of the COLA will threaten quality of care and threaten the gains made with regard to employee turnover. 

090

Sen. Carter

Asks if it would still be possible to attract federal funds if a portion of the state funding was provided.

094

Heim

Replies affirmatively, adding that federal funds are provided at a ratio greater than 1:1.

108

Kate Dickson, Oregon Department of Education (ODE)

Expresses concern regarding the reductions in both the state school fund and ODE’s budget.  Discusses the reductions for assessment in the revised budget, saying it will hinder student assessment.  Comments that in a few years technology will be available to offer testing via the internet, which will drastically improve the process and eliminate tedious record keeping.  Submits that investment now will save money in teacher time and paperwork later.  Requests that the committee reconsider the reduction. 

151

Janet Hogue, Executive Director, Beaverton Education Foundation

States that her daughter chose to attend college out-of-state because Oregon has not invested sufficiently in higher education.  Comments on the budget decisions that have been made during the past decade and the effect of budget reductions on the Beaverton School District during a period of student growth. 

203

Hogue

Continues to discuss the effects of inadequately funding education and asserts that students who have passed through Oregon’s schools during the past decade have suffered as a result.  Wonders how reductions could have occurred during a boom economy.  Decries the tax system as unbalanced.  Laments the decision to provide tax breaks rather than create a rainy day fund.  Argues that the initiative process has injured the state. 

251

Hogue

Opines that there is no longer enough money in the state budget to fund necessary programs and says action must be taken to raise revenue.  Recalls that a personal surcharge was raised during the downturn in the early 1980s.  Suggests postponing the implementation of Ballot Measure 88 (2000).  Requests that a bipartisan commission be created to revise the tax system. 

303

Hogue

Reiterates that if the state wishes to continue to provide high levels of service it must find new ways to pay for them. Acknowledges that taxes are high but says they need to be because they are currently the only sources of revenue. 

 

 

 

 

HB 5575 WORK SESSON

347

Chair Hannon

Asks staff to explain the increase in cost of living adjustment (COLA).

363

Rocco

Explains the COLA adjustment referred to by witnesses.

370

Chair Hannon

Asks whether other providers have been forced to do without commensurate pay increases.

385

Rocco

Addresses the issue of student assessment.  Says the reduction of $5.5 million for assessment might be offset by federal funds, or that it could be covered by an allocation by the E-Board.

TAPE 3, B

004

Sen. Trow

Acknowledges the effort that has gone into making the selective cuts, but says he cannot support them and will vote no. Argues that the state could raise revenue if it had the will to do so. 

008

Sen. Beyer

MOTION:  Moves to ADOPT SB 5575-4 amendments dated 2/28/02.

010

 

VOTE:  5-2

AYE:               5 - Beyer R, Clarno, Courtney, Minnis, Hannon

NAY:               2 - Carter, Trow

 

Chair Hannon

The motion CARRIES.

 

012

Sen. Beyer

MOTION:  Moves SB 5575 to the floor with a DO PASS AS AMENDED recommendation.

018

Chair Hannon

Expresses frustration with the lack of available revenue sources.  Says that until Oregonians get angry enough to pay for state services it will not be possible to do so.  Acknowledges the need for new, permanent and long-term revenue. 

 

 

VOTE:  5-2

AYE:               5 - Beyer R, Clarno, Courtney, Minnis, Hannon

NAY:               2 - Carter, Trow

 

Chair Hannon

The motion CARRIES.

 

 

 

046

Chair Hannon

Adjourns the meeting at 7:10 p.m.

 

 

EXHIBIT SUMMARY

A – HB 4029, staff, 4 pp.

B – HB 4029, staff measure summary, staff, 2 pp.

C – HB 4030, staff, 5 pp.

D – HB 4030, staff measure summary, staff, 1 p.

E – HB 4035, staff, 5 pp.

F – HB 4035, budget report and measure summary, staff, 3 pp.

G – HB 4035, -3 amendments, staff, 1 p.

H – HB 4036, staff, 1 p.

I – HB 4036, staff measure summary, staff, 2 pp.

J – HB 5081, staff, 4 pp.

K – HB 5081, budget report and measure summary, staff, 4 pp.

L – SB 5575, staff, 16 pp.

M – SB 5575, -1 amendments, staff, 1 p.

N –  SB 5575, -4 amendments, staff, 22 pp.

 

 

 

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