SPECIAL COMMITTEE ON BUDGET

 

 

June 21, 2002 Hearing Room E

10:00 AM     Tapes  7 - 8

 

MEMBERS PRESENT:            Sen. Steve Harper, Chair

Sen. Margaret Carter

Sen. Peter Courtney

Sen. Avel Gordly

Sen. Charles Starr

 

MEMBER EXCUSED:            Sen. Roger Beyer

Sen. Ken Messerle

 

STAFF PRESENT:                  Paul Warner, Legislative Revenue Officer

Patricia Nielsen, Administrative Support

 

MEASURE/ISSUES HEARD:            HB 5091A – 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 7, A

005

Chair Harper

Calls the meeting to order at 10:25 a.m.  Opens work session on HB 5021A.

HB 5021A - WORK SESSION

010

Paul Warner

Legislative Revenue Officer, Legislative Revenue Office (LRO).  Describes the overview of revenue changes during the past few months and provides status report.  Refers to Gap Calculation handout (EXHIBIT A) and discusses specific figures.

110

Warner

Continues and refers to EXHIBIT A.  Discusses tobacco securitization.

150

Warner

Continues and refers to EXHIBIT A.  Discusses tax increases.

240

Warner

Concludes.

245

Chair Harper

Comments these are approaches to discuss.

250

Sen. Carter

Asks about delay of light rail.

255

Warner

Explains it is a refund of bond due, and there are reserves kept which are freed by the bond being paid off.

266

Sen. Gordly

Asks whether the funds are captured from west side light rail, and what will happen to the interstate light rail project.

275

Warner

Responds and explains the funds were reserved for specific project.

280

Sen. Gordly

Asks if it is possible for the funds to be claimed for the interstate light rail project.

295

Warner

Responds he will confirm with Treasury.

298

Sen. Yih

Asks whether disconnect from bonus depreciation is retroactive or prospective.

305

Warner

Responds it would reach back to Sept 10, 2001 and negate the bonus depreciation for the 2003-05 biennium.

315

Sen. Yih

Inquires if the $124 million is for two years.

320

Warner

Confirms it is for the 2001-03 biennium period.

325

Warner

Continues on reverse page of EXHIBIT A, and reviews the House proposal.  Begins discussion with Solutions section, with delay of Measure 88 tax reduction.  Continues.

425

Warner

Continues discussing House proposal budget reductions.

TAPE 8, A

010

Warner

Continues discussing House proposal budget reductions.  Explains 911 balance.  Discusses state school fund payment.  Concludes there is an $879 million balance to the House proposed solution.

055

Sen. Courtney

Inquires whether the House plan allows for September 2002 forecast.

058

Warner

Responds the $28 million general funding ending balance would be applied to decrease in September forecast, but anything beyond that would require legislative action.

060

Sen. Courtney

Asks if the House cut K-12 education.

065

Warner

Describes two reductions of $112 million and $200 million, and offset.

070

Sen. Courtney

Asks if Proposition 13 was connected to reduction.

075

Warner

Explains it is a change in payment pattern.  House actions put schools back where they were at the end of 2nd special session.

085

Sen. Courtney

Disagrees and asks about September ballot measure.

090

Warner

Responds and continues the House also proposed a backup bonding program of $180 million revenue against master settlement.  Explains the bonds would be sold in spring to have payments to schools by May 2002.

 

 

Discussion about direction of the new stability fund.

140

Sen. Courtney

Asks if common school fund money is dedicated to K-12.

145

Warner

Explains and discusses proposals.

155

Sen. Carter

Asks when earnings will be defined.

158

Harper

Comments this budget element is uncertain.

160

Warner

Advises the Senate Revenue Committee has beginning of a legislative concept provided by Division of State Lands (DSL), but no clear legal guidelines.

165

Sen. Carter

Asks how firm the tobacco settlement dollar projections are.

170

Warner

Explains revenue from Master Settlement Agreement.

190

Sen. Carter

Asks about payments to Oregon.

195

Warner

Describes payment schedule.

200

Sen. Carter

Inquires whether the receipts have matched projections.

205

Warner

Responds they have been very close.  Explains inflation adjustment.

220

Sen. Carter

Asks if these dollars will go down.

225

Warner

Responds.

230

Sen. Courtney

Asks about PERS savings.

235

Warner

Responds it is not a dollar amount but was part of the original proposal.

250

Sen. Yih

Inquires whether a task force is studying the issue.

255

Chair Harper

Advises it won’t impact this special session budget.

265

Sen. Yih

Asks if there is a chance of savings later if mortality tables changed.

270

Chair Harper

Responds it is not yet determined.  Opens the meeting for comment from the floor.

300

Chair Harper

Advises the committee may meet tomorrow afternoon.  Adjourns meeting at 11:15 a.m.

 

Submitted By,                        Reviewed By,

 

 

 

Patricia Nielsen,                        Marjorie Taylor,

Committee Assistant                        Administrator

 

EXHIBIT SUMMARY

 

A – HB 5091A, Gap calculation and House proposal, P. Warner, 2 pp

B – HB 5091A, budget report and measure summary, P. Warner, 29 pp