SENATE SPECIAL COMMITTEE ON BUDGET

 

 

June  26, 2002 Hearing Room E

9:30 AM Tapes  13 – 16

 

MEMBERS PRESENT:            Sen. Lenn Hannon, Chair

Sen. Peter Courtney

Sen. Avel Gordly

Sen. John Minnis

Sen. David Nelson

 

VISITING MEMBERS:            Sen. Kate Brown

 

STAFF PRESENT:                  Richard Yates, Legislative Revenue Office (LRO)

Paul Warner, LRO

Rick Olsen, Legislative Fiscal Office (LFO)

Ken Rocco, LFO

Larry Niswender, LFO

Steve Bender, LFO

Lizbeth Martin-Mahar, LRO

Patricia Nielsen, Administrative Support

 

MEASURE/ISSUES HEARD:            HB 4051 A – Public hearing and work session

HB 4052 B – Public hearing and work session

HB 4059 A – Public hearing and work session

HB 4055 A – Public hearing and work session

HB 5091 B – Public hearing and work session

Introduction of Committee bills (LC 63) – Work session

HB 4054 B – Public hearing and work session

HB 4056 A – 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 13, A

005

Chair Hannon

Calls the meeting to order at 10:21 a.m.  Advises he will hold public hearings on several bills, and then conduct work sessions as amendments are completed.

010

Chair Hannon

Opens public hearing on HB 4051A.

HB 4051A – PUBLIC HEARING

015

Richard Yates

LRO.  Presents overview of HB 4051A, which is the House cigarette tax increase.  Refers to staff measure summary and revenue impact statement (EXHIBITS A, B).

055

Chair Hannon

Asks about earliest election for referral to voters.

060

Yates

Responds and explains time frame for scheduling election.

065

Chair Hannon

Inquires whether there could be an amendment adopted for a special election in January 2003.

070

Yates

Advises it is planned with another bill.

075

Sen. Nelson

Asks about proposed cessation program.

078

Yates

Explains.

080

Sen. Minnis

Asks about program increase.

085

Yates

Explains the counties are held harmless.

088

Paul Warner

LRO.  Explains that the bonding section is in HB 4056, now being worked on by legislative counsel.

095

Mark Nelson

R. J. Reynolds Tobacco.  Testifies in opposition to cigarette tax.  Recommends using existing revenue for bond proposals.  Submits proposed -A13 and -A15 amendments dated 6-15-02 (EXHIBITS C, D).  Discusses options.

145

Sen. Nelson

Notes that indication from LRO is that it was not possible to use existing revenues.

150

M. Nelson

Discusses bond funding.

185

Richard Kosesan

Defers to Mr. Nelson’s testimony.

190

Scott Gallant

Oregon Medical Association (OMA).  Testifies in favor of bill and of tax on tobacco.  Asserts that the issue includes revenue sources and public health issue, because smoking significantly impacts costs to health care, especially Oregon Health Plan (OHP).  Testifies in opposition to -A15 amendments.  Recommends adopting a proposal to be voted on in November 2002.

230

Bruce Bishop

Oregon Association of Hospitals and Health Systems.  Testifies in support of tax increase and referral to voters.  Recommends using funds to restore programs in OHP.

240

Yates

Notes that HB 4051A has a sunset of 1-1-08 but the draft does not have sunset.

245

Sen. Nelson

Asks about a November election.

250

Chair Hannon

Advises the bill is structured to be voted on without referral.  If referred, a different bill sets up an election.

260

Gallant

Defers analysis until he reviews time frame.

270

Sen. Minnis

Asks about structure of bill and referral for special election in September.

275

Gallant

Expresses concern by OMA that voting in a special election means the public is not as engaged as in a general election.

295

Mark Bigger

Sen. Gary George’s office.  Discusses amendment regarding smoking cessation programs.  Expresses concern over DHS sponsorship of events of some local groups with smoking cessation program dollars.  Submits written testimony (EXHIBIT E).

360

Sen. Nelson

Asks whether amendment limiting funding to statewide programs would effectively stop misuse of funds.

370

Yates

Responds.

375

Sen. Minnis

Asks for input from smoking cessation program representatives.

390

Nancy Bennett

American Cancer Society.  Advocates use of tobacco tax funds for prevention programs, and tying tax to specific programs, such as OHP or youth smoking prevention programs.

430

John Valley

American Cancer Society.  Discusses allocation to Basic Rights Oregon.  Advises the Governor’s Tobacco Reduction Advisory Committee monitors progress of tobacco prevention education program.

TAPE 14, A

030

Sen. Minnis

Asks if the American Cancer Society is a beneficiary of the moneys.

032

Valley

Answers no.

035

Sen. Minnis

Inquires whether the program is audited.

038

Valley

Responds and describes audits done previously.

045

Bennett

Notes that Oregon has a leading program in the USA.

053

Sen. Minnis

Agrees the money should be used appropriately.

060

J. L. Wilson

National Federation of Independent Business (NFIB).  Testifies in opposition because it is a barrier to profitability for small business.

070

Sen. Gordly

Comments on use of tobacco cessation dollars by Basic Rights Oregon and asks that they be invited to present testimony.

080

Chair Hannon

Closes public hearing on HB 4051A.  Opens public hearing on HB 4052B. 

HB 4052B – PUBLIC HEARING

105

Warner

LRO.  Presents overview of bill, which implements HJR 80 and creates the Education Stability Fund.  Continues discussion of details.

120

Chair Hannon

Asks what amount is in HJR 80.

125

Warner

Responds the House version is $180 million, and the Senate version is $220 million.

130

Chair Hannon

Clarifies this plan would set that figure at $150 million.

132

Warner

Affirms.

140

Sen. Courtney

Asks about date in September.

147

Warner

Responds it is September 17.

151

Chair Hannon

Asks for testimony on HB 4052B.

160

Kate Richardson

State Treasurer’s office.  Testifies in favor.

170

Chair Hannon

Seeing no further request for testimony, closes public hearing on HB 4052B.  Opens public hearing on HB 4059A.

HB 4059A – PUBLIC HEARING

175

Warner

Presents overview of HB 4059A, which relates to election procedures.

205

Chair Hannon

Asks for testimony.  Seeing none, closes public hearing on HB 4059A.  Opens public hearing on HB 4055A.

HB 4055A – PUBLIC HEARING

228

Rick Olsen

LFO.  Presents overview of bill, which contains omnibus program changes.  Advises that amendments are in process and describes amendments.

250

Sen. Courtney

Asks whether the bill eliminates the management salary cost of living adjustment.

255

Olsen

Responds that is not included in the amendments to this bill.

260

Lisa Trussell

Associated Oregon Industries (AOI).  Expresses concern about taking money from the Supplemental Employment Department Administrative Fund (SEDAF) and transferring it to the General Fund.

275

Ozzie Rose

Confederation of Oregon School Administrators.  Has no objection to the proposed action in the bill, though opposes cuts in general.

300

Chair Hannon

Seeing no further testimony, closes public hearing on HB 4055A.  Opens public hearing on HB 5091B.

HB 5091B – PUBLIC HEARING

TAPE 13, B

005

Ken Rocco

LFO.  Presents overview of HB 5091B, omnibus disappropriations bill.  Submits written overview of HB 5091B (EXHIBITS F, G).

015

Chair Hannon

Invites testimony.  Seeing none, asks Mr. Rocco to review changes between House and Senate versions. 

020

Rocco

Discusses.

045

Gordon Fultz

Association of Oregon Counties (AOC).  Expresses concern over reduction to the Juvenile Crime Prevention grants to counties.

050

Rocco

Explains reduction.

055

Larry Niswender

LFO.  Discusses reduction.

063

Fultz

Responds and expresses concerns.

070

Paul Snider

AOC.  Explains impact on SB 1145 programs.  Submits written materials (EXHIBIT H).

090

Don Schellenberg

Oregon Farm Bureau Federation.  Testifies in opposition to reduction for Department of Agriculture budget and elimination of international marketers for agricultural products.

105

Chuck Craig

Oregon Department of Agriculture.  Testifies in opposition to cut to federal grant money.

110

Sen. Courtney

Asks if the agency prefers across-the-board cuts.

115

Craig

Explains the agency wants flexibility to cut elsewhere because this is a program funded by federal grant money and represents a solution to the current economic problems.

130

Rocco

Explains difference between earlier cut and this reduction.

140

Chair Hannon

Offers the Department flexibility to cut where it chooses.

155

Matt Blevins

Oregon Environmental Council.  Concern over timing of release of funds for the Pesticide Use Reporting System (PURS).  Requests $160,000 to last until the September Emergency Board meeting.

170

Rocco

Explains the House plan did make the $160,000 appropriation.

180

Grattan Kerans

Oregon University System (OUS).

185

Chair Hannon

Asks about impact of salary reduction package in an attempt to avoid tuition increases.

190

Sen. Courtney

Refers to Senate proposal (EXHIBIT G).

205

Rocco

Explains $25 million of $100 million would not be allocated to agencies, but other cuts would be reduced.

215

Steve Bender

LFO.  Explains allocation of $75 million for statewide salary compensation instead of $100 million.  This would have reduced OUS’s allocation by $5.5 million.  The proposed plan restores $2.3 million, so reduction is only $3.2 million.

230

Kerans

Responds the pro rata cut is acceptable to OUS.

235

Sen. Courtney

Asks about undergraduate tuition.

240

Kerans

Advises he will urge the State Board of Higher Education to absorb cuts in other ways than undergraduate resident tuition increases.

260

Sen. Courtney

Discusses tuition increases with various reduction packages.

290

Bender

Describes possible 2% increase above 3% currently scheduled.  Discusses other increases in response to House budget reductions.

310

Sen. Courtney

Comments on hardship to students due to tuition increases.

312

Kerans

Comments how the cuts will be addressed.  Advises this does not protect other classes of students from tuition increases.

340

Sen. Courtney

Discusses further.

350

Sen. Gordly

Asks for LFO to clarify SB 1145 impacts.

355

Niswender

Explains impact on community corrections removes half the available inflation above Corrections Department level.

370

Sen. Courtney

Asks about 2001 session impacts on SB 1145 program.

375

Niswender

Explains it was approximately $195 million in community corrections grants.

380

Sen. Courtney

Asks about legislature’s commitment to counties under SB 1145.

385

Sen. Minnis

Explains the structure leaves dollar amount flexible.

405

Niswender

Clarifies details of plan, formula and funding; which is still above the state’s responsibility level, including inflation.

TAPE 14, B

005

Sen. Courtney

Asks about changes during 2002 special sessions.

008

Niswender

Explains details of appropriation.

010

Sen. Courtney

Asks about laying off troopers from State Police.

020

Niswender

Discusses specific cuts, including layoffs which will trickle down to field staff.  Advises the Department has asked for flexibility to spread reduction among several categories of its general fund budget.

050

Sen. Minnis

Clarifies the positions are management positions, not patrol troopers.

070

Sen. Minnis

Asks about specific FTE authority.

073

Niswender

Explains 3.5 FTE specifically are targeted.

075

Chair Hannon

Asks if the Committee can direct Department to make reductions in specific areas.

080

Niswender

Responds the appropriation is at a Division level for line items.

085

Chair Hannon

Inquires whether positions are patrolmen.

090

Niswender

Advises there are bumping rights.

095

Sen. Minnis

Explains seniority rights.

100

Niswender

Continues clarification.

110

Bill Linden

Oregon Judges Association.  Testifies in opposition to elimination of salary increases for judges.  Submits written testimony (EXHIBIT I).

130

Chair Hannon

Discusses.

150

Sen. Minnis

Clarifies whether the provision delays or repeals the increase.

155

Rocco

Clarifies further the bill provides for eliminating the increase, and the next legislative assembly will decide whether to reinstate it.

175

Mary Botkin

American Federation of State, County and Municipal Employees (AFSCME).  Agrees that the committee should not give OSP authority for across-the-board cuts at its discretion.

220

Chair Hannon

Assures the legislature will be monitoring reductions.

240

Chair Hannon

Closes public hearing on HB 5091B.  Opens work session for introduction of committee bills.

INTRODUCTION OF COMMITTEE BILLS (LC 63) – WORK SESSION

245

Rocco

Presents overview of LC 63 (EXHIBIT J), which allows legislative approval of an annexation in Hood River and Wasco Counties for the Columbia Gorge Community College district.

255

Chair Hannon

Moves LC 63 be introduced as a committee bill.  Without objection, the motion is approved.

265

Chair Hannon

Recesses the committee at noon, to reconvene at 1:30 p.m.

270

Chair Hannon

Re-convenes meeting at 2:07 p.m.  Opens public hearing on HB 4054B.

HB 4054B – PUBLIC HEARING

275

Lizbeth Martin-Mahar

LRO.  Presents overview of HB 4054B, which phases in effectiveness of Measure 88, the federal income tax deduction.  Presents -B13 amendments dated 6-26-02 (EXHIBIT K).  Refers to staff measure summary, revenue impact statement, and graph of revenue change (EXHIBITS L, M, N).

330

Joe Schweinhart

AOI.  Testifies in opposition because the voters have spoken and this represents an economic stimulus.

350

J. L. Wilson

Returns and testifies in opposition.  Suggests this is one of only a few tools available to reverse reduction of tax base.

360

Chair Hannon

Asks if his association would support the disconnect instead.

365

Schweinhart

Responds both are needed and it is not a trade-off.

370

Chair Hannon

Discusses securitization of the reserve fund in SAIF.

372

Wilson

Disagrees because the private sector is paying and has led the way in experiencing the recession.

390

Schweinhart

Responds further the economy is still sluggish and needs to grow.

TAPE 15, A

005

Ralph Groener

AFSCME.  Differs from AOI and NFIB and testifies in support.  Discusses possible measures to stimulate the economy and fund K-12 and service programs.  Disagrees with giving personal income taxes to citizens to stimulate economy.

085

Chair Hannon

Closes public hearing on HB 4054B.

087

Sen. Gordly

Submits letter for the record from Basic Rights Oregon (EXHIBIT O).

095

Chair Hannon

Recess the committee at 2:22 p.m.  Reconvenes the meeting at 2:30 p.m.  Opens Work session 4054B.

HB 4054B – WORK SESSION

100

Warner

LFO.  Reviews bill and proposed -B13 amendments dated 6-26-02 (EXHIBIT K).

115

Sen. Minnis

MOTION:  Moves to ADOPT HB 4054B-13 amendments dated 6/26/02.

120

Chair Hannon

Over the objections of Sen. Gordly and Sen. Courtney, the motion CARRIES.

125

Chair Hannon

Closes work session on HB 4054B.  Opens public hearing and work session on HB 4056A.

HB 4056A – PUBLIC HEARING

135

Yates

LRO.  Presents overview of bill and proposed -A4 amendments dated 6-26-02 (EXHIBIT P) which replace A-engrossed bill and provide for bonds backed by cigarette tax revenues.

155

Chair Hannon

Confirms subject of bill and details.

160

Sen. Courtney

Asks if this is a separate piece of legislation from the cigarette tax.

165

Yates

Confirms and explains these moneys go into the State School Fund consistent with the relating clause.

175

Sen. Courtney

Asks Sen. Minnis if this requires 16 votes, where revenue source bill requires 18 votes.

180

Sen. Minnis

Confirms.

185

Sen. Courtney

Asks whether the cigarette tax bill needs language to make sure the two match.

190

Sen. Minnis

Suggests adding language to cigarette tax bill making it contingent on passage of this bill.

195

Sen. Courtney

Asks to make sure the cigarette tax can be used to pay for the bond.

200

Sen. Minnis

Requests input from Treasurer’s office.

205

Yates

Clarifies the revenue pledged is from all cigarette taxes under current chapter.

210

Sen. Minnis

Clarifies not tied only to the revenue from a tax increase.

215

Sen. Courtney

Confirms whether the entire tax will support this bonding authority.

225

Yates

Responds yes.

227

Kate Richardson

Treasurer’s office.  Returns to suggest change in language of -A4 amendments to say not less than six years instead of five years.  Adds clarification regarding existing and additional cigarette tax, that the bill is pledging current and any subsequent tax to back the bonds.

250

Gallant

Returns to testify and raise concerns over obligating all tobacco tax funds as collateral for future deficits, because it would be a major policy change for use of tobacco tax funds.

270

Yates

Disagrees and explains.

290

Harrison Conley

Legislative Counsel Office.  Points out language asking the Treasurer to look at revenue forecasts for this biennium only.  Explains bonds once issued remain a contract but the only “deficit” to be considered is the 2001-03 biennium.

310

Yates

Points out another reference to limitation for issuing bonds during the current biennium only.

315

Gallant

Suggests this is still a policy change, and it is borrowing from estimated revenues.

325

Sen. Minnis

Responds.

335

Chair Hannon

Closes public hearing on HB 4056A.  Opens work session on HB 4056A.

HB 4056A – WORK SESSION

340

Sen. Minnis

MOTION: Moves to ADOPT HB 4056A-A4 amendments dated 6-26-02, with the amendment on page 5 line 12 after the word “than” eliminating the word “five” and inserting the work “six” as suggested by the State Treasurer’s office.

360

Chair Hannon

Without objection the motion CARRIES.

EXCUSED: 1 - Sen. Nelson.

370

Chair Hannon

Closes work session on HB 4056A.  Recesses the committee at 2:55 p.m.

373

Chair Hannon

Reconvenes committee at 3:00 p.m.  Opens work session HB 4051A.

HB 4051A – WORK SESSION

380

Yates

Presents overview of HB 4051A-A20 and -A21 amendments dated 6-26-01 (EXHIBITS Q, R).  Discusses details of amendments.

TAPE 16, A

005

Yates

Continues discussing HB 4051A-A20 amendments.

040

Sen. Courtney

Clarifies the bill will generate $80 million for the current biennium, and $220 million during the 2003-05 biennium.

045

Yates

Responds.

050

Chair Hannon

MOTION:  Moves to ADOPT HB 4051A-A21 amendments dated 6/26/02. Without objection the motion CARRIES.

EXCUSED: 1 - Sen. Nelson

060

Sen. Courtney

Raises question of version of amendments adopted.

065

Chair Hannon

Reconvenes work session.

066

Sen. Courtney

MOTION: Moves to RECONSIDER MOTION by which HB 4051A-21 amendments were adopted.

070

Chair Hannon

Without objection, the motion CARRIES.

EXCUSED: 1 - Sen. Nelson

075

Yates

Discusses.

085

Chair Hannon

Discusses reconsideration OF HB 4051 with -A21.

095

Sen. Minnis

MOTION: Moves to RESCIND ADOPTION of HB 4051A-21 amendments.

100

Chair Hannon

Without objection, the motion CARRIES.

EXCUSED: 1 - Sen. Nelson.

105

Yates

Discusses HB 4051-A21 amendments, and clarifies differences.  Points out reference on page 5, line 10, section 8, subsection 2, which does not exist in -A20 amendments.  Explains Sen. Nelson’s amendment restricting use of funds for programs paid for by local governments.

115

Sen. Courtney

MOTION:  Moves to ADOPT HB 4051A-21 amendments dated 6/26/02.

120

Sen. Gordly

Asks why there is different language in the two amendments.

125

Yates

Reviews issue raised by Sen. George’s staff today.  Reads budget note given to Health Division during the 2001 session.

145

Chair Hannon

Without objection the motion CARRIES.

EXCUSED: 1 - Sen. Nelson

150

Chair Hannon

Closes work session on HB 4051A.  Recess at 3:15 p.m.

155

Chair Hannon

Reconvenes the committee at 3:25 p.m.  Opens work session on HB 4055A.

HB 4055A – WORK SESSION

160

Olsen

LFO.  Introduces HB 4055A-A7 amendments dated 6-26-02 (EXHIBIT S).

170

Chair Hannon

MOTION:  Moves to ADOPT HB 4055A-7 amendments dated 6/26/02.  Without objection the motion CARRIES.

EXCUSED: 1 - Sen. Nelson

175

Chair Hannon

Closes work session on HB 4055A.  Recesses the meeting at 3:28 p.m.

190

Chair Hannon

Reconvenes meeting at 4:00 p.m.  Reopens work session on HB 4052B.

HB 4052B – WORK SESSION

195

Warner

Presents overview of HB 4052B, which contains implementing language for HJR 80.  Reviews HB 4052B -B3 amendment dated 6-26-02 (EXHIBIT T).

210

Sen. Minnis

Explains.

230

Sen. Minnis

MOTION:  Moves to ADOPT HB 4052B-B3 amendments dated 6/26/02.  Without objection the motion is CARRIES.

EXCUSED: 1 - Sen. Nelson

235

Chair Hannon

Closes work session on HB 4052B.  Recesses the committee at 4:04 p.m.

240

Chair Hannon

Reconvenes meeting at 4:33 p.m.  Recesses the committee until 7:30 p.m.

243

Chair Hannon

Reconvenes meeting at 7:30 p.m.  Opens work session on HB 4059A.


 

HB 4059A – WORK SESSION

245

Adrienne Sexton

LFO.  Presents overview of HB 4059A, which sets a special election in September 2002.  Presents -A3 amendments dated 6-26-02 (EXHIBIT U).  Discusses details of amendments.

265

Chair Hannon

MOTION:  Moves to ADOPT HB 4059A-A3 amendments dated 6-26-02.  Without objection the motion CARRIES.

275

Chair Hannon

MOTION:  Moves HB 4059A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  5-0

285

Chair Hannon

Hearing no objection, declares the motion CARRIED.  SEN. HANNON will lead discussion on the floor.

290

Chair Hannon

Closes work session on HB 4059A.  Reopens work session on HB 4051A.

HB 4051A – WORK SESSION

301

Chair Hannon

Notes that Sen. Nelson’s amendments were adopted earlier and asks him to answer questions.

315

Sen. Nelson

Explains intent of the amendments would be to direct moneys to statewide tobacco cessation programs rather than special interest groups for political purposes.

335

Sen. Gordly

Asks about purpose of amendment.

337

Sen. Nelson

Remarks there was some concern that this money was being used at the local level, not in a coordinated statewide effort.

345

Sen. Gordly

Asks whether by doing this, any federal funds are jeopardized.

350

Warner

Responds none.

355

Yates

Clarifies Mental Health had no objection to the bill and amendments; and assumes they considered federal fund implications.

360

Sen. Nelson

MOTION:  Moves HB 4051A to the floor with a DO PASS AS AMENDED recommendation.

365

 

VOTE:  5-0

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

SEN. NELSON will lead discussion on the floor.

370

Chair Hannon

Closes work session on HB 4051A.  Reopens work session on HB 4052B.

HB 4052B – WORK SESSION

375

Warner

Reviews bill, which is the implementing bill for HJR 80.

380

Chair Hannon

Recesses committee at 7:45 p.m.

390

Chair Hannon

Reconvenes committee at 9:00 p.m.

TAPE 15, B

010

Chair Hannon

MOTION:  Moves HB 4052B to the floor with a DO PASS AS AMENDED recommendation.

015

 

VOTE:  4-0

EXCUSED:  1 - Sen. Nelson

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

SEN. COURTNEY will lead discussion on the floor.

020

Chair Hannon

Closes work session on HB 4052B.  Reopens work session on HB 4054B.

HB 4054B – WORK SESSION

030

Sen. Minnis

MOTION:  Moves to TABLE HB 4054B.

035

 

VOTE:  4-0

EXCUSED:  1 - Sen. Nelson

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

040

Chair Hannon

Closes work session on HB 4054B.  Reopens work session on HB 4056A.

HB 4056A – WORK SESSION

045

Warner

Reviews HB 4056A, which authorizes the Treasurer to issue bonds backed by future tobacco revenue.

050

Sen. Minnis

MOTION:  Moves HB 4056A to the floor with a DO PASS AS AMENDED recommendation.

055

 

VOTE:  5-0

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

SEN. MINNIS will lead discussion on the floor.

060

Chair Hannon

Closes work session on HB 4056A. Reopens work session on HB 4055A.

HB 4055A – WORK SESSION

065

Chair Hannon

Advises need to adopt a conceptual amendment to remove $19 million of unemployment SEDAF funds from the bill.

070

Olsen

Recommends deleting sections 4 and 10 from the -A7 amendments dated 6-26-02.

075

Chair Hannon

MOTION: Sen. Hannon moves to amend the -A7 amendments to 4055A by deleting section 4 on page 2, beginning on line 22 and ending on line 24; and deleting section 10 on page 4, beginning on line 14 and ending on line 19.

VOTE:  5-0

Hearing no objection, declares the motion CARRIED.

080

Chair Hannon

MOTION:  Moves HB 4055A to the floor with a DO PASS AS AMENDED recommendation.

085

 

VOTE:  5-0

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

SEN. HANNON will lead discussion on the floor.

090

Chair Hannon

Closes work session on HB 4055A.  Opens work session on HB 5091B.

HB 5091B – WORK SESSION

100

Rocco

Reviews updated list of selective program reductions (EXHIBIT V).  Describes updates reflected in the HB 5091B-B7 amendments dated 6-26-02 (EXHIBIT W).

 

 

Discussion of whether conceptual amendment is needed to reflect removal of SEDAF funds from the reduction list.

160

Sen. Courtney

Asks whether the budget is balanced with this bill.

165

Chair Hannon

Responds it is not balanced after removal of $19 million SEDAF reduction.

180

Sen. Minnis

Assumes $20 million ending balance.

195

Rocco

Clarifies it was originally $26 million, but after removing the $19 million there is a $7 million ending balance.

205

Chair Hannon

Submits proposed budget note for HB 5091B (EXHIBIT X).  Refers to budget note in SB 5527 (2001) regarding copays, which was found to conflict with federal regulations. 

Recalls Grattan Kerans, OUS, to answer questions regarding possible tuition increases.

235

Kerans

Submits written testimony describing impact of budget cuts on higher education tuition (EXHIBIT Y).

280

Sen. Minnis

Questions Kerans about prior cuts.

305

Kerans

Responds and explains.

330

Chair Hannon

Moves to approve the proposed budget note on HB 5091B.

VOTE: Hearing no objections, the budget note is APPROVED.

335

Sen. Minnis

MOTION:  Moves to ADOPT HB 5091B-B7 amendments dated 6/26/02.

340

Chair Hannon

Hearing no objection, declares the motion CARRIED.

350

Sen. Minnis

MOTION:  Moves HB 5091B to the floor with a DO PASS AS AMENDED recommendation.

355

 

VOTE:  5-0

 

Chair Hannon

Hearing no objection, declares the motion CARRIED.

SEN. HANNON will lead discussion on the floor.

360

Chair Hannon

Recesses committee until 9:30 p.m.

 

 

NOTE:  The committee did not reconvene and was adjourned by the adjournment of the Senate at the end of the session day.

 

Submitted By,                        Reviewed By,

 

 

 

Patricia Nielsen,                        Marjorie Taylor,

Committee Assistant                        Administrator


 

EXHIBIT SUMMARY

 

A – HB 4051A, measure summary, staff, 1 pp

B – HB 4051A, revenue impact statement, staff, 1 pp

C – HB 4051A, -A13 amendments dated 6-15-02, M. Nelson, 1 p

D – HB 4051A, -A15 amendments dated 6-15-02, M. Nelson, 1 p

E – HB 4051A, written testimony, M. Bigger/Sen. George, 8 pp

F – HB 5091B, proposed selective program reductions, staff, 4 pp

G – HB 5091B, Senate proposal, staff, 1 p

H – HB 5091B, written testimony, P. Snider, 5 pp

I – HB 5091B, written testimony, B. Linden, 2 pp

J – LC 63, staff, 1 p

K – HB 4054B, -B13 amendments dated 6-26-02, staff, 9 pp

L – HB 4054-B13, staff measure summary, staff, 1 pp

M – HB 4054-B13, revenue impact statement, staff, 1 p

N – HB 4054-B13, revenue change graph, staff, 1 p

O – HB 4051A, written testimony, R. Thorpe, 1 p

P – HB 4056A, -A4 amendments dated 6-26-02, staff, 10 pp

Q – HB 4051A, -A20 amendments dated 6-26-02, staff, 6 pp

R – HB 4051A, -A21 amendments dated 6-26-02, staff, 6 pp

S – HB 4055A, -A7 amendments dated 6-26-02, staff, 7 pp

T – HB 4052B, -B3 amendments dated 6-26-02, staff, 1 p

U – HB 4059A, -A3 amendments dated 6-26-02, staff, 6 pp

V – HB 5091B, proposed selective program reductions (updated), staff, 4 pp

W – HB 5091B, -B7 amendments dated 6-26-02, staff, 28 pp

X – HB 5091B, proposed budget note, Sen. Hannon, 1 p

Y – HB 5091B, written testimony, G. Kerans, 1 p