HOUSE SPECIAL SESSION COMMITTEE ON BUDGET
RESTORATION
5th Special Session
September 8, 2002 Hearing Room 343
5:00 P.M. Tapes
14 - 15
MEMBERS PRESENT: Rep. Ben Westlund, Chair
Rep. Alan Bates
Rep. Richard Devlin
Rep. Cedric Hayden
Rep. Betsy Johnson
Rep. Susan Morgan
Rep. Lane Shetterly
STAFF: Paul Warner, Administrator
Ken Rocco, Administrator
Gina Rumbaugh, Assistant
Larry
Niswender, Legislative Fiscal
Lizbeth Martin-Mahar,
Legislative Revenue
MEASURE/ISSUES HEARD: Introduction to Committee Measures
LC17 Public Hearing
*Bob Repine, Housing and Community
Services, (HCS)
LC 9095 Public Hearing
* Bob Cantine,
Association of Oregon Counties, (AOC)
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 14, A |
||
|
004 |
Chair Westlund |
Calls the meeting to
order. Opens work session to introduce Committee Measures |
|
INTRODUCTION OF COMMITTEE MEASURES |
||
|
023 |
Rep. Morgan |
MOTION: Moves that LC 17 be introduced as a committee bill. |
|
033 |
Rep. Devlin |
Clarifies that his vote is to introduce the measure and should not be
seen as either support or opposition. |
|
|
|
VOTE: 7-0 |
|
040 |
Chair Westlund |
Hearing no objection declares the motion CARRIED. |
|
045 |
Rep. Morgan |
MOTION: Moves that LC 9095 be introduced as a committee bill. |
|
050 |
Rep. Devlin |
Clarifies that his vote is to introduce the measure and should not be
seen as either support or opposition. |
|
|
|
VOTE 7-0 |
|
058 |
Chair Westlund |
Hearing no objections, declares the motion CARRIED. |
|
065 |
Chair Westlund |
Closes the work session introduction
of committee bills and opens a public hearing on LC 17. |
|
LC 17 PUBLIC HEARING |
||
|
70 |
Bob Repine |
Director, (HCS). Asks for
clarification on how much the proposed tax will raise. |
|
82 |
Lizbeth Martin Mahar |
LRO. Reviews the tax rates
outlined by LC 17:
Submits a table describing
the breakdown of distribution of income tax returns in 2002, page two, (EXHIBIT A). Anticipates the measure
will raise $277 million, most of which will be paid by those with taxable
incomes over $100,000. |
|
137 |
Rep. Shetterly |
Requests that when the
measure comes back in bill form, the committee be provided a table for 2003,
as the Oregon refundable tax credit will be effective January 1 2003. Expresses
interest in seeing how it plays with the adjustment in the rates. Comments on the preliminary staff measure
summary. (EXHIBIT B). Notes a possible
error in the table at the bottom that shows 9 percent for single filers,
which should actually be joint filers. |
|
150 |
Martin Mahar |
Agrees to make the change.
Says the measure imposes an overall tax increase of $175 on average for all
tax returns. Explains that the reduction in the federal tax would result in
an increase of $150 on average for all tax returns. |
|
175 |
Rep. Bates |
Asks what portion of the
$395 million derives from the 3 percent increase on the 7 percent bracket.
Asks staff to compute a corporate tax increase level that would give that
same amount. |
|
190 |
Rep. Devlin |
Requests clarification of
the term, total income. |
|
195 |
Martin Mahar |
Clarifies that the term total
income is the federal adjusted gross income and does not include the credits. |
|
220 |
Bob Repine |
Asks for an explanation
for the decline in the tax revenues collected in 2003-2005. Notes that the
measure collects $305 million in the first year and $192 million the second half
of the biennium. Asks if the $395 million is a larger number because it is
retroactive to January 2002 through July 2003. |
|
235 |
Martin Mahar |
Outlines the fee schedule
provided in the measure. |
|
265 |
Rep. Shetterly |
Asks if the 60/40 ratio is
due to higher withholding and estimated tax payments coming in during the
calendar year. |
|
271 |
Martin Mahar |
Confirms. |
|
275 |
Chair Westlund |
Closes the public hearing
on LC 17 and opens a public hearing on LC 9095. |
|
LC 9095 PUBLIC HEARING |
||
|
290 |
Larry Niswender |
States that LC 9095 is a
blank appropriation bill similar to those used in each of the sessions when
there is a transfer of funds, changes in limitations, or general fund
appropriations. |
|
310 |
Chair Westlund |
States that the work group
is working to come up with a targeted cut list with greater or lesser degrees
of success, as well as a general omnibus across the board allocation approach
to the reduction packages. |
|
369 |
Chair Westlund |
Mentions that some things
will be excluded from the allocation reductions, including anything that
involves debt service, capitol projects, mandated service levels, either by
the constitution or the courts, savings already received from delayed or
phase in of new programs, anything that would incur an almost certain threat
of legal action. States that the
process will go hard on the unspent funds included in budgets, fairly lightly
on the constitutional offices, and look delicately at anything that has
federal funds. |
|
430 |
Niswender |
Clarifies the process was
staff initiated during discussions of across- the-board cuts. States that
several issues came up in the administration of this. Reiterates that the
measure is a draft and a work in progress. |
|
470 |
Bob Cantine |
(AOC). Asks for a sense of
what flexibility there is on the across-the-board cuts. |
|
500 |
Chair Westlund |
Replies the cuts must be
made on a pro-rated basis, with the exception of the details listed earlier. |
|
TAPE 15, A |
||
|
058 |
Chair Westlund |
Closes the public hearing
on LC 9095. Recess the committee at the call of the chair. |
|
|
|
Meeting is adjourned by
implied consent |
Transcribed By, Reviewed By,
Annastasia Suess, Marjorie Taylor,
Committee Assistant Committee Administrator
EXHIBIT
SUMMARY