HOUSE SPECIAL SESSION COMMITTEE ON BUDGET RESTORATION

 

5th Special Session

 

 

September 12, 2002   Hearing Room 343

11:45 a.m.  Tapes 25 - 26

 

MEMBERS PRESENT:            Rep. Ben Westlund, Chair

                                                Rep. Alan Bates

Rep. Richard Devlin

Rep. Cedric Hayden

Rep. Betsy Johnson

Rep. Susan Morgan

Rep. Lane Shetterly

 

VISTING MEMBER:                 Speaker Mark Simmons

 

STAFF:                                   Paul Warner, Administrator

Linda K. Gatto, Assistant

 

 

MEASURES HEARD:                     HB 4076A - Public Hearing and Work Session

                                                HB 4073 - Work Session

                                                HB 4074A - Work Session

Introduction of Committee Bills

HB 5100 -  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 25, A

003

Chair Westlund

Calls the meeting to order at 12:10 and opens the public hearing on        HB 4076A.

HB 4076A – PUBLIC HEARING

019

Paul Warner

Administrator. Explains the HB 4076A-13 (EXHIBIT A) amendments change the rate adjustments that were proposed in HB 4076. Line three deletes the 9.6 percent and replaces it with 9.5 percent. States that Section 11 submits the proposal to a special election.

051

Chair Westlund

Inquires if there is any public testimony, (none received). Closes the public hearing on HB 4076A and opens the work session on              HB 4076A.

HB 4076A – WORK SESSION

052

Rep. Shetterly

Proposes a conceptual amendment in Section 11, HB 4076A-13 amendments, lines nine and ten, page three, states that he prefers to delete the remainder of the sentence after “throughout this state”, and insert on December 10 or December 17.

065

Rep. Morgan

Asks what the date would be if Section 11 is left blank.

073

Rep. Shetterly

Responds that the date would need to be determined when HB 4075 is adopted.

087

Chair Westlund

Recesses the committee momentarily.

108

Rep. Shetterly

Explains that lines four and five establish this as a two year tax but discussions have been about three years. Proposes to delete lines four and five, page three.

129

Rep. Shetterly

MOTION: Moves to CONCEPTUALLY AMEND HB 4076A-13 amendments by deleting lines four and five, page three.

 

 

VOTE: 7-2

AYE: Bates, Devlin, Johnson, Morgan, Shetterly

NAY: Hayden, Westlund

136

Chair Westlund

The motion CARRIES.

137

Rep. Shetterly

MOTION: Moves that HB 4076A-13 be CONCEPTUALLY AMENDED by deleting the language beginning with “as provided” through the end of the sentence and insert “on December 10, 2002”

148

Rep. Bates

Notes the pros and cons of the December 10 date. Explains that before the first of the year it will be difficult to pass at the polls. Expresses that more time is required, at least until February 10 and they also need time to talk to the caucus.

176

Chair Westlund

Acknowledges his concerns. Expresses that in regard to the question of campaign, either the voter is willing to receive the message or not.

Adds that in regard to the vote in caucus, and speaking for himself he would entertain that motion if the vote count is there.

203

Rep. Shetterly

Notes for the record that December has been the date discussed over the last few days. Adds that as a matter of practicality, it is a tax question affecting tax year 2002 and it makes sense to get the question answered in 2002.

228

Rep. Hayden

Comments that the case can be made in this timeframe, it is cleaner to keep the 2002 tax question in 2002.

245

Rep. Devlin

Comments on the disagreement of whether an increase is needed or not, and whether it should be by enactment or referral. Notes the December forecast will be public approximately 11 days before the December election date.

300

Chair Westlund

Notes the effort expended on both sides and the dedication of Speaker Simmons.

337

Rep. Morgan

Proposes that the process be moved along.

344

Rep. Bates

Concurs, wants more discussion.

358

 

Representative Devlin, Bates, and Johnson are courtesy votes.

360

Chair Westlund

VOTE: 7-0

The motion CARRIES.

365

Rep. Shetterly

MOTION: Moves HB 4076A as CONCEPTUALLY AMENDED to the floor with a DO PASS recommendation.

388

Chair Westlund

States for the record that Representatives Morgan, Westlund, and Bates are courtesy yes votes and Rep. Hayden is no vote.

 

 

VOTE: 6-1

AYE: Westlund, Bates, Devlin, Johnson, Morgan, Shetterly

NAY: Hayden

391

Chair Westlund

The motion CARRIES.

394

Speaker Simmons

States for the record that there have been considerable discussions regarding the election dates. States that the support for this will evaporate if the referral is moved to next year, and this bill is an opportunity to ask the people of Oregon if a tax increase is appropriate at this time.

383

Chair Westlund

Recesses the committee to the call of the chair.

417

Chair Westlund

Reconvenes the meeting at 4:29 p.m. and opens a work session on      HB 4073.

HB 4073 – WORK SESSION

420

Dick Yates

Legislative Revenue Office. Notes that there have been a number of amendments which have been rolled into HB 4073-9 (EXHIBIT B) amendments and essentially replaces the bill. Explains the changes.

TAPE 26, A

028

Rep. Shetterly

Asks if this is a ten year term.

031

Yates

Responds that the expected payout is approximately the year 2012 or 2013 and the maximum maturity date is the year 2015 or 2016.

052

Rep. Devlin

Asks how long the commitment for the OHSU reserve is.

062

Yates

Responds that they are 20 year bonds.

068

Chair Westlund

Invites witnesses from the Oregon State Treasury.

070

Kate Richardson

Oregon State Treasury.  Reviews the HB 4073–9 amendments.

081

Chuck Smith

Oregon State Treasury. States that the interest rate is estimated at 4.86 percent or maybe 4.76 percent in today’s current market.

101

Richardson

States that the Treasury is disappointed in the defeat of the tax bill on the floor. States he is concerned that this does not address the structural deficiencies in the next session.

101

Chair Westlund

Explains that this is not the committee’s first choice.

106

Rep. Bates

Asks if there is a figure for the actual cost in interest.

108

Smith

Answers that the estimate is 4.86 percent.

112

Rep. Bates

Requests the amount in dollars.

120

Smith

Answers it will be approximately $60.6 million a year and includes principal and interest payments.

121

Rep. Bates

States he would like to see what the interest payment is.

125

Yates

Responds it is approximately $124 million.

130

Rep. Bates

States for the record that they will probably ask the governor to veto this package.

140

Rep. Shetterly

MOTION:  Moves that HB 4073-9 amendments BE ADOPTED.

142

 

VOTE:  6-1

AYE:               6 - Devlin, Hayden, Johnson, Morgan, Shetterly, Westlund

NAY:               1 – Bates

148

Chair Westlund

The motion CARRIES.

149

Rep. Shetterly

MOTION:  Moves HB 4073 AS AMENDED to the floor with a DO PASS recommendation.

150

 

VOTE:  6-1

AYE:               6 - Devlin, Hayden, Johnson, Morgan, Shetterly, Westlund

NAY:               1 – Bates

167

Chair Westlund

The motion CARRIES.

REP. WESTLUND will lead discussion on the floor.

168

Chair Westlund

Closes the work session on HB 4073 and recesses the committee at 4:42 p.m.

172

Chair Westlund

Reconvenes the meeting at 5:30 p.m. and opens a work session on    HB 4074A.

HB 4074A - WORK SESSION

169

Dallas Weyand

Legislative Fiscal Office. Provides an overview of HB 4074-A3 (EXHIBIT C) and HB 4074A-4 (EXHIBIT D) amendments. Explains that HB 4073 essentially eliminates the reduction of the cap on the distribution of lottery funds to county fairs.

198

Chair Westlund

Explains that this bill was referred back to committee.

199

Weyand

Provides an overview of HB4074-A4 amendments. Explains that HB 4074-A4 amendments direct the Department of Human Services to distribute $1.2 million in equal proportions to safety net clinics that are not federally qualified health centers.

207

Rep. Johnson

Asks in reference to HB 4074-A3 amendments, as a rhetorical question, why are county fairs being re-funded when other, examples, clean water and clean sewer, and cuts in the police force are not being refunded.

251

Rep. Morgan

MOTION: Moves HB 4074A-3 and HB 4074A-4 amendments BE ADOPTED.

267

Rep. Johnson

Vote explanation.

270

Rep. Bates

Vote explanation.

 

 

VOTE: 5-2

YEA: Westlund, Devlin, Hayden, Morgan, Shetterly

NAY: Johnson, Bates

272

Chair Westlund

The motion CARRIES.

275

Rep. Morgan

MOTION: Moves HB 4074 AS AMENDED to the floor with a DO PASS recommendation.

278

Chair Westlund

VOTE: 5-2

YEA: Westlund, Devlin, Hayden, Morgan, Shetterly

NAY: Johnson, Bates

The motion CARRIES.

REP. HAYDEN will lead discussion on the floor.

289

Chair Westlund

Closes the work session on HB 4074 and recesses the committee at 5:37 p.m.  Reconvenes at 5:44 p.m. and opens the work session on introduction of committee bills.

INTRODUCTION OF COMMITTEE BILLS

305

Chair Westlund

MOTION: Moves LC 25 BE INTRODUCED as a committee bill. (EXHIBIT E)

307

Chair Westlund

Hearing no objection, declares the motion CARRIED.

308

Chair Westlund

Closes the work session on bill introduction and opens a work session on HB 5100.

HB 5100 - WORK SESSION

352

Chair Westlund

Recess for approximately one minute.

323

Ken Rocco

Legislative Fiscal Office.  Reviews HB 5100-5 amendments, (EXHIBIT F). Explains that HB 5100 is the disapprobation bill that will be used in this session budget rebalancing plan. Reviews the section.

352

Rep. Johnson

Clarifies that he is reviewing Section 2, page 19 and asks if this is the salary adjustments that were added back in as a result of actions taken in Special Session 3.

361

Rocco

Refers to the selective cut list, (EXHIBIT G) and notes the changes.  Refers to the description by agency list, (EXHIBIT H).  

TAPE 25, B

002

Rep. Johnson

Refers to (EXHIBIT H) and asks why there is a specific amount of MUPL money reduced in the preceding table.

009

Rocco

Answers that (EXHIBIT H) is General Fund only, MUPL money is not included.

011

Rep. Shetterly

Expresses concern that the across the board reductions are from the Special Session 3 remaining General Fund balance and does not take into account the cut that the Judicial branch already took.

025

Chair Westlund

Appreciates Rep. Shetterly’s statement. Comments that the Judicial Branch has already taken the largest percentage of General Fund reductions.

044

Rep. Bates

Asks if there is another $40 million in across-the-board-cuts in this bill.

052

Rocco

Responds affirmatively. States there is approximately $47 million in targeted cuts and $40 million in additional across-the-board-cuts, not including K-12

054

Rep. Bates

Asks how much federal match money will be lost in DHS and other programs if the $40 million across-the-board-cuts are carried out.

057

Rocco

Responds the DHS total cut would be approximately $16 million.

061

John Britton

Legislative Fiscal Office. Notes that it will depend how DHS’s share of the $40 million is implemented. Explains if they are taken from primarily General Funds only, the percentage will be less, but the specifics are unknown.

080

Rep. Bates

Comments on the lack of availability of the details. Expresses concern about what is optimal to fund and what is not.

083

Rep. Devlin

Asks where in the bill is the controlling language for the $40 million in across-the-board-cuts.

085

Rocco

Responds that the bill does not state $40 million in across-the-board-cuts. This is the end result of the disapprobation’s.

090

Rep. Johnson

Asks if the changes marked in grey are different from the agreements that the reduction committee made.

104

Rocco

Answers affirmatively, only what was changed has been marked in grey.

118

Rep. Morgan

MOTION: Moves HB 5100–5 amendments BE ADOPTED.

 

 

States for the record that Rep. Johnson is a courtesy vote.

 

 

VOTE: 7-1

YEA:  Westlund, Bates, Hayden, Johnson, Morgan, Shetterly

NAY: Devlin

127

Chair Westlund

The motion CARRIES.

130

Rep. Morgan

MOTION: Moves HB 5100 AS AMENDED to the floor with a DO PASS recommendation.

133

Chair Westlund

Hearing no objection, the motion CARRIES.

137

Chair Westlund

Closes the work session on HB 5100 and recesses the committee at 6:00 p.m. to the call of the chair.

142

Chair Westlund

Reconvenes and adjourns the meeting at 8:15 p.m.

 

 

Submitted By,                        Reviewed By,

 

 

 

Linda K. Gatto,                        Marjorie Taylor,

Committee Assistant                        Administrator

 

 

EXHIBIT SUMMARY

A . HB 4076A-13 amendments dated 9/11/02, staff, 3 pp.

B.  HB 4073-9 amendments dated 9/12/02, staff, 19 pp.

C.  HB 4074A-3 amendments dated 9/12/02, staff, 1 p

D.  HB 4074A-4 amendments dated 9/12/02, staff, 1 p

E.  LC 25 dated 9/12/02, staff, 5 pp.

F.  HB 5100-5 amendments dated 9/12/02, staff 21 pp.

G. Proposed Special Session 5 Selective Program Reductions, staff, 5 pp.

H. 2001 – 2003 Across-the-Board Reductions With No K-12 Pro-Rate, staff, 3 pp.