2003 House Revenue Committee Minutes

ORIENTATION MEETING

BILL INTRODUCTION: LC 1437

TAPE 1-2, A

HOUSE REVENUE COMMITTEE

JANUARY 15, 2003 8:30 AM STATE CAPITOL BUILDING

Members Present: Representative Lane Chair Shetterly, Chair

Representative Wayne Scott, Vice Chair

Representative Joanne Verger, Vice Chair

Representative Phil Barnhart

Representative Vicki Berger

Representative Pat Farr

Representative Mark Hass

Representative Elaine Hopson

Representative Max Williams

Staff Present: Paul Warner, Legislative Revenue Officer

Kim Taylor James, Office Manager

Carol Phillips, Committee Assistant

Kathy Tooley, Committee Assistant

TAPE 1, SIDE A

007

Chair Lane Shetterly

Calls meeting to order at 8:30 a.m. Meeting to adopt committee rules, discuss work plan and introduce a committee bill.

ORGANIZATIONAL MEETING

028	Paul Warner	Discussion of weekly planner “Planning Calendar for Committee Members and Staff” (Exhibit 1).
031	Chair Shetterly	Introduces Committee Rules “House Committee on Revenue Proposed Rules” (Exhibit 2)
045	Warner	Discusses general committee decision making. Rule #15 new this year, “Oregon Tax Incidence Model” used to trace economic feedback affects from major tax proposals; show distribution of the final burden of tax changes in comparison with current estimate of burden distribution. This model is used for increases/decreases of $10 million or more. Gives chair discretion in determination if model would provide valuable insight.
067	Rep. Williams	MOTION: MOVES ADOPTION OF COMMITTEE RULES.
068	Chair Shetterly	ORDER: THERE BEING NO OBJECTION, CHAIR SHETTERLY SO ORDERS: 9-0-0. ALL MEMBERS PRESENT. Discussion of “House Revenue Committee Work Plan” (Exhibit 3).
070	Warner	Identifies major issues for Committee to follow up to work of Interim Committee on Revenue Options Task Force. “Revenue Policy and Economic Development”; “Reaction to Recent and Possible Future Federal Tax Legislation”, “Local Revenue Options for Schools” Questions and discussion interspersed.
136	Warner	Continued review of issues before Committee, “Targeted Revenue Increases” and “Groundwork for Tax Restructure” as additional issues for policy discussion.
185	Chair Shetterly	Requested Warner give a review of other subject areas.
186 334	Warner Warner	Identified additional subjects for review within property tax, personal income tax, corporate income tax, school finance, other revenue issues and general finance issues. Questions and discussion interspersed. The Chair has directed the Legislative Revenue Officer (LRO) to review revenue forecasting process. This will be complete in next two weeks with recommendations on improving the process. The State Economist will appear before the committee to discuss how forecasting is done. Revenue forecasts are released before the House Revenue Committee on March 1 and May 15. It is this forecast that will be used as the legislature approves the budget.
362	Chair Shetterly	Additional issues to add to work plan are investment tax credits and the issue of tax expenditures.
371	Rep. Hass	Asked how Committee will address long term options from Vic Atiyeh’s Council? (Revenue Options, School Funding and Accountability Advisory Council, Former Governor Victor Atiyeh, Chair.)
393	Chair Shetterly	Responds that specific recommendations such as expanding local option may be reviewed by this Committee.
406	Warner	Added that the Atiyeh Council Report* will be delivered to Members by Friday, January 24, and that The Advisory Committee* will testify before the Committee.
413	Chair Shetterly	Discussed Committee’s role upon receipt of report.
423	Rep. Verger	Question regarding the school distribution formula, was there a discussion on declining enrollment in this committee in the last session?
425	Warner	Answered declining enrollment is a major issue and distribution formula was a major issue in the Senate Revenue Committee.
443	Chair Shetterly	Asks if action is required to adopt work plan officially.
446	Warner	Responds no, document can be updated at the Committee’s direction and finalized.
450	Chair Shetterly	Requested that any changes to the work plan be given to Warner who will return it to the Committee in final form next week.

TAPE 2, SIDE A

Chair Shetterly

Requested Warner discuss the handouts regarding the LRO, planning calendars and bill files.

Warner

Warner presented the “Legislative Revenue Office”, (Exhibit 4), which explains the role of the LRO staff.

Discussion interspersed.

Presented “2003 Oregon Public Finance: Basic Facts”, (Exhibit 5), this reference document will be the basis for future revenue discussions.

112

135

150

162

Chair Shetterly

Referenced “Committee Member’s Planning Calendar and Bill Files” (Exhibit 6) as administrative tool for the Committee.

Discussion interspersed.

MOTION:

CHAIR MOVED INTRODUCTION OF LC1437 (Exhibit 7) as a Committee bill.

ORDER:

THERE BEING NO OBJECTION, CHAIR SHETTERLY SO ORDERS. ALL MEMBERS PRESENT.

Chair adjourned the meeting at 9:09 a.m.

Tape Log Submitted by,

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

Exhibit Summary:

1. Warner, House Committee Revenue Planning Calendar for Committee Members and Staff, 1 page

2. Warner, House Committee on Revenue Proposed Rules, 2 pages

3. Warner, Organizational, Draft House Revenue Committee Work Plan 2003 Session, 3 pages

4. Warner, Legislative Revenue Office, 2 pages

5. Warner, 2003 Oregon Public Finance: Basic Facts, 71 pages

6. Chair Shetterly, Committee Member’s Planning Calendars and Bill Files, 1 page

7. Chair Shetterly, LC 1437 Draft, 47 pages