INFORMATIONAL MEETING

TAPE 15-16, A-B

HOUSE REVENUE COMMITTEE

JANUARY 24, 2003 8:30 AM STATE CAPITOL BUILDING

Members Present: Representative Lane 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

Senator Ryan Deckert

Members Excused: Max Williams

Invited Witness Present: Jim Scherzinger, Superintendent and Chief, Portland Public Schools

Jerry Wilson, Superintendent, Hermiston School District

Eric Blackledge, President, Blackledge Furniture

Staff Present: Paul Warner, Legislative Revenue Office

Kathy Tooley, Committee Assistant

TAPE 15, SIDE A

004

Chair Shetterly

Calls meeting to order at 8:58 a.m. Informational meeting regarding Revenue Options, School Funding and Accountability Task Force Report. Members of Citizen’s Advisory Committee Jim Scherzinger, Gerry Wilson and Eric Blackledge appeared before the Committee.

031	Paul Warner	The Task Force had major input in the key findings, the recommendations and other suggestions.
042 155	Jim Scherzinger Scherzinger	Testified regarding achievement and cost accountability. (Exhibit 1). Told the Committee that it is the measurement that is the issue, not the goal that “All Kids Achieve”. Cautioned the Committee, if measurement is eliminated, then districts cannot be held accountable. If the goal is to save money, then the goal of “All Kids Achieve” must be dropped. A problem occurs with the federal mandate “All Kids Will Achieve”, which requires measurement and provides for consequences. If the goal is accepted, the issue is what is the appropriate measurement? He said CIM has weaknesses, but better measurements cost more money. Testified that state mandates should be reviewed to see if they are aligned with the goal “All Kids Achieve.” Secondly, if there is not enough money, how are state mandates prioritized.
250	Scherzinger	Presented information on Portland Public School System; “State of Portland Public Schools”, (Exhibit 2). Questions and discussion interspersed.
361	Scherzinger	Testified that when making cuts, two points the Committee should look at are Special Ed and ESL employment are mandated. Questions and discussion interspersed.

TAPE 16, SIDE A

090 097	Chair Shetterly Chair Shetterly	For the record, Jim Scherzinger until 1997 was the Legislative Revenue Officer. On Page 3 of the Tax Force Recommendations, (Page 3, “School Accountability and Cost Management, #5, Exhibit 1) What are the practicalities of aligning the state budget process.
110	Scherzinger	Answers that planning is difficult, due to uncertainty of state budget and having to develop an annual budget. Problem is schools have to act before final decisions are made and then having to redo when final decisions are made. Historically, Revenue Office has discussed changing the Legislative Schedule, and the fiscal year of the state to accommodate term limits and budgets processes of school districts.
165 246	Jerry Wilson Wilson	Testified regarding The “Task Force Recommendations”, (Page 3, Exhibit 1), regarding accountability and cost management and urged that revenues required be provided. He stated the issues of equity, adequacy and the local option must be continually reviewed. Stated the Quality Education Model is the best benchmark in determining district needs. Encouraged legislative restraint on new mandates and that new mandates be costed out before being passed on to school districts. Questions and discussion interspersed.

TAPE 15 – SIDE B

099	Scherzinger	One way to save money is to prioritize which education areas are more important. A second way is to align mandates to goal “All Kids Achieve”, and the savings may be in recordkeeping. Third, have actual common systems for reporting and the transfer of information between districts may be more efficient.
105	Wilson	Hermiston has begun working with an electronic records system, to get away from the cumbersome folder system with favorable results. Questions and discussion interspersed.
112	Chair Shetterly	Need to look at the entire environment with the Federal “No Child Left Behind Act, aligning the standards with the goals and the mandates. Doesn’t the implementation of the Federal Act invite us to do all of that in this session?
132	Scherzinger	Important to note that the “No Child Left Behind Act” is an accountability system, but the standards are set by the state. Need greater flexibility to use different strategies with each child, which makes it difficult to use a uniform curriculum to get to the goal “All Kids Achieve”. Questions and discussion interspersed.

TAPE 16 – SIDE B

007	Eric Blackledge Blackledge	Presentation of “Strategic Tax Revenue Options for Oregon” (Exhibit 3). Presented five analysis factors in considering revenue options: economic effects, short-term economic cycle stability, long-term revenue sustainability, long-term revenue and expense proportionality. Made two recommendations, (Page 5, Exhibit 3) build a budget reserve fund, enact a statewide real property tax for educational improvement.
332	Chair Shetterly	Meeting adjourned at 10:45 a.m.

Tape Log Submitted by,

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

Exhibit Summary:

1. Revenue Options, School Funding and Accountability Task Force, 24 pages.

2. Scherzinger, “Number of Employees, Portland Public Schools, January 24, 2003, 1 page.

3. Blackledge, “Strategic Tax Revenue Options for Oregon”, 7 pages.