PUBLIC HEARING ON HB 3129,

HJR 43, HB 3377, HB 3399

WORK SESSION 3050

 

TAPE 107, 108, A-B

 

HOUSE REVENUE COMMITTEE

APRIL 3, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Wayne Scott, Vice Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams                                               

 

Members Excused:                      Representative Phil Barnhart

                                                Representative Vicki Berger

 

Witness Present:                        Representative Randy Miller, District 37

                                                Joe Ledger, Associated Oregon Industries (AOI)

                                                Joe Schweinhart, AOI

                                                Representative Jeff Merkley, District 47

                                                Senator Steve Harper, District 28

                                                Peter Hainley, Community and Shetter Assistance Corp

                                                John McCulley, Apple, Pear and Cherry Growers of

                                                            Hood River, Wasco, Umatilla and Jackson Counties

                                                Baltazar Ortiz, Hacienda Community Development Corporation

                                                Larry Perry, Oregon Common Cause

                                                Jack Kenny, Oregon Housing and Community Services

                                                Mike Grainey, Oregon Office of Energy

                                                Jeff Bissonnette, Citizen’s Utility Board of Oregon

                                                Libby Henry, Eugene Water and Electric Board

                                                Robin Freeman, Oregon People’s Utility District Association

                                                Bob Costagna, Oregon Catholic Conference

                                                Mary Mann, Goose Hollow Window Company, Inc, Metro Family Housing

                                                            Council, Oregon Apartment Association, Oregon Remodelers

                                                            Association, National Association of Remodeling Industry

                                                Matt Blevins, Oregon Environmental Council

                                                Craig Smith, Chemeketa Community College, Willamette University

                                                Bob Barber, Central Oregon Community College

                                                Stephen Kridelbaugh, Southwestern Oregon Community College

                                                Richard Levine, Rogue Community College

                                                Cam Preis Braley, Commission on Community Colleges

 

 

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Steve Meyer Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 107, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 8:40 a.m.

 

OPENED PUBLIC HEARING ON HB 3129

 

010

Lizbeth Martin-Mahar

Provided background and described HB 3129 (Exhibit 1); discussed sunset; revenue impact (Exhibit 2); charitable contribution credit, (Exhibit 3).

 

074

Rep. Randy Miller

Spoke in support of HB 3129.  The bill is designed to empower Oregonians to give up to $100 to charities of their choice, instead of being limited to special interests that were able to get into the tax code.

 

156

Rep. Miller

Discussed removing political and cultural trust credit.

 

181

Chair Shetterly

There is an addition to Oregon income if a federal deduction is claimed for the same contribution. 

 

Questions and discussion regarding contributions over the credit.

 

198

Ledger

Spoke in opposition to HB 3129, regarding pollution control credit.  This is one of the few credits left that is designed to keep industries here. 

 

260

Joe Schweinhart

Spoke in opposition to HB 3129, (Exhibit 4).  Discussed advantages of business energy tax credit.

 

308

Chair Shetterly

Recessed Public Hearing on HB 3129

 

OPENED PUBLIC HEARING ON HJR 43

 

325

Steve Meyer

Provided background and described HJR 43.

 

343

Chair Shetterly

We’ve just been handed the -1 amendment that appears to replace the bill.

 

350

 

 

 

 

Rep. Jeff Merkley

 

 

 

Spoke in support of HJR 43 (Exhibit 5), described education brief and basic concept of the bill, to provide for an index of 2001-2002 and fund Oregon schools at an inflation adjusted per student minimum floor in an effort to provide education stability.

 

 

TAPE 107, SIDE A

 

051

 

 

 

061

Rep. Merkley

 

 

 

Rep. Merkley

Discussed need for study on what worked or didn’t work with Proposition 98 in California and elsewhere; what triggers make sense or don’t make sense; and the vote it should take to lower the minimum.

 

Discussed State School Funding per ADMr (Page 5, Exhibit 5).

 

071

Sen. Steve Harper

Spoke in support of HJR 43 and -1 amendment, (Exhibit 6) as necessary for stable school funding to allow superintendents certainty in knowing what the floor would be, with a possible add back list.  This floor coupled with a local option can become a package concept that should be considered.

 

113

Rep. Hass

What about the shrinking pie of human services, community colleges and higher education?

 

115

Rep. Merkley

This looks down the road, goes to the voters next year and would not be in place until 2005-2006.  Need to be aggressive on the education front.

 

130

Sen. Harper

See this bill as floor, and the savings account will fill in the gaps in disaster years.

 

Questions and discussion regarding local option and punting approval back to voters.

 

257

Rep. Hopson

In regards to the quality education model.  How can we be sure the floor is not seen as ceiling?

 

268

Sen. Harper

There is no guarantee based on the economy.  This is a good first step.

 

286

Chair Shetterly

This provides element of stability, if take this route.

 

275

Sen. Harper

School financing is another discussion.  This is the first tier of building block.  Allows communities to put out school budget year after year with some certainty.

 

300

 

 

 

 

 

340

Chair Shetterly

Using the stability fund as gap filler would take an amendment. Looking at the -1, the floor is general fund when combined with local revenue is equal to prior year adjusted formula.  Does not take into account use of the stability fund which is money other than general fund.  There are years fund might dip and the stability fund needs to be gap filler.

 

Questions and discussion regarding measure of school attendance.  Discussed reasoning for preference on ADMr and for utilizing an index based on a particular year was for crisp measure.

 

355

Chair Shetterly

If this was enacted 5 years ago, what would that general fund obligation be for 2002-2003 school year?  Would like to see those numbers.

 

360

Merckley

One of the factors is an estimate of increase in student population and inflation over a two year figures.

 

373

Chair Shetterly

Recess Public Hearing on HJR 43

 

REOPENED PUBLIC HEARING ON HB 3129

 

388

Peter Hainley

 

Spoke in opposition to HB 3129, (Exhibit 7) regarding the elimination of farm worker tax credits, cited additional administrative burden the bill would provide.  Provided CASA of Oregon Status Report, (Exhibit 8).

 

 

TAPE 106, SIDE B

 

042

John McCulley

Spoke in opposition to HB 3129.  Reiterated comments made by Hainley.  Important tax credit to growers who provide a significant amount of farm worker housing.

 

061

Balthazar Ortiz

Spoke in opposition to HB 3129, (Exhibit 9).  Discussed benefits of stable farmer worker housing based on personal experience; cited disruption to families when families have to live in separate quarters.  Adequate housing provides dignity and family base of support.

 

108

Larry Perry

Spoke in opposition to HB 3129, (Exhibit 10) as it affects the repeal of the political tax credit.  The one tax credit that relates to the process of governing and democratic decision making.

 

135

Jack Kenny

Spoke in opposition to HB 3129, (Exhibit 11) as it relates to the farm worker housing credit.  Reiterated points made by Hainley, McCulley, and Ortiz.

 

220

Mike Grainey

Spoke in opposition to HB 3129, as it pertains to the business energy tax credit.  Reiterated comments made by Schweinhart.  Discussed energy tax credits (Exhibit 12), and 2001 legislation to enhance it in response to the energy crunch, (Exhibit 13).

 

274

Jeff Bissoneth

Spoke in opposition to HB 3129, reiterated comments by the Office of Energy and others who have cautioned the Committee about ending the energy tax credit.

 

315

Libby Henry

Spoke in opposition to HB 3129, as it pertains to the energy tax credit, (Exhibit 14).

 

345

Robin Freeman

Spoke in opposition to HB 3129, as it pertains to the energy tax credit.

 

395

Bob Castagna

Spoke in opposition to HB 3129, as it relates to the elimination of farm worker housing construction and loans.  The credit accomplishes a worthy social goal.

 

403

Mary Mann

Spoke in opposition to HB 3129, as it pertains to the energy tax credit.

 

470

Matt Blevins

Spoke in opposition to HB 3129, (Exhibit 17), one of the few times OEC and AOI agree.  Oppose losing business energy tax credit.  The credit is an example of a tax credit that does good things.

 

485

Chair Shetterly

Closed Public Hearing on HB 3129.

 

498

Chair Shetterly

Closed Public Hearing on HJR 43, will defer further testimony for today.

 

WORK SESSION HB 3050

TAPE 107, SIDE B

 

046

Chair Shetterly

For the record, Tom Gallagher on behalf of the Newspaper Publishers’ Association who previously testified as undecided, is now not opposed to the bill and there is no opposition on the bill.

 

050

Rep. Williams

MOTION:  MOVED HB 3050 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

ROLL CALL:  MOTION PASSED 6-0-3

REPRESENTATIVES VOTING AYE:  Hass, Hopson, Scott, Verger, Williams, Chair Shetterly.  EXCUSED:  Barnhart, Berger, Farr.

 

Rep. Verger will carry the bill.

 

055

Chair Shetterly

REQUESTED UNANIMOUS CONSENT TO TEMPORARILY RETURN TO WORK SESSION ON HB 3050 FOR THE PURPOSE OF ALLOWING REP. FARR TO VOTE.

 

ORDER:  HEARING NO OBJECTION SO ORDERED. (ALL MEMBERS PRESENT EXCEPT REPS. BARNHART AND BERGER, EXCUSED)

 

REPRESENTATIVE FARR HOW DO YOU VOTE ON HB 3050.

 

061

Rep. Farr

Aye.

 

 

 

FINAL VOTE:  MOTION PASSED 7-0-2.

REPRESENTATIVES VOTING AYE:  Farr, Hass, Hopson, Scott, Verger, Williams, Chair Shetterly.  EXCUSED:  Barnhart, Berger.

 

 

 

 

OPENED PUBLIC HEARING ON HB 3377 AND HB 3399

 

 

 

066

Meyer

Provided background on HB 3377 and HB 3399.

 

063

Craig Smith

Spoke in support of HB 3399, even though it would require further reductions to their budget, Chemeketa Community College Board also voted unanimously in favor of the bill.   If don’t support this bill is there a public policy reason for the disparity in funding per student per community?  Taxes are input for the public good, do not receive services based on taxes paid, but based on public policy.

 

120

Pres. Barber

Spoke in opposition to HB 3399.   No statutory support for moving 100% of property tax into the formula; it circumvents ORS 341 which speaks to local control.  There is no statute or policy defining, promoting or requiring the shift from local control.

 

162

 

 

 

 

 

 

 

 

238

Stephen

Kreidelbaugh

 

 

 

 

 

 

 

Kreidelbaugh

Spoke in favor of HB 3377, (Exhibit 18), provides more stable base for community college operation; removes dependence on the FTE as the largest funding element.  Discussed huge sense of frustration amongst community college boards and presidents, about what is going on in system.  Frustration revolves around issue of stability.  Welcomes state’s intrusion in funding formula, would encourage significant representation from intelligent, well-meaning and thoughtful Oregonians to look at how system should be funded.

 

Spoke in opposition to HB 3399. for same reasons supported HB 3377 citing issues of stability and local control.

 

250

Richard Levine

Spoke in opposition to HB 3399, and in favor HB 3377.  Discussed tuition differential and local option.

 

323

Cam Preis Braly

There is wide disagreement on any funding formula.  Reminded the Committee that there is a Committee of Presidents and the State Board that is working on a new formula for the future, suspending the current formula.  See these bills as hindrances to forming the perfect formula.

 

350

Chair Shetterly

Inclination to use work group for legislative input.

 

376

Chair Shetterly

Closed Public Hearing on HB 3377 and HB 3399.

 

379

Chair Shetterly

Meeting adjourned at 10:28 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Martin-Mahar, “Staff Measure Summary HB 3129”, 1 page

2.       Martin-Mahar, “Revenue Impact HB 3129”, 2 pages

3.       Martin-Mahar, “Income Tax Federal Deductions”, 17 pages

4.       Schweinhart, “Testimony HB 3129”, 2 pages

5.       Rep. Merkley, “Education Funding HJR 43”, 9 pages

6.       Sen. Harper, “HJR 43 -1 Amendment”, 2 pages

7.       Hainley, “Testimony HB 3129”, 11 pages

8.       Hainley, “CASA of Oregon, Status Report, Spring 2003”, 2 pages

9.       Ortiz, “Testimony HB 3129”, 1 page

10.   Perry, “Testimony HB 3129”, 4 pages

11.   Kenny, “Testimony HB 3129”, 1 page

12.   Grainey, “State Efforts to Increase and Stabilize Energy Supply”, 2 pages

13.   Grainey, “Testimony HB 3129”, 6 pages

14.   Henry, “Testimony HB 3129”, 3 pages

15.   Freeman, “Testimony HB 3129”, 6 pages

16.   Mann, “Testimony HB 3129”, 3 pages

17.    Blevins, “Testimony HB 3129”, 1 page

18.   Kridelbaugh, “Testimony HB 3377”, 2 pages

19.   Snoddy, “Written Testimony HB 3129, 1 page

20.   Donovan, “Written Testimony HB 3129”, 1 page

21.   Taylor, “Written Testimony HJR 43”, 1 page

22.   Malik, “Written Staff Measure Summary HB 3050”, 1 page

23.   Carreon, “Written Testimony HB 3377 and HB 3399