PUBLIC HEARING HB 3449, HJR 44, HB 2902, HB 2903, HB 2953,   

 

TAPE 118, 119, A-B

 

HOUSE REVENUE COMMITTEE

APRIL 10, 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 Elaine Hopson

                                                Representative Max Williams                                               

 

Members Excused:                      Representative Phil Barnhart

                                                Representative Mark Hass

 

Witness Present:                        Jim Scherzinger, Portland Public Schools

                                                Ozzie Rose, Oregon Confederation of School Administrators

                                                Matt Markee, Equity Steering Committee

                                                Greg Warnock, Oregon Veteran’s Association

                                                Walter Crews, Non Commissioned Officers Association of the USA

                                                            United Veterans Groups of Oregon

                                                Dennis Hooyman, Veteran

                                                Representative Mary Gallegos, District 29

                                                Paula Brown, Oregon Department of Veteran’s Affairs

                                                Representative Jeffrey Merkley, District 47

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Steve Meyer, Legislative Revenue Office

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 118, SIDE A

053

Chair Shetterly

Calls meeting to order at 8:35 a.m.

 

OPENED PUBLIC HEARING HB 3449

 

055

Chair Shetterly

Stated there were new -3 amendments (Exhibit 1) replacing HB 3449.

 

060

Steve Meyer

Discussed background of HB 3449 and -3 amendments.

 

093

Jim Scherzinger

Discussed Measure 50 debt repayment provisions, (Exhibit 2). Provided description of -3 amendments. 

 

200

 

Discussion regarding the effects of Measure 50 and history of gap bonds as a requirement of membership in the PERS system.  Discussed additional administrative debt.

 

262

Rep. Scott

What effect did restructuring do to the formula positively or negatively when it first occurred?

 

267

Scherzinger

At first, Measure 50 set permanent rate at roughly higher than other school districts; Portland’s contribution was equivalent to others. An exception was created for desegregation requirements on Portland Public Schools (PPS).  The purpose was to give more money to PPS which had a desegregation requirement that other schools did not have.  Legislation was passed with sunset date, PPS will allow sunset to die, allowing $8 million to go back to state school fund.

 

294

Scherzinger

Measure 50 did not give Portland more. Portland taxpayers had to repay gap bond.  Measure 50 did not create distortion; it was created when desegregation regulation was passed 2 years prior.

 

309

Ozzie Rose

Spoke in support of HB 3449, discussed PERS debt as a special situation.

 

350

Chair Shetterly

What about 750 to 15%.

 

354

 

 

380

Rose

Would support. Do not support the local option, unless it is set up so legislature levies it statewide.  This bill is not an answer to funding crisis.

 

Questions and discussion regarding discussion coming up in the Senate.

 

388

Matt Markee

Spoke in opposition to HB 3449.  Refinancing PERS is probably okay, if don’t raise more after 2 years.  Concern with the bill is increase in cap on local option.

 

412

Chair Shetterly

You are okay with permanent rate vs. PERS, the desegregation and the gap bonds.

 

415

Markee

Answered affirmatively.

 

417

Chair Shetterly

Issue is 750 and 15% on the local option.

 

420

 

 

 

 

 

 

450

Markee

 

 

 

 

 

 

Markee

It’s the biggest concern; represents mid-size districts concerned about the disparity in funding across state.  Concerned about local option caps and business taxes, disparities would start to grow again.  Discussed Senate Bills, mid-size school district doesn’t get additional money while helping special needs.  Looking to slow this bill down and look at as a package to see costs to districts rather than piece by piece.

 

Position of Equity Committee that every child has equal opportunity for education.

 

463

Chair Shetterly

Regarding mid-size schools, not sure how the transportation portion of the formula and high growth applies to raising the cap?

 

482

Markee

It probably doesn’t, but opposed to raising cap because of disparities it brings among districts.

 

490

Rep. Berger

How do you define mid-size district?

 

499

Markee

LaPine, Silverton, Woodburn, McMinnville, Newberg, Lincoln County, Central in Polk County, 5000-6000 students

 

 

TAPE 119, SIDE A

 

035

Rose

Discussed complexities; Silverton School District Superintendent is the chair of Oregon Confederation of School Administrators and authorized his earlier testimony.

 

046

Chair Shetterly

Technical work still necessary on -3 amendment?

 

050

Meyer

Answered affirmatively, discussed two other school districts with gap funding.

 

054

Scherzinger

True, it may make sense to have this apply to districts with higher rates. Other places where rates are high include Bend, and Sweet Home. Dollar amounts involved with both of those are small.

 

068

Chair Shetterly

Need -4 amendment, inclination to move the bill as it fixes bigger problems for Portland.  Will see the bill again as the Senate is interested in fixing caps.

 

082

Rep. Hopson

Glad Committee is going to put pieces together, eager to look at big picture.

 

094

Rep. Scott

Agreed with that approach.  Don’t want to do this in advance of other pieces.

 

100

Chair Shetterly

The only change in formula is to the good statewide, balance only affects Portland.  Changes begin with 2003-05 biennium.

 

128

Scherzinger

The only way Portland can get more money is if it uses local option authority and the voters approve it; no affect statewide. Refinancing can push things around to affect accrual.

 

139

Chair Shetterly

Closed Public Hearing on HB 3449.

 

 

OPENED PUBLIC HEARING ON HJR 44

 

142

Chair Shetterly

Closed Public Hearing on HJR 44.

 

 

OPENED PUBLIC HEARING ON HB 2902

 

142

Lizbeth Martin-Mahar

Provided description of HB 2902 (Exhibit 3).

 

178

Greg Warnock

Spoke in support of HB 2902. (Exhibit 4) Tax credit for residential care facilities for disabled veterans would help alleviate financial burden by providing incentive for care facilities to choose veterans over wealthier potential residents.

 

265

Walter Crews

Spoke in support of HB 2902.

 

261

Dennis Hooyman

Spoke in support of HB 2902, discussed personal experience with 82 year old naval veteran who committed suicide, needed additional care.

 

323

Rep. Verger

Reiterated difficulty veterans have in finding local residential health care.

 

347

Chair Shetterly

Did we look at this last session?

 

349

Warnock

No.

 

354

Chair Shetterly

Closed Public Hearing HB 2902

 

 

OPENED PUBLIC HEARING ON HB 2903

 

363

Martin-Mahar

Provided description of HB 2903 (Exhibit 5).

 

379

Warnock

Spoke in support of HB 2903 (Exhibit 6) as an additional $200 credit for military veterans who may be more likely to require long-term care at a younger age; cited dangerous and hostile work environment.

 

430

Crews

Spoke in support of HB 2903.

 

440

Hooyman

Spoke in support of HB 2903, discussed personal experience with petty officer, who spent most of his money on medication and insurance policies.

 

462

Chair Shetterly

Closed Public Hearing on HB 2903.

 

 

OPENED PUBLIC HEARING ON HB 2953

TAPE 118, SIDE B

 

038

Lizbeth

Provided background and description of HB 2953, (Exhibit 7).

 

060

 

Discussion regarding Oregon Tax Return form (Exhibit 8).

 

090

 

 

123

Rep. Gallegos

Spoke in support of HB 2953, (Exhibit 9) would like to see the Veteran’s check off on the front sheet of the tax return.

 

Discussion regarding Oregon Veterans Home appearance on the House floor.

 

126

Rep. Gallegos

Answered affirmatively.

 

130

Warnock

Spoke in support of HB 2953, (Exhibit 10).  Provided background on the Oregon’s Veteran’s Home, citing near depletion of existing funds.

 

170

Crews

Spoke in support of HB 2953.  Described history of the Oregon Veterans Home.

 

189

Hooyman

Spoke in support of HB 2953.  Relayed personal childhood experience with well-funded veteran’s home in Wisconsin. 

 

200

Paula Brown

Spoke in support of HB 2953.  Discussed Oregon Veterans Home which does not receive general fund dollars.

 

260

Chair

It took legislation to get the Veterans Home in the book because the home is not a 501C3 organization?  Received nods of affirmation from Rep. Merkley and representatives of the Revenue Department.

 

265

Brown

Answered affirmatively.  In order to be listed in the booklet, required to have 10,000 signatures.  There were over 14,000 signatures collected.

 

275

Chair Shetterly

Questions and discussion about preliminary 2002 contribution figures.

 

293

Chair Shetterly

Closed Public Hearing on HB 2953

 

 

 

 

REOPENED PUBLIC HEARING ON HJR 44

 

306

Martin-Mahar

Provides description of HJR 44.  Amends constitution.

 

287

Rep. Jeffrey Merkley

Spoke in support of HJR 44 as a way to contribute to conversation on tax expenditures and credits. This is an effort to put a handle on tax credits, or regularly review them.  This bill, requires each tax credit be reviewed when it sunsets, limited to 6 years or less. Another approach is similar to Individual Development Account tax credits which limits amounts disbursed.

 

361

Chair Shetterly

Having tax expenditure book has started to focus to issues regarding tax expenditures as corollary to appropriations in Ways and Means process.

 

374

Chair Shetterly

Closed Public Hearing on HJR 44.

 

 

 

387

Chair Shetterly

Meeting adjourned at 9:55 a.m.

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Chair Shetterly, “HB 3449-3 Amendment”, 12 pages.

2.       Scherzinger, “Portland Public Schools Summary of Financial Effect of Debt Restructuring HB 3449”, 1 page

3.       Martin-Mahar, “Staff Measure Summary HB 2902”, 1 page

4.       Warnock, “Testimony HB 2902”, 2 pages

5.       Martin-Mahar, “Staff Measure Summary HB 2903”, 1 page

6.       Warnock, “Testimony HB 2903”, 1 page

7.       Martin-Mahar, “Staff Measure Summary HB 2953”, 2 pages

8.       Phillips, “Oregon Individual Income Tax Return, Form 40”, 2 pages

9.       Rep. Gallegos, “Testimony HB 2953”, 2 pages

10.   Martin-Mahar, “Staff Measure Summary HJR 44”, 1 page