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Work
Session HB 2625, HJR 18, HB 2664 |
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TAPE 124,
125, A |
APRIL 15,
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
Witness Present: John Phillips, Oregon Department of
Revenue
Inge
Deckert, Oregon State Treasury
Chuck
Smith, Oregon State Treasury
Brian
Reeder, Oregon Department of Education
Michael
Parker, Oregon State Treasury
Staff Present: Paul
Warner, Legislative Revenue Officer
Steve
Meyer, Legislative Revenue Office
Lizbeth
Martin-Mahar, Legislative Revenue Office
Mazen
Malik, Legislative Revenue Office
Kathy
Tooley, Committee Assistant
TAPE 124, SIDE A
|
004 |
Chair Shetterly |
Calls meeting to order at 8:35 a.m. |
OPENED WORK SESSION HB 2625
|
020 |
John Phillips |
Discussed follow up to questions regarding cargo containers from April
8, 2003 Public Meeting on HB 2625 (Exhibit 1). |
|
038 |
Chair Shetterly |
This bill reinstates an exemption that was on the books since 1970’s? |
|
040 |
Phillips |
1979. |
|
051 |
Rep. Scott |
MOTION: MOVED HB 2625 TO THE
HOUSE FLOOR WITH A DO PASS RECOMMENDATION ROLL CALL: MOTION PASSED 7-0-2 REPRESENTATIVES VOTING AYE:
Berger, Farr, Hass, Hopson, Scott, Verger, Chair Shetterly. EXCUSED:
Barnhart, Williams. Rep. Berger will carry the bill. |
|
059 |
Chair Shetterly |
Closed Work Session on HB 2625. |
OPENED PUBLIC HEARING ON HJR 18
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069 |
Steve Meyer |
Described and provided background on HJR 18 (Exhibit 4). Discussed provision for submission to
voters for May 2004 primary election.
Discussed -1 and -2 amendments (Exhibit 6). |
|
093 |
Inge Deckert |
Discussed -2 amendment to HJR 18 and HB 2663 (Exhibit 7), and summary
of the amendments (Exhibit 8). |
|
163 |
Chair Shetterly |
HJR 18 is just authorization; it doesn’t create debt or issue any
bonds? |
|
164 |
Deckert |
Answered affirmatively. |
|
172 |
Rep. Hass |
Why is it a good idea to take away the function of creating the school
capital matching fund away from the rainy day fund? That was one of the selling points of the original plan. |
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178 |
Chair Shetterly |
The concern with HJR 18 is if approved it would have a capital
matching fund under HJR 18, and a second within the Education Stability Fund
serving the same purpose, but not the same funds. By putting this together it merges funds into one, and can be coordinated.
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193 |
Rep. Hass |
That makes sense, why not eliminate that fund? |
|
198 |
Chair Shetterly |
Under the Education Stability Fund? |
|
199 |
Rep. Hass |
Answered affirmatively. |
|
201 |
Chair Shetterly |
That gets into more fundamental amendments to the stability funds. |
|
204 |
Rep. Hass |
It is finding something else to do with that money after it reaches
the cap, so it doesn’t become redundant? |
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206 |
Chair Shetterly |
It is still going to serve the same purpose as is currently provided
in the stability fund. |
|
210 |
Deckert |
The amendments leave in tact the original intent of the creation of the
sub account within stability fund. It
consolidates two programs into one. |
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216 |
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Questions and discussion regarding process by which matching funds
are expended. |
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262 |
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Question and discussion regarding debt service on general obligation
(GO) bonds for capital improvements. |
|
290 |
Chair Shetterly |
There is general fund and lottery what other sources are used to pay
back GO bonds. |
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294 |
Chuck Smith |
Oregon Health Science University GO bonds will be paid out of Tobacco
Revenues. |
|
299 |
Rep. Hass |
If this measure gets out and passes before school district trigger
hits, before the stability fund gets to the 5% cap what happens to money
after that? |
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308 |
Deckkert |
18% of net lottery proceeds flow into rainy day fund, 15% into the
school capital matching fund. Without
bill there is no mechanism to use funds. |
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316 |
Chair Shetterly |
Until implementing legislation. |
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318 |
Brian Reeder |
Regarding Rep. Verger’s question “How will the department decide who
gets the money?” Currently HB 2663
leaves that up to the department and the State Board of Education in rule
making process. The bill does not
specify criteria for making the grants.
Discussed methods that could be used.
Discussed State of Washington approach looks at district need based on
assessed value per student. |
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372 |
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Questions and discussion regarding current and historical
responsibility for capital projects local vs. state. |
TAPE 125, SIDE A
|
028 |
Chair Shetterly |
Discussion as to intended Committee action on HJR 18 and HB 2663,
plan to rescind subsequent referral to Ways and Means on HJR 18; and
deferring action on HB 2663 for a later session. |
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053 |
Rep. Hass |
At issue in last session was a sliding formula that is not in HB 2663.
Is the intention to set it up in rules? How will formula work? |
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050 |
Reeder |
The bill states that the State Board will establish rules for
administering the program. Have not had
discussion on criteria for a match. |
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063 |
Chair Shetterly |
Discussed three tiers, HJR 18 constitutional authority; HB 2663
implementing legislation; the third tier is rule making authority for the
department. This session, focus is on
constitutional authority for a fund and se how voters respond. Next legislature
will address implementation and rule making in one piece. Don’t want to complicate Department of
Education budget with referral to Ways and Means. |
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091 |
Chair Shetterly |
Closed work session on HJR 18. |
OPENED WORK SESSION ON HB 2664
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099 |
Lizbeth Martin-Mahar |
Provided description and background of HB 2664-2 (Exhibit 9). Discussed -2 amendment as replacing -1
(Exhibit 10). Described revenue
impact, (Exhibit 11). |
|
145 |
Michael Parker |
Biggest change is in the roll-forward tax deduction, capping at 5
year period per contribution, reduces revenue impact. |
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151 |
Chair Shetterly |
So, if donated $10,000 in one year, the carry-forward would be
limited to $2000 per year no matter how much was put in. |
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155 |
Parker |
Answered affirmatively. |
|
145 |
Rep. Hass |
Spoke in supports of HB 2664, however, as this program gets
complicated with carry forward provisions, and requirement for tax
assistance, may be catering to level of income earner that misses middle
class people that do not have that level of sophistication. Intent is to provide a program for getting
kids to college. |
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183 |
Parker |
The Treasurer shares that concern. Plan easy to participate in with $25
minimum monthly investment. Push of
next biennium is to have investor education, a 24-hour call center, so don’t
need an accountant to participate. |
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217 |
Shetterly |
Discussed positive personal experience as consumer of program with
Strong as administrator of the program and information available on internet,
by phone and by mail. |
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212 |
Parker |
Strong has won awards for customer service and it is staffed 24
hours, 7 days a week. |
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240 |
Rep. Williams |
MOTION: MOVED ADOPTION OF THE
–2 AMENDMENTS INTO HB 2664. ORDER: HEARING NO OBJECTION,
THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT. |
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246 |
Rep. Williams |
MOTION: MOVE TO RESCIND
REFERRAL TO WAYS AND MEANS COMMITTEE AND MOVE HB 2664 AS AMENDED TO THE HOUSE
FLOOR WITH A DO PASS RECOMMENDATION. |
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255 |
Rep. Barnhart |
Some people put $4000-5000 into the program and only get a $2000
deduction, why would anybody do that? |
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260 |
Parker |
Discussed calculators for parents of older childrem and $2000 would
be insufficient to get child to college.
People figure out how much to invest per year and put that in. |
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270 |
Chair Shetterly |
All earnings are tax free; the deduction is only for $2000. |
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272 |
Parker |
All earnings are state and federal tax free. |
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277 |
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ROLL CALL: MOTION PASSED 9-0-0 REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair
Shetterly. Rep. Hass will carry the
bill. |
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286 |
Chair Shetterly |
Closed work session on HB 2664. |
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288 |
Chair Shetterly |
Meeting adjourned at 9:25 a.m. |
Tape Log Submitted by,
Kathy Tooley, Committee
Assistant Reviewed by Kim Taylor James
Exhibit Summary:
1.
Phillips,
“Memo: HB 2625: Cargo Container
Questions from Public Hearing on 4-8-03”, 2 pages
2.
Malik,
“Staff Measure Summary HB 2625”, 1 page
3.
Malik,
“Revenue Impact HB 2625”, 1 page
4.
Meyer,
“Staff Measure Summary HJR 18-1”, 1 page
5.
Olsen,
“Fiscal Analysis HJR 18”, 1 page
6.
Meyer,
“-2 Amendment HJR 18”, 7 pages
7.
Deckert,
“HB 2663-2 Amendment”, 3 pages
8.
Deckert,
Summary “Amendments to HJR 18 and HB 2663”, 1 page
9.
Martin-Mahar,
“Staff Summary HB 2664-2”, 1 page
10.
Martin-Mahar,
“HB 2664-2 Amendment”, 2 pages
11.
Martin-Mahar,
“Revenue Impact HB 2664-2”, 1 page
12.
Parker,
“Testimony HB 2664-2”, 1 page