PUBLIC HEARING AND WORK SESSION

 SB 292, SB 807-A  

 

TAPE 155, , A-B

 

HOUSE REVENUE COMMITTEE

MAY 5, 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

 

Members Excused:                      Representative Max Williams

 

Witness Present:                        John Marshall, Oregon School Boards Association

                                                Cindy Robert, Confederated Tribes of the Umatilla Reservation

                                                Jim Craven, American Electronics Association

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Steve Meyer, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 155, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 9:05 a.m.

 

 

012

 

 

028

Lizbeth Martin-Mahar

 

 

Martin-Mahar

Provided background and described SB 292, (Exhibit 1); discussed extension of credit and sunset dates.

 

Discussed revenue impact of $100,000 for 2004-05; $200,000 2005-07 biennia (Exhibit 2).

 

033

Chair Shetterly

That’s assuming high utilization?

 

032

Martin-Mahar

Answered affirmatively.

 

043

Chair Shetterly

Recessed Public Hearing on SB 292

 

OPENED PUBLIC HEARING ON SB 807-A

 

044

Steve Meyer

Provided background and described SB 807A, (Exhibit 3). Discussed Revenue Impact of SB 807A.

 

064

Chair Shetterly

What is federal impact aid?

 

065

Steve Meyer

It is federal dollars that go to school districts that are impacted primarily by military bases or Indian reservations.

 

066

Chair Shetterly

In Oregon it is limited to Indian reservations because there are no military bases?

 

067

Steve Meyer

The Warm Springs Confederation would be impacted.

 

074

Chair Shetterly

Cited no opposition to the bill in the Senate, any testimony in the Senate?

 

075

Steve Meyer

Described testimony received in the Senate.

 

083

John Marshall

Because it affected school districts and ability to issue bonds, met with Warm Springs Tribe representatives and discussed pooled bonding programs available.  Madras School District contains Warm Springs Reservation; described elementary school where the reservation owns the land, the school district owns and operates the school. The building is in need of repair and the school district does not have any money. Issue is the school district is reluctant to get bond measure because it only benefits students on the reservation.

 

105

Marshall

Described federal impact aid received by the school for the reservation and possibility of using the aid with other sources of revenue to create a revenue stream to issue bonds.

 

124

Chair Shetterly

Need state statutory authorization to use federal money as a revenue stream for bonds?

 

126

Marshall

No. Schools have broad authority to issue bonds or notes to improve school buildings.  The issue is the tribe wants to show the school board and community the tribe’s interest in allowing federal funds, combined with other revenues, to improve the school.

 

138

Cindy Robert

This is not necessary, but allows Indians to show support of the school districts.  It is a way for tribes to help localities come up with funding.

 

156

Chair Shetterly

Closed Public Hearing on SB 807-A.

 

 

OPENED WORK SESSION ON SB 807-A

 

160

Rep. Verger

MOTION:  MOVED SB 807-A TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

162

Rep. Verger

Expressed minor concern the bill might obligate the state to get involved in the impact aid discussion at the federal level.

 

170

Rep. Scott

Expressed concern regarding the last statement on revenue impact “The amount of any impact aid used to repay bond would not be available for school operating costs”.

 

177

Chair Shetterly

Money from federal government because an Indian school is within a district, where money can only be used for operation of that Indian school?

 

182

Meyer

Impact aid not dedicated to the particular school, but to the district.

 

184

Chair Shetterly

It’s a dedication of the revenue stream to back the bonds?

 

185

Meyer

Answered affirmatively.  If it is currently being used for operation purposes, they would no longer be available for that.

 

187

Chair Shetterly

That’s a local school district risk that they are taking, it would not affect the state obligation to that district.

 

191

 

Discussion about potential impact due to instability of funds.

 

200

 

ROLL CALL:  MOTION PASSED 8-0-1

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

 

Rep. Verger  will carry the bill.

 

206

Chair Shetterly

Closed Work Session on SB 807

 

REOPENED PUBLIC HEARING ON SB 292

 

204

Jim Craven

Testified in support of SB 292, (Exhibit 5).  Discussed tax credit for companies that donate brand new equipment to K-12 and Higher Education for computers and technology.  Credit is taken in lieu of a deduction.

 

232

Craven

Quoted “Tax Expenditure Report” deemed the expenditure as a “fiscally effective method of achieving the goal of the provision”, and is “much less costly than when educational organizations have to purchase such equipment outright”.

 

240

Craven

Discussed Senate committee testimony regarding financing of equipment, provides for date extension of 6 years of existing credit.

 

260

 

Questions and discussion regarding obsolete equipment and provisions for reviewing and accepting donations deemed useful.

 

282

Chair Shetterly

Hard to tell what this bill does from its test.  Nothing in bill says anything about computers.  These are in the statutes?

 

285

Craven

Answered affirmatively.  The only thing being changed in the bill is the date.

 

300

Chair Shetterly

Closed public hearing on SB 292.

 

 

OPENED WORK SESSION ON SB 292

 

302

Rep. Hass

MOTION:  MOVED SB 292 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

ROLL CALL:  MOTION PASSED 8-0-1

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

 

Rep. Hass will carry the bill.

 

323

Rep. Barnhart

For the record received a letter from Craven, from President of University of Oregon supporting bill SB 292.

 

 

 

 

 

336

Chair Shetterly

Meeting adjourned at 9:20 a.m.

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Martin-Mahar, “Staff Measure Summaries SB 292”, 2 pages

2.       Martin-Mahar, “Revenue Impact Statement SB 292”, 1 page

3.       Meyer, “Staff Measure Summary SB 807-A”, 1 page

4.       Meyer, “Revenue Impact Statement SB 807-A”, 1 page

5.       Craven, “Testimony SB 292”, 1 page