WORK SESSION ON SB 550, SB 819 HB 3130

 

TAPE 160, 161, A

 

HOUSE REVENUE COMMITTEE

MAY 8, 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:                        Senator Charles Starr, District 13

                                                Jim Markee, Equity Steering Committee

                                                Dr. Paula Radich, Superintendent of Newberg Schools, Equity Coalition

                                                Ozzie Rose, Confederation of School Administrators

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Steve Meyer, Legislative Revenue Office

                                                Dick Yates, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 160, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 8:38  a.m.

 

OPENED WORK SESSION ON SB 550, SB 819

 

016

Sen. Charles Starr

Spoke in support of the -7 amendment to SB 819, (Exhibit 1), discussed affects of compression on Sherwood School District.

 

047

Rep. Verger

When you give to one, you take from someone else; also cited situation of seriously declining population in schools that place them in tough situation as to funding.  Felt it would be fair to look at all of situations in Oregon at one time, rather than piecemeal.

 

058

Sen. Starr

Agreed important issues not addressed in the formula. But strongly urge Committee to consider this issue.

 

072

Jim Markee

Spoke in opposition to SB 819A, dedicated to the principle that every child should get an equal opportunity to be educated.

 

079

Dr. Paula Radich

Spoke in opposition to SB 819A.  Goal is to seek stable equal funding for students.  Passage of local option would perpetuate inequities.  Cited local option levies find difficult passage in small rural areas and not the answer to long term stable funding.

 

146

Chair Shetterly

Would take issue with comment, don’t think Portland feels it has satisfied school funding problem.

 

147

Dr. Radich

Concurred, however, Portland has the capacity to raise funds that rural districts do not.

 

150

Rep. Barnhart

How is formula funding in your district?

 

154

Dr. Radich

Provided it remains stable, it has been good in our district and the Equity Districts and is a fair formula.

 

158

Rep. Barnhart

Are the dollars adequate under the formula?

 

162

Dr. Radich

When there is revenue available to support, yes.  Currently, no.

 

164

Chair Shetterly

Why should I be able to stop areas from going out and getting better education if it has not harmed me?  Why should the state say it can’t be done if there is community willingness and it is not harming other districts?

 

188

Markee

Did not oppose original local option.  Discussed state equity grants to level the playing field.  Some districts with more property are wealthier than others.  Issue is local option, assumes schools are funded adequately to provide basic education; they are not. If local option is allowed, it takes away the incentive to provide adequate funding for basic education for all kids.

 

233

Chair Shetterly

Does not see that sense of commitment as being eroded.

 

240

Rep. Williams

Agreed local option is not a long term solution to adequate stable funding approach.  What is your idea to get us there?  HB 3500 gets us to a stable source of long term funding for education.  If not local option short term fixes, what’s your big fix idea?

 

245

Dr. Radach

Suggested a consumption or sales tax.

 

272

Rep. Williams

Encouraged Markee and Radach to read HB 3500 and sign on.

 

275

Markee

Funding for K-12 funding comes from general fund, there is no one solution.  Some districts more judicious with funding, Legislature has to require more accountability from school districts in some areas.  Look at tax expenditures, Oregon is giving away more money than collecting.  After that is done will still need additional revenue, but must be done to get support of voters.

 

297

Rep. Hass

What would you do if you were Superintendent of Portland Schools, discussed statewide failure of Measure 28?  They are saying Portland supported even though would have resulted in net loss in tax dollars and it failed.  Portland is saying it needs to support a local option.

 

317

Dr. Radach

Don’t have objection to Portland seeking a local option.  Concerned it is not a long term solution. Need to not use local option to salvage school districts.  As long as they do so, the public will not perceive there is a funding problem.  Have to remember there are rural communities that do not have ability to pass a local option.

 

337

Rep. Hopson

Would suggest that Portland did talk to its community, how is a minimum level reached.  What’s the difference if a districts trying to provide a little more than a minimum standard, or the pit?

 

356

Markee

The difference is, it removes the incentive for this body to provide the basic amount, and moves away from the concept of every child should have an equal opportunity. Multnomah County vote takes a lot of pressure off policy makers.

 

386

Chair Shetterly

Would disagree with premise that $500-$750, the Legislature would lose the incentive to address.

 

390

Markee

When looking at funding formula issues in committee, people look at their own school district not adequacy on statewide basis.  If legislator’s school district is taken care of, they are less interested in the statewide problem.

 

409

Rep. Barnhart

Local option and general funding are difficult issues.  Discussed a belief that funding is okay when revenue is good. Even when revenue is okay, funding for Eugene has not been good ever since equalization began. Rural districts get angry about cuts in Eugene because they have never had it so good.  Would love it if Markee’s comment were true. My experience is that Legislators don’t want to address or feel helpless addressing problems in education funding.

 

484

Rep. Barnhart

In Eugene, love-hate relationship with local option for reasons witnesses discussed.  Inclined to support original bill, but oppose amendments.  Would rather fund systematically and not need stop gap measures.

 

 

TAPE 161, SIDE A

 

033

Rep. Hass

Concurred, discussed recent town hall regarding local option vote in Beaverton. People are furious about a local option, even if it passes, it won’t put schools where people are happy.  They still want the state to come up with tax restructuring that is fair to taxpayers and schools.

 

048

Markee

An integral part of the local option process has been equity grants, so property poor districts have shot at passing.  Would encourage Committee to make sure appropriations are adequately made and possibly tied to this bill.

 

060

Rep. Hopson

Represents districts that won’t support local option, have agreed with allowing room for districts that would support local options.  Nobody thinks this solves the problem.

 

073

Rep. Barnhart

Would support amendment, tying the passage of SB 819 to funding Markee referred to.

 

076

Chair Shetterly

Disagreed.

 

079

Chair Shetterly

Asked Markee if he would support a local option once there is adequate funding statewide; and when the smallest rural district would pass one.

 

087

Markee

We have a local option. We’re not opposing local option, oppose this bill that expands local option from 10% to 15%.  If this is passed, next session someone will have a bill to expand to 20%.

 

098

Ozzie Rose

This issue boils down to if this bill is approved it gets in the way of the big fix and equity.  This bill changes dollars and the cap, not a magic number and does not feel it upsets equity.  The big fix is changing public opinion.  The challenge to Legislators is to take leadership to help public opinion about how business is done in Oregon.

 

134

Rose

Said that not only big districts supported a local option, cited an equal number of large and rural districts supported it.  Until we get the big fix, communities need flexibility to keep things going.

 

154

Rose

Cited letter sent directly to legislators from Mr. Rodriguez regarding Hillsboro Argus illustrates what is going on in every school district.

 

166

Chair Shetterly

Closed Work Session on SB 819, SB 550.

 

 

OPENED WORK SESSION ON HB 3130

 

184

Chair Shetterly

Have been asked to send this bill to the Rules Committee for the relating clause, not for the bill.

 

185

Rep. Williams

Do you know about the intent of this bill when it gets to the Rules Committee?

 

186

Chair Shetterly

Answered negatively.

 

194

Chair Shetterly

MOTION:  MOVED HB 3130 WITHOUT RECOMMENDATION TO THE COMMITTEE ON RULES AND PUBLIC AFFAIRS.

 

201

Rep. Barnhart

Point not to deal with issue in the bill?  It is unlikely to have a revenue issue in our purview?

 

202

Chair Shetterly

Answered affirmatively.

 

203

Rep. Barnhart

“On that basis, I will vote for the motion”.

 

204

 

ROLL CALL:  MOTION PASSED 7-0-2

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hopson, Scott, Verger, Chair Shetterly.  VOTING NO:  Hass, Williams

 

212

Chair Shetterly

Closed the Work Session on HB 3130.

 

 

 

213

Chair Shetterly

Meeting adjourned at 9:20 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Starr, “Testimony SB 819-7 amendment”, 1 page

2.       Meyer, “Staff Measure Summary SB 550”, 1 page

3.       Meyer, “Revenue Impact SB 550”, 1 page

4.       Meyer, “SB 550-A7 Amendment”, 29 pages

5.       Meyer, “Staff Measure Summary SB 819-A10”, 1 page

6.       Meyer, “Revenue Impact SB 819-A10”, 1 page

7.       Meyer, “SB 819-A11 Amendment”, 1 page

8.       Yates, “Staff Measure Summary HB 3130”, 1 page