HOUSE COMMITTEE ON TRANSPORTATION

 

 

February, 5  2003   Hearing Room 357

8:30 a.m. Tapes 15  -  16

 

MEMBERS PRESENT:            Rep. Alan Brown, Chair

Rep. Terry Beyer, Vice-Chair

Rep. John Mabrey, Vice-Chair

Rep. Jackie Dingfelder

Rep. George Gilman

Rep. Mitch Greenlick

Rep. Cliff Zauner

 

STAFF PRESENT:                  Janet Adkins, Administrator

Ryan Sherlock, Committee Assistant

 

MEASURE/ISSUES HEARD:            HB 2213 – Public Hearing and Work Session

                                                INFORMATIONAL MEETING  - Federal Highway Funding Reauthorization.

                                               

 

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 15, A

003

Chair Alan Brown

Calls meeting to order at 8:34 a.m. and opens a public hearing on HB 2213.

HB 2213 – PUBLIC HEARING

010

Dave Tyler

Oregon Department of Transportation, Chief Financial Officer. Offers written testimony (EXHIBIT A) in support of HB 2213.

040

Rep. Greenlick

Clarifies that the state does not currently have the authority requested in section two of the bill.

045

Tyler

Responds affirmatively. Continues with presentation.

080

Chair Brown

Inquires about number of years in question for extending the life of a bond.

085

Tyler

Offers description for how the life of a bond issued to fund a project could be linked to the life of the project.

110

Chair Brown

Expresses concern for long-term bonds with repayment based on future revenue sources which could be altered in the long term.

115

Tyler

Explains that, while highway user tax bonds which are secured by current highway fund sources are issued long term, Grant Anticipation Revenue Vehicle’s (GARVEEs) are issued over shorter timeframes.

117

Chair Brown

Clarifies the shorter time frame being six years.

120

Tyler

Confirms the six to seven year timeframe, and addresses the funding for these bonds.

125

Chair Brown

Asks whether GARVEE bonds are backed by any other funding source than the federal highway allocation.

130

Tyler

Defers to Mr. Goe, and Ms. deHamel.

135

Doug Goe

Ater Wynne LLP, Chair Public Finance Group. Describes the issuance of GARVEE bonds.

150

Beth deHamel

Morgan Stanley, Executive Director. Concurs with Mr. Goe and describes how other states have addressed the issue.

160

Rep. Dingfelder

Asks how risk is factored into the issuance of bonds which are funded by long-term sources.

165

deHamel

Offers explanation of how these bonds are covered, and clarifies that they are very conservative with their numbers.

175

Rep. Greenlick

Asks Chair Brown whether it would be customary for an independent statement from the treasurer when the committee is addressing bonding measures.

180

Chair Brown

Explains that HB 2213 has a subsequent referral  to the Revenue Committee.

185

Janet Adkins

Committee Administrator, explains that Chuck Smith from the State Treasurers office would have been before the committee, but had a conflict which prevented him from attending.

190

Chair Brown

Closes the public hearing on HB 2213, and opens a work session on HB 2213.

HB 2213 – WORK SESSION

195

Rep. Beyer

MOTION:  Moves HB  2213 to the floor with a DO PASS recommendation and BE REFERRED to the committee on Revenue by prior reference.

200

Chair Brown

Asks if there is any discussion on the bill.

205

Rep. Greenlick

Clarifies that HB 2213 was referred to the Transportation Committee for its policy implications, and subsequently referred to Revenue for the income aspects of the bill.

210

Chair Brown

Explains Oregon’s past of paying for projects as they go, but addresses the modern necessity for the state to leverage its money in these areas, and how HB 2213 addresses this need.

220

Rep. Gilman

Explains that due to the subsequent referral and the need for the measure to be approved by the treasurer, he is not concerned by HB 2213.

225

Chair Brown

Points out Oregon’s history of keeping state indebtedness low.

230

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Brown

The motion CARRIES.

240

Chair Brown

Closes the work session on HB 2213, and opens an informational meeting.

INFORMATIONAL MEETING

250

Jason Tell

Oregon Department of Transportation, Government Relations. Offers written testimony (EXHIBIT B) overview of the Federal Highway Funding Reauthorization with reference to TEA-21 Reauthorization Recommendations (EXHIBIT C):

  • Background
  • TEA-21
  • Reauthorization Timeline
  • Factors Influencing Reauthorization
  • Reauthorization Issues
  • Reauthorization Recommendations
  • Conclusion

TAPE 16, A

040

Tell

Continues defining the difference in funds received by the state from the federal government.

045

Chair Brown

Asks for a break down of how much of a $300 million federal fund granted to the state would fall into the category of formula funds.

050`

Tell

Discusses the distribution of such funds.

065

Rep. Mabrey

Recalls the counties past ability to borrow funds from ODOT, and asks where those funds came from.

070

Tell

Addresses where these funds come from, and addresses its suspension do to lack of state funding.

075

Rep. Mabrey

Clarifies that the program in question is currently on hold, but could be reinstated if the funds were made available.

080

Tell

Indicates that he believes those funds have been reactivated, and concludes presentation.

100

Rep. Dingfelder

Asks about the schedule for reauthorization, and when the appropriate time would be to talk to the Oregon congressional delegation regarding reauthorization.

105

Tell

Responds that the Oregon delegation should be contacted immediately, and discusses the timeline.

115

Chair Brown

Adds that Congressmen Blumenauer had contacted his office to set up a meeting with the committee, and asks Mr. Tell if Oregon is a donor state.

125

Tell

Explains how gas taxes are collected from the states, and subsequently distributed back to the states, but Oregon felt it was not receiving a proportional amount back. Continues addressing this disparity and the efforts to correct it.

150

Chair Brown

Refers to an I-5 corridor study done in the Portland/Vancouver area, and asks whether there are any federal programs addressing issues such as those addressed in the study.

155

Tell

Responds affirmatively, outlining those federal programs.

170

Rep. Zauner

Asks how much of the gas tax collected in Oregon is sent to the federal government.

175

Tell

Identifies the federal gas tax as 18.4 cents per gallon.

177

Rep. Zauner

Asks how much this adds up to in one year.

180

Tell

Apologizes for not having that figure and indicates he will supply that to the representatives at a later date.

182

Chair Brown

Asks about rumors that the federal government is contemplating raising the national gas tax.

184

Tell

Recognizes those rumors and discusses their validity.

205

Adkins

Discusses the upcoming schedule for the committee.

210

Chair Brown

Closes the informational meeting and adjourns the committee meeting at 9:18 a.m.

 

 

EXHIBIT SUMMARY

 

A – HB 2213, written testimony, Dave Tyler, 4 pp.

B – Informational testimony, Jason Tell, 5 pp.

C – Informational testimony: TEA-21 Reauthorization Recommendations, Jason Tell,

        19 pp.