SENATE COMMITTEE ON EDUCATION

March 25, 2003 Hearing Room C

3:00 PM Tapes 40-41

MEMBERS PRESENT: Sen. Charles Starr, Chair

Sen. Ryan Deckert, Vice-Chair

Sen. Ted Ferrioli

Sen. Bill Morrisette

MEMBER EXCUSED: Sen. Ted Ferriolli

STAFF PRESENT: Jan McComb, Committee Administrator

Romy Dye, Committee Assistant

MEASURE/ISSUES HEARD: SB 525 – Public Hearing and Work Session

SB 644 – Public Hearing

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 40, A
005	Chair Starr	Calls the committee to order at 3:12 PM. Opens a public hearing on SB 525. Presents -1 amendments dated 3/25/03 (EXHIBIT G).
SB 525 – PUBLIC HEARING
008	Gary George	Oregon State Senator. Testifies in favor of SB 525. Provides overview of SB 525. Submits written material (EXHIBITS A, B).
021	Alan Brown	Oregon State Representative. Testifies in favor of SB 525.
050	Mark Bigger	Legislative Assistant, Senator Gary George. Discusses amendment. Submits written material (EXHIBIT C).
065	Sen. Deckert	Expresses concern with objection granting in-state residency status to any member of army personnel . Suggests not making this so broad.
075	Chair Starr	Asks how an individual who never lived in or worked in is required to file twelve months of Oregon tax.
085	Brown	Responds Oregon residency status is stated.
087	Colonel Mike Caldwell	Deputy Director, Military Department. Testifies in favor of SB 525. Adds when in active duty given choice to select home of record and then fall under state rules. Discusses twelve month requirement that individual has to be twelve months a resident of Oregon paying taxes to Oregon.
108	Sen. Morrisette	States if normal residency requirement for student who moves to Oregon is twelve months requirement is met to pay taxes for twelve months.
115	Caldwell	Responds correct.
126	George	Adds comment regarding in-state tuition and income tax.
142	Jim Ludwick	Oregon resident. Testifies in support of SB 525. Feels SB 525 is a way to thank people for putting lives on line to protect everyone’s liberties. Comments military should get in-state tuition.
165	Chair Starr	Comments on personal experience being in the army.
The following prepared testimony is submitted for the record without public testimony for SB 525: Jim Arnold Submits written testimony (EXHIBIT D)
SB 525 – WORK SESSION
190	Sen. Deckert	Asks for clarification of SB 525 that it defines if pay income tax for one year and declare Oregon residency then SB 525 states granted in-state tuition.
196	Jan McComb	Committee Administrator. Clarifies SB 525.
206	Sen. Deckert	Elaborates on dates for filing taxes.
214	Sen. Morrisette	Clarifies on meeting one year Oregon residency requirement by declaring Oregon residency by the income tax return.
220	Chair Starr	Comments Veterans served outside of the state were benefited two years ago and now the aim is for benefiting those inside the state.
227	Sen. Morrisette	Asks for amendment including university system and community colleges.
250	Caldwell	Clarifies page 2 of SB 525 includes proper language involving all universities for the state.
255	Sen. Morrisette	Asks whether the amendment would put the community colleges into SB 525.
258	Caldwell	Responds yes.
273	Sen. Morrisette	MOTION: Moves to ADOPT SB 525-1 amendments dated 03/25/03.
275		VOTE: 3-0 EXCUSED: 1 - Sen. Ferriolli
	Chair Starr	The motion CARRIES.
280	Sen. Morrisette	MOTION: Moves SB 525 to the floor with a DO PASS AS AMENDED recommendation and SUBSEQUENT REFERRAL to Ways and Means be rescinded.
290		VOTE: 3-0 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 1 - Sen. Ferriolli
	Chair Starr	The motion CARRIES. SEN. GEORGE will lead discussion on the floor.
308	Chair Starr	Closes the work session on SB 525 and opens a public hearing on SB 644.
SB 644 – PUBLIC HEARING
321	Sen. Deckert	Testifies in favor of SB 644. Provides summary of SB 644. Submits written testimony (EXHIBITS E, F).
412	Sen. Ferriolli	Asks if this program would be different if applied to K-12 students.
416	Sen. Deckert	Responds circumstances with higher education and K-12 are vastly different.
421	Sen. Ferriolli	Clarifies the general fund would apportion the dollars among high school students savings accounts. Asks what the students do in regards to their accounts who are non-graduates by choice.
439	Sen. Deckert	Responds believes two years is the time frame.
TAPE 41, A
005	Sen. Ferriolli	Comments the institutions would have to be deprived of income for two years for the percentage of students who do not go to community college or institution of higher learning.
010	Sen. Deckert	Comments SB 644 is designed in ways to benefit those communities.
015	Sen. Ferriolli	Agrees. Comments many problems are economic but some students are not going to be higher institution bound for education.
024	Sen. Deckert	Agrees. Stresses best features of program are for students opportunity grant is after and program designed for low income students.
045	Sen. Ferriolli	Comments unfunded scholarship program for foster kids not funded in previous session.
054	Sen. Morrisette	Refers to page 3 of SB 644. Comments qualification for entry into higher education system is beyond what some will achieve. Asks about a lot of people not qualifying.
074	Sen. Deckert	Comments admission is the triggering factor. States that before that it is a marketing program.
092	Sen. Morrisette	Refers to page 2 that each person notified saying that there will be money set aside for them if they qualify.
102	Sen. Deckert	Answers precisely.
105	Sen. Morrisette	Asks whether the money set aside is based on how many people are likely to apply.
108	Sen. Deckert	Responds reason see blanks is largely due to different students cost different amounts.
131	Gratton Kerans	Director of Government Relations, Oregon University System. Discusses how University System is involved. States root issue is taxpayers need to be prepared to invest heavily. If implemented after perfected it would cause different things: Dismantle resource allocation model, Change to a different system Await arrival of those who come with the voucher saying something is in the savings account Comments if willing to raise taxes and distribute money to education savings accounts for everyone who qualifies as many as come then not an entitlement and has to be limited.
250	Kerans	Recommends rather than working through mechanism and changing entire landscape of post secondary education and budgeting and negative response that may come from that instead say we have an obligation to the students who select themselves out.
265	Sen. Morrisette	Expresses interest in previous comments and worth working on.
284	Sen. Deckert	Disagrees with previous testimony due to once education savings account available difficulty reducing checks given to students.
319	Kerans	States does not disagree; elaborates not sure state is prepared to turn this into an entitlement plan which is open blank check on general fund. Feels effective if target specific parts of the population.
365	Chair Starr	Comments this is important discussion. Provides personal example on own kids and schooling.
422	Sen. Morrisette	Expresses interest. Comments on need for discussion, incentive and rewards for those who qualify.
432	Chair Starr	Closes the public hearing on SB 644 and adjourns the committee at 4:09 PM.

EXHIBIT SUMMARY

A – SB 525, written testimony for Chad Ryan, Senator Gary George, 1p

B – SB 525, written summary, Senator Gary George, 1 pp

C – SB 525, written letter on amendment, Mark Bigger, 1 pp

D – SB 525, written letter not discussed, Jim Arnold, 2 pp

E – SB 644, written testimony, Senator Ryan Deckert, 1p

F – SB 644, packet on Governor’s Blue Ribbon Panel, Senator Ryan Deckert, 23 pp

The following exhibit is listed out of order in the body of the tape log:

G – SB 525, -1 amendments dated 3/25/03, staff, 1p