PUBLIC HEARING: SB 87, SB 88, SB 89

 

TAPES 26-27, A-B

 

SENATE REVENUE COMMITTEE

FEBRUARY 11, 2003†† 1:00 PM†† STATE CAPITOL BUILDING

 

Members Present:††††††††††† ††††††††††† Senator Ryan Deckert, Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Ted Ferrioli, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Tony Corcoran

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Charlie Ringo

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Bruce Starr

 

Members Excused:††††††††† ††††††††††† Senator Lenn Hannon

 

Witness Present:††††††††††† ††††††††††† Mike Osborne, Beaverton School District

††††††††††††††††††††††† ††††††††††† ††††††††††† Dawn Bonder, Beaverton School District

††††††††††††††††††††††† ††††††††††† ††††††††††† Carolyn Ortman, Hillsboro School District

††††††††††††††††††††††† ††††††††††† ††††††††††† Patti McLeod, Hillsboro School District

††††††††††††††††††††††† ††††††††††† ††††††††††† Jeannette Launer, Association of Oregon Redevelopment Agencies

††††††††††††††††††††††† ††††††††††† ††††††††††† Ray Erland, Clackamas County Department of Assessment & Taxation

††††††††††††††††††††††† ††††††††††† ††††††††††† Robert Vroman, Clackamas County Department of Assessment & Taxation

††††††††††††††††††††††† ††††††††††† ††††††††††† Dr. Paula Radich, Newberg School District

††††††††††††††††††††††† ††††††††††† ††††††††††† Peggy Lynch, Corvallis Resident

††††††††††††††††††††††† ††††††††††† ††††††††††† Ozzie Rose, Confederation of Oregon School Administrators

††††††††††††††††††††††† ††††††††††† ††††††††††† Laurie Wimmer Whalen, Oregon Education Association

††††††††††††††††††††††† ††††††††††† ††††††††††† David Williams, Oregon School Employees Association

 

Staff Present:††† ††††††††††† ††††††††††† Paul Warner, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Steve Meyer, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Tara Lantz, Committee Assistant

 

TAPE 26, SIDE A

 

003

Chair Deckert

Calls meeting to order at 1:41pm as a subcommittee.

 

OPENS PUBLIC HEARING ON SB 87, SB 88, SB 89

 

019

Sen. Ringo

Briefly introduces SB 87, SB 88, and SB 89 and explains the problem they address.

 

 

 

043

Mike Osborne

Testifies in support of SB 87, SB 88, and SB 89. Discusses enrollment growth in Washington County, the need for additional financial tools to keep up with this growth, and how SB 87, SB 88, and SB 89 address this problem. Exhibit 1.

 

 

 

152

Dawn Bonder

Testifies in support of SB 87, SB 88, SB 89, giving first-hand experience of overcrowding in the Beaverton School District and lack of funds to make up for this growth. Exhibit 2.

 

 

 

198

 

Quorum Formed.

 

 

 

242

Sen. Ringo

Asks what Beaverton School Districts building plans are for the next decade.

 

 

 

247

Osborne

Responds that Beaverton School District needs to open a school a year and are trying to acquire land. States that they are behind in building plans.

 

 

 

275

Sen. Ringo

Asks how businesses in the district are responding to the situation in the schools.

 

 

 

287

Osborne

Responds that businesses are noticing that the schools arenít performing well and that existing businesses are considering moving to Vancouver and potential businesses are locating elsewhere.

 

Discussion follows.

 

 

 

303

Sen. Deckert

Asks why Beaverton canít just bond for more money.

 

 

 

309

Osborne

Responds that the resistance for the local option has increased and that Beaverton citizens are aware of the inequity of the school system across the state.

 

Discussion follows.

 

 

 

347

Carolyn Ortman

Testifies in support of SB 87, SB 88, and SB 89 because it equalizes the funding across school districts. Discusses growth in Hillsboro School District and the increased costs that they have been forced to absorb. Reminds members of a formula change during the last session that helped small or remote schools. Exhibit 3.

 

TAPE 27, SIDE A

 

035

Patti McLeod

Testifies in support of SB 87, SB 88, and SB 89 because it helps those districts whose growth has helped school funding statewide but has not benefited their own schools. Exhibit 4.

 

 

 

075

Sen. Ringo

Asks about Hillsboroís construction plans.

 

Discussion follows.

 

 

 

091

Sen. Ringo

Asks about high tech industry in Hillsboro.

 

Discussion follows.

 

 

 

112

Jeannette Launer

Testifies against SB 87 because it would curtail the potential of new urban renewal plans and would have a negative affect on existing urban renewal plans. Exhibit 5.

 

 

 

165

Ray Erland

Testifies against SB 87 because of increased administrative and programming costs. Exhibit 6.

 

 

 

181

Robert Vroman

Testifies against SB 87 because it creates more complexity in the urban renewal calculations. Exhibit 6.

 

 

 

239

Erland

Discusses that many property owners would see tax increases if SB 87 were passed as written. Exhibit 6.

 

 

 

253

Sen. Ringo

Asks if they believe there is a way to fix the bill to prevent increases in property taxes.

 

 

 

260

Vroman

Responds that he is doubtful.

 

Discussion follows.

 

 

 

323

Paula Radich

Testifies against SB 87, SB 88, and SB 89 because it penalizes districts that carefully manage their growth, are losing enrollment, and have static enrollment. Recommends using the Washington State model of construction funding.

 

TAPE 26, SIDE B

 

017

Sen. Ringo

Asks how much money Portland Public Schools should send to the rest of the state.

 

 

 

020

Radich

States that she doesnít have a number but that the Legislature needs to look at the state as a whole or they will create further inequities.

 

 

 

024

Sen. Ringo

Asks if Radich has suggestions for high growth problems in urban areas.

 

 

 

026

Radich

Responds that Newberg is in the same situation as Beaverton with the need to build four more schools in the next 20 years and that the solution is the establishment of a state school construction fund similar to Washington.

 

Discussion follows.

 

033

Sen. Ferrioli

States that he takes exception to Sen. Ringoís questioning because the export of tax dollars from Portland to other parts of the state comes about from the devastation of the rural economy due to public policy.

 

 

 

063

Sen. Ringo

States that he disagrees with Sen. Ferrioliís cause for rural Oregonís economy but that he thinks the members need to solve the problems facing all communities and asks Sen. Ferrioli to help explore solutions to the problems facing his community.

 

 

 

080

Peggy Lynch

Testifies tentatively in support of SB 89 because high growth schools need help with operating costs. Testifies against SB 87 and SB 88 because Oregon canít afford another cost out of current insufficient revenues for schools. Recommends allowing citizens in local communities where high growth is occurring to levy Systems Development Charges (SDCs). Exhibit 7.

 

 

 

154

Ozzie Rose

States that the Legislature shouldnít take away operational funding for capital funding. Testifies that the Legislature needs to look at the entire state, not just the corridor communities and recommends looking at a statewide levy with matching funds.

 

Questions and answers interspersed.

 

 

 

346

Laurie Wimmer

Whalen

Testifies against SB 87 because it decreases operating revenues for districts without the special treatment, affronts the concept of local control, and makes districts suffer greater cuts in order to subsidize Hillsboro and Beaverton. Exhibit 8.

 

Questions and answers interspersed.

 

 

 

393

David Williams

Testifies against SB 87, SB 88, and SB 89 because they are only a partial solution to a problem facing all of Oregonís K-12 school districts and they dilute education funding by utilizing operational funds for capital construction. Recommends allowing SDCs. Exhibit 9.

 

 

 

412

Sen. Deckert

Adjourns meeting at 3:03 pm.

 

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.      SB 87, SB 88, SB 89, Mike Osborne, Written Testimony, 3pp.

2.      SB 87, SB 88, SB 89, Dawn Bonder, Written Testimony, 3pp.

3.      SB 87, SB 88, SB 89, Carolyn Ortman, Written Testimony, 2pp.

4.      SB 87, SB 88, SB 89, Patti McLeod, Written Testimony, 1p.

5.      SB 87, Jeannette Launer, Written Testimony, 1p.

6.      SB 87, Ray Erland and Robert Vroman, Written Testimony, 1p.

7.      SB 87, SB 88, SB 89, Peggy Lynch, Written Testimony, 1p.

8.      SB 87, Laurie Wimmer Whelan, Written Testimony, 1p.

9.      SB 87, SB 88, SB 89, David Williams, Written Testimony, 1p.

10.  Steve Meyer, School Formula Revenue Summary, 7pp.

11.  Paul Warner, Western Statesí Tax Burden Fiscal Year 1999-2000, 17pp.