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WORK SESSION: HB 2188, HB 2041 B |
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PUBLIC HEARING: HB 2747 B |
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TAPES 155-156,
A-B |
JUNE 30,
2003 1:00 PM STATE CAPITOL BUILDING
Members Present: Senator Ryan Deckert, Chair
Senator Ted
Ferrioli, Vice Chair
Senator
Tony Corcoran
Senator
Lenn Hannon
Senator
Charlie Ringo
Senator
Bruce Starr
Members Excused: Senator Lenn Hannon
Witnesses Present: Andi Jordan, Oregon PTA
Andy
Saultz, Oregon Student Association
Chris
Dudley, Oregon School Board Association
Ozzie
Rose, Confederation of Oregon School Administrators
Carol
Robinson, Coalition for School Funding Now
Lynn
Lundquist, Oregon Business Association
Michael
Slater, SEIU-Local 503
Tina
Kotek, Children First for Oregon
Phillip
Kennedy-Wong, Ecumenical Ministries of Oregon
Senator
Kurt Schrader, District 20
Kristina
McNitt, Oregon Small Woodlands Association
Clint
Bentz, Small Woodland Owner
Staff Present: Paul
Warner, Legislative Revenue Office
Dick
Yates, Legislative Revenue Office
Tara
Lantz, Committee Assistant
TAPE
155, SIDE A
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003 |
Chair Deckert |
Calls meeting to order at 1:16 pm. |
OPENS WORK SESSION ON HB
2041
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039 |
Dick Yates |
Gives overview of the major
provisions of HB 2041, beginning with bonds and annual taxes and fees. Refer
to HB 2041 Overview (Exhibit 1) and staff measure summary (Exhibit 2). |
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168 |
Yates |
Continues with discussion on income
tax capture and the truck engine tax credit. |
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284 |
Sen. Deckert |
Asks if this bill favors dump trucks. |
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286 |
Yates |
Responds that they are favoring
them, but not by a large amount. |
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295 |
Sen. Ferrioli |
Asks how many long haul dump trucks
there are doing interstate commerce. |
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297 |
Yates |
Responds that he doesn’t know. |
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299 |
Sen. Ferrioli |
States that there are none because
it is assumed that they are locally owned facilities doing short haul
projects and that is why dump trucks pay less. |
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308 |
Yates |
Responds that he doesn’t believe
that to be the case. Discusses estimates of the income tax capture. |
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370 |
Sen. Starr |
MOTION: MOVES HB 2041 B TO THE
SENATE FLOOR WITH A DO PASS RECOMMENDATION. |
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375 |
Sen. Deckert |
ORDER: ROLL CALL VOTE: MOTION
PASSES: 5-0-1. SENATORS ANSWERING AYE: CORCORAN,
RINGO, STARR, FERRIOLI, DECKERT. SENATOR EXCUSED: HANNON. Sen. Metsger and Sen. Starr will
carry the bill on the Senate Floor. |
CLOSES WORK SESSION ON HB
2041
OPENS PUBLIC HEARING ON HB
2747 B
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420 |
Andi Jordan |
Testifies in support of adequate and
stable school funding. Refer to written testimony (Exhibit 5). |
TAPE 156, SIDE A
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017 |
Andy Saultz |
Testifies in support of HB 2747–B8
amendments because it would stabilize Oregon’s tax structure and set up a
dedicated source of funding for k-12, in turn allowing other programs in the
General Fund to thrive, such as Opportunity Grants. Refer to written
testimony (Exhibit 6). |
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052 |
Chris Dudley |
Testifies in support of HB 2747-B8
amendments because Oregon is over reliant on the volatile income tax and
needs tax reform in order to keep Oregon the kind of place people want to
live in. Discusses previous achievements of Oregon schools and the downturn
they are facing. Refer to Public Education in Oregon (Exhibit 7). Discusses
unfunded federal mandates for schools. |
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089 |
Sen. Starr |
Asks how much federal funds flows
into Oregon for education. |
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093 |
Dudley |
Responds that he doesn’t know. |
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095 |
Sen. Starr |
Suggests that the No Child Left
Behind Act might not be completely funded but there are significant federal
funds flowing into Oregon for education. |
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098 |
Dudley |
Responds that he will get
information about funds dedicated for certain acts inside the federal agenda
describing why the money is not adequate for the outcomes expected. Points
out that Oregon is lucky because they set up high standards and requirements
early on. |
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122 |
Sen. Deckert |
Asks if reform should come from the
Legislature or from citizens. |
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128 |
Jordan |
Responds that members of the PTA
believe the Legislature should because that is what they were elected to do. |
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136 |
Saultz |
Responds that they haven’t directly
talked about this, but that he favors a decision in this building because
tuition is being decided right now and they need a decision as soon as
possible in order to keep tuition down in the fall. |
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143 |
Dudley |
Responds that it has to be both
because if one group supports tax reform and another opposes it, mixed
messages will be sent and the measure will fail. |
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179 |
Ozzie Rose |
Testifies in support of HB 2747-B8
amendments because a consumption tax of some sort needs to be added to
current tax system to balance the system and adequately fund schools. States that the Legislature needs to look
at information provided, write a proposal that will help the Oregon economy,
and provide information to the public so they will be able to make informed
decisions. |
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297 |
Carol Robinson |
Testifies in support of HB 2747-B8
amendments because Oregon citizens can’t wait any longer for stable and
adequate school funding and as voters have elected the legislature and the
Governor to do the job. Refer to verbatim written testimony (Exhibit 8). |
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375 |
Lynn Lundquist |
Testifies in support of tax reform and
states that the Legislature needs to put forth the best plan possible in
order for it to have a chance to succeed. Suggests using the Business Activity Tax as part of the package
and that if the Legislature cannot stay here for a significant amount of
time, that they come back immediately after the session ends and continue to
hold hearings. Discusses the impacts of Measure 5 on the share of taxes paid
by businesses. |
TAPE 155, SIDE B
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060 |
Sen. Ringo |
Asks if the current tax structure is
unfriendly to business. |
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062 |
Lundquist |
Responds that it is not unfriendly, but there are ways to
improve the system to make it friendlier. |
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066 |
Sen. Ringo |
Asks if the high personal income tax
rate is an incentive for owners of business to locate in other states. |
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072 |
Lundquist |
Responds affirmatively. |
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075 |
Sen. Ringo |
Asks if OBA has taken a hard look at
the business activity tax. |
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077 |
Lundquist |
Responds negatively, but states that
they will when the time is necessary. |
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082 |
Sen. Ringo |
States that some legislators believe
that the question of revenue reform should be addressed after the close of
session and that others believe they need the pressure of session on them to
do that work and that if OBA believes in the latter they need to submit their
position as soon as possible. |
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088 |
Lundquist |
Responds that they have a hard time
believing that the heat comes off once the session ends. |
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103 |
Sen. Ringo |
Encourages OBA to start working on
this and give their opinion as soon as possible so that the Legislature knows
where they stand. |
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105 |
Lundquist |
Responds that OBA will be there in
support of whatever the Legislature decides to do. |
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111 |
Sen. Corcoran |
Asks if OBA is working with anyone
outside the building to look at |
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112 |
Lundquist |
Responds affirmatively. |
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113 |
Sen. Corcoran |
Asks who they are working with. |
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115 |
Lundquist |
Responds that he can’t say, but they
have been working with a group of people for over a year. |
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131 |
Michael Slater |
Testifies in support of HB 2747-B8
because Oregon needs comprehensive tax reform and that now is the time to do
it in the Legislature. Offers support for a broad based consumption tax such
as Sen. Schrader’s proposal. |
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164 |
Tina Kotek |
Testifies in support of HB 2747-B8
amendments because Oregon needs tax reform and more stability and adequacy. States
that people need short term solutions and long term reform. |
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204 |
Phillip Kennedy- Wong |
Testifies in support of HB 2747-B8
amendments because the time for tax reform is now. States that churches have
been forced to turn people in need away and that services need to be
restored. |
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267 |
Paul Warner |
Discusses the Oregon Tax Incidence Model
and the results of the business activity tax using the model. Refer to OTIM
Results (Exhibit 9). |
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404 |
Sen. Corcoran |
States that it seems like the group
that benefits the most is the highest income earners. |
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406 |
Warner |
Responds affirmatively and continues
discussion. |
TAPE 156, SIDE B
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020 |
Sen. Schrader |
Expresses appreciation for hearing
about the need for tax reform. Requests that a work group be formed to help
him refine and move the proposal along. |
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036 |
Sen. Deckert |
Responds that he would like to form
a work group and bring the proposal back in a week. |
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039 |
Sen. Corcoran |
Asks why they wouldn’t combine this
with the work of the joint revenue task force. |
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043 |
Sen. Schrader |
Responds that he is open to that
approach. Discussion follows. |
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058 |
Sen. Deckert |
States that he would prefer an
informal work group be formed and that Sen. Ringo and Sen. Starr might be
interested in working on the proposal. |
CLOSES PUBLIC HEARING ON HB
2747 B
OPENS WORK SESSION ON HB
2188
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070 |
Yates |
Explains the -1 amendments (Exhibit
10) which resolve conflicts that arose from the passage of HB 2197 and the -4
amendments (Exhibit 12), which creates a new application process for
continuing qualification of the 20-80 deferral program. |
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121 |
Kristina McNitt |
Explains the policy behind the -4
amendments, which was to prevent gaming of the 20-80 deferral program created
in HB 2197. |
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136 |
Clint Bentz |
Testifies in support of the -4
amendments because it prevents gaming of the 20-80 deferral program, while
allowing land owners who do not game the system to benefit. |
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163 |
Sen. Ringo |
Asks whether this would allow any
type of gaming by transferring to shelters. |
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166 |
Bentz |
Responds negatively. |
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179 |
Sen. Ringo |
Asks if there is a revenue impact
with this amendment. |
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181 |
Yates |
Responds negatively. |
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185 |
Sen. Ringo |
Asks what the original bill does. |
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188 |
Yates |
Responds that it began as cleaning
up obsolete language, but once HB 2197 was passed, they had to change the
language to resolve conflicts with the -1 amendments and the -4 amendments were
proposed to solve the problem of gaming the system. |
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220 |
Sen. Starr |
MOTION: MOVES HB 2188-1 AMENDMENTS
DATED BE ADOPTED. |
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224 |
Sen. Deckert |
ORDER: HEARING NO OBJECTION, MOTION
PASSES: 4-0-2. SENATORS EXCUSED: CORCORAN, HANNON. |
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227 |
Sen. Starr |
MOTION: MOVES HB 2188-4 AMENDMENTS
DATED 6/30/03 BE ADOPTED. |
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232 |
Sen. Deckert |
ORDER: HEARING NO OBJECTION, MOTION
PASSES: 4-0-2. SENATORS EXCUSED: CORCORAN, HANNON. |
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236 |
Sen. Starr |
MOTION: MOVES HB 2188 TO THE SENATE
FLOOR WITH A DO PASS RECOMMENDATION. |
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240 |
Sen. Deckert |
ORDER: HEARING NO OBJECTION, MOTION
PASSES: 4-0-2. SENATORS EXCUSED: CORCORAN, HANNON. Sen. Ferrioli will carry the bill on
the Senate Floor. |
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245 |
Sen. Deckert |
Adjourns meeting at 2:53 pm. |
Tape Log Submitted by,
Tara Lantz, Committee
Assistant
Exhibit Summary: