PUBLIC HEARING: HB 2152

 

TAPES 167, A-B

 

SENATE REVENUE COMMITTEE

August 13, 2003   9:00 AM   STATE CAPITOL BUILDING

 

Members Present:                        Senator Ryan Deckert, Chair

                                                Senator Rick Metsger

                                                Senator David Nelson

                                                Senator Charlie Ringo

 

Members Excused:                      Senator Ted Ferrioli, Vice Chair

                                                Senator Tony Corcoran

                                                Senator Lenn Hannon

                                                Senator Bruce Starr

 

Witnesses Present:                        Gordon Fultz, Association of Oregon Counties

                                                Gina Firman, Association of Oregon Community Mental Health Programs

                                                Bart Murray, New Directions NW

                                                Gil Riddell, Association of Oregon Counties

                                                Steve Harris, Washington County

                                                John Fletcher, Oregon Housing and Community Services

                                                Ann Uhler, Governor’s Council on Alcohol and Drug Problems

                                                Angela Kimball, National Alliance for the Mentally Ill

                                                Jacqueline Zimmer, OR Assoc. Area Agencies on Aging and Disabilities

                                                Stephen Loaiza, National Alliance for the Mentally Ill

                                                Senator Bill Morrisette, District 6

                                                Marcia Kelley, Women’s Rights Coalition

                                                Joe Schweinhart, Associated Oregon Industries

                                                Bob Castagna, Oregon Catholic Conference

 

Staff Present:                            Paul Warner, Legislative Revenue Office

                                                Tara Lantz, Committee Assistant

 

TAPE 166, SIDE A

 

003

Chair Deckert

Calls meeting to order at 9:20 am.

 

OPENS PUBLIC HEARING ON HB 2152

 

007

Paul Warner

Discusses the –A11 amendments (Exhibit 1) which makes some technical corrections and changes the variable discount rate for counties to 1%.

 

 

 

043

Sen. Deckert

Asks if the tax collectors are okay with the change in discount rate.

 

Nods from the Oregon Association of County Tax Collectors.

 

 

 

050

Gordon Fultz

Testifies in support of a beer and wine tax increase if the revenues are dedicated to fund services that prevent and treat alcoholism and drug addiction. Refer to written testimony (Exhibit 2). Provides information on mental health services at the county level in a media packet (Exhibit 3).

 

 

 

160

Gina Firman

Testifies in support of the increase in beer and wine taxes because it would restore funds for mental health services and jobs. Discusses the devastation that has occurred from budget cuts.

 

 

 

188

Bart Murray

Testifies in support of a beer and wine tax increase because funding for drug and alcohol treatment services has . Discusses women and children services that have been cut. States that it is wrong to take this tax and use it for anything other than drug and alcohol prevention and treatment.

 

 

 

247

Sen. Nelson

Asks if all of the beer tax now goes to treatment programs.

 

 

 

252

Fultz

Responds that half of the tax goes to treatment now and the rest goes to the General Fund with the assumption that some treatment programs are funded by the General Fund.

 

 

 

260

Sen. Nelson

States that if all the money was going to programs, it would solve the problem for the local governments.

 

 

 

270

Fultz

Responds that the amount of expenditures the County has for public safety and treatment is extensive.

 

 

 

276

Sen. Nelson

Asks if there is an issue with the discount rate when there is a local option.

 

 

 

291

Gil Riddell

Responds that it is an issue that needs to be considered because it would be diverting local property taxes to the state and has potential for a lawsuit, although he wouldn’t anticipate any.

 

 

 

311

Sen. Ringo

Asks for clarification on the number of mental health employees that have been laid off.

 

 

 

315

Firman

Responds that 1,800 people have been laid off in the mental health and addiction workers have been laid off.

 

Discussion follows.

 

 

 

325

Sen. Ringo

Asks what impact that has had on the economies in the rural communities.

 

 

 

327

Firman

Responds that it has been devastating.

 

Discussion follows.

 

 

 

352

Murray

States that Baker City has a very high rate of unemployment and it is difficult for people to find other employment.

 

 

 

360

Fultz

Refers members to the media packet on counties.

 

 

 

382

Steve Harris

Testifies in support of the beer and wine tax increase because it would provide funds for mental health services and mental health jobs. Discusses the services provided by treatment centers. States that if breweries were good citizens, they would be glad to help Oregonians. Refer to written testimony (Exhibit 4).

 

TAPE 168, SIDE A

 

053

John Fletcher

Testifies in support of the –A11 because of the inclusion of the affordable housing and farm worker tax credits.

 

 

 

079

Ann Uhler

Testifies in support of the beer and wine tax increase because the cutbacks in mental health services has had a negative impact on citizens and programs, but asks that they make a change to make the new tax revenues go to the old formula for distribution. Expresses outrage that the bill creates a beer marketing fund.

 

 

 

185

Sen. Deckert

Asks if Uhler feels the same outrage towards the wine marketing board.

 

 

 

190

Uhler

Responds affirmatively.

 

 

 

201

Angela Kimball

Gives personal examples of people who have been devastated from the cuts in mental health services. Testifies in support of dedicating a beer and wine tax increase to mental health and addiction services.

 

 

 

268

Jacqueline Zimmer

Testifies against the senior medical tax exemption reduction and asks that if they do eliminate the exemption, to increase funding for senior services. Refer to written testimony (Exhibit 5).

 

 

 

327

Sen. Deckert

Points out that the revenue committee cannot determine funding levels.

 

 

 

330

Zimmer

Responds that she is asking them to dedicate revenues from the reduction of the senior medical tax exemption to seniors and disabled.

 

 

 

362

Sen. Nelson

Asks if there are amendments that fix these problems.

 

 

 

365

Zimmer

Responds that they are working on them.

 

 

 

370

Sen. Deckert

States that this committee has been given a number of revenue to be raised by Ways and Means and that any change that is made is going to have to come out of the budgets.

 

 

 

385

Stephen Loaiza

Discusses study that showed drug and alcohol addiction as a top ten disease. Urges the legislature to dedicate funding to drug and alcohol treatment. Expresses outrage about the marketing fund.

 

TAPE 167, SIDE B

 

032

Sen. Morrisette

Expresses concern that the beer and wine tax in the bill is not large enough and does not honor the existing formula for distribution of beer tax receipts. Refer to written testimony (Exhibit 6).

 

070

Marcia Kelley

Testifies in support of the funding proposals but expresses concern over the legislative intent of the -A11 amendments because human services are also important.

 

 

 

100

Sen. Nelson

Asks why Kelley doesn’t like the statement of policy that the taxes will go to fund k-12 schools.

 

 

 

105

Kelley

Responds that funding should not only be for k-12 when there are other programs for women and children that need funding as well.

 

 

 

114

Sen. Metsger

Points out that the legislative intent only discusses certain portions of the bill that should be dedicated to k-12 funding.

 

 

 

126

Kelley

Responds that she is not just advocating for the beer and wine taxes for alcohol and drug treatment and that the rest of the bill would be dedicated to k-12.

 

 

 

135

Sen. Deckert

States that the reason the legislative intent was put in the bill was because one member would not vote for the package if it was not included.

 

 

 

142

Sen. Metsger

Points out that there are many people who want dedicated funding and asks if she is advocating for not dedicating the funding.

 

 

 

145

Kelley

Responds affirmatively.

 

 

 

155

Joe Schweinhart

Testifies against the tax increases because they are damaging to the economy. States that the Legislature needs to increase incentives for businesses to locate in Oregon.

 

 

 

226

Sen. Deckert

Asks for recommendations on what to cut out of the budget.

 

 

 

228

Schweinhart

Responds that they have on numerous occasions added to a list of where to make cuts and where to raise new revenues and that now the legislature needs to do something about the economy.

 

 

 

243

Bob Castagna

Expresses concern over the reduction in the earned income tax credit because it would take over $9 million from people with an income of less than $20,000.

 

 

 

287

Sen. Deckert

Recesses meeting at 10:35 am.

 

 

 

 

 

Meeting adjourned at 12:00 am.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 2152, Sen. Deckert, Proposed HB 2152-A11 Amendments, 55pp.
  2. HB 2152, Gordon Fultz, Written Testimony, 21pp.
  3. HB 2152, Gordon Fultz, News Conference Media Packet, 50pp.
  4. HB 2152, Steve Harris, Written Testimony, 12pp.
  5. HB 2152, Jacqueline Zimmer, Written Testimony, 8pp.
  6. HB 2152, Sen. Morrisette, Written Testimony, 2pp.
  7. HB 2152, Judy Cushing, Written Testimony, 7pp.
  8. HB 2152, Sen. Metsger, Proposed HB 2152-A10 Amendments, 2pp.