ORGANIZATIONAL MEETING

 

INFORMATIONAL MEETING

 

TAPES 1-2-3, A-B

 

HOUSE REVENUE COMMITTEE

JANUARY 13, 2005   1:00 PM   STATE CAPITOL BUILDING

 

Members Present:                        Rep. Tom Butler, Chair

                                                Rep. Vicki Berger, Vice-Chair

                                                Rep. Mark Hass, Vice-Chair

                                                Rep. Brian Boquist

                                                Rep. Sal Esquivel

                                                Rep. Larry Galizio

                                                Rep. Betty Komp

                                                Rep. Andy Olson

                                                Rep. Chuck Riley

                       

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Kim Taylor James, Committee Coordinator

                                                Kristi Bowman, Committee Assistant

 

TAPE 1, SIDE A

ORGANIZATIONAL

004

Chair Tom Butler

Calls meeting to order at 1:03 P.M.

 

010

Paul Warner

Introduction of  Revenue Office staff and Dept. of Revenue staff. (Exhibit 2).

 

040

Chair Butler

Introduction of committee members. Members give brief summary of their experience.

 

 

 

166

Chair Butler

Housekeeping items for  hearing room etiquette.

 

ORGANIZATIONAL MEETING

 

230

Chair Butler

Committee Proposed Rules discussion (Exhibit 1).

 

221

Chair Butler

MOTION: MOVES ADOPTION OF COMMITTEE RULES.

 

241

 

Chair Butler

ORDER: HEARING NO OBJECTION, CHAIR BUTLER SO ORDERS.

9-0-0. ALL MEMBERS PRESENT.

 

244

Chair Butler

Discussion of roll-call vote process.

 

251

Kim James

Clarification of roll-call vote rules.

 

310

Chair Butler

Meeting time during remainder of orientation will be 1:30 p.m.; committee concurs.

 

344

Warner

Discussion of House Revenue Committee Work Plan (Exhibit 4). Plan based on work done by interim and joint committees. The plan outlines major revenue impacts for this session. Revenue Department will give orientation to this committee in March about their collection processes of income tax returns.

 

406

Warner

Continuation of work plan discussion. Review of issues that will impact committee this session.

 

 

 

TAPE 2 SIDE A

48

Chair Butler

Discussion with Warner on Work Plan; comments regarding prioritizing of certain issues such as school funding.

 

78

Chair Butler

Chair yields gavel to Rep. Hass.

 

INFORMATIONAL

 

85

Warner

Presentation of Overview of Oregon’s Revenue System (Exhibit 6); reference to 2005 Oregon Public Finance Basic Facts booklet (Exhibit 5).

 

116

Warner

Slide 2: Comparison of OR to other states

 

171

Acting Chair Hass

Requested clarification of distinction between revenue and collection.

 

 

 

180

Rep. Tom  Butler

Requested definition of consumption taxes.

 

185

Warner

Responds that these taxes are defined as “selective sales taxes”: tobacco, gasoline, alcohol, beer and wine.

 

212

Warner

Slide 3: Categories of revenue received by state and local governments. Clarification questions from members interspersed.

 

346

Warner

Slide 4: Oregon’s tax system categories.

 

445

Warner

Slide 5: State taxes by source.

 

484

Warner

Slide 6: State revenue systems.

 

 

 

TAPE 1 SIDE B

027

Warner

Slide 6: Table comparing neighboring state revenue systems.

 

 

 

Clarification questions from members interspersed.

 

138

Warner

Slide 7: Table comparing neighboring state tax systems.

 

206

Warner

Slide 8: How has OR’s revenue system changed?

 

234

Warner

Slide 9: OR’s property values and property tax levies

 

395

Warner

Slide 10: State’s growing responsibility for schools

 

 

 

410

Warner

Slide 11: income and sales taxes

 

 

 

420

Warner

Slide 12: WA and OR revenue stability

 

 

 

TAPE 2 SIDE B

47

Warner

Slide 13: OR revenue system

58

Warner

Slide 14: OR tax system

 

 

 

62

Warner

Slide 15: OR new revenue system

 

 

 

83

Warner

Slide 16: OR current revenue situation

 

 

 

102

Warner

Slide 17: general fund resources

 

 

 

119

Warner

Slide 18: all funds revenue

 

 

 

123

Warner

Slide 19; discretionary revenue sources

 

 

 

175

Warner

Slide 20; general fund revenue history

 

 

 

224

Warner

Slide 21; general fund outlook

 

 

 

251

Warner

Slide 22; Governor’s recommended revenue policies

 

 

 

277

Warner

Slide 23; Summary of OR’s revenue system

 

 

 

304

Warner

Slide 24; strengths and weaknesses

 

 

 

390

Warner

End of presentation.

392

Rep. Boquist

Question about 12% projected growth rate stated in slide 21; how confident is Warner in this percentage considering the growth of retirees.

394

Warner

Warner responds that the governor’s proposal to take some of the 12% projected general fund revenue and put it in a reserve is a risk considering the impact of lower taxable income of seniors and their increased medical costs.

TAPE 3 SIDE A

54

Rep. Berger

Requests Warner give a short presentation on Oregon Tax Incidence Model (OTIM) at a future date; summary of OTIM provided.

 

 

 

105

Acting Chair Hass

Meeting adjourned at 2:58 pm

 

Tape Log Submitted by:

Reviewed by:

 

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

 

Exhibit Summary:

  • 1.      Proposed Committee Rules, LRO Staff, 01/13/05, 2 pp.
  • 2.      2005 LRO Staff Specialties, 01/13/05, 1 p.
  • 3.      Revenue Committee Member’s Planning Calendar Summary and sample planning calendar, LRO Staff, 01/13/05, 2 pp.
  • 4.      Draft House Revenue Committee Work Plan, LRO Staff, 01/13/05, 4 pp.
  • 5.      2005 OR Public Finance: Basic Facts, Paul Warner, 01/13/05, 148 pp.
  • 6.      Overview of OR Revenue System (Powerpoint Slides), Paul Warner, 01/13/05, 12 pp.