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                          An Occasional Newsletter

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                                         The Association of Oregon Counties        

Four Weeks In

A month of interesting political maneuvering

February 25, 2011
In This Issue
Government Efficiency Task Force
Enterprise Zones
Kicker Reform
Local Budget Law Bill
Ballot Measure 76
Economic Development
CDBG Grant Classes
Wind Energy
NACo Legislative Conference
Federal Forest Payments Weekly Update
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What to Report...
 

Salem - The Oregon Legislature will enter its second month of the 2011 session next week. Looking back on the first month, it is safe to say (and safety is always a good thing) that legislators have been very busy. A number of bills have been heard, some passed and most await their fate. With two co-chairs for each House committee, it is beginning to appear that some proposed legislation may not see the light of the legislative day this session because there isn't agreement. With the difficult days of trying to balance an out-of-whack budget ahead, it seems Legislators will be kicking some cans down the sidewalk.

 

 

So what do we have to report? Read on - you will be riveted, annoyed, entertained and otherwise engaged in our weekly report. 

Government Efficiency is NOT and Oxymoron

HB 2855, which would reauthorize the Government Efficiency Task Force led by Representative Nancy Nathanson (D-Eugene), with heavy participation from the Association of Oregon Counties, had its first hearing in House General Government Committee on Tuesday morning. 

 

Those testifying in support of the bill included Benton County Commissioner and past AOC President Linda Modrell, along with Representative Nathanson, Beaverton Mayor Denny Doyle, and others. Supporters noted the remarkable dialogue and willingness to explore new ways to structure and refine the way the state and counties deliver services to the citizens of Oregon. Representative Nathanson also expressed her appreciation for the time and resources AOC put into the task force. Several new subcommittees, including Natural Resources, would be added to the next iteration of the task force. It is hoped that a work session will be scheduled sometime in the next several weeks.

   

Enterprise Zones Are Not Just for Star Trek Fans

The House Committee on Revenue will hear two bills, HB 3017 and HB 3494, on Monday February 28, 2011. Both bills would extend the sunset date of the Enterprise Zone Program. It's important for you to weigh in on the importance of enterprise zones and what they have meant to your county. The hearing is scheduled for 8:00 am, Hearing Room A. Contact Ann Hanus at (503) 871-9764 if you are interested in testifying on the bill. Written testimony can be submitted to the committee by sending it electronically to lro.exhibits@state.or.us.

 

Here's the KICKER

The Senate Finance and Revenue Committee kicked off the debate on President's Day about revising the kicker to channel a portion into a Rainy Day Fund. SJR 26 would require mandatory state budget savings by allocating projected revenue growth into three components:

  1.  First segment of growth is allocated to maintain the budget. It is equal to the sum of population growth and inflation over the two prior years.
  2. The next segment is mandatory savings equal to three percent of revenue growth above that necessary to cover population growth and inflation.
  3. The final segment is additional revenue available for budgeting. It is equal to the difference between projected revenue growth and the first two segments.

SJR 26, if enacted by the voters, would place the Oregon Rainy Day Fund in the Constitution. It would retain the current triggers for accessing the fund, and define the revenue sources for the fund:

  1. Ending balance up to one percent of appropriations in the prior biennium
  2. Transfers up to three percent of unappropriated revenue if actual revenue equals or exceeds projected revenue used to calculate the Growth Index
  3. Allocates 50 percent of excess revenue from the two percent personal kicker calculation
  4. Caps the fund at 12 percent and limits withdrawals to 2/3 of the fund beginning balance in any one biennium
  5. Establishes the Oregon Universities Stability Fund and directs the corporate tax kicker into the fund and caps it at 15 percent of General Fund appropriations for universities.

Senate President Peter Courtney (R-Salem) and Rep. Andy Olsen (R-Albany) spoke forcefully in favor of the need to reform the kicker and have a strong rainy day fund to deal with the state's major budget crises. They said the time is now to make the change and the bill's fate was in the hands of the four member Senate Finance and Revenue Committee which includes Sen. Ginny Burdick (D-Portland), Sen. Frank Morse (R-Albany), Sen. Mark Hass (D-Beaverton), and Sen. Chris Telfer (R-Bend). 

 

Curtis Robinhold, Governor Kitzhaber's Chief of Staff, and Darren Bond for the State Treasurer threw in their support. Oregon's major business groups testified together in support of revising the kicker and the need for a rainy day fund; however, they also argued for a capital gains tax cut and spending limits. School advocates and unions support having a rainy day fund but did not agree with a capital gains tax cut or strict spending limits. The committee will have their work cut out for them as they balance these political forces in the weeks ahead.

 

Local Budget Law Bill Gets First Hearing

A bill supported by AOC to update and streamline Local Budget Law received its first hearing Thursday morning in the House General Government Committee. The bill is a product of an interim workgroup that debated over such subjects as publication requirements, thresholds for triggering supplemental budgets, and other technical budget law details. 

 

Participants in the workgroup included representatives from all local governments, including counties, cities, schools, special districts, as well as the Newspaper Publishers Association and the Department of Revenue. Key aspects of the bill that counties may be interested in include the option of posting one of the two required notices of the budget committee meeting on the Web as well as the removal of the requirement to publish separate budget summaries for all funds. Instead, a county can simply publish an overall summary of the budget, outlining the major program areas. AOC Policy Manager Mike Eliason testified in support of the bill, along with the Department of Revenue.

 

CAFFA

CAFFA Hearing

 

And speaking of testifying, Clackamas County Assessor Bob Vroman, Lane County Assessor Anette Spickard and John Phillips from the Oregon Department of Revenue, briefed the House Revenue Committee on the CAFFA program on Tuesday morning.

 

 

 
Fixing BM 76

HJR 29 which would have sent another ballot measure to the voters to "fix"  Ballot Measure 76 (Parks and Wildlife) ran into serious problems this week. HJR 29 would have put into place an agreement brokered between Rep. Dave Hunt (D-Gladstone) and three environmental groups (The Nature Conservancy, Oregon League of Conservation Voters and Trust for Public Lands). Rep. Jules Bailey (D-Portland) and Senator Jackie Dingfelder (D-Portland) also signed the agreement. 

 

The re-referral in HJR 29 would have added the same trigger used for the Educational Stability Fund to access Ballot Measure 76 lottery dollars to use for other state programs during difficult economic/fiscal conditions, placed a fund cap on the amount of lottery dollars for parks and wildlife, included a sunset of 2035, and significantly reduced the amount of funding for local watershed grants.  

 

At a hearing on Tuesday February 22, Watershed Councils, Soil and Water Conservation Districts, Trout Unlimited, and the Cattlemen's Association testified in opposition to HJR 29, expressing concern about the diversion of funding for local watershed projects to funding state natural resource agency programs. The Oregon Parks and Recreation Association asked that other groups such as parks who were not party to the agreement be included in discussions regarding language in the bill.  

 

Eco Devo Briefing

Columbia County Commissioner Tony Hyde testified on February 15 before the Senate Business, Transportation and Economic Development Committee on barriers and opportunities to economic development. He highlighted AOC principles and emphasized the importance of working as a partner with the state, the Regional Solutions/ERT, and the need for enterprise zones and incentives. He commended the Governor's budget.  He emphasized that counties have different needs and the importance of economic development for both urban and rural counties.

 

An Invitation to CDBG Grant Classes

The Oregon Business Development Department (OBDD) invites you to attend the 2011 Community Development Block Grant (CDBG) workshops in March. They will have both applicant and a grant management handbook training. Details can be found on the AOC Website.

 

Also from OBDD - The Oregon Business Development Department's (OBDD) Infrastructure Finance Authority (IFA) has received U.S. Housing and Urban Development (HUD) approval for the state's Community Development Block Grant (CDBG) 2011 Method of Distribution (MOD). The MOD is available by request in hard copy and will also be posted on our Website very soon.

 

The department does plan to accept CDBG applications for the 2nd quarter competitive application round. The deadline for submittal of an application is June 30, 2011. Please work with the regional coordinator for your area if you anticipate submitting an application. If you have questions, feel free to contact AOC's Ann Hanus because she knows a lot about this stuff. 

 

And a Final Word on WIND
Mike and Jeanney McArthur

Jeanney and Mike McArthur Basking in the glow of the red lights of the wind towers in Sherman County

On Thursday, AOC Executive Director Mike McArthur testified at the Joint Ways and Means Sub-committee on Natural Resources chaired by former Lincoln County Commissioner, Rep. Jean Cowan (D-Newport). McArthur spoke in favor of the Oregon Department of Energy's (ODOE) proposed budget.

 

He said the department has evolved over the years to become "a significant agency that has a major impact on Oregon's economy through the development of clean energy and conservation." He also reflected on the work of the Renewable Energy Workgroup from 2006 -2009 which he chaired, the Smallscale Energy Loan Program Advisory Committee of which he is a member, and his experience with wind farms in Sherman County where he and Jeanney now "bask in the red lights of 500 Megawatts of wind generation capacity." The AOC Wind Energy Siting Guidelines task Force report was handed out to the committee.

Off to DC - NACo Conference
The 2011 NACo Legislative Conference will begin March 5th.  AOC has scheduled visits with all but one of Oregon's Congressional delegation on March 3rd. For more information about the NACo Conference and the Congressional visits, please feel free to contact Cara Fischer or call Eric Schmidt at 503-481-0675. 
Federal Forest Payments Weekly Update
The Congress of the United States has been in recess for the past week. This has given the Partnership for Rural America Campaign an opportunity to work on setting up appointments with Congressional offices during the week of March 7th for the Campaign's Fly-In. This is when county and school officials from across the country will meet with members of Congress and their staff and lobby for the long-term reauthorization of the Secure Rural Schools and Community Self-Determination Act. Douglas County Commissioner Joe Laurance, Lake County Commissioner Dan Shoun, Polk County Commissioner Craig Pope and Curry County Commissioner Bill Waddle will represent Oregon at the Fly-In.

 

Thanks for involving AOC in a part of your busy day by digesting Oregon Trails.    

Have a great weekend!

 

Laura Cleland
Association of Oregon Counties
503-585-8351