Oregon Trails

An Occasional Newsletter

from

The Association of Oregon Counties

The End is Near 

but don't plan a Sine Die party just yet 

June 24, 2013

The Senate Rules Committee considered two non-controversial bills Monday that address a county's inability to provide minimal public services. Each bill had already passed the House with ease. 

House Bill 2206A would do three things. First, after a Governor's declaration of emergency, it would permit the Department of Revenue to provide the county's property tax administration services, charging that county's state assessment and taxation fund grant, then its non-dedicated state-shared revenues, and then seek funds from the legislative Emergency Board. Second, again after a Governor's declaration of emergency, it would permit the Secretary of State to assume the county clerk's duties, and seek funding from the Emergency Board. Third, it would require funds retained by the Department of Veterans' Affairs out of the distribution to the county without a veterans' service officer to be spent to provide those services in that county.  

The other bill is House Bill 3404 to provide some measure of flexibility to distressed county funding of property tax administration. The bill extends to fiscal years 2013-14 and 2014-15 the law that permits a county dependent on federal county payments to retain its grant from the County Assessment Function Funding Assistance Account, if it reduces expenditures on property tax administration by 15 percent or less and - the "big if" - it maintains compliance with laws of equality and uniformity in the property tax system. A dependent county is defined as one receiving payment from the Secure Rural Schools Act in fiscal year 2007-08 equal to at least 10 percent of its property tax revenues for that year.

Both bills are expected to pass the Senate. 

The county fiscal distress measure most anticipated is House Bill 3453, which would grant the Governor certain powers within a distressed county. It remains in the House Rules Committee subject to extended discussions, the last version of amendments being the dash-11. We will report when it surfaces for action.

Deliberations on House Bill 3194, the public safety reform bill, continue between legislative leaders and public safety officials. Most of the issues are around the funding that is tied to the bill, including the incentive fund to counties, which four county commissioners helped craft in a work group that met over the past several months. One of the commissioners, AOC President Mary Stern from Yamhill County, weighed in with a message to co-chairs for the Legislature's Joint Committee on Public Safety and Joint Ways and Means Subcommittee on Public Safety.

"AOC stands at the ready to use incentive funds, if available, to help control the need for the state to build new prisons," said Stern, a former U.S. Department of Justice attorney now in her third term as Yamhill County Commissioner. "As you know, commissioners and community corrections directors have worked diligently since 2005 to implement evidence based programs."

Measure 11 crimes have been removed from House Bill 3194 in recent amendments.  Modifications to the voter-approved ballot measure have been the most controversial piece of the bill. The Oregon District Attorneys Association and the Oregon State Sheriffs Association were opposed to any changes to Measure 11 and Measure 57. On the other hand, another AOC affiliate group, the Oregon Association of Community Corrections Directors, weighed in in favor of the bill as introduced with all 19 policy options presented by the Governor's Commission Public Safety. 

House Bill 3521, a voter registration proposal from Secretary of State Kate Brown, was narrowly advanced by the Joint Ways and Means Committee last Friday after Senate President Peter Courtney replaced Sen. Betsy Johnson to cast the deciding vote. The bill would allow public agencies (currently only the Department of Motor Vehicles) to automatically register eligible voters dating back to 2008 records. AOC is opposed to the bill for several reasons, the principal reason being the cost associated with the proposal. AOC membership instead recommends a work group be put together in the interim to further explore the concept.

House Bill 2348A--Public Health Task Force Bill     

The Ways and Means Subcommittee on Human Services held a work session on HB2348, the Public Health Task Force bill. The intention of the fifteen member task force is to look at the future of public health in Oregon. During the hearing Rep. Tim Freeman (R-Roseburg) voiced concern about any task force that referred to regionalization. He stated that regionalization efforts often take control out of the hands of locals. Several members of the committee emphasized that this is a valid concern and they encouraged the task force to keep the rural nature of Oregon in mind. The bill was moved to the full Ways and Means committee.

The bill then was heard at the full Ways and Means Committee with Representative Freeman re-iterating his concerns and Sen. Doug Whitsett (R-Klamath Falls) agreed, voicing a concern about access to public health services. Sen. Elizabeth Steiner Hayward (D-Beaverton) and Sen. Alan Bates (D-Medford) both stressed that they would like to see public health move away from providing direct services and focus on what public health is mandated to do. The bill passed the Ways and Means committee and now moves to the Senate Floor.

Senate Bill 457  

The Ways and Means Subcommittee on Human Services held a public hearing on SB 457. The bill requires private insurance companies to reimburse counties for insured people who are incarcerated as long as they have continued to pay their premiums. Several sheriffs and county representatives testified in favor of the dash-5 amendments. However, the committee ultimately decided the bill needs more work and suggested the bill be re-introduced in the 2014 Session.

House Bill 5030

The Ways and Means Subcommittee on Human Services held a public hearing on HB 5030, the Oregon Health Authority Budget bill. The committee focused on the Addictions and Mental Health Department (AMH) budget. A link to the budget can be found here.  Highlights include: 

• 34 percent increase in Community Mental Health Total Funds
  • 2011-13 level was $434.6 million and 2013-15 level is estimated at $582.3 million.
• 3 percent increase in Oregon State Hospital Total Funds
  • 2011-13 level was $371 million and 2013-15 level is estimated at $382.2 million.
• See pie charts on pages 722-723 of this link for 2011-13 LAB and 2013-15 GRB
• $2.7 million of Junction City operating costs for the last 3 months of 2013-15 biennium
  • equates to $900,000 per month; this seems to be based on only a portion of Junction City's 172 beds; it is not clear how many beds will open in 2013-15.
• The combined general fund bond service costs for both Salem and Junction City Oregon State Hospital sites is $70.9 million general fund and $81.5 million total funds. 
• The budget includes $7.24 million of general fund for three residential treatment homes in Pendleton, on the Eastern Oregon Training Center campus; this amount would fund 40 FTE (Blue Mountain Recovery Center FTE is currently about 100); BMRC is slated for closure in January 2014.
• Total Funds for AMH, 2011-13: $999,262,815 and 2013-15 = $1,000,206,700

What makes AMH budget "bigger," even though total funds only increased by less than $1 million ($943,885)?

Answer:  The transfer of Medicaid funding to the Division of Medical Assistance Program for the 2013-15 biennium. This transfer totals $68 million general fund and $183 million total funds. Once this is accounted for, the recommended general fund budget is 11.8 percent higher than 2011-13, and total funds are 18.4 percent higher.

Senate Bill 5529-Department of Human Services Budget

The Department of Human Services Budget, the last of the big human services budgets, will have a work session on Monday afternoon in the Ways and Means Subcommittee on Human Services. At the time of this writing, no budget information has been posted. However, it will be posted here later in the day.

House Bill 2087B 

HB 2087B passed through the Ways and Means Committee and now moves to the House and Senate Floor. HB 2087 authorizes a designee of a local correction facility, Department of Corrections institution or a youth correction facility to apply for medical assistance on behalf of a person residing in the facility. HB 2087B also includes HB 3526 as an amendment. This amendment changes the planning requirements for public health, mental health and Coordinated Care Organizations so that the Oregon Health Authority can allow more flexibility in planning.

House Bill 2013 and Senate Bill 5518-Early Learning Bills 

These two bills, part of the Early Learning and Youth Development slate of bills, passed through the full Ways and Means Committee and now move to the House and Senate Floors. HB 2013 moves the Early Learning Council forward creating seven hubs in the first year of the biennium and nine the second year. SB 5518 is the related budget bill that includes funding for the Early Learning Council and the Youth Development Council. This bill specifies that all funding streams formerly funded through the local commissions on children and families will continue to flow through the counties. 

HB 3231, which establishes the Youth Development Division in the Department of Education and HB 3234 which establishes the Early Learning Division in the Department of Education, are expected to be heard by the Ways and Means Committee on Wednesday. For more information, contact AOC Staff Mark Nystrom.

From the Business Oregon newsletter:  

County Representative on the Public Transportation Advisory Committee Needed!

The Interior Department has issued payments of $399.8 million to approximately 1,900 local governments under the Payment in Lieu of Taxes (PILT) program. The PILT program seeks to compensate local jurisdictions for non-taxable federal lands and payments may be used for any governmental purpose, including important community services such as emergency response, public schools, and roads. The total of $399.8 million is the largest amount ever distributed under the PILT program, exceeding last year's payments by about $7 million.

The 2013 authorized level is $421.7 million, which was reduced by $21.5 million due to sequestration. After administrative expenses, a total of $399.8 million is allocated for payments to counties.  

You can find a national press release and tables with state and county amounts here. 

A full list of funding by state and county is available at http://www.doi.gov/pilt.  

Information provided by the U.S. Department of the Interior. 

The Extension Citizens Advisory Network (ECAN) is a statewide advisory and advocacy group that works with the office of the director of the OSU Extension Service, based at Oregon State University. The network represents every county through appointments of citizens recommended by OSU field faculty. In addition, AOC appoints two of its members to represent the west and east sides of Oregon, as separated by the Cascades range.

The network meets two times a year in person and throughout the year by conference call. The appointments named by AOC serve a four-year term. Benton County Commissioner Linda Modrell has served as the west side AOC appointee for the last several years. Commissioner Mike Weimer from Gilliam County serves as the east side AOC appointee. 

AOC President Mary Stern is seeking a county commissioner from the western half of the state to be named to the network for a new four-year term. If you are interested in serving, please contact Cara Fischer, 503.585.8351 for more information.