Salem - What was supposed to be a one-day Special Session of the Oregon Legislature turned into a three-day marathon the week of September 30th. When the dust settled, several key pieces of legislation had been passed and the Governor seemed pleased to be able to say he helped engineer a successful legislative process. The comparisons to what is now happening in Washington, D.C. weren't lost on many observers. We will have a detailed accounting of the Special Session in this edition of Oregon Trails along with many other items of interest.

The Oregon Capitol building celebrated its 75th anniversary during the Special Session. Candles were lit on the dome to commemorate the occasion.

When the candles burned down, this is what the Capitol looked like after the Special Session...

Just kidding. This is a historic photo of the Capitol Building that burned in 1935, leading to the construction of the current building.

Special Session 2013

How the Grand Bargain affects counties -

The Legislature spent three days in what is officially titled the "2013 First Special Session" to reach the intended goal of passing all five bills in the "framework" or "grand bargain" negotiated by the Governor and legislative leadership. On the Thursday and Friday preceding the special session, the Joint Interim Committee on Special Session took testimony on the five bills of the framework and heard the Governor repeat that he would not sign any of the bills unless all of them passed. AOC supplied testimony in favor of the framework and features of all five bills that were of direct interest to counties.

Here, by bill, is what the framework brought to counties.

Senate Bill 861A

(long-term savings to PERS)

SB 861 limits COLA in addition to limitations set under SB 822. Until July 1, 2014, COLA will be set at 1.5 percent as prescribed by SB 822. After that, the COLA will be limited to 1.25 percent on the first $60,000, thereafter .15 percent. Additionally, every PERS retiree will get a 'supplemental' payment of .25 percent, not to exceed $150, on an annual basis. For those receiving less than $20,000, they will receive an additional .25 percent.
Payroll rates will NOT be modified this biennium to reflect the impact of SB 861, as the estimated savings (2 percent) effectively offsets the additional rate collar adopted under SB 822. The additional rate collar will be eliminated. Therefore, there will be no further rate adjustments this biennium, even for those jurisdictions that did not receive the full 1.9 percent reduction because it would have reduced rates below the FY 11-13 levels.
The estimated savings is $5 billion in the unfunded actuarial liability (UAL). Rates are still projected to rise in FY 15-17, but will thereafter stabilize at a level approximately 2 percent lower than would otherwise have been the case.
SB 861 has a provision providing a direct appeal to the Oregon Supreme Court, and litigation over that will likely be joined with the pending lawsuit over SB 822. The Court has appointed a special master who has scheduled a hearing on November 18. The Supreme Court will likely hear oral arguments next spring, with a decision in the summer.
County-by-county level savings will be determined through analysis by PERS actuary firm Milliman.

Senate Bill 862A

(savings to PERS by particular actions)

Excludes certain salary increases to pay for insurance coverage from calculation of final average salary for members of the Oregon Public Service Retirement Plan.
Distribution payable to a PERS member who is convicted of a felony is subject to execution, garnishment, or other process to collect a money award in the criminal action, but limited to restitution or a compensatory fine.
Modifies retirement options to legislators. Provides expedited review by the Supreme Court.

Senate Bill 863

(preemption of local regulation of agricultural seeds and products)

Reserves to the State regulation of agricultural seed, flower seed, nursery seed, and vegetable seed, and their products. Exempts election on Jackson County initiative ordinance on May 20, 2014. Exempts from the preemption lands owned by the local government. Declares an emergency.
Saves for counties $300,000 to $500,000 per year to implement and enforce these regulations as a county program. For counties, avoids retaining an expert on the science and genetics of seeds; administrative support staff and work space and equipment; field staff trained in recognition and enforcement and the means to be in the field; an administrative procedure to deal with code violations; and public information and similar notices. In addition, avoids hard-to-estimate, but inevitable legal action against the program.
The bill is broadly written, but Legislative Counsel found that the preemption did not apply to local tree ordinances and ordinances intended for a general purpose, such as land use planning and noise control. The measure's provisions will be clarified by rulemaking of the Department of Agriculture.

House Bill 3601A

(revenue)

Makes changes in the income tax code to raise certain revenue and reduce certain tax rates.
Incrementally increases the cigarette tax over five years. Distributes that revenue to the Oregon Health Authority for mental health programs. Results in revenue to mental health programs of $21 million in 2013-15; $30 million in 2015-17; and $31 million in 2017-19.

House Bill 5101

(appropriations from new revenue as a result of HB 3601A)

$140 million to education programs.
$5.8M to children and young adult mental health.
$4.2M to community-based, coordinated adult mental health crisis services.
$10M for programs such as supported housing and peer-delivered services to the mentally ill.
$10M to Oregon Project Independence (seniors).
$5M to elderly and disabled transit.
$26M to the Emergency Board for senior services and programs, such as services of local Area Agencies on Aging, improving treatment for older adults with mental illness, and backfilling Quality of Care Fund.

As noted, this was billed as the "2013 First Special Session (emphasis added), which means there could be another one or two before the 2014 Regular Session begins in February. Stay tuned.

Federal Government Grid Locks

The United States Government is officially shut down as this edition of Oregon Trails is prepared. News reports from Washington, D.C. indicate the standoff that led to the shut down is far from being resolved in a timely fashion. Needless to say, the shut down is impacting Oregon counties.

This is a partial list of impacts available to AOC:

For the U.S. Department of Housing and Urban Development (HUD) - Any money awarded for CDBG/HOME programs can still be drawn down, and CDBG disaster funds can also be spent.
For the U.S. Department of Commerce Economic Development Administration- services and activities have been suspended.
For the U.S. Department of Labor - Any money awarded for Workforce Investment Act (WIA) programs prior to October 1^st can still be spent, however future awards have been suspended due to the shutdown. Unemployment Insurance (UI) checks will still continue to be disbursed.
For the U.S. Department of Transportation -Although Public Transit has secured federal grants for the new fiscal year, since the Federal Transit Administration (FTA) is greatly affected by the shutdown (501 of its 529 employees are on furlough), the draws ODOT requests to cover county reimbursements cannot be processed. Unfortunately, this means that ODOT will be unable to make payments on reimbursement requests for federal funding until the FTA returns to work. ODOT will continue to disburse state-funded payments (quarterly STF payments have been processed), but ODOT will not be processing reimbursements against federal grants at this time.

If the shut down lasts much longer, this list will surely grow.

SRS Reauthorized (again)

As you are no doubt aware the Secure Rural Schools and Communities Self-Determination Act of 2000 (SRS) was extended for one year at 5 percent less than the 2012 authorized and appropriated level in the Helium Bill. Rocky McVay of the Association of O&C Counties has prepared what is the best guess on what Oregon Counties will receive in National Forest Service SRS payments in Federal Fiscal Year 2013. (You might also want to factor in the sequestration reduction of anywhere between 5 percent and 8 percent into the equation but only if Congress does something and that is wishful thinking.)

BIG CAUTION: Read the "Caveats" in Rocky's document. If you have any questions or think the estimated amount might be accurate, please contact Rocky or AOC staff Gil Riddell or Eric Schmidt.

We are waiting for clarification for the counties required elections and project selection of Title II and Title III. The deadline for those actions passed September 30th. As information becomes available, AOC and O&C will do everything we can to get the word out. Right now, our best advice is to be patient because everything seems to be subject to change.

A Seat at Oregon's Kitchen Table

A message from Greg Wolf:

Oregon is moving from a system where local communities adjust priorities to fit within existing bureaucratic structures to one where government adjusts its structure to support and address local priorities. Oregon took its first steps towards this vision with the creation of Community Solutions Teams during Governor Kitzhaber's first term. In 2011, we moved closer by establishing 11 Regional Solutions Advisory Committees and 6 Regional Solutions Centers that bring together multiple state agencies, non-profits, businesses and citizens to foster collaboration and empower local decisions. House Bill 2620 builds upon that work - requiring state leaders to develop a framework that further aligns state economic and community development programs to support the local priorities developed by the Regional Solutions Committees and local community leaders.

We are inviting you to provide feedback for the state to support their effort. Here's a link to how you can provide that feedback:

http://oregonskitchentablesurvey.org/survey/pm/okt?list=23

You'll also have an opportunity to indicate your interest in further participation in discussions about state service alignment.

So please take a seat at Oregon's Kitchen Table. You can be assured of anonymity; your answers will not be connected to your name or any identifying information in any reporting. Also, please forward this link to others you believe will provide helpful feedback to the state. More information about the state's effort to align services with regional priorities can be found on the Statewide Projects website. This study will remain open until October 17th, so please provide your feedback before then.

Sincerely,

Greg Wolf

Director, Regional Solutions

Office of the Governor

Remember the Regular Session?

During the regular session of the Oregon Legislature, a budget was passed among other things. That budget impacts counties. If you are interested in digesting the details, the Legislative Fiscal Office (LFO) publication, Budget Highlights: 2013-15 Legislatively Adopted Budget, is now available on LFO's website under the "Recent Publications" subheading. This document is available only in electronic format.

http://www.leg.state.or.us/comm/lfo/

If you find any hidden surprises, please let the Oregon Trails staff know and we'll do some diligence.

Early Learning Council

Representatives from the Early Learning Council (ELC) testified in front of the House Human Services Steering Committee during the Legislature's interim days in September. The ELC discussed the application for hub process: 19 entities applied to be one of the seven first round hubs. The applications represented all 36 counties. The ELC is currently going through the process of reviewing applications and will announce the first round of hubs sometime around Thanksgiving. The application process for the second round of nine hubs will start sometime in early 2014. All sixteen hubs will be up and running July 1st, 2014 at which point all funds will be flowing to the hubs rather than the counties.

Please note: Ashley Horne is AOC's newest Policy Manager. She has taken over the Human Services portfolio from Mark Nystrom who is now responsible for Energy, Environment and Land Use issues.

Lottery Fund Information

An important message from AOC Deputy Executive Director Cara Fischer:

County leaders and staff:

For the last two years your county has been required by statute to report county expenditures of lottery funds on the state's government transparency page. Please forward this message to the appropriate person at your county for completion of this annual task.

Similar to last year, the state provides an on-line form for counties to enter data:

http://www.oregon.gov/transparency/pages/CountyDataEntry.aspx

In addition, the state makes available a data dictionary that counties may use to guide entries:

http://www.oregon.gov/das/cio/documents/DATA-DICTIONARY-HB-3188-V2.pdf

Should you need assistance with getting your county's information posted, contact state staffer Gene Newton at gene.newton@state.or.us

The reporting deadline is October 31, 2013. Consistent with last year, if your county need more time to adequately prepare the report please contact Mr. Newton to set an alternative date for submission.

Thank you for your attention to this requirement. Please let me know if I may further assist.

Cara

Commercial Break

Nothing here. Sometimes you just need a

break from all the information.

Building Codes Rules

The Building Codes Division recently adopted a temporary rule and posted a notice of rulemaking amending the requirements municipalities must follow when seeking authorization for a local amendment to the state building code. For more questions, contact AOC Staff Mark Nystrom.

WIR Meeting

The Western Interstate Region (WIR) of NACo held its annual Fall Board meeting late last week at Colorado Mesa University in Grand Junction, Colorado. Tillamook County Commissioner Tim Josi, who serves as NACo's West Region Board Member attended the meeting along with Oregon's WIR Board Representatives Malheur County Judge Dan Joyce and Jackson County Commissioner Doug Breidenthal and AOC Executive Director Mike McArthur.

The WIR Board reviewed the annual budget and set legislative priorities for 2014.

There was a great deal of discussion surrounding PILT (Payments in Lieu of Taxes) and the National Endangered Species law. There will be a full report on the WIR Board actions in the next edition of the NACo newsletter.

Informational sessions included Dr. Vince Mathews, a Colorado geologist on worldwide competition for natural resources.

There was a presentation from the Colorado Federal Mineral Lease District and Colorado Federal Mineral Lease District Act and a discussion of the problems surrounding the regulation of genetically engineered seeds and crops.

CRC Still Alive

The Columbia River Crossing (CRC) project is still alive, although its future prospects are still very much uncertain. The Coast Guard has issued a key permit on the height of the bridge. For more information on the project that could bring the Legislature back to Salem for another special session yet this year, please visit this link.

ConnectOregon Funding Program

Applications for the ConnectOregon multimodal transportation funding program are available as of Monday, October 7th on the ODOT website. Completed applications are due back November 25th. The 2013 Oregon Legislature approved $42 million in lottery-backed bonds for the fifth round of ConnectOregon funding.

ConnectOregon V funds will be distributed to air, marine, rail, transit and bicycle/pedestrian projects statewide; funds cannot be used for highway projects. ConnectOregon includes both grants and loans for private sector applicants, municipalities, cities, counties, governing organizations, and other transportation-related entities. No less than 10 percent of the funds must be distributed to each of five geographic regions of the state, provided there are qualified projects in the region. Criteria for qualified projects include readiness for construction, economic benefit and value in linking transportation modes.

If you need any clarification on all this, please contact Ann Hanus at AOC.

Alternative Fuel Vehicle Revolving Loan Fund

Implementing Senate Bill 583 (2013)

SB 583 creates the Alternative Fuel Vehicle Revolving Fund. The bill authorizes the Oregon Department of Energy to provide loans to public entities and tribes to assist in the purchase of new alternative fuel vehicles and for the conversion of existing vehicles that use gasoline or diesel to alternative fuel vehicles. The loans for new alternative fuel vehicles provide funding for the additional cost of purchasing alternative fuel vehicles as compared to vehicles that are not alternative fuel vehicles. The bill specifies that funding priority be given to vehicle conversions.

For a FAQ about this program please see this document showing which Counties are eligible for these funds. For more information contact Paul Zollner, ODOE Loan Program Manager, 503- 378-3493.

PSU Gets Big Grant

Portland State University's transportation research and education center has been given a $2.83 million federal grant to expand the National Institute of Transportation and Communities (NITC) program. It is a livable communities grant and you can read more about it here.

NACo Drug Discount Program

NACo Discount Drug Program

Places To Go, Things To Do, Great Opportunities

Opportunity Knocks. The Governor is poised to appoint a State Fair Council to transition the State Fair into a public corporation. Interested applicants should contact Ann Hanus at AOC or Andrea Fogue at the state in the next week. It's a four year term, with a commitment of at least two days a month. We need a county person on that Council.

The 2013 Council of Development Finance Agencies (CDFA) Roundtable Conference has been scheduled for November 12 at the World Trade Center in Portland. The topic this year is Exploring Development Finance in the Beaver State. For more information and registration information, click here.

NACo has launched a significant upgrade to the NACo Grants Clearinghouse which offers almost ten times as many grant opportunities for counties. For information on the upgrade and what it can mean for your county, please see this NACo release.

Changes at AOC

There is nothing constant in this life but change and that is so true here at your Association of Oregon Counties.

Deputy Executive Director Cara Fischer has announced that she is retiring from AOC following the Annual Conference in November. "As much as I have enjoyed working with all of you," she says, "I'm looking forward to travel, volunteer opportunities, time at the wine shop I co-own with friends and starting to dig through a pile of about 60 books I've been wanting to read!"

Policy Manager Ann Hanus announced her retirement effective at the end of the year. She says, "It's time to start a new adventure, explore places I've always wanted to see, deepen friendships, and contribute where I can make a difference."

Legal Counsel Mike Eliason has turned in his resignation. On November 1st, he'll be joining the Associated General Contractors (AGC) as a lobbyist and counsel. Mike told us, "While I am excited about the new opportunity, this was an extremely tough decision as AOC has been a central part of my life over the last 5 1/2 years. I very much believe in the great folks in county government who deliver important services every day, and will miss that interaction."

Cara, Ann and Mike have pledged to help the survivors at AOC with a smooth transition. While no one can replace any of them, and we will miss their skills and personalities, we surely wish them a bon voyage and good luck in their future endeavors.

Your friends at AOC will miss you Cara, Ann and Mike.

Meeting With a Purpose

The award for the most unusual District meeting place this year goes to District 3. Hood River, Gilliam, Morrow, Sherman, Wasco and Wheeler Counties held their annual meeting at the Washington Family Ranch, Young Life Camp in Wasco County. It is a beautiful, albeit remote location with a wonderful staff and facility.

Some of you may remember the Young Life Camp in days past when it was known as Rajneeshpuram. The transformation from the Bhagwan days is remarkable. Some of the "boys" from District 3 participated in a go-cart race when the meeting was over. There were no reports of any crashes or injuries so we assume the race went as well as the meeting.

Please feel free to submit your story ideas, announcements, recipes, photos and job changes to your Oregon Trails staff for inclusion in the next riveting edition.

Your Oregon Trails staff,

Laura Cleland & Eric Schmidt

Association of Oregon Counties

503-585-8351

Have a great week.