Senator Devlin's April Newsletter

Dear Friends and Neighbors, 

Conversations here in Salem are heating up alongside the weather. Legislators are in the midst of discussing issues ranging from mental health care to scenic waterways. Meanwhile, the Senate has passed a number of bills that I proudly supported: 

• SB 558A increases access to Oregon’s Foreclosure Avoidance Mediation Program (FAMP), giving at-risk homeowners the ability to request mediation with their lender;
• SB 569A streamlines the medical credentialing required for health care providers to provide telemedicine services, increasing access to affordable medical services statewide; 
• SB 692A increases energy efficiency standards for household appliances and plumbing equipment. New efficiency standards will save consumers money on energy bills and bolster Oregon’s conservation goals.

 
Agency Budgets in Ways and Means

As the legislature moves beyond the mid-point in this legislative session, a number of bills have passed out of policy committees and moved into the Joint Committee on Ways and Means, which I co-chair. The committee crafts the state budget and is comprised of seven Subcommittees: Capital Construction, Education, General Government, Transportation and Economic Development, Public Safety, and Natural Resources.

 
The Subcommittees review two types of bills: agency budget appropriation bills and policy bills referred to Ways and Means. Agency bills appropriate funds to state agencies for the 2013-2015 biennium. About ninety state agencies are subject to budgetary review this session. 

The Ways and Means process for analyzing state agency bills is divided into three phases. All state agencies participate in phases I and III, while agencies selected by the Co-Chairs, Subcommittee Co-Chairs and Presiding Officers participate in phase II.  

Phase I: Subcommittee members are briefed on the complex facts surrounding each agency budget during phase I. Every state agency must present to their assigned Subcommittee at a public hearing. Agency presentations focus on topics such as the agency’s short and long term goals, major budget drivers, how the agency uses its budget, and what outcomes the legislature can expect from the agency’s budget request. Legislative Fiscal Office (LFO) analysts also brief legislators on major budget issues within each agency. Phase I was completed in mid-April. You can find many agency presentations via each Subcommittee’s OLIS webpage. 

Phase II: In this phase, some agencies with more complex budgets provide in-depth presentations to their assigned Subcommittees. Subcommittees recently began this phase, which will extend into early May. 

Phase III: Work sessions are held on each agency bill during the final phase of the process. The Subcommittees use these work sessions to review bills, make technical amendments, and provide budget recommendations to the full Ways and Means Committee. Subcommittees can send the Co-Chairs a “Do Pass” or “Do Not Pass,” recommendation, or refer the bill to the full Ways and Means Committee without recommendation. 

Beginning in mid-May, the full committee will review final agency budgets and agree upon budget recommendations. The full committee is comprised of 26 legislators who represent the seven Subcommittees. Once the committee determines 2013-2015 agency budgets, their recommendations are sent to the Senate and House chambers for a vote. 

The Capital Construction Subcommittee

I would also like to discuss the Capital Construction Subcommittee, of which I am a member. Capital Construction is charged with issuing bonds for major construction, remodel, and improvement projects. Each legislative session, millions of dollars in bonding are requested by various entities. Examples of bonding programs considered by the Subcommittee include higher education building projects, seismic upgrades for schools and other public buildings, and water development projects. The major bonding bill this session is SB 5506. 

Bonds are primarily funded with General and Lottery Funds.  The state currently has $2.9 billion in outstanding General Fund supported bonds. Each year, five percent of General Funds are allocated to pay debt service on outstanding bonds. The state also has $1.1 billion in outstanding Lottery Fund supported bonds. No more than twenty-five percent of net lottery revenues can be issued for bonds each biennium. Based on the March Revenue Forecast, $902 million is available in General Fund bonding for the 2013-2015 biennium, and $151 million is available in Lottery Funds. However, it is fiscally prudent to issue significantly less funds for bonds. 

This session I sponsored SB 551, which would establish a task force to review the Capital Construction process. The task force would be responsible for creating an inventory of state owned buildings and tracking their condition. It would also be charged with recommending a long-term process for determining Capital Construction needs that better aligns with the state’s overall budget process and priorities. A major goal of the task force would be to increase the transparency and accessibility of the process for the public. I am looking forward to discussing this bill with my Ways and Means colleagues later in the session.  


If you would like to learn more about bonding and debt capacity in Oregon, I encourage you to review the Treasury's presentation to the Capital Construction Subcommittee on the State Debt Policy Advisory Committee's 2013 report.

The June Revenue Forecast 

An important factor in crafting the state budget and the amount of bonds the legislature can issue this session is the June Forecast. Four times a year, Oregon’s Office of Economic Analysis releases both a revenue and economic forecast for the state. The revenue forecast projects the state’s tax and lottery revenues for both the current biennium and three future biennia. The economic forecast looks at economic trends here in Oregon, nationally, and across the globe. This year the forecast will be released on Thursday, May 16, 2013 in conjunction with a Joint Revenue Committee hearing.

If you would like to read the forecasts in their entirety, you can find them posted on the Office of Economic Analysis’ website.  I also encourage you to watch the Joint Revenue Committee hearing. You may watch it here in the Capitol or on the Legislature's website.

Events around the Community 

On March 29th, the Presiding Officers allowed legislators an in-district day to visit with constituents. I spent the day in the central portion of District 19, visiting the Lake Oswego Chamber of Commerce, the Lake Oswego Adult Community Center and the Clackamas County League of Women Voters. I had the opportunity to discuss a wide range of issues throughout the day, including electoral system reform, K-12 funding, and delivery meals for seniors. It was a pleasure to spend a day outside of Salem connecting with all of you.

I also co-hosted a Town Hall and Open Forum with Congressman Schrader at West Linn High School on April 22nd. I appreciated having the opportunity to hear your questions and concerns. Topics addressed included state and federal budgeting, tax credits, college tuition costs, and business development. We were fortunate to have the assistance of the West Linn High School Lobby Club. The student group is active in politics and helped facilitate the event.

Finally, I have been busy traveling throughout the state for the Ways and Means Road Show. Within two weeks, my fellow Ways and Means members and I heard public testimony in Ashland, Eugene, Bend, Hermiston, Portland, and Tillamook. At least 100 and as many as 200 people attended each event, many of whom gave thoughtful testimony on spending priorities for the committee’s consideration.

Thank you for taking a few minutes to read my newsletter. Please feel free to contact my office at any time to share your questions and concerns. 

Sincerely,

Senator Richard Devlin

Senate District 19