Frequently Asked Questions (FAQ)

 

Question 2:
A Board of County Commissioners is scheduled to consider and adopt the annual County budget which includes their own salaries. The budget is organized by department, and the Commissioners will review the budget for each department individually over the course of several meetings. Are the Commissioners required to make conflict of interest disclosures prior to discussing sections of the budget that do not include their own compensation?

Answer: It depends. So long as they are not met with other conflicts of interest, the County Commissioners could participate in discussion, debate, or votes on the sections of the budget that do not include their own salary.

Prior to discussion, debate, or votes on the section of the budget that includes their own salary, or if the entire budget is being considered, the Commissioners would need to declare the nature of their actual conflicts of interest.

It is important to remember that because the Commissioners will review the budget over the course of several meetings, the Commissioners are required to declare their actual conflict of interest at each meeting where their compensation is discussed. As a best practice, Commission staff recommends declaring a conflict of interest at the beginning of a meeting because often meetings do not go as planned, agenda orders change, or topics are brought up in places that a public official might not expect. 

 

Question 3:
A City Budget Committee member’s spouse serves on City Council. The budget being considered includes a fund to reimburse City Council members for personal expenses incurred during annual training events. If the Budget Committee member declares their conflict of interest, could they still participate in budget discussions?

Answer: Yes. The Budget Committee member would be met with an actual conflict of interest related to the budget because it includes a fund that would provide a financial benefit to their relative. Because the Budget Committee will provide a recommended budget for the City Council to adopt, the Budget Committee member could utilize the provisions in ORS 244.120(2)(b)(C) to participate in budget deliberations and the vote to recommend the budget to the City Council. At each Budget Committee meeting, prior to discussion of the budget, the Budget Committee member would need to declare the nature of their actual conflict of interest. After stating the nature of their actual conflict of interest, the Budget Committee member could discuss and deliberate the budget and vote to recommend the budget to the City Council.

 

Question 4:
Can school board members use the exception in ORS 244.120(2)(b)(C) to adopt and implement a stipend?

Answer: No. The exception can only be used to adopt local budgets. Voting to approve a stipend is not the same as voting to approve a local budget.

 

Question 5:
Can the school board members use the exception in ORS 244.120(2)(b)(C) to adopt and implement a stipend by adding it to the budget?

Answer: No. The exception in ORS 244.120(2)(b)(C) does not apply to voting on the adoption or approval of new compensation or benefits. Thus, the school board members would be met with actual conflicts of interest and could not use the exception to participate in discussion, debate, or votes on the adoption of new stipends for themselves.

 

Question 6:
A water district is scheduled to review and adopt their annual budget. The board president’s son works as the office manager for the water district. There is a line item in the budget for staff salaries and benefits. Can the board president participate in the review and vote on the budget?

Answer: Yes, the board president could participate in the budget adoption after publicly announcing the nature of their conflict of interest.

 

Question 7:
A water district is scheduled to review and adopt their annual budget. The board president’s roommate works as the office manager for the water district. There is a line item in the budget for staff salaries and benefits. Can the board president participate in the review and vote on the budget?

Answer: No: The exception in ORS 244.120(2)(b)(C) does not apply to household members. If the board president’s roommate is a household member, the exception would not apply.

 

Question 8:
The board president’s spouse has a contract with the fire district to provide them with payroll service. The board president’s spouse is not an employee of the fire district. The fire district board is meeting to review and adopt their annual budget. Money to pay for the payroll services is included in the budget. Can the board president use the new local budget exception to participate in the review and vote of the local budget?

Answer: No. The exception is ORS 244.120(2)(b)(C) does not apply to contracts held by the public official or their relatives. It only applies to compensation or benefits provided by the public body. In this situation, the board president would need to declare the nature of their actual conflict of interest and abstain from discussion or vote on the budget that includes money for their spouse’s contract.

 

Question 9:
What qualifies as a “local budget” as described in ORS 244.120(2)(b)(C)?

Answer: Local Budget Law is found in ORS 294.305 to 294.565. Commission staff cannot determine whether a public body’s budget qualifies as a “local budget” when responding to requests for advice. A public official should consult with their entity’s legal counsel if they have questions about whether their budget qualifies as a “local budget” as described in ORS 294.305 to 294.565.