Legislature adjourns on time and on budget

Rep. Mike McLane

Rep. Mike McLane

With a 30-30 tie in the House, a closely divided Senate, and a third term governor, no one expected the 2011 Legislature to produce much. But like my colleagues, I was committed to working together to move Oregon forward and I think we did that.

  • We balanced the budget without raising taxes, and we slowed the growth of government spending.
  • We passed major education reform that will give more options to parents seeking better opportunities for their children.
  • There’s still work to be done on creating an environment where the private sector can create jobs, but I’m pleased that we extended our enterprise zone program and connected our tax system to the federal code to allow businesses to take advantage of tax benefits passed by the U.S. Congress.
  • Another major accomplishment was the passage of both legislative and congressional redistricting maps. For 60 years , the legislature had deadlocked. While I’m not completely happy with the changes to my district, we worked together and passed the maps without a long legal battle.
  • I sponsored 18 bills that passed the House and Senate but there’s more that needs to be done to put people back to work and I’m looking forward to coming back in February. My position on the Emergency Board will give me the opportunity to keep watch on the state budget and make adjustments as necessary. Read More »

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The session went well

Rep. Dennis Richardson

Rep. Dennis Richardson

The 2011 Oregon Legislative Session ended Thursday, and the House co-governance model negotiated by the House Republicans and Democrats worked remarkably well.

Under Oregon’s 2011 House co-governance model, the 30/30 Republican / Democrat split resulted in equal power sharing in all House capacities including Co-Speakers of the House, Co-Chairs of Ways & Means and all other House committees. In addition to having co-chairs, every committee had an equal number of Republican and Democrat members.

All proposed legislation was assigned to a committee by mutual consent of the co-speakers, Bruce Hanna (R-Roseburg) and Arnie Roblan (D-Coos Bay). If the co-speakers could not agree on which committee to assign a bill, it was automatically assigned to the Rules Committee.

Once assigned to a committee, no bill could receive a public hearing or a work session unless it was approved by both co-chairs of that committee. Since committee co-chairs knew that they might eventually want a public hearing on a bill for one of their own members, most co-chairs were quick to allow a public hearing when requested by the other co-chairs.

Public hearings alone did not result in a bill becoming law. After a public hearing was held, a committee work session was needed for a bill to receive a committee’s vote. During a work session, if a majority of committee members voted in favor of a bill, it would either be moved to the Ways & Means Committee for financial considerations or it would move directly to the House floor for debate and a vote by the members of the House of Representatives. Once a bill received a majority vote in the House, it was then transferred to the Senate and the committee process would begin again. Several good House bills languished and died in Senate committees.

In the House, work sessions on bills were not allowed unless both committee co-chairs agreed that the bill under consideration should go forward and possibly become Oregon law. Thus, Oregon’s co-governance model gave each of the committee co-chairs “the power of NO.” As a result of this “power of NO,” most bad bills died in committee.

Some Democrats were of the opinion that tax increases were needed in these times of reduced revenue streams. The Republican co-chairs did not agree and the “power of NO” enabled them to ensure many proposed tax increase bills died in committee.

On a more positive note, common ground was found and mutual agreement was apparent in many instances. Committee co-chairs often agreed on bipartisan legislation that was enacted for the best interests of Oregon citizens.  Thus, much was accomplished in the various House committees and many important bills were passed by House committees.

As discussed in a previous newsletter, a key issue of contention was whether or not to approve the bonding for the Oregon Sustainability Center (OSC). All of the legislative leadership except for Co-Speaker Hanna and myself favored authorizing $37.5 million in long-term bonds for the OSC project. Co-Speaker Hanna and I asked for a presentation on the status of the project and confirmed that inadequate financial and project documentation existed to justify investing millions of dollars at this time. The OSC project was not approved at this time and the bonds required for its construction will not be authorized unless and until detailed questions about the Oregon Sustainability Center’s financial sustainability are answered.

Hopefully, the links above give sufficient information on the bad bills that failed and the good bills that passed during the 2011 legislative session. Oregon citizens can be proud of the professional manner in which both the Republicans and Democrat legislators conducted themselves during this year’s legislative session.

As the House Republican Co-Chair of the Ways & Means Committee I worked hard to promote sound economic principles while compromising again and again in order to reach agreement with the House and Senate Democrat co-chairs. A realistic revenue number was used as the starting point for our budget negotiations. A compromise figure of $460 million was left in the “Ending Balance” to provide a cushion in case Oregon’s upcoming economic forecasts are lower than expected.

Looking back on this session, it is worth noting that the first major budget passed was $5.7 billion for K-12 schools. For the first time in more than a decade, the K-12 budget was passed in April, which enabled school districts to plan accordingly for the next school year. Usually the K-12 budget is held back and used as an end-of-session political pawn.

Now, nearly six months after I moved to Salem and drove nearly four hours each way to get home for the past 25 weekends, this legislative session has finally concluded.

Under the circumstances, the session went as well as could be expected. The co-governance model was a success. The budget has been balanced and the work of the Legislature has been completed. It has been an honor to represent you, wherever you live in Oregon, as a state legislator and one of the Co-Chairs of Ways and Means.

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Historic bipartisan legislation passed

Sen. Alan Bates

Sen. Alan Bates

This session is one for the history books.

Early on we approved SB 301, which allows Oregon small businesses to accelerate depreciation on equipment and free up capital to invest and hire workers. We passed HB 3000, which stimulates local production by giving preference to Oregon products when the state makes purchases. We approved SB 219 to ensure that Oregon invests in high-skill, high-wage jobs that are the engine of our economy.

We passed HB 2800 so that more Oregon schools could participate in programs to bring fresh locally grown foods into our schools and HB 2336, the Farmers Market Act, to support small local famers and the growth of farmers’ markets.

We established a funding mechanism for all-day kindergarten at no cost to families and passed SB 909, which will take down the silos between competing state government entities within the education department and unify the system from age 0 to 20.

For the first time in decades the Legislature came together to agree on a bipartisan redistricting plan that keeps communities of interest whole.

Major bipartisan healthcare legislation was passed in the form of SB 99 and HB 3650; these laws ensure access to care for nearly all Oregonians while lowering costs and implementing locally integrated and higher quality care.

We made deep cuts in many areas and no budget was left unscathed this session. We managed the limited resources available – just like families across Oregon.

Truly this was a bipartisan and historic session. Read More »

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Session had mixed results

Sen.Doug Whitsett

Sen.Doug Whitsett

From my perspective, the legislative session that adjourned Thursday resulted in mixed outcomes.

We secured significant funding for all three of the regional universities that serve District 28. Oregon Institute of Technology received more than $33 million to consolidate their Wilsonville campus and to expand their geothermal electric generation project at the Klamath Falls campus. Another $26 million was provided for building projects at Southern Oregon University and $5 million for the OSU Cascades campus in Bend.

I invested a great deal of effort in two bills that will make a significant difference for the rural Oregon economy.

HB 3636 allows voluntary contributions on the more than one million annual applications for hunting licenses, tags and special hunts. All money received will be distributed to the counties where the hunts are to be held. The money will be used solely for the management and control of predatory wildlife. The bill passed both chambers without dissent and awaits the governor’s signature.

SB 264 significantly curtails regulations that restrict access to Oregon’s highways. Current restrictions create a huge negative economic impact on Oregon businesses and on job creation. The governor has signed that bill into law.

Business friendly legislators did a good job of playing defense. We stopped passage of more than 150 blatantly anti-business bills including more than 20 potential tax increases. Growth in fees and charges also were held to a minimum.

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Progress made on many fronts

Rep. Peter Buckley

Rep. Peter Buckley

We have finally completed the legislative session, and while the economic recession that has slammed our state and our country is still being painfully felt, we have made progress on many fronts.

If you had asked me six months ago if we would be able to maintain our programs for seniors and the disabled, create a health care exchange, pass legislation to transform how health care is delivered in Oregon, keep the Oregon Youth Authority and our community corrections systems intact, and increase our investment in early childhood education and services, I would have had a very hard time believing it. But that is where we are as this session comes to a close.

We still have a lot of work to do — all of us — to pull Oregon out of this recession and give our kids, our businesses and our communities the opportunities they need. We have not come close to where we need to be in our investment in education. We’ve been able to set what I believe is a stable floor for funding, and even to protect our K-12 schools from additional cuts should the economic recovery prove slower than predicted. We’ve been able to maintain access to our community colleges and universities at a time of record enrollment. But we are nowhere near where we need to be in the investment required for success.

So — significant progress in the 2011 session, and I look forward to the work ahead. I also can’t wait to get home.

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Governor showed leadership

Rep. Sal Esquivel

Rep. Sal Esquivel

This session will go down in history as a session of compromise and bipartisan agreement.  It will also go down with the understanding that we (Oregon) really have a governor who leads.  I am a Republican and our governor is a Democrat, but I have to say that the governor has led us through these troubled waters in an exemplary manner.

For the first time since I have been in this building a governor has come to address the Republican caucus not once but three times.  We have a governor who is accessible to all the legislators.  We have a governor who has met weekly and sometimes daily with leadership of both parties and both chambers.  We have a governor who has stood up against the “Status Quo” union lobby in the building.  I have seen more of this governor in the first two months of this session than I saw of the former governor in six years.

This governor is engaged and actively involved with working with all sides to balance the budget as well as generate good policy for Oregon.

I see a governor who is relaxed and understands his role in the legislative process.  Even though I do not always agree with this governor and I have to give credit when credit is due.  This governor is a leader.

This governor has earned one thing that is most important in this building — the respect of the legislature, at least he has earned mine.

I would like to say “Thank you Governor Kitzhaber for your leadership and it is truly a pleasure to serve with a leader and a gentleman.”

Rep. Sal Esquivel also offers this video recap of the session.

http://youtu.be/lWLrW8L_H6g

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Down to the last tough negotiations

buckley-peterWe’re still in session, and I had sincerely hoped we would be done by now with a fully bipartisan budget, negotiated and agreed to in good faith.  We’re close to completing the work – -it’s down to a disagreement over the last $10 million, believe it or not, in a budget of $14.8 billion.  We’ve made it this far by consistently looking for solutions, and by keeping agreements along the way.

Unfortunately, that approach was abandoned by the House Republicans over the past few weeks. I had hoped we’d be able to return home to Jackson County and speak with pride on how we worked through difficult challenges, and I still maintain a bit of hope that will be possible.

The problem I face at present is how to deal with negotiations where agreements are made, then broken, then demands are made that must be met in order to return to the original agreement.  I’ve never negotiated that way in the three years I’ve been in the budget process, nor at any other time in my life. I’ve never given in to that kind of behavior as well, and that is what is keeping the session going. And even though the amount of dollars are small in the overall budget picture, the proper use of them could have a direct impact on thousands of lives. Wish us luck.  I believe we will get to a conclusion, and I will continue to seek solutions, keep agreements and do my best to represent Jackson County well.

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End of session delayed — indefinitely

Rep. Dennis Richardson

Rep. Dennis Richardson

I have no idea how long this session will continue.

The only substantial budget remaining is for the Department of Corrections (DOC).  The DOC budget had a $21 million hole that has been pared down to $18 million.

The Legislative Fiscal Office has identified more than $25 million in 2011-13 savings resulting from unissued bonding. The House Republicans are ready and willing to conclude this legislative session by balancing the DOC budget using these ample and available general fund savings.

The House Democrats want the DOC budget to be balanced with money saved by sentencing reforms.  “Sentencing reform savings” is an innocuous way of referring to money that could be saved by allowing prisoners to get out of jail early or reducing automatic sentences.

The difference in opinion stems from the nature of the co-chairs budget agreement passed last March. It included reference to a “workgroup of legislators” that was considering “potential” changes that could save millions of dollars.

The House Republicans have not agreed to any sentencing reforms. There have been negotiations, but so far, no agreement.

The Democrats are accusing the Republicans of breaking the agreement and holding “the public safety budget hostage.” The truth is we have the money to balance the budget and the Republicans are ready to use it and end this session today.

How long will the Democrats hold up the DOC budget?  All I know is the clock is still ticking and the daily costs are rising.

Read more at http://www.dennisrichardson.org/lu062411.htm.

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Will this lead to a balanced budget?

Sen Doug Whitsett

Sen Doug Whitsett

The Oregon Constitution requires the legislature to accomplish only two tasks. Our first responsibility is to hold a legislative session each year. The second duty is to balance the state budgets. This legislative session is rapidly reaching its concluding days.

We have accomplished the first requirement to hold a Legislative session. Unfortunately, a number of financial assumptions are being adopted by the legislative leadership that may not result in balanced budgets.

State income from taxes has been steadily declining for more than three years. The state economist has predicted a dramatic reversal of the three-year trend in state revenue. He now assumes that the state’s income will cease its freefall and increase by more than $100 million during the next two years. His predictions for the past three years have been both uniformly over-optimistic and demonstrably incorrect. Nevertheless, his predicted revenue increase is being considered hard revenue by legislative leadership. That yet to be realized income is being included in budgeted spending just as if it actually existed.

The Oregon Health Authority budget assumes $239 million in savings during the second year of the two-year budget cycle. The proposed savings is alleged to be the result of some yet to be defined transformations in how medical care is delivered in Oregon. In my opinion, no meaningful savings can be achieved without at least dealing with medical liability reform and creating some form of price negotiation at the point of medical care delivery. Neither of those issues has been addressed. I believe that a large majority of legislators agree that these assumed savings are not likely to be realized. Nonetheless, the legislative leadership is counting this nearly quarter of a billion dollars in assumed savings as hard revenue.

In addition, proposed savings from more than an 11 percent reduction in Medicare reimbursements is being counted as hard revenue as well. These reduced payments will affect virtually all health care delivery providers not directly associated with hospitals. Those most adversely affected will be rural medical care providers. The leadership appears to assume that these medical care providers will be willing and able to continue to provide medical services even when the costs greatly exceed the payment.

Moreover, the combined assumed savings and Medicare reimbursement reductions balloon to more than $400 million when federal matching funds are added to the mix. My concern is that adopting these unsubstantiated budget assumptions will result in a budget deficit of more than $500 million that will require resolution during the February 2012 legislative session. That deficit could be substantially more in the likely event that state revenue continues its downward spiral.

Unfortunately, the legislative leadership and our governor have decided to accept these unsubstantiated budget savings in lieu of actually addressing the major cost drivers that have created our revenue shortfall.

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Legislature made bipartisan healthcare changes

Sen. Alan Bates

Sen. Alan Bates

This session the Oregon legislature approved two dramatic and landmark bipartisan changes to Oregon’s healthcare system. These two changes increase access to affordable healthcare for nearly all Oregonians and fundamentally transform the healthcare delivery system while improving quality of care.

This change is possible because of the inherent opportunity facilitated by the current budget crisis. To that end Democrats and Republicans came together and overwhelmingly approved HB 3650, the Healthcare Transformation Bill. This landmark legislation restructures our healthcare delivery system by integrating physical health, mental health, addictions and alcohol treatment, and dental health. This change will be driven by locally controlled coordinated care organizations (CCOs), which will operate with “global budgets.” Through global budgeting, CCOs will operate with comprehensive budgets through which they can plan for and give care to all patients within their area of care.

The second dramatic change is the implementation of the Oregon Health Insurance Exchange, through which nearly all Oregonians will receive healthcare coverage. The exchange allows small businesses and individuals to access more affordable group rates and federal tax credits. The exchange also will provide consumers with an “apples to apples” comparison of health plans through a marketplace that is easily accessible via the Internet, telephone, or personal brokers.

These two changes are a paradigm shift for Oregon and our healthcare system. Through these two bills Oregon has enacted bipartisan law that helps our economy by lowering costs to the consumer and small business while preventing cost shift to the commercial market.

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