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LEGISLATIVE REPORT
Published by the League of Women Voters® of Oregon
Volume 17, Issue 2

In This Issue

Homeless Youth Action Alert
Sales Tax Measure Proposed, more
Volunteer
LWVOR Action Committee
Support the Legislative Report
Critical Issues in Governance
5 Minute Activist
Crime Reduction - Are We Succeeding?
Initiative System Needs Reform
Progress on Citizen Access
Kicker Law to Be Kicked Out?
Criminal Justice Commission Report
Boring Budgets?
Subscribe to the Legislative Report
Homeless Youth Action Alert
Girl on the streets

The League's new position on Homeless Youth in Oregon now allows us to advocate for these young people and their families. The Oregon Commission on Children and Families (OCCF) coordinates services for homeless youth. The proposed budget for OCCF (SB 5504) includes prevention services for families with children and services to youth who are not attached to a family.

If you feel strongly about the value of prevention services and homeless services, call your senator or representative, especially if they are on the full Ways and Means Committee.  You may mention specific programs in your county that you want to initiate or support.  Emphasize funding for services on the local level.

The Governor's Budget has not fully funded the prevention services in local CCF agencies.  The budget set aside $1,000,000 for homeless youth services, but the money will not cover the entire state's needs.  The Ways and Means Human Services Subcommittee heard a brief initial presentation and will hear the full budget in May.  Karen Nibler, Social Policy Coordinator
 
Sales Tax Measure Proposed

For some years, the League and many other groups advocating for a stable/equitable state government have urged consideration of some form of a consumption tax to complement the income and property legs of the revenue stool.  The income tax has again proven its volatility and severe impacts in times of economic downturns, so consideration by this Legislature of both corporate income taxes and tax reform are remarkable and welcome.  The proposed sales tax measure would (1) reduce the personal income tax rate from 9% to 6% for the majority of tax payers; (2) enact a 5% sales tax with protections; and (3) lower the capital gains taxes. 

Exemptions and Credits Revisited

Another positive is the upcoming consideration of tax expenditures.  These are the tax exemptions and credits that the state gives to individuals, groups and corporations and thus essentially gives away more than $27 billion every biennium.  Some of these credits, such as earned income and low income protections, are socially viable and necessary.  However, many were issued years ago, and their purpose has long been achieved, as with many pollution credits.  The League is working with the Oregon Revenue Coalition as in the two previous sessions to determine a list of credits which could be reduced or repealed without great impact.   The League is examining all of these fiscal policy proposals carefully, and it appears that our positions will allow us to support many as currently proposed.  Our positions are clear as to what we expect of state government and how it should be funded to provide essential services.  Because the Legislature is moving quickly, be aware that Action Alerts may be coming soon.  Kappy Eaton, Governance Coordinator


Volunteer
Help is needed to monitor legislative committees and report back to the Action Committee.  If you live close to Salem or have an Internet connection, you can learn to track bills and listen to hearings.  It is a fascinating experience if you have time to dedicate to the legislative process.  Contact LWVOR to volunteer. 
 
LWVOR Action Committee
Chair:
Norman Turrill

Vice Chair:
Marge Easley

Citizen Access Coordinator:
Paula Krane

Governance Coordinator: Kappy Eaton

Natural Resources Coordinator:
Liz Frenkel

Social Policy Coordinator:
Karen Nibler

Legislative Coordinator:
Brena Lopez

Portfolio members and committee representatives:
Bob Adams
Debbie Aiona
Jane Baumgarten
Diana Bodtker
Anna Braun
Barbara Browning
Sarah Chaplen
Anita Francis
Barbara Fredericks
Norma Jean Germond
Fran Greenlee
Gail Holmes
Shirley Lambelet
Peggy Lynch
Ellen Maddex
Janet Markee
Erin Miller
Margaret Noel
Barbara Ross
Penny Spaccarotelli
Nancy Stevens
Pam Vavra

Intern:
Terra Ashford

Legislative Report Editor:
Rebecca Smith



 
Quick Links

Support the Legislative Report

The Legislative Report costs money to produce, yet we don't want to limit who can receive it by charging a subscription fee.  Please support the volunteer Action Team's efforts to share the happenings at the Capitol with you and others.  You can send a donation, marked "Legislative Report" to the LWV address below. 

Thank you.

 


Welcome to Issue 2 of the Legislative Report! 

Our members have been busy at the Legislature over the past two weeks.  Read on to see what has been happening with land use, government reforms, and much more.

If you have not yet subscribed, just click on the "Subscribe" button at left. You can unsubscribe at any time.  The email version of the Legislative Report is free.  If you prefer to print your report, use our
printer-friendly versionA paper version is also published, and we ask $50 for paper, postage and handling for the session.  To subscribe to the paper version, call our office at 503-581-5722, or send us a check noting that it's for the Legislative Report.  Our address is a the bottom of this newsletter.

Sincerely,

Norman Turrill, Action Chair
Marge Easley, Action Vice Chair

bell
Critical Issues in Governance

From the opening bell, the 2007 Legislature has been focused on discussing critical issues and moving them through discussions and on to action.  For the first time in seven sessions, proposals in the governance area are in the mainstream of measures before committees.  These include bills on initiative reform, ethics reform, election law revisions, discrimination, campaign finance reform, fiscal policy, and removal of the 50/50 property tax vote requirement.

Recommendations from the Public Commission on the Legislature and the Oregon Law Commission are under consideration in six House and Senate committees.  Several constitutional amendments for fiscal changes are moving swiftly in order to be placed on the May 2007 ballot, if approved by both houses.

Legislators, lobbyists and the public are feeling the pressure with bill-introduction deadlines, new rules of conduct, an adjournment date of June 29 and delays in measure preparation, caused by many new bill drafters in Legislative Counsel.  The budget must be prepared by May, using the March revenue projection, with a brief update.  In legislative interviews, Assembly members are commenting on long hours, homework most evenings, and harried weekends with constituents and family.

Currently, we are monitoring more than 70 bills related to Governance. For this Report, the measures related to the "kicker" laws, rainy day fund, minimum corporate tax, sales tax and initiative reform will be highlighted.  Kappy Eaton, Governance Coordinator
5 Minute Activist5 MINUTE ACTIVIST

Stop Measure 37!

LWVOR has requested the Legislature immediately suspend Measure 37 to allow consideration of new legislation which would "fix" the many troubling aspects of M37.  We asked them to use the principles of clarity, consistency and continuity in their deliberations.  And we asked that they not take over the Big Look's work to broadly engage Oregonians in developing a 21st century statewide land use planning program for Oregon. 

You can help:  Contact your senators and representatives with the League's message.  Without urgent action, the state and our local governments might be liable for millions of dollars in claims and legal fees.  If you have time, attend every M37 event within your reach, including hearings of the Joint Special Committee on Land Use Fairness (contact the committee administrator Patrick.H.Brennan@state.or.us for more info). 

The Governor has proposed
SB 505 which would allow Measure 37 claimants to build one single-family dwelling or divide land for purposes of building one single-family dwelling.  All other claims would be suspended until June 30, 2007, to allow the Legislature to consider other amendments to Measure 37.  Senator Larry George has also proposed a bill, SB 509.  The League has not had time to review either of these new pieces of legislation. 
 
To find more information on Measure 37 claims, check out the state's website:  www.oregon.gov/LCD/MEASURE37/index.shtml
5 Minute Activist
Crime Reduction - Are We Succeeding?

One goal of public safety programs is reducing crime. Are we succeeding? At what cost? Can we do better? In monitoring the Judiciary hearings and Ways and Means Public Safety Subcommittee, we learned about a proposal to look at Oregon's sentencing structure (HB 2302) and about a recent report reviewing Oregon's public safety system (see the article "Criminal Justice Commission Report," below).

HB 2302 is a significant bill that will affect the future of the criminal justice system. It expands the duties of the Oregon Criminal Justice Commission. HB 2302 asks the CJC to identify specific options for reducing the number of prison admissions or for adjusting sentence lengths for specific groups of offenders, and to analyze the effect of each option. This bill was heard Feb. 2 in the House Judiciary Committee, along with objections to considering reductions in the lengths of sentences. Karen Nibler, Social Policy Coordinator


Initiative System Needs Reform

While the League supports direct democracy and the public's right to initiate law changes, we believe the system enacted in 1902 is in need of careful revisions to keep it credible. 

There has been an increase in fraudulent signature gathering and the development of businesses around our initiative process, some of which are "skirting" the law against paying by the signature. 

The House Committee on Elections, Ethics and Rules held a hearing on January 31 to hear from the industry, the Secretary of State, and system advocates about the system as it begins discussion of the several bills proposed by the Elections Division, the Attorney General and the Public Commission on the Legislature.  The League added to that list by stating our positions about increasing the number of signatures needed on the proscriptive petition (25), requiring more signatures for an initiative constitutional amendment (at least 10% of last vote for governor), no amendments dealing with the Bill of Rights or revenue issues, consideration of the indirect method (goes to Legislature for discussion after qualification), some type of constitutionality review after qualification to be published in the Voters' Pamphlet, and a shorter time period in which to collect signatures. 

The Attorney General wants at least 10% of the necessary signatures for ballot qualification to be collected before a ballot title is issued, and a drafting review of any petition by Legislative Counsel. 

The Secretary of State wants more enforcement power to go after fraud and to allow the postmark to determine if a voter registration card has been signed prior to the registration deadline, and the Labor Commissioner, unexpectedly, confirmed the problem of petition industries by citing several cases of non-payment of petition gatherers or examples of fraud in signature collection by essentially paying by the signature.

Public Commission on the Oregon Legislature recommended that the chief petitioner be a registered voter in Oregon along with some method for determining the constitutionality of an initiative by review.  It generally has recommended that steps be taken to preserve the integrity of the initiative system.  The League will be working with the House and Senate Rules committees to encourage the enactment of legislation to strengthen the initiative process and to protect its validity.  Kappy Eaton, Governance Coordinator

Oregon's Capitol building
Progress on Citizen Access

Many of the access issues that we worked so hard for last session have become part of the rules this year.  With the change in leadership there have been many changes in the rules and the way business is handled.  We have three day notice for all public hearings, better guarantee that bills will be heard, and easier access for any committee members (and not just the chair) to bring a bill forward.  Time will tell whether the rules reflect what actually happens.

We still have invited testimony first and a long wait before the public can speak.  However, committee chairs are allowing hearings to run over so that everyone can speak.  In order for all who wish to testify on some of the more hot-button issues, time limits on how long any one person can speak have been imposed.

Two other areas where we have seen limits to citizen access in the past, workgroups and budget notes, have not yet come up in this session. 

We will continue to monitor the process and make sure that the public is not left out of the Legislature.  You will also have an opportunity to observe and monitor legislative hearings when they are scheduled in your area - we will keep you posted about these hearings.

In the first Legislative Report I told you how to sign up on the web for agendas and other information from the Legislature (http://www.leg.state.or.us).  However, when I tried to sign up (E subscribe), I had many problems.  After a helpful call to the Capitol administrative office, we determined that the problem was with my Internet service provider.  My ISP found that, indeed, their spam filter was stopping these emails from being delivered.  So if you signed up and nothing has happened, you should talk to your provider about accepting emails from domain "service.govdelivery.com."  It is not spam.  Paula Krane, Citizen Access Coordinator
5 Minute Activist
Kicker Law to Be Kicked Out?

On February 1, the Senate Finance and Revenue committee held a discussion on several proposals for a rainy day fund using either a suspension of the corporate "kicker" law or a repeal of it as the funding source. The December revenue forecast indicated approximately $285 million in surplus corporate tax revenue. The Governor's Proposed Budget seeks a suspension of the corporate income kicker to create a rainy day fund.  From the testimony of the State Treasurer and business and educational leaders, as well as the comments from a majority of committee members (on party lines), the sense is that going to the voters with a constitutional amendment to repeal the kicker is a better way to go, rather than suspension which takes a two-thirds vote of each house to pass.  Also, suspension would still leave the problem for the next budget cycle.  The vote would be held in May to allow the surplus to be used for the 2007-09 biennium.  Apparently polling shows voters favoring use of the corporate kicker if it goes for a reserve fund, and the business community favors it only if it is used in that way.

Explanations of the kicker laws and the deadline for getting a measure on the May ballot were given to the committee by the Legislative Revenue Office.  There is no effort being made to suspend or repeal the personal income kicker although it is now estimated at about $700 million.  Along with the corporate kicker, there is serious discussion of raising the minimum corporate income tax which is now at $10.  About 2/3 of Oregon businesses pay at this level, regardless of their size.  The business community again supports a raise, with a sliding scale and probably a minimum at $500. Anti-tax groups have indicated that they could mount referral campaigns if the Legislature acts without sending corporate income tax measures to the public and would do so if the personal kicker is at stake.  Kappy Eaton, Governance Coordinator


Criminal Justice Commission Report

The Criminal Justice Commission's Report to the Legislature is full of interesting data and recommendations. It includes reports on studies of: "Incarceration, Costs, and Crime," combating methamphetamine, the effectiveness of Drug Courts, changing sentencing guidelines, and reducing identity theft, among others. The following are some interesting statistics from the analysis of costs and benefits. The complete report is available on the website: www.oregon.gov/CJC/index.shtml.

 The section, "Incarceration, Costs and Crime," from the OCJC Report is an analysis to help policymakers understand the costs and benefits of our current criminal justice plan. The goals of our criminal justice system are to punish criminals and reduce crime. The report indicated that the number of persons incarcerated tripled from 1980 to 2005.  The Department of Corrections is expected to cost taxpayers $1,130 per household in the 2005-07 biennium. The Department of Corrections' debt service is now $116 million, most of which is for financing the costs new and expanded prisons. The state support for prison programs and for police has decreased as costs for new prison beds increased.  The number of sworn officers per 1000 population is lower than in any other state.  The number of local police has stayed even with population growth, but the number of state police per 1000 population fell by 50%.

While the incarceration rate has increased, the crime rate has fallen.  The violent crime rate in Oregon fell by 45% since 1995.  Statistics say a 10% increase in the state's incarceration rate leads to a 2.6% decline in crime rate.  The evaluators calculated the cost effectiveness of incarceration as a way to lower the crime rate.  They found it was most cost-effective to incarcerate violent offenders. The state "broke even" when imprisoning property criminals; it was not cost effective to incarcerate drug offenders.  About 10% of Oregon's prison population are drug offenders.  Karen Nibler, Social Policy Coordinator
 
Boring Budgets?

Budgets actually aren't boring and, like it or not; they often drive policy that we care about. 

Oregon's legislative budget is no exception.  The changes in this year's legislative budgeting process are close to exciting.  The co-chairs of the Joint Legislative Ways and Means Committee (Sen. Kurt Schrader from Canby and Rep. Mary Nolan from Portland) have made transparency a goal and are opening the process to more than the customary "insider" group. They began the 2007 Legislative Session with a tutorial for the entire committee that was open to the public and are making available documents that, in past years, had to be boot-legged from committee members. 

The full Ways and Means Committee of twenty-one members is divided into six subcommittees, each with a separate issue area:  Education (Rep. Galizio, Chair), General Government (Rep. Bob Jenson, Chair), Human Services (Sen. Margaret Carter, Chair), Natural Resources (Sen. Richard Devlin, Chair), Public Safety (Rep. Chip Shields, Chair), Transportation and Economic Development (Sen. Betsy Johnson, Chair). 

The state budget that is ultimately adopted must by law be balanced for the two-year biennium.    Work on the budget begins well before the Legislature opens for business in January of odd-numbered years.  Agencies first develop their wish lists, which in one form or another, become the Governor's Recommended Budget which is presented to the Legislature at the beginning of every session.  The subcommittees then review and make recommendations to the full Ways and Means Committee.  The agency bills passed out are then voted on by both house of the Legislature.

This review process is aided by the Legislative Fiscal Office as well as the Budget and Management Division, representing the Executive Department.

The League has voiced concerns in the past about public access to the budgeting process.  In particular, we have been critical of what are called "budget notes."  These were directives to agencies that were not part of any printed bill and, in some cases, actually involved policy decisions.  Ways and Means is only permitted to deal with allocation - not with policy.  Often the line between the two is far from a "bright line."  Probably the most egregious of the budget notes in 2005 was an attempt by Ways and Means to prohibit the Department of Environmental Quality from implementing the Governor's Executive Order regarding adoption of the California air emission standards.  Legislative Council said this was "policy" so the budget note was withdrawn.  The possibility of budget notes this session is still unclear.

All of the Ways and Means Committee meetings are now available either "live" or archived through the Internet.  The Legislative Fiscal Office's analysis of the Governor's budget is available from their office on request. 

If there is money involved, follow the Ways and Means process to find out whether your favorite program is being appropriately funded.  If you need help following the dollars, contact anyone on the LWVOR Action Committee.  Liz Frenkel, Natural Resources Coordinator