The League testified in favor of HJR 46 on March 15.  This is an emergency measure, albeit a constitutional amendment, which would allow the 18 Oregon counties with crisis revenue problems to raise their permanent property tax rates.  The fiscal crisis is caused by the possible cut-off of the federal Secure Rural Schools Funds that were allocated to the Oregon and California counties (O&C funds) when timber harvests declined.  The federal forest reserve receipts have come to other counties around the country, but Oregon has received the "lion's" share.  Most of the affected counties have low permanent tax rates that don't allow for enough tax revenues under the limits of Measure #5 (1990) and Measure 50 (1997).  HJR 46 would go to voters in November 2008. There is a slim probability that Congress will come up with funds for 2007-08, but after that there is no guarantee.

The League position supports the state government having the authority to allow local governments the flexibility to meet future needs. Many of the counties are facing severe cuts in public safety and social services; some are contemplating bankruptcy.  Also brought up at the hearing was the need to discuss possible repeal of Measures 5 and 50 as well as the double majority requirement.  Both the Association of Oregon Counties and the League of Oregon Cities cited problems with those limits.

Kappy Eaton, Governance Coordinator

League members have long been interested in water policy and planning, and in water quality.  We have adopted positions that allowed us to testify this week to strengthen the Water Resources Department's (WRD) budget (HB 5050) and to submit testimony in support of increased water measurement.  We encourage you to share your water stories with your legislators since issues of quality, measurement and quantity are being heard throughout the Capitol. 

Legislators are learning about water law in policy and Ways and Means Committee work.  Under Oregon law (affirmed by the U.S. Supreme Court), all water is owned by the state.  WRD's job is to "manage" this public resource.  In 1909, Oregon passed a unified water code, which says that the first person to obtain a water right on a stream is the last to be shut off in times of low streamflows.  The person with the next oldest date gets the next amount and so on.  In 1955, groundwater was added to the state's regulation. 

Water is to be used for a "beneficial" purpose.  Once a water right is certified, that right is "attached" to the land, not the owner, so long as the water is used.  A water right MUST be used.  But, without measurement, it is unclear whether water rights are being fully used.  Since water is becoming more scarce, it is important that we know how much water is really being used by water right holders.  

With Measure 37 claims, concerns about access to water have been front and center.  Except in certain circumstances, groundwater wells for domestic use are "exempt" from the requirement to obtain a permit.  (The driller must "register" but WRD doesn't "regulate" unless the area is "groundwater limited" by WR Commission declaration.)  So the potential is great for rural subdivisions with each house having its own groundwater well to affect the wells of neighbors, because there is limited regulation - until after the well does damage to a neighbor's (prior well owner's) access to water. 

The Joint Committee on Land Use Fairness learned that WRD only provides information (if it has information) about water availability when land use actions are heard.  It has no role in determining M 37 waivers.  When M 37-granted waivers create new lots, the discussion of water availability is "premature," meaning that many new lots could be created and sold without the means to provide water for new development.  "The availability of water is NOT a land use action," according to WRD.  However, if groundwater is compromised, WRD can create more groundwater limited areas, which can be considered in land use actions. 

The League is supporting WRD's need for additional staffing to better regulate the public's water.  We support increased measurement of water use, monitoring, and water management and conservation measures.  Without better knowledge of Oregon's water availability, present use, and future needs, good planning cannot happen. 

Sharing your knowledge of water issues in your area and what information local governments should have in order to make good decisions will help as we advocate for more money to protect and regulate the public's water.

Peggy Lynch, Water Portfolio Member

Possible repeals or limits on the double majority are being discussed this session.  (The double majority, or 50/50 rule, requires participation by a majority of registered voters as well as a majority of "yes" votes to pass property tax levies, except in a General Election in even numbered years.)  Senate Finance and Revenue Committee heard SB 80 and SJR 10 on February 28.  The proposed measure would delete the double majority clause from the Constitution, and SJR 10 would be voted on at the 2008 May Primary, with no more double majority votes after June 19, 2008.  The League supports these proposals to allow the citizens who actually vote on local government tax levies for schools and social services, etc., to be able to pass these levies with a majority vote.  Several other measures - SB 921, and SJRs 27, 35, 37 and 38 also dealing with the 50/50 problem - were heard in the Senate committee March 21.

Kappy Eaton, Governance Coordinator

New Budget Impacts in Human Services

The decrepit Oregon State Hospital needs to be replaced with construction of new mental health facilities according to a consultant.  The Director of the Department of Human Services (DHS) reported the results of a site review for new facilities and the choice to locate a 620-bed facility in Salem on the existing campus and to locate a 360-bed facility in Junction City on state property.  The Junction City property was previously purchased for the Department of Corrections and the plan will include the construction of a prison facility in the future.  The director reported that adjacent facilities may work well in order to serve forensic commitments for mental health evaluations and prisoners who require mental health treatment.  Smaller 16-bed facilities will be constructed in eastern and southern Oregon areas in order to serve those populations.  This expansion of the capacity of mental health facilities will have a major impact on the human services budget.

The Addictions and Mental Health Division of DHS has been presenting its budget to the Human Services Subcommittee over the past two weeks.  The need for additional investment in the mental health system and alcohol and drug treatment was emphasized.  The budget included the request for increased funding for community addictions and mental health services.  The county mental health departments funding was reduced and positions were lost in the last biennium. Public testimony was taken on March 21. The committee was overwhelmed with the number who came to support mental health and addictions treatment.  LWVOR submitted a letter in support of funding mental health facilities and programs, consistent with our positions. 

Karen Nibler, Social Policy Coordinator

We also testified March 21 on HJR 43, which would allow voter registration no later than the day of election.  The League has a long-standing position in favor of the least possible restrictions regarding voter registration.  Further information about this measure will be given in Legislative Report #8.

Kappy Eaton, Governance Coordinator