From previous newsletters you know this legislative session’s approach to budgeting is vastly different from past ones. Until now Current Service Level (CSL) budgeting was the process. CSL budgeting is where the legislature starts with the last budget amount, and then considers and hears the many pleas for additional money, and then makes a list of all the expenditures, before going to see what revenue is available. This process has been compared to going grocery shopping; walking the aisles and filling the shopping cart with all the items you “really need”, then going to the check-out stand before considering how much money you have to pay for everything. Since the stock market bubble burst, CSL budgeting has resulted in extensive additional debt and two failed attempts to raise Oregon taxes.

But this session is different. At the beginning of this session the Governor and leaders of both the Senate and the House each promised to turn away from CSL budgeting, and live within our means. To accomplish this change, each proposed using Performance-Based Budgeting.

Performance-Based Budgeting requires:

1. Establishing Oregon’s 6 Core Government Functions;
   
2. Prioritizing all expenditures under one of the 6 Core Functions;
   
3. Determining how much revenue is available to spend for the 2005-07 biennium (the revenue pie);
   
4. Divide the revenue pie among the 6 core principles;
   
5. Allocate the funds in each core principle category, starting with the number one priority and continuing down the priority list until the money is gone; and then
   
6. Stop spending when the money is gone.

Everything was going fine until the Senate Democrats started hedging on the idea of waiting to discuss (or publicize) spending amounts until after the priorities had been set and the revenue pie determined. The House leaders reminded the Senate leaders that the agreed-to plan was to finish prioritizing and determine the amount of revenue available before publicly discussing how much should be spent to fund various programs.

Last Friday the State Economist announced the “March Forecast” of projected revenues for the next biennium, and a growing economy resulted in a $202 million increased forecast. The Senate Dems could not resist politicizing a good forecast, and announced their plan to fund K-12 education at $5.4 billion—an amount that obviously was $200 million higher than the revised forecast. When this Senate pronouncement was made, it not only was viewed by the House as a breach of the agreement to stay with the Performance-Based Budgeting plan, but, since the Senate and House co-chairs had been unable to agree on the size of the revenue pie, it looked like the Senate “D’s” were starting the old grocery shopping spree. The feeling among House Republicans was, “There they go again.”

The House “R’s” were not interested in playing that game again. House Republican leaders, after obtaining unanimous approval from House Republican members, responded by canceling all further Joint Senate/House Ways and Means Subcommittee meetings chaired by the House, and began making plans to break up the joint process and proceed with the Performance-Based Budgeting program alone. With weaker or more dogmatic leaders, the break-up would have been final, conversation would have terminated between the Senate and the House, and the legislative session would have been both contentious and protracted.

Fortunately, Oregon’s Senate and House leaders continued discussing the impasse. Negotiations ensued. Both legislative houses determined it would be best if the Ways and Means process continued with the joint committees following the Performance Based Budgeting plan. So the major hang-up was whether or not there could be Senate/House agreement on the size of the revenue pie. Offers were made; counter-offers followed. Finally, late yesterday afternoon, a final agreement was reached that set the limit for Oregon’s 2005-07 biennial General Funds budget at $12.393 billion. This amount was more than the House Republicans wanted to spend, and less than the Senate Democrats wanted to accept. The House Republicans were willing to accept a 2005-07 biennial budget of $12.393 only after they determined it could be financed with current revenues-- i.e. without raising taxes or increasing state debt. And, for the sake of keeping the legislative process on track, it was a reasonable compromise.

In the past, such agreements have been oral, and subsequently broken due to misunderstanding, misinterpretation or mischievousness. This time the agreement is clear, concise and signed in ink. The Memorandum of Agreement says the following: “The 2005-07 Budget will be neither more nor less than $12,393 billion.” It also says the co-chairs of Ways and Means will present their budget “By April 4, 2005.” There was to be no relationship between the two provisions. (Click here to see the Memorandum of Agreement.) If either the Senate or House leadership believe the agreement allows for wiggle room that would permit passing a final 2005-07 biennial budget higher than $12.393 billion, that perception should be made known immediately. I have sent a letter to both the Senate and House leadership to ensure a common understanding exists that the $12.393 billion amount is the “final” 2005-07 general funds budget amount. If either side has a different understanding it should be immediately made known to the other, so there will be no misunderstanding about this issue later this session.

Reining In Child Case-Worker Renegades—
House Bill 2839

During my time focusing on the Department of Human Services, I have met many ethical, intelligent and concerned public servants. I am certain the vast majority of DHS workers across Oregon are fine human beings. Unfortunately, a few unethical, heavy-handed, self-serving child welfare workers use their positions of power to the detriment of parents and children whom they have promised to serve. Multiple continuing complaints from Curry, Josephine, Jackson and Klamath counties to name a few, cannot be ignored. Complaints of caseworkers leading parents to believe the agency is working toward family reunification while in reality working toward termination of parental rights, complaints of agency caseworkers misrepresenting the truth to judges in order to accomplish an outcome which the caseworker has predetermined, complaints of parents who fully comply with caseworkers requirements for regaining custody of their children, only to have the paperwork “lost’ or “not read”, cannot be tolerated. Presently, Oregon Courts refuse to hold the occasional malfeasant child caseworkers liable for the costs, trauma and grief their intentional, dishonest acts cause children and families.

To help expose and eliminate the occasional misfit caseworker from the ranks of caring and considerate child caseworkers who serve in every DHS office in our state, I am sponsoring House Bill 2839. This bill makes it clear that any caseworker who intentionally falsifies reports; willfully misrepresents the truth; or intentionally misuses his or her position of trust or power of employment, will be personally liable to the individuals wronged by such intentional and reprehensible actions. To protect honest caseworkers, and ensure they can perform their duties without fear of retaliation, the accuser’s burden of proof has been lifted above the usual civil requirement of a “preponderance of the evidence”, to the much higher level of “clear and convincing evidence.” Those who are doing their jobs have nothing to fear. Those who have gotten away with using tactics of “self-determined ends justify unlawful and unethical means,” beware.

Sincerely,

Dennis Richardson
State Representative
Fourth District

Richardson Proposes '777' Legislation to Fix School
Speed Zone Law

Last session a law was enacted to eliminate the confusion over what was meant in a school zone by “when children are present”. While drivers thought that clear statement would mean when children could be seen in the vicinity of a school, police officers and judges often interpreted it to mean when children could be in the area, such as during normal school hours. The solution was a law making the 20mph speed limit applicable "anytime."

"Under current law, it is possible to get a ticket at 2 a.m. for driving faster than 20 m.p.h. near a school," Richardson said. "While no one I know ever was given such a ticket in the middle of the night, hundreds of citizens have repeatedly voiced their disgust for the absurdity of this 24/7-school zone speed limit."

The proposed bill establishes a “7-7-7” rule, which calls for a 20 m.p.h. enforcement of school speed zones between the hours of 7 a.m. to 7 p.m., seven days a week, or as indicated by signs or lights. HB 2840 was inspired by numerous constituent complaints over current school speed zone laws, which extend through all hours of the day.

In order to accomplish its intended purpose, HB 2840 amends ORS 811.111 to add the phrase “between 7 a.m. and 7 p.m.” to the school zone provision of the existing law.

“Many legislators realized after the 2003 session that the school zone law went too far,” Richardson said. “This common-sense bill merely specifies the times when enforcement would be appropriate and necessary, and still allows for the protection of our schoolchildren from speeding motorists.”

HB 2840 will be considered, along with other proposals, in hearings of the House Transportation Committee beginning next week.

Richardson Land Use Bill Clears First Legislative Hurdle

House Bill 2549, Rep. Richardson's bill to restore property rights to "lot of record" owners, was approved Wednesday by the House Land Use Committee. The bill will allow Oregon property owners to build single-family dwellings on their lots or parcels. It applies to those who had the right at the time they acquired the property, but lost the right due to subsequent government actions.

"House Bill 2549 is a small step in the right direction toward implementing in a rational way the intent of Measure 37," Richardson said. "For the sake of a small group of Oregon landowners who will have their rights restored by this bill, I hope the Senate and the Governor show their acknowledgement of the voice of the people by signing this bill."

HB 2549 is expected to be considered by the full House of Representatives by the middle of next week.

House Votes to Reduce Tax Base Rates for
Small Businesses

Also on Wednesday, Rep. Richardson supported HB 2127 to help Oregon businesses by lowering the unemployment rates paid by employers. The bill will help roughly 110,000 businesses in Oregon; 90 percent of these firms are small businesses employing less than 20 people.

HB 2127 cuts the unemployment tax rates for Oregon employers by 12% and does not have an impact on our general fund because unemployment taxes go to the Unemployment Trust Fund. It will reduce base rates in all 8 unemployment categories, assisting new businesses with no experience rating by reducing their start-up costs.

HB 2127 is an across the board tax reduction that will treat all employers equally. With the announcement Monday that Oregon’s employment has reached its highest level ever, Richardson said HB 2127 continues the Republican agenda of supporting and fostering business and economic development here in Oregon. Further, he said it demonstrates good government and strong foresight by adjusting the needed taxes for the Unemployment Trust Fund.

The bill is sponsored by the Oregon Employment Department. It is supported by NFIB, AOI, the Grocery Industry and several others.

House Approves Women’s Health Care Legislation

This week, the House passed HB 2497 and HB 2498, two Women’s Health bills that will protect access to certain screenings and expands coverage for clinical breast exams. The bills re-authorize four critical health insurance requirements including breast cancer screening, mammograms, cervical cancer screening and PAP exams. These mandates were set to expire this year and HB 2497 removes the sunset provision which makes these mandates permanent.

Each year, 40,000 women die from breast cancer alone in our country. These bills will help promote screenings that will catch diseases like cancer and are extremely important to women across our state.

Missed a Newsletter? Download all past newsletters for the 2005 Session at http://www.leg.state.or.us/richardson/news.htm

Capitol Office
900 Court Street NE
H-285
Salem OR 97301
Tel: (503) 986-1404
Fax: (503) 986-1590
E-Mail: Richardson.Rep@state.or.us

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