| 2005 Legislative Report |
Note: A full 2005 Association of Oregon Faculties Legislative Report can be obtained by contacting AOF at (503) 363-7084 or pacounsel@pacounsel.org. Introduction “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…” (Charles Dickens, A Tale of Two Cities) “This is like déjà vu all over again.” (Yogi Berra) Amid declarations that it would be efficient and short and erase from all memories the record-long 2003 session, the 2005 session opened with a bang on January 10, 2005 and screeched to a halt with a collective yawn 210 days later on August 5, 5005 at 6:20 am. The second longest session in Oregon history was not without its accomplishments. Broad bipartisan support resulted in the toughest and most innovative laws in the country aimed at combating the meth epidemic. After decades of battling between advocates and business, a mental health parity bill was adopted on near unanimous votes. Scholarship opportunities for students in need in public higher education system were significantly enhanced. Although there were some successes, the 2005 session may be remembered more vividly for what was not accomplished. The lost opportunities were many and both houses of the Legislature, both parties and the Governor all shared the distinction, at times, of grasping defeat from the jaws of victory. Partisan lockdown and gubernatorial absenteeism plagued the session from start to finish. It was no surprise that many important issues were left on the table at sine die. In the House where the Republicans held a 33-27 majority, leadership was highly concentrated and effective. Speaker Karen Minnis (R-Fairview) and Majority Leader Wayne Scott (R-Canby) were a cohesive and mutually supportive team that brought predictability to the process in the House. When Rep. Scott was also named co-chair of the Joint Ways and Means Committee after an unexpected resignation, the focus of power was complete. The Democrat minority in the House had less impact on the House agenda than in any recent session. There was not a single issue where the Democrats were able to recruit sufficient House Republicans to “roll” leadership. In the Senate, Democrats held control for the first time in a decade with a seemingly strong majority. They also found that governing the body was a challenge. For much of the session, the Senate Democrats looked like the winner in the movie “The Candidate” who, after the returns were in looked at his campaign manager and said, “What do we do now?” The reality of managing a majority with many independent free spirits was a constant, and occasionally fruitless, battle for Democrat leadership. The result was that the final work product of the Senate was much less ambitious than its opening agenda. For the first session since 2001, sufficient state general funds were available to provide necessary state services. One would think that as a result, budget haggling was not what caused the extraordinary length of the session. That certainly was not the case. Once again the single greatest contributing factor to the length of session was what is becoming a biennial stare-down over K-12 funding. Despite what was considered a generous K-12 budget by most, some education advocates insisted on prolonging the session in hopes of garnering more funds. Eventually, reality set in among Democrat leaders that House Republicans were not going to fold just because they wanted to close down the session, and a final budget agreement was reached. For higher education faculty, the 2005 session was one of mixed results. Starting with a proposed 2005-2007 budget that the Governor trumpeted as a great new reinvestment in public higher education, but in fact was a “hold steady” budget, faculty and the Oregon University System (OUS) fought an uphill battle throughout session to enhance funding. One glaring example of the inadequacy of the Governor’s budget was that while the State Board of Higher Education had recommended $32 million for faculty recruitment, retention and equity, the Governor advocated a mere $1 million. Ultimately, the Legislature was convinced to increase the state General Fund appropriation for OUS by 5.2% over the previous biennium versus the 2.0% the Governor proposed. Hardly dramatic, but an improvement nonetheless. During the session AOF advocated for a capture of OUS 2005-07 vacancy dollars to enhance faculty salaries. The House concurred in the concept but the Senate did not. In several discussions with Chancellor Pernsteiner, AOF has strongly requested the Chancellor and the State Board to recommend to university presidents that they fund 8.75% salary increases for faculty using extra funds secured in the budget. The capital construction budget for public higher education was significantly increased and to most close observers reflected the best capital budget in three decades. HB 2104 was a big win for AOF and faculty. After rebuffing OUS’ attempt to decouple the employer contribution rate for the Optional Retirement Plan (ORP) from the PERS rate, HB 2104 was passed which reaffirms the rate basis and also provides that the ORP rate will not be reduced even if the PERS rate is reduced to reflect a “buy-down” of PERS future liabilities such as occurred in November 2003. The following report details all the legislation that Public Affairs Counsel was involved in on behalf of AOF during the 2005 Regular Legislative Session.
HB 5153 HB 5153 is the main budget bill for the Oregon University System (OUS). The Legislature increased OUS state general funding beyond what the Governor had recommended, appropriating $706.5 million in General Funds for a 5.2% increase versus the 2.0 increase the Governor had put forth. The total OUS budget for 2005-2007 is approximately $4.2 billion. The Legislature appropriated $17.5 million to buy-down tuition increases to the 3% annual range, although the actual increases will vary from campus to campus and are expected to be higher at the regional universities. In contrast, both the Governor and the Legislature saw fit to appropriate only $1 million for faculty recruitment and retention, which obviously lags behind on their priority lists. The single most significant funding increase was to the Opportunity Grants Program where funding was increased 77% from $44 million to $78 million. These funds will be administrated by the Oregon Student Assistance Commission and are expected to allow all eligible students to receive a grant.
HB 5514 is the capital construction bill for the Oregon University System and for community colleges. It represents an ambitious and, for once, well-funded capital program. OUS officials believe it is the best capital construction budget in the last three decades. A total of $410 million, from various fund sources, was approved. This includes $14.8 million in General Fund for system wide and certain university-specific projects. Other funding sources include Article XI-G bonds, energy bonds, Lottery bonds and Article XI-F (1) bonds. Specific projects are too numerous to mention in this report, but a complete identification of the projects is available on the Legislative website (www.leg.state.or.us).
HB 5134 is the budget bill for the Oregon Health and Science University (OHSU). Governor Kulongoski proposed cutting OHSU’s state General Fund budget to $53.0 million from its 2003-2005 level of $84.4 million. The Legislature restored $20.3 million of the proposed cut which will protect most OHSU programs, including the Nursing program and the Rural Health Program, from significant reductions.
Authorizes issuance of lottery bonds by Department of Higher Education for deferred maintenance projects. Establishes Department of Higher Education Deferred Maintenance Project Fund. Appropriates moneys from fund to Department of Higher Education for deferred maintenance projects. Declares emergency, effective July 1, 2005.
HB 3466 eliminates, on July 1, 2007, the Sports Action game that has been offered by the Oregon Lottery. This game involves betting on the outcome of NFL football games and is the primary reason why the NCAA will not consider Oregon sites for certain events such as the men’s basketball tournament in March of each year. Eliminating Sports Action will remove this impediment to landing these high, profile and lucrative events. Historically, net proceeds from Sports Action sales have gone to college athletic programs and academic scholarships. The amount, however, has been decreasing steadily. Under HB 3466, 1% of total net lottery revenues will go to these purposes and it is certain that this will result in greater funding than under the Sports Action system. The 2007 Legislature will set the initial expenditure limitation of the 1% figure based on projections by the Legislative Revenue Office. For 2005-2007, OUS will continue to receive the net proceeds from the Sports Action game.
SB 5520 is the lottery proceeds allocation bill and includes the allocation of net proceeds from the Sports Action game to the Oregon University system for athletic programs and academic scholarships. (See HB 3466 on page 3)
HB 5023 was the 2005 version of the end-of-session Christmas Tree bill. Because of the small amount of funding included in the bill it is perhaps more appropriate to refer to it as the Christmas Twig bill. The main issue of interest to faculty was a $130 million reservation to the Emergency Board for employee salary increases during 2005-2007 (two 2% COLAs and a 4.75% new step increase for employees with steps and at the top of their steps). It is expected that these funds will be released at the Emergency Board meeting in September 2005. The bill also added another $400,000 to the Oregon Opportunity Grant program. AOF is asking OUS to fund an equivalent 8.75% for faculty out of these and other funds.
HB 2104 represents the consensus reached by the Oregon University System (OUS) and AOF after AOF, and allied faculty groups, rejected OUS’ proposal to amend current law to disconnect the employer rate for the Optional Retirement Plan (ORP) from the rate paid to PERS members. OUS proposed that the State Board of Higher Education set a rate each biennium which AOF believed would result in great uncertainty and an opportunity for the system to balance its budget on the backs of ORP members. At the time the agreement that resulted in HB 2104 was reached, litigation was pending between AOF and OUS. That litigation was subsequently settled. HB 2104 makes it clear in statute that the ORP rate shall be the current PERS rate and that OUS cannot reduce that rate to adjust for lump sum payments that may be made in the future to reduce or eliminate PERS system liabilities. The bill also aligns the ORP statute with the third tier, OPSRP, pension plan that was adopted by the 2003 legislature. Under these provisions, new faculty members are given the same options and requirements for participation in the ORP as Tier One and Tier two members.
This bill sought to limit expenditures for wages and benefits for persons employed by state government, and remove employees of certain agencies from exception to limit on number of persons employed by state government.
HB 3262 was a bill that was extensively negotiated by PERS employers and member groups and made it through the process because of the balanced approach that was taken, in the end, by both sides. The bill re-qualifies the PERS system under the Federal tax code which was a necessity. For faculty, its most important feature is the provision that final average salary is based on when the salary is earned, not paid. This provision applies to all PERS members except those that are employed by local governments and special districts who refused to agree to this approach. HB 3262 also deals with retirement credit for members in active service with the Armed Forces, provides that termination of a person’s membership in PERS invalidates the designation of a beneficiary, and clarifies law in terms of retirement date eligibility for school employees and police and fire members.
Provides that salary used to determine benefits of members of Public Employees Retirement System includes wages of deceased member paid to spouse or dependent children. Provides that rules for accrual of retirement credit by school employees under Oregon Public Service Retirement Plan apply to employees of Oregon Health and Science University engaged in teaching or other school activity. Modifies break in service rules governing membership in Oregon Public Service Retirement Plan by person who leaves public employment for more than six months. Provides that person does not have break in service by reason of period of time during which person is absent from employment and receives disability retirement allowance. Provides that person does not have break in service by reason of period of time during which person leaves employment based on seasonal nature of employment. Provides that if person is vested in Public Employees Retirement System and was not providing service with participating employer in qualifying position on August 28, 2003, person has break in service only if person does not return to service with person's last pre-August 28, 2003, participating employer before January 1, 2006. Requires that service under Oregon Public Service Retirement Plan by person who has break in service be treated as creditable service under ORS chapter 238 (Public Employees Retirement System) for purpose of any statute in ORS chapter 238 that requires that member complete specified period of creditable service as condition of retiring or receiving other benefit. Requires that creditable service under ORS chapter 238 by person who has break in service be treated as retirement credit under ORS chapter 238A (Oregon Public Service Retirement Plan) for purpose of any statute in ORS chapter 238A that requires that member have specified amount of retirement credit as condition of retiring or receiving other benefit. Provides that earliest retirement age under Oregon Public Service Retirement Plan for person who has break in service is earliest retirement age for service under ORS chapter 238. Requires that Public Employees Retirement Board commence payment of death benefit under Oregon Public Service Retirement Plan as of date of death of member. Allows surviving spouse or other person entitled to death benefit to elect to delay payment of benefit until specified date. Requires Oregon Department of Administrative Services to establish more than one overtime average for class of state employees based on geographic placement of employees. Requires that Public Employees Retirement Board use definition of “salary” provided by ORS chapter 238 for purpose of computing employee contributions of certain members of individual account program of Oregon Public Service Retirement Plan. Establishes calculation for hours of service and retirement credit of community college academic employees under Oregon Public Service Retirement Plan. Declares emergency, effective on passage.
HB 3154 HB 3154 would have required State Board of Higher Education to study and make recommendations on standards of behavior for tenured faculty at state institutions of higher education.
HB 2157 HB 2157 provides authority to a variety of state agencies to request nationwide fingerprint-based background checks from the FBI for persons placed in a position of "public trust," and who deal with vulnerable populations or sensitive information. The House version of the bill was unclear on whether it applied to OUS faculty, so the bill was clarified in the Senate to make it clear that it did not apply to faculty and faculty would not be subject to fingerprinting.
HB 2534 HB 2534 would have prohibited state agency from filling position that is vacant for six months, and required an adjustment in budget of agency.
This bill would have permitted public employee who chooses not to be member of union to pay amount of money equivalent to union dues to public benefit corporation or foreign corporation that would be public benefit corporation under certain conditions.
SB 369 SB 369 sought to direct the State Board of Higher Education and State Board of Education to jointly develop common course numbering system. It would have directed state institutions of higher education and community colleges to accept, for credit toward degree, credits granted by other state institutions and colleges.
SB 220 was filed by the Oregon University System (OUS) and would have authorized OUS to employ or retain attorneys independent from the state Department of Justice. The bill grew out of a growing dissatisfaction with the costs, quality and timeliness of services provided by the Attorney General, who vigorously opposed the bill. After extensive negotiations, OUS and the Attorney General reached an agreement that obviated the need for legislation. Under the agreement, OUS will receive much more independence in supervising legal staff who are performing services for the system. If the agreement does not result in expected improvements in service and cost, the issue will be back before the Legislature in 2007.
SB 342 Directs community colleges and state institutions of higher education to cooperate in operating statewide articulation and transfer system to ensure that post-secondary education needs of students are met without unnecessary duplication of courses. Specifies tasks to be performed in continuing to provide and improve effective articulation and transfer framework. Directs Oregon University System and Department of Community Colleges and Workforce Development to report progress on operation of system to Emergency Board, legislative interim committee on education and Joint Boards of Education. Sunsets January 2, 2010.
SB 300 Creates Expanded Options Program for students attending public schools in grades 11 and 12 or who are 16 years of age or older. Allows eligible students to enroll in post-secondary courses for credit at eligible post-secondary institutions. Prohibits institutions from charging student post-secondary course costs. Directs resident school district to enter into agreement with institution for limited payment of costs from State School Fund grant of school district. Establishes cap on number of credit hours that may be awarded at each high school under Expanded Options Program.
HJR 26 This resolution would have proposed amendment to Oregon Constitution to limit amount of appropriations by Legislative Assembly. Specifies what constitutes appropriation. It would have referred proposed amendment to people for their approval or rejection at next regular general election.
HJR 36 HJR 36 would have proposed amendment to Oregon Constitution to limit appropriations and transfers of moneys. Allows Legislative Assembly to exceed limit by three-fifths vote of each house. It would have specified what constitutes appropriation, and exempted certain appropriations. It would have referred proposed amendment to people for their approval or rejection at next regular general election.
HJR 42 HJR 42 would have proposed amendment to Oregon Constitution to establish reserve fund consisting of excess tax revenues collected. The resolution would have required two-thirds vote of members of each house of Legislative Assembly to appropriate moneys from reserve fund. It would have referred proposed amendment to people for their approval or rejection at next regular general election.
SJR 29 SJR 29 would have proposed amendment to Oregon Constitution to establish reserve fund consisting of excess tax revenues collected. It would have required two-thirds vote of members of each house of Legislative Assembly to appropriate moneys from reserve fund. It would have referred proposed amendment to people for their approval or rejection at next regular general election.
SB 747 SB 747 sought to direct State Board of Higher Education to review long-term viability of state institutions of higher education and to report detailed findings of review to Governor, and Legislative Assembly no later than February 1, 2007.
HJR 55 This resolution sought to propose amendment to Oregon Constitution to direct Legislative Assembly to appropriate to State School Fund amount equal to 50 percent of projected personal income tax revenues beginning with 2007-2009 biennium. It would have allowed Legislative Assembly to appropriate additional amounts if moneys are from Kindergarten through Grade 12 Stabilization Fund or Education Stability Fund. HJR 55 would have directed Legislative Assembly to distribute amount above eight percent growth to Successful Schools Fund and Kindergarten through Grade 12 Stabilization Fund if revenue from personal income taxes increases more than eight percent over prior biennium. It would have established Kindergarten through Grade 12 Stabilization Fund, and specified conditions under which moneys may be appropriated, allocated or transferred to State School Fund. It also would have established Successful Schools Fund. Limits use to providing funding to school districts to improve student achievement. It would have referred proposed amendment to people for their approval or rejection at next regular general election.
SJR 5 SJR 5 sought to propose amendment to Oregon Constitution to allow Legislative Assembly, or people through initiative process, to enact laws limiting or prohibiting contributions or expenditures made in connection with campaigns for nomination or election to public office. It would have referred proposed amendment to people for their approval or rejection at next regular general election.
HJR 38 This resolution sought to propose amendment to Oregon Constitution specifying that Legislative Assembly, or people through initiative process, may enact laws limiting or prohibiting certain contributions made to candidates for public office. It would have referred proposed amendment to people for their approval or rejection at special election held on same date as next primary election.
HJR 44 This resolution would have proposed amendment to Oregon Constitution to allow people through initiative process, or Legislative Assembly by three-fourths vote of both Houses, to enact and amend laws to prohibit or limit contributions and expenditures to influence outcome of any election. It would have referred proposed amendment to people for their approval or rejection at next regular general election.
HB 3270 This bill would have set limits on amounts that may be contributed to political candidates and political committees. Limits amount candidate may contribute to candidate's own campaign. It would have modifies limits for contributions to other candidates if candidate contributes specified amount to candidate's own campaign. HB 3270 would have limited independent expenditures, and required filing of statement by person making certain independent expenditures. It would have prohibited direct corporate and labor union contributions, and directed Secretary of State to establish political contribution handle registration system to identify contributors. The bill also would have required transfer of unexpended balance of contributions to Secretary of State following end of election cycle. It would have established Voters' Pamphlet Operating Account, and directed moneys transferred to secretary to Voters' Pamphlet Operating Account. It continuously would have appropriated moneys to Secretary of State for purpose of preparing voters' pamphlet. HB 3270 would have taken effect only if amendment to Oregon Constitution allowing regulation of campaign contributions proposed by House Joint Resolution 44 (2005) is approved by people at next regular general election or Oregon Constitution otherwise allows provisions of bill.
SB 105 This bill would have modified break in service rule governing membership in Oregon Public Service Retirement Plan by person who leaves public employment for more than six months. It would have provided that employee does not have break in service by reason of period of time during which employee leaves public employment because of injury or disease that entitles employee to receive service disability allowance. SB 105 sought to provide that person who was inactive member on August 28, 2003, does not have break in service upon return to employment if person was on leave authorized by law or by employer and both person and employer anticipated that person would return to employment with employer upon completion of period of leave.
SB 1019 SB 1019 would have modified break in service rule for members of Public Employees Retirement System. It would have provided that person who is inactive member of Public Employees Retirement System on August 28, 2003, and who is reemployed in qualifying position on or before August 27, 2005, does not have break in service. Exceptions would have been provided. The bill would have provided that person does not have break in service by reason of period of time during which person is receiving temporary total disability payments under Workers' Compensation Law. It would have required that service under Oregon Public Service Retirement Plan by person who has break in service be treated as creditable service under ORS chapter 238 for purpose of any statute in ORS chapter 238 that requires that member complete specified period of creditable service as condition of retiring or receiving other benefit. The bill also would have required that creditable service under ORS chapter 238 by person who has break in service be treated as retirement credit under ORS chapter 238A for purpose of any statute in ORS chapter 238A that requires that member complete specified period of retirement credit as condition of retiring or receiving other benefit. This bill would have provided that earliest retirement age under Oregon Public Service Retirement Plan for person who has break in service is earliest retirement age for service under ORS chapter 238.
SB 1020 This bill would have provided that member of Public Employees Retirement System who retires under Oregon Public Service Retirement Plan and who is also receiving retirement allowance under ORS chapter 238 may be reemployed for period of time allowed under ORS chapter 238 and continue to receive pension under Oregon Public Service Retirement Plan. It would have provided that member of Public Employees Retirement System who retires under ORS chapter 238 may be reemployed for specified number of hours without regard to whether member is receiving retirement allowance.
SB 1022 This bill sought to require that Public Employees Retirement Board commence payment of death benefit under Oregon Public Service Retirement Plan as of date of death of member. It would have allowed surviving spouse or other person entitled to payment to elect to delay payment of death benefit until specified date. The bill would have provided that death benefit under ORS chapter 238 includes amount contributed by employer equal to amount in employee account established for member under individual account program of Oregon Public Service Retirement Plan, and provided pension options for members of Oregon Public Service Retirement Plan.
SB 1023 SB 1023 would have provided that member of Public Employees Retirement System does not have break in service by reason of period of time during which member leaves employment with anticipating public employer pursuant to agreement with employer. It would have required that agreement specify length of leave or provide that member will return to employment upon occurrence of specified event.
SB 1024 This bill would have modified definition of "final average salary" used to compute pension of member of Oregon Public Service Retirement Plan. It would have modified overtime limitation on salary used for determination of pension under Oregon Public Service Retirement Plan, and allowed public employer to establish more than one overtime average for class of employees based on geographic placement of employees. SB 1024 would have required that Public Employees Retirement Board use definition of "salary" provided by ORS chapter 238 for purpose of computing employee contributions of certain members of individual account program of Oregon Public Service Retirement Plan.
HB 5060 HB 5060 would have approved new or increased fee adopted by Public Employees Retirement Board.
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Phone: (503) 363-7084 - Fax: (503) 371-2471 - Email: pacounsel@pacounsel.org