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2014-205-Minutes for Meeting March 26,2014 Recorded 4/11/2014 DESCHUTES COUNTY CLERK w 2014405 NANCY COMMISSIONERS JOURNAL 04/11/2014 10;14:29 AM IIIIIliilijIIlIluhIIluhlI II 2 14 20 Do not remove this page from original document. Deschutes Count y Clerk Certificate Page 03f 41*4 t1:1/ 440(11110N ��rES Q Q { Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutcs.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, MARCH 26, 2014 Present were Commissioners Anthony DeBone and Alan Unger; Commissioner Tammy Baney was out of the office. Also present were Tom Anderson, County Administrator; and,for part of the meeting, Judith Ure, Administration; Wayne Lowry, Finance; Laurie Craghead and John Laherty, County Counsel; Chris Doty, Road Department; Nick Lelack and Cynthia Smidt, Community Development; Jamie Christman, Bend Chamber of Commerce; State Senator Tim Knopp; and by conference call, and Mark Nelson and Justen Rainey, Public Affairs Counsel. No representatives of the media were in attendance. Vice Chair DeBone opened the meeting at 1:30 p.m. 1. Legislative Wrap Up. Senator Tim Knopp said that he felt SB 1578 biomass was a great bill, and the Board helped; they got through Senate and were close to getting it through the House. It died in the final days of the session due to someone in Eugene who wants to keep the solar industry happy. He thinks the same Bill should come back, and they should isolate the biomass part of it to make it easier to discuss. There will be more opportunities to do this. This was his first short session, which felt like a special session except for 200+ bills that were introduced during the process. He thinks it was a terrible process for the public, since it was non-transparent and there was not enough time for input. He suggested that pressure be brought to make sure this does not continue. This is not what the public wanted, as they want an annual process that pays more attention to the budget and agencies. This did not happen, and it was being used for partisan political purposes. Some good things did happen, like the COCC-OSU bonding issue, and a couple of other bills that will be helpful long term. Minutes of Board of Commissioners' Work Session Wednesday, March 26, 2014 Page 1 of 7 Commissioner Unger thanked him for funding the basin study program that allows for grants to be pursued. Commissioner Unger asked if there was any public pressure regarding expectations. Senator Knopp replied they did the most they could. The short session is a constitutional provision but there were no sideboards established as to what they could really do. It needs to be the same thoughtful process as the regular session. This will change only through public pressure. They will have to adopt rules to impose limitations. Mark Nelson stated that there were about 280 bills introduced, and most of them were for policy. This did not stop some from putting in controversial and complicated bills. Nothing harmful got through and most things that were anti- county were stopped. The biomass bill did not get through because of one Representative who got it tied up. It had broad support, based on what happened in the Senate. They will have to push it through in the next session, and there should be more allies then. In terms of the wrongful death bill, it died in ways & means, as it was too complicated and tried to change workers comp statutes. There is an issue here, but it needs a different solution. The County Clerk bill was supported and passed. The Youth Development Funding Reallocation bill was opposed or neutral, but it will come back the next session. The issue is how and where that money will go. It died with others. Regarding the Early Learning Council issues and the HUBS, there will be some kind of effort to combine funding for all of them. Business Oregon passed the Oregon entrepreneurial loan fund, up to $100,000, and extended the loan period from five to ten years. The development fund for manufacturers, the extension program, got $750,000 additional for Business Oregon. Justen Rainey said that the March revenue forecast predicts the lottery funding will increase, with a relatively stable and modest gain. There will be no personal or corporate kicker refunds and the rainy day fund will get $160,000 for the 2015-16 session. The long session had a 2% holdback for agencies if revenue increased. Most agencies allocate 25% of the holdback. Some receive the full 2% but most got a smaller amount. The longer forecasts are harder to predict, but by 2017-19, the general fund lottery should go up another $3 billion. Minutes of Board of Commissioners' Work Session Wednesday, March 26, 2014 Page 2 of 7 $40 million was provided from the general fund for fire season. Some funds were allocated to cover the gap et a P for corrections. g Mr. Nelson stated that the Speaker and Governor would be back with some kind of approach, perhaps not the same, regarding the Youth Development Council funds as well as the ELC and HUBS. Some HUBS have been established but not as many as they anticipated. Senator Knopp and others need to think about the biomass bills and be mindful of the timelines. Mr. Rainey noted that there would be questions regarding the CCO's, health care funding in general, and land use. Mr. Nelson stated that they need to have the Juvenile Directors and counties in. line with each other so that some will not be manipulated by the Governor or others. This was an extremely difficult bill to kill. AOC waived as did others, but they need a firm agreement. Commissioner Unger said there are challenges. They were against it at first but some of it was made acceptable. The dynamics made it difficult. Mr. Nelson explained that they Board makes policy, but there was great pressure especially from Marion County. In the end, they still would have gotten everything they did not want. The Board has a right to its original decision, and in the end, the hoped-for changes would not have happened. Nick Lelack asked if they should try to kill some things in committee before they even come up with a Bill. In particular, the appeal cap, as he feels they should be able to control the fees locally. Landwatch and Thousand Friends support it and they continue to meet. The County is the target. Commissioner Unger asked if they should look to the departments to get ready for the next session, and whether there is a list to follow. Tom Anderson said that most departments have their own committees and groups for this, and are now in the process of decompressing from this past session. Mr. Rainey said that during legislative days, they reconvene the calls and check in with department heads. In September there are filing days. They all need to be on the same page and timeline. Minutes of Board of Commissioners' Work Session Wednesday, March 26, 2014 Page 3 of 7 Chris Doty said he is following the transportation bill formulation and concepts. Commissioner DeBone said he went to Salem for one of the bills, and it was amazing who was there from here. There is a good team but things move pretty fast. Commissioner Unger asked if they need to bring in department heads before legislative days. Mr. Rainey replied that he wants to know what is going on at the local level. They can target meetings around that time and report back. Mr. Nelson added that other than Multnomah County, Deschutes, Lane and Linn have more clout than anyone else. They should take advantage of that and look at the things they really want to change. They recently hired J.L. Wilson, Sr., an experienced lobbyist from the Association of Oregon Industries. He is well-respected and will be part of a good team. They can start working on things in the interim. Commissioner DeBone said he is following the low carbon fuels taskforce meetings. They have the concept of reducing carbon fuel intensity. He likes the economic diversity opportunities of this, natural gas and others. Mr. Nelsons stated that they represent food processors and others in this regard. The low carbon fuels bill sunsets, but has been opposed universally and the standards cannot be met. He needs to know if this is a conflict. Commissioner DeBone said that he is not in a position to support or oppose since he needs to know more of the big picture. He wants to diversify energy sources, but this is not the County's position at all at this time. Jamie Christman of the Bend Chamber of Commerce said she followed SB 1578, and the goal is to find areas to collaborate and put together a stronger voice. She appreciates the opportunity to learn more. Mr. Nelson and Mr. Rainey left the meeting at this point. Senator Knopp stated that the new person with PAC is a coup, as he is a very high level executive from AOI. They will have multiple people in that firm to help the County and their other clients. Minutes of Board of Commissioners' Work Session Wednesday, March 26, 2014 Page 4 of 7 Commissioner Unger stated that the County was considering an RFP, but he is hearing that this is the right team for the County. Senator Knopp said that if he was hiring someone for the Builders' Association, it would be them. Their experience cannot be beat due to their wide scope of work and their client base. They have more influence than most. Commissioner Unger noted that a couple of sessions ago, there were some conflicts with what the County wanted and what some of their other clients wanted. Senator Knopp replied that this will happen occasionally with any of them, but the positives will far outweigh the negatives. Judith Ure observed that they have not raised their fees since 2003. Commissioner DeBone said this is a public process and may be something they should do anyway. They could discuss the appropriate timeframe and. expectations. Commissioner Unger noted that he is not sure how much work they do specifically for the County. Ms. Christman stated that the way the County prioritizes is helpful and organized. The organizational aspects speak highly of the County, but the session itself seemed crazy. Ms. Ure said that the Assessor tells her that no other county is as involved with. the legislative sessions as this one. Ms. Christman and Senator Knopp left the meeting at this time. Commissioner Unger asked if they want to proceed with an RFP for lobbyist services. Commissioner DeBone replied they would want to do this with light hands, and it needs to be quick and decisive if it is to be done. 2. Other Items. Commissioner Unger stated that the a letter was drafted for Deschutes Collaborative Forest Project, to support the Nature Conservancy in a grant request to do collaborative work. UNGER: Move support of the letter. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Vice Chair votes yes. Minutes of Board of Commissioners' Work Session Wednesday, March 26, 2014 Page 5 of 7 Commissioner Unger discussed a request for support from the Collaborative Forest Landscape Group. The letters go to the chairs of committees, to encourage budget funding for collaborative forest projects. The potential is $40 to $60 million. UNGER: Move support of the letter to the group. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Vice Chair votes yes. Commissioner DeBone said he received a letter from Charles Boyd of Tumalo, who opposes the Newland land use application, and asked for a lot of money for his property that he wanted to sell twenty years ago for the same reasons. Commissioner Unger noted that he does traffic counts from Eagle Crest and other things he thinks need to be done. Ms. Craghead stated that this case is still open, but the comment period is closed. This is an ex parte contact, so if it comes to the Board later, this can be put on the record then. Commissioner Unger said that the Community Solutions Team was codified the last session and wants to reaffirm the appointment of members. Mr. Anderson stead that there are regional groups who want the chairs of those groups to nominate a super team or statewide team. Commissioner Unger said that he and Commissioner Hatfield are on the team. There are four elected officials. They are trying to create more regional equity. There is a April 4 deadline. He needs to affirm that he will continue on this team. Mr. Anderson stated that a letter was drafted showing Board support of OSU Cascades. It is non-committal except for the vision, as the Board did not want to volunteer support of a specific location. This comes through the City process. UNGER: Move support of the letter as written. DEBONE: Second. Minutes of Board of Commissioners' Work Session Wednesday, March 26, 2014 Page 6 of 7 VOTE: UNGER: Yes. DEBONE: Vice Chair votes yes. Being no further discussion, the Board went into Executive Session, under ORS 192.660(2)(h), pending or threatened litigation, at 3:25 p.m. IA DATED this '"( Day of 2014 for the Deschutes County Board of Commissioners. Tammy Baney, Chair ./ a /I Anthony DeBone, Vice Chair ATTEST: AAA-- idzormAdadcL,, (&244,L___ Alan Unger, Commissioner Recording Secretary II Minutes of Board of Commissioners' Work Session Wednesday, March 26, 2014 Page 7 of 7 ", Deschutes County Board of Commissioners 1300 NW Wall St. Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 -www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 P.M., WEDNESDAY, MARCH 26, 2014 1. Legislative Wrap Up —Judith Ure 2. Other Items Executive Session, under ORS 192.660(2)(h), pending or threatened litigation— County Counsel PLEASE NOTE:At any time during this meeting,an executive session could be called to address issues relating to ORS 192.660(2)(e),real property negotiations;ORS 192.660(2)(h),litigation;ORS I92.660(2)(d),labor negotiations;or ORS 192.660(2)(h),personnel issues;or other issues under ORS 192.660(2),executive session. Meeting dates,times and discussion items are subject to change. All meetings are conducted in the Board of Commissioners'meeting rooms at 1300 NW Wall St.,Bend,unless otherwise indicated. If you have questions regarding a meeting,please call 388-6572. Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible,please call(541)388-6571,or send an e-mail to bonnie.baker(ijdeschutes.org. v.X...... ..„, . 2 o .. co ,. ..— 07; • E I :, 6 . , c 0 II . III II :a) 11 I -o: 1:14 I , '''''''''' •1113) --...,4:1 I !..L.) -r- , . .\\,..1 SI 1 \" 41 41 ,. .. r., ... ;a,, C 0 ,---) ...„ „... co 03) CA. tei 0., i..„ ■4 .... ^4 ....) IL 14.1 _Ne ti -51%) c.. w c). I'LI B ►tl °'' FFAzRS C w l E L Deschutes County 2014 Session Wrap Up Wednesday, March 26,2014 1:30pm Deschutes Services Building Allen Room(in the 2nc1 floor of the County Commissioners office) 1300 NW Wall Street Bend,OR 1-866-279-1568 *8678842* I. CENTRAL OREGON LEGISLATOR UPDATES a. Update from Central Oregon Delegation on the 2014 Session II. PUBLIC AFFAIRS COUNSEL LEGISLATIVE REPORT a. Update on the 2014 Legislative Session b. Deschutes County Priority 1 Bills i. SB 1578-Biomass c. Deschutes County Priority 2 Bills i. HB 4048-Wrongful Death(Oppose) 1. Died ii. HB 4056- County Clerk Technical Fix(Support) 1. Passed i. HB 4134-Youth Development Council Funding Reallocation (Oppose) 2. Died iii. HB 4141 - (Property Tax Exemptions/School Districts (Oppose) 1. Died iv. SB 1563-Business Oregon/Entrepreneurial Development(Neutral) 1. Passed III. UPDATE ON THE OREGON'S FINANCIAL AND BUDGET STATUS a. February Revenue Report b. 2013-15 Budget Outlook c. 2015-17 Budget Outlook IV. UPCOMING KEY TIMELINES AND INTERIM SESSION DATES a. Interim Legislative Days i. May 28-30,2014 ii. September 15-17, 2014 iii. December 8-10,2014 b. Organizational Days/2015 Session i. Organizational Days-January 12-14, 2015 ii. Session Starts-February 2,2015 c. 2015 Legislative Deadlines i. Pre-Session Drafts to LC by September 22, 2014 ii. LC Drafts Returned by December 5,2014 iii. LC Drafts Pre-Session Filing Deadline is December 19,2014 V. DISCUSSION ON LOOMING 2015 ISSUES TO MONITOR a. What to Expect in 2015? VI. NEXT MEETING a. TBD 2 Public Affairs Counsel 2014 Regular Session Bill Summary Report Deschutes County SB 1578B Position Priority Date Input Bill Info Support 1 1/28/14 Summary: Modifies types of green energy technology for which at least 1.5 percent of total contract price of certain public improvement contract for construction or certain reconstruction or major renovation of public building must be spent. Status: 3/7/14 H-In committee upon adjournment. 2/21/14 H-Work Session held. 2/21/14 H-Referred to Rules by order of Speaker. 2/21/14 H-Recommendation:Do pass with amendments,be printed B-Engrossed,and be referred to Rules. 2/20/14 H-Public Hearing and Work Session held. 2/19/14 H-First reading.Referred to Speaker's desk. 2/19/14 H-Referred to Energy and Environment. 2/18/14 S-Third reading. Carried by Knopp. Passed.Ayes,29;nays,1--Edwards. 2/17/14 S-Second reading. 2/14/14 S-Recommendation:Do pass with amendments and subsequent referral to Finance and Revenue be rescinded.(Printed A-Eng.) 2/14/14 S-Subsequent referral rescinded by order of the President. 2/13/14 S-Public Hearing and Work Session held. 2/3/14 S-Introduction and first reading.Referred to President's desk. 2/3/14 S-Referred to Rural Communities and Economic Development,then Finance and Revenue. HB 4048A Position Priority Date Input Bill Info Oppose 2 1/27/14 Summary: Provides that public body and its officers,employees and agents are not immune from liability for wrongful death of person who is covered by workers'compensation law if death occurred in course and scope of decedent's employment,death occurred as result of criminal conduct and decedent was not employed by public body at time of death. Status: 3/7/14 H-In committee upon adjournment. 2/19/14 H-Public Hearing held. 2/17/14 H-Assigned to Subcommittee On Public Safety. 2/13/14 H-Referred to Ways and Means by order of Speaker. 2/13/14 H-Recommendation:Do pass with amendments,be printed A-Engrossed,and be referred to Ways and Means. 2/11/14 H-Work Session held. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Public Hearing held. 2/3/14 H-Referred to Judiciary. HB 4056 Position Priority Date Input Bill Info Support 2 1/27/14 Summary: Prohibits county clerk or county recording officer from recording document that records death filed in conjunction with owning or having interest in land if document originated in this state and includes medical information related to cause of death. 3/24/2014 2:27:51 PM 3 Public Affairs Counsel 2014 Regular Session Bill Summary Report Status: 3/18/14 H-Chapter 60,(2014 Laws): Effective date March 13,2014. 3/13/14 H-Governor signed. 3/6/14 S-President signed. 3/6/14 H-Speaker signed. 3/3/14 H-House concurred in Senate amendments and repassed bill.Ayes,58;Excused,2--Berger, Weidner. 2/28/14 S-Third reading. Carried by Boquist. Passed.Ayes,30. 2/27/14 S-Second reading. 2/26/14 S-Recommendation:Do pass with amendments. (Printed A-Eng.) 2/25/14 S-Public Hearing and Work Session held. 2/11/14 S-Referred to Rules. 2/10/14 S-First reading.Referred to President's desk. 2/6/14 H-Third reading.Carried by Whisnant.Passed.Ayes,59;Excused for Business of the House,1-- Jenson. 2/5/14 H-Second reading. 2/4/14 H-Recommendation:Do pass. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Public Hearing and Work Session held. 2/3/14 H-Referred to Rules. HB 4134B Position Priority Date Input Bill Info Oppose 2 1/27/14 Summary: Directs Youth Development Council to allocate funds available to support community-based prevention and intervention programs and services based on indicators of need for youth ages 6 through 20. Status: 3/7/14 H-In committee upon adjournment. 2/20/14 H-Referred to Ways and Means by prior reference. 2/20/14 H-Without recommendation as to passage,with amendments,be printed B-Engrossed,and be referred to Ways and Means by prior reference. 2/19/14 H-Work Session held. 2/13/14 H-Without recommendation as to passage,with amendments,be printed A-Engrossed,be referred to Rules,and then referred to Ways and Means by prior reference. 2/13/14 H-Referred to Rules by order of Speaker and then Ways and Means by prior reference. 2/12/14 H-Public Hearing and Work Session held. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Referred to Education with subsequent referral to Ways and Means. HB 4141 Position Priority Date Input Bill Info Oppose 2 1/27/14 Summary: Provides that certain property tax exemptions and certain cancellations of property taxes do not apply to property taxes imposed by school districts or education service districts. Status: 3/7/14 H-In committee upon adjournment. 2/5/14 H-Public Hearing held. 2/3/14 H-Referred to Revenue. 2/3/14 H-First reading.Referred to Speaker's desk. 3/24/2014 2:27:51 PM 4 Public Affairs Counsel 2014 Regular Session Bill Summary Report SB 1563A Position Priority Date Input Bill Info Neutral 2 2/25/14 Summary: Authorizes Oregon Business Development Department to undertake entrepreneurial development activities for traded sector industries and in rural communities. Status: 3/10/14 S-Chapter 3,2014 Laws. 3/10/14 S-Effective date,February 26,2014. 2/26/14 S-Governor signed. 2/24/14 H-Speaker signed. 2/21/14 S-President signed. 2/20/14 H-Potential conflict(s)of interest declared by Smith. 2/20/14 H-Third reading.Carried by McKeown.Passed.Ayes,56;Nays,1--Weidner;Excused,2--Davis, Matthews;Excused for Business of the House,1--Tomei. 2/19/14 H-Second reading. 2/19/14 H-Recommendation:Do pass. 2/18/14 H-Public Hearing and Work Session held. 2/12/14 H-First reading.Referred to Speaker's desk. 2/12/14 H-Referred to Rural Communities. 2/11/14 S-Third reading. Carried by Rosenbaum,Beyer. Passed.Ayes,29;excused,1--George. 2/10/14 S-Second reading. 2/6/14 S-Recommendation:Do pass with amendments. (Printed A-Eng.) 2/5/14 S-Public Hearing and Work Session held. 2/3/14 S-Introduction and first reading.Referred to President's desk. 2/3/14 S-Referred to General Government,Consumer and Small Business Protection. HB 4015A Position Priority Date Input Bill Info Neutral 3 1/27/14 Summary: Directs certain state agencies to use regional priorities for community and economic development in consideration of project funding decisions made in connection with grant,loan or incentive programs. Status: 3/12/14 5-President signed. 3/11/14 H-Speaker signed. 3/6/14 S-Johnson,Winters declared potential conflict of interest. 3/6/14 5-Third reading. Carried by Hansell. Passed.Ayes,30. 3/5/14 5-Recommendation:Do pass the B-Eng.bill. 3/5/14 S-Second reading. 3/4/14 S-First reading.Referred to President's desk. 3/4/14 H-Second reading. 3/4/14 H-Rules suspended.Third reading.Carried by Read.Passed.Ayes,57;Absent,1--Cameron; Excused,2--Berger,Weidner. 3/4/14 S-Referred to Ways and Means. 3/4/14 H-Potential conflict(s)of interest declared by Smith. 3/3/14 H-Recommendation:Do pass with amendments and be printed B-Engrossed. 3/3/14 H-Work Session held. 2/27/14 H-Returned to Full Committee. 3/24/2014 2:27:51 PM 5 Public Affairs Counsel 2014 Regular Session Bill Summary Report 2/27/14 H-Work Session held. 2/25/14 H-Public Hearing held. 2/17/14 H-Assigned to Subcommittee On Transportation and Economic Development. 2/14/14 H-Referred to Ways and Means by order of Speaker. 2/14/14 H-Recommendation:Do pass with amendments,be printed A-Engrossed,and be referred to Ways and Means. 2/13/14 H-Work Session held. 2/11/14 H-Public Hearing held. 2/6/14 H-Public Hearing and Possible Work Session cancelled. 2/3/14 H-Referred to Rural Communities. 2/3/14 H-First reading.Referred to Speaker's desk. HB 4017A Position Priority Date Input Bill Info Oppose 3 1/27/14 Summary: For purposes of litigation regarding local improvement district assessment or reassessment lien levied within certain dates by city,if owner or predecessor in interest objected to formation of district and assessment or reassessment was more than double real market value of property and exceeded real market value by more than$1.4 million,requires court to revise assessment or reassessment,if higher,down to dollar value of special benefit to property attributable to local improvement on date Status: 3/7/14 H-In committee upon adjournment. 2/14/14 H-Without recommendation as to passage,with amendments,be printed A-Engrossed,and be referred to Rules. 2/14/14 H-Referred to Rules by order of Speaker. 2/13/14 H-Work Session held. 2/11/14 H-Public Hearing held. 2/3/14 H-Referred to Rural Communities. 2/3/14 H-First reading.Referred to Speaker's desk. HB 4024 Position Priority Date Input Bill Info No Position 3 1/27/14 Summary: Authorizes Bureau of Labor and Industries to adopt rules to implement provisions of statute requiring public employer to interview each veteran who applies for civil service position or eligibility list,if veteran has skills from military education or experience that substantially relate to civil service position. Status: 3/7/14 H-In committee upon adjournment. 2/27/14 H-Motion to withdraw from Veterans'Services and Emergency Preparedness failed.Ayes,29; Nays,31--Bailey,Barker,Barnhart,Barton,Boone,Buckley,Clem,Doherty,Frederick,Gelser, Gomberg,Greenlick,Harker,Holvey,Hoyle,Keny-Guyer,Komp,Lininger,Lively,Matthews, McKeown,Nathanson,Read,Reardon,Smith Warner,Tomei,Unger,Vega Pederson,Williamson, Witt,Speaker Kotek. 2/3/14 H-Referred to Veterans'Services and Emergency Preparedness. 2/3/14 H-First reading.Referred to Speaker's desk. HB 4037 Position Priority Date Input Bill Info Support 3 1/27/14 3/24/2014 2:27:51 PM 6 Public Affairs Counsel 2014 Regular Session Bill Summary Report Summary: Authorizes county sheriff to designate county juvenile department or Oregon Youth Authority to provide direct transfer of juvenile offenders to youth correction facility as part of agreement with Department of Corrections or supervisory authority of county. Status: 3/18/14 H-Chapter 31,(2014 Laws):Effective date March 6,2014. 3/6/14 H-Governor signed. 2/27/14 S-President signed. 2/26/14 H-Speaker signed. 2/24/14 S-Third reading. Carried by Prozanski. Passed.Ayes,30. 2/21/14 S-Recommendation:Do pass. 2/21/14 S-Second reading. 2/20/14 S-Public Hearing and Work Session held. 2/17/14 5-First reading.Referred to President's desk. 2/17/14 S-Referred to Judiciary. 2/14/14 H-Rules suspended.Third reading.Carried by Barton.Passed.Ayes,58;Excused,2--Hanna, Richardson. 2/14/14 H-Second reading. 2/13/14 H-Recommendation:Do pass. 2/11/14 H-Work Session held. 2/6/14 H-Public Hearing held. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Referred to Judiciary. HB 4039A Position Priority Date Input Bill Info Neutral 3 2/5/14 Summary: Provides exemption from ad valorem property taxation for property of nonprofit corporation that, for tax year beginning on July 1,2012,was actually offered,occupied or used as low-income housing and granted exemption by county. Status: 3/18/14 H-Chapter 7,(2014 Laws):Effective date June 6,2014. 3/3/14 H-Governor signed. 2/25/14 H-Speaker signed. 2/25/14 S-President signed. 2/21/14 5-Third reading. Carried by Baertschiger Jr. Passed.Ayes,27;excused,3--Beyer,Olsen,Winters. 2/20/14 5-Second reading. 2/20/14 S-Recommendation:Do pass. 2/19/14 S-Public Hearing and Work Session held. 2/14/14 S-Referred to Finance and Revenue. 2/14/14 S-First reading.Referred to President's desk. 2/14/14 H-Third reading.Carried by Berger.Passed.Ayes,56;Excused,3--Conger,Hanna,Richardson; Excused for Business of the House,1--Speaker Kotek. 2/13/14 H-Recommendation:Do pass with amendments and be printed A-Engrossed. 2/13/14 H-Second reading. 2/11/14 H-Work Session held. 2/5/14 H-Public Hearing held. 2/3/14 H-First reading.Referred to Speaker's desk. 3/24/2014 2:27:51 PM Public Affairs Counsel 2014 Regular Session Bill Summa ry Report ort 2/3/14 H-Referred to Revenue. HB 4055A Position Priority Date Input Bill Info Support 3 1/27/14 Summary: Establishes procedures for collecting emergency communications tax on prepaid wireless telecommunications service and interconnected Voice over Internet Protocol service. Status: 3/18/14 H-Chapter 59,(2014. Laws):Effective date June 6,2014. 3/13/14 H-Governor signed. 3/4/14 S-President signed. 3/4/14 H-Speaker signed. 2/28/14 S-Third reading. Carried by Burdick. Passed.Ayes,30. 2/27/14 S-Second reading. 2/27/14 S-Recommendation:Do pass the A-Eng.bill. 2/26/14 S-Public Hearing and Work Session held. 2/24/14 S-Referred to Finance and Revenue. 2/24/14 5-First reading.Referred to President's desk. 2/21/14 H-Second reading. 2/21/14 H-Rules suspended.Third reading.Carried by Berger.Passed.Ayes,56;Nays,1--Hicks;Absent, 1--Unger;Excused,2--Davis,Esquivel. 2/20/14 H-Recommendation:Do pass with amendments and be printed A-Engrossed. 2/20/14 H-Work Session held. 2/4/14 H-Public Hearing held. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Referred to Revenue. HB 4080 Position Priority Date Input Bill Info Support 3 1/27/14 Summary: Establishes procedures for collecting emergency communications tax imposed on consumers of prepaid wireless telecommunications service. Status: 3/7/14 H-In committee upon adjournment. 2/4/14 H-Public Hearing held. 2/3/14 H-Referred to Revenue with subsequent referral to Ways and Means. 2/3/14 H-First reading.Referred to Speaker's desk. HB 4089 Position Priority Date Input Bill Info Support 3 1/27/14 Summary: Limits length of incarceration court may impose when certain probationary sentences are revoked for reasons other than commission of new crime. Status: 3/7/14 H-In committee upon adjournment. 2/11/14 H-Public Hearing held. 2/3/14 Fl-Referred to Judiciary. 2/3/14 H-First reading.Referred to Speaker's desk. HB 4099 3/24/2014 2:27:51 PM 8 Public Affairs Counsel 2014 Regular Session Bill Summary Report Bill Info Position Priority Date Input Neutral 3 2/4/14 Summary: Directs Department of Justice to conduct study on laws of this state that would need to be amended if people of this state vote to legalize marijuana at next regular general election held throughout this state. Status: 3/7/14 H-In committee upon adjournment. 2/24/14 H-Public Hearing held. 2/17/14 H-Assigned to Subcommittee On Public Safety. 2/12/14 H-Recommendation:Do pass and be referred to Ways and Means by prior reference. 2/12/14 H-Referred to Ways and Means by prior reference. 2/5/14 H-Public Hearing and Work Session held. 2/3/14 H-Referred to Judiciary with subsequent referral to Ways and Means. 2/3/14 H-First reading.Referred to Speaker's desk. HB 4106 Position Priority Date Input Bill Info Neutral 3 1/27/14 Summary: Exempts from property taxation real and personal property of history museum,natural history museum or science museum that is land on which museum is situated or that is used in conjunction with public displays,used to educate public,used to sell goods related to displays or educational purpose of museum,used to sell goods and services providing refreshment to public while visiting museum or used as theater for presentations about history or science. Status: 3/7/14 H-In committee upon adjournment. 2/6/14 H-Public Hearing held. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Referred to Revenue. HB 4112 Position Priority Date Input Bill Info Oppose 3 1/27/14 Summary: Requires tax collector of county in which real property is located to assign property tax lien to assignee if tax collector receives written authorization from property owner and payment of taxes and fee from assignee. Status: 3/7/14 H-In committee upon adjournment. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Referred to Revenue. HB 4119 Position Priority Date Input Bill Info Oppose 3 1/27/14 Summary: Permits contracting agency to solicit or use pricing policies or proposals or other pricing information to determine compensation for consultant providing certain services only after contracting agency has selected candidate and before entering into contract with consultant. Status: 3/7/14 H-In committee upon adjournment. 2/14/14 H-Motion to refer to Rules carried.Referred. 2/14/14 H-Third reading.Carried by Hoyle. 2/13/14 H-Rules suspended.Carried over to February 14,2014. Calendar. 3/24/2014 2:27:51 PM 9 Public Affairs Counsel 2014 Regular Session Bill Summary Report 2/12/14 H-Second reading. 2/11/14 H-Recommendation:Do pass. 2/10/14 H-Work Session held. 2/7/14 H-Work Session cancelled. 2/5/14 H-Public Hearing held. 2/3/14 H-Referred to Business and Labor. 2/3/14 H-First reading.Referred to Speaker's desk. HB 4122A Position Priority Date Input Bill Info Oppose 3 1/27/14 Summary: Requires state contracting agency or public corporation that implements information technology initiative to obtain,in separate procurement,quality management services from qualified contractor if value of information technology initiative exceeds$5 million or meets certain other criteria. Status: 3/19/14 H-Governor signed. 3/7/14 H-Speaker signed. 3/7/14 S-President signed. 3/5/14 H-House concurred in Senate amendments and repassed bill.Ayes,41;Nays,16--Bentz,Davis, Esquivel,Freeman,Gilliam,Hanna,Hicks,Jenson,Krieger,McLane,Olson,Parrish,Sprenger, Thompson,Whisnant,Whitsett;Excused,3--Berger,Conger,Weidner. 3/4/14 S-Third reading. Carried by Beyer. Passed.Ayes,25;nays,5--Baertschiger Jr,George,Girod, Kruse,Whitsett. 3/3/14 S-Second reading. 2/28/14 S-Recommendation:Do pass with amendments to the A-Eng.bill.(Printed B-Eng.) 2/27/14 S-Public Hearing and Work Session held. 2/19/14 S-Referred to Rules. 2/18/14 S-First reading.Referred to President's desk. 2/17/14 H-Third reading.Carried by Nathanson.Passed.Ayes,40;Nays,18--Bentz,Berger,Conger, Davis,Esquivel,Hanna,Jenson,Kennemer,Krieger,McLane,Olson,Parrish,Richardson, Sprenger,Thompson,Weidner,Whisnant,Whitsett;Excused,2--Hicks,Tomei. 2/14/14 H-Second reading. 2/14/14 H-Recommendation:Do pass with amendments and be printed A-Engrossed. 2/13/14 H-Work Session held. 2/6/14 H-Public Hearing held. 2/3/14 H-First reading.Referred to Speaker's desk. 2/3/14 H-Referred to Consumer Protection and Government Efficiency. HB 4144 Position Priority Date Input Bill Info Support 3 1/27/14 Summary: Establishes Oregon Investment Department as public investment agency to be supervised by director appointed by Oregon Investment Council. Status: 3/7/14 H-Second reading. 3/6/14 H-Work Session held. 3/6/14 H-Recommendation:Do pass with amendments and be printed A-Engrossed. 3/5/14 H-Work Session held. 3/5/14 Fl-Returned to Full Committee. 3/24/2014 2:27:51 PM 10 Public Affairs Counsel 2014 Regular Session Bill Summary Report 3/5/14 H-Work Session held. 3/4/14 H-Public Hearing held. 3/3/14 H-Assigned to Subcommittee On Capital Construction. 2/18/14 H-Referred to Ways and Means by prior reference. 2/18/14 H-Recommendation:Do pass and be referred to Ways and Means by prior reference. 2/17/14 H-Public Hearing and Work Session held. 2/3/14 H-Referred to Rules with subsequent referral to Ways and Means. 2/3/14 H-First reading.Referred to Speaker's desk. NB 4155 Position Priority Date Input Bill Info Support 3 2/12/14 Summary: Authorizes Public Employees Retirement Board to establish procedures for recovering administrative costs from participating public employers for providing to those employers information or services needed to report in compliance with generally accepted accounting principles. Status: 3/6/14 S-President signed. 3/6/14 H-Speaker signed. 3/3/14 5-Third reading. Carried by Starr. Passed.Ayes,28;excused,2--Baertschiger Jr,Winters. 2/28/14 S-Second reading. 2/28/14 S-Recommendation:Do pass. 2/27/14 5-Public Hearing and Work Session held. 2/24/14 S-First reading.Referred to President's desk. 2/24/14 S-Referred to Rules. 2/21/14 H-Rules suspended.Third reading.Carried by Berger. Passed.Ayes,57;Absent,1--Thompson; Excused,2--Davis,Esquivel. 2/20/14 H-Second reading. 2/20/14 H-Recommendation:Do pass. 2/19/14 H-Public Hearing and Work Session held. 2/12/14 H-Referred to Rules. 2/10/14 H-First reading.Referred to Speaker's desk. SB 1501 Position Priority Date Input Bill Info Support 3 1/27/14 Summary: Exempts energy savings performance contracts,under certain circumstances,from requirement to use competitive bidding process to award public improvement contracts. Status: 3/7/14 5-In committee upon adjournment. 2/6/14 S-Possible Work Session cancelled. 2/3/14 S-Referred to Business and Transportation. 2/3/14 5-Introduction and first reading.Referred to President's desk. SB 1513A Position Priority Date Input Bill Info Support 3 1/27/14 Summary: Makes cost assistance available for reforestation of small forestland following loss from catastrophic fire event. Status: 3/24/2014 2:27:51 PM 11 Public Affairs Counsel 2014 Regular Session Bill Summary Report 3/7/14 S-In committee upon adjournment. 2/12/14 S-Referred to Ways and Means by prior reference. 2/12/14 S-Recommendation:Do pass with amendments and be referred to Ways and Means by prior reference.(Printed A-Eng.) 2/11/14 S-Public Hearing and Work Session held. 2/6/14 S-Possible Work Session cancelled. 2/3/14 S-Introduction and first reading.Referred to President's desk. 2/3/14 S-Referred to Rural Communities and Economic Development,then Ways and Means. SB 1518 Position Priority Date Input Bill Info Neutral 3 1/27/14 Summary: Modifies definition of"supervisory employee"for purposes of public employee collective bargaining law. Status: 3/10/14 S-Effective date,March 3,2014. 3/10/14 S-Chapter 15,2014 Laws. 3/3/14 S-Governor signed. 2/24/14 S-President signed. 2/24/14 H-Speaker signed. 2/21/14 H-Third reading.Carried by Matthews,Doherty. Passed.Ayes,54;Nays,3--Bentz,Huffman, Whitsett;Excused,2--Davis,Esquivel;Excused for Business of the House, 1--Thatcher. 2/20/14 H-Second reading. 2/20/14 H-Recommendation:Do pass. 2/19/14 H-Public Hearing and Work Session held. 2/14/14 S-Recommendation:Do pass. 2/14/14 S-Second reading. 2/14/14 S-Rules suspended.Third reading. Carried by Beyer. Passed.Ayes,18;nays,12--Baertschiger Jr, Boquist,Close,Ferrioli,George,Girod,Hansell,Knopp,Kruse,Olsen,Thomsen,Whitsett. 2/14/14 H-First reading.Referred to Speaker's desk. 2/14/14 H-Referred to Business and Labor. 2/14/14 S-Motion to refer to Rules with the recommendation to adopt the-1 amendment failed.Ayes,14; nays,16--Bates,Beyer,Burdick,Dembrow,Devlin,Edwards,Hass,Johnson,Monnes Anderson, Monroe,Prozanski,Roblan,Rosenbaum,Shields,Steiner Hayward,President Courtney. 2/12/14 S-Work Session held. 2/5/14 S-Public Hearing held. 2/3/14 S-Referred to General Government,Consumer and Small Business Protection. 2/3/14 S-Introduction and first reading.Referred to President's desk. SB 1531A Position Priority Date Input Bill Info No Position 3 1/27/14 Summary: Specifies that governing body of city or county may adopt ordinances that impose reasonable regulations on operation of medical marijuana facilities. Status: 3/20/14 S-Effective date,March 19,2014. 3/20/14 S-Chapter 79,2014 Laws. 3/19/14 S-Governor signed. 3/11/14 S-President signed. 3/24/2014 2:27:51 PM 12 Public Affairs Counsel 2014 Regular Session Bill Summary Report 3/11/14 H-Speaker signed. 3/7/14 S-Senate concurred in House amendments and repassed bill.Ayes,28;nays,2--Dembrow, Shields. 3/5/14 H-Minority Recommendation:Do pass. 3/5/14 H-In absence of motion to substitute Minority Report for Committee Report,bill advanced to third reading by order of Presiding Officer. 3/5/14 H-Vote explanation(s)filed by Buckley,Holvey,Keny-Guyer. 3/5/14 H-Read.Carried by Clem.Passed.Ayes,51;Nays,6--Bentz,Greenlick,Hanna,Holvey,Smith, Thompson;Excused,3--Berger,Conger,Weidner. 3/5/14 H-Recommendation:Do pass with amendments and be printed C-Engrossed. 3/4/14 H-Read.Carried by Olson. 3/4/14 H-Motion to refer to Rules carried.Referred.Ayes,30;Nays,28--Barker,Bentz,Cameron, Conger,Davis,Esquivel,Freeman,Gilliam,Gorsek,Hanna,Hicks,Huffman,Jenson,Johnson, Kennemer,Krieger,Matthews,McLane,Olson,Parrish,Richardson,Smith,Sprenger,Thatcher, Thompson,Whisnant,Whitsett,Witt;Excused,2--Berger,Weidner. 3/4/14 H-Work Session held. 3/3/14 H-Third reading. Carried by Olson. 3/3/14 H-Motion to make Special Order of Business on Tuesday,March 4,2014 adopted.Ayes,31;Nays, 27--Barker,Bentz,Cameron,Conger,Davis,Esquivel,Freeman,Gilliam,Gorsek,Hanna,Hicks, Huffman,Jenson,Johnson,Kennemer,Krieger,Matthews,McLane,Olson,Parrish,Richardson, Smith,Sprenger,Thatcher,Thompson,Whisnant,Whitsett;Excused,2--Berger,Weidner. 2/28/14 H-Rules suspended.Carried over to March 3,2014 Calendar. 2/27/14 H-Second reading. 2/26/14 H-Recommendation:Do pass with amendments and be printed B-Engrossed. 2/24/14 H-Public Hearing and Work Session held. 2/19/14 H-First reading.Referred to Speaker's desk. 2/19/14 H-Referred to Judiciary. 2/18/14 S-Third reading. Carried by Hansell,Monroe. Passed.Ayes,30. 2/17/14 S-Second reading. 2/14/14 S-Recommendation:Do pass with amendments. (Printed A-Eng.) 2/13/14 S-Work Session held. 2/11/14 5-Public Hearing held. 2/3/14 S-Introduction and first reading.Referred to President's desk. 2/3/14 S-Referred to Judiciary. ' SB 1543 Position Priority Date Input Bill Info Neutral 3 1/27/14 Summary: Makes reduction of hours worked by full-time employee for sole purpose of preventing employee's eligibility for coverage under Patient Protection and Affordable Care Act unlawful employment practice. Status: 3/7/14 S-In committee upon adjournment. 2/11/14 S-Public Hearing held. 2/3/14 S-Introduction and first reading.Referred to President's desk. 2/3/14 S-Referred to Health Care and Human Services. SB 1547 Position Priority Date Input Bill Info Neutral 3 1/27/14 3/24/2014 2:27:51 PM 13 Summary: Authorizes county governing bodies and small business employers to enter into agreements for reimbursement of portion of wages paid to youth employees. Status: 3/7/14 S-In committee upon adjournment. 2/11/14 S-Public Hearing held. 2/3/14 S-Introduction and first reading.Referred to President's desk. 2/3/14 S-Referred to Business and Transportation,then Ways and Means. SB 1575 Position Priority Date Input Bill Info Neutral 3 1/28/14 Summary: Allows establishment in forest zone or mixed farm and forest zone of facility for utilizing raw logs. Status: 3/7/1.4 S-In committee upon adjournment. 2/13/14 S-Public Hearing held. 2/3/14 S-Referred to Rural Communities and Economic Development. 2/3/14 S-Introduction and first reading.Referred to President's desk. 14 STATE OF OREGON LEGISLATIVE REVENUE OFFICE STATE CAPITOL BUILDING 900 COURT ST.NE RM 143 SALEM,OREGON 97301 PHONE(503)986-1266 FAX(503)986-1770 Paul Warner,Legislative Revenue Officer LRO FORECAST SUMMARY March 2014 NEW FACTS SINCE THE LAST FORECAST 4th Qtr 2013 4th Qtr 2013 Forecast Actuals Difference Employment 1,681,255 1,685,595 4,340 Personal Income($billion) 158.8 159.6 0.8 Personal Income Tax($million) Withholding 1,417.6 1,435.6 18.0 Other Payments less Refunds 137.0 129.4 -7.6 Total 1,554.6 1,565.0 10.4 Corporate Income Tax 97.2 87.1 -10.1 N FACT F • ourth Qualrter personal me ome tax collections;were up$1 v�I..jmilllon(D 7%)frar the December 7013 forecas# , • Fourth Quarter or or to li ICome tax collections w re dov $1U 1 million{ 10.4 off from the Decemh r X013 for cast • Oregon on I incom a was up$0 8 bi lion(0 5 a from the De ember 013 . forecast':. Y .; P J •Qre$ra�t emplo ment wa u 4340 des;{Q 3°Jo ;from the#�ecemher 20.13 fiorecast LRO:2/11/2014 Forecast 0314.xlsx 15 Forecast Summary Page 2 of 7 X013 15 CHANGE FROM CLOSE OF SESSION ($Million) March 2014 General Fund Resources Close of Session Forecast Difference Beginning Balance 543.5 462.0 -81.5 Transfer to Rainy Day Fund -136.9 -136.9 0.0 Personal 13,558.2 13,771.6 213.4 Corporate 1,056.6 1,005.9 -50.7 Kicker -20.3 0.0 20.3 Other 1,027.9 1,004.4 -23.5 Gross GF Revenue 15,622.3 15,781.9 159.6 Shared Services Fund -57.5 -57.5 0.0 Rainy Day Fund -43.0 -9.8 33.2 Net GF Revenue 15,521.8 15,714.6 192.8 Lottery Resources** 1,059.5 1,053.1 -6.4 Anticipated Administrative Actions*** -18.2 -12.7 5.6 Net GF and Lottery Resources 16,969.6 17,080.1 110.4 "All lottery resources including dedicated funds- "'Administrative Actions equal expenses associated with cash flow management,exclusive of internal borrowing. • NGE SINCE CLOSE OF SESSION +Persona!income tax revenue is up$21;3 4 m ill on(16 �from;the 201.;3 COS estimate •Corporate tax revenue is down 50 7 i illi in( l 8%)frnm the:2 113 C( S estimat • Generat Fund revenue is'0$192 8 m illion(12%)from the 201 COS estima e + GF and ottery resources ire up$11 ,4 million(0 7% from tt a 2093;COS estimat EFFECT ON 2% KICKER ($Million) Revenue Source Close of Session 2% Kicker March 2014 Amount+/- Threshold Forecast Kicker Threshold Personal&Other 14,586.0 14,877.7 14,776.0 -101.8 Corporation* 976.5 996.0 979.3 -16.7 As per the AG,the corporate kicker calculation excludes the minimum Max paid by S-corporations because it is a flat tax. KICKER REF NDS IMPLIED BY FOR CAST = RSONAL No personal kicker is projected for 201 S`' a notporate v enue is prc ected to bededacnf d to education CQRPORATE° 1V lending to 20151 16 Forecast Summary Page 3 of 7 2013.15 CHANGE FROM PRIOR FORECAST ($Million) Combined Revenue Dumber 2013 March 2014 Difference Forecast Forecast Beginning Balance 462.0 462.0 0.0 Transfer to Rainy Day Fund -136.9 -136.9 0.0 Personal 13,716.1 13,771.6 55.5 Corporate 1,030.5 1,005.9 -24.6 Other 1,016.3 1,004.4 -11.9 Gross GF Revenue 15,762.8 15,781.9 19.0 Shared Services Fund -57.5 -57.5 0.0 Rainy Day Fund -10.0 -9.8 0,2 Net GF Revenue 15,695.3 15,714.6 19.3 Anticipated Administrative Actions'-' -13.6 -12.7 0.9 Net General Fund Resources 16,006.9 16,027.0 20.1 Lottery Resources'` 1,058.4 1,053.1 -5.3 Net Combined Resources 17,065.3 17,080.1 14.8 *All lottery resources including dedicated funds. `•Administrative Actions equal expenses associated with cash flow management,exclusive of internal borrowing. • REVENU CHANGES • Projected 2013 15 Net eneral Fund resouf c .s are up$2a 1 m illion 0 % from the ectrmber 2013forecast • Projected 2013.15 Lt tte'ry resources are down 3 mil lion(0 t5%)faun the December 2013 forec st • Projected combined net:.General Fund and Lottery resources are up$;14 8 million f 1°l)from he December X013>c}recast• • 17 Forecast Summary Page 4 of 7 201 3-1 a EFFECT ON ENDING BALANCE Current vs. Close of Session ($Million) General Fund Close of Session March 2014 Difference Forecast Beginning Balance 543.5 462.0 -81.5 Transfer to Rainy Day Fund -136.9 -136.9 0.0 Revenue 15,521.8 15,714.6 192.8 Administrative Actions -18.2 -12.7 5.6 Total Resources 15,910.1 16,027.0 116.9 Expenditures 15,608.7 15,789.7 181.0 Ending Balance* 301.5 237-3 -64.1 Rainy Day Fund Transfer 156-1 157.9 1.8 Remaining Balance 145.4 79.5 -65.9 'Includes the Supplemental Ending Balance. ENDING BALANCE •The projected er dln balance is down$64 9 rr illion (21 3%)from the;2013 Close-of g Session estimate •The pa ojected :ndtng balance is up$20.1 mrlli n(9 3%)front the ecember 201 #precast iJ 7 n The Rainy Day Fund is protected to receiive$1;57 9 million following the 2013'15 ienniun Current vs. Prior Forecast $Million General Fund December 2013 March 2014 Difference Forecast Forecast Beginning Balance 462.0 462.0 0.0 Transfer to Rainy Day Fund -136.9 -136.9 0.0 Revenue 15,695.3 15,714.6 19.3 Administrative Actions -13.6 -12.7 0.9 Total Resources 16,006.9 16,027.0 20.1 Expenditures 15,789.7 15,789.7 0.0 Ending Balance* 217.2 237.3 20.1 Rainy Day Fund Transfer 157.9 157.9 0.0 Remainin+ Balance 59.3 79.5 20.1 `Includes the Supplemental Ending Balance. 18 Forecast Summary Page 5 of 7 Reserve Fund Position Education Rainy Day General Fund Reserves Stability Fund * Fund Available ($ Millions) Beginning $7.4 $61.9 $69.3 Balance Deposits $169.5 $146.7 $316.2 Interest $1.0 $1.7 $2.8 Withdrawals -$1.0 $0.0 -$1.0 Projected Ending $176.9 $210.2 $237.3 $624.5 Balance "Excludes funds in the Oregon Growth and the Oregon Resource and Technology Development subaccounts. 2015 17 CHANGE FROM PRIOR FORECAST ($Million) Combined Revenue December 2013 March 2014 Difference Forecast Forecast Personal 15,389.6 15,464.4 74.8 Corporate 1,069.0 1,049.3 -19.7 Other 1,001.1 983.1 -18.0 Gross GF Revenue 17,459.7 17,496.8 37.1 Shared Services Fund -75.6 -75.6 0.0 Rainy Day Fund -10.0 -9.5 0.5 Net GF Revenue 17,374.1 17,411.7 37.5 Lottery Resources* 1,149.2 1,140.3 -8.9 Net Combined Revenue 181523.3 18,552.0 28.6 19 Forecast Summary Page 6 of 7 01t,,,1 p CHANGE FROM PRIOR FORECAST ($Million) Combined Revenue December 2013 March 2014 Difference Forecast Forecast Personal 16,929.0 16,931.4 2.4 Corporate 1,043.3 1,026.9 -16.3 Other 1,063.1 1,045.7 -17.4 Gross GE Revenue 19,035.4 19,004.0 -31.3 Shared Services Fund -40.5 -40.5 0.0 Rainy Day Fund -54.0 -38.6 15.4 Net GF Revenue 18,940.9 18,924.9 -16.0 Lottery Resources* 1,312.4 1,301.2 -11.2 Net Combined Revenue 20,253.3 20,226.2 -27.1 *All lottery resources Including dedicated funds CHANGE FROM PRIOR FORECAST ($Million) Combined Revenue December 2013 March 2014 Difference Forecast Forecast Personal 18,666.0 18,681.3 15.3 Corporate 1,073.1 1,066.8 -6.3 Other 1,142.7 1,123.4 -19.3 Gross GF Revenue 20,881.9 20,871.5 -10.3 Shared Services Fund 0.0 0.0 0.0 Rainy Day Fund -57.0 -41.1 15.9 Net GF Revenue 20,824.9 20,830.4 5.5 Lottery Resources* 1,431.4 1,419.0 -12.4 Net Combined Revenue 22,256.2 22,249.4 -6.8 *All lottery resources including dedicated funds 20 Forecast Summary Page 7 of 7 2021-23 I CHANGE FROM PRIOR FORECAST ($Million) December 2013 March 2014 Combined Revenue Difference Forecast Forecast Personal 20,512.6 20,561.1 48.5 Corporate 1,167.2 1,154.8 -12.4 Other 1,220.5 1,189.2 -31.3 Gross GF Revenue 22,900.3 22,905.1 4.8 Shared Services Fund 0.0 0.0 0.0 Rainy Day Fund -61.0 -43.1 17.9 Net GF Revenue 22,839.3 22,862.0 22.7 Lottery Resources* 1,565.9 1,552.5 -13.4 Net Combined Revenue 24,405.2 24,414.5 9.3 •All lottery resources including dedicated funds I Bfetinial'..Nof R ►renue Grr►wth 1;993 If_32 ,. Personal Corporate Other Total 1993-95 to 1995-97 17.1% 18.8% 28.4% 18.3% 1995-97 to 1997-99 13.0% -13.9% -17.6% 7.7% 1997-99 to 1999-01 22.6% 28.2% 2.8% 21.5% 1999-01 to 2001-03 -11-9% -44.4% 97.9% -7.5% 2001-03 to 2003-05 16.8% 52.5% -35.4% 11.4% 2003-05 to 2005-07 22.8% 31.7% 6.4% 22.1% 2005-07 to 2007-09 -8.6% -18.9% 10.2% -8.0% 2007-09 to 2009-11 3.7% 20.9% 29.8% 6.8% 2009-11 to 2011-13 15.7% 6.8% -4-1% 13.1% 2011-13 to 2013-15 13.3% 12.7% -14.6% 10.9% 2013.15 to 2015-17 12.2% 4.4% -2.1% 10.8% 2015-17 to 2017-19 9.8% -5.0% 6.4% 8.7% 2017-19 to 2019-21 10.6% 3.8% 7.4% 10.1% 2019-21 to 2021-23 10.1% 8.4% 5.9% 9.8% 21 REVENUE FORECAST Revenue Forecast Summary Despite the improved economic outlook, expectations for General Fund revenue growth have remained largely unchanged since the December 2013 quarterly forecast. The additional job growth reflected in the March 2014 forecast will bring with it substantial state tax collections. However, these additional revenues are expected to be largely offset by the impact of recent tax collections,which have been coming in well below expectations. During the second half of 2013 and early 2014,tax collections across a wide range of revenue instruments have performed poorly. Notably, estimated personal income tax payments made during December and January(the largest payment of the tax year)fell in most states despite strong underlying income gains on the year. Further, corporate tax collections are falling sharply, with Oregon having paid out more in refunds that it took in by way of corporate tax payments during two of the past three months. Among other revenue instruments,estate taxes and video lottery sales have been weaker recently than they were during the worst of the recession. Also,cigarette taxes and state court fees have fallen sharply. Although economic conditions have improved,near-term revenue growth is expected to remain somewhat modest. Underlying job gains, while accelerating, will not match the pace seen during previous periods of economic expansion.Also,personal income taxes based on investment income are expected to post only modest gains during the upcoming April tax filing season. Despite rising stock market and housing prices,the outlook for taxable investment income remains subdued in the near term_ Many Oregonians cashed out capital gains in 2012 in anticipation of federal tax rate increases, leaving fewer gains to be realized for tax purposes going forward.However,if equity markets are able to hold on to much of their recent appreciation,personal income tax payments will grow rapidly once again in April 2015. Although the revenue outlook remains on track, the 2013-15 biennium is still young, and therefore significant uncertainty remains. Two income tax filing seasons remain between now and the end of the biennium.As such, many risks to the outlook remain.On the upside,if asset markets continue to boom or If Oregon's traditionally strong migration trends and labor force growth reappear,a short-term spike in revenues remains possible during the 2013- 15 budget period. At this point, it would take only about$100 million in unanticipated revenue to trigger the kicker law. The primary downside risk facing the near-term revenue forecast is the uncertain future of the nationwide economic expansion.Should federal policy woes or economic weakness among our trading partners derail the U.S.economy, the expected growth in Oregon's tax collections will not come to pass. Future asset prices are also at risk as the Federal Reserve unwinds its accommodative monetary policies. Revenue growth in Oregon and other states will face considerable downward pressure over the 10-year extended forecast horizon. As the baby boom population cohort works less and spends less,traditional state tax instruments such as personal income taxes and general sales taxes will become less effective,and revenue growth will fail to match the pace seen in the past. 2013-15 General Fund Revenues Despite unexpectedly weak estimated tax payments this winter, personal income tax collections have closely matched expectations thus far during the 2013-15 biennium. Excluding the impact of tax law changes,the outlook for personal income tax collections is less than one percent higher than the Close of Session estimate. These additional expected personal income tax revenues have been fully offset by a weaker outlook for other revenue instruments. Aside from tax law changes,the outlook for net General Fund and Lottery resources is currently less than$20 million above the Close of Session forecast. Although underlying economic growth will be stronger in 2013-15,General Fund revenue growth is not expected to match the pace seen during the last biennium.Personal income taxes flowing from labor income have accelerated. 22 However,this improvement is expected to be offset by slower growth in taxable investment income such as capital gains. The forecast for gross General Fund revenues for 2013-15 is now$15,782 million.This represents an increase of $19 million(+0.1%)from the December 2013 forecast.The March 2014 forecast for the 2013-15 biennium is$139 million(0.9%)above the Close of Session forecast. Table R.1 2013-15 General Fund Forecast Summary 2013 COS December 2013 March 2014 Change from Change from (Millions) Forecast Forecast Forecast Prior Forecast COS Forecast Structural Revenues Personal Income Tax $13,558.2 $13,716.1 $13,771.6 $55.5 $213.4 Corporate Income Tax $1,056.6 $1,030.5 $1,005.9 -$24.6 -$50.7 All Other Revenues $1,027.9 $1,016.3 $1,004A -$11.9 -$23.5 Gross OF Revenues $15,642.6 $15,762.8 $15,781.9 $19.0 $139.3 Offsets and Transfers -$120.8 -$67.5 -$67.3 $0.2 $53,5 Administrative Actions' -$18.2 -$13.6 -$12.7 $0.9 $5.6 Legislative Actions -$136.9 -$136.9 -$136.9 $0.0 $0.0 Net Available Resources $15,910.1 $16,006.9 $16,027.0 $20.1 $116.9 Confidence Intervals 67%Confidence +1- 6.6% $1,034.9 $14.75B to$16.8213 95%Confidence +/- 13.1% $2,069.9 $13.71B to$17-858 1 Reflects cost of cashlow management actions,exclusive of internal borrowing- Personal income Tax Personal income tax collections were$1,565 million for the second quarter of fiscal year 2014,$10.4 million(0.7%) above the latest forecast. Compared to the year-ago level, total personal income tax collections grew by 4.0% relative to a forecast that called for 3.3% growth.Table B.8 in Appendix B presents a comparison of actual and projected personal income tax revenues for the October-December quarter. Estimated personal income tax collections were extremely weak nationwide during January.This could well be a signal that payments filed with April tax returns will show little growth as well_ Going forward into the 2013-15 biennium,personal income tax collections are expected to grow at somewhat below average rates.Although growth in taxable wages is accelerating,growth in overall collections will be held back by slower growth in taxable investment income during the 2013 tax year. Excluding corporate excise taxes, the General Fund forecast is now $190 million above the Close of Session forecast due to the impact of law changes. As such,we are now about$100 million away from the personal income tax kicker threshold. Corporate Excise Tax Corporate excise tax collections equaled$87 million for the second quarter of fiscal year 2014,$10.1 million below the December forecast. Compared to one year ago, net corporate receipts were down 23.5% with the forecast calling for a 14.6%decline. 23 Despite being around the same size as two years ago, corporate tax collections remain large from an historical perspective.Near-record corporate profits have yet to go away.Given that corporate tax collections and underlying profits are subject to boom-bust cycles,there is a considerable amount of downside risk to the outlook. Nevertheless,positive growth is expected during the 2013-15 biennium,due to tax reform and continued economic growth.Oregon's economy is expected to continue to grow,and corporate tax collections are typically very sensitive to the business cycle. However,these growth rates,while large,will remain only a fraction of what has been seen during recent profit booms. Corporate income tax collections for 2013-15 are $24.6 million lower than what was called for in the December forecast. Other Sources of Revenue All other General Fund revenues are expected to total$1,004 million for the 2013-15 biennium,a decrease of$11.9 million relative to the December forecast.The decline was driven by a weaker outlook for state court fees,estate taxes and cigarette taxes. Extended General Fund Revenue Outlook Table R.2 exhibits the long-run forecast for General Fund revenues through the 2021-23 biennium. Users should note that the potential for error in the forecast increases substantially the further ahead we look. General Fund revenues are expected to total$17,497 million in 2015-17 biennium,an increase of 10.9%percent from the prior period,and$37 million(+0.2%)above the December forecast.In 2017-19 biennium,revenue growth is expected to slow to 8.6%,followed by rates of just under 10%in subsequent biennia.The slowdown in long-run revenue growth is largely due to the impact of demographic changes and changes in savings behavior.Table B.2 in Appendix presents a more detailed look at the long-term General Fund revenue forecast. Table R.2 General FundRewuue Forecast Summary(Mlons of Dollars,Current Law) Forecast Forecast Forecast Forecast Forecast Forecast 2011-13 % 2013-15 % 2015-17 % 2017-19 % 2019-21 % 2021-23 % Revenue Source Biennium Chg Biennium Chg Biennium Cbg Biennium Clig Biennium Chg Biennium Chg Personal lncorm Taxes 12,118.2 15.8% 13,771.6 13.6% 15,464.4 12.3% 16,931.4 9.5% 18,681.3 10.3% 20,561.1 10.1% Corporate loco=Taxes 883.9 6.8% I,005.9 13.8% 1,0493 43% 1,026.9 -2.1% 1,066.8 3.9% 1,154.8 8.2% All Others 1,164.9 -5.0°/a 1,004.4 -13.8% 983.1 -2.1% 1,045.7 6.4% 1,I23.4 7.4% 1,189.2 5.9% Criss General.Fund 14,167.0 13.1% 15,781.9 11.4% 17,496.8 10.9% 19,004.0 8.6% 20,871.5 9.8% 22,905.1 9.7% Offsets and Transfers (12.0) (67.3) (85.1) (79.1) (47.!) (43.1) Net Revenue 14,155.0 13.0% 15,714.6 11.0% 17,411.7 10.8% 18,924.9 8.7% 20,830.4 10.1% 22,862.0 9.8% Other bees Include General Fund portions of lir Eastern Oregon Severance Tax,Wesiem Oregon Severance Tax and Amusement Device Tax. Commercial Fish licenses&Fees and Peri-motel Receipts are included in Other Revenues Tax Law Assumptions The revenue forecast is based on existing law,including measures and actions signed into law during the 2013 Oregon Legislative Session and October Special Legislative Session.PEA makes routine adjustments to the forecast to account for legislative and other actions not factored into the personal and corporate income tax models.These adjustments can include expected kicker refunds,when applicable,as well as any tax law 24 changes not yet present in the historical data.A summary of actions taken during the 2013 Legislative Session can be found in Appendix B Table 8.3.For a detailed treatment of the components of the 2013 Legislatively Enacted Budget,see:LEO 2013-15 Budget Summary. For summary of the revenue impacts for the October 2013 special session see:LROH$_3601 Revenue Impact Statement. The treatment of the corporate taxes represents an important current area of policy uncertainty. Policymakers and the court system are currently determining if firms can be asked to pay excise taxes based on a single sales apportionment factor. Depending on the future treatment of corporate tax liability,the outlook for collections could be lowered on the order of$100 million per biennium. Other recent tax law changes involve the treatment of court fees and criminal fines.These changes have significantly increased the amount of judicial related funds flowing into the General Fund,but the exact magnitude of the impact remains unclear. Although based on current law,many of the tax policies that impact the revenue forecast are not set in stone.In particular,sunset dates for many large tax credits have been scheduled.As credits are allowed to disappear, considerable support is lent to the revenue outlook in the outer years of the forecast.To the extent that tax credits are extended and not allowed to expire when their sunset dates arrive,the outlook for revenue growth will be reduced.The current forecast relies on estimates taken from the Oregon Department of Revenue's 2013-15 Tax Expenditure Report. Alternative Scenarios The latest revenue forecast for the current biennium represents the most probable outcome given available information.OFA feels that it is important that anyone using this forecast for decision-making purposes recognize the potential for actual revenues to depart significantly from this projection. Currently,the overwhelming downside risk facing the revenue outlook is the threat that the U.S-economic recovery will lose steam in the near term.Such a scenario,however it played out,would result in drastic revenue losses. Two recessionary scenarios are displayed in table R.2b. In a severe recession,biennial revenues could come in as much as$2 billion lower than predicted.1 1 The methodology for computing alternative scenarios has recently been changed to reflect recent work done by the Legislative Revenue Office. Assumptions:Recessions begin in 2015 and return to baseline income by 2022. The moderate recession scenario assumes personal income growth will be reduced by one-half relative to the baseline in 2015 and 2016. The severe recession scenario assumes personal income will decline in 2015 by as much as it did in 2009.The percentage deviation in personal income taxes is 1.4 times the deviation in personal income.The percentage deviation in corporate income taxes is 2.0 times the deviation in personal income. 25 TABLE R2b March 2014 Alternative Cyclical Revenue Forecast($millions) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Baseline Case Fiscal Year Fiscal Year Fiscal Year Moil Year Fiscal'Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Personal Income Level r 169.06 r 178.21 !'r 188.59 :' 199.09 r 209.09 f' 219.27 ;° 229.61 r 240,16 a 251.00 %change 5.1% 5.4% 5.8% 5.6% 5.0% 4.9% 4.7% 4.6% 4.5% Taxes Personallncome 7,122 7,561 7,903 8.260 8,671 9,107 9,574 10,060 10,501 Corporate Excise&Income 543 532 517 519 508 520 547 579 576 Other General Fwd 499 487 496 515 531 553 570 588 601 Total General Fund 8,164 8,580 8,916 9,294 9,710 10,180 10,692 11,227 11,679 %change 7.2% 5.1% 3.9% 4.2% 4.5% 4.8% 3.0% 5.0% 4.0% 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 21122-23 Moderate Recession Fiscal'Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Personal Income level 169.1 173.9 179.5 191.6 203.5 215.2 227.0 238.1 249.2 %change 5.1% 2.8% 3.3% 6.7% 6.2% 5.7% 5.5% 4.9% 4.7% Taxes Personal Income 7,122 7,303 7,372 7,824 8,348 8,870 9,423 9,927 10,379 Deviulion from bowline -258 -531 -436 -323 37 -151 433 -l22 Corporate Excise&.Income 543 506 467 480 481 500 535 569 568 evial.ior from baseline -26 -50 -39 -27 -19 -12 10 -8 Other General Fund 499 487 496 515 531 553 570 588 601 Total General Fund 1,164 8,296 8,335 8,818 9,360 9,923 10,528 11,084 11,548 %change 7.2% 1.6% 0.5% 5.8% 6.1% 6.0% 6.1% 5.3% 4.286 Deviation/mm baseline -284 -381 -475 -350 -2.37 -164 -143 -131 201445 2015-16 2111647 2017-18 201849 2019-20 2020-21 2021-2022 21120-21 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Severe Recession Personal Income Level 169.1 162.4 170.2 184.2 198.1 211.8 225.1 236.8 247.9 %change 5.1% -3.9% 4.8% 8.2% 7.5% 6.9% 6.6% 4.9% 4.7% Taxes Personal Income 7,122 6,622 6,826 7,397 8,034 8,675 9,353 9,853 10,303 Ile■iarinn from baseline -939 -1,071 -863 -637 -432 -221 -206 -199 Corporate Excise&Income 543 438 416 441 455 485 529 563 562 17rviafiJn from bosiv.e -94 -191 -77 -53 -35 -18 -16 -14 Other General Fund 499 487 496 515 531 553 570 588 601 Total General Fund 8,164 7,547 7,739 8,353 9.020 9,713 10,452 11,004 11,465 %clung, 7,2% -7.6% 2.3% 7.9% 8.0% 7.7% 7.6% 5.3% 4.2% Deriarion,jronr baseline -1,033 -1,178 -941 -690 -467 -239 -222 -113 Lottery Earnings Forecast Table R.3 presents a summary of lottery earnings and distribution for the 2013-15 BN. Revenues and available resources from Lottery games and programs are projected to total$1,054.6 million,a decrease of$5.3 million from the December outlook and$6.4 million below the Close of Session forecast.The decrease is the result of lower video lottery sales in late 2013 and a slightly lower growth projections as well.Traditional lottery remains effectively unchanged relative to the previous forecast. Overall,video lottery dominates total lottery earnings,accounting for approximately 85 percent of all lottery transfers in the past three years.Although growth has generally been slow in recent years, it has stabilized after declining substantially in the wake of the Great Recession and enactment of the smoking ban- In total, declines in video lottery sales approached 23 percent from pre-recession highs to the depths of the recession;the same magnitude of losses seen in slot machine revenues in Clark County,Nevada,home of Las Vegas.So far,Oregon video lottery sales have rebounded at approximately twice the rates seen at Clark County slot machines. 26 Moving into 2014 and beyond as the economic expansion continues and strengthens,so too do video lottery sales. Over the forecast horizon video lottery sales are projected to increase at a rate of growth that is just under the gains seen in overall personal income-Even with the video lottery sales increases in recent years,these gains have not been quite as strong as the underlying economic conditions. Consumers Table R.3 remain cautious with their disposable 201345 Lottery Fund Forecast Summary Changes torn: income and while their overall Close of 2013 Dec2013 Mar2014 'Dec 2013 entertainment spending is increasing, session Forecast Farmed Forecast COS 2013 the share of their budgets spent on Transfers of Lottery Earnings Tradi4onal Games $122.7 $124.5 $124.6 $0.1 51.9 these activities has not increased.This yids Lorery $1,002.9 $1,000.3 $994.8 -$5.5 -$8.1 has not been the case in past years with Adrrinistatve Astons $0.0 -$0.3 -50.1 $0.2 -$91 gains in video lottery having outstripped Video Lorry Terminal Replacement -$71.0 -$71.0 -$71.2 -$0.2 -$0.2 spending on other items throughout the Total Transfers $1054.6 $1,053.5 $1,048.2 $5.3 $6.4 Lottery's history. Eventually as video Economic Development Fund games lose some of their novelty,sales Beginning Balance $15 $3.5 $3.5 $0.0 $0.0 growth will slow to more sustainable TrarLStrs from i(Amy $1,054.5 $1,053.5 $1,0482 $5.3 $8.4 levels. For a more thorough look at Ottereaminos $1.4 $1.4 $1.4 $0.n $0.0 g lost AvaLbie Resources $1,059.5 $1,058.4 $1,053.1 -55.3 -$6.4 Lottery revenues and consumer spending on gaming over the business ° wed pisrl5urono1 $404.1 $405.0 $402.0 -$3.0 $z1 Otter Legislefvery Adopkd Arrocatons $540.4 $840.4 $540.4 $0.0 $0.0 cycle, please see our office's research rural DistRrutons $1,044.5 $1,045.4 31,042.4 -$3.0 -$2.1 report available on our website2. Ending Balance $15.0 $13.0 $10.7 -$2.3 -$4.3 Another major item affecting Lottery Fwhobs: transfers for state revenue purposes is S trades IMeresteamlngs and reversions. the capital replacement plan that 2.Includes rkucafion Stably ruNd(18F),Packs&Nan Rescuces(15%},Sports Lnllry(116),C etig Arkllalor l%),Count Lottery will implement over the FY Gaming 2014-2017 time frame. During this as Share of Income biennium and the next, Lottery will 0.8% r ;,,,.ti -. hgtEM replace the 12,000 existing video lottery } 1i P g rY ��f� r K� .. terminals throughout the state,some of 0.7°� �' which will be nine years old when they '_ are replaced. Due to advancements in 0.b% a�,�� """ nor v d technology, like a lot of industries, the , r't current machines are becoming 4.5°/v :, i 6b obsolete in the marketplace. This 'x'11 i 04 replacement plan is expected to cost �� a � 8`w ..,$ approximately $215 of which Lottery million over four self-fund$85 c� i . 0.34 _.._.... Asa Y ry ; tea= � ? million. The remaining $130 million will d 0,21 r: 0 _... ._ _._._ . be deducted from Lottery earnings prior Sir � _ to being transferred for general revenue 0.1% : l '1 purposes. The biennial impact of the 6L�i replacement plan is $71.2 million in 0.0% . . ° -- � r 2013-15, or less than 7 percent of 200001 20030,1 200601 2009Q1 201201 available revenue to be transferred,and $59.2 million in 2015-17, or about 5 -,--""U.5.Casino Gambling Oregon Video Lottery percent. The full extended outlook for lottery earnings can be found in Table B.9 in Appendix B. 2 htto://oregoneconomicanalvsis.wardpress.com/2013/03/20/gam)ng-and-the•.ereat-recession[, 27 Overview of Budgetary Reserves The state currently administers two general reserve accounts, the Oregon Rainy Day Fund (ORDF) and the Education Stability Fund(ESF).This section updates balances and recalculates the outlook for these funds based on the December revenue forecast. Established by the 2007 Legislature,the ORDF is funded from ending balances each biennium,up to one percent of appropriations.The Legislature can deposit additional funds,as it did in first populating the ORDF with surplus corporate income tax revenues from the 2005-07 biennium. The ORDF also retains interest earnings.Withdrawals from the ORDF require one of three triggers,including a decline in employment,a projected budgetary shortfall,or declaration of a state of emergency, plus a three-fifths vote.Withdrawals are capped at two-thirds of the balance as of the beginning of the biennium in question.Fund balances are capped at 7.5 percent of General Fund revenues in the prior biennium. The ESF gained its current reserve structure and mechanics via constitutional amendment in 2002. The ESF receives 18 percent of lottery earnings3,deposited on a quarterly basis,The ESF does not retain interest earnings. The ESF has similar triggers as the ORDF(in fact,the ORDF was modeled on the ESF), but does not have the two-thirds cap on withdrawals.The ESF balance is capped at five percent of General Fund revenues collected in the prior biennium. Budgetary Reserve Outlook Table R.4 presents projected balances for the ORDF and ESF.The ORDF ended the 2011-13 biennium with a balance of$61.8 million,while the ESF ended the biennium with a balance of$7.6 million.Combined,these reserve funds total approximately one-half of one percent of the 2011-13 General Fund revenues. As the accounting books for the 2011-13 Table R.4 biennium close out, per statute given the Oregon's Budgetary Reserves positive ending balance to the General Fund, one percent of appropriation will be deposited 2011-13 2013-15 2015-17 into the ORDF in the coming months. This Rainy Biennium Biennium Biennium g Ray Day Fund deposit will be $136.9 million. Additionally, at Beginning Balance $10.4 $61.9 $2102 the end of the 2013-15 biennium,the corporate Ne1Depoilitla $50.8 $146.7 $1674 esl tax revenue due to the increases in the tax rate 1ner $0.6 $1.7 $16,7 Ending Balance( $61.8 $210.2. $386.3 from Measure 67,however also adjusted during the most recent special session, will be Education staboity Fund deposited into the ORDF.The current estimate BegainingBalance $5.1 $7.4 $176.9 Net Deposit $184.8 $169.5 $184.3 for the biennium is$9.8 million. rnlereaf $os $1.0 $161 In 2013-15,the ESF is expected to see deposits Ihen wall $182.9 $1.0 $15.1 Ending Balance $7.6 $176.9 $381.3 of$169.5 million based on Lottery sales.There are no scheduled withdrawals out of the ESF TotalResuvea $69.4 $3872 $757.6 and the ending balance is projected to be Percent of General Fund Revenues 0.5% 2.5% 4-4% $176.9 million at the end of the biennium. Footed*: B.10 in Appendix B provides more details for 1. Under currant law,only2/3rds orb®6egning balance is avallabbfce wildrawaL WlWrnwelsubJact to economic and inanciel tbggers. Oregon's budgetary reserves. 2 Ethical*stabile Fund Interest 5 diet5uled b be CF n Felix/ebb Fund(75%)and be stet Scholarship Commission(25% 3. Includes tarsier of ending General Fund balances,up io 1%of budgerd appeoprialorn.an wen an privet donders. 9 Five percent of these transfers are deposited to the Oregon Growth sub-account. Due to the illiquid nature of this sub- account,only funds in the main account are included in the figures presented here. 28 House Bill 5201 is the budget reconciliation bill that adjusts the state budget for the 201315 biennium. Along with 2014 session budget decisions,the bill includes technical adjustments, and actions approved by the Interim Joint Committee on Ways and Means. The budget maintains a $30 million general purpose Emergency Fund,and establishes a$24 million special purpose appropriation for potential costs in the Oregon Health Authority or the Department of Human Services. After all adjustments,the General Fund ending balance is projected to be at$120 million. Two statewide adjustments are included in the bill. Partial restorations of the 2% supplemental ending balance holdback are made,totaling$68 million General Fund. In general, 25%of the holdback is being restored to ea ch affected agency, although there are a number of exceptions. The Oregon Health Authority and Department of Human Services were able to supplement the General Fund restoration with internal resources in order to maintain nearly all programs. The Department of Corrections also had their holdback nearly fully covered. The special purpose appropriation of$86.5 million was fully allocated to state agencies to cover employee compensation costs; it was set aside for this purpose. This is expected to cover about 90%of estimated General Fund costs. Other actions include,but are not limited to: • Appropriates$40 million General Fund to cover the state's share of the costs for the 2013 fire season. 29 • Distributes just over half of the$26 million special purpose appropriation for seniors that was set aside during the September 2013 Special Session. Funded projects include public guardian legislation, caregiver training,senior and disabled transit,and health promotion. The unallocated funds will stay in the special purpose appropriation for future distribution by the Emergency Board. • Adds$10 million Other Funds limitation to address housing issues in the community mental health system. • Increases Other Funds limitation by$200 million related to bonds for the Cancer Research Institute at the Oregon Health and Science University, authorized in SB 5703. • Adds$2 million General Fund to the Oregon University System to help fund new compensation agreements, and establishes a$3.5 million special purpose appropriation to address future cost issues. • Other Funds and Federal Funds expenditure limitations are increased in various agencies for bond-funded projects,grants,and other budgetary adjustments. Eighteen budget notes are included in the budget report for this bill. 30 i Section Analysis HB 5201 Section Agency Amount Fund Description 1 OMD $385,000 OF Capital improvement 2 OMD $1,404,971 OF Community support 3(1) OED $3,645,151 OF Information technology-related expenditures 3(2) OED - $301,975 OF Caseload in Office of Administrative Hearings 3(3) OED $4,757,762 FF Grant awards and unemployment insurance programs 4 ODVA $6,230,000 OF Planning and operation of Lebanon Veterans'Home 5 Deleted by amendment 6 DLCD $0 NA Changes use of previously appropriated grants(CRGC) Repeals SPAs that are then appropriated to various agencies 7 E-Board {$118,404,623) GF (compensation for state and non-state;ODE;HCSD:OHA) 8 LAC $251,000 GE Rebalance 9 Assembly ($251,000) GI Rebalance 10 Assembly $275,000 GF Rebalance 11 Assembly ($275,000) GF Rebalance • 12 LEO ($13,000) GF Rebalance 13 LRO $13,000 GF Rebalance 14(1) DOJ $87,993 OF Rebalance of administrative efficiencies 14(2) DOl $586,354 OF Oregon Titan Fusion Center operations 14(3) DOJ ($87,993) OF Rebalance of administrative efficiencies 15 DCBS $4,625,091 FF Grant awards 2nd year operations and additional emergency housing and 16(1) HCSD $10,754,148 GF homelessness assistance(includes an additional$2 million for Emergency Housing and Homeless Assistance programs) 2nd year operations,additional emergency housing assistance,and 16(2) HCSD $63,975,811 OF limitation for$2.5 million in lottery bonds for housing preservation 16(3) HCSD $39,351,941 FF 2nd year operations 17 ODVA $300,000 FF Grant for transportation services for veterans 18 ODF $40,000,000 GF 2013 fire season suppression costs 19(1) 1)51 $135,684 OF Business process improvement costs 19(2) 051 $58,700 OF SSNERR land acquisition costs 19(3) DSL $1,000,000 IF SSNERR land acquisition costs 20 PDSC $48,631 GF State government service charges 21(1) OJD ($108,823) GF Judicial compensation 21(2) OJD ($144,201) GF Debt service 21(3) OJD $2,565,968 OF Grant funded programs 21(4) OJD $50,000 GF Transfer to Douglas County for court facilities security 22 OCB ($1,043,821) OF Elimination of Oregon Industries for the Blind program 23(1) OHA ($34,954,032) GF Rebalance 23(2) OHA ($7,221,143) GF Rebalance 24 OHA ($19,784) GI Rebalance 25 OHA ($19,784) GF Rebalance 26 OHA ($58,473) GF Rebalance 27(1) OHA $39,780,254 OF Rebalance 27(2) OHA ($1,743,819) OF Rebalance 27(3) OHA ($1,634,463) OF Rebalance 28 OHA ($269,115) OF Rebalance 29(1) OHA $1,221,914,401 FF Rebalance 31 Section Analysis HB 5201 Section Agency Amount Fund Description 29(2) OHA ($81,858,657) FF Rebalance 30(1) E-Board $24,000,000 GF OHA/DHS SPA for caseload costs or other budget challenges 30(2) E-Board $0 NA SPA reversion to General Purpose on Dec.1,2014 31(1) DAS $700,000 OF CIO special projects 31(2) DAS ($3,515,338) OF Rebalance of administrative efficiencies 31(3) DAS $13,766,187 OF ETS information technology service usage and equipment replacement 31(4) DAS $3,183,353 OF Rebalance of administrative efficiencies 31(5) DAS $1,220,548 OF Enterprise Asset Management state motor pool costs 31(6) DAS ($130,906) OF Rebalance of administrative efficiencies 31(7) DAS $462,891 OF Rebalance of administrative efficiencies 32(1) DEQ $9,269 GF Rebalance of administrative efficiencies 32(2) DEQ ($10,796) GF Rebalance of administrative efficiencies 32(3) DEQ $1,527 GF Rebalance of administrative efficiencies 33(1) DEQ ($159,570) OF Rebalance of administrative efficiencies 33(2) DEQ $151,890 OF Rebalance of administrative efficiencies 33(3) DEQ ($387,301) OF Rebalance of administrative efficiencies 33(4) DEQ $394,981 OF Rebalance of administrative efficiencies 34(1) DEQ ($3,306) FF Rebalance of administrative efficiencies 34(2) DEQ $1,479 FF Rebalance of administrative efficiencies 34(3) DEQ $1,827 FE Rebalance of administrative efficiencies 35(1) ODA $180,672 OF Rebalance of administrative efficiencies 35(2) ODA ($118,027) OF Rebalance of administrative efficiencies 35(3) ODA ($30,273) OF Rebalance of administrative efficiencies 35(4) ODA ($32,372) OF Rebalance of administrative efficiencies 36(1) E-Board $1,300,000 GE OJD SPA for operations investments or service increases 36(2) E-Board $700,000 GF OJD SPA for third party debt collections 36(3) E-Board $0 NA SPA reversion to General Purpose on Dec.],2014 37(1) E-Board $3,500,000 GF SPA for higher education governance change costs 37(2) E-Board $0 NA SPA reversion to General Purpose on Dec.1,2014 38 DAS $250,000 GF Technical fix on citation for Ocean Acidification Study(see section 47) 39(1) DA5 $345,000 GF County assessor pilot program 39(2) DAS $200,000 GF Primary Health Care Loan Foregiveness Program 39(3) DAS $100,000 GF Forest Grove community center planning 39(4) DAS $80,000 GF Western Juniper Utilization project 40(1) ODFW ($183,000) OF Rebalance 40(2) ODFW ($359,548) OF Rebalance 40(3) ODFW $542,548 OF Rebalance 41(1) ODFW ($613,000) FF Rebalance 41(2) ODFW ($1,104,325) FF Rebalance 41(3) ODFW $1,717,325 FF Rebalance 42 ODA $125,000 GF P5U task force on genetically engineered agricultural products 43 ODA $65,000 GF Industrial hemp regulatory program 44(1) DAS/OUS $2,000,000 GF Extraordinary compensation costs at PSU,SOU,EOU,WOU,and OIT 44(2) DA5/OU5 $500,000 GF One-time financial assistance to Southern Oregon University 44(3) DAS/OUS $500,000 GF One-time financial assistance to Eastern Oregon University 32 Section Analysis HB 5201 Section Agency Amount Fund Description 45 DAS/OUS ($4,500,000) GF Reduction in support funding for Chancellor's office(see sections 37(1); 44(2);and 44(3)) 46(1) OSP $0 LF Increased LF allocation by$183,060 for Measure 76 46(2) ODA $0 LF Increased LF allocation by$141,485 for Measure 76 I 47 DAS ($250,000) GF Repeals Ocean Acidification Study citation(see section 38) 48 DOJ $135,000 GF Oregon Crime Victims Law Center 49 ERB $116,236 GF Agency expenses 50 ERB $60,022 OF Agency expenses 51 ERB $87,998 OF Agency expenses from agency assessments 52 PERS $1,022,945 OF Costs of implementing SB 861(2013 Special Session) 53 PERS $718,750 OF Costs of moving administration of IAP to agency 54 DHS $0 NA Citation change to add"program design services" 55 DHS $0 NA Citation change to add"program design services" 56 OHS $0 NA Citation change to add"program design services" 57 DHS $15,466,261 GF Rebalance 57 DHS $20,309,055 OF Rebalance 57 OHS $83,507,131 FF Rebalance 58 BOLT $450,000 OF Support services for agreement with ODOT 59 BOLT $146,584 IF Education and outreach on fair housing 60 ODE $4,820,094 GF Agency operations 61 ODE $2,000,000 GF Career and Technical Education Revitalization grant program 62 ODE ($230,537) GF Transfer from grant-in-aid to operations 63 ODE $3,955,190 FE Race to the Top grant 64 ODE $1,547,971 FE Race to the Top grant 65 ODE $1,600,000 GE Youth and Innovation Grant Fund for youth development 66 ODE/SSF $3,535,581 OP Local option equalization grant payments 67 CCWD $471,087 GF Operations General Fund shortfall 68 CCWD ($121,087) GF Community College Support Fund towards operation shortfall 69 CCWD ($100,000) GF Debt service 70 CCWD $64,000 OF OF towards operation shortfall 71 CCWD $100,000 OF Debt service 72 OSAC $2,300,000 IF Oregon Opportunity Grants 73 HECC ($249,175) GF GF towards CCWD operations shortfall 74 OHLA ($3,760,280) OF O1-ILA part of OHA as of July 1,2014 75 SOS ($2,700,000) FF Delayed use of HAVA funds 76(1) OBDD $1,150,000 LF OMEP($750,000)and Port Orford redevelopment($400,000) 76(2) OB00 $9,349,999 OF Regional Solutions projects 76(3) OBDD $240,594 OF Infrastructure Finance Authority bond related costs 77(1) OHA $2,942,895 GE Rates for alcohol and drug adult residential facilities 77(2) OHA $100,000 GF Staffing for dental pilot projects 77(3) OHA $1,861,322 GE Costs associated with home care worker compensation changes 77(4) OHA $270,000 GE Breast and cervical cancer screening services 78(1) ERB $11,645 OF Rebalance 78(2) ERB ($11,645) OF Rebalance 79(1) DOR $6,337,263 GF Administration rebalance 79(2) DOR ($2,1.96,966) GF Property Tax Division savings 79(2) DOR ($3,029,369) GF Personal Tax and Compliance Division savings 79(4) DOR ($3,210,928) GE Business Division savings 79(5) DOR $755,462 OF Administration rebalance ■ 33 Section Analysis HB 5201 Section Agency Amount Fund Description 79(6) DOR ($2,503,828) OF Property Tax Division rebalance 79(7) DOR ($3,527) OF Personal Tax and Compliance Division rebalance 79(8) DOR ($600,823) OF Business Division rebalance 80 DOR ($500,000) GF Core system replacement project savings 81(1) GOV $1,080,000 GE Infrastructure Exchange for HB 4111 . 81(2) GOV $0 NA Appropriation satisfies Treasurer appropriation requirement in HB 4111 81(3) TREAS $1,080,000 OF Treasurer responsibilities under HR 4111 82 CCWD $46,469 OF Bond related costs 83 DOE $10,152,380 OF Limitation for lottery bond proceeds for Clean Energy Works Oregon 84 DOE ($9,876,190) OF Repeals previous limitation for home energy efficiency programs 85 ODE $1,000,000 GF Long Term Care and Treatment program 86 DOJ/DAs $240,000 GF District Attorney compensation plan increase of$5,000 one-time j effective July 1,2014 87 OHA $50,000 GF Buckley sobering center of Willamette Family Treatment Services 88(1) DHS $11,038,678 GF Home care worker compensation changes 88(2) DHS $19,168,335 FF Home care worker compensation changes 89 OHS $2,200,000 OF Child welfare,self sufficiency,and vocational rehabilitation services 90 ODE $2,200,000 FE Early learning programs 91 DHS $800,000 GF Pay for prevention effort 92(1) DHS $490,000 GF Community developmental disabilities programs 92(2) DHS $646,368 FF Community developmental disabilities programs 93(1) OHS $200,000 GF Nutrition programs 93(2) DHS $100,000 FF Nutrition programs 94 E-Board ($13,295,373) GF SPA for state agencies to fund senior services 95 000T $4,000,000 GE Public Transit Division's Elderly and People with Disabilities Transportation Program(senior package) 96 LTCO $949,183 GE Oregon Public Guardian and Conservator program(senior package) 97 OHA $30,000 GF Collection and analysis of data on cognitive impairment and caregiving (senior package) 98 DAS $20,000 GF Medford Senior Center for nutrition programs(senior package) 99(1)(a) OHS $3,300,000 GF Caregiver training(senior package) 99(1)(b) OHS $1,000,000 GF Program expenditures in lieu of quality care fund resources(senior package) 99(1)(c) DI-IS $200,000 GF Reporting and information projects(senior package) 99(1)(d) DHS $112,000 GF Assistance study(senior package) 99(1)(e) DHS $150,000 GF Distribution to Cash Oregon for technology upgrades(senior package) 99(1)(f) DHS $539,728 GF Personal incidental allowance increase(senior package) 99(1)(g) DHS $149,365 GF Expenses related to elder abuse programs(senior package) 99(1)(h) DHS $1,250,000 GE Area Agencies an Aging for health promotion and disease prevention programs(senior package) 99(1)(i) DHS $313,800 GF Senior property tax deferral hardship payments(senior package) 34 Section Analysis HB 5201 Section Agency Amount Fund Description 99(1)0) DRS $1,281,297 GF Start up costs for private payer home care(senior package) 99(2)(a) OHS $952,472 FF Personal incidental allowance increase(senior package) 99(2)(b) OHS $118,680 FF Expenses related to elder abuse programs(senior package) 100 ODA $430,590 OF Food safety program expenses 101(1) DAS $1,040,029 OF Beaverton Collaborative Health Center-lottery bond proceeds and issuance costs 101(2) DAS $1,040,029 OF Mid-Columbia Medical Center-lottery bond proceeds and issuance costs 101(3) DA5 $2,451,194 OF Cornelius Library Building-lottery bond proceeds and issuance costs 101(4) DAS $1,544,053 OF Stayton Stormwater Project-lottery bond proceeds and issuance costs 101(5) DAS $38,545,290 OF Oregon Health and Science University Cancer Institute-lottery bond proceeds and issuance costs 101(6) DAS $2,958,304 OF Port of Morrow Community Revitalization Revolving Loan Fund-lottery bond proceeds and issuance costs 102 DAS $161,490,000 OF Oregon Health and Science University Cancer Institute-Article Xl-G bond proceeds and issuance costs 103 DEC. $375,000 GF Air toxics monitoring in the Swan Island area 104 Various $68,308,842 GF 2%supplemental ending balance restoration(44%of total) 104 0800 $250,000 LF 2%supplemental ending balance restoration 105 Various $86,492,886 GF Compensation changes for state agency employees 105 Various $2,610,790 LF Compensation changes for state agency employees 105 Various $84,739,433 OF Compensation changes for state agency employees 105 Various $44,194,120 FF Compensation changes for state agency employees 106 $0 NA Emergency clause 35 0 o_ v, m -. 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I , : , ..mom ... 0 0M 0000 . .� '11'" 117 NW Lafayette Avenue Bend Oregon 97701-1925 MEMORANDUM (541)388-6575 FAX (541)385-1754 http://www.co.deschutes.or.us/cdd/ TO: Board of County Commissioners FROM: Nick Lelack, AICP, Director DATE: March 26, 2014 RE: Fee Waiver Request—John Shepherd Background The purpose of this work session is to consider a Fee Waiver Request from John Shepherd. The request is to waive all fees in the amount of $8,455 for a Conditional Use Permit (CUP) in the amount of $2,320, Site Plan Review in the amount of $3,135, and Hearings Officer deposit of $3,000 for a private park on his property at 71120 Holmes Road, Sisters, OR. Mr. Shepherd states the reason for the "public benefit" and "other remedies have been exhausted." Please find his letter attached. In addition, his attorney, Dave Hunnicut, President of Oregonians in Action, wrote in an email dated March 18, 2014 the following: Nick: In support of John Shepherd's fee waiver request, I would point out that resolution of the main issue in this case has statewide implications and will likely be appealed by the losing party to LUBA. It would be a benefit to all Deschutes County residents with an interest in this issue (from whatever perspective) to have this issue resolved, so that property owners and environmental groups will know whether or not weddings will be allowed as an activity in a "private park," and if so, under what limitations that activity may occur. Mr. Shepherd has already paid the county a substantial fee, the primary issue has already been litigated to the County Hearings Officer, and she has already rendered a decision on the primary issue. In Mr. Shepherd's previous application, there did not seem to be significant disputes over the facts, and there were only three parties involved, as I recall. The Hearings Officer's decision was thorough, and laid out a roadmap for a successful private park application. Whether the Board agrees with that decision or not is certainly unknown, but repeating the same steps to the Hearings Officer on a similar application which will likely involve the same parties raising the same issues to substantially similar facts seems like a waste of everyone's time and resources, including County staff, the applicant, and the opponents. Moving the case directly to the Board for resolution of an issue that will have great significance to the County and possibly statewide is prudent, and I hope that the Board will consider doing so. Dave Hunnicutt President Oregonians In Action Quality Services Performed with Pride In 2013, Mr. Shepherd also requested a fee waiver for the same reasons, and the Board denied the request. Mr. Shepherd subsequently applied for a CUP for a private park on his property in late spring 2013. He modified his application in summer 2013. A County Hearings Officer denied the application in December 2013. The decision was not appealed. Staff is available to discuss the issues raised by Mr. Shepherd in his letter regarding that process. The decision is attached. Discussion In consideration of Mr. Shepherd's fee waiver request, staff notes the following: (1) Mr. Shepherd still has a balance due in the amount of$750 from his previous application. (2) There is a pending code enforcement case on Mr. Shepherd's property for an unpermitted church. A church requires a land use permit and must comply with commercial building and access standards. Mr. Shepherd has stated publicly before the County Hearings Officer and in writing via email that he is using his house to hold church services. (3) In 2013, the County put code enforcement in abeyance through September 30, 2013 while Mr. Shepherd pursued permits. Mr. Shepherd also agreed in writing to not conduct any weddings after that date, including summer 2014, unless necessary permits were obtained. CDD and Legal Counsel have on file contracts for commercial weddings for summer 2014 (most weekends) submitted by Mr. Shepherd. One question is whether Mr. Shepherd will honor this agreement with Deschutes County? If Mr. Shepherd were to submit his land use applications immediately, it does not appear possible a final decision could be issued prior to the start of wedding season due to public hearing and notification requirements, and not including time for appeals, if necessary. CDD staff has been contacted by several parties over the past few weeks inquiring about the status of permits for weddings on Mr. Shepherd's property this summer. (4) While staff agrees with Mr. Hunnicutt that the Hearings Officer"rendered a decision on the primary issue" of weddings, this decision is not binding on the Board and has not been tested at LUBA. There are a number of complicated and potentially significant issues to be addressed in the Site Plan Review, including the Wildlife Area Overlay Zone. In addition, the County's Procedures Ordinance cannot also be waived by "moving the case directly to the Board for resolution." Planning and Legal staff believe a public hearing before a Hearings Officer is both required and necessary. Requested Board Action Staff seeks a Board decision to: (1) Approve the blanket fee waiver in the amount of approximately $8,455 and find that the action is in the public benefit, per the fee waiver policy; or (2) Approve a partial fee waiver (an amount less than $8,455) and find that the action is in the public benefit, per the fee waiver policy; or (3) Deny the fee waiver request; or (4) Conduct another work session on this request (this action may include directing staff to provide additional information). -2- I am hereby applying for a fee waiver for my CUP application for a private park. The fee waiver application states: The Board of County Commissioners may waive fees in any other case where the public benefit is served and other remedies have been exhausted. I believe I qualify for a waiver under the circumstances stated above for the following reasons: 1. Other remedies have been exhausted. a. I have been pursuing the legal options for a wedding venue for four years. b. After the Commission allowed wedding venues under agritourism, I submitted an application only to be told that it was"virtually impossible"to qualify. c. Following CDD's advice, I submitted a CUP application for a private park, paying the full amount. When Kevin Harrison, principal planner, raised the objection that wedding events were not recreational,and thus should not, in and of themselves, qualify for a private park, I spent another$880 to submit a revised CUP application with an expanded park to address that concern. d. Furthermore, Kevin Harrison told me that I could postpone the expensive Site Plan Review until a CUP decision was reached. Ultimately,the Hearings Officer rejected my application largely because of issues that would have been resolved in Site Plan Review. e. Finally, Harrison's"threshold"objection that a wedding event is not recreational and thus not suitable to a private park was overturned by the HO who agreed with us that wedding events are recreational and suitable for a private park. f. Last year, I paid Deschutes County$8,500 for permits,fines and fees,just related to this application. Compare that to my entire 2013 income from substitute teaching of $11,071. 2. The public benefit is served. a. The public benefit is served in that this CUP application will set legal precedent and thus further clarify a legal issue that has been simmering in Deschutes County for years. b. Furthermore,the public is served because countless brides will have an affordable and private venue in which they may marry. c. This venue will allow me to generate a modest income on EFU land that is mis- designated as"farm land" since the soil is considered "waste land" and it has never been irrigated or cultivated. d. The citizens of Deschutes County will benefit by the economic activity generated by 18 weddings per year, many of them destination weddings. Calculating the average amount spent on each wedding($26,000)and the amount spent by each visitor to Deschutes County, I estimate that my venue will generate$1.25 million in local economic activity. Thereby, having paid this fee once already, I respectfully request a waiver of the CUP application fee. John Shepherd 71120 Holmes Road Sisters OR 97759 ai venue ad renewal John Shepherd <shepherdsfield©gmail.com> Thu, Mar 20, 2014 at 7:4S PM To: Phil Wise Info@centraloregonweddings.com> Hey Phil, How are you?I bet life is heating up as the summer wedding season comes along. Say, I have a favor to ask. Due to the pressure from Oregon Land Watch and the County's current objection to my wedding venue, I have stopped taking any new reservations until this is cleared up. It is hard to keep turning brides down and bringing such disappointment to them. Could you please take my advertisement down from Central Oregon Weddings.com until this Is resolved?You are the only place I advertise, so this should end any further inquiries. rm still working hard to clear the legal hurtles and hope to be up and running again soon. Please confirm. Thanks, John Shepherd Shepherdsfield [Quoted text hidden] J 1-ES c0 0 of. Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 P.M., WEDNESDAY, MARCH 26, 2014 1. Legislative Wrap Up —Judith Ure 2. Request for Fee Waiver (John Shepherd) —Nick Lelack 3. Other Items Executive Session, under ORS 192.660(2)(h), pending or threatened litigation — County Counsel PLEASE NOTE:At any time during this meeting,an executive session could be called to address issues relating to ORS 192.660(2)(e),real property negotiations;ORS 192.660(2)(h),litigation;ORS 192.660(2)(d),labor negotiations;or ORS 192.660(2)(b),personnel issues;or other issues under ORS 192.660(2),executive session. Meeting dales,limes and discussion items are subject to change. All meetings are conducted in the Board of Commissioners'meeting rooms at 1300 NW Wall St.,Bend,unless otherwise indicated. Ifyou have questions regarding a meeting,please call 388-6572. Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible,please call(541)388-6571,or send an e-mail to bonnie.baker( dcschutcs.org.