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2010-09-22 Work Session Minutes
Deschutes County Agenda Wednesday, September 22, 2010 2:30 p.m. 1-866-279-1568 *8678842* I. INTRODUCTIONS II. 2011 LEGISLATIVE OUTLOOK a. Revenue Forecasts i. Second Round of 9% Cuts ii. Emergency Board Action Tomorrow b. Statewide Races Overview i. Governor ii. Treasurer c. Legislative Races Overview d. Legislative Session Calendar/Deadlines III. 2011 SESSION AGENDA SETTING a. Proactive b. Reactive c. Bill Drop Deadlines i. House 1. September 27: Pre-Session Bills to Legislative Counsel 2. December 31: Members Must File Pre-Session Drafts with Chief Clerk of the House 3. Session Deadlines Remain Outstanding (Likely January) ii. Senate 1 1. Only One Solid Deadline 2. September 27: Pre-Session Filing Deadline Rejected in February (October 8 Likely Deadline After This Week) 3. December 31: Members Must File Pre-Session Drafts with Secretary of the Senate iii. Anticipated Session Bill Drop Deadlines 1. Concepts into LC by Mid-January 2. Drafts to Secretary of the Senate or Chief Clerk fo the House by Mid-February 3. Members in Each Chamber Given a Certain Number of Priority Bills Due to Early Bill Drop Deadlines IV. OTHER BUSINESS a. Schedule Next Meeting 2 1 Public Affairs Counsel From:Public Affairs Counsel <pacounsel@pacounsel.org> Sent:Thursday, August 26, 2010 10:06 AM To:'Public Affairs Counsel' Cc:ericah@pacounsel.org; 'David Reinhard' Subject:Oregon Revenue Forecast: Down $377.5 Million Attachments:Oregon August 2010 Revenue Forecast_Press Packet.pdf; Oregon August 2010 Revenue Forecast PowerPoint Slides.ppt Today’s revenue forecast confirmed last week’s early release of the dim revenue outlook in Oregon. The Office of Economic Analysis indicated that Oregon’s economy is experiencing an “anemic” recovery that has stalled since the beginning of the year. Oregon currently has the seventh-slowest job growth of any state. The $377.5 million drop from the June 2010 forecast for Oregon’s current budget (2009-2011) is mainly due to a drop in personal income tax projections. Lottery and corporate income tax collections were anticipated to improve very slightly, but the massive $402 million drop in personal income tax overshadows these small gains. Oregon still has $111 million in reserves between the Rainy Day Fund and the Education Stability Fund for this current budget cycle. The 2011-2013 budget forecast is projected to be down another $622 million. We will keep you updated if we hear anything definitive on a special session to rebalance the budget. Thanks, PAC 3 Pr e s e n t e d b y : O f f i c e o f E c o n o m i c A n a l y s i s Da t e : A u g u s t 2 6 , 2 0 1 0 Ec o n o m i c a n d R e v e n u e F o r e c a s t Se p t e m b e r 2 0 1 0 Ho u s e & S e n a t e R e v e n u e C o m m i t t e e s 4 2 Ec o n o m i c a n d R e v e n u e F o r e c a s t O R E G O N P R E L I M I N A R Y EC O N O M I C F O R E C A S T OR E G O N F I N A L E C O N O M I C F O R E C A S T PE R S O N A L I N C O M E TA X M O D E L S CO R P O R A T E I N C O M E TA X M O D E L S Fo r e c a s t e r J u d g e m e n t LE G I S L A T I V E & P O L I C Y C H A N G E S FI N A L R E V E N U E E S T I M A T E U. S . E c o n o m i c Hi s t o r y a n d F o r e c a s t (G l o b a l I n s i g h t , I n c . ) Or e g o n E c o n o m i c Hi s t o r y Or e g o n C o r p o r a t e In c o m e T a x H i s t o r y O r e g o n P e r s o n a l In c o m e T a x H i s t o r y Go v e r n o r ’ s C o u n c i l of E c o n o m i c Ad v i s o r s D A S A d v i s o r y Co m m i t t e e OR E G O N E C O N O M I C M O D E L Go v e r n o r ’ s C o u n c i l o f E c o n o m i c Ad v i s o r s “ P r e - M e e t i n g ” C o u n c i l o f R e v e n u e Fo r e c a s t A d v i s o r s N o n - i n c o m e t a x re v e n u e p r o j e c t i o n s 5 3 3 Ra p i d l y C h a n g i n g P i c t u r e f o r t h e US E c o n o m y … Re a l G D P ( % ) Un e m p l o y m e n t Ra t e ( % ) Pa y r o l l s (0 0 0 s / m o n t h ) Pr e v i o u s Ne w Pr e v i o u s Ne w Pr e v i o u s Ne w Qu a r t e r l y d a t a : 20 1 0 : Q 3 3. 3 2. 3 9. 6 9. 6 12 0 . 5 8. 0 Q4 2. 8 2. 8 9. 5 9. 6 15 3 . 3 11 4 . 1 20 1 1 : Q 1 2. 7 2. 3 9. 3 9. 4 21 3 . 8 15 9 . 3 Q2 3. 2 3. 1 9. 1 9. 3 21 7 . 3 19 0 . 7 Q3 N. A . 3. 0 N. A . 9. 0 N. A . 18 9 . 9 An n u a l a v e r a g e d a t a : 20 1 0 3. 3 2. 9 9. 6 9. 6 -3 7 . 5 -4 5 . 2 20 1 1 3. 1 2. 7 8. 9 9. 2 18 4 . 0 14 3 . 8 20 1 2 3. 2 3. 6 8. 0 8. 2 N. A . N. A . 20 1 3 2. 9 2. 6 7. 1 7. 3 N. A . N. A . Qu o t e s f r o m N e w s P u b l i c a t i o n s : • S E L D O M d o e s t h e U n i t e d S t a t e s l o o k a t Eu r o p e w i t h e c o n o m i c envy. The past few we e k s , h o w e v e r , h a v e b e e n o n e o f t h o s e r a r e ph a s e s . Co n c e r n a b o u t A m e r i c a ’ s s t u m b l i n g re c o v e r y h a s b e e n r i s i n g , just as anxieties ab o u t t h e e u r o a r e a ’ s e c o n o m y h a v e f a d e d . Fr o m T h e E c o n o m i s t , A u g u s t 1 2 , 2 0 1 0 . • F o l l o w i n g T u e s d a y ’ s e x t r e m e l y d o v i s h FO M C s t a t e m e n t i n a d d i t i o n t o n e w s th a t Q 2 r e a l G D P g r o w t h a p p e a r s t o b e sh a r p l y l o w e r t h a n w h a t w a s i n i t i a l l y re p o r t e d , w e a r e lo w e r i n g o u r s e c o n d ha l f g r o w t h f o r e c a s t and pushing out the an t i c i p a t e d t i m i n g o f F e d h i k e s . De u t s c h e B a n k , A u g u s t 1 1 , 2 0 1 0 . • S t a n d a r d & P o o r ' s C h i e f E c o n o m i s t Da v i d W y s s n o t e s t h a t a l l t h e economic nu m b e r s th a t h a v e b e e n c o m i n g i n a r e be l o w e x p e c t a t i o n s . Growth is expected to c o n t i n u e , a n d f o r t h e n e x t f e w qu a r t e r s , s o w i l l t h e b e l o w - t r e n d p a c e . Au g u s t 1 1 , 2 0 1 0 Of f i c e o f E c o n o m i c A n a l y s i s “T h e o u t l o o k f o r g r o w t h i n t h e U. S . e c o n o m y l o o k s w e a k e r n o w th a n i t d i d j u s t t h r e e m o n t h s a g o , a c c o r d i n g t o 3 6 f o r e c a s t e r s su r v e y e d b y t h e F e d e r a l R e s e r ve B a n k o f P h i l a d e l p h i a . ” 6 4 4 -8-6-4-202468 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 Ba s e l i n e ( 6 5 % ) Pe s s i m i s t i c ( 2 0 % ) Op t i m i s t i c ( 1 5 % ) (P e r c e n t c h a n g e , a n n u a l r a t e ) Re a l G D P G r o w t h i n Al t e r n a t i v e S c e n a r i o s Co p y r i g h t © 2 0 1 0 G l o b a l I n s i g h t , I n c . (1 5 % ) (25%) Ap r i l B a s e l i n e 7 5 5 Bo t t o m L i n e f o r U S E c o n o m y • T h e “ r e c o v e r y - r e c e s s i o n ” i s i n i t s s e c o n d y e a r . T e c h n i c a l r e c e s s i o n in t h e U . S . e n d e d l a s t s u m m e r , w i t h t h e u n e m p l o y m e n t r a t e t o p i n g ou t a t 1 0 . 1 % i n t h e f o u r t h q u a r t e r of 2 0 0 9 . T h e l a b o r m a r k e t w i l l re m a i n w e a k w i t h u n e m p l o y m e n t a v e r a g i n g 9 . 7 % i n 2 0 1 0 . • C r e d i t m a r k e t s a r e s l o w l y r e t u r n i n g t o p r e - L e h m a n c o l l a p s e d a y s b u t ri s k p r e m i u m s a r e s t i l l p r e s e n t . R e s i d e n t i a l a n d c o m m e r c i a l r e a l es t a t e s t i l l t i g h t . • T h e h o u s i n g m a r k e t w i l l c o n t i n u e t o r e m a i n f r a g i l e . H o u s i n g s t a r t s ma r g i n a l l y i m p r o v e d i n t h e p a s t y ea r o f f t h e i r h i s t o r i c l o w s . B u t re c e n t m o n t h s p o i n t t o a b u m p y r oa d t h i s y e a r . P r i c e s w i l l c o n t i n u e to d e c l i n e t h r o u g h o u t 2 0 1 0 . • I n f l a t i o n i s n o t a t h r e a t t o d a y o r e v e n n e x t y e a r b u t t h e s t a g e i s s e t fo r c a r e f u l l y e x e c u t e d e x i t s t r a t e g i e s t o a v o i d i n f l a t i o n i n t h e f u t u r e . • A f t e r a n i n i t i a l s u r g e o f e c o n o m i c g r o w t h i n t h e f o u r t h q u a r t e r 2 0 0 9 an d f i r s t q u a r t e r 2 0 1 0 , t h e e c o n o m y i s w a n i n g . G D P g r o w t h w i l l b e re v i s e d d o w n f o r t h e s e c o n d q u a r t e r a n d w i l l r e m a i n b e l o w p o t e n t i a l th r o u g h o u t 2 0 1 0 . Co p y r i g h t © 2 0 1 0 G l o b a l I n s i g h t , I n c . Of f i c e o f E c o n o m i c A n a l y s i s 8 6 • 1 0 . 6 % u n e m p l o y m e n t r a t e f o r J u l y 20 1 0 ( J u l U S r a t e i s 9 . 5 % ) i s d o w n fr o m t h e h i g h e s t r a t e o f 1 1 . 6 % i n M a y a n d J u n e 2 0 0 9 , b u t e s s e n t i a l l y un c h a n g e d t h e p a s t n i n e m o n t h s . • 4 3 r d f a s t e s t j o b g r o w t h a t - 0 . 6 % f o r a l l s t a t e s f o r J u l y 2 0 1 0 o v e r J u l y 20 0 9 . • T o t a l n o n f a r m e m p l o y m e n t d r o p p e d - 1 . 2 % y e a r - o v e r - y e a r f o r t h e 2 nd qu a r t e r o f 2 0 1 0 . J o b g a i n s ( S . A . ) i n f ou r o f f i r s t s i x m o n t h s o f 2 0 1 0 w i t h th e p r i v a t e s e c t o r e s s e n t i a l l y u n c h a n g e d . • 1 . 5 % p e r s o n a l i n c o m e g r o w t h f o r 1 st qu a r t e r o f 2 0 1 0 o v e r 1 st quarter of 20 0 9 . A n n u a l i z e d 1 st qu a r t e r 2 0 1 0 g r o w t h a t 4 . 3 % . • O r e g o n e x p o r t s i n c r e a s e d 3 5 . 6 % i n th e f i r s t h a l f o f 2 0 1 0 c o m p a r e d t o th e s a m e p e r i o d l a s t y e a r a n d h a v e r e g a i n e d t h e m a j o r i t y o f t h e i r l o s s e s fr o m l a t e 2 0 0 8 a n d e a r l y 2 0 0 9 . Re c e n t O r e g o n E c o n o m y F a c t s 9 7 20 0 9 19 8 2 19 4 9 19 5 4 19 5 7 19 8 1 19 5 8 19 6 1 19 7 5 19 5 2 19 5 3 19 7 0 19 6 0 19 6 7 19 7 1 19 4 8 19 5 0 19 5 5 19 5 1 19 5 9 19 6 5 19 7 2 19 7 7 1978 19 8 0 19 9 1 19 6 6 19 7 3 19 7 6 19 7 9 19 8 8 19 8 9 19 8 3 19 9 9 20 0 1 20 0 2 20 0 3 20 0 8 19 7 4 19 8 5 19 8 6 19 9 2 19 9 8 20 0 0 19 5 6 19 6 2 19 6 3 19 6 4 19 6 8 19 6 9 20 0 4 20 0 5 20 0 6 20 0 7 19 8 4 19 8 7 19 9 0 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 -7 . 5 % to - 6 % -6 % t o -4 . 5 % -4 . 5 % to - 3 % -3 % t o -1 . 5 % -1 . 5 % to 0 % 0% t o 1. 5 % 1. 5 % t o 3% 3% t o 4. 5 % 4. 5 % t o 6% 6% t o 7. 5 % 7.5% to 9% Or e g o n A n n u a l E m p l o y m e n t Gr o w t h 1 9 4 7 - 2 0 0 9 Av e r a g e : 2 . 2 3 % Me d i a n : 2 . 8 6 % 10 8 Le a d i n g I n d i c a t o r s 3 o f 1 1 I n d i c a t o r s a r e P o s i t i v e O r e g o n I n d e x o f L e a d i n g I n d i c a t o r s (S i x - M o n t h A n n u a l i z e d P e r c e n t C h a n g e , t h r o u g h J u l y 2 0 1 0 ) -3 0 % -2 0 % -1 0 % 0% 10 % 20 % 30 % 19 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 -10.0%-6.7%-3.3%0.0%3.3%6.7%10.0% Le a d i n g I n d e x ( L e f t A x i s ) Di f f u s i o n I n d e x < 5 0 No n f a r m E m p l o y m e n t ( R i g h t A x i s ) 11 9 In i t i a l C l a i m s (t h r o u g h J u l y 2 0 1 0 ) In i t i a l U n e m p l o y m e n t C l a i m s p e r 1 , 0 0 0 L a b o r F o r c e ( S A ) 01234567 Ja n - 8 7 J a n - 8 9 J a n - 9 1 J a n - 9 3 J a n - 9 5 J a n - 9 7 J a n - 9 9 J a n - 0 1 J a n - 0 3 J a n - 0 5 J a n - 0 7 J a n - 0 9 Un i t e d S t a t e s Or e g o n ht t p : / / o r e g o n e c o n o m i c a n a l y s i s . w o r d p r e s s . c o m / 12 10 Fo r e c a s t C h a n g e s Or e g o n T o t a l N o n f a r m E m p l o y m e n t ( 0 0 0 s ) 1, 5 7 5 1, 6 2 5 1, 6 7 5 1, 7 2 5 1, 7 7 5 1, 8 2 5 1, 8 7 5 1, 9 2 5 2 0 0 6 Q 1 2 0 0 6 Q 3 2 0 0 7 Q 1 2 0 0 7 Q 3 2 0 0 8 Q 1 2 0 0 8 Q 3 2 0 0 9 Q 1 2 0 0 9 Q 3 2 0 1 0 Q 1 2 0 1 0 Q 3 2 0 1 1 Q 1 2 0 1 1 Q 3 2 0 1 2 Q 1 2 0 1 2 Q 3 2 0 1 3 Q 1 2 0 1 3 Q 3 2 0 1 4 Q 1 2 0 1 4 Q 3 2 0 1 5 Q 1 2 0 1 5 Q 3 2 0 1 6 Q 1 2016Q3 2017Q1 2017Q3 Ma r - 0 8 Se p - 0 8 De c - 0 8 Ma r - 0 9 Ma y - 0 9 Se p - 0 9 De c - 0 9 Ma r - 1 0 Ju n - 1 0 10 - S e p 13 11 To t a l N o n - f a r m E m p l o y m e n t (A n n u a l P e r c e n t C h a n g e ) -7 . 0 -6 . 0 -5 . 0 -4 . 0 -3 . 0 -2 . 0 -1 . 0 0. 0 1. 0 2. 0 3. 0 4. 0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2016 2017 P e r c e n t C h a n g e Or e g o n U.S. 14 12 CO M P A R I S O N O F L A S T T H R E E F O R E C A S T S Ma r 2 0 1 0 J u n 2 0 1 0 S e p 2 0 1 0 PE R S O N A L I N C O M E G R O W T H -20246810 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 P e r c e n t EM P L O Y M E N T G R O W T H -7-6-5-4-3-2-101234 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200720082009201020112012201320142015 P e r c e n t Fo r e c a s t C o m p a r i s o n s 15 13 Ri s k s t o t h e F o r e c a s t … ▲ Up s i d e ▲ Fi n a n c i a l m a r k e t s r e t u r n m o r e q u i c k l y t o n o r m a l ▲ Qu i c k e r , s t r o n g e r r e l e a s e o f p e n t - u p d e m a n d ▲ Mo r e r o b u s t g l o b a l g r o w t h ▼ Do w n s i d e ▼ Ho u s i n g d o w n t u r n c o n t i n u e s ▼ Af t e r s h o c k s f r o m t h e f i n a n c i a l c r i s i s ▼ Ch i n a b u b b l e ? E u r o Z o n e F i n a n c i a l s ? ► Ot h e r C o n s i d e r a t i o n s ► Im p a c t o f M e a s u r e s 6 6 a n d 6 7 ► He a l t h c a r e r e f o r m 16 14 14 Bo t t o m L i n e f o r t h e O r e g o n E c o n o m y • T h e “ t e c h n i c a l ” r e c e s s i o n i n O r e g o n e n d e d l a t e l a s t su m m e r o r f a l l . T h e “ j o b l e s s ” r e c o v e r y h a s t a k e n h o l d . • J o b l o s s e s w i l l c o n t i n u e i n t o t h e t h i r d q u a r t e r o f 2 0 1 0 , wi t h o n l y m i l d j o b g r o w t h t h r o u g h 2 0 1 1 . • H o u s i n g p r i c e s w i l l s t i l l d e c l i n e t h r o u g h o u t 2 0 1 0 b u t lo o k i n g m o r e l i k e a b o t t o m h a s b e e n r e a c h e d i n ho u s i n g p e r m i t s ( e v e n w i t h t h e J u l y d r o p f o l l o w i n g t h e ex p i r a t i o n o f t h e t a x c r e d i t ) . • H o u s i n g w i l l n o t l e a d d u r i n g t h e r e c o v e r y . F i r s t se c t o r s l i k e l y t o c o m e b a c k : p r o f e s s i o n a n d b u s i n e s s se r v i c e s , h e a l t h c a r e s e r v i c e s , c o m p u t e r a n d el e c t r o n i c p r o d u c t s , r e t a i l . 17 15 Ge n e r a l F u n d R e v e n u e Fo r e c a s t • F o r e c a s t t r a c k i n g s l i g h t l y b e h i n d J u n e f o r e c a s t – G e n e r a l l y , a “ m i x e d b a g ” • 2 0 0 9 - 1 1 d o w n $ 3 7 7 . 5 m i l l i o n r e l a t i v e t o J u n e fo r e c a s t – R e f l e c t s w e a k e n e d e c o n o m i c o u t l o o k 18 16 20 0 9 - 1 1 G F R e v e n u e Pe r s o n a l I n c o m e T a x $1 1 , 5 4 5 . 7 $ 1 0 , 7 4 7 . 6 $1 0 , 3 4 5 . 3 -$ 4 0 2 . 3 -$1,200.4 Co r p o r a t e I n c o m e T a x $8 3 1 . 6 $ 8 5 1 . 4 $8 7 3 . 9 $22.5 $42.3 Ot h e r R e v e n u e s $1 , 1 9 8 . 4 $ 1 , 0 8 5 . 7 $1 , 0 8 8 . 1 $2.3 -$110.3 To t a l G F R e s o u r c e s $1 3 , 5 7 5 . 7 $ 1 2 , 6 8 4 . 7 $1 2 , 3 0 7 . 2 -$ 3 7 7 . 5 -$1,268.5 L e s s : A n t i c i p a t e d A d m i n i s t r a t i v e A c t i o n s $ 4 3 . 7 $1 5 . 7 $1 5 . 7 $0.0 -$28.0 P l u s : L e g i s l a t i v e A c t i o n s $0 . 0 $6 4 . 3 $ 1 8 0 . 0 $1 1 5 . 7 $ 1 8 0 . 0 Pr o j . E x p e n d i t u r e s $1 3 , 2 9 8 . 1 $ 1 3 , 3 1 0 . 4 $1 2 , 8 4 9 . 0 -$ 4 6 1 . 4 -$449.1 En d i n g B a l a n c e $2 3 3 . 8 - $ 6 4 1 . 4 -$ 3 7 7 . 5 $2 6 3 . 9 -$611.3 Ge n e r a l F u n d R e s o u r c e s 20 0 9 - 1 1 B i e n n i u m Ge n e r a l F u n d (M i l l i o n s ) CO S Fo r e c a s t Ju n 2 0 1 0 Fo r e c a s t Se p 2 0 1 0 Fo r e c a s t Ch a n g e f r o m Ju n e Change from COS 2009 19 17 Re c e n t P I T R e v e n u e Pe r f o r m a n c e • W i t h h o l d i n g – S i g n i f i c a n t w e a k e n i n g i n t h e l a s t t h r e e m o n t h s • T o t a l P I T y e a r - o v e r - y e a r i n c r e a s e d f o r f i r s t t i m e si n c e 1 Q 2 0 0 9 – L i k e l y d u e t o M e a s u r e 6 6 20 18 Pe r s o n a l I n c o m e T a x F o r e c a s t • D o w n $ 4 0 2 . 3 m i l l i o n i n 2 0 0 9 - 1 1 – B r o a d w e a k n e s s r e f l e c t i n g l i m i t e d e c o n o m i c g r o w t h • D e c r e a s e d b y l a r g e r a m o u n t s f o r o u t - y e a r s o f fo r e c a s t , r e f l e c t i n g v i e w o f w e a k e r g r o w t h th r o u g h f o r e c a s t p e r i o d 21 19 PI T G r o w t h P e r s o n a l I n c o m e T a x C o l l e c t i o n s ( Q u a r t e r l y , Y e a r - o v e r - y e a r p e r c e n t c h a n g e ) - 4 0 % - 3 0 % - 2 0 % - 1 0 % 0 % 1 0 % 2 0 % 3 0 % 1 9 9 6 : 7 1 9 9 7 : 1 1 9 9 7 : 7 1 9 9 8 : 1 1 9 9 8 : 7 1 9 9 9 : 1 1 9 9 9 : 7 2 0 0 0 : 1 2 0 0 0 : 7 2 0 0 1 : 1 2 0 0 1 : 7 2 0 0 2 : 1 2 0 0 2 : 7 2 0 0 3 : 1 2 0 0 3 : 7 2 0 0 4 : 1 2 0 0 4 : 7 2 0 0 5 : 1 2 0 0 5 : 7 2 0 0 6 : 1 2 0 0 6 : 7 2 0 0 7 : 1 2 0 0 7 : 7 2 0 0 8 : 1 2 0 0 8 : 7 2 0 0 9 :1 2 0 0 9 :7 2 0 1 0 :1 22 20 Co r p o r a t e I n c o m e T a x / O t h e r GF R e v e n u e F o r e c a s t • C o r p o r a t e i n c o m e t a x e s i n c r e a s e d $ 2 2 . 5 mi l l i o n – R o u g h l y $ 2 6 m i l l i o n ab o v e ki c k e r t h r e s h o l d • O t h e r c h a n g e s ( u p $ 2 . 3 m i l l i o n ) : – E s t a t e t a x e s , I n s u r a n c e t a x e s h i g h e r – C i g a r e t t e t a x e s l o w e r 23 21 Co r p o r a t e P r o f i t s F o r e c a s t s So u r c e : B l u e C h i p E c o n o m i c I n d i c a t o r s 051015202530 J a n - 0 9 F e b - 0 9 M a r - 0 9 A p r - 0 9 M a y - 0 9 J u n - 0 9 J u l - 0 9 A u g - 0 9 S e p - 0 9 O c t - 0 9 N o v - 0 9 D e c - 0 9 J a n - 1 0 F e b - 1 0 M a r - 1 0 A p r - 1 0 M a y - 1 0 Jun-10 Jul-10 Aug-10 P e r c e n t I n c r e a s e 24 22 Bu d g e t a r y R e s e r v e O u t l o o k ( M i l l i o n s ) 2 0 0 7 - 0 9 B i e n n i u m 2 0 0 9 - 1 1 B i e n n i u m 2011-13 Biennium R a i n y D a y F u n d B e g i n n i n g B a l a n c e $ 0 . 0 $ 1 1 2 . 5 $10.7 N e t D e p o s i t s $ 9 4 . 3 - $ 1 0 3 . 4 $0.0 I n t e r e s t $ 1 8 . 3 $ 1 . 7 $0.2 E n d i n g B a l a n c e 1 $ 1 1 2 . 5 $ 1 0 . 7 $10.9 E d u c a t i o n S t a b i l i t y F u n d B e g i n n i n g B a l a n c e $ 1 7 8 . 9 $ 0 . 1 $100.8 N e t D e p o s i t s - $ 1 7 8 . 9 $ 1 0 0 . 7 $195.2 In t e r e s t 2 $ 1 7 . 2 $ 2 . 7 $15.7 T r i g g e r e d W i t h d r a w a l s - $ 1 7 . 1 - $ 2 . 7 -$15.7 E n d i n g B a l a n c e $ 0 . 1 $ 1 0 0 . 8 $296.0 T o t a l R e s e r v e s $ 1 1 2 . 6 $ 1 1 1 . 5 $307.0 O r e g o n ' s B u d g e t a r y R e s e r v e s 25 23 Re v e n u e I s s u e s / R i s k s • F o r e c a s t C o m p l i c a t i o n s w i t h N e w T a x Me a s u r e s – T r a c k i n g d i f f i c u l t , e s p e c i a l l y i n n e a r - t e r m – I n c r e a s e d v o l a t i l i t y • I m p a c t o f F e d e r a l C h a n g e s o n t a x p a y e r be h a v i o r 26 24 Lo t t e r y R e v e n u e F o r e c a s t • B a s e l i n e n e a r - t e r m f o r e c a s t i n c r e a s e d s l i g h t l y – A d d i t i o n a l a d m i n i s t r a t i v e s a v i n g s o f $ 1 1 m i l l i o n re l a t i v e t o J u n e . • O u t - y e a r s d e c r e a s e d s l i g h t l y – L o w e r e x p e c t a t i o n s f o r c o n s u m e r s p e n d i n g 27 25 Lo t t e r y R e v e n u e F o r e c a s t Ju n 2 0 1 0 S e p 2 0 1 0 (M i l l i o n s ) Fo r e c a s t F o r e c a s t A m o u n t P e r c e n t Be g i n n i n g B a l a n c e $1 . 4 $1 . 4 - 0 . 0 % Ea r n i n g s $1 , 0 6 8 . 0 $1 , 0 6 1 . 6 (6 . 4 ) - 0 . 6 % Ad m i n i s t r a t i v e S a v i n g s $9 . 4 $2 0 . 4 11 . 0 Ot h e r R e s o u r c e s 1 $0 . 8 $0 . 9 0. 1 1 5 . 6 % To t a l R e s o u r c e s $1 , 0 7 9 . 5 $1 , 0 8 4 . 2 4. 7 0 . 4 % Al l o c a t i o n s 1, 0 7 5 . 5 1, 0 7 6 . 8 1. 3 0 . 1 % En d i n g B a l a n c e $4 . 0 $7 . 4 3. 4 8 6 . 4 % Lo t t e r y R e s o u r c e s (M i l l i o n s o f D o l l a r s ) Ch a n g e f r o m J u n 20 0 9 - 1 1 B i e n n i u m 28 26 26 Fo r M o r e I n f o r m a t i o n Of f i c e o f E c o n o m i c A n a l y s i s 15 5 C o t t a g e S t r e e t N E , U 2 0 Sa l e m , O R 9 7 3 0 1 - 3 9 6 6 (5 0 3 ) 3 7 8 - 3 4 0 5 Em a i l : oe a . i n f o @ s t a t e . o r . u s We b s i t e : ht t p : / / o r e g o n . g o v / d a s / o e a Bl o g : ht t p : / / o r e g o n e c o n o m i c a n a l y s i s . w o r d p r e s s . c o m / Tw i t t e r : ht t p : / / t w i t t e r . c o m / O R _ E c o n A n a l y s i s 29 DR I El d o n R o l l i n s L y nn K i n d r e d 2 RE P . T i m F r e e m a n - R RE P . T i m F r e e m a n Ha r r y M c D e r m o t t 33 . 3 % 4 3 . 2 % 2 3 . 5 % 9 . 9 % 3 RE P . R o n M a u r e r - R Wa l l y H i c k s 31 . 3 % 4 1 . 7 % 2 7 . 0 % 1 0 . 3 % 4 RE P . D e n n i s R i c h a r d s o n - R R E P . D e n n i s R i c h a r d s o n R i c k L e v i n e 29 . 4 % 4 5 . 7 % 2 4 . 9 % 1 6 . 4 % 5 RE P . P e t e r B u c k l e y - D S a n d r a A A b e r c r o m b i e RE P . P e t e r B u c k l e y 47 . 5 % 2 7 . 9 % 2 4 . 6 % - 1 9 . 6 % 6 RE P . S a l E s q u i v e l - R RE P . S a l E s q u i v e l L y nn H o w e 33 . 6 % 4 2 . 4 % 2 3 . 9 % 8 . 8 % 7 RE P . B r u c e H a n n a - R RE P . B r u c e H a n n a Sa r a B y er s 35 . 9 % 4 0 . 2 % 2 3 . 9 % 4 . 3 % 8 RE P . P a u l H o l v e y - D Si m o n e G o r d o n RE P . P a u l H o l v e y 55 . 5 % 1 9 . 9 % 2 4 . 7 % - 3 5 . 6 % 9 RE P . A r n i e R o b l a n - D R S c o t t R o b e r t s R E P . A r n i e R o b l a n 42 . 3 % 3 4 . 0 % 2 3 . 7 % - 8 . 2 % Ed w a r d J o h n s t o n Ge o r g e G o l d s t e i n Be c k y L e m l e r 11 RE P . P h i l B a r n h a r t - D K e l l y R L o v e l a c e RE P . P h i l B a r n h a r t 45 . 0 % 3 2 . 0 % 2 3 . 0 % - 1 3 . 0 % 12 RE P . T e r r y B e y er - D Se a n V a n G o r d o n RE P . T e r r y B e y e r 44 . 5 % 2 8 . 4 % 2 7 . 1 % - 1 6 . 1 % 13 RE P . N a n c y N a t h a n s o n - D Bi l l Y o u n g RE P . N a n c y N a t h a n s o n 48 . 6 % 2 6 . 5 % 2 4 . 9 % - 2 2 . 1 % 14 RE P . V a l H o y le - D Dw i g ht C o o n RE P . V a l H o y le 42 . 4 % 3 1 . 1 % 2 6 . 4 % - 1 1 . 3 % 15 RE P . A n d y O l s o n - R RE P . A n d y O l s o n Bu d L a u r e n t 37 . 9 % 3 8 . 3 % 2 3 . 8 % 0 . 4 % 16 RE P . S a r a G e l s e r - D Ro s e C o o k RE P . S a r a G e l s e r 50 . 0 % 2 4 . 4 % 2 5 . 6 % - 2 5 . 6 % Br u c e C u f f RE P . S h e r r i e S p r e n g e r 18 RE P . V i c G i l l i a m - R RE P . V i c G i l l i a m Ro d n e y E O r r 34 . 4 % 4 1 . 7 % 2 3 . 9 % 7 . 3 % 19 RE P . K e v i n C a m e r o n - R R E P . K e v i n C a m e r o n C l a u d i a K y le 37 . 2 % 3 9 . 4 % 2 3 . 3 % 2 . 2 % 20 RE P . V i c k i B e r g er - R RE P . V i c k i B e r g e r Mi k e P o w e r s 40 . 0 % 3 6 . 9 % 2 3 . 1 % - 3 . 1 % Ke n J a c o b s Jo h n A l a m a r e z Ma r v i n S a n n e s To m M C h e r e c k J r Ka t h y L e C o m p t e 23 RE P . J i m T h o m p s o n - R R E P . J i m T h o m p s o n We s l e y W W e s t 34 . 8 % 4 1 . 4 % 2 3 . 7 % 6 . 6 % 24 RE P . J i m W e i d n e r - R R E P . J i m W e i d n e r Su s a n S o k o l B l o s s e r 36 . 7 % 3 8 . 3 % 2 5 . 1 % 1 . 6 % RE P . K i m T h a t c h e r Do u g la s J H e u e r 26 RE P . M a t t W i n g ar d - R RE P . M a t t W i n g ar d Sa n d y W e b b 35 . 2 % 4 0 . 0 % 2 4 . 8 % 4 . 8 % 27 RE P . T o b i a s R e a d - D D a n L u c a s R E P . T o b i a s R e a d 47 . 0 % 2 9 . 9 % 2 3 . 0 % - 1 7 . 1 % 28 RE P . J e f f B a r k e r - D B i l l B e r g RE P . J e f f B a r k e r 43 . 8 % 2 8 . 1 % 2 8 . 1 % - 1 5 . 7 % 29 RE P . C h u c k R i l e y - D Ka t i e E y re B r e w e r Ka t i e R i l e y 40 . 7 % 3 1 . 4 % 2 7 . 9 % - 9 . 3 % 30 RE P . D a v i d E d w a r d s - D Sh a w n L i n d s a y Do u g A i n g e 39 . 8 % 3 2 . 4 % 2 7 . 8 % - 7 . 5 % 31 RE P . B r a d W i t t - D E d D e C o s t e R E P . B r a d W i t t 45 . 7 % 2 8 . 8 % 2 5 . 5 % - 1 6 . 9 % 5.5% 43 . 7 % 3 0 . 1 % 2 6 . 2 % - 1 3 . 6 % 6.3%-15.9% 34 . 5 % 4 0 . 8 % 2 4 . 6 % 1 35 . 4 % 4 0 . 9 % RE P . W a y n e K r i e g e r 23.8% RE P . B r i a n C l e m - D 7.2% 41 . 5 % 2 4 . 3 % 26.2% RE P . W a y n e K r i e g e r - R 25 RE P . K i m T h a t c h e r - R Ji m D y e r 34 . 3 % RE P . B e t t y K o m p - D 30 . 3 % -13.3% RE P . B r i a n C l e m 43 . 5 % 20 1 0 H o u s e Ho u s e Di s t r i c t CU R R E N T L E G I S L A T O R RE P U B L I C A N CA N D I D A T E S DE M O C R A T CA N D I D A T E S *R e g i s t r a t i o n % House Reg. % R Advantage 22 RE P . B e t t y K o m p 25.9% 21 29 . 1 % RE P . J e a n C o w a n 17 RE P . S h e r r i e S p r e n g e r - R Ri c h a r d H a r i s a y 10 RE P . J e a n C o w a n - D 45 . 0 % 30 32 RE P . D e b o r a h B o o n e - D L e w B a r n e s R E P . D e b o r a h B o o n e 41 . 4 % 3 3 . 6 % 2 5 . 0 % - 7 . 8 % 33 RE P . M i t c h G r e e n l i c k - D M i c h a e l B i e k e r R E P . M i t c h G r e e n l i c k 49 . 1 % 2 4 . 4 % 2 6 . 5 % - 2 4 . 7 % 34 RE P . C h r i s H a r k e r - D T y le r H i l l RE P . C h r i s H a r k e r 44 . 6 % 2 7 . 8 % 2 7 . 6 % - 1 6 . 8 % 35 RE P . M a r g ar e t D o h e r t y - D Go r d o n F i d d e s RE P . M a r g ar e t D o h e r t y 43 . 5 % 3 2 . 3 % 2 4 . 3 % - 1 1 . 2 % 36 RE P . M a r y N o l a n - D Di a n e S c h e n d e l RE P . M a r y N o l a n 60 . 1 % 1 5 . 8 % 2 4 . 1 % - 4 4 . 2 % Wi l l R a s m u s s e n Ge r r i t t R o s e n t h a l Jo e l l e D a v i s 38 RE P . C h r i s G a r r e t t - D R o b G a r d i e r R E P . C h r i s G a r r e t t 48 . 3 % 3 0 . 4 % 2 1 . 3 % - 1 8 . 0 % 39 RE P . B i l l K e n n e m e r - R RE P . B i l l K e n n e m e r A li c e N o r r i s 39 . 0 % 3 6 . 7 % 2 4 . 4 % - 2 . 3 % 40 RE P . D a v e H u n t - D D e b o r a h J G e r r i t z e n R E P . D a v e H u n t 46 . 1 % 2 9 . 6 % 2 4 . 2 % - 1 6 . 5 % 41 RE P . C a r o l y n T o m e i - D Hu g o S c h u l z RE P . C a r o l y n T o m e i 56 . 7 % 1 7 . 3 % 2 5 . 9 % - 3 9 . 4 % 42 RE P . J u l e s B a i l e y - D Cl i f f H u t c h i s o n RE P . J u l e s B a i l e y 64 . 4 % 6 . 8 % 2 8 . 8 % - 5 7 . 5 % 43 RE P . L e w F r e d e r i c k - D R E P . L e w F r e d e r i c k 69 . 0 % 6 . 0 % 2 4 . 9 % - 6 3 . 0 % RE P . T i n a K o t e k Ri c h a r d E l l m y e r 45 RE P . M i c h a e l D e m b r o w - D A nn e M a r i e G u r n e y RE P . M i c h a e l D e m b r o w 61 . 7 % 1 5 . 1 % 2 3 . 2 % - 4 6 . 7 % 46 RE P . B e n C a n n o n - D R u s s e l l T u r n e r R E P . B e n C a n n o n 59 . 2 % 1 3 . 3 % 2 7 . 4 % - 4 5 . 9 % 47 RE P . J e f f e r s o n S m i t h - D D e e F l o w e r s R E P . J e f f e r s o n S m i t h 50 . 2 % 2 4 . 9 % 2 5 . 0 % - 2 5 . 3 % 48 RE P . M i k e S c h a u f l e r - D K a y la F l o r a v a n t i RE P . M i k e S c h a u f l e r 44 . 8 % 2 7 . 0 % 2 8 . 2 % - 1 7 . 8 % 49 RE P . N i c k K a h l - D Ma t t h e w W a n d RE P . N i c k K a h l 44 . 4 % 2 8 . 1 % 2 7 . 5 % - 1 6 . 3 % 50 RE P . G r e g M a t t h e w s - D A nd r e W a n g RE P . G r e g M a t t h e w s 42 . 3 % 3 2 . 1 % 2 5 . 6 % - 1 0 . 2 % Jo h n S w a n s o n Pa t r i c k S h e e h a n 52 RE P . S u z a n n e V a n O r m a n - D M a r k J o h n s o n RE P . S u z a n n e V a n O r m a n 39 . 9 % 3 3 . 5 % 2 6 . 6 % - 6 . 4 % 53 RE P . G e n e W h i s n a n t - R R E P . G e n e W h i s n a n t Jo h n H u d d l e 32 . 3 % 4 2 . 5 % 2 5 . 2 % 1 0 . 2 % 54 RE P . J u d y S t i e g le r - D Ja s o n C o n g er RE P . J u d y S t i e g le r 37 . 9 % 3 4 . 2 % 2 7 . 9 % - 3 . 8 % Mi k e M c L a n e Mi k e W e n d e l Ka r l S c r o n c e RE P . B i l l G a r r a r d RE P . G r e g S m i t h Co l l e e n M a c L e o d RE P . B o b J e n s o n Mi c h a e l M a t h i s e n RE P . J o h n H u f f m a n - R R E P . J o h n H u f f m a n Br i t t S t o r k s o n 60 RE P . C l i f f B e n t z - R RE P . C l i f f B e n t z 26 . 7 % 4 9 . 7 % 2 3 . 6 % 2 2 . 9 % TO T A L 42 . 7 % 3 2 . 1 % 2 5 . 1 % - 1 0 . 6 % Bo l d - F i l e d f o r O f f i c e *R e g i s t r a t i o n # ' s a s o f J a n u a r y 2 0 1 0 It a l i c - N o t r u n n i n g f o r r e - e l e c t i o n Ju l i e P a r r i s h 37 RE P . S c o t t B r u u n - R 45 . 0 % 2 4 . 5 % 21.2% 49 . 4 % 24.6% 10 . 9 % -2.4% 37 . 0 % 39 . 4 % 62 . 6 % -51.7%14.6%-3.7%16.4% 45 . 9 % Ch e r y l M y e r s 29 . 5 % 51 39 . 2 % 3 5 . 5 % RE P . G r e g S m i t h - R Je a n A . F a l b o 56 RE P . B o b J e n s o n - R RE P . G e o r g e G i l m a n - R Pe t e W e l l s RE P . B i l l G a r r a r d - R 58 2.8% 39 . 9 % 7.9%28.1% 59 Wi l l B o e t t n e r 36 . 3 % 3 9 . 1 % 2 4 . 6 % 22.4%25.3%26.4%23.5% 44 55 RE P . B r e n t B a r t o n - D 30 . 5 % 28 . 2 % Ki t t y C . H a r m o n RE P . T i n a K o t e k - D 32 . 0 % 57 31 DR I 1 SE N . J e f f K r u s e - R 34 . 4 % 4 2 . 0 % 2 3 . 6 % 7 . 7 % 2 SE N . J a s o n A t k i n s o n - R 30 . 3 % 4 3 . 7 % 2 5 . 9 % 1 3 . 4 % 3 S E N . A l a n B a t e s - D Da v e D o t t e r r e r SE N . A l a n B a t e s 41 . 0 % 3 4 . 7 % 2 4 . 3 % - 6 . 3 % 4 S E N . F l o y d P r o z a n s k i - D Ma r i l y n K i t t e l m a n SE N . 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L a r r y G e o r g e Ti m i P a r k e r 34 . 8 % 4 0 . 7 % 2 4 . 6 % 5 . 9 % 14 SE N . M a r k H a s s - D 45 . 6 % 2 9 . 1 % 2 5 . 3 % - 1 6 . 5 % RE P . C h u c k R i l e y Tr a v i s C o m f o r t 16 S E N . B e t s y J o h n s o n - D Bo b H o r n i n g S E N . B e t s y J o h n s o n 43 . 5 % 3 1 . 2 % 2 5 . 2 % - 1 2 . 3 % 17 S E N . S u z a n n e B o n a m i c i - D St e v e n K i r k p a t r i c k S E N . S u z a n n e B o n a m i c i 47 . 3 % 2 5 . 8 % 2 6 . 9 % - 2 1 . 4 % 18 SE N . G i n n y B u r d i c k - D 52 . 2 % 2 3 . 6 % 2 4 . 2 % - 2 8 . 5 % St e v e G r i f f i t h Ma r y K r e m e r 20 S E N . M a r t h a S c h r a d e r - D A la n O l s e n SE N . M a r t h a S c h r a d e r 42 . 4 % 3 3 . 3 % 2 4 . 3 % - 9 . 1 % 21 SE N . D i a n e R o s e n b a u m - D 60 . 8 % 1 1 . 8 % 2 7 . 4 % - 4 8 . 9 % Ma r c u s W T e m p e y Dw a y n e E R u n y a n 23 SE N . J a c k i e D i n g f e l d e r - D 60 . 5 % 14 . 2 % 2 5 . 3 % - 4 6 . 3 % Ro n M c C a r t y Da v e M o w r y SE N . R o d M o n r o e 25 SE N . M o n n e s A n d e r s o n - D 43 . 3 % 3 0 . 2 % 2 6 . 5 % - 1 3 . 1 % 26 SE N . R i c k M e t s g e r - D Ch u c k T h o m s e n R E P . B r e n t B a r t o n 39 . 6 % 3 4 . 5 % 2 6 . 0 % - 5 . 1 % 27 SE N . C h r i s T e l f e r - R 35 . 2 % 3 8 . 2 % 2 6 . 6 % 3 . 0 % 28 SE N . D o u g W h i t s e t t - R 28 . 9 % 4 7 . 5 % 2 3 . 6 % 1 8 . 6 % 29 SE N . D a v i d N e l s o n - R 31 . 2 % 4 2 . 7 % 2 6 . 2 % 1 1 . 5 % 30 SE N . T e d F e r r i o l i - R 31 . 9 % 4 4 . 0 % 2 4 . 1 % 1 2 . 1 % TO T A L 42 . 7 % 3 2 . 1 % 2 5 . 1 % - 1 0 . 6 % Se n a t e D i s t r i c t s U p i n 2 0 1 0 *R e g i s t r a t i o n # ' s a s o f J a n u a r y 2 0 1 0 BO L D - F i l e d It a l i c - N o t r u n n i n g f o r r e - e l e c t i o n Ro b W h e e l e r SE N . R o d M o n r o e - D 24 47 . 4 % 22 S E N . C h i p S h i e l d s - D S E N . C h i p S h i e l d s 66 . 1 % 19 SE N . R i c h a r d D e v l i n 44 . 0 % Senate Reg. % R Advantage -0.4%27.8% 38 . 2 % -21.4%23.2%-10.4%22.4%-8.2%-57.8%26.6% 33 . 6 % 15 40 . 2 % 3 2 . 0 % SE N . B r u c e S t a r r SE N . R i c h a r d D e v l i n - D 25.6% 20 1 0 S e n a t e 10 S E N . J a c k i e W i n t e r s - R 38 . 6 % Se n a t e Di s t r i c t *R e g i s t r a t i o n % SE N A T O R S RE P U B L I C A N CA N D I D A T E S DE M O C R A T CA N D I D A T E S 8. 3 % 26 . 0 % SE N . B r u c e S t a r r - R 32 2010-2011 Oregon Legislative Timeline September 2010 September 27: House Pre-Session Deadline to Submit Concepts to Legislative Counsel October 2010 October 15: General Election Ballots Are Mailed November 2010 November 2: General Election Day December 2010 December 1: Governor Kulongoski’s Budget Published December 10: Legislative Counsel Must Release all Pre-Session Bills to Sponsors December 15: Pre-Session Revenue Forecast Released December 31: House and Senate Pre-Session Bill Drop Deadline January 2011 January 10: Pre-Session Legislative Meetings Begin February 2011 February 1: 2011 Legislative Session Begins; New Governor Has Until This Date to Publish His Governor’s Recommended Budget 33 34 35 Fact Sheet Onsite Sewage Disposal System Funds (LC 848) What is the Onsite Wastewater Management Program? Water Quality Division Onsite Wastewater Program 165 East 7th Avenue Eugene, OR 97401 Phone: (541) 686-7838 (800) 844-8467 Fax: (541) 686-7551 Contact: Michael Kucinski Randy Trox http://www.oregon.gov/DEQ/ DEQ is a leader in restoring, maintaining and enhancing the quality of Oregon's air, land and water. Over 30 percent of Oregonians dispose of wastewater from their homes and businesses through the use of onsite wastewater treatment systems (septic systems). The siting, design, installation and ongoing operation and maintenance of septic systems are all aspects of wastewater treatment regulated by DEQ. Without this oversight septic systems can fail or malfunction, pollute Oregon’s land and waterways with raw sewage and create public health hazards. DEQ directly manages Oregon’s septic system program – often referred to as the “Onsite Program”- in fourteen counties. These counties are called “direct service counties.” Twenty-two counties manage the program under contract with DEQ and these counties are called “contract counties”. DEQ and the contract counties are also responsible for ensuring that septic tank pumpers have the necessary equipment to safely pump, transport and dispose of the waste from septic systems. This waste is often called “septage.” In addition, DEQ certifies and licenses installers and pumpers, and reviews and approves products such as septic tanks, alternative treatment technologies and alternative drainfield products. What is Legislative Concept (LC) 848? LC 848 authorizes the Environmental Quality Commission, DEQ’s rulemaking and policy board, to adopt rules for DEQ to make grants or loans available for the repair, replacement or decommissioning of septic systems. The funds may also be used for the development of community-based solutions for sewage disposal problems provided those solutions comply with applicable land use regulations. The grants or loans would be based on hardship and would be used to protect public health by helping to fund the repair, replacement or decommission of failing septic systems. LC 848 also establishes a fund (the Subsurface Sewage Disposal System Improvement Fund) that would be used to assist communities in addressing health or water quality problems associated with individual septic systems. A portion of the fund must be dedicated to training programs related to installation, operation, maintenance and technical assistance on individual septic systems. Civil penalties collected from onsite septic system fines would go into the fund, as well as any gifts or grants. Why is LC 848 needed? Oregon’s onsite wastewater management program receives multiple requests for assistance from many communities in Oregon with known pollution problems from septic systems. Currently all revenue comes from application fees for permits, reports and licenses and the program does not have the funding or capacity to engage in these activities, including outreach and education, training, and coordination with communities. In addition, DEQ estimates that 10 percent of existing septic systems around Oregon are in need of repair or replacement to protect human health and the environment. Replacing septic systems can be very expensive (generally starting at $3,000 and can go up to over $20,000) and there are many property owners in Oregon that cannot afford to replace/upgrade the failing systems. Alternative Formats Alternative formats of this document can be made available. Contact DEQ Public Affairs for more information (503) 229- 5696. Last Updated: 8/3/2010 By: Randall Trox 10-WR-002 36