71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
HA to HJR 33
 
LC 3076/HJR 33-6
 
                       HOUSE AMENDMENTS TO
                    HOUSE JOINT RESOLUTION 33
 
              By COMMITTEE ON GOVERNMENT EFFICIENCY
 
                             May 10
 
  Delete lines 2 through 10 of the printed joint resolution and
insert:
  ' Whereas the citizens of Oregon recognize that the current
state tax structure is reliant on state income taxes; and
  ' Whereas a downturn in Oregon's economy will decrease income
tax revenues and threaten funding of education, public safety,
health care and other essential government services; and
  ' Whereas eliminating or curtailing essential government
services to citizens in need during times of less economic growth
further compounds the downturn of the economic cycle; and
  ' Whereas increasing taxes or fees is an impractical way of
achieving stable essential government services during times of
less economic growth; and
  ' Whereas creation of an economic security fund or reserve fund
for the State of Oregon would benefit the people of the state by
stabilizing funding for education and other essential services
and lessening the need for drastic cuts to other essential
services or for increases in fees or taxes; and
  ' Whereas the establishment of a reserve fund would help
maintain the bond rating for the State of Oregon and protect the
investments of the taxpayers and citizens; and
  ' Whereas 45 other states have established reserve funds as
security against an economic downturn; and
  ' Whereas an economic security fund will enhance Oregon's
overall economic stability; and
  ' Whereas such a fund will enable the Governor and the
Legislative Assembly on behalf of the people of Oregon to adjust
to downturns in the economy without drastic budget reductions or
tax increases; and
  ' Whereas the Economic Security Fund will derive revenues as
appropriated by the Legislative Assembly and approved by the
Governor; now, therefore,'.
  Delete line 12 and insert:
  '  { +  PARAGRAPH 1. + } The Constitution of the State of
Oregon is amended by creating a new section 15 to be added to and
made a part of Article IX, such section to read:
  '  { +  SECTION 15. (1) The Economic Security Fund is
established in the State Treasury, separate and distinct from the
General Fund.
  ' (2) The Economic Security Fund shall consist of:
  ' (a) Moneys appropriated or transferred to the Economic
Security Fund by the Legislative Assembly; and
  ' (b) Interest and other earnings on moneys in the fund.
  ' (3) If the Economic Security Fund has a balance at the
beginning of a biennium that exceeds five percent of the General
Fund appropriations for the prior biennium:
  ' (a) Interest earnings from the Economic Security Fund shall
be transferred to the General Fund; and
  ' (b) The Legislative Assembly may not appropriate or transfer
moneys to the Economic Security Fund.
  ' (4) The Legislative Assembly by law may increase the
percentage requirement of subsection (3) of this section and, if
the percentage requirement has been increased, may decrease the
requirement. However, the Legislative Assembly may not decrease
the percentage requirement below five percent.
  ' (5) Except as provided in subsection (6) of this section,
moneys may be appropriated from the Economic Security Fund only
if:
  ' (a) The Legislative Assembly finds one of the following:
  ' (A) That the last quarterly economic and revenue forecast for
a biennium indicates that moneys available to the General Fund
for the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
  ' (B) That there has been a decline for two or more consecutive
quarters in seasonally adjusted nonfarm payroll employment; or
  ' (C) That a quarterly economic and revenue forecast projects
that revenues in the General Fund in the current biennium will be
at least two percent below what they were projected to be in the
revenue forecast on which the legislatively adopted budget for
the current biennium was based; and
  ' (b) The proposed appropriation is approved by three-fifths of
the members serving in each house of the Legislative Assembly.
  ' (6) Moneys may be appropriated from the Economic Security
Fund if the Governor declares an emergency and the proposed
appropriation is approved by two-thirds of the members serving in
each house of the Legislative Assembly.
  ' (7) The Legislative Assembly may by law prescribe the
procedures to be used and identify the persons required to make
the forecasts described in subsection (5) of this section. + }
 
  '  { +  PARAGRAPH 2. + }  { + The amendment proposed by this
resolution shall be submitted to the people for their approval or
rejection at the next regular general election held throughout
this state. + } ' .
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