74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
SA to SB 5516
 
LC 9516/SB 5516-3
 
                      SENATE AMENDMENTS TO
                        SENATE BILL 5516
 
               By COMMITTEE ON FINANCE AND REVENUE
 
                            April 17
 
  On page 1 of the printed bill, after line 4, insert:
  ' Whereas an effective long-term capital investment program is
critical to the state's overall economic success; and
  ' Whereas to achieve the optimal level of investment the state
must weigh the benefits of a more productive state government and
overall labor force resulting from additional capital with the
risks of higher debt levels and the impact of debt service
payments on the state's operating budget; and
  ' Whereas the Legislative Assembly recommends that projects
that leverage private investment and encourage overall economic
development be given higher priority; and
  ' Whereas when setting the state's overall debt capacity level,
the risks to future revenue streams must be properly considered;
and
  ' Whereas for debt supported by the General Fund, the
Legislative Assembly recommends that debt service payments not
exceed five percent of projected General Fund revenue, and in
order to account for the historic volatility of Oregon's General
Fund revenue stream, the Legislative Assembly recommends that,
for purposes of calculating the General Fund debt capacity, 90
percent of the most recent General Fund revenue forecast be used,
which for the 2007-2009 biennium is a General Fund supported debt
capacity level of $658,206,000; and
  ' Whereas for purposes of determining overall debt supported by
the State Lottery, the Legislative Assembly recommends that
projected lottery revenue exceed debt service payments by no less
than four times the amount of those payments; and
  ' Whereas to account for long-term structural risks to future
lottery revenue, the Legislative Assembly recommends that, for
purposes of calculating lottery debt capacity, 75 percent of the
most recent lottery projection be used, which for the 2007-2009
biennium is a lottery supported debt of no more than
$342,875,000; and
  ' Whereas the state's capital investment program would be
enhanced by the systematic development of a long-term strategic
capital budget plan; now, therefore,'.
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