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Dear Friends and Neighbors,
On June 29th at 9:45 pm the 75th Legislative Assembly adjourned. Most would agree that this recently completed session was the most challenging legislators have faced in Oregon since the 1930's. We came into the Capitol in January with significantly declining revenues, a rapidly rising unemployment rate, and in the midst of a global recession.
The legislature spent the first part of session rebalancing the 2007/2009 budget and the rest of the time putting together a balanced budget for the current biennium. Despite facing these budget hurdles every step of the way, we were still able to address many policy issues important to Oregonians that I've detailed below.
Although session is over there is still work to be done. During the interim I will be chairing the Senate Interim Rules Committee. As the Senate Majority Leader I will also be working with my colleagues on developing legislative priorities for the February 2010 session. I'll share details on these activities as they emerge.
Thank you for taking the time to read my newsletter. My contact information is listed at the bottom of this newsletter and I encourage you to stay in touch.
Sincerely,
Richard Devlin
State Senator, District 19
Budget Summary: How to bridge a 4.2 Billion Shortfall
Education, Public Safety, and Human Services take up 94 percent of the state's budget. Because of the precipitous drop we are facing in revenue and the escalating demand for state services during this current budget cycle, almost all areas of state government and state-provided services take budget cuts.
To illustrate our dilemma, in one year, from May 2008 till May 2009, state revenue fell for the 2007 biennium by almost 1.3 billion dollars and for the 2009 biennium by over 3.4 billion dollars. Unemployment doubled in this period. This, along with a combination of other factors, led normal revenues for the state to fall 4.2 billion dollars short of funding existing services. To put this in perspective, our entire adopted budget for the previous biennium was approximately $16 billion. The decline in resources we face is equal to approximately one-fourth of that total budget. This is like seeing your personal income decrease 25 percent, all while the cost of day-to-day living continues to rise.
Put in this financial bind, the Legislature rose to the occasion to put forth a budget package that is fair, reflective of Oregonians' priorities, and protects the most vulnerable. Only through a combination of rainy day funds, education stability funds, federal stimulus funds, approximately $700 million dollars in revenue increases and approximately $2 billion dollars in cuts were we able to balance the budget and protect the most vital state services.
Some details on the budgets we passed in the most important areas of state government include:
During the 2009-2011 budget cycle, K-12 education will receive $6 billion, $5.8 billion of which has already been appropriated and $200 million that will be authorized if our revenue forecasts hold. This budget will allow schools to stay open for a full school year. The state's four year universities will receive $820 million dollars and community colleges will receive $475 million. This will be adequate to maintain most programs, but will require some tuition increases to maintain the quality of higher education programs.
Human Services will receive $4.2 billion, including $541 million in federal stimulus funds dedicated to Medicaid. Actual expenditures in this area will increase due in part to a 12% plus unemployment rate and the associated increase in demand for services. Medicaid eligible recipients have grown by more than 90,000, requests for food assistance has increased one-third, and aid to needy families has grown nearly 25 percent across the state.
For the next biennium, public safety will receive $1.9 billion. This area of the budget funds many services including our courts, corrections and State Police. While this is less than the 2007 budget, deeper cuts to public safety were avoided with the passage of House Bill 3508, which partially delays implementation of Measure 57 - an initiative passed last fall that creates mandatory minimums for certain types of property crimes. Because of our prioritization in the area of public safety, the state will be able to continue 24/7 coverage of state troopers on Oregon highways.
While the cuts we made were not always easy to stomach -especially those affecting core services- they were necessary to balance the budget. I am hopeful that as the economy recovers and state revenue increases we will be able to restore some funding to the programs and services that Oregonians rely on. In the meantime, I am confident that the budget we passed reflects the shared priorities of Oregonians in these challenging times: keeping our schools open, protecting the most vulnerable seniors and children, and making sure our communities remain safe for Oregon families.
2009 Session Accomplishments:
This was not just a session of budget challenges, but also an opportunity to address many issues important to Oregonians. I am particularly proud as the Majority Leader of the Senate that legislators stayed focused on issues that needed to be addressed even in these trying times. Here are a few of the most noteworthy accomplishments from the 75th Legislative Session:
Rebuilding Economic Security for Working Families
- Repairing and modernizing Oregon's aging transportation systems: Keeps commuters and commerce moving by making a historic investment in transportation systems across the state while creating 4,600 jobs each year for five years. (HB 2001)
- Go Oregon! State jobs stimulus plan: Creates jobs in Oregon by funded critical maintenance and energy efficiency projects at state-owned buildings, including community colleges. (SB 338)
- Fighting for tax fairness and preserving vital state services: Raises the $10 corporate minimum tax to ensure that corporations pay their fair share and asks the highest income Oregonians to pitch in a little more to protect vital state services. (HB 3405, HB 2649)
- Strengthening consumer protection: Gives the Attorney General power to go after unscrupulous debt collectors, cracks down on rogue debt management agencies, and provides foreclosure assistance to Oregonians at risk of losing their home. (SB 328, HB 2191, & SB 628)
- Expanding unemployment insurance: Permits low wage workers to get training for better paying jobs while receiving benefits, counts the most recent work experience when determining eligibility, and extends relief for all workers facing an end to benefits. (HB 3483, SB 462)
Education Excellence for All Oregonians
- Ensuring a full school year for Oregon kids: Funds a $6 billion K-12 budget, giving parents and students certainty by preventing drastic cuts in the classroom. (SB 5520, SB 5554)
- Investing in early childhood education: Maintains critical investments to Head Start, helping over 6,500 three- and four-year-olds prepare for success in school. (SB 5519)
- Increasing access to higher education for veterans: Provides in-state tuition to returning veterans and funds Veterans Services Officers at Oregon's universities and community colleges. (HB 2571, HB 2178)
Affordable and Accessible Health Care
- Efficient health care delivery and smart cost containment: Streamlines state health functions and implements reforms to promote electronic health records, develop an end-of-life-care registry, establish evidence-based clinical guidelines, and plan for workforce needs. (HB 2009)
- Expanding access to quality affordable health care: Funds medical coverage for 80,000 children and an additional 35,000 low-income adults. (HB 2116)
- Protecting access to in-home and community-based care: Increases funding for Oregon Project Independence, allowing seniors to stay in their homes. (SB 5529)
Strong and Sustainable Oregon Communities
- Cracking down on meth-related crime: Creates significant obstacles to persons who have long used the sale of stolen scrap metal to finance their drug habits. (SB 570)
- Keeping troopers on patrol: Maintains 24/7 coverage of Oregon's major highways. (SB 3508)
- Housing opportunity and jobs for Oregonians: Significantly increases resources to address Oregon's affordable housing crisis and provides jobs for Oregon's construction sector. (HB 2436)
- Addressing climate change: Creates a low carbon fuel standard to reduce greenhouse gas emissions. (HB 2186)
- Managing our water resources: Continues work towards a statewide water strategy. (HB 3369)
Personal bills sponsored this session:
In addition to working on many of the major legislative accomplishments of the 2009 session I sponsored 85 bills that made it to the Governor's desk. The policy issues for these bills ranged from improving environmental protections to expanding programs for veterans. Below are just a few of the bills that my office worked on this session:
Senate Bill 316, which was brought to me by a constituent, clarifies Oregon law to make sure routine cost of care continues to be covered if a patient enters into a qualifying clinical trial. The bill does not require insurance companies to cover anything they are not already required to pay for. Oregon With this bill, institutions like OHSU will be able to continue to make progress on the fight against cancer, heart disease and other disease that might be cured due to a clinical trial and Oregonians will have more options for seeking potentially life-saving treatment.
During a tour of the state forensic lab it came to my attention that a recent court decision barred forensic scientists from appearing in court by video conferencing during a case being tried by a jury. Senate Bill 380 allows this type of testimony by witnesses with the consent of all parties. Nothing in this measure requires a party to agree to receive testimony via electronic transmission and the judge may still use discretion to deny the request. SB 380 is a cost-saving measure for the state, courts and indigent defense.
I was also able to secure some funding for Senate Bill 701 which establishes a nurse educator loan repayment program. Oregon is facing a serious nursing shortage. One reason for this shortage is because there are not enough nurse educators. Nurses with masters or doctoral degrees, who could pursue teaching positions, tend to take jobs in the nursing field where the salaries are much higher than those of nurse educators. This bill will help nurses with masters or doctoral degrees that become nurse educators pay down their student loans.
Finally, I continued working on protecting victims of domestic violence this session by sponsoring Senate Bill 928. This bill makes it unlawful for an employer to take certain employment action toward individuals who are victims of domestic violence, sexual assault or stalking. It also asks employers to make reasonable safety accommodations to help protect a victim at work. Economic independence is a primary indicator of whether a victim will be able to maintain safety from abuse. Senate Bill 928 will increase that economic security.
Interim Contact Information
During the interim I will continue to maintain staff in my Salem office. Please feel free to write or call with your comments or questions. Our contact information will be as follows:
Senator Richard Devlin
900 Court Street S-223
Salem, OR 97031
(503) 986-1719
sen.richardevlin@state.or.us
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