Be Engaged: State public budget hearings

The Oregon Legislature’s Joint Ways and Means Committee has scheduled a series of public hearings about the state budget.

Members of the public will have the opportunity to testify at each of these scheduled hearings regarding their perspectives and priorities around the state budget.

The series of hearings will start on April 8, at Portland Community College- Sylvania Campus. Members of the committee will take public testimony from community members from 10 a.m to 12 p.m.

To testify, members of the public will be able to access sign up links on the Ways and Means Committee’s webpage on OLIS, the legislature’s website. Sign up links will be available online in the next week.

Public hearings schedule

10 a.m. - 12 p.m. Saturday, April, 8 Portland

Portland Community College - PAC Auditorium, Sylvania Campus

12000 SW 49th Ave, Portland

5 p.m. - 7 p.m. Friday, April 14 Newport

Newport Performing Arts Center

777 W Olive St, Newport

5 p.m. - 7 p.m. Friday, April 21 Roseburg

Umpqua Community College

1140 Umpqua College Rd, Roseburg

5 p.m. - 7 p.m. Friday, April 28 Ontario

Four Rivers Cultural Center

676 SW 5th Ave, Ontario

(Ontario is in the Mountain Time Zone.)

All hearings will be open to the public and members of the press.

Background

According to the Oregon Legislative Fiscal Office, the tentative budget for the 2023-25 biennium will change with each of the remaining quarterly economic and revenue forecasts that will occur before the start of the next biennial budget period, as well as any legislative actions that take place prior to that time.

It should also be emphasized that the tentative budget, as a current service level projection, only represents an estimate of the costs of continuing currently approved programs for the next two-year budget period; it does not represent a guarantee of funding for any agency or program or include costs for any program currently not included in the state’s budget.

The current tentative budget for the 2023-25 biennium assumes the following statewide factors:

• Revenue growth is based on the Office of Economic Analysis (OEA) December 2022 economic and revenue forecast.

• State personal services growth for ongoing positions is projected at approximately 6% for the biennium, including step increases, roll-up of current collective bargaining agreements and management salary packages, health benefit costs, Pension Obligation bond payments, an increase in the advisory PERS rate, and the state’s Paid Family and Medical Leave contribution.

• Standard biennial inflation of 4.2% for services and supplies, 6.2% for medical costs, and 8.8% for non-state employee personnel costs (contract providers).

• Debt service payments are built into agency budgets based on current repayment schedules, which increases the tentative budget by a combined $241.9 million General Fund and Lottery Funds.

• A projected $50 million General Fund and $15 million Lottery Funds is included for potential bond issuances early in the 2023-25 biennium.

• An Emergency Fund of $50 million General Fund is included; no special purpose appropriations to the Emergency Board are assumed except for $14 million for fire severity resources.

• A compensation adjustment of $349.9 million General Fund (and a reserve of $7.9 million Lottery Funds) is included primarily to address future collective bargaining agreements; the General Fund is for state employees ($329.9 million) and non-state employees ($20 million), or home health care workers.

• An ending balance of 1% of expenditures is assumed due for the Rainy Day Fund deposit requirement and a Lottery Funds balance of $25 million to mitigate revenue fluctuations.

Budget projections

Tentative budget projections for 2023-25 program area expenditures also assume the following:

The State School Fund (SSF) current service level budget is estimated to grow by 2.3% over the

2021-23 legislatively approved level, increasing to $9.5 billion total funds. Combined General Fund and Lottery Funds account for $8.737 billion and the remainder is supported with Corporate Activities Tax (CAT), marijuana tax, and other revenues. This growth is based on:

The 2023-25 estimated PERS weighted-average net contribution rate for school and education service districts of 15.16% (July 2022), which factors in side account contributions and the portion of employee contributions redirected to fund pension benefits.

The Legislative Revenue Office current estimate of 2023-25 local revenues.

• Biennial payroll growth for school district employees of 5.45%.

• Increases in health benefits of 3.4% each year as outlined in ORS 243.866.

• The estimated CSL for Ballot Measure 98 programs totals $310.2 million total funds ($172.2 million General Fund and $137.9 million of CAT revenues), which is based on the statutorily required formula. These funds are distributed to school districts for Career and Technical Education (CTE), college-level education opportunities or accelerated learning, and drop-out prevention.

• The 2023-25 current service level budget for state support of Public Universities is estimated to grow by a combined $51.2 million General Fund and Lottery Funds to $1.6 billion, including an increase of $58.2 million in debt service payments on behalf of public universities. State support for Community Colleges is estimated to grow by $73.3 million General Fund and Lottery Funds to $868.8 million, including an increase of $9.7 million in debt service payments on behalf of community colleges.

• Human services mandated caseload increases for the 2023-25 biennium are based on the Fall 2022 forecasts for the Oregon Health Authority and the Department of Human Services.

• Oregon Health Plan costs are inflated 3.4% per year, consistent with the state’s federal waiver agreement over the last several years.

• Full implementation of the Healthier Oregon Program across all age categories by 2023-25 biennium.

• Mandated correction populations for the 2023-25 biennium are based on the DAS Office of Economic Analysis October 2022 forecasts for the Department of Corrections and Oregon Youth Authority.

• General Fund needed to backfill 2021-23 one-time funds or account for programs that change funding sources between the two biennia is projected to total $2 billion, including:

• Restoration of $1.3 billion General Fund to the Department of Corrections, Oregon Youth Authority, and Oregon State Hospital for the one-time American Rescue Plan Act (ARPA) State Fiscal Recovery Funds and CARES Act Coronavirus Relief Funds (CRF) used to support the provision of public safety services in 2021-23.
• An increase of $926.4 million General Fund in the Human Services program area for reductions in Federal Medical Assistance Percentage (FMAP) rates due to the anticipated end of the COVID-19 public health emergency and annual adjustments.

• The shift of $468.1 million General Fund to local property tax revenues for the State School Fund and Community College Support Fund as estimated property taxes grow faster than estimated General Fund sources.