Deal set: Kitzhaber calls special session

SALEM, Ore. (AP) — Gov. John Kitzhaber is calling Oregon lawmakers into special session to vote on measures affecting taxes, public-employee pensions and the regulation of genetically modified crops.

Kitzhaber said Wednesday he’ll call lawmakers to Salem on Sept. 30. The announcement caps months of negotiations with House and Senate leaders from both parties.

Officials say the deal includes further cuts in retirement benefits for government employees, saving millions for state and local governments, including school districts. It also would raise new revenue, and certain small businesses would see a tax cut.

To sweeten the pot for Republicans, who are reluctant to vote for higher taxes, the deal also would allow a vote on a bill prohibiting local governments from regulating genetically modified crops.

However, it’s not yet clear whether the package has enough support to pass the Legislature.

State Sen. Tim Knopp, R-Bend, said the governor has not yet made legislative drafts available, so he has a wait-and-see stance at this point.

“I will reserve comment until we know all the details,” Knopp told NewsChannel 21. “While legislative leaders have agreed, votes have not been committed by legislative members or the (House GOP) caucus.”

—

Legislative leaders’ statement:

Legislative Leaders Comment on Mahonia Hall Discussions, Compromise Framework

SALEM- Oregon Senate President Peter Courtney (D-Salem), House Speaker Tina Kotek (D-Portland), Senate Republican Leader Ted Ferrioli (R-John Day), and House Republican Leader Mike McLane (R-Powell Butte) today issued the following joint statement on their work to craft a compromise framework during talks with Governor John Kitzhaber at Mahonia Hall:

“After a lot of hard work and compromise we have arrived at a framework to present to our colleagues. We have made progress and we are moving forward. We all have much invested in this effort to strengthen Oregon’s future.

“There is still hard work ahead to determine whether we have the votes from each caucus needed in order to pass this proposal, but we are making progress.”

—

Governor’s news release:

Governor Kitzhaber, Legislative Leaders Come to Agreement on Additional School Funding, PERS Reform, Assistance for Small Business and Working Families

Governor to call a Special Session September 30

(Salem, OR) —Governor Kitzhaber and legislative leaders have agreed on a framework to boost education funding by $140 million to restore lost school days and provide tuition relief for Oregon students this school year. The agreement combines cost savings from additional PERS reforms and new revenue to fund education, mental health and senior services, and targeted tax relief for small business owners and working families. The Governor will call the Legislature into special session on September 30 to act on the framework in time to allow schools to invest this year.

“This is the Oregon way,” said Governor Kitzhaber. “I applaud my legislative colleagues on both sides of the aisle for once again coming together for the benefit of all Oregonians. This framework offers a balanced approach that will allow for a sustained reinvestment in Oregon education and other critical services, like mental health, over the long term. We’re delivering for Oregon’s children, for Oregon’s economy, for Oregon’s future.”

Elements of the framework agreement include:

INVESTMENTS 2013-15 – $211 million

Boosts School Funding– $100 million in new revenue for K-12 Reinvests in Higher Education – $40 million for community college & university tuition relief Supports Working Families – $12 million expansion of the EITC (from Ending Fund Balance beginning January 1, 2014) Dedicates Funding for Mental Health – $20 million dedicated from 10 cent cigarette tax Supports Oregon’s Seniors – $41 million for senior programs

PERS

Improves the Financial Stability of PERS – $4.6 billion in overall reduction of the unfunded actuarial liability when combined with SB 822 with further adjustments to the PERS COLA. Reduces PERS COLAwhile mitigating impacts on lower-wage workers. Additional PERS transparency and confidence building measures.

REVENUE – 2013-15

$244 million in new revenue for 2013-15 biennium Includes Small and Family Business Tax Relief by lowering rate on pass-through business active income, and a Fair Trade Tax Treatment for certain agricultural exporters (2013-15 phase-in totaling $43 million)

Other provisions

To allow consideration of statewide GMO policy, agreement to preempt local bans (SB 633) except in counties where local ordinances have already qualified for elections. Governor to convene work group to address GMOs at the state level.
The Governor will issue a letter stating he will sign none of the bills unless all bills make it to his desk.

—

News Release from: Ore. School Boards Assn.

OSBA WELCOMES SPECIAL SESSION ON PERS REFORM, REVENUE

Gov. Kitzhaber’s calling of a special session on reform of the Public Employees Retirement System holds promise for students across the state, said Betsy Miller-Jones, executive director of the Oregon School Boards Association.

Miller-Jones said the proposed PERS reforms, coupled with a revenue package, will create opportunities for districts to rehire teachers and restore lost school days. If the package is approved at a Sept. 30 special session, the state’s unfunded pension liability would be reduced by billions of dollars.

“Across the state, school board members have consistently told us that PERS relief is pivotal in turning around the funding outlook for Oregon schools,” she said. “This is our chance to build on the school funding momentum the Legislature created this session.”

Miller-Jones credited Kitzhaber and legislative leaders of both parties for persevering in their search for a compromise.

“Sept. 30 now stands as a turning point for the future of our public schools,” she said. “It’s an opportunity to make a lasting change for our children and our state.”

OSBA is a member services agency for nearly 1,400 volunteer and locally elected school board members in school districts, education service districts and community colleges. It also provides services to charter schools and their boards.

OSBA has joined with business and parent/student groups to support PERS reform. The coalition’s website can be found at www.fixpersnow.org