2009 Legislative Session in Review OASBO Summer Conference Eagle Crest Resort Friday July 31, 2009

OSBA Legislative & Public Affairs Team Tricia Yates, Associate Executive Director David Williams, Legislative & Public Affairs Specialist Lori Sattenspiel, Legislative & Public Affairs Specialist Jenny Fedler, Interdepartmental Assistant

Political Context November 2008 General Election Outcome (Candidates & Measures) 2009 General Legislative Assembly Senate: 18 Democrats, 12 Republicans House: 36 Democrats, 24 Republicans Governor: Democrat National Fiscal Crisis

OSBA Priorities Education Funding Outcome: Moderate Success Outcome: Moderate SuccessAccountability Outcome: Mixed Outcome: Mixed Capital Improvement Outcome: Success Outcome: Success

Education Funding biennial budget Fiscal crisis forced budget rebalance K-12 reduction limited to $121 million ($67 M in December, $54 M in March) biennial budget Overall general fund shortfall of $4.4 billion from Essential Budget Level $6.0 billion ($5.8 B in SSF + $200 million in automatic triggered reserves) Override of Governor’s Veto of K-12 Budget

Education Funding: Revenue Package HB 2649: Increases Personal Income Tax For tax years 2009, 2010 & 2011: 10.8% for households between $250,000 & $500,000; 11% above $500,000. For tax years 2012 and beyond: 9.9% for all households above $250,000. HB 3405: Increases Corporate Taxation Minimum tax for C-Corps. increased from $10 to a sliding scale from $150 to $100,000 on corps. with OR sales over $100 mil.; S-Corps from $10 to $150. For tax years 2009 & 2010, new tax rate of 7.9% for all corp. income above $250,000; lowers rate to 7.6% for 2011 & 2012; raises income threshold to $10 million for tax years 2013 and beyond.

Accountability Pre-Session coalition work to re-cast discussion on accountability Successful Conversation about Legislative Role in K-12 accountability SB 441: Red-Tape/Paperwork Reduction (did NOT pass)

Capital Improvement HJR 13: Constitutional Revision Expands constitutional definition of capital expenditures for local bonds Allows state to issue general obligation bonds for K-12 capital construction HB 2013: School Facilities Task Force HB 2014: Const. Excise Tax Fixes

Other Legislation of Note SB 30: Ethics Changes (also HB 2518) SB 311: Tort Claim Limit Increases SB 637: Integrated Pest Mgmt SB 767: Virtual Charter School Review SB 897: PERS Omnibus Bill HB 2062: Educator Sexual Misconduct HB 2867: Public Contracting HB 3056: Urban Renewal Reform HB 3401: PERS Side Accounts

Legislation in Detail: HB 2867: Public Contracting Effective Date: January 1, 2010 Impacts ALL districts New AND Renewed contracts Contracts under $250,000 are exempt Feasibility Studies & Cost/Benefit Analyses Imposes stricter standards Proscribed process for studies Reduced ability to contract solely on the basis of lower wages and benefits New stringent standards for bidders (including past performance, delays & cost overruns)

Legislative Challenges (Bills did NOT pass) SB 555: Transportation Grant Funding Cut SB 574: ESD Merger/Governance Change HB 2831: PECBA Reform/Repeal of Expedited Bargaining SB 903: Mandatory Board Member Training Other Unfunded Mandates (Year-Round school, mandated full day K, foreign language instruction, other curricular mandates)

Unprecedented Relationship Building Legislative Leadership Ways & Means Co-Chairs Governor’s Education Staff Education Coalition General Fund Budget Coalition

Your Advocacy in Action: 2009 Legislative Session Case Studies: Budget Budget Rebalance Cut reduced from $105 M to $54 M Letters & Calls from education advocates Biennial Budget Reduced by 50% the amount of funding tied into a triggered appropriation $5.6 B + $400 M became $5.8 B + $200 M Override of Governor’s Veto

Your Advocacy in Action: 2009 Legislative Session Case Studies: Policy SB 574: ESD Mergers/Governance Would have merged 20 ESDs down to 13 Would have eliminated all elected ESD boards Bill was defeated with final advocacy push SB 555: Transportation Grant $ Cut Would have cut transportation reimbursement from 70/80/90% down to flat 63% Joint Call to Action with SB 574 defeated both measures in waning days of the session.

Looking Ahead: Advocacy Opportunities Your Continued Legislative Advocacy Thank your legislators Stay in touch with your legislators Interim Legislative Activities Virtual Charter Schools Task Force K-12 School Facilities Task Force House Education Comm.: Special Ed

Looking Ahead: Advocacy Calendar Potential January Referenda on Shared Responsibility Revenue Package 2010 Supplemental Legislative Session 2010 May Primary Election: HJR November General Election: Candidates & Ballot Measures Advocacy is Continuous!

Questions & Answers For more information consult the OSBA/COSA 2009 Legislative Summary, contact us at or visit LegNAN at