Budget narrative LEGISLATIVE ACTION - Oregon.gov

Budget Narrative

2021-23 Governor’s Recommended Budget 1 107BF02

LEGISLATIVE ACTION

Summary Legislative Actions Summary Legislative Action Related to Biennium SB 5043 – A Financial Administration - Primary Agency Budget 2019-21 HB 5029 – A Financial Administration - Lottery Allocations 2019-21 HB 5050 – A Financial Administration - Emergency Board 2019-21 HB 5030 – A Lottery Bonds - Issuance of Lottery Revenue Bonds 2019-21 SB 5723 August 2020 Special Session 2019-21 & 2021-23 E-Board Certificate December 2020 E-Board 2019-21

Budget Narrative


HB 5043 A

80th Oregon Legislative Assembly - 2019 Regular Session

HB 5043 A BUDGET REPORT and MEASURE SUMMARY

Joint Committee On Ways and Means

Action Date: 06/07 /19 Action: Do pass with amendments. (Printed A-Eng.)

House Vote Yeas: 9 - Gomberg, Holvey, Mclain, Mclane, Nosse, Piluso, Rayfield, Smith G, Stark

Senate Vote Yeas:

Exe: Prepared By: Reviewed By:

10- Beyer, Frederick, Girod, Heard, Johnson, Manning Jr, Roblan, Steiner Hayward, Thomsen, Wagner 1 - Hansell Linnea Wittekind, Department of Administrative Services

Matt Stayner, Legislative Fiscal Office

Water Resources Department 2019-21

This summary has not been adopted or officially endorsed by action of the committee.

Carrier: Rep. Reardon

HB 5043 A

1 of 8

Budget Narrative


Budget Summary*

General Fund Lottery Funds Debt Service

Other Funds Limited

Federal Funds Limited

Total

Position Summary Authorized Positions

Full-time Equivalent (FTE) positions

111 Includes adjustments through December 2018

Excludes Capital Construction expenditures

Summary of Revenue Changes

$

$ $

$ $

2017-19 Legislatively

Approved Budget111

33,503,512

3,953,969

66,864,861

1,905,917

106,228,259

170

167.59

2019-21 Current Service

Level

$ 34,710,206

$ 8,493,320

$ 44,268,986

$ 876,734

$ 88,349,246

169

164.51

2019-21 Committee Committee Change from 2017-19 Leg. Recommendation Approved

$ Change % Change

$ 37,158,507 $ 3,654,995 10.9%

$ 8,493,320 $ 4,539,351 114.8%

$ 55,415,794 $ (11,449,067) (17.1%)

$ 876,734 $ (1,029,183) (54.0%)

$ 101,944,355 $ (4,283,904) (4.0%)

177 7

171.79 4.20

The Water Resources Department (WRD) operations are funded, generally, from a combination of General Fund and fees for water right and storage transactions, licensing, and permits. Of the total available revenues ant icipated in the 2019-21 biennium, General Fund accounts for

36.4 percent. Other Funds comprise 54.4 percent, but roughly $42 million of the $55.4 million in Other Funds resources are from Lottery Bond

proceeds carried forward into the 2019-21 biennium from issuance in prior biennia. Lottery Funds, equaling 8.3 percent of total funding, are exclusively for debt service. Federal Funds revenues are specific to cooperative studies and monitoring in addition to providing some position

support.

Summary of Natural Resources Subcommittee Action The Department administers laws governing surface and groundwater resources . The goal is to balance the use of the state's water among current and future generations of Oregonians. WRD processes transfers of water rights, permits, certificates, and water rights applications;

administers hydroelectric relicensing; inspects construction and maintenance of wells and dams; provides technical information and analysis on surface water and groundwater availability; adjudicates pre-1909 and federal reserved water rights; and negotiates Native American reserved

water rights.

HB 5043 A

2 of 8

Budget Narrative


The Subcommittee recommended a total funds budget of $101,944,355, including $37,158,507 General Fund, $8,493,320 Lottery Funds for debt

service, $55,415,794 Other Funds expenditure limitation, $876,734 Federal Funds expenditure limitation, and 177 positions (171. 79 FTE). The

total funds budget is a 4.0 percent decrease from the 2017-19 biennium Legislatively Approved Budget.

Administrative Services Division This program provides fiscal , human resources, and business support services for the daily operation of the Department. In addition, the Division provides contract assistance to the Oregon Watershed Enhancement Board and the Department of State Lands . The Subcommittee

recommended a total funds budget of $57,462,529 and 13 positions (12.50 FTE) . The Subcommittee also recommended the following packages:

Package 101, Place-Based Planning Community Support. This package provides a General Fund appropriation of $550,000 to provide financial and technical assistance to the four planning groups participating in a pilot, place-based integrated water resources planning project. The funding is provided in conjunction with the four-year extension of the statutory sunset of the program contained in House Bill 2084. The

participating basins are: Upper Grand Ronde, Lower John Day, Malheur Land, and the Mid-Coast. The funding will be used by the Water Resources Department and the participating groups to complete the planning phase and transition to plan implementation.

Package 112, Continuing Payroll Shared Services. This package provides Other Funds expenditure limitation of $143,208 and authorizes the establishment of a permanent Accounting Tech 3 position (1.00 FTE). During the initial pilot phase of the shared payroll services project, the

position was limited duration. The shared payroll team is currently supporting 550 employees in six agencies.

Package 801, LFO Analyst Adjustments. This package re-establishes $11.0 million Other Funds expenditure limitation phased out of the Department's budget at the current service level for the expenditure of bond proceeds for Umatilla basin water supply projects anticipated to be distributed in the 2017-19 biennium, but were not. This will allow the Department to distribute the funding in the 2019-21 biennium instead.

Field Services Division This program processes water rights transfer and permit amendment applications, provides planning assistance, inspects the construction and

maintenance of wells and dams, and provides technical information on surface water and groundwater availability . The Subcommittee

recommended a total funds budget of $15,045,005 and 61 positions (58.71 FTE).

Technical Services Division The Technical Services Division provides scientific data and technical analysis for the Department's water right processing, water distribution and management, and water resources development activities. The Division's programs include dam safety, well construction and compliance,

information services, surface water hydrology, and groundwater hydrology. The Subcommittee recommended a total funds budget of

$15,500,739 and 51 positions (50.28 FTE). The Subcommittee also recommended the following packages:

HB 5043 A

3 of 8

Budget Narrative


Package 102, Groundwater Data. This package includes a $1,659,740 General Fund appropriation and authorizes the establishment of six

permanent positions (5.28 FTE) for the evaluation of groundwater basin studies in cooperation with the U.S. Geological Society and the Oregon

Department of Geology and Mineral Industries. Each basin study takes between five to six years to complete. This package will double the

Department's capacity to conduct the studies. In addition to the funding included in this package, the Department will be using existing Other

Funds expenditure limitation of $300,000 for cost-sharing expenses related to the studies from exempt well use fee funds.

Package 112, Continuing Payroll Shared Services. For the Technical Services Division, this package provides Other Funds expenditure limitation

of $3,600 for IT equipment needed to support the shared payroll services program in the Administrative Services Division.

Water Rights Service This program evaluates and acts upon applications for new in-stream and out-of-stream water rights. It also administers water rights

certification, adjudication, hydroelectric relicensing, water rights policy development, and permit extension evaluation. The adjudication section

is responsible for ruling on pre-1909 and federal reserved water rights, and also for the negotiation of Native American reserved water rights. The Subcommittee recommended a total funds budget of $8,853,268 and 38 positions (37.17 FTE).

Director's Office This program includes strategic planning and support for the Water Resources Commission, alternative dispute resolution, contested case

hearings, administrative rules coordination, legislative coordination, and citizen response and information services. The Subcommittee

recommended a total funds budget of $5,082,814 and 14 positions (13.13 FTE) . The Subcommittee approved the following Budget Note:

Budget Note: The department is directed to compile information regarding actions that the agency has taken that resulted in the

agency being party to a contested case hearing or legal action since 2015. This includes past, current, and pending

items as of July 1, 2019. For each case, the department must identify the legal question being addressed, the underlying statute(s) or administrative rule(s) that were, or are, the basis for the action that the agency undertook,

and the fundamental basis or reasoning for the dispute against the agency's actions. If a statute or administrative rule

is identified as being foundational to actions taken by the agency that are subject to multiple contested cases or other legal proceedings, the agency must provide a statement regarding the purpose for the statute or rule, what the agency

is attempting to achieve by taking action on the statute or rule, and how future litigation regarding those actions might

be avoided in the future. The agency is directed to report this information to the Joint Committee on Ways and Means in a format approved by the Legislative Fiscal Office by January 1, 2020.

HB 5043 A

4of 8

Budget Narrative


The Subcommittee recommended the following package:

Package 101. Place-Based Planning Community Support. This package provides a $238,561 General Fund appropriation and authorizes the

establishment of a limited-duration Natural Resources Specialist 4, Planning Coordinator position (1.00 FTE) to help support planning groups participating in a pilot, place-based integrated water resources planning project. The position is provided in conjunction with the four-year

extension of the statutory sunset of the program contained in House Bill 2084. The participating basins are; Upper Grand Ronde, Lower John

Day, Malheur Land, and the Mid-Coast.

Summary of Maximum Supervisory Ratio The Subcommittee reviewed the agency's proposed Maximum Supervisory Ratio of 1:8.

Summary of Performance Measure Action See attached "Legislatively Approved 2019-2021 Key Performance Measures."

HB 5043 A

5 of 8

Budget Narrative


DETAIL OF JOINT COMMITTEE ON WAYS AND MEANS ACTION

Water Reso urces De partment Lin nea Wittekind -- 503-37 8-3108

DESCR IPTION

2017- 19 Legisla t ively Approved Bu dget at Dec 2018 • 2019-21 Cu rre n t Se rvic e Le v e l (CS L)*

SUBCOMMI TTEE A DJUST MENTS {fro m CSL) SCR 0 10-01 - Ad ministrative Serv ices Package 10 1: Place-Based Pla nnin g Community Support

Specia l Payments (6085 Oth er Specia l Paymen ts )

Package 112: Contin uing Payroll Sh ared Services Pers on ,1 1 Service s Services an d Suppli es

Pa ckage 801: LFO An a lyst Adjustments Specia l Paym e nt s (6085 O t h er Specia l Paym e n ts)

SCR 010-04 - Te chn ica l Services Package 102: Groundwa t e r Data, Managem e nt & Prot ectio n

Pers on a l Se rvice s Services and Su pplies

Package 11 2: Continu ing Payroll Sh ared Services Se rvic e s a nd Supp lie s ( IT Ex penda ble P roperty)

SCR 010-0 7 - Direct o r 's Office Package 10 1 : Place-Based Pla nn in g Community Su pport

Pe rson a l Servi ces Services and Su p p li e s

TO TAL ADJUST MENTS

SUBCOMMI TTEE RECOMMENDAT ION *

% Ch a nge fro m 20 17 - 1 9 Leg Approved Bu dget % Cha n g e fro m 2019-21 Current Se rvice Le v e l

*Excludes Cap ita l Constructio n Expendit ures

$ $

$

$

GENERAL LOTTERY FUND FUNDS

33,503,512 $ 3,953,969 34 , 7 10,206 $ 8,493,320

550,000 $

$ $

$

1,15 9,740 $ 500,000 $

$

214,546 $ 2 4 ,015 $

2,448,301 $

3 7 ,158,507 $ 8,493,320

1 0.9% 114.8% 7 .1% 0 .0%

$ $

$

$ $

$

$ $

$

$ $

$

$

OTH ER FU NDS FEDERA L FUNDS

LIMI T ED NON LIMIT ED LIM ITED NONLIMIT ED

6 6,864,86 1 $ $ 1,9 05,9 17 $ 4 4,268,986 $ $ 87 6,734 $

$ $ $

132,9 2 6 $ $ $ 10,282 $ $ $

11,000,000 $ $ $

$ $ $ $ $ $

3,600 $ $ $

$ $ $ $ $ $

11,146,808 $ $ $

55,415,7 94 $ $ 87 6, 734 $

(17 .1%) 0.0% (54.0%) 0.0% 25.2% 0.0% 0 .0% 0 .0%

TOTA L ALL

FUNDS

$ 106,228,259 $ 88,349,246

$ 550,000

$ 132,9 2 6 $ 10,282

$ 11,000,000

$ 1,159 , 740 $ 500,000

$ 3,600

$ 214,54 6 $ 24 ,015

$ 13,595,109

$ 101,9 44,35 5

(4.0%) 15 .4%

POS FT E

170 167.59 169 1 6 4.51

1.00

5 .28

1.00

8 7.28

177 1 7 1.7 9

4. 1% 2.5% 4 .7% 4 .4%

HB 5043 A

6of 8

Budget Narrative


Legislatively Approved 2019- 2021 Key Performance Measures

Pgency. Water Resources Department

Mission Statement:

Published: 6/6/2019 8:54:15 AM

To se..e the public by practicing and promoting responsible water management.

Legislatively Approved KPMs

1. FLOW RESlDRA TION - Percent of watersheds that need flow restoration for fish that had a significant quantity of water put instream through WRD administered programs.

2. PROTECTION OF INSTREAM WATER RIGHTS - Ratio of regulatory orders issued to protect senior water rights when the senior water right is an inst ream right to all regulatory orders issued to protect se~or water rights.

3. MONllDR COIVIPLIANCE - Percent of total regulatory actions that found water right holders in compliance Mth water rights and regulations.

4. STREAM FLOW GAGING - Percent change from 2001 in the number of WRD operated or assisted gauging stations.

5. ASSESSING GROUNDWATER RESOURCES - Percent change from 2001 in the number of wells routinely monitored to assess ground water resources.

7. EQUIP CITIZENS WITH INFORMATION - Number of times water management related data was accessed through the WRDs Internet site.

8. NUMBER OF SIGNIFICANT DIVERSIONS WITH MEASUREMENT DEVICES INSTALUED - To fully implement the Water Resources Commission's 2000 Water Measurement Strategy

9. PROIVIOTE EFFICIENCY IN WATER MANAGEMENT AND CONSERVATION PLAN REVIEWS - Percent of water management and conseMltion plans that recei-.ed a preliminary reliewwithin 90 days of plan submittal.

10. PROMOTE EFFICIENCY IN WATER RIGHT APPLICATION PROCESSING - Percent of water right applications that recei-.e an initial reliew within 45 days of application filing.

11. PROMOTE EFFICIENCY IN TRANSFER APPUCA TION PROCESSING -Percent of transfer final orders issued witl-.n 120 days of application filing.

13. INCREASE WATER USE REPORTING -the percent of water users with an annL0I water-use reporting requirement that ha-.e submitted their reports to the Department.

14. CUSTOMER SERVICE - Percent of customers rating their satisfaction with the agency's customer serlice as "good' or "excellent" in 01.erall customer service, timeliness, accuracy, helpfulness, expertise, and availability of information.

Metrics

Timeliness

Expertise

Helpfulness

Accuracy

A-.ailability of Information

0-.erall

Agency Request

Approved

Approved

Approved

Approved

Approved

Approved

Approved

Approved

Approved

Approved

Approved

Approved

Last Reported Result

26%

No Data

98%

20%

10%

3.70

1,059

100%

14%

22%

78%

64%

80%

81%

83%

72%

76%

Target 2020 Target 2021

32% 32%

50% 50%

99% 99%

22% 23%

10% 10%

4 4.30

1,265 1,265

100% 100%

55% 55%

40% 40%

85% 85%

90% 90%

90% 90%

90% 90%

90% 90%

90% 90%

90% 90%HB 5043 A

7 of 8

Budget Narrative


Legislatively Approved KPMs

2. PROTECTION OF INSTREAM WATER RIGHTS - Ratio oftl-e streams regulated to protect instream water rights to all streams regulated.

6. EQUIP CITIZENS WITH INFORMATION - Percent of water management related datasets collected by WRD that are a1.0ilable to the public on the internet.

12. PROMOTE EFFICIENCY IN FIELD STAFF REGULA lDRY ACTIVITIES -Number of places where water is legally taken out of stream and used (points of di-.ersion) per FTE of field staff.

LFO Recommendation:

Metrics

The Legislati-.e Fiscal Office recommends approval of the key perfomance measures and targets as presented.

SubCommlttee J>ctlon:

The Subcommittee appro-.ed the Key Performance Measures and targets as recommended by LFO

Agency Request

Legislati-.ely Deleted



Last Reported Result

0.82

98%

2,361

Target 2020

0.85

IBD

IBD

Target 2021

0.85

IBD

IBD

HB 5043 A

8 of 8

Budget Narrative


HB 5029 A




Action Date: Action:

House Vote Yeas:

Exe: Senate Vote

Yeas: Abs:

Prepared By:

Reviewed By:

06/2S/19 Do pass with amendments. (Printed A-Eng.)

8 - Gomberg, Holvey, McLain, Mclane, Nosse, Piluso, Rayfield, Stark 1 - Smith G

7 - Beyer, Frederick, Johnson, Manning Jr, Roblan, Steiner Hayward, Wagner 5 - Baertschiger Jr, Girod, Hansell, Heard, Thomsen Amanda Beitel and Julie Neburka, Legislative Fiscal Office

Ken Rocco, Legislative Fiscal Office

Various Agencies - Lottery Allocations

2019-21

Various Agencies - Criminal Fine Account Allocations 2019-21

Various Agencies - Oregon Marijuana Account Allocations 2019-21


Carrier: Rep. Smith G

HS 5029 A

1 of 13

Budget Narrative


Summary of Revenue Changes The Oregon State Lottery collects revenues from traditional and video lottery gaming. It pays player prizes and its operating expenses out of

these revenues and then transfers the balance (net revenues or proceeds) to the Administrative Services Economic Development Fund (EDF) .

The Department of Administrative Services (DAS) distributes funds from the EDF in adherence with constitutional and statutory funding priorities, including specific Legislative allocations. The amounts outlined in this bill are based on the May 2019 Lottery revenue forecast from

the DAS Office of Economic Analysis, adjusted for projections of reversions of unspent Lottery Funds allocations transferred to the EDF under

ORS 461.559. ORS 461.559 requires certain Lottery Funds allocations unspent at the end of a biennium to be reverted to the EDF. Total reversions under this provision, which are projected equal $3,730,702 in the 2019-21 biennium, were not included in the DAS Office of Economic

Analysis Lottery Funds forecast, but the amounts in this bill include those reversions in total available resources. As actual revenues may vary,

the associated allocations or distributions may also vary- in some cases requiring related expenditure limitation adjustments.

The Oregon Lottery transfers net lottery revenues to the Administrative Services EDF on a quarterly basis. From each quarterly transfer , a

number of dedicated distributions are required by the Oregon Constitution or are provided for in Oregon Revised Statutes (ORS), including:

• The Oregon Constitution requires that 18% of net proceeds be distributed to the Education Stability Fund.

• The Oregon Constitution requires that 15% of net proceeds be distributed to the Parks and Natural Resources Fund .

• The Oregon Constitution requires that 1.5% of net proceeds be distributed to the Veterans' Services Fund.

• Oregon statutes require that 4% of net proceeds, up to a maximum of $5.5 million per quarter adjusted for inflation, be distributed to the Outdoor School Education Fund .

• Oregon statute requires that 2.5% of net proceeds of video lottery gaming be distributed to the counties for economic development activities. Beginning with the 2005-07 biennium, 50% of the operating costs for the Economic Revitalization Team (ERT) established by

ORS 284.555 are also funded from this source. Beginning with the 2013-15 biennium, 50% of the funding for the Governor's Office

Regional Solutions Program positions are also funded from this source.

• Oregon statute requires that 1% of net proceeds be distributed to the Sports Lottery Account for sports programs at the seven public universities and for scholarships.

• Oregon statute requires that 1% of net proceeds be transferred to the Oregon Health Authority for gambling addiction prevention and

treatment programs.

HB 5029 A

2of 13

Budget Narrative


• Oregon statute requires that 1% of the net proceeds, not to exceed $1.53 million annually, be transferred to the County Fair account.

The maximum amount is adjusted each biennium pursuant to certain changes in the Consumer Price Index.

• Oregon statute requires that annual debt service payments for outstanding lottery revenue bonds be satisfied before allocating amounts

for other purposes. During the 2019-21 biennium, debt service requirements will comprise approximately 17.5% of the total distributions

from the EDF.

Finally, the Legislature makes other allocations from the EDF within authorized public purposes. These purposes include job creation, economic

development, and public education. Currently, the bulk of allocations are made to the Department of Education for the State School Fund and

to the Oregon Business Development Department for various economic and community development program expenditures.

Debt service allocations are paid annually. Interest earned on the EDF is retained within the fund. If any funds remain undistributed at the end of any quarter, they will remain in the EDF for allocation in future quarters. If quarterly revenue in the EDF is insufficient to pay for quarterly

distribution of allocations, DAS will first fund debt service obligations. Remaining revenues will be distributed in a prorated manner.

Summary of Capital Construction Subcommittee Action

Lottery Revenue AUocatjon HB 5029 allocates net lottery revenue from the EDF and the Veterans' Services Fund. The amounts outlined in this bill are based on the May 2019 Lottery revenue forecast from the DAS Office of Economic Analysis, adjusted for projections of reversions of unspent Lottery Funds

allocations transferred to the EDF under ORS 461.559. The attached tables display the Lottery Funds allocated by the Subcommittee from the EDF and Veterans' Services Fund. All Lottery Funds allocations approved from these funds for the 2019-21 biennium are included in HB 5029.

The 2019-21 allocations are summarized below.

• A total of $263.7 million Lottery Funds is allocated for debt service for outstanding lottery revenue bonds. These funds are allocated to the DAS, since the DAS Capital Finance and Planning Division administers the lottery bond program and associated debt service for the

state. DAS will transfer the necessary funding to the Higher Education Coordinating Commission, Oregon Business Development

Department, Housing and Community Services Department, Department of Transportation, Department of Forestry, Department of Energy, State Parks and Recreation Department, and the Water Resources Department for the payment of debt service on outstanding

lottery bonds. No allocations are included to pay debt service for lottery revenue bonds issued in the 2019-21 biennium.

• The State School Fund is allocated $530.1 million Lottery Funds.

HB 5029 A

3 of 13

Budget Narrative


• A total of $81.5 million Lottery Funds is allocated for the programs of the Oregon Business Development Department. This total excludes

amounts allocated for debt service payments on Lottery revenue bonds, but includes $8.8 million for Operations; $58 million for

Business, Innovation and Trade; $5.3 million for Infrastructure, $6 million for a Tide Gates and Culverts Program, $1.3 million for the Film

and Video Office, and $2.1 million for Arts Commission grants.

• The Office of the Governor is allocated $3.9 million Lottery Funds for the Regional Solutions Program. Half of this funding will come from a reduction in the net video lottery proceeds that are distributed to counties for economic development.

• The Department of Veterans' Affairs is allocated $20.6 million Lottery Funds from the Veterans' Services Fund. This total includes $11.9

million for veterans' services provided by the Department, $7.2 million for county veteran service officers, $477,354 for National Service

Organizations, and $1 million for a veterans' affordable housing project.

• The Bureau of Labor and Industries is allocated $250,000 from the Veterans' Services Fund to develop and administer an outreach

program to inform National Guard and reserve members and veterans about trade careers and apprenticeship opportunities .

• The Criminal Justice Commission is allocated $555,000 from the Veterans' Services Fund for veterans' specialty courts.

• The Oregon Health Authority is allocation $2.5 million from the Veterans' Services Fund for veterans' behavioral health services.

Education Stability Fund A constitutional amendment approved by Oregon voters in 1997, and amended in 2002, requires that 18% of net lottery proceeds be

transferred to the Education Stability Fund (ESF). Interest earnings on the ESF are continuously appropriated for the benefit of education

programs. These earnings are split 75% to the Oregon Education Fund, which is currently used to help pay debt service on lottery bonds that

were previously issued for the Department of Education, and 25% to the Higher Education Coordinating Commission for Oregon Opportunity Grants. ESF interest earnings are projected to be $40 million during the 2019-21 biennium, with $671,295 being transferred to the Oregon

Education Fund for debt service and the remaining $39.3 million being utilized for the Oregon Opportunity Grant Program.

Ten percent of the amount transferred to the ESF is deposited into the Oregon Growth Account within the ESF. All declared earnings from this

account are continuously appropriated to the Oregon Education Fund and the Higher Education Coordinating Commission. The transfers and

distributions relating to the ESF as described here are established by the Oregon Constitution and by other statutes; therefore, HB 5029 does

not include provisions relating to them.

HB 5029 A

4 of 13

Budget Narrative


Parks and Natural Resources Fund

Ballot Measure 76, approved by Oregon voters in 2010, requires 15% of net lottery proceeds to be transferred to the Parks and Natural

Resources Fund. This fund is continuously appropriated for the benefit of parks and recreation and for native species protection and

restoration. This transfer is established by the Oregon Constitution. Therefore, HB 5029 does not include provisions relating to Parks and Natural Resources Fund transfers.

Veterans' Services Fund

Ballot Measure 96, approved by Oregon voters in 2016, requires 1.5% of net lottery proceeds to be transferred to the Veterans' Services Fund.

This fund is continuously appropriated for the benefit of veterans. This transfer is established by the Oregon Constitution. HB 5029, therefore,

does not include a provision to transfer lottery proceeds into the Veterans' Services Fund. The bill does, however, include allocations from the

Veterans' Services Fund to support programs benefitting veterans at the Department of Veterans' Affairs, Bureau of Labor and Industries,

Criminal Justice Commission, and Oregon Health Authority.

Outdoor School Education Fund Ballot Measure 99, approved by Oregon voters in 2016, requires 4% of net proceeds, but no more than $5.5 million per quarter adjusted for

inflation, be distributed to the Outdoor School Education Fund. The Fund supports the Outdoor School program and is managed by the Oregon

State University Extension Service. The Subcommittee approved a fixed allocation of $45.3 million for the 2019-21 biennium, rather than the

percentage allocation described in statute.

County Economic Development

ORS 461.547 requires that 2.5% of net proceeds of video lottery gaming be distributed to the counties for economic development activities.

Beginning with the 2005-07 biennium, 50% of the operating costs for the Economic Revitalization Team (ERT) established by ORS 284.555 have

also been funded from this source. Beginning with the 2013-15 biennium, 50% of the funding for the Governor's Office Regional Solutions

Program positions are also funded from this source.

The Subcommittee approved allocating a fixed dollar amount for county economic development during the 2019-21 biennium, rather than the

percentage allocation described in statute. The fixed dollar amount is $50.2 million, which is equal to 2.5% of the amount of net video lottery

proceeds projected in the May 2019 revenue forecast, minus one-half of the allocation to the Office of the Governor for the Regional Solutions

Program.

Gambling Addiction Prevention and Treatment

The 1999 Legislature statutorily dedicated 1% of net lottery proceeds to be transferred to the Oregon Health Authority to fund gambling

addiction programs in the state. The Subcommittee approved a fixed allocation of $14.6 million for the 2019-21 biennium, rather than the

percentage allocation described in statute.

HB 5029 A

5 of 13

Budget Narrative


Sports Lottery Account Beginning in 2007, 1% of net lottery proceeds are dedicated for distribution to public universities to offset the costs of intercollegiate athletic

programs and for academic scholarships. The Subcommittee approved a fixed allocation of $14.1 million for the 2019-21 biennium, rather than

the percentage allocation described in statute.

County Fairs

The 2001 Legislature statutorily dedicated 1% of net lottery proceeds, with certain limitations, for distribution to county fair programs throughout the state. This amount is adjusted by inflation each biennium. The Subcommittee approved a fixed allocation of $3.8 million for the

2019-21 biennium, rather than the percentage allocation described in statute.

Lottery Funds Expenditure Limitation Lottery Funds expenditure limitation related to these allocations is established within the respective agency budget bills and in the budget

reconciliation bill (HB 5050).

Criminal Fine Account Allocation ORS 137.300 establishes the Criminal Fine Account (CFA), and identifies program priorities for account moneys, but does not specify a funding

level for the programs. A portion of the crime and violation fine payments collected by state and local courts are transferred into the account. The expenditure limitations for programs receiving CFA allocations are established in the separate agency appropriation bills or the budget

reconciliation bill (HB 5050). Any CFA revenues remaining after the specific program allocations are deposited into the General Fund.

The CFA revenue forecast for the 2019-21 biennium totals $128.6 million. This amount is equal to the amount in the May 2019 revenue forecast from the DAS Office of Economic Analysis, plus revenue impacts from SB 980 (2019).

The Subcommittee approved allocations to agencies totaling $76.8 million, leaving $51. 7 million to be deposited into General Fund. Those

revenues are included in the General Fund expenditures authorized in the 2019-21 Legislatively Adopted Budget. The specific allocation amounts authorized in this bill are listed in the attached CFA table . The table reflects one new allocation and includes four one-time reductions

to allocations from the Criminal Fines Account .

A new $100,000 allocation is made to the Department of Revenue for administrative expenses. Expenditure limitation for this allocation is

included in the Department of Revenue's appropriation bill for the 2019-21 biennium.

Two one-time time reductions are made to Criminal Fines Account allocations to the Department of Justice that are in lieu of General Fund

reductions:

HB 5029 A

6of 13

Budget Narrative


• Child Abuse Multidisciplinary Intervention Account - The 2019-21 current service level allocation of $11,147,006 is reduced by

$1,322,441 due to an existing 2019-21 estimated ending Other Funds balance of $1,322,441. The revised allocation totals $9,824,565.

This is a one-time revenue allocation change for the Department of Justice' s 2019-21 legislatively adopted budget.

• Criminal Injuries Compensation Account (for District Attorney Victims Assistance portion only) - The 2019-21 current service level

allocation of $9,441,018 is reduced by $685,156 due to an estimated ending Other Funds balance of the same amount that is attributable to District Attorney Victims Assistance. The revised allocation totals $8,755,862. This is a one-time revenue allocation change for the

Department of Justice's 2019-21 legislatively adopted budget.

Two one-time time reductions are made to Criminal Fines Account allocations to the Department of Public Safety Standards and Training

(DPSST) that are in lieu of General Fund reductions:

• DPSST Operations - funding for Basic Police Classes - The 2019-21 current service level allocation of $37,240,650 is reduced by $2,650,926 due to the net effect of eliminating four Basic Police classes from the 2019-21 training calendar, reducing inflationary

adjustments, and adding two positions to the STOP Program. This is a one-time program and revenue allocation reduction for the Department of Public Safety Standards and Training's 2019-21 legislatively adopted budget. Program expenditure reductions are included in SB 5533, the agency's 2019-21 budget bill.

• DPSST Operations - reduce fund balance - the 2019-21 current service level allocation of $37,240,650 is further reduced by $2,300,000

due to an estimated ending Other Funds balance of the same amount that is attributable to Operations. Including the allocation reduction above, the revised allocation totals $31,999,031. This is a one-time revenue allocation change for the Department of Public

Safety Standards and Training's 2019-21 legislatively adopted budget.

Oregon Marjjuana Account AUocatjon Net revenues from state Marijuana taxes, after payment of administrative and enforcement expenses, are deposited into the Oregon Marijuana Account. The Department of Revenue transfers 10% of Account funds to cities, and 10% to counties, by formulas established in statute. The remaining 80% of moneys in the Oregon Marijuana Account is allocated to state programs in this bill.

Oregon statutes dedicate the remaining 80% of moneys to be distributed as follows :

• 40% to the State School Fund

• 20% to the Mental Health Alcoholism and Drug Services Account

• 15% to the State Police Account

• 5% to alcohol and drug abuse prevention, early intervention and treatment services

HB 5029 A

7 of 13

Budget Narrative


The revenue forecast for the Oregon Marijuana Account for the 2019-21 biennium totals $252.2 million. This amount is equal to the amount in

the May 2019 revenue forecast from the DAS Office of Economic Analysis. Based on this forecast, the Department of Revenue will distribute

$44.7 million to cities and counties.

The remaining $207.5 million is allocated as directed under statute:

• $103.7 million to the State School Fund

• $51.9 million to the Mental Health Alcoholism and Drug Services Account

• $38.9 million to the State Police Account.

• $13 million to alcohol and drug abuse prevention, early intervention and treatment services.

However, as actual revenues may vary, the associated distributions may also vary - in some cases requiring related expenditure limitation and

allocation adjustments.

HB 5029 A

8of 13

Budget Narrative


LOTTERY FUNDS CASH FLOW SUMMARY

2017-19 2019-21

Legislatively Approved Legislatively Adopted

Budget 1 Budget 2

ECONOMIC DEVELOPMENT FUND

RESOURCES Beg inning Ba lance $ 49,0 1 6,803 $ 65,339,50 1 Lottery Fun ds Reversions u n der ORS461.559 4, 1 74,452 3,730,702

REVENUES Transfe rs from Lotter y

Net Proceeds 1,408,41 6,655 1,459,844, 118 Admini str at ive Act i ons 47,813,925

Oth er Revenues Interest Earnin gs 2,000,000 2,000,000 Other

Tota l Revenue 1,458,230,580 1,46 1,844, 118 TOTAL RESOURCES s 1 ,511 ,421, 835 s 1 , 530, 914,321

DISTRIBUTIONS/ ALLOCATIONS Dist ribut io n to Educat ion Sta bility Fund (262,121,504) (262,77 1,941 ) Dist ribut io n to Pa rks and Natu ral Resou rces Fund (218,43 4,587) (218,976,618) Dist ribut ion for Veteran s' Services F,.md (21,843,459) (21,897,662) Dist ribution for Outdoo r Schoo l Fund (24,000,000) (4 5,305,847) Dist ribut ion of Video Revenues to Count ies (4 1,285,992) (50,23 1,366) Distribut io n f or Sport s Program s (8,2 40,000) (14,099,809) Dist ri butio n for Gamblin g Addict ion (12,498,909) (14,593,07 1) Dist ribut io n for Count y Fa ir s (3,828,000) (3,828,000) Allocation to State Schoo l Fund (535,719,907) (530,146,857) Debt Service Allocations (246,3S 7,867) (263,66 1,510) Ot h e r Age ncy Allocations (71,7S2,109) (SS,401,640)

I TOTAL DISTRIBlJTIONS/ A LLOCATIONS s (1;446, 082,334) s (1,510,914,321)

I ENDING BA LANCE $ 65,339,501 $ 20,000,000

EDUCATION STABILITY FUND (not inclu d in g t h e Oregon G rowth Account b a la n ces)

RESOURCES

Beginning Ba lance $ 383,759,084 $ 619,668,217 Revenues

Tr a n sfer from the Econo mic Deve lopment Fund 235,909,354 236,494,747 Inte rest Earnin gs 22,366,297 40,0 12,241 Oregon Growth Account Earn in gs Distribut io n s 5, 184,729

Tota l Reve nue $ 263,460,380 $ 276,506,988

TOTAL RESOURCES $ 647, 219,464 $ 896,175,205

DISTRIBUTIONS Oregon Opportun it y Grant Program (26,904,035) (39,340,946) Debt Service Allocations to Department of Education (646,99 1) (671,295) Treasu ry Accou n t Fees (221)

I TOTAL DISTRIBUTIONS s 127 551 247) s 140 012,241)

I ENDING BALANCE s 619,668,217 s 856, 162, 964

1. The 2017-19 Legisla tively Approved Budget is based cri the May 2019 forE!Cast of 2017-19 resourcE!:>.

2. The 2019 -21 Legislatively Adopted Budget Is based cri the May 2019 forE!Cast of 2019 -21 resources w ith the adjustments shown for lottery reversions and

3. 2019-21 beginring balance is E>qUal to 2017 -19 ending balance.

4. Oregon Growth A:count distribu t ions and transfers to the Oregon Education Fund and Oregon Opporturity Grart Program are included

S. Only Includes transfefs to the main Educat ion Stability Fund accou,t, ard not the 10% transferred to the Oregon Growth Account.

HB 5029 A

9of 13

Budget Narrative


2019-21 LOTTERY FUNDS ALLOCATIONS AND EXPENDITURES

New Lo ttery Be1innin& Interest and

Funds Allocation Lottery Ba la n ce Oth er Earnings

ECONOMIC DEVELOPMENT FUND DEBT SERVICE COMM ITMENT S

Hi gh e r Education Coordinatin g Co mmiss ion Outstanding bonds 44,727,472 294 ,965

Bu si ness Developme nt Departmen t

Outstanding bonds 48,065,843 241,700 Housing and Community Se rvices Depa rtme n t

Outstanding bonds 21,713,035 76,3 00 Departme n t of Tran sporta tion

Outstanding bonds 115,058,344 5 34,636 Departm e n t of Adm inist rative Serv ices

Outstanding bond s 18,714,544 70,7 89 State Forestry Departmen t

Outstanding Bond s 2,530,271 13,180 Department of En ergy

Outstanding Bond s 3 ,006,469 16,896 State Parks and Recreat ion Department

Outstanding Bond s 2 ,292 ,182 5,3 61 Water Resources Department

Outstanding Bond s 7,5 53,350 13,152

OT HER ALLOCAT IONS Higher Education Coordinat in g Comm ission

Co llegiate Ath letic s 14,099,809 Outdoor Schools 45,3 05,847

Oregon Hea lth Au thor i ty Gambling Addicti on Treatm ent 14,5 93,071

Department of Edu cation State School Fund 530,146,857

Department of Admin istrative Service s Dis tribution to Co unty Fairs 3,828,000

Office of the Governor Regiona l Solutio n s 3,932,736

Business Development Department Operations 8,773,82 6

Bu siness, Innovation, and Trade 57,965,174 3,838,718 Infrastructure 5,3 51,472

Infrastructure - Tide Gate s and Cu lverts Program 6,000,000 Film and Vid eo 1 ,2 53,432

Arts and Cultural T ru st 2,125,000

TOT A L ECONOMIC DEVELOPM ENT FUND 957,036,73 4 5,105,697

EDUCATION STA BILITY FUND /

OREGON EDUCATION FUND

Higher Educat ion Coordinating Comm ission Opportunity Gran ts 3 9,340,94 6 7,284 ,497

Department of Education Educat io n Bonds Outstanding 671,295 21,5 75

TOT AL EDUCATION STABILITY /OREGON EDUCATION FUND 40,012,241 7,306,072

2019-21 LAB

Expenditure

Limitation

45,022,437

48,307,543

21,789,3 35

115,592,980

18,785,3 33

2,543,451

3,023,3 65

2,297,543

7,566,502

14,099,809 4 5,305,847

14,593,071

5 30,146,857

3,82 8,000

3,93 2,736

8,773,826

61,803 ,892 5,351 ,472

1 1,253,432

2,125,000

956,142,432

40,000,000

692,870

40,692,870

Endina: Lottery Ba lan ce

5,999,999

5,999,999

6,625,443

6,625,443 HB 5029 A

10 of 13

Budget Narrative


VETERANS' SERVICES FUND

RESOURCES/ REVENUES

VSF Beginning Balance

Lottery Revenue

TOTAL RESOURCES

ALLOCATIONS

Department of Veterans' Affairs

Veterans' Services Program

County Veteran Service Officers

National Service Organizations Veterans' Affordable Housing

Total ODVA Allocations

Bureau of Labor and Industries

Reintegration Program (HB 2202)

Criminal Justice Commission

Veterans' Specialty Courts

Housing and Community Services

Housing Assistance to Veterans

Oregon Health Authority

Veterans' Behavorial Health

TOTAL ALLOCATIONS

VSF ENDING BALANCE

2017-19 Legislatively Approved

$ -21,843,459

$ 21,843,459

$ (8,378,042)

(6,904,151)

(118,156) -

$ (15,400,349)

-

-

(1,500,000)

-

$ (16,900,349)

$ 4,943,110

2019-21 Legislatively Adopted

$ 4,943,110

21,897,662

$ 26,840,772

$ (11,915,984)

(7,166,509)

(477,354)

(1,000,000)

$ (20,559,847)

(250,000)

(555,000)

-

(2,500,000)

$ (23,864,847)

$ 2,975,925

HB 5029 A

11 of 13

Budget Narrative


CRIMINAL FINE ACCOUNT ALLOCATIONS

Criminal Fine Account Revenues

Criminal Fine Account Allocations;

Department of Public Safety Standards and Training Operat ions

Public Safety Mem ori al Fund

Department of Justice Child Abuse Multid i scip linary Intervention (CAMI)

Re gion a l Ass e ssment Cen t ers Crim inal Injuries Compensation Account (C ICA)

Child Abuse Med ical Assess m en ts

Department of Human Services Domestic Vio len ce Fund Sexu al Assau lt Victims Fund

Oregon Heolth Authority Emergen cy Medic ;:i l Se rvices & Tra uma Services

Alcohol & Drug Abuse Prevent ion Law Enforcem en t Med ica l Liab ility Account {LEMLA)

Intoxicated Dri ver Program

Oregon Judicial Department State court security and emergen cy p reparedness Coun ty cou rt fac ilit ies security

Subtotal

Su btotal

Subtotal

Subtotal

Capita l improvem e nts for courth o u ses an d o t her state court fac ilit ie s State Court Technology Fund

Subtotal

Oregon State Police Dri v ing Und e r t h e Influen ce Enforcem e nt

Department of Corrections Coun ty correct ion programs and faci li t ies~ an d alcoh o l and drug programs

Department of Revenue Administrat ive expen se s

Total Allocations:

Transfer to the General Fund:

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

2017-19

Legislatively 2019-21

Approved Current

Budget Service Level

143,975,636 $ 127,366,192

36,316,251 $ 3 7 ,24 0,650 200,030 2 7 9,677

36,516,281 $ 3 7 ,520,327

10,679,854 $ 11,147,006 815 ,9 61 846,968

9,095,393 9,441,018 690 667 716 9 12

21,281,875 $ 22,151,904

2,239 ,6 08 $ 2,224,675 518,399 533,332

2,7 58,007 $ 2,7 58,007

331,824 $ 331,824

4 2,884 4 2,884 1,354,360 1,3 00,000 4,323,000 4,323,000

6,052,068 $ 5,997,708

3,615 ,6 58 $ 3 ,7 84,490

2,824 ,208 2,931,528

3 110 ODO 3 887 500

9,54 9,866 $ 10,603,518

351,5 72 $ 351,572

4,257,421 $ 4,585,442

$

76,509,669 79,383,036

67,465,967 $ 47,983,156

2019-21

Legislatively

Percent Adopted

Change Budget

-11. 5% $ 128,566,192

2.5% $ 31,999,031 39.8% 279,495

2. 7% $ 32,27 8,526

4 .4% $ 9 ,824 ,565 3 .8% 846, 968

3.8% 8,755,862 3.8% 716 9 12 4. 1% $ 20,144,307

-0 .7% $ 2,224,675 2. 9% 533,332

0.0% $ 2,758,007

0 .0% $ 331,824

0.0% 4 2,884 -4.0% 1,300,000 0 .0% 4,323,000

-0.9% $ 5,997,7 08

4 .7% $ 3 ,7 84,490

3.8% 2,9 31,528 0.0% 0 .0% 3 887 SOD

11.0% $ 10,603,518

0.0% $ 351,57 2

7. 7% $ 4,585,442

0 .0% $ 100 ODO

17. 0% $ 76,819,080

-28.9% $ 51,747,112

Percent

Change

-10. 7%

-11. 9%

3 9 .7%

-1 1.6%

-8.0%

3 .8% -3. 7%

3.8% -5 .3%

-0 .7% 2. 9%

0.0%

0 .0%

0.0% -4 .0%

0 .0%

-0.9%

4 .7% 3.8%

0.0% 25. 0%

1 1.0%

0 .0%

7 .7%

100 .0%

93%

-23.3% HB 5029 A

12 of 13

Budget Narrative


2019-21 Oregon Marijuana Account

(includes 2017-19 carry toward)

Cities

Counties

State School Fund

Subtotal Local

Mental Health Alcoholism & Drug Services Account

State Police Account

Drug and alcohol abuse prevention and treatment

Subtotal State

Total

HB 3470 Distn

10%

10%

40%

20%

15%

5%

100%

2019-21 Biennium Oregon Marijuana Account

22,345,600 22,345,600

$44,691,200

103,764,900

51,882,500

38,911,800

12,970,600

$207,529,800

$252,221,000

HB 5029 A

13 of 13

Budget Narrative


HB 5050A




Action Date: Action:

House Vote Yeas:

Exe: Senate Vote

Yeas: Abs:

Prepared By: Reviewed By:

Emergency Board 2019-21

06/25/19 Do pass with amendments. (Printed A-Eng.)

8 - Gomberg, Holvey, Mclain, Mclane, Nosse, Piluso, Rayfield, Stark 1- Smith G

7 - Beyer, Frederick, Johnson, Manning Jr, Roblan, Steiner Hayward, Wagner 5 - Baertschiger Jr, Girod, Hansell, Heard, Thomsen Julie Neburka and Theresa McHugh, Legislative Fiscal Office

Paul Siebert, Legislative Fiscal Office

Department of Corrections 2017-19

This summary has not been adopted or officially endorsed by action of the committee .

Carrier: Rep. Rayfield

HB 5050 A

1 of 41

Budget Narrative


Budget Summary* 2017-19 Legislatively 2019-21 Committee

Approved Budget Recommendation Committee Change

Emergency Board General Fund - General Purpose $ 75,000,000 $ 75,000,000

General Fund - Special Purpose Appropriations State Agencies for state employee compensation $ 200,000,000 $ 200,000,000 State Agencies for non-state worker compensation $ 20,000,000 $ 20,000,000

Public Defense services and contract model $ 20,000,000 $ 20,000,000

Grand Jury Recordation $ 3,000,000 $ 3,000,000 OHA - Youth with Behavioral Health Needs $ 5,700,000 $ 5,700,000

PDSC and DOC- Unauthorized Use of a Vehicle $ 1,000,000 $ 1,000,000 Secretary of State - SB 861 implementation $ 1,146,094 $ 1,146,094

ADMINISTRATION PROGRAM AREA

De(!artment of Administrative Services General Fund $ 23,939,562 $ 23,939,562

General Fund Debt Service $ (243,315) $ (243,315)

Lottery Funds Debt Service $ {2,797,357) $ {2,797,357)

Other Funds $ 98,343,839 $ 98,343,839

Other Funds Debt Service $ 4,975,884 $ 4,975,884

Advoca~ Commissions Office General Fund $ (3,910) $ (3,910)

Em[!loyment Relations Board General Fund $ (24,878) $ (24,878)

Other Funds $ (17,900) $ (17,900)

Oregon Government Ethics Commission Other Funds $ {31,294) $ {31,294)

Office of the Governor General Fund $ 37,976 $ 37,976

Lottery Funds $ {30,060) $ {30,060)

Other Funds $ {14,162) $ {14,162)

Oregon Liguor Control Commission Other Funds $ {365,805) $ {365,805)

HB 5050 A

2 of 41

Budget Narrative


Budget Summary*

Public Em(!IO:l£ees Retirement S:l£stem, Other Funds

Racing Commission Other Funds

De(!artmentof Revenue General Fund General Fund Debt Service Other Funds Other Funds Debt Service

Secretary of State General Fund Other Funds Federal Funds

State Library General Fund Other Funds Federal Funds

State Treasurer Other Funds

CONSUMER AND BUSINESS SERVICES PROGRAM AREA

State Board of Accountancy Other Funds

Chiro(!ractic Examiners Board Other Funds

Consumer and Business Services Other Funds Federal Funds

Construction Contractors Board Other Funds


Approved Budget

2019-21 Committee

Recommendation Committee Change

$ (99,S4O) $ (99,S4O) .,,

$ (74,492) $ (74,492)

$ (l,9Sl,713) $ (l,9Sl,713)

$ (86,SOO) $ (86,SOO)

$ (62S,879) $ (62S,879)

$ 90,000 $ 90,000

$ 198,280 $ 198,280 (731 ,332) $ (731,332)

$ (6,624) $ (6,624)

$ (2,6S8) $ (2,6S8)

$ (S4,948) $ (S4,948)

$ (4,478) $ (4,478)

$ (786,43S) $ (786,43S)

$ (41,790) $ (41,790)

$ (4O,S63) $ (4O,S63)

$ (l,8OS,SSO) $ (l,8OS,SSO)

$ 724,474 $ 724,474

$ (223,798) $ (223,798)

HB SOSO A

3 of 41

Budget Narrative


Budget Summary*

Board of Dentistry Other Funds

Health Related Licensing Boards Other Funds

Bureau of Labor and Industries General Fund Other Funds Federal Funds

Licensed Professional Counselors and Thera~ists. Board of Other Funds

Licensed Social Workers, Board of Other Funds

Medical Board Other Funds

Board of Nursing Other Funds

Board of Pharmacy Other Funds

Oregon Board of Psychology Other Funds

Public Utility Commission Other Funds Federal Funds

Real Estate Agency Other Funds

Tax Practitioners Board Other Funds

2017-19 Legislatively 2019-21 Committee Approved Budget Recommendation

$ (55,978)

$ (93,931)

$ (186,026)

$ (128,532)

$ (19,597)

$ (23,995)

$ (23,401)

$ (105,576)

$ (148,702)

$ (93,745)

$ (19,078)

$ (337,731)

$ (6,195)

$ (87,703)

$ (12,149)

Committee Change

$ (55,978)

$ (93,931)

$ (186,026)

$ (128,532)

$ (19,597)

$ (23 ,995)

$ (23,401)

$ (105 ,576)

$ (148,702)

$ (93,745)

$ (19 ,078)

$ (337,731)

$ (6,195)

$ (87,703)

$ (12,149)

HB 5050 A

4 of 41

Budget Narrative


Budget Summary* 2017-19 Legislatively

Approved Budget

ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAM AREA

Oregon Business Development Department General Fund General Fund Debt Service Lottery Funds Lottery Funds Debt Service Other Funds Other Funds Debt Service Other Funds Nonlimited Federal Funds

Employment Department Other Funds Federal Funds

Housing and Community Services Department General Fund General Fund Debt Service Lottery Funds Debt Service Other Funds Other Funds Debt Service Federal Funds

Department of Veterans' Affairs General Fund General Fund Debt Service Lottery Funds Other Funds

EDUCATION PROGRAM AREA

Department of Education General Fund General Fund Debt Service Other Funds Other Funds Debt Service Federal Funds

2019-21 Committee

Recommendation

$ 9,992,396

$ 2 ,050,084

$ 12,813,582

$ {3,691,197)

$ 204,671,736

$ 157,290

$ 35,000,000

$ {6,078)

$ {899,214)

$ {665,899)

$ {941,245)

$ 9 ,781,918

$ {79,455)

$ 62 ,397,519

$ 1,099

$ (1,035,075)

$ (51 ,109)

$ (1,871,420)

$ 961,666

$ 3,912 ,257

$ {125,070)

$ (1,345,537)

$ 125,770,137

$ 9 ,330

$ {324,415)

Committee Change

$ 9,992,396

$ 2,050,084

$ 12,813,582

$ (3,691,197)

$ 204,671,736

$ 157,290

$ 35,000,000

$ {6,078)

$ {899,214)

$ {665,899)

$ {941,245)

$ 9,781,918

$ {79,455)

$ 62,397,519

$ 1,099

$ (1,035,075)

$ (51,109)

$ (1,871,420)

$ 961,666

$ 3,912 ,257

$ (125,070)

$ (1,345,537)

$ 125,770,137

$ 9 ,330

$ {324,415)

HB 5050 A

5 of 41

Budget Narrative



Approved Budget

State School Fund General Fund Lottery Funds Other Funds

Higher Education Coordinating Commission General Fund Other Funds Federal Funds

State SU(;!(;!Ort to Communit:lt'. Colleges General Fund General Fund Debt Service Lottery Funds Debt Service Other Funds Debt Service

State SU(;!(;!Ort to Public Universities General Fund General Fund Debt Service Lottery Funds Lottery Funds Debt Service Other Funds Debt Service

State SU(;!(;!Ort to Oregon Health Sciences Universi!Jl General Fund Debt Service Other Funds Debt Service

Teacher Standards and Practices Other Funds

HUMAN SERVICES PROGRAM AREA

Commission for the Blind General Fund Other Funds Federal Funds

2019-21 Committee

Recommendation

$ 5,101,078

$ (5,573,050)

$ 471,972

$ 73,809

$ 6,385,614

$ 65,430

$ 975,000

$ (5,763,861)

$ (242,498)

$ 3,126,854

$ 5,653,419

$ (12,483,243)

$ 5,859,809

$ (774,410)

$ 4,876,782

$ (48,310)

$ 48,365

$ (87,203)

$ (103,100)

$ (7,232)

$ (115,724)

Committee Change

$ 5,101,078

$ (5,573,050)

$ 471,972

$ 73,809

$ 6,385,614

$ 65,430

$ 975,000

$ (5,763,861)

$ (242,498)

$ 3,126,854

$ 5,653,419

$ (12,483,243)

$ 5,859,809

$ (774,410)

$ 4,876,782

$ (48,310)

$ 48,365

$ (87,203)

$ (103 ,100)

$ (7,232)

$ (115,724)

HB 5050 A

6 of 41

Budget Narrative



Approved Budget

Oregon Health Authority General Fund General Fund Debt Service Lottery Funds Other Funds Other Funds Debt Service Federal Funds

Deeartment of Human Services General Fund General Fund Debt Service Other Funds Federal Funds

Long Term Care Ombudsman General Fund Other Funds

Psychiatric Securitv Review Board General Fund

JUDICIAL BRANCH

Judicial Deeartment General Fund General Fund Debt Service Other Funds Other Funds Debt Service Federal Funds

Commission on Judicial Fitness and Disability General Fund

Public Defense Services Commission General Fund Other Funds

2019-21 Committee Re comm endatlon

$ 3,296,378

$ (216,292)

$ (4,929)

$ 13,711,749

$ 216,435

$ 27,649,540

$ 7,944,508

$ 1,512,253

$ 43,415,376

$ 132,642,331

$ (60,461)

$ (8,161)

$ (30 ,871)

$ 2,077,938

$ (3,585,266)

$ 137,039,553

$ 1,300,000

$ (1,408)

$ 16,000

$ 3,394,972

$ 302,670

Committee Change

$ 3,296,378

$ (216,292)

$ (4,929)

$ 13,711,749

$ 216,435

$ 27,649,540

$ 7,944,508

$ 1,512,253

$ 43,415,376

$ 132,642,331

$ {60,461)

$ (8,161)

$ (30,871)

$ 2,077,938

$ (3,585,266)

$ 137,039,553

$ 1,300,000

$ (1,408)

$ 16,000

$ 3,394,972

$ 302,670

HB 5050 A

7 of 41

Budget Narrative




LEGISLATIVE BRANCH

Legislative Administration Committee General Fund $ 1,330,850 $ 1,330,850 General Fund Debt Service $ 527,814 $ 527,814 Other Funds $ 5,167,447 $ 5,167,447 Other Funds Debt Service $ 38,500 $ 38,500

Legislative Assembly General Fund $ (235,919) $ (235,919)

Legislative Commission on Indian Services General Fund $ (7,244) $ (7,244)

Legislative Counsel General Fund $ (70,545) $ (70,545) Other Funds $ (6,086) $ (6,086)

Legislative Fiscal Office General Fund $ (30,828) $ (30,828)

Other Funds $ (15,770) $ (15,770)

Legislative Revenue Office General Fund $ (16,951) $ (16,951)

Legislative Polic)l and Research Office General Fund $ (57,110) $ (57,110)

NATURAL RESOURCES PROGRAM AREA

State De(!artment of Agriculture General Fund $ 916,315 $ 916,315 Lottery Funds $ (68,464) $ (68,464)

Other Funds $ (595,327) $ (595,327) Federal Funds $ (52,494) $ (52,494)

Columbia River Go!Ee Commission General Fund $ 109,813 $ 109,813

State De(!artment of Ene!E:ll General Fund $ 2,000,000 $ 2,000,000 Lottery Funds Debt Service $ (5) $ (5)

Other Funds $ 1,576,722 $ 1,576,722 Federal Funds $ (7,330) $ (7,330) HB 5050 A

8 of 41

Budget Narrative



Approved Budget

Deeartmentof Environmental guali~ General Fund General Fund Debt Service Lottery Funds Other Funds Federal Funds

State Deeartment of Fish and Wildlife General Fund General Fund Debt Service Lottery Funds Other Funds Other Funds Capital Improvement Federal Funds

Deeartme nt of Forestry General Fund General Fund Debt Service Lottery Funds Debt Service Other Funds Other Funds Debt Service Federal Funds

Deeartment of Geology and Mineral Industries General Fund Other Funds Federal Funds

Deeartment of Land Conservation and Develoement General Fund Other Funds Federal Funds

Land Use Board of Aeeeals General Fund

2019-21 Committee

Recommendation

$ 51,176

$ 834,752

$ (31,593)

$ 3,747,167

$ (113,604)

$ 115,083

$ (324,470)

$ (18,626)

$ (672,467)

$ (4,077)

$ (1,187,333)

$ 1,340,580

$ (2,470,088)

$ (61,999)

$ (1,351,583)

$ 151,184

$ (77,626)

$ (25,615)

$ (29,270)

$ (19,870)

$ 1,794,756

$ (2,132)

$ (17,182)

$ (21,627)

Committee Change

$ 51,176

$ 834,752

$ (31,593)

$ 3,747,167

$ (113,604)

$ 115,083

$ (324,470)

$ (18,626)

$ (672,467)

$ (4,077)

$ (1,187,333)

$ 1,340,580

$ (2,470,088)

$ (61,999)

$ (1,351,583)

$ 151,184

$ (77,626)

$ (25,615)

$ (29,270)

$ (19,870)

$ 1,794,756

$ (2,132)

$ (17,182)

$ (21,627)

HB 5050 A

9of 41

Budget Narrative




Oregon Marine Board Other Funds $ {92,426) $ {92,426)

Federal Funds $ (2,643) $ (2,643)

Deeartment of Parks and Recreation Lottery Funds $ (416,598) $ (416,598)

Lottery Funds Debt Service $ {76,557) $ {76,557)

Other Funds $ 4,212,940 $ 4,212,940

Other Funds Debt Service $ 33,023 $ 33,023

Federal Funds $ (4,620) $ (4,620)

Deeartme nt of State Lands Lottery Funds Debt Service $ (589,920) $ (589,920)

Other Funds $ 5,538,837 $ 5,538,837

Federal Funds $ 148,732 $ 148,732

Water Resources Deeartment General Fund $ {435,713) $ {435,713)

Lottery Funds Debt Service $ {926,818) $ {926,818)

Other Funds $ 43,734,905 $ 43,734,905

Other Funds Debt Service $ 394 $ 394

Federal Funds $ (1,215) $ (1,215)

Watershed Enhancement Board Lottery Funds $ (22,280) $ (22 ,280)

Federal Funds $ (6,493) $ (6,493)

PUBLIC SAFETY PROGRAM AREA

Deeartment of Corrections General Fund $ {6,481,181) $ (6,481,181)

General Fund Debt Service $ 1,073,820 $ 1,073,820

Other Funds $ 5,265,521 $ 5,265,521

Other Funds Debt Service $ 51,378 $ 51,378

Oregon Criminal Justice Commission General Fund $ 36,193 $ 36,193

Other Funds $ 273,635 $ 273,635

Federal Funds $ (1,216) $ (1,216)

HB 5050 A

10 of 41

Budget Narrative




District Attorne:lls and their De(!uties General Fund $ (1OS,73S) $ (1OS,73S)

De(!artment of Justice General Fund $ {667,789) $ {667,789)

General Fund Debt Service $ 1,484,988 $ 1,484,988 Other Funds $ {2,479,020) $ {2,479,020)

Federal Funds $ (716,9S2) $ (716,9S2)

Oregon Milita!]l De(!artment General Fund $ 179,39S $ 179,39S General Fund Debt Service $ (36,468) $ {36,468)

Other Funds $ {373,737) $ {373,737)

Other Funds Debt Service $ 33,000 $ 33,000 Federal Funds $ {691,6OS) $ {691,6OS)

Oregon Board of Parole and Post-Prison Su(!ervision General Fund $ (101,621) $ (101,621)

Oregon State Police General Fund $ {2,122,021) $ {2,122,021)

Lottery Funds $ {69,S41) $ {69,S41)

Other Funds $ (873,872) $ (873,872)

Federal Funds $ (23,603) $ (23,603)

De(!artment of Public Safen£ Standards and Training Other Funds $ (290,693) $ (290,693)

Federal Funds $ 324,810 $ 324,810

Oregon Youth Authorit:ll General Fund $ (l,8O3,2SS) $ (l,8O3,2SS)

General Fund Debt Service $ (3,OO8,S74) $ (3,OO8,S74)

Other Funds $ 772,367 $ 772,367 Other Funds Debt Service $ 9S,OOO $ 9S,OOO

Federal Funds $ (74,149) $ (74,149)

TRANSPORTATION PROGRAM AREA

Department of Aviation Other Funds $ {32,084) $ {32,084)

Federal Funds $ {826) $ (826) HB SOSO A

11 of 41

Budget Narrative


Budget Summary*

De(!artme nt of Trans(!ortation General Fund Debt Service Lottery Funds Debt Service Other Funds Other Funds Debt Service Federal Funds

2019-21 Budget Summary

General Fund Total General Fund Debt Service Lottery Funds Total Lottery Funds Debt Service Other Funds Total Other Funds Debt Service Other Funds Nonlimited Other Funds Capital Improvement Federal Funds Total

* Excludes Capital Construction

2017-19 Supplemental Appropriations

De(!artment of Corrections General Fund


Approved Budget


Approved Budget

2019-21 Committee

Recommendation

s (8,904)

s (3,182 ,760)

s (3,318,842)

s 8 ,904

s (65,547)

s 380,757,376

s (14,226,619)

s 13,399,916

s (12,422,976)

s 749,532,835

s 15,213,422

s 35,000,000

s (4,077)

s 156,305,516

2017-19 Committee

Recommendation

s 3,000,000

Committee Change

s (8,904)

s (3 ,182,760)

s (3,318 ,842)

s 8 ,904

s (65,547)

s 380,757,376

s (14,226 ,619)

s 13,399 ,916

s (12,422,976)

s 749,532 ,835

s 15,213,422

s 35,000,000

s (4,077)

s 156,305,516

Committee Change

s 3,000,000

HB 5050 A

12 of 41

Budget Narrative


2019-21 Position Summary

ADMINISTRATION PROGRAM AREA

Department of Administrative Services Authorized Positions Full-time Equivalent (FTE) positions

Secretary of State Authorized Positions Full-time Equivalent (FTE) positions


Consumer and Business Services Authorized Positions Full-time Equivalent (FTE) positions


Approved Budget

ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAM AREA

Housing and Community Services Department Authorized Positions Full-time Equivalent (FTE) positions

Oregon Business Development Department Authorized Positions Full-time Equivalent (FTE) positions


Higher Education Coordinating Commission Authorized Positions Full-time Equivalent (FTE) positions

2019-21 Committee

Recommendation

2

2 .00

2

1.75

1

1.00

7

5 .67

1

0.88

10

9 .50

Committee Change

2

2 .00

2

1.75

1

1.00

7

5 .67

1

0.88

10

9.50

HB 5050 A

13 of 41

Budget Narrative




Oregon Health Authority Authorized Positions Full -time Equivalent (FTE) positions

Department of Human Services Authorized Positions Full-time Equivalent (FTE) positions

JUDICIAL BRANCH

Judicial Department Authorized Positions Full-time Equivalent (FTE) positions

Public Defense Services Commission Authorized Positions Full-time Equivalent (FTE) positions


Department of Land Conservation and Development Authorized Positions Full-time Equivalent (FTE) positions

Department of Fish and Wildlife Authorized Positions Full-time Equivalent (FTE) positions

Department of Environmental Quality Authorized Positions Full-time Equivalent (FTE) positions

Department of Energy Authorized Positions Full-time Equivalent (FTE) positions


Approved Budget

2019-21 Committee

Recommendation

47 3 6.18

32

29 .90

17 13.50

2

2 .00

7

6 .00

(0.50 )

(1)

(1 .00)

3

1 .2S

Committee Change

47 36.18

32

29 .90

17 13.50

2

2.00

7

6.00

(0.50)

(1)

(1.00)

3

1.2S

HB SOSO A

14 of 41

Budget Narrative



TRANSPORTATION PROGRAM AREA

Department of Transportation

Authorized Positions

Full-time Equivalent (FTE) positions



Approved Budget

2019-21 Committee

Recommendation

3

0.42

Committee Change

3

0.42

The General Fund appropriations made in the bill are within resources available as projected in the May 2019 economic and revenue forecast by

the Department of Administrative Services (DAS), Office of Economic Analysis, supplemented by transfers from various agency accounts to the

General Fund for general governmental purposes as authorized in HB 2377, plus other actions to reduce state agency expenditures.

Summary of Capital Construction Subcommittee Action

HB 5050 appropriates General Fund to the Emergency Board for general purpose and targeted special purpose appropriations and makes other

adjustments to individual agency budgets and position authority as described below.

Emergency Board

The Emergency Board allocates General Fund and provides Lottery Funds, Other Funds, and Federal Funds expenditure limitation to state

agencies for unanticipated needs in approved agency budgets when the Legislature is not in session. The Subcommittee appropriated $75 million General Fund to the Emergency Board for general purposes.

HB 5050 makes seven special purpose appropriations to the Emergency Board, totaling $250.8 million General Fund . Agencies must make a

request to the Emergency Board to access these funds. The seven special purpose appropriations are:

• $200 million General Fund for state employee compensation changes.

• $20 million General Fund for allocation to state agencies for compensation changes driven by collective bargaining for workers who are

not state employees.

HB 5050 A

15 of 41

Budget Narrative


• $5.7 million General Fund for allocation to the Oregon Health Authority to support interdisciplinary assessment teams to provide

consultation, evaluation, and stabilization services to youth with behavioral health needs. This appropriation reflects one of the

recommendations of the Children and Youth with Specialized Needs Workgroup and is consistent with SB 1 (2019), which provides the

framework for establishing these teams.

• $20 million General Fund for allocation to the Public Defense Services Commission for activities designed to improve indigent defense

caseloads and to implement an improved public defense contract model.

• $1 million General Fund for allocation to the Public Defense Services Commission and the Department of Corrections or both, for costs

relating to prosecutions for the unauthorized use of a vehicle per HB 2328 (2019).

• $1,146,094 General Fund for allocation to the Secretary of State for costs relating to the implementation prepaid postage on ballot

return envelopes per SB 861 (2019).

• $3 million General Fund for the implementation of grand jury recordation and SB 505 (2017).

With the beginning of the statewide roll-out of grand jury recordation, questions have arisen regarding how grand jury recordation can be delivered in the most efficient, consistent, and economical method across the state given the Legislature's funding of similar recordation

services for circuit courts. To this end, the Subcommittee approved the following budget note.

Budget Note The Judicial Department, District Attorneys, and the Association of Oregon Counties are to report to the Interim Joint Committee on

Ways and Means in January of 2020 with a joint plan that provides for the most efficient, consistent, and cost effective delivery of grand

jury recordation across the state, including, but not limited to, the assignment by entity of responsibility for: (a) non-attorney staff to

manage recording equipment and train grand jurors on the use of recording equipment; (b) non-attorney staff to review and redact

grand jury recordings; (c) production of grand jury transcripts; and (d) information technology costs for the day-to-day upkeep of the

recording devices and the storage or archiving of recordings.

If these special purpose appropriations are not allocated by the Emergency Board before December 1, 2020, any remaining funds become

available to the Emergency Board for general purposes.

The Subcommittee established a reservation within the general purpose Emergency Fund of $10 million for the Department of Human Services

for the Child Welfare program as the agency continues to implement its action plan to improve child safety, stabilize the workforce, and help

foster families. The Department may request allocation of the reservation from the Emergency Board for efforts or initiatives not covered within the existing budget upon evidence that the additional funding will result in demonstrative improvements in Oregon's child welfare system.

HB 5050 A

16 of 41

Budget Narrative


A second reservation was established within the general purpose Emergency Fund of $9 million for the Oregon Health Authority for the purpose of supporting community mental health programs. The Oregon Health Authority may request allocation of the reservation from the Emergency Board if any or all of these funds are deemed necessary to maintain the 2017-19 level of on-going community mental health program services funded by the agency.

Adjustments to Approved 2019-21 Agency Budgets

STATEWIDE ADJUSTMENTS Statewide adjustments reflect budget changes in multiple agencies based on reductions in Department of Administrative Services' assessments and charges for services, Attorney General rates, Secretary of State assessments, and Parks assessments. Statewide adjustments also reflect net reductions to debt service realized through interest rate savings on bond sales, and Other Funds balances and interest earnings that can be applied to debt service. Total savings are $66.2 million General Fund, $13.7 million Lottery Funds, $34 million Other Funds, and $11 million Federal Funds.

Specific reductions include $37.1 million total funds from lower Department of Administrative Services assessments and service rates; $31.1 million total funds from PERS rate updates; $39.8 million total funds from debt service interest rate savings and refunding of outstanding bonds; $8.1 million total funds from lower Attorney General rates; and $2.6 million total funds from lower Secretary of State and Parks assessments.

Section 161 of the budget bill reflects the changes, as described above, for each agency. These adjustments are included in the table at the beginning of the budget report but are not addressed in the individual agency narratives. Additionally, new Other Funds debt service expenditure limitations for multiple agencies are established to accommodate the use of fund balances for debt repayment.

ADMINISTRATION

Department of Administrative Services The Subcommittee approved various one-time General Fund appropriations to the Department of Administrative Services for the following purposes:

HB 5050 A

17 of 41

Budget Narrative


• $7,500,000 for disbursement to the United Way for census outreach and coordination activities

• $2,000,000 for disbursement to Clatsop County for the Clatsop County Jail

• $2,000,000 for disbursement to Innovation Law Lab for Immigration Defense

• $1,500,000 for disbursement to Josephine County for rural fire protection district start-up costs once the district is created

• $1,000,000 for disbursement to City of Salem for the Gerry Frank/Salem Rotary Amphitheater

• $1,000,000 for disbursement to Umatilla-Morrow Head Start for an Early Learning Center

• $1,000,000 for disbursement to Umatilla County for surface water pumping costs of groundwater rights holders in Critical Groundwater

areas

• $700,000 for disbursement to Central Linn School District for the 6th-8th grade Cobra Academy

• $500,000 for disbursement to Siuslaw Regional Aquatics Center for renovations of the Mapleton Pool

• $500,000 for disbursement to Tucker Maxon School for capital improvements

• $500,000 for disbursement to Association of Oregon Counties for urban growth boundary planning grants to Eastern Oregon Counties

• $500,000 for disbursement to Oregon Thoroughbred Owners and Breeders Association for safety improvements at race tracks holding

race meets and education for thoroughbred owners and breeders

• $500,000 for disbursement to Lutheran Community Services Northwest for drug abuse programs

• $500,000 for disbursement to Special Olympics Oregon for sports training and athletic competition

• $485,000 for disbursement to Clackamas County for Clackamas Women's Services

• $452,930 for disbursement to Douglas Timber Operators for a Rogue River Sediment Study

• $400,000 for disbursement to Historic Portland Public Market Foundation for the James Beard Public Market

• $300,000 for disbursement to City of Independence for a Mid-Willamette Valley Trolley

• $300,000 for disbursement to Ecumenical Ministries of Oregon for its runaway homeless youth program

• $250,000 for disbursement to Liberty House of Salem for childhood abuse assessment and support services

• $175,000 for disbursement to Harney County School District #lJ to drill a potable water well

• $100,000 for disbursement to Save the Salem Peace Mosaic to protect the River of Peace mosaic

• $30,000 for disbursement to Klamath County to acquire, install, and maintain stream gauges in the Klamath Basin

The Subcommittee added $61,331,872 Other Funds expenditure limitation for one-time costs of special payments associated with the disbursement of proceeds from 2019-21 Lottery Bond sales; projects are detailed below and approved in HB 5030. Cost of issuance for these

projects totals $1,247,463. There is no debt service allocated in the 2019-21 biennium, as the bonds will not be sold until the spring of 2021.

Debt service payments on all the projects described below are estimated to be $10,581,755 Lottery Funds for the 2021-23 biennium and

$105,334,738 over the life of the bonds.

• $15,000,000 Other Funds for disbursement to Eugene Family YMCA Facility

• $10,000,000 Other Funds for disbursement to City of Roseburg - Southern Oregon Medical Workforce Center

HBSOSO A

18 of 41

Budget Narrative


• $5,000,000 Other Funds for disbursement to Oregon Coast Aquarium

• $5,000,000 Other Funds for disbursement to YMCA of Columbia-Willamette to purchase the Beaverton Hoop YMCA

• $4,100,000 Other Funds for disbursement to Jefferson County - Health and Wellness Center

• $3,500,000 Other Funds for disbursement to Parrott Creek Child & Family Services - Building Renovation

• $2,500,000 Other Funds for disbursement to Center for Hope and Safety - Hope Plaza

• $2,500,000 Other Funds for disbursement to Wallowa Valley Center for Wellness

• $2,400,000 Other Funds for disbursement to Port of Cascade Locks - Business Park Expansion

• $2,311,872 Other Funds for disbursement to Multnomah County School District #7 - Reynolds High School Health Center

• $2,000,000 Other Funds for disbursement to City of Gresham - Grad in Community Sports Park

• $2,000,000 Other Funds for disbursement to Curry Health District - Brookings Emergency Room

• $2,000,000 Other Funds for disbursement to Hacienda Community Development Corporation - Las Adelitas Housing Project

• $1,600,000 Other Funds for disbursement to Umatilla County Jail - Expansion/Mental Health Facility

• $1,400,000 Other Funds for disbursement to Port of Morrow - Early Learning Center Expansion

The Subcommittee approved an increase of $27,405,993 Other Funds expenditure limitation for special payments associated with the

disbursement of proceeds from Lottery Bonds issued in previous biennia that have yet to be fully disbursed to grantees .

The Subcommittee added $10,525,000 Other Funds expenditure limitation for one-time special payments associated with the disbursement of

proceeds from Article XI-Q general obligation bond sales; projects are detailed below and approved in H B 5005. Cost of issuance for these

projects totals $199,075. There is no debt service allocated in the 2019-21 biennium, as the bonds will not be sold until the spring of 2021. Total

debt service on the projects described below is estimated at $2,257,480 General Fund for the 2021-23 biennium and $15,834,095 General Fund

over the life of the bonds.

• $5,325,925 Other Funds for disbursement to the Oregon State Fair for facilities capital improvements

• $3,000,000 Other Funds for disbursement to the Oregon State Fair for improvements to and repairs of the Horse Barn

• $2,000,000 Other Funds for disbursement to the Oregon State Fair for improvements to and repairs of the Poultry Barn

The Subcommittee approved $4,527,721 in additional Other Funds Debt Service to support repayment of Article XI-Q General Obligation bond

proceeds approved in HB 5005 that will be issued before the end of the biennium to support DAS projects, and an Other Funds expenditure limitation increase of $800,000 was included for the cost of issuance of the bonds.

One-time General Fund increases to on-going operating subsidies for the Oregon Historical Society ($1,250,000) and Oregon Public Broadcasting ($500,000) were also approved.

HB 5050 A

19 of 41

Budget Narrative


The Subcommittee approved a technical adjustment for the Public Records Advocate Office which increased Personal Services by $113,406 and

reduced Services and Supplies in the Department of Administrative Services Chief Operating Office not related to the Public Records Advocate

Office by a like amount, for a net zero change. Two limited duration full-time positions (2.00 FTE) were approved (an Operations & Policy

Analyst 4 and a State Procurement Analyst) to backfill DAS employees who will be working with the Public Employee Retirement System (PERS) on information technology solutions needed to implement SB 1049, which made significant changes to public employees' retirement. The cost

of the DAS positions dedicated full-time to the PERS project to implement SB 1049 will be paid by PERS.

Office of the Governor

A General Fund appropriation of $250,000 was approved for the Office of the Governor to provide administrative support for the Council on

Wildfire Response established by executive order number 19-01. The Council was created to review Oregon's current model for wildfire

prevention, preparedness, and response and provide recommendations to strengthen, improve, or replace the existing model. The

recommendations of the council will be presented to the Governor no later than September 30, 2019 .

Oregon Liquor Control Commission

Other Funds expenditure limitation in the amount of $233,400 is included for the Oregon Liquor Control Commission to support a permanent, full-time internal auditor position. The position will help to evaluate and improve internal processes with the goal of increasing productivity and

minimizing risk throughout the agency's various divisions.

Secretary of State

To address the costs of implementing HB 2983 relating to campaign finance, the Subcommittee appropriated $336,696 General Fund to the

Secretary of State's Elections Division and authorized the establishment of two new limited duration Compliance Specialist 2 positions (1. 75

FTE). These positions will be used to manually accept, review, and maintain lists of filings; answer questions; conduct investigations; oversee civil penalties and case hearings; and fulfill public records requests. Over time, some of these manual processes will be able to be moved online

reducing personal services costs, but potentially incurring one-time information technology expenditures. The agency can report back to the

Legislature during the 2020 legislative session on progress in implementing HB 2983.

HBSOSO A

20 of 41

Budget Narrative


CONSUMER AND BUSINESS SERVICES

Department of Consumer and Business Services An increase in Other Funds expenditure limitation of $262,610 and the authorization to establish a permanent full-time position (1.00 FTE) in the

Division of Financial Regulation, working on the Senior Health Insurance Benefit program, was approved by the Subcommittee. The position is

being restored from a reduction taken in the agency's 2019 budget bill.

The Subcommittee approved an increase in the Federal Funds expenditure limitation to the Department of Consumer and Business Services of

$780,000 to allow the agency to expend federal grant funds awarded but not fully expended during the 2017-19 biennium from the Centers for

Medicare and Medicaid Services for the planning and implementing of certain insurance market reforms under Title 27 of the Public Health

Service Act.

ECONOMIC AND COMMUNITY DEVELOPMENT

Oregon Business Development Department The Subcommittee approved a one-time General Fund appropriation of $10,000,000 for the Oregon Business Development Department (OBDD) to deposit in the University Innovation Research Fund (UIRF) established in HB 2377. Other Funds limitation of $10,000,000 was also established

to accommodate distribution of monies from the UIRF. The UIRF will support grants to public universities and the Oregon Health and Science

University to match competitive federal research awards, increasing the competitiveness of Oregon universities for federal research funds,

leveraging federal grants that require matching funds, and supporting innovation and research capacity. Grants will be targeted in priority industries, such as advanced manufacturing, high technology, outdoor gear and apparel, health care innovation, food and beverage, and forestry

and wood products.

Lottery Funds expenditure limitation for the Strategic Reserve Fund (SRF) was increased by $2,000,000, bringing total ongoing Lottery Funds support for SRF to $8,978,100, not including limitation of $3,718,693 that was provided to expend the program's estimated beginning balance of

committed project awards. The Subcommittee also increased Lottery Funds expenditure limitation by $5,000,000 for the Oregon Manufacturing and Innovation Center (OMIC) operating and research expenses, bringing total Lottery Funds support for OMIC operations in the Department's

budget to $8,736,800.

The Subcommittee approved increasing Lottery Funds by $175,350 and Other Funds by $30,944 in the Operations Division to establish an Internal Auditor 3 position (0.88 FTE). The approved amount includes $194,794 for personal services and $11,500 for associated services and

supplies expenditures.

HB 5050 A

21 of 41

Budget Narrative


The Subcommittee approved one-time Lottery Funds expenditure limitation of $3,600,001 in the Infrastructure Division for the following projects and programs:

• $500,000 for City of Sandy - Wastewater System Planning and Permitting

• $500,000 for Columbia Corridor Drainage Districts Joint Contracting Authority - Levee Ready Columbia

• $1,600,000 for Port of Port Orford - Port of Port Orford Cannery Redevelopment

• $1,000,000 for City of Astoria - Warehouse Site Cleanup and Redevelopment

• $1 for Tide Gates and Culverts Repair and Replacement Program

A lottery allocation of $6,000,000 for the Tide Gates and Culverts Program is included in HB 5029. The Legislature or Emergency Board will

increase the Lottery Funds expenditure limitation for the program after the Department presents a request that includes a proposal, developed in coordination with the Oregon Watershed Enhancement Board, for distributing grants and loans for the repair and replacement of tide gate

and culvert infrastructure. The proposal should address eligible recipients, matching fund requirements, maximum awards for planning and

construction grants and loans, criteria for prioritizing project requests, and necessary coordination with state, local, and federal agencies, as well as surrounding landowners or other entities, required for project implementation .

The Subcommittee approved one-time Lottery Funds expenditure limitation of $2,125,000 for the Arts Commission to distribute the following grants:

• $375,000 for Cottage Theatre - ACT Ill Theatre Expansion

• $250,000 for High Desert Museum - By Hand Through Memory Exhibit Renovation and Art of the American West Gallery

• $1,000,000 for Liberty Theatre - Stage House and Facilities Improvements

• $500,000 for Oregon Nikkei Endowment - Oregon Nikkei Legacy Center Renovations

Other Funds expenditure limitation was increased by $191,380,000 for distribution of general obligation and lottery bond proceeds authorized

in HB 5005 and HB 5030 for the following projects and programs:

• $100,000,000 for Seismic Rehabilitation Grant Program - Schools

• $20,000,000 for Seismic Rehabilitation Grant Program - Emergency Services Facilities

• $15,000,000 for Levee Grant Program

• $15,000,000 for Port of Coos Bay - Channel Deepening Project

• $1,880,000 for City of Mill City - Storm Drainage System Improvements

• $20,000,000 for City of Salem - Drinking Water System Improvements

• $7,000,000 for City of Sweet Home - Wastewater Treatment Plant Rehabilitation

HB 5050 A

22 of 41

Budget Narrative


• $7,800,000 for Confederated Tribes of the Warm Springs Reservation - Warm Springs Wastewater Treatment Plant, Water Meter, and

Water Distribution System Improvements

• $1,700,000 for City of Hood River - Waterfront Storm water Line Replacement

• $1,500,000 for Beaverton Arts Foundation - Patricia Reser Center for the Arts

• $1,500,000 for Lincoln City Cultural Center - Cultural Plaza and Exterior Grounds

The Subcommittee also increased Nonlimited Other Funds expenditures by $35,000,000 for distribution of lottery bond proceeds authorized for

the Special Public Works Fund ($30 million) and the Brownfields Redevelopment Fund ($5 million).

Other Funds expenditure limitation was increased by a total of $3,338,294 for costs of issuing the general obligation and lottery revenue bonds

authorized for the above projects. Bond proceeds are used to finance these costs.

The Subcommittee also established Other Funds debt service expenditure limitation of $157,290 to allow the agency to apply excess proceeds

and interest earnings to debt service payments in the 2019-21 biennium. An associated decrease in General Fund and Lottery Funds debt

service is included in the statewide debt service adjustments table.

Finally, General Fund debt service was increased by $4,535,118 for payments in the 2019-21 biennium on general obligation bonds authorized

for the Seismic Rehabilitation Grant Program. The additional debt service supports issuing $50.6 million of seismic rehabilitation bonds for

schools and $10.1 million of seismic rehabilitation bonds for emergency services facilities in spring 2020. The remaining seismic rehabilitation

bonds, and all lottery revenue bonds authorized for projects and programs in this budget, are scheduled to be sold in spring 2021, with related

debt service payments beginning in the 2021-23 biennium.

Housing and Community Services Department The Subcommittee approved adjustments for the Housing and Community Services Department totaling $70.1 million total funds. These

changes provide for administrative expenses, capital construction investments to create new affordable housing for low income and chronically

homeless Oregonians, programs funded by lottery bond proceeds, and expenditure limitation related to the passage of HB 2032. A permanent

procurement manager and additional months for a limited research manager (both PEM E) positions will ensure accountability and data-driven

decisions related to additional housing investments for the 2019-21 biennium. Expenditure limitation totaling $376,763 Other Funds and 1.50 FTE in position authority are included for this purpose.

Cost of issuance amounting to $730,000 Other Funds will allow for $SO million in Article XI-Q Bonds to finance the construction of an estimated

500 units of permanent supportive housing. The target population for the new permanent supportive housing units will be chronically homeless

individuals, including the following: formerly incarcerated people reentering the community, people with a severe and persistent mental illness

or substance use disorder, and chronically homeless veterans. Expenditure limitation for administration of rental assistance payments is

HB 5050 A

23 of 41

Budget Narrative


included for the estimated 200 units of permanent supportive housing that are anticipated to be available to residents by the last six months of the 2019-21 biennium. Rental assistance payments are financed by a transfer of funding from the Oregon Health Authority in the amount of

$2,932,331 Other Funds. These funds also provide for 2 positions (1.17 FTE). Of the total amount budgeted, $200,000 is for one-time costs

related to procurement and enhancement of a data system to track and deliver rental assistance payments . Staffing costs totaling $232,331

consist of a Program Analyst 3 for program setup and ongoing oversight and an administrative assistant position to process rent payments and

calculate subsidy amounts. The rent subsidy payments are expected to total approximately $999,996 Other Funds for the last six months of the

biennium. Other Funds expenditure limitation in the amount of $1.5 million will provide a rent guarantee to project investors and management

companies but is recommended to be unscheduled.

Costs associated with the issuance of $150 million in Article XI-Q Bonds for the local Innovation and Fast Track (LIFT) housing program, which

will finance the construction of an estimated 2,168 rental units for low income Oregonians, include the following: $1,550,000 Other Funds for

the cost of issuance, Other Funds expenditure limitation in the amount of $462,839 and position authority for an additional loan officer (0.50

FTE), a low-income housing tax credit analyst (1.00 FTE), a Fiscal Analyst 3 position for debt management (0.50 FTE), and General Fund in the

amount of $11,370,998 for debt service. Debt service supports issuing $75.8 million of bonds for the LIFT housing program in spring 2020, and

early issuance of bonds for permanent supportive housing.

Other Funds expenditure limitation totaling $15,278,750 is related to lottery bond proceeds totaling $15 million and is for project costs and cost

of issuance. The bonds will seed a revolving loan fund that will finance the acquisition of housing properties. This is an effort to keep these

properties affordable for residents at 60%-100% of area median income. There is also Other Fund expenditure limitation totaling $25,407,658

for costs related to lottery bonds to finance the preservation of existing affordable housing. Proceeds totaling $25 million will be awarded to

finance the preservation of 400 units of affordable housing. This can include publicly supported affordable housing, properties with federal

project-based rental assistance contracts, rent subsidies, manufactured dwelling parks, and properties undergoing recapitalization .

An increase in Other Funds expenditure limitation of $5 million and decrease in Federal Funds expenditure limitation of $1 million are included

for the agency's Housing Stabilization Program, which provides homeless assistance and is funded from Department of Human Services

Temporary Assistance to Needy Families (TANF) funds. Other Funds expenditure limitation in the amount of $10.5 million is included for a

housing pilot project pursuant to HB 2032 (2019). The project will competitively award TANF funding to be used in conjunction with local shares

of Emergency Housing Assistance (EHA) and other program dollars, to extend the period that families eligible for TANF can receive housing and

other assistance to keep them stably housed. Successful applicants for the housing pilot program will be expected to apply federal funds prior to

utilizing other funding, to ensure that TANF program funds are fully allocated for housing assistance provided through the pilot program. A

limited duration Program Analyst 3 position (0.92 FTE) will design the competitive funding award and monitor program outcomes. This funding

is not intended to be included in calculations used to estimate the cost of operations in future biennia .

HB 5050 A

24 of 41

Budget Narrative


The Low Income Rental Housing Fund program was eliminated because it was found to be redundant to the agency's Emergency Housing Assistance Program. Costs associated with two positions -- a Research Analyst 2 and a Program Analyst 4 position -- were shifted from General

Fund to Other Funds. This change reduced ongoing General Fund operating expenditures by a total of $935,504, while Other Funds expenditure

limitation was increased by $440,043 to accommodate the shift in position costs.

Oregon Department of Veterans' Affairs The Subcommittee added Lottery Funds expenditure limitation of $1,000,000 for a one-time grant to the YMCA of Marion and Polk Counties to

construct veterans' affordable housing adjacent to the new YMCA facility in Salem. Other Funds expenditure limitation of $4,000,000 was

established for distribution of lottery bond proceeds authorized in HB 5030 for the veterans' affordable housing project and an additional

$56,603 was provided for costs of issuing the lottery revenue bonds. Bonds are scheduled to be sold in spring 2021, so no debt service payments are due in the 2019-21 biennium. Lottery Funds debt service is estimated to be $690,005 in the 2021-23 biennium.

EDUCATION

State School Fund The Subcommittee approved increases of $5,101,078 General Fund and $471,972 Other Funds, as well as a decrease of $5,573,050 Lottery

Funds for the State School Fund. This change reflects the final balance of available Lottery Funds across the entire state budget as well as the most recent forecast of Marijuana-related revenues.

Department of Education

A total of $125,000,000 Other Funds expenditure limitation was approved for the Oregon School Capital Improvement Matching program

(OSCIM). The proceeds of the sale of Article XI-P general obligation bonds are used for grants to school districts which match the grants with proceeds of locally issued bonds for the construction and improvement of school district buildings and property. The Subcommittee also

approved $1,090,000 Other Funds expenditure limitation for the issuance costs of the Article XI-P bonds.

Higher Education Coordinating Commission Funding of $4,184,935 total funds was included in HB 5047, the Student Success budget bill, for the 2019-21 costs of the education-related Statewide Longitudinal Data System (SLDS) . That bill provided General Fund and Other Funds expenditure limitation to the Oregon Department

of Education (ODE) for transfer to the Higher Education Coordinating Commission (HECC) for the staffing, data processing, and other costs of the

SLDS which will be housed within HECC. These resources (expended by HECC as Other Funds) will support eight existing positions as well as the

HBSOSO A

25 of 41

Budget Narrative


addition of one Research Analyst position beginning in the second year of the biennium for a total of nine positions (8.50 FTE). Prior to 2017-19, the SLDS was part of the Chief Education Office which sunsets on June 30, 2019.

A General Fund appropriation of $975,000 was approved for a one-time grant to Treasure Valley Community College for a portion of the construction costs of a new Career and Technical Center. In 2009, the Legislature approved Article XI-G bonds for the original proposal for this project which was reauthorized in 2013 when the scope of the project was changed to expand and improve an existing building. In 2017, the

project was again reauthorized. Later in that year, the federal Economic Development Administration awarded the Community College a grant which is being used as a portion of the required match. This $975,000 grant will be used to make up the difference between the current cost of

the project and the previously estimated amount.

The Subcommittee approved transferring the responsibilities of the Criminal Justice Policy Research lnstitute's Law Enforcement Contacts Policy & Data Review Committee from Portland State University to the Criminal Justice Commission, thereby consolidating both quantitative and

qualitative data collection on traffic and pedestrian stops in one state agency. This action reduced the HECC budget for Public University Statewide Programs by $276,581 General Fund .

Total funding of $245,362 ($122,866 General Fund, $27,030 Other Funds, and $95,466 Federal Funds) was approved for a permanent Operations and Policy Analyst 4 position (1.00 FTE) to serve as HECC's Chief Culture, Diversity, and Inclusion Officer and will produce the Affirmative Action Plan, develop diversity and inclusion policies and trainings, analyze policies and procedures to ensure their contribution to the HECC's diversity

goals, and review and make recommendations to assist HECC in implementing the Equity Lens within the education and workforce programs.

The Subcommittee approved Other Funds expenditure limitation of $2,194,431 for the costs of issuance of bonds authorized in HB 5005 (Article XI-G and XI-Q bonds) and in HB 5030 (Lottery Bonds) for public universities and community colleges. Capital construction limitation for new capital projects is provided in HB 5006 and project descriptions are included in HB 5005.

The Subcommittee approved $2,000,000 General Fund for the Oregon State University (OSU) Extension Service to build fire resilience and resistance by expanding the OSU Forestry Extension pilot fire program into a statewide effort. OSU Forestry and Natural Resources Extension and the College of Forestry will build fire resilience and resistance on lands at risk of catastrophic wildfire by forming cross-boundary

partnerships and agreements, delivering landowner education and outreach, producing wildfire risk mitigation plans, assisting private landowners in developing land management plans, and implementing risk mitigation projects to reduce fuels . Regional Wildfire Extension

Specialists will be added in six key regions of the state.

The Subcommittee also approved increasing General Fund support for the OSU Agricultural Experiment Station by $2,270,000 and the OSU

Extension Service by $410,000 for an integrated river basin water quality and quantity program. Funding supports positions in the Agricultural Experiment Station (4.50 FTE) and Agricultural Extension Service (1.30 FTE) that will provide the expertise and capacity for systematic, coordinated regional research and education programs focused on helping to solve Oregon's growing ground and surface water management

HB SOSO A

26 of 41

Budget Narrative


challenges. Programs will address increasing water conservation, storage, and instream flows; integrating water and fertilizer management; and increasing irrigation efficiency.

A General Fund appropriation of $375,000 was approved for two organic agriculture faculty positions in the OSU Extension Service to support the Organic Farming Program at the OSU College of Agricultural Sciences. One position will be located at the OSU Corvallis campus to cover the

mid and southern valley regions. The second position will be located at the North Willamette Research and Extension Center and will support

crops, growers, and consumers in the north valley and metro regions. Funding is approved to support position costs beginning January 1, 2020, or 18 months of the 2019-21 biennium. The Subcommittee also approved a one-time General Fund appropriation of $125,000 to continue

funding in the Agricultural Experiment Station for the Berry Initiative. The approved amount supports a berry research position at the OSU

North Willamette Research and Extension Center.

The Subcommittee approved a one-time General Fund appropriation of $450,000 for the Oregon Institute of Technology (OIT) to support the

Oregon Manufacturing Innovation Center (OMIC) Research & Development (R&D) to begin research with equipment at the Rapid Toolmaking

Center for Excellence. A one-time General Fund appropriation of $300,000 was also approved for OIT system integration funds to develop additive manufacturing and prototyping training capability for students at the Klamath Falls campus.

General Fund debt service was increased by $955,149 for payments in the 2019-21 biennium on general obligation bonds authorized for distribution to OIT for the OMIC R&D Rapid Toolmaking Center for Excellence facility and research equipment. The debt service supports issuing

$6.6 million of Article XI-Q bonds for the project in October 2019. The remaining general obligation bonds approved for public university and

community college projects are scheduled to be sold in spring 2021, with related debt service payments beginning in the 2021-23 biennium.

Lottery Funds support for the Sports Lottery program was increased by $5,859,809, resulting in total Sports Lottery funding of $14,099,809. The

approved increase is allocated to the four technical and regional public universities, bringing the 2019-21 allocation for each to $2,440,560 (or

$2,440,561, due to rounding adjustments). Allocations to the remaining universities continue at the level approved in the prior two biennia.

Total funding will be the distributed to the public universities in the following amounts:

• $2,440,561 for Eastern Oregon University

• $2,440,560 for Oregon Institute of Technology

• $1,030,000 for Oregon State University

• $2,277,567 for Portland State University

• $2,440,560 for Southern Oregon University

• $1,030,000 for University of Oregon

• $2,440,561 for Western Oregon University

HBSOSO A

27 of 41

Budget Narrative


The Subcommittee also approved a reduction of $349,000 General Fund in the Public University Statewide Programs budget for Dispute

Resolution allocated to the University of Oregon's Office for Community Dispute Resolution and increased the budget for the Labor Education

and Research Center at the University of Oregon by $349,000 General Fund.

HUMAN SERVICES

Oregon Health Authority The Subcommittee approved $200,000 General Fund for providing fresh Oregon-grown fruits, vegetables, and cut herbs from farmers' markets

and roadside stands to eligible low-income seniors under the Senior Farm Direct Nutrition Program. Also included is $1,000,000 General Fund

for the same purpose for eligible individuals through the Women, Infants and Children Program. Both program enhancements are one-time

only.

HB 5050 makes General Fund and Federal Funds adjustments related to Medicaid cost containment efforts included in the agency's 2019-21

budget bill (SB 5525). The budget bill includes savings of $6.7 million General Fund and $25 million Federal Funds to reflect a reduced annual

average growth target of 3.3% for Oregon Health Plan capitation rates. Instead of this adjustment, the Subcommittee approved restoring the

annual growth target to 3.4% and replacing it with a non-caseload related General Fund savings target of $10 million.

The Subcommittee approved a $6 million General Fund increase for community mental health programs to help ensure, at a minimum, these

programs maintain the level of services provided in 2017-19 in light of budget adjustments made in the agency's 2019-21 budget bill based on

the declining caseload forecast.

Also included is Other Funds expenditure limitation of $1.5 million, Federal Funds expenditure limitation of $1.5 million, and two limited

duration positions (1.66 FTE) to support the fiscal impact of HB 2032 (2019). This bill creates a Mental and Behavioral Health Pilot Program to

award grants to up to four coordinated care organizations to assess gaps in access to Medicaid behavioral health services by Temporary

Assistance for Needy Family recipients. The Other Funds revenue will be realized through a transfer of funds from the Department of Human

Services.

As a technical adjustment, the bill reduces the expenditure limitation in the agency's 2019-21 budget bill for Lottery Funds revenue allocated

from the Administrative Services Economic Development fund by $2.5 million and establishes a separate expenditure limitation of $2.5 million

for Lottery Funds revenue allocated from the Veterans' Services Fund. This adjustment is necessary to ensure the transfer of Measure 96 Lottery

Funds revenue from the Veterans' Services Fund is authorized to take place to support veterans' behavioral health services, as intended in the

agency's budget bill.

HB 5050 A

28 of 41

Budget Narrative


The Subcommittee also established Other Funds debt service expenditure limitation of $216,435 to allow the agency to apply excess proceeds and interest earnings to debt service payments in the 2019-21 biennium.

The Subcommittee established expenditure limitation of $1.5 million Other Funds, subject to available revenue, from the Community Housing Trust Account (which must be expended in accordance with section 431, chapter 595, Oregon Laws 2009) to support facility improvements to

help people with mental illness. The intent of this adjustment is to help more Aid and Assistance patients receive restorative services in the

community instead of at the Oregon State Hospital.

To support the ongoing effort by the Department of Human Services to develop and implement the ONE Integrated Eligibility and Medicaid Eligibility (ONE IE & ME) system, the Subcommittee approved $671,490 General Fund, $11,216,676 Other Funds expenditure limitation,

$1,638,121 Federal Funds expenditure limitation, and 45 positions (34.52 FTE). Of these positions, 20 are limited duration.

The Subcommittee also approved $1 million General Fund for competitive grants to support sobering center planning and startup costs. Support

for startup costs can include funding for operational expenses during a sobering center's first five years of operations. This funding is one-time and should be phased-out in the 2021-23 budget.

Department of Human Services The Subcommittee approved two food-related investments in the Self Sufficiency program. The first is $1,300,000 General Fund, on a one-time

basis, for the Oregon Hunger Response Fund, which sustains the 2017-19 funding level. Funding is expected to help the Oregon Food Bank,

through its network of 21 regional food banks, acquire and distribute more than one hundred million pounds of food annually to approximately

1,200 food assistance sites.

The second is $1,500,000 General Fund for the Double Up Food Bucks program, also on a one-time basis, to incentivize fruit and vegetable

consumption among Supplemental Nutrition Assistance Program (SNAP) recipients . Under this program, when clients use their SNAP benefit at a farmers' market, the value of that purchase is matched dollar for dollar (up to $10 per visit), allowing them to take home more healthy food

while also providing a financial benefit to local farmers. Eligible products include a variety of fresh, dried, or frozen fruits and vegetables without added sugars, fats, oils, or salt. Mushrooms, cut herbs, dried beans, vegetable starts, and nuts are also allowed under the program.

In the Aging and People with Disabilities (APD) program, the Subcommittee added $2,235,831 General Fund to restore a budget reduction

included in HB 5026, the primary budget bill for the Department of Human Services (DHS). These dollars, which augment federal Older

Americans Acts funding, will be distributed to local Area Agencies on Aging to help pay for services including home-delivered meals, support for family caregivers, and transportation to medical appointments.

Another adjustment approved by the Subcommittee for APD is a $251,600 one-time fund shift from General Fund to Other Funds in the nursing facilities program; this change relies on a projected carryforward balance in the long-term care facility assessment. Then, the General Fund is

HBSOSO A

29 of 41

Budget Narrative


used, along with an increase of $167,188 in Federal Funds expenditure limitation, to pay for two (1. 76 FTE) permanent full-time Operations and Policy Analyst 3 positions; these are phased-in effective October 1, 2019. One position will promote the effective use of emergency medical services by residents of licensed long term care settings and the other position will support efforts of the quality measurement council.

For the Intellectual and Developmental Disabilities (IDD) program, the Subcommittee made a budget adjustment to account for SB 274 not moving from the Joint Committee on Ways and Means to the second chamber, due to the measure having unresolvable conflicts with an already enrolled 2019 measure (SB 20). The DHS budget bill, HB 5026, contains increases of $268,514 General Fund, $267,674 Federal Funds expenditure limitation, and 3 positions (2 .64 FTE) to implement SB 274; these amounts are reversed.

The Subcommittee also discussed provider rate increases approved in HB 5026, the DHS 2019-21 budget bill, and how to best ensure that information on rates for adult foster homes is included in an interim report. As a result, the Subcommittee approved the following budget note:

Budget Note Under a budget note in the budget report for HB 5026, the Department of Human Services is directed to report, by February 1, 2020, to the Interim Joint Committee on Ways and Means on the transition to new rate models for providers in the Intellectual and Developmental Disabilities program . As part of that report, the Department shall provide a status update on the development of a new rate model for adult foster homes serving people with intellectual and developmental disabilities and note any outcomes or ti melines related to union negotiations, since these rates are collectively bargained.

The Subcommittee appro ved funding for the final development phase, implementation, and transition to Maintenance and Operations (M&O) of an integrated eligibility system, called the Integrated Eligibility (IE) project. This effort integrates enrollment and eligibility activities for several programs at the Department of Human Services (DHS) (Non-MAGI Medicaid, Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Employment Related Day Care (ERDC)) into the OregonONEligibility (ONE) system used by the Oregon Health Authority (OHA).

Due to schedule changes and issues with the user acceptance testing vendor, the 2019-21 cost estimate for the project has increased over the budget development timeframe; some costs also shifted between biennia . The project's current cost estimate and approved amount for the 2019-21 biennium is $200,561,925 total funds. This budget includes state staff costs of $20. 7 million, $94 million for contracted information technology services, $11.2 million for payments to OHA for its project work, and $5.8 million for debt service. Other elements addressed in the project plan include cost allocation, contingency, legacy system work, hosting services, disaster recovery, and security enhancements. The state staffing component consists of 33 positions (30.78 FTE) and primarily supports business analytics , system program support, and training activities; 17 of the positions (14.78 FTE) are limited duration for system rollout and short-term training needs.

The bulk of the project budget, at $139.7 million or 70% of 2019-21 costs, is supported by Federal Funds; this is due to enhanced federal funding (74% federal/26% state) approved for the Design, Development, and Implementation (DDI) phase of the work, which is e xpected to be closed

HB 5050 A

30 of 41

Budget Narrative


out by January 31, 2021. Once the system transitions to M&O in the last six months of the biennium, the federal cost share decreases. General Fund supports $16.9 million of project costs and debt service; the bulk of the state share will be covered by $43.9 million in ending balance or

new proceeds from Article XI-Q bonds. In HB SOOS, the Joint Committee on Ways and Means Subcommittee on Capital Construction approved

$38,16S,OOO Article XI-Q bonds to finance $37,SOO,OOO of project costs and $66S,OOO for costs of issuing the bonds.

The Joint Legislative Committee on Information Management and Technology (JLCIMT) reviewed the project on June 4, 2019, and

recommended conditional approval, contingent on funding availability and subject to completion of several actions. These actions include

reporting to JLCIMT during the legislative interim and the 2020 session on project status, progress, and variances to key performance metrics;

and developing a mitigation plan for issues and concerns identified by the quality assurance vendor and/or the Legislative Fiscal Office. The

mitigation plan is to be provided to JLCIMT no later than November 2019.

JUDICIAL BRANCH

Commission on Judicial Fitness and Disability

The Subcommittee approved an additional $16,000 for the Commission on Judicial Fitness and Disability to pay for compensation adjustments

made at the end of the 2017-19 biennium and for up to 20 hours a month of administrative support. The Commission only has a half-time Executive Director and the amount of materials necessary to provide the volunteer members of the Commission adequate information on

specifics of complaints requires additional support work.

Judicial Department The Subcommittee approved $1, 7SS,S16 General Fund and nine positions (9.00 FTE) for the Oregon Judicial Department to support

implementation of SB 24 (2019) and SB 973 (2019) related to supports and services for people with serious mental illness and substance

addictions. In addition, two new circuit court judge positions (1.00 FTE) were added, one in Jackson County and one in Marion County, as well as

six judicial services specialist positions (3.SO FTE) to be funded with $1,0S8,624 General Fund.

HBSOSO A

31 of 41

Budget Narrative


Other Funds expenditure limitation of $410,000 was approved for the cost of issuance of $28,230,000 in Article XI-Q bonds for the Oregon Judicial Department's Supreme Court Building Renovation Project. The project is to renovate the Oregon Supreme Court building, including seismic updates, energy efficiency improvements, and various systems and safety code upgrades. Bonds will be issued in March 2021.

Additionally, funds were added to the Judicial Department' s budget to continue renovating county courthouses. Specifically, $136,695,000

Other Funds is provided for project costs and the cost of issuing bonds for projects associated with the Clackamas, Lane, and Linn County

Courthouses. The budget also includes $1,300,000 Other Funds expenditure limitation for debt service costs and $2,000,000 General Fund for planning costs associated with replacing the Benton County Courthouse.

Public Defense Services Commission The Subcommittee restored one position and $305,853 Other Funds in the Public Defense Services Commission's Application Contribution Program that was reduced in the agency' s 2019-21 budget bill. In addition, effective July 1, 2020, the Parent-Child Representation Program will

be extended into Multnomah County with $3.5 million General Fund and one permanent full-time Deputy General Counsel position (1.00 FTE).

The Subcommittee approved the following two budget notes for the Public Defense Services Commission :

Budget Note The Oregon Public Defense Services Commission is directed to work with stakeholders to identify data public defense contractors should be required to submit to the Office of Public Defense Services as part of its contractual agreement . It is the Legislature's intent that

OPDS, in establishing reporting requirements, obtain data that to the greatest extent possible will allow the agency to determine (1) the level and quality of services provided to each defendant, and (2) improvements in case outcomes for defendants.

Budget Note The Oregon Public Defense Services Commission shall evaluate options for delivering indigent public defense services and adopt an approach that delivers quality public defense services. In its evaluation of public defense contract options, the Commission is directed to

consider the findings of the January 2019 report by the Sixth Amendment Center entitled "The Right to Counsel". As part of its new contract model, the Commission shall require contract attorneys to provide information the Commission determines is needed to demonstrate the level and quality of services provided, and the case outcomes.

LEGISLATIVE BRANCH Funding is provided to the Legislative Administration Committee (LAC) for the Document Publishing and Management System (DPMS) project, including Other Funds expenditure limitation in the amount of $5,168,000 for the cost of issuing general obligation bonds and for actual project costs to be incurred during the 2019-21 biennium. In addition, $766,117 General Fund is provided to LAC for debt service costs associated with

HB 5050 A

32 of 41

Budget Narrative


the DPMS project. LAC is also charged with planning for Phase II of the Capitol Accessibility, Maintenance and Safety (CAMS) Project; $1,361,800 General Fund is appropriated for this planning effort.

NATURAL RESOURCES

Department of Agriculture The Subcommittee approved four General Fund increases, each of them one-time only, for the Department of Agriculture (ODA) totaling

$1,200,000. First, $200,000 General Fund was added for the predator control program, which provides pass-through money to the U.S.

Department of Agriculture Wildlife Services for predator control services in partnership with the Department of Fish and Wildlife and Oregon

counties. A similar one-time appropriation is provided to the Department of Fish and Wildlife . Next, $300,000 General Fund was provided for additional funding to the Invasive Species Council, and $100,000 General Fund was added for the collection and testing of water samples from

Klamath Lake to analyze for nutrients, including phosphorous, which can lead to harmful algae bloom. Finally, $600,000 General Fund was added

for the replacement of lab equipment.

Columbia River Gorge Commission The Subcommittee approved an increase of $109,813 General Fund for the Columbia River Gorge Commission to finance Oregon's share of a

new Vital Sign Indicators Land Use Planner position and costs related to replacement of staff laptops and desk top computers. These

expenditures were included in the State of Washington's budget for the Commission but were not included in the initial Oregon budget due to

revenue uncertainties at the time of passage. With this appropriation, the agency will be able to hire the additional land use planner position since the operating costs of the Commission are to be shared equally by the two states under the Interstate Compact.

Department of Energy The Subcommittee approved a one-time General Fund appropriation of $2 million to the Department of Energy for the solar rebate program

established in HB 2618. The $2 million will be deposited into the Rooftop Solar Incentive Fund for the issuance of rebates and to pay for

implementation and administration of a solar rebate program. Of the $2 million, $1.5 million is available for rebates through Special Payments, with $500,000 available for administration . The Department will hire three limited duration positions, a Program Manager 3 (0.25 FTE) and two

Program Analyst 2 positions (0.50 FTE each). Additionally, the Department will utilize existing personnel to assist with program establishment,

implementation, and oversight. Personal Services costs are anticipated to be $255,258, with $83,138 for services and supplies and $161,604 for indirect costs associated with administering the program.

HB 5050 A

33 of 41

Budget Narrative


Department of Environmental Quality The Subcommittee approved a $250,000 one-time General Fund appropriation to provide grants to local communities for planning and

implementation of smoke management plans consistent with Oregon's new smoke management rules. The Department will utilize existing staff to administer and distribute the grant funds.

A technical adjustment was approved to accurately reflect the reduction of a position eliminated in the Department's 2019-21 budget bill (HB

5017). General Fund was reduced from the Land Quality program to reflect the eliminated position; however, the position was funded across

three programs, and an adjustment is made to reduce General Fund in Air Quality and Water Quality with a corresponding increase to Land

Quality for a net zero impact.

The Subcommittee approved $5,065,000 Article XI-Q bonds to finance $5,000,000 of project costs and $65,000 for costs of issuing the bonds.

The Environmental Data Management System (EDMS) project is to develop and implement a customized off-the-shelf software solution that will replace multiple outdated and disparate information technology systems. The EDMS project will modernize and improve business processes by

providing a common platform to receive and share environmental information and support e-commerce and web-based interactions. Early

estimates indicate the EDMS project will cost around $18 million to be completed. Also approved is $834,752 General Fund for the debt service associated with the bonds, which are scheduled to be sold in May 2020.

Department of Fish and Wildlife The Subcommittee approved a $200,000 one-time General Fund appropriation for the predator control program, which provides pass-through

money to the U.S. Department of Agriculture Wildlife Services for predator control services in partnership with the Department of Agriculture

and Oregon counties. A similar one-time appropriation is provided to the Department of Agriculture.

The Subcommittee approved a $1,352,102 Other Funds expenditure limitation to continue operations of the Leaburg Hatchery. The Department will utilize a portion of the General Fund provided in SB 5510 for steelhead production to raise some of those fish at Leaburg instead of at the

Santiam Hatchery. This will allow the Santiam Hatchery to continue to produce its current level of both steelhead and spring chi nook, while

Leaburg will be able to produce the summer steelhead and transport them to the Santiam waterways. To properly align the Department's

budget and position need for the continued operation of Leaburg, there is a reduction of $866,091 Federal Funds limitation that was carryforward in the budget from 2017-19, the abolishment of a full-time technician position, and the addition of a half-time senior technician

position, leaving a net reduction of 0.50 FTE. Total staffing at Lea burg will be 7 positions (6.50 FTE) funded with Other Funds fishing license

revenue.

HB 5050 A

34 of 41

Budget Narrative


Department of Forestry A one-time General Fund appropriation of $200,000 to the Oregon Department of Forestry was approved to purchase a tract of timber land

adjacent to the Santi am State Forest for inclusion in the Santiam State Forest. Purchase of the property is intended to resolve a legal dispute

between the current owner and the Department of Forestry regarding access to the roughly 160-acre parcel. Access is limited due to the

condition and availability of a logging road crossing existing state forest property that requires rebuilding.

A one-time General Fund appropriation of $1. 7 million to the Oregon Department of Forestry was approved for activities related to slowing or stopping the spread of Phytophthora ramorum, the invasive pathogen that causes sudden oak death.

The Subcommittee approved an increase of $52,035 in the Other Funds expenditure limitation established for the Oregon Department of

Forestry to accommodate the payment of bond issuance costs related to bonds issued for the replacement of a shared facility at Toledo. An increase of $121,559 General Fund and Other Funds expenditure limitation of $168,904 is included for the payment of debt service on the bonds

for the project.

Department of Land Conservation and Development The Subcommittee approved a one-time General Fund appropriation in the amount of $2,005,563 and the establishment of seven limitedduration positions (6.00 FTE) for the implementation of HB 2001 and HB 2003 by the Department of Land Conservation and Development. The

funding is in addition to General Fund appropriated in HB 2001 and HB 2003 for assistance to local governments and provides for the

administrative costs of the agency for implementing the provisions of the bills.

Department of Parks and Recreation

An increase in the Lottery Funds expenditure limitation of $448,769 was approved by the Subcommittee for the Oregon Parks and Recreation

Department. This increase is due to updated projections of Lottery revenues as of the May 2019 revenue forecast. This increase will provide the Department with sufficient capacity to distribute the 12% of lottery revenues allocated to the Department that are dedicated to local parks.

The Subcommittee approved the establishment of an Other Funds expenditure limitation for the Parks and Recreation Department in the amount of $33,023 for debt service. Investment earnings on non-expended bond proceeds are credited to the agency as Other Funds regardless

of the type of bond issuance. These earnings are then expended by the agency to offset the debt service expenditures from the fund type that

would otherwise be used. The offsetting reductions to Lottery Funds expenditure limitation for debt service are included in the statewide debt service adjustments.

HB 5050 A

35 of 41

Budget Narrative


An increase in the Other Funds expenditure limitation of $5,106,587 for the Oregon Parks Department was approved by the Subcommittee for the expenditure of lottery bond proceeds for the Oregon Main Street Revitalization program. The funding will be used to provide competitive

grants to organizations participating in the Oregon Main Street Network. The program awards grants to acquire, rehabilitate, and construct

buildings on properties in designated downtown areas and facility community revitalization that leads to additional private investment, job creation or retention, expansion or establishment of viable businesses, or creating a stronger tax base. Of the total increase, $106,587 is for the

costs of bond issuance.

Department of State Lands

An increase in Federal Funds expenditure limitation of $154,000 was approved for the Department of State Lands' South Slough National

Estuarine Research Reserve. The National Oceanic and Atmospheric Administration awarded a federal grant to the Department to expand the reserve's maintenance compound and enhance security for the reserve's facilities.

The Subcommittee approved an Other Funds expenditure limitation increase in the amount of $6 million for the Department of State Lands from the Portland Harbor Cleanup Fund. The agency will use the increased limitation to transfer $6 million from the fund to a trust account

established by the state and the city of Portland under a settlement agreement for remedial design with the U.S. Environmenta I Protection

Agency (EPA). The amount transferred will be matched by the city of Portland. Monies in the trust will be transferred to the EPA on an asneeded basis to fund the activities under the agreement.

Water Resources Department The Subcommittee approved the establishment of an Other Funds expenditure limitation for the Water Resources Department in the amount of

$394 for debt service. Investment earnings on non-expended bond proceeds are credited to the agency as Other Funds regardless of the type of

bond issuance. These earnings are then expended by the agency to offset the debt service expenditures from the fund type that would be used

otherwise. The offsetting reductions to Lottery Funds expenditure limitation for debt service are included in the statewide debt service

adjustments.

The Subcommittee approved a total increase of $25,521,689 in Other Funds expenditure limitation established for the Water Resources

Department for the purpose of making grants, loans, and paying the cost of bond issuance from lottery bond proceeds deposited into the Water

Supply Development Fund established under section 3, chapter 784, Oregon Laws 2013. Of the amount of additional limitation provided for the

expenditure of net bond proceeds allocated to the fund, $15,000,000 is for Water Supply Development grants and loans to evaluate, plan, and develop in-stream and out-of-stream water development projects that repair or replace infrastructure to increase the efficiency of water use;

provide new or expanded water storage; improve or alter operations of existing water storage facilities in connection with newly developed

water; create new, expanded, improved, or altered water distribution, conveyance, or delivery systems in connection with newly developed water; allocate federally stored water; promote water reuse or conservation; provide streamflow protection or restoration; provide for water

HBSOSO A

36 of 41

Budget Narrative


management or measurement in connection with newly developed water; and, determine seasonally varying flows in connection with newly developed water. The budget includes $521,689 for the payment of bond issuance costs. The remaining $10 million expenditure limitation is

for bond proceeds allocated to the fund for the Deschutes Basin Board of Control Piping Project. The funding will be combined with additional

state, local, and federal funds to allow the Board of Control to pipe currently open canals for a total project cost of $99.38 million.

The Subcommittee approved a total increase of $18,327,563 in the Other Funds expenditure limitation established for the Water Resources

Department for the purpose of making grants, loans, and paying the cost of bond issuance from lottery bond proceeds deposited into the Water Supply Fund established by section 10, chapter 906, Oregon Laws 2009. Of the total increase, $327,563 is for the estimated cost of bond

issuance. The budget includes $14 million for a grant to the Wallowa Lake Irrigation District for the rehabilitation of the Wallowa Lake Dam. The

remaining $4 million is for a grant to the City of Newport for planning, environmental permitting, and design costs to replace the Big Creek

Dams.

PUBLIC SAFETY

Department of Corrections

The Subcommittee approved a General Fund appropriation of $1,650,000 to the Department of Corrections for its Corrections Information System Tool Upgrade project.

The agency's General Fund appropriation for debt service was increased by $1,579,588 for debt service to be paid in 2019-21 on $47,835,000 in

Article XI-Q bonds for the Department of Corrections' deferred maintenance program, wireless communications system, and camera system.

Projects will be undertaken for facility improvements including building envelope, electrical systems, water systems, roofs, HVAC, fire systems

and infrastructure improvements; to acquire and install wireless communications systems at 10 correctional facilities for mobile radio

communications; and to acquire and install upgraded camera systems at 10 correctional facilities and place additional cameras in strategic

locations to improve monitoring of activity. Debt service for bonds issued in 2019-21 is estimated to be $12,463,107 General Fund in 2021-23.

The Subcommittee approved an increase in Other Funds expenditure limitation of $724,932 for cost of issuance of $47,835,000 in Article XI-Q

bonds for the Department of Corrections' deferred maintenance program. Bonds will be issued in May 2020 and in March 2021.

An Other Funds expenditure limitation for debt service of $51,378 was established for the Department of Corrections in order to allow the

agency to apply interest earned on bond proceeds to debt service on bonds.

HBSOSO A

37 of 41

Budget Narrative


The Subcommittee approved an Other Funds expenditure limitation increase of $4,585,442 for the Community Corrections program to allocate funding to counties from the Criminal Fines Account for the purpose of planning, operating, and maintaining county juvenile and adult

corrections programs and facilities and drug and alcohol programs. The Subcommittee approved the following budget note:

Budget Note:

The Department of Corrections shall require county recipients of Criminal Fines Account disbursements to report annually on the

programs and services funded with this allocation and on the number of clients served.

Oregon Department of Justice

The Subcommittee appropriated $700,000 General Fund to support the Oregon Crime Victims Law Center, as a one-time increase. This will

increase General Fund support for the Law Center from the Department of Justice (DOJ) from $342,081 to $1,042,081. This increase may

supplant the need for DOJ to provide the Law Center with a state grant funded from punitive damage awards. In addition, the Law Center may

continue to apply for, and possibly be awarded, federal Victim of Crime Act grant funding, as was the case during the 2017-19 biennium.

Oregon Military Department The Subcommittee approved an increase in Other Funds expenditure limitation of $348,000 for cost of issuance of $22,275,000 in Article XI-Q

bonds for Aviation Facility Emergency Enhancement projects in Salem and Pendleton, three Armory Service Life Extension projects at the Owen

Summers and Anderson Readiness Center facilities in Salem and at the Jackson Armory in Portland, and construction of exhibit space at the

Oregon Military Museum at Camp Withycombe. Bonds are planned to be issued in May 2020, and in March 2021.

The agency's General Fund appropriation for debt service was increased by $533,528 for debt service on $22,275,000 in Article XI-Q bonds

estimated to be paid in 2019-21. Debt service for these bonds is estimated to be $4,367,339 General Fund in 2021-23.

For a risk abatement study of the Critical Energy Infrastructure Hub located in Portland, the Subcommittee approved a one-time General Fund

appropriation of $300,000. The Office of Emergency Management will collaborate with the Department of Environmental Quality and the

Department of Energy to commission a study that will evaluate the impacts of a catastrophic failure of fuel storage facilities located at the Critical Energy Infrastructure Hub following a Cascadia subduction zone earthquake.

Criminal Justice Commission

The Subcommittee approved adding Other Funds expenditure limitation of $275,086 to the Criminal Justice Commission's 2019-21 budget to

allow the agency to spend a grant award from the Laura and John Arnold Foundation. Oregon is one of five states chosen to participate in the

HB 5050 A

38 of 41

Budget Narrative


National Criminal Justice Reform Project and will use the grant funds to gather and establish baseline data on Oregon's pretrial detention system

and pretrial jail population.

The Subcommittee approved transferring the responsibilities of the Criminal Justice Policy Research lnstitute's Law Enforcement Contacts Policy & Data Review Committee responsibilities from Portland State University to the Criminal Justice Commission, thereby consolidating both

quantitative and qualitative data collection on traffic and pedestrian stops in one state agency. This action adds $78,242 General Fund to the Criminal Justice Commission's 2019-21 budget and makes permanent an existing limited-duration Administrative Specialist 2 position.

To address the growth of the Criminal Justice Commission due to the programs, responsibilities, and positions added to the agency's budget

through other legislation passed in 2019, an existing Program Analyst 4 is reclassified to a Principal Executive Manager F position, to ensure

adequate managerial oversight of the grant programs operated by the Commission. This reclassification has no budget impact in 2019-21.

Department of Public Safety Standards and Training To accommodate a purchase not anticipated to be received by June 30, 2019, the Subcommittee approved increasing the Department of Public

Safety Standards and Training's 2019-21 Federal Funds expenditure limitation by $325,955 in order to carry forward a grant received from the

Federal Emergency Management Agency's Assistance to Firefighters grant program in 2018 for the purchase of a new fire truck. This is a onetime increase in expenditure limitation for the 2019-21 biennium.

Oregon Youth Authority The Subcommittee approved an increase in Other Funds expenditure limitation of $774,709 for cost of issuance of $34,430,000 in Article XI-Q

bonds to complete the remodel of seven living unit cottages at the Maclaren Youth Correctional Facility and dormitory spaces at the Rogue

Valley Youth Correctional Facility; remodel three medical and dental clinics; renovate the control rooms at the Oak Creek, Rogue Valley, and

Eastern Oregon youth correctional facilities; and undertake deferred maintenance projects in 2019- 21. Bonds are planned to be issued in October 2019, May 2020, and in March 2021.

The agency's General Fund appropriation for debt service was increased by $914,307 for debt service to be paid on $34,430,000 in Article XI - Q bonds in 2019-21. Debt service for these bonds is estimated to be $6,245,948 General Fund in 2021-23.

Other Funds expenditure limitation for debt service of $95,000 was established for the Oregon Youth Authority in order to allow the agency to apply interest earned on bond proceeds to debt service on bonds.

HB 5050 A

39 of 41

Budget Narrative


TRANSPORTATION

Department of Transportation The Subcommittee increased the Department of Transportation's (ODOT) Other Funds expenditure limitation, on a one time basis, by $5,149,463 for ODOT project costs and cost of issuing lottery bonds. This amount consists of $42,876 for the Sherwood Pedestrian Connectors

Project and $5,106,587 for the Coos Bay Rail Line and Bridge Replacement Project.

Additional one-time Other Funds expenditure limitation of $1,000,000 was approved for the Neskowin Emergency Egress Project in Tillamook

County. The source of funds for this project is the Transportation Operating Fund. The Transportation Operating Fund was also used to provide

one-time Other Funds expenditure limitation of $650,000 to support the upgrade and recapitalization of 44 electric vehicle charging station

locations known as the West Coast Electric Highway.

The Subcommittee approved the addition of three limited duration Transportation Service Representative 1 positions (0.42 FTE) and $221,442

Other Funds expenditure limitation to implement HB 2015 (2019).

Two budget notes were approved, as follows:

Budget Note The Department of Transportation shall study the 1-5 Boone Bridge Project and provide an estimate of the cost to complete the project.

The Department shall report back to the Joint Committee on Ways and Means and the Joint Committee on Transportation no later than

February 1, 2021.

Budget Note The Department of Transportation, in coordination with the City of Sherwood, shall report to the Joint Committee on Ways and Means

on the results of the City of Sherwood' s Pedestrian Connector Project implementation and related feasibility study and submit a funding request for the balance of project costs in February 2020.

HBSOSO A

40 of 41

Budget Narrative


Adjustments to 2017-19 Budgets


The Subcommittee approved a net-zero rebalance of $650,000 between General Fund appropriations and appropriated an additional $3,000,000 General Fund, on a one-time basis only, to the Department of Corrections to address the remainder of a known 2017-19 budget

shortfall of $20.2 million and additional unanticipated expenditures totaling $23.5 million. Unanticipated expenditures included emergency

repairs to facilities, spending on medication for Hepatitis C and for contract medical staff in prisons, computer replacements and necessary software upgrades, and to backfill a federal grant. The agency has mitigated its budget shortfall through management actions such as a hiring

freeze on management positions, limiting spending on staff training, reducing inmate alcohol and drug treatment costs, and limiting inmate

clothing orders through the end of the biennium, as well as by using Other Funds revenue where available.

HB 5050 A

41 of 41

Budget Narrative


HB 5030 A

80th Oregon Legislative Assembly- 2019 Regular Session

HB 5030 A STAFF MEASURE SUMMARY Carrier: Rep. Holvey


Action Date: 06/25/19

Action: De pass with amendments. (Printed A-Eng.)

House Vote Yeas: 7 -Gom berg, Holvey, McLain, Nosse, Piluso, Rayfield, Stark

Nays: 1- Mclane

Exe: 1- Smith G

Senate Vote

Yeas: 7 - Beyer, Freder ick, Johnson, Manning Jr, Roblan, Steiner Hayward, Wagner Abs: 5 - Baertschiger Jr, Girod, Hanse ll , Heard, Thomsen

Fiscal: Fisca l impact issued Revenue: Revenue impact issued

Prepared By: Amanda Beitel, Budget Analyst

Meeting Dates : 4/19, 6/25, 6/25

WHAT THE MEASURE DOES:

House Bill 5030 authorizes the issuance of lottery revenue bonds for speci fi ed projects.

A total of $273,211,872 of net lottery bond proceeds are authorized to be spent on 37 projects included in HB

5030. Tota l costs of issuance are estimated to be $5,040,491 and amounts required for debt service reserve

accounts are est imated to be $24,252,637. HB SOOS establishes statutory lottery revenue bond authority of

$302,505,000 to allow for the issuance of lottery revenue bonds in HB 5030; generating proceeds for project

costs, costs of issua nce, and debt serv ice reserves.

Authority to spend bond proceeds for project costs and pay for the cost of issu ing bonds is included in the budget

reconciliation (HB 5050) and capital construction (HB 5006) bills. Lottery revenue bonds are scheduled to be

issued in spring 2021 and debt service payments wi ll begin in the 2021-23 biennium.

Lottery revenue bonds are authorized for the projects listed on the following page.

ISSUES DISCUSSED: • Projects funded with net lottery bond proceeds

EFFECT OF AMENDMENT:

The introduced bill includes the lottery revenue bonds included in the Governor's Budget. The amendment

replaces the bill w ith the lottery revenue bonds authorized in the 2019-21 Legislative ly Adopted Budget.

BACKGROUND:

HB 5030

Section

10

11

12

Lottery Bond Projects

2019-21 Legislatively Adopted Budget

Project Project Funding

Department of Administrative Services

Oregon Coast Aquarium 5,000,000

Center for Hope and Safety - HOPE Plaza 2,500,000

City of Gresham - Gradin Community Sports Park 2,000,000


2019-21 Debt

Service

2021-23 Debt

Service

864,612

429,446

349,011

1 of 3

Budget Narrative


HB 5030A STAFF MEASURE SUMMARY

13 City of Roseburg - Southern Oregon Medical Workforce Center 10,000,000 1,726,955

14 Curry Health District- Brookings Emergency Room 2,000,000 349,011

15 Eugene Family YMCA Facility 15,000,000 2,569,340

16 Hacienda CDC - Las Adelitas Housing Project 2,000,000 349,011

17 Jefferson County - Jefferson County Health and Wellness Center 4, 100,000 699,976

18 Multnomah County School District- Reynolds High School Health Center 2,331,872 407,652

19 Parrott Creek Child and Family Services - Building Renovation 3,500,000 600,118

20 Port of Cascade Locks - Business Park Expansion 2,400,000 414,666

21 Port of Morrow - Early Leaming Center Expansion 1,400,000 248,803

22 Umatilla County Jail - Expansion for Mental Health Services 1,600,000 279,096

23 Wallowa Valley Center for Wellness 2,500,000 429,446

24 YMCA of Columbia-Willamette - Beaverton Hoop YMCA 5,000,000 864,612

61,331,872 10,581,755


37 City of Sherwood - Pedestrian Connectors 2,000,000 349,011

38 Port of Coos Bay- Coos Bay Rail Line Repairs and

Bridge Replacement 5,000,000 864,612

7,000,000 1,213,623

Department of Veterans' Affairs

39 YMCA of Marion and Polk Counties - Veterans' Affordable Housing 4,000,000 690,005

Higher Education Coordinating Commission

25 Blue Mountain CC- Facility for Agricultural Resource Management 6,500,000 1,115,125

Housing and Community Services Department

7 Affordable Housing Preservation 25,000,000 4,274,920

8 Affordable Market Rate Housing Acquisition Loan Program 15,000,000 2,960,060

40,000,000 7,234,980

Oregon Business Development Department

1 Special Public Works Fund 30,000,000 5,884,221

2 Brownfields Redevelopment Fund 5,000,000 992,087

27 City of Mill City- Storm Drainage Improvements 1,880,000 327,104

This Summary has not been adopted or officially endorsed by action of the committee. 2 of 3

Budget Narrative


HB 5030A STAFF MEASURE SUMMARY

Confederated Tribes of the Warm Springs

30 Reservation - Warm Springs Wastewater Treatment Plant, Water Meter, and Wate r Distribution System Improvements 7,800,000 1,335,592

31 City of Hood River - Waterfront Stormwater Line Replacement 1,700,000 299,194

33 Levee Grant Program 15,000,000 2,569,340

35(2)(a) Beaverton Arts Foundation - Patricia Reser Center for the Arts 1,500,000 263,859

35(2)(b) Lincoln City Cultural Center - Cultural Plaza and Exterior Grounds 1,500,000 263,859

42 Port of Coos Bay - Channel Deepening Project 15,000,000 2,569,340

106,380,000 19,126,605

Parks and Recreation Department

41 Oregon Main Street Revitalization Grant Program 5,000,000 864,612

Water Resources Department

3(2)(a) Water Supply Development Account 15,000,000 2,569,340

3(2)(b) Deschutes Basin Board of Control Piping Project 10,000,000 1,726,955

4 City of Newport- Big Creek Dams 4,000,000 789,895

5 Wallowa Lake Dam Rehabilitation 14,000,000 2,399,013

43,000,000 7,485,203

Total Lottery Bond projects authorized in HB 5030 273,211,872 48,311,908

This Summary has not been adopted or officially endorsed by action of the committee. 3 of 3

Budget Narrative


FISCAL IMPACT OF PROPOSED LEGISLATION Measure: HB 5030 - A 80th Oregon Legislative Assembly - 2019 Regular Session

Legislative Fisca I Office Only Impacts on Original or Engrossed

Versions are Considered Official

Prepared by: Reviewed by: Date:

Amanda Beite l

Michelle Deister, Paul Siebert, Matt Stayner, Doug Wilson, Gregory Jolivette June 26, 2019

Measure Description: Authorizes the issuance of lotter-y revenue bonds for the 2019-21 biennium.

Government Unit(s) Affected: Oregon Department of Veterans' Affairs (ODVA), Hous ing and Community Services Department (HCSD), Department of Administrative Services (DAS), Oregon Department of Transportation (ODOT), Water Resources Department (WRD), O.-egon Parks and Recr-eation Department (OPRD), Oregon Business Development

Department (OBDDL Hig h er Education Coord inating Comm ission (HECC)

Summary of Expenditure Impact: See Analysis

Summary of Revenue Impact: See Analysis

Analysis:

H ouse Bill 5030 authorizes the issuance of lottery revenue bonds for specified projects.

A total of $273,211,872 of net lottery bond proceeds are a uthorized to be spent on 37 projects funded in the

following state agencies:

Department of Administrative Services - $61,331,872

Department of Transportation - $7,000,000

Department of Veterans' Affairs - $4,000,000

Higher Education Coordinating Comm ission - $6,500,000

H ousing and Comm unity Services Department - $40,000,000

Oregon Business Development Department - $106,380,000

Parks and Recreation Department - $5,000,000

Water Resources Department - $43,000,000

Bond costs of issuance a r e estimated to be $5,040,491 . Amounts i ssued for deposit into debt service reserve

accounts are estimated to total $24,252,637. HB SOOS establis hes statutory lottery r eve nue bond authority of $302,505,000 to a llow for the issu ance of lottery r evenue bonds in HB 5030; gen erating proceeds f or project

costs, costs of issuance, a nd debt service r eserves as detailed above.

Other Funds limitation to expend bond proceeds for project costs and pay for the cost of issuing bonds is included in the budget reconciliation (HB SOSO) and capital construction (HB 5006) bills. Lottery revenue bonds

a r e schedu led to be iss u ed in the spring of 2021, so no debt service payments are due in the 2019-21 biennium.

Lottery Funds debt service is estimated to be $48,311,908 in th e 2021-23 biennium and $481,882,815 over the life of the bonds.

Page 1 of 1 HB5030-A

Budget Narrative


SB 5723

80th Oregon Legislative Assembly- 20:W 2nd Special Session

SB 5723 BUDGET REPORT and! MEASURE SUMMARY

Joint Committ@@ On Th@ S@cond Sp@cial SHs ion of .2020

Action Dattl': 08/10/20 Action : Do Pass.

House Vota

Yeas: 4 - Holvey, Rayf,eld, Smith G, Speaker l<ote!k Nays: 1- Oraz,H1

s .enate Vote

Ye.u: 3 - Johnson, President u:iurtney, Steiner Hayward Nays: 2 • Findley, Girod

Prepued By: Julie Neburka, Legislative Fi,sca l Office

R.eviiewed By: Keo Rooco and Theres.a McHugh, Legislat ive Fi~ca l Office

Emergency Board

2019·2

Various Agencies 2019-21

Thi.s summary has not l>ee<rl adopted or officially endorsed by action of the committee.

Carri@r: Rep. Rayfield

SB 5723

lof 83

Budget Narrative


Budget Summary* 2019-21 Legislatively 2020 Committee Committee Change fr om

Approved Budget Recom mendation 2019-21 Leg. Approved

$ Chance % Chance

Erne rge ncy Board General Fund - General Pul"IJ)ose $ 10,287,672 $ 210,287,672 $ 200,000,000 1944.1%

General Fund - Spedal Purpose Appropriiations Publ ic Defens•e ser.liioes and contract mode II $ 16,124,035 $ $ (16,124,035 ) -100.0 %

Publ ic Defens•e servi1oes - financial! management system $ 2,000,000 $ $ (2,000,000) -100.0 %

ODFW Oregon Conservation & Recreation Fund $ 1,000,000 $ $ (1,000,000) -100.0 %

OHS - Non-Medi1cai,d In-Home Services $ 4,000,000 $ $ (4,000,000) -100.0 %

OJD/DAs - Grand Jury Recordati1on $ 3,000,000 $ $ (3,000,000) -100.0 %

OHA - Youth with Behavioral! Health Needs $ 5,700,000 $ $ (5,700,000) -100.0 %

PDSC/DOC - Unauthorized Use of a Ve hide $ 1,000,000 $ $ (1,000,000) -100.0 %

DOJ - Chi ld Advocacy Cente r $ $ 1,000,000 $ 1,000,000 100.0 %

DHS/OHA - caseload changes $ $ 100,000,000 $ 100,000,000 100.0 %

ADM INISTRATION PROGRAM AREA

DeP:artment of Administrat1ive Services General Fund .$ 35,067,780 $ 37,887,780 $ 2,820,000 8 .0 %

General Fund Debt Service $ 6,799,405 $ 6,468,285 $ (33 1,120) -4.9 %

Lottery Funds Debt Service $ 17,457,806 $ 17, 169,452 $ (288,354) -1.7 %

Other Funds $ 689 ,663,13 1 $ 653,090,076 $ (36,573 ,055 ) -5 .3%

Other Funds Debt Service $ 444,720,744 $ 442,427,859 $ (2,292 ,885 ) -0 .5%

Federal Funds $ 1,238,930,000 $ 1,260,780,000 $ 2 1,850,000 1.8%

AdvocacvCommissions Office General Fund $ 756,596 $ 679,492 $ (77 ,104) -10.2%

Em~loyment Relations Board General Fund $ 2,956,273 $ 2,728,544 $ (227 ,729) -7.7 %

Other Funds $ 2,404,62 1 $ 2,632,350 $ 227 ,729 9.5%

Oregon Government Ethics Commission Other Funds $ 2,903,298 $ 2,964,690 $ 61,392 2.1%

Office of the Governor General Fund $ 16,666,702 $ 15,854,375 $ (812 ,327) -4.9 %

Other Funds $ 3,910,275 $ 4,072,275 $ 162 ,000 4 .1%

Budget Narrative


Budget Summa,ry* 2019-21 Legislatively 2020 Committee Committee Change from

Approved Budget Recommendation 2019-21 Leg. Approved

$ Chan,ge % Change

Oregon Liguor Control Commission Other Funds $ 247 ,046,67] $ 245,276,67 1 $ (1,770,000 ) -0 .7%

Public Emplol{ees Retirement Sl{stem General Fund $ 100,000,000 $ 64,751 ,802 $ (35,248,198 ) -35 .2%

Other Funds $ 263 ,256,648 $ 205,968,978 $ (57,287,670 ) -2 1.8%

Department of Revenue General Fund $ 198,123,562 $ 185,800,758 $ (12,322,804) -6 .2%

General Fund Debt Service $ 14,980,120 $ 14,287,394 $ (692,726 ) -4.6%

Other Funds $ 124,767,595 $ 137,495,585 $ 12,727,990 10.2%

Other Funds Debt Se1rv i ce $ 1,327,830 $ 2,018,471 $ 690,64 1 52.0%

Secretary of State General Fund $ 14,158,129 $ 13,847,047 $ (311,082 ) -2 .2%

Other Funds $ 63 ,888,057 $ 62,414,142 $ (1,473,915 ) -2.3%

State Library General Fund $ 4,200,159 $ 3,990,749 $ (209,410 ) -5 .0%

CONSUMER AND BUSIINESS SERVICES PROGRAM AREA

State Board of Accountancy Other Funds $ 2,788,351 $ 2,816,452 $ 28,10 1 1.0%

Consumer and Business Services General Fund $ 1,299,319 $ 1,299,319 $ 0.0%

Other Funds $ 397,0 14,796 $ 385,605,662 $ (11,409,134) -2.9%

Federa l Funds $ 100,670,278 $ 112,960,680 $ 12,290,402 12.2%

Construction Contractors Board Other Funds $ 15,038,579 $ 15,813,579 $ 775,000 5 .2%

Health Related Licensing Boards Occupational Therapy Licensing Board

Other Funds $ 61 9,842 $ 612,708 $ (7,134) -1.2%

Board of Med ical Imaging Other Funds $ 1,175,429 $ 1,176,838 $ 1,409 0.1%

Budget Narrative


Budget Summary* 2019-21 Le gislatively 2020 Co mm ittee Committee Change from

Approved Budget Recommendat ion 2019-21 Le g. Approved

$ Change % Change

Health Related Li censing Boards State Board of Examiners fo r Speech-Language Pathology and Audiology

Other Funds $ 979,115 $ 953 ,588 $ (25 ,527) -2.6%

Oregon State Veteni nary Medical! Examinii ng Board Other Funds $ 1,203,61 4 $ 1,220,264 $ 16,650 ].4%

Bureau of Labor and Industri es General Fund $ 15,0 13,956 $ 13,967,090 $ (1,046,866) -7.0% Lottery Funds $ 250,000 $ 250,000 $ 0.0%

Other Funds $ 13,953,296 $ 14,041,11 1 $ 87 ,815 0.6%

Federa l Funds $ 1,335,294 $ 1,335,29 4 $ 0.0%

License d Social Workers, Board of Other Funds $ 1,804,612 $ 1,992 ,,619 $ 188 ,007 10.4%

M ental Health Re g;ul artory Agency Licensed Prnf essi,onal Counselors and Therapiists

Other Funds $ 2,384,63 1 $ 2,755,667 $ 371,036 15.6%

Board of Psychology Other Funds $ 1,556,707 $ 1,479,057 $ (77 ,650) -5.0%

Board of Pharmacy Other Funds $ 8,761,878 $ 8,736,104 $ (25 ,774 ) -0 .3%

Real Estate Agency Other Funds $ 8,499,070 $ 9,398,485 $ 899,415 10.6%

ECONOM IC AND COMMUNIIITY DEVELOPMENT PROGRAM AREA

Oregon Busi ness Develo~ment De~artment General Fund $ 29 ,235,718 $ 30,077,48 2 $ 841 ,764 2.9%

General Fund Debt Service $ 56,176,824 $ 54,475,254 $ 11,701 ,570) -3.0%

Lottery Funds $ 79,057,62 3 $ 71,776,140 $ (7,281,483) -9.2%

Lottery Funds Debt Service $ 48 ,307,543 $ 45,764,6 21 $ (2,542,922 ) -5.3%

Other Funds $ 687,245,691 $ 672,193,326 $ (15,052,365 ) -2.2%

Other Funds Debt Service $ 157,290 $ 2,735,7 16 $ 2,578,426 1639.3%

Federa l Funds $ 43 ,094,384 $ 72,472,652 $ 29,378 ,268 68.2%

Budget Narrative


Budget Summary* 2019-21 Legislatively 2020 Committee Committee Change from


$ Change % Change

Employment Department Gene ral Fund $ 15,688,586 $ 9,508,586 $ (6,180,000) -39.4%

Other Funds $ 192,385,467 $ 192,822 ,907 $ 437,440 0.2%

Federa l Funds $ 154,315,171 $ 242,772,407 $ 88,457 ,236 57.3%

Housing and Community Services De eartment General Fund $ 97 ,398,648 $ 87,398,648 $ (10,000,000) -10.3%

Gene ral Fund Debt Service $ 28 ,569,838 $ 23 ,043 ,308 $ (5,526,530) -19.3%

Lottery Funds Debt Service $ 2 1,789,335 $ 21,752 ,234 $ (37,101) -0 .2% Other Funds $ 644 ,280 ,175 $ 654,071 ,299 $ 9,791,124 1.5%

Other Funds Debt Servi Ge $ 1,100 $ 38,202 $ 37,102 3372.9%

Federa l Funds $ 126,659,025 $ 200,315,609 $ 73,656,584 58.2%

Department of Veterans'' Affairs Gene ral Fund $ 7,974,857 $ 7,337,003 $ (637 ,854) -8.0% General Fund Debt Service $ 378,020 $ 358,174 $ (19 ,846) -5 .2%

Lottery Funds $ 20 ,559,847 $ 19,001,367 $ (1,558,480) -7.6%

Other Funds Debt Servii Ge .$ $ 20,000 $ 20,000 100.0%

Federa l Funds $ 1,525,000 $ 3,231 ,284 $ 1,706,284 111.9%

EDUCATION! PROGRAM AREA

Department of Education General Fund $ 868 ,141,654 $ 833,479 ,221 $ (34,662,433 ) -4.0%

General Fund Debt Service $ 3 1,133,753 $ 31,114,252 $ (19 ,501) -0 .1%

Other Funds $ 1,547,497,678 $ 1,213 ,919 ,141 $ (333,578,537) -21 .6% Other Funds Debt ServiiGe $ 9,331 $ 28,846 $ 19,515 209.1%

Federa l Funds $ 1,109,446,757 $ 1,24.8,756,548 $ 139,309,79 1 12.6%

State School Fund General Fund $ 7,718 ,687,417 $ 7 ,568,496,644 $ (150,190,773) -1 .9%

Lottery Funds $ 530,146,857 $ 730,467 ,530 $ 200,320,673 37.8% Other Funds $ 75 1,165,726 $ 701,035 ,826 $ (50,129,900) -6 .7%

Higher Education Coordi nating Commission General Fund $ 39,587,633 $ 32,114,364 $ (7,473 ,269) -18.9%

Other Funds $ 37,337,696 $ 49,748,567 $ 12,410,87 1 33.2%

Federa l Funds $ 127,560,060 $ 127,706,496 $ 146,436 0.1%

Budget Narrative



Approved Bu:dget Recommendation 2019-21 Leg. Approved

$ Change % Change

State SUE!E!Ort for Community Colleges Generali Fund Debt Service $ 28 ,954,449 $ 27,380,472 $ (1,573 ,977} -5.4% Other Funds Debt Servioe $ 3,126,855 $ 3,841,028 $ 714,173 22.8%

Other Funds $ 24 ,905,8]0 $ 24,928,593 $ 22 ,783 0.1%

State SUE!E!Ort for Public Universities Generali Fund $ 1,039 ,577, 708 $ 1,035,662 ,968 $ (3,914 ,740) -0.4%

Generali Fund Debt Service $ 177,386,107 $ 167,311,672 $ (10,074,435 ) -5 .7% Lottery Funds $ 93,150,451 $ 59,405,656 $ (2,265 ,292 ), -36.2%

Other Funds Debt Servi oe $ 4,876,783 $ 13,087 ,784 $ 8,211 ,001 168.4%

Other Funds Debt Servi oe Nonlimiited $ 224 ,257,728 $ 208,210,68 1 $ (16,047 ,047), -7.2%

Other Funds Nonlimited $ 412,573 $ 467 ,573 $ 55,000 13.3%

Oregon Healt,h Sciences University Generali Fund $ 79,161,533 $ 78,823,49 1 $ (338,042), -0.4%

Generali Fund Debt Service $ 23 ,8 16,150 $ 23 ,815,730 $ (420} 0.0%

Other Funds Debt Servi ce $ 30,9 19,866 $ 30,920,287 $ 42 1 0.0%

Other Funds Debt Servi ce Nonllimiited $ 7,298,890 $ 6,234,016 $ (1,064,874} -14.6%

Oregon OE!E!Ortunity: Grant Program Generali Fund $ 109,5 10,413 $ 99,510,413 $ (10,000,000), -9.1%

Other Funds $ 14,669,41.5 $ 24,669 ,415 $ 10,000,000 68.2%


Commission for the Bl ind Generali Fund $ 6,634,036 $ 6,218 ,539 $ (415,497} -6 .3% Other Funds $ 1,560,451 $ 2,060,45 1 $ 500,000 32.0%

Federal Funds $ 15,955,857 $ 18,508,300 $ 2,552,443 16.0%

Oregon Healt,h Authority Generali Fund $ 2,661,224,944 $ 2,51 5,495,703 $ (145,729 ,241), -5.5%

Generali Fund Debt Service $ 63 ,722,338 $ 60,024,589 $ (3,697,749 ), -5 .8%

Lottery Funds $ 17,093,071 $ 17,904,599 $ 811 ,528 4.7%

Other Funds $ 7,813,067,998 $ 7,955,577,038 $ 142,509,040 1.8% Other Funds Debt Servioe $ 2 16,435 $ 224,985 $ 8 ,550 4.0%

Federal! Funds $ 12,683 ,911,274 $ 13,960,060,406 $ 1,276,149 ,132 10.1%

Budget Narrative


Budget Summary* 2019-21 Legislatively 2020 Committee Committee Change fr.o:m

Ap~roved Budget Re-commendation 2019-21 Leg. Approved

$ Change % Change

De·~artment of Human Sesvices G nerall Fund $ 3,855,390,892 $ 3 ,645,091. ,815 $ (21 0,299 ,077} -5 .5% General Fund Debt Service $ 22,657,623 $ 21,294,053 $ (1,363 ,570} -6 .0%

Other Funds $ 704,801,492 $ 703,907,975 $ (893 ,517) -0 .1%

Federal! Funds $ 6,133,004,273 $ 6 ,304,72.4,533 $ 17 1,72.0,260 2.8%

Federal Funds Nonlimited $ 1,939,345,331 $ 2,489,345 ,331 $ 550,000,000 28.4%

Long Term Care Ombudsman Generali Fund $ 7,728,112 $ 7,287,294 $ (440,818} -5 .7%

Other Funds $ 845,016 $ 1,066,016 $ 221 ,000 26.2%

Psy:chiatri c Secu rit:'i Review Board Gene all Fund $ 3,J.98,150 $ 3,098,150 $ (11.00,000} -3 .1%

J UDICIAll. B!RANCH

Judicial Department Gene al Fund $ 494,874,779 $ 483,774,779 $ (11,100,000} -2.2%

General Fund Debt Service $ 27,383,694 $ 1'9,273 ,095 $ (8,U0,599} 100.0%

Other Funds $ 216,514,418 $ 114,329,418 $ (102, l85 ,000} -47.2%

Other Funds Debt Servi oe $ 1 ,300,000 $ 9,432,005 $ 8,132,005 100.0%

Public Defense Services Commission Gene al Fund $ 347,092,015 $ 340,895 ,203 $ (6,196,812} -1.8%

Other Funds $ 4,039,068 $ 13,039 ,068 $ 9,000,000 222 .8%

LEGISLATIVE BRAN CH

Legislative Administration Committee Generali Fund $ 47,8 14,546 $ 46,064,546 $ (1,750,000} -3 .7%

Gene al Fund Debt Service $ 11,274,124 $ 16,037,140 $ 4,763 ,016 42 .2%

Other Funds $ 6,959,630 $ 8,469,630 $ 1,510,000 21 .7%

Other Funds Debt Servi oe $ 4,867,000 $ 65 ,560 $ (4,801,440} -98.7%

Budget Narrative



Approved Budget Recommendat ion 2019-21 Leg. Approved

$ Change % Change

NATURAl RES OURCES PROGRAM AREA

State De~artment of Agricult ure Generali Fund $ 26,229,015 $ 23,706,541 $ (2,522,474) -9 .6%

Other Funds $ 74,372,889 $ 75,764,818 $ 1,391,929 1.9%

Federal Funds $ 17,472,153 $ 17,547,153 $ 75 ,000 0 .4%

State Department of Energy Generali Fund $ 6,334,048 $ 6,274,048 $ (60,000) -0 .9%

Other Funds $ 32,8 12,879 $ 32,794,87 1 $ (18,008) -0 .1%

Federal Funds $ 2,196,096 $ 3,271 ,354 $ 1,075 ,258 49.0%

Department of Environmental Q.ualitv Generali Fund $ 52,252,278 $ 47,936,894 $ (4,315,384) -8 .3% Generali Fund Debt Service $ 6,524,882 $ 6,368,955 $ (155,927) -2 .4%

Other Funds $ 222,204,270 $ 222,528,559 $ 324,289 0 .1%

State Department of Fish and Wildlife Generali Fund $ 35,094,508 $ 31,224,445 $ (3,870,063) -11.0%

Other Funds $ 203,027,596 $ 202,805,869 $ (221 ,727) -0 .1% Federal Funds $ 144,438,993 $ 144,857,087 $ 418,094 0 .3%

Department of Forestry Generali Fund $ 80,958,987 $ 87,263 ,555 $ 6,304,568 7 .8%

Generali Fund Debt Service $ 16,489,822 $ 16,418,449 $ (71 ,373) -0.4% Other Funds $ 283,057,822 $ 280,119,697 $ (2,938,125) -1.0%

Other Funds Debt Servi oe $ 668,774 $ 603 ,234 $ (65 ,540) -9 .8%

Federal Funds $ 35,483,276 $ 35,425,432 $ (57,844) -0.2%

Department of Land Conservaition and Develo~ment Generali Fund $ 20,231,675 $ 17,333,363 $ (2,898,312) -14.3%

Land Use Board of Appeals General Fund $ 2,061,858 $ 2,121,838 $ 59,980 2.9%

Department of Parks and Recreation Federal Funds $ 16,685,823 $ 17,350,823 $ 665,000 4.0%

Budget Narrative


Budget Summary* 2019-21 Legislative ly 2020 Committee Committee Change from


$ Change %Change

Department of State Lands Other Funds $ 54,079 ,207 $ 54,324,79 1 $ 245,584 0.5 % Federal Funds $ 2,295 ,209 $ 2,983,495 $ 688,286 30.0%

W ater Resources Depa,rtment General Fund $ 36,722 ,794 $ 3.3 ,210,095 $ (3 ,5 12,699) -9.6% Lottery Funds Debt Service $ 7,566,502 $ 7,563,194 $ (3,308) 0.0%

Other Funds $ 99,150,699 $ 99 ,702,961 $ 552,262 0.6%

Other Fun ds Debt Service $ 394 $ 3,703 $ 3,309 839.8% Federal Funds $ 875 ,5 19 $ 1,136,003 $ 260,484 29 .8%

PUBLIC SAFETY PROGRAM AREA

Department of Corrections General Fund $ 1,736,776,566 $ 1,759 ,924,168 $ 23 ,147,602 1.3%

General Fund Debt Service $ 117,154,410 $ 112,94a8,840 $ (4,205,570) -3.6% Other Funds $ 95,275 ,997 $ 95 ,979,042 $ 703 ,045 0.7%

Other Funds Debt Service $ 51,378 $ 66,358 $ 14,980 29.2 %

Oregon Criminal Justice Commission General Fund $ 79,843 ,528 $ 79 ,175,528 $ (668,000) -0 .8%

Federal Funds $ 5,337,957 $ 12,149,340 $ 6,811,383 127 .6% ~ -

DistrictAttorne:'f'.S and t ,heir Deputies General Fund $ 12,8 39,9 16 $ 13,339,916 $ 500,000 3.9%

Department of Justice General Fund $ 101,138,750 $ 96,108,238 $ (5 ,030,512) -5 .0%

Other Funds $ 355,837 ,618 $ 359,947,494 $ 4,109,876 1.2% Federal Funds $ 186,995,478 $ 212 ,643 ,937 $ 25 ,648,459 13.7%

Oregon Milita!Y Department General Fund $ 24,629 ,666 $ 22 ,665,897 $ (1,963 ,769) -8.0% General Fund Debt Service $ 11,603 ,502 $ 11,317,429 $ (286,073) -2.5%

Other Funds $ 133,945 ,223 $ 134,445,223 $ 500,000 0.4%

Other Funds Debt Service $ 133,050 $ 290,916 $ 157,866 118.7% Federal Funds $ 318,358,977 $ 316,713 ,29 1 $ (1,645,686) -0 .5%

Oregon Board of Parole and Post Prison Supervision General Fund $ 8,680,101 $ 8,353,511 $ (326,590) -3 .8%

Budget Narrative


Budget Summary* 201'9-21 Legislatively 2.020 Committe-e Co:mmi tee Change fr.om

Ap,proved Budget Recommendation 2019-21 Leg. Approved

$ Chang-e % Change

Oregon State Pol ice Genera Fund $ 318 ,475,460 $ 255,184,365 $ (63,291 ,095 ) -19.9%

Other Funds $ 164 ,937,371 $ 220,896,207 $ 55,958,836 33 .9%

Federal Funds $ 12,61 6,262 $ 1 3,721,105 $ 1,104,843 8.8%

D partment, o-f PubllicSafetv Standards and Training Genera Fund Debt Service $ 9 ,665,010 $ 9 ,357,609 $ (307,401) -3.2%

Other Funds $ 48 ,]02,591 $ 48,12.S,319 $ 2.2 ,728 0 .0%

Federal Funds $ 7,689,376 $ 8 ,118,463 $ 42.9 ,087 5.6%

Oregon Youth Authority Genera Fund $ 318 ,708,435 $ 308,294,951 $ (10,413,484) -3.3%

Genera Fund Debt Service $ 12,017,766 $ 11,153,998 $ (863 ,768 ) -7.2%

Other Funds $ 14,458,422 $ 14,439,875 $ (18,547 ) -0 .1%

Other Funds Debt Servioe $ 95,000 $ 408,100 $ 313 ,100 32.9 .6%

Federal Funds $ 40 ,643,083 $ 36,319,995 $ (4,323 ,088 ) -10.6%

TRANSPO RTAT1IONI PROGRAM AREA

Department of Aviation Other Funds $ 20 ,035,792 $ 20,055,725 $ 19,933 0 .1%

Department of Transportation Genera Fund Debt Service $ 25 ,306,026 $ 25,176,339 $ (12.9 ,687 ) -0 .5%

Lottery Funds $ $ 500,000 $ 500,000 100.0%

Lottery Funds Debt Service $ 115,592./980 $ 114,671,361 $ (92.1 ,619 ) -0 .8%

Other Funds $ 3,841 ,.994,260 $ 3,845,761,059 $ 3,766,799 0 .1%

Other Funds Debt Se1Vioe $ 384 ,447,137 $ 385,369,037 $ 92.1 ,900 0 .2%

Federal Funds $ 113,670,758 $ 160,370,758 $ 46,700,000 41 .1%

Budget Narrative


Budget Summary* 201'9-21 Legislatively 2020 Comminee Committee Change fro·m

Approved Budget Re-commendation 201'9-211.eg. Approved

$ Change % Change

2019-21 Budget Summary

Ge·neral IFund Total $ 2.0,721 ,253,409 $ 2.0,274,546,830 $ (446,706,579 ) -2 .2%

General IFund Debt Service Totall $ 691 ,993,863 $ 65 7,62.5 ,037 $ (34,368,826 ) -5 .0%

Lottery Fund s Total $ 740,257,849 $ 899,305,292 $ 190,52.6,946 2.1 .5%

Lottery Funds Debt Service Totall $ 2.10 ,714,166 $ 206,92.0,862 $ 1(3,7"93,304) -1.8% Other Funds Total $ 2.0,144,188,583 $ 19,800,053,081 $ (344,135,502 ) -1.7%

Other Funds Nonlimited Total $ 412.,573 $ 467,573 $ 55,000 13.3%

Other Funds Debt Servi ce Tota l $ 876 ,918,967 $ 891,582,09 1 $ 14,663,124 1.7%

Other Funds Nonlimited Debt S rvic Totall $ 2.31 ,556,618 $ 214,444,697 $ (17,111,921 ) -7 .4% Federal. funds Total .$ 2.2.,641 ,166,333 $ 2.4,536,232,445 $ 1,895,066,112 8 .4%

Federal Funds INonlimited Total $ 6,133,004,2.73 $ 6,304,72.4,533 $ 550,000,000 2 .8%

* Excludes Cap·tal Construction

Budget Narrative


Position Summary

ADMIN ISTRATION PROGRAM AREA

DeQartment of Administ rative Services Authorized Posit ions Full I-time Eq uivallent (FTE) posit ions

Department of Revenue Authorized Posit ions Full I-time Eq uivallent (FTE) posit ions

State Treasurer Authorized Posit ions Full I-time Eq uivallent (FTE) posit ions


Bureau of Labor and Industries Authorized Posit ions Full I-time Eq uivallent (FTE) posit ions


Approved Budget

916.00

906.95

1,057

983 .39

166

164.47

113

109 .80

ECONOMIC AND COMMUNllY DEVELOPMENT PROGRAM AREA

Oregon Business Deve loQment DeQartment Authorized Posit ions 145

Full I-time Eq uivallent (FTE) posit ions 139.68

Employment Department Authorized Posit ions 1,389

Full I-time Eq uivallent (FTE) posit ions 1,323.58

Housing and Community Services Authorized Posit ions 224

Full I-time Eq uivallent (FTE) posit ions 216.71

2020 Committee

Re comm endat ion

928

910.27

1,085

1,01 1.85

169

165.01

110

108.54

144

138.68

2,142

1,755.9 1

226

216 .57

Committee Change from

2019-21 Leg. Approved

Change %Change

12 1.3%

3.32 0.4%

28 2.6%

28.46 2.9%

3 1.8%

0.5 4 0.3%

(3) -2 .7%

(1 .26) -1.1%

(1) -0 .7%

(1.00) -0 .7%

753 54.2%

432.33 32.7%

2 0 .9%

(0.14) -0 .1%

Budget Narrative


Position Summary 2019-21 Legislatively 2020 Committee Committee Change from


Change % Change


Department of Education Authori2ed Posi1t ions 693 687 (6) -0 .9 %

Full I-time Eq uivalent (FTE) positiions 653.30 648.80 (4.50 ) -0 .7%

Higher Education Coordinating Commission Authoni2ed Posit ions 148 144 (4 ) -2 .7%

Full I-time Eq uivalent (FTE) positiions 137.37 134.9 1 (2.46 ) -1.8%


Oregon Health Authority Authoni2ed Posit ions 4, 290 4 ,381 91 2.1% Full I-ti me Eq uivalent (FTE) positiions 4,243.01 4 ,316.87 73 .86 1.7%

Department of Human Seivioes Authori2ed Posit ions 9,445 9,432 (13) -0 .1%

Full I-time Eq uivalent (FTE) positiions 9,324.60 9,330.24 5 .64 0 .1%


State Department ,of Agriculture Authoriied Posi1t ions 512 5 14 2 0 .4% Full I-ti me Eq uivalent (FTE) positiions 384.52 385.36 0.84 0 .2%

Department of Fish and Wildlife Authoriiied Posit ions (1) (1)

,. #DIV/01

Full I-time Eq uivalent (FTE) positiions (1.25) (1.25) ,.

#DIV/0 1

Department of Forestry Authoni2ed Posit ions 1,153 1,153 0 .0%

Full I-ti me Eq uivalent (FTE) positiions 848.99 844.56 (4 .43 ) -0 .5%

Budget Narrative


Position Summary

nt o,f Land Cons rvation and Developm nrt Authorized Positions Fulll -time Equival,ent (FTE) positions

Department o,f State Lands Authorized Positions Ful ll-t i me Equival ,ent (F11E) positions

Watsr Resouirc s !Department Authorized Positions Full -time Equival ,ent (F11E) positions

PUBUC SAIFElY PROGRAM AREA

D partment o,f Justice Authorized Positions Ful ll-time Equival ,e nt (F11E) positions


Ap11uoved Budget

64

62 .09

115

113.00

177 1 71 .79

1,45 3

l AW.13

2020 Committee

Reoommenda ion

112

109.46

115

112.63

178

172.67

1,456

1,.423.23

Committee Chan ge from

2.019-21 Leg. Approved

Change % 0hange

(3)

(3.5 4)

(0.37)

l

0 .88

3

3.10

-2.6 %

-3.1%

0.0 %

-0.3%

0.6 %

0.5%

0.2 %

0.2%

Budget Narrative



The General Fund appropriat ions made in SB 5723 are wit h in resources availab le as p rojected in the June 2020 economic and revenue forecast

by t he Department of Adm inist rat ive Services Office of Econom ic Analysis.

Summary of Committee/Committee Action

Statewide Adjustments

STATEWI DE ADJUSTMENTS Statewide adj ust ments in mu lt iple agencies are based on reduct ions to debt service rea lized t h rough refunding of outstanding general obl igation

bonds and cert ificates of part icipation, int erest rat e savings on bond sales, as well as Other Fund ba lances generated t hrough excess bond

proceeds, reserve funds, and inte rest earn ings that can be appl ied to debt service. A technica l adjust ment to the Legislat ive Admin istrat ion Committee's apportionment of General Fund and Other Funds debt se rv ice is also included. Net debt service savings tota l $34.6 million Genera l

Fund and $3.8 mill ion Lott ery Funds. New Other Funds expend iture limitat ion for the Oregon Department of Vet erans' Affa irs ($20,000) is

establ ished to accommodat e t he use of fund balances for debt payments, wh ile exist ing Other Funds expend iture lim itat ions for a number of

ot her agencies are collectively increased by $14.6 m ill ion. Non lim ited Other Funds debt service limitat ion for HECC is a lso decreased by $17.1

mill ion for debt service savings generated from t he refund ing of out st and ing Article XII-F {1) bonds issued for t he benefit of the pub lic

un ivers it ies and the Oregon Health and Science Un iversity.

Sect ions 70 and 354 of t he budget b ill reflect t he changes, as described above, for each agency. These adj ustments are generally not add ressed

in the agency narrat ives, although t hey are included in the table at the beginning of the budget report .. Other techn ical adj ustments of $3 .3 mill ion t ota l funds included in Section 354 are described in the agency narratives below.

Budget Narrative


Emergency Board

Emergency Board

As part of t he 2019-21 biennium statew ide reba lance p lan, SB 5723 adj usts the Emergency Fund and other special purpose appropriations made

to t he Emergency Board du ring the 2019 session as fo llows:

• Elim inated t he $5.7 mill ion special pu rpose appropriat ion made t o the Emergency Boa rd fo r t he Oregon Hea lt h Authorit y t o support

interdisciplinary assessment teams for the provision of consultat ion, eva luat ion, and stab ilizat ion services to youth w ith special ized needs.

• Elim inated the $3 .0 mill ion special purpose appropriat ion made t o the Emergency Boa rd fo r agency cost s associated w it h grand j ury

recordat ion.

• Est abl ished a new $1.0 million special purpose appropriat ion for the Department of Just ice and Ch ild Advocacy Cent er to add ress a

pot ent ial increase in caseloads o r f unding shortfa lls associat ed w it h t he COVID-19 pandemic.

• Elim inated the $16.1 million special purpose appropr iat ion made to t he Emergency Boa rd t hat w as estab lished in HB 5050 (2019) . This is

t he rema in ing balance of a $20.0 mill ion app rop riat ion t hat was available fo r allocat ion to the Public Defense Services Comm ission for

caseload activ it ies, including activ it ies designed t o improve public defense caseloads . In it s April meet ing, the Emergency Board approved

$3 .9 m ill ion fo r st aff and information techno logy services t o improve oversight of indigent defense cont racts as w ell as to prov ide a rate

increase for re lat ed invest igat or and interprete r services.

• Elim inated the $2 .0 mill ion special purpose appropriat ion made t o the Emergency Boa rd in SB 5532 (2019) for use by the Public Defense

Se rvices Commission t o acqu ire a new finan cial management syst em . Based on the current proj ect t imeline, t he funds will not be needed in t he cu rrent b ienn ium .

• Elim inated t he $1.0 mill ion special purpose appropriat ion made t o the Emergency Boa rd in HB 5050 (2019) for use by t he Oregon

Department of Corrections and the Pu blic Defense Services Com mission t o cover costs associated w ith Chapt er 530, Oregon Laws 2019,

re lat ing t o unauthorized use of vehicles as t he costs are not likely to mat er ialize in the current b iennium .

• Elim inated t he $1.0 mill ion special pu rpose appropriat ion made t o the Emergency Boa rd in HB 2829 (2019). Th is app rop riat ion had been

made available fo r allocat ion to t he Department of Fish and Wildlife fo r the Oregon Conservat ion and Recreat ion Fund, cont ingent on

t he Department deposit ing an equal amount of money int o the Fund from non-State or Federa l sou rces prio r to t he sunset of t he Fund on June 30, 2021.

• Elim inated the $4.0 mill ion special purpose appropriat ion made t o the Emergency Boa rd fo r t he Depart ment of Human Services (Child

Welfa re) to help increase capacity for non-Med ica id in-home services under t he f edera l Family First Prevent ion Services Act. A larger and

more flexible special pu rpose appropr iat ion w as established to help address agency budget issues over t he next few months.

• Est abl ished a new special pu rpose appropriat ion in the amount of $100.0 m ill ion fo r the Oregon Hea lt h Aut hor ity and/or the Department

of Human Se rv ices for caseload costs o r ot her budget problems that the agencies are unab le to m it igate dur ing the remainder of the

Budget Narrative


b ienn ium . Known potent ial challenges include changes t o caseloads based on future forecasts; COVID-19 impacts on programs or cost s;

t he agencies' abi lity to manage persona l se rv ices expendit ures; volat ilit y in usage-based costs o r cha rges for serv ices; assessment of

federal program penalt ies or repayments; fede ral law, rule, or funding changes; and pot ential lega l costs.

• Appropriated $200.0 mil lion General Fund to the Emergency Fund fo r needs of the state as a result of t he COVID-19 pandemic, pot ent ial

cost s relat ed to w ildfires, and the uncerta int y of t he current economy.

Two reservat ions established in t he Eme rgency Fund du ring the 2019 session (one fo r the Department of Human Services in t he amount of $10 .0 m ill ion for t he ch ild welfa re program action plan and one for the Oregon Health Authority in the amount of $9.0 m ill ion fo r community

mental healt h program support) we re eliminat ed in SB 5723 . Since a new specia l purpose appropr iation was estab lished to address potential

budget needs specif ically for t hese tw o agencies, t he rese rvat ions can be re moved to help support flexibili t y w it h in t he general purpose

Emergency Fund and future stat ewide allocat ions that may be needed t o keep the budget al igned w ith resou rces .

In most cases, if rema ining special purpose appropr iat ions are not allocat ed by t he Emergency Board before December 1, 2020, any remain ing

balances become available to t he Eme rgency Board fo r gene ral purposes or are available t o the 2021 Legislat ure for ot her purposes.

Adjustments to 2019-21 Agency Budgets

ADM INISTRATION

Department of Administrative Services

The Comm ittee approved General Fund and a nu mber of Other Fund expend iture lim itat ion changes fo r the Department of Admin istrat ive Services (DAS) .

In the Chief Operat ing Of fice, the Committee approved a one-t ime $320,975 Other Funds reduct ion associated w ith vacancy savings and

reductions t o services and suppl ies and capital outlay, as well as a permanent reduction of $464,852 Other Funds and t he abol ishment of two

vacant posit ions (2 .00 FTE).

A one-t ime Other Funds expend iture reduct ion of $60,000 due to vacancy savings and reduct ions to services and supplies and capita l out lay was approved in the Chief Financial Off ice . Sim ilarly, a one-t ime Ot her Funds expendit ure lim it at ion reduct ion of $577,355 from vacancy and

admin istrat ive savings was rea lized in the Chief Human Resource Office .

Budget Narrative


In the Office of the State Ch ief Informat ion Office r, t he Committee app roved a one-t ime $6.4 million Other Funds expenditu re limit ation reduction for Pol icy and a one-time $8.2 mill ion Other Funds expenditu re limit ation reduct ion for t he St ate Dat a Cente r due to vacancy savings and reductions to services and supplies and capita l outlay. Other Funds expend iture limitat ion of $8.8 mill ion was removed from the State Data Cente r program and added to the Policy program to cover unant icipat ed expend itures re lated t o support ing an enterp rise class redes ign and implement at ion of secu rity so lut ions for the stat e1s compute r net wo rk in response to a series of network d is ruptions that occurred last year.

The Comm ittee increased Other Funds expenditu re lim itat ion in Enterprise Asset Management by $2 .3 mill ion on a one-t ime basis for infrast ructure improvements at the Mill Creek Corporate Center. DAS has an agreement w ith the City of Salem to provide infrastructu re and roads at the Mill Creek Corporate Cente r to serve pa rcels as they are deve loped. These improvement s are paid for w ith proceeds from land sales at the Cente r and wit h Cit y of Salem resou rces . The Comm ittee also increased Other Funds expend iture limitat ion by $2 .5 mill ion for infrast ructure improvements requ ired as part of the subd ivision and development of t he fo rmer Oregon State Hospita l North Campus property. An addit ional one-t ime Ot her Funds reduct ion of $5 .2 mill ion reflects vacancy and administrative savings .

The Comm ittee also approved an increase of $53,660 Other Funds expend iture limitat ion in Enterprise Goods and Services for an Account ing Technician 3 (0.38 FTE) due to t he transfe r of the Department of Revenue1 s (DOR) payroll funct ion to t he Department of Adm inist rat ive Services - Sha red Client Services. DOR undertook th is t ransfer adm inist rat ively, effective January 1, 2020. An addit ional one-t ime Ot he r Funds expenditure limitation reduct ion of $2 .7 mill ion reflects vacancy and adm inistrat ive savings.

The Comm ittee approved a one-t ime $2 .3 mill ion Ot he r Funds expend it ure lim itat ion reduct ion due to vacancy savings and reduct ions to se rvices and suppl ies and capital out lay in the Business Services program .

In the Informat ion Techno logy program, the Comm ittee increased Other Funds expend iture limitat ion by $788,835 and approved the establishment of one Information Systems Specialist 8 posit ion (0.38 FTE} in DAS Informat ion Technology fo r the Workday Payro ll and Time Tracking app li cat ion. Other Funds expenditure limitat ion was increased by $4.9 mill ion and 12 li mirted durat ion posit ions (4.56 FTE) were established, all at step 2 of the re levant class if ications, for t he Workday Payroll and Time Tracking application. Approved posit ions include two Operat ions and Po li cy Analyst 4 posit ions, seven Operat ions and Po li cy Ana lyst 3 posit ions, two Operat ions and Pol icy Analyst 2 posit ions, and one Info rmat ion Systems Specia list 8 posit ion.

The Comm ittee removed $10,325,925 Ot he r Funds expendit ure limitation fo r one-t ime special payments assoc iat ed with the disbursement of proceeds from Article XI-Q gene ra l ob ligation bond sales for projects that improve facilit ies at t he Oregon State Fair. The proceeds from the sale of Article XI-Q general obl igat ion bonds fo r these projects will instead be given six-year capita l construction expenditure lim itat ion in SB 5722 .

In addit ion, $2,042,875 Ot he r Funds expendit ure limitation for one-time special payments associated w ith t he d isbursement of proceeds from lottery bonds for the Curry Healt h District for a Brookings Eme rgency Room was removed. Instead, the Committee approved a $2.0 million General Fund appropriat ion for project costs .

Budget Narrative


The Comm ittee removed Other Funds expend iture lim itat ion for one-t ime special payments associated w it h the d isbursement of p roceeds from

Lottery bond sales as fo llows: for Hacienda CDC - Las Adel itas Housing Project - {$2,042,875); for Port of Morrow - Ea r ly Learn ing Center

Expansion - ($ 1,439,188); for Wallowa Valley Center for Wellness - ($2,548,087); and for the YMCA of Columbia-Willamette - Beaverton IHoop

YMCA- ($2,558,500) .

The Comm ittee approved $21.85 m il lion of Federal Funds expendit ure lim it at ion for t he Coronav irus Re lief Fund. Th is supplemental l im itat ion

relates to exchanging General Fund that was allocated by the Emergency Boa rd t o va r·ious agencies fo r COVID-19 re lated act iv it ies t hat have

been deemed el ig ib le fo r federal re imbursement unde r the federal CARES Act . The Genera l Fund allocat ions were made under emergency

circumstances and prior t o the st ate's receipt of federal CARE Act/ Coronavirus Relief Fund fund ing ..

Special payment s to the fo llowing projects were reduced as follows :

• Klamat h County - Acquire, inst all , and ma intain Stream Gauges ($30,000)

• H istoric Portland Public Market Foundation - James Beard Publ ic Market ($400,000)

• Lutheran Commun ity Services Northwest ford rug abuse p rograms ($500,000)

The Comm ittee approved $1 . .5 m ill ion General Fund for the Wa llowa Val ley Genter fo r Wellness and W ind ing Waters Medical Clin ic t o bu ild an

int egrated health services fac ility in Enterprise, as well as $250,000 General Fund for a contract w ith an independent economist t o examine w ildfire p rotect ion costs and fund ing in Oregon .

Oregon Advocacy Com missions

The Comm ittee approved one-t ime reductions to the Oregon Advocacy Comm iss ions Office budget of $77,104 Genera l Fund . This reduct ion

reflects vacancy savings of $66,31 1 accrued due to a pos it ion budgeted as fu ll -t ime being fi lled only part-t ime, and $10,793 in other

admin istrat ive savings.

Employment Relations Board

The Comm ittee approved a fund sh ift t o move $227,729 General Fu nd to Other Funds, the source of wh ich is $157,993 of excess m iscellaneous

revenue and $69,736 of excess st ate agency assessment revenue.

Office of the Gove rnor

Budget Narrative


A one-t ime reduction of $812,327 Genera l Fund from the Office of the Governor refl ects vacancy and other administrat ive savings, and the use

of Other Funds rather t han Genera l Fund fo r one posit ion .

Oregon Liquor Control Commission

Other Funds expend iture lim itat ion of $1. 77 m illion was el im inated from the budget of the Oregon Li quor Control Commiss ion (OLCC), reflect ing vacancy savings and an assumed hiring freeze as of Ju ly 2020. Administ rat ive action directed by budget note in the 2019 session t o updat e t he

amount of credit card fees pa id by t he Comm ission fo r liquor-related it ems w ill also net one-t ime agency savings of $1.4 m ill ion. These

reductions in OLCC expenses are est imat ed to ret urn an addit iona l $1.8 million in revenue to t he General Fund .

Public Employees Retirement System

The Comm ittee approved a one-t ime $35 .3 mi ll ion General Fund reduction and a corresponding one-t ime $35 .3 mill ion Ot her Funds

expend iture lim itat ion reduct ion re lated t o stat e mat ch ing funds for the Employe r Incent ive Fund. Of the origina l $100 m ill ion General Fund

appropr iat ion, t he remaining $64.7 eit her has been used for match ing employer contributions or w ill be used to match employer contributions

through July 31, 2020.

A one-t ime $11.5 rn ill ion Other Funds expenditu re lim it at ion reduct ion to the Schoo l District Unfunded Liabi lity Fund was approved, and a $1

Other Funds expend iture lim itat ion reduct ion was approved for the Financial and Administrative Services Division for the Employer Resolut ion

Program/Employer Incent ive Fund.

The Comm ittee approved the upwa rd reclass ificat ion of an exist ing (vacant) permanent, fu ll-time Operat ions and Po licy Analyst 3 posit ion

(sa lary range 30) to a pe rmanent, fu ll-t ime Principa l Execut ive Manager F posit ion (sala ry range 35X) . This reclassifi cat ion w ill move an Actuarial

Services Coordinat or posit ion to an Associat e Act uary posit ion to manage t he Actua rial Services Un it, w it h d irect ion that the posit ion be hired as

a certif ied Associat e Act uary.

Other Funds expend iture lim itat ion for the Core Syst em Ret irement Appl ication was reduced by $10.5 mill ion, which includes $10 m illion for

Information Technology App lications and $500,000 for a Cont ingency Reserve . Recent st atus report ing by PERS (Ju ly 2020) revea led that the permanent so lut ion for t he redirect project w ill extend into t he 2021-23 and t he 2023-25 bienn ia.

The Comm ittee approved the fol lowing budget note.

BUDGET NOTE: The Publ ic Employees Ret irement System (PERS) is d irect ed to report t o the Jo int Comm ittee on Informat ion

Management and Technology during t he legislat ive session in 2021 on the implementat ion of SB 1049 (2019) . The Department of Adm inist rat ive Services (DAS) and t he DAS Office of t he St ate Ch ief Information Office r (OSCIO) are to conti nue t o provide overs ight of

Budget Narrative


t he PERS SB 1049 (2019) im plementat ion project. The p roject shall cont inue to adhere to the Stage Gat e p rocess. OSCIO and the DAS

Chief Financial Officer, in their oversight roles, are t o report separately to t he Joint Com m ittee on Information Management and

Technology p r ior to the legislative session in 202 1 on the implementation of SB 1049 (2019) . The agencies ' reports t o the Legislature

sha ll include:

• Update on proj ect scope, schedule, budget, and t otal cost of ov1111ersh ip; • Ident ificat ion of costs associat ed w ith one-t ime solut ions versus permanent solut ions;

• Current project risks, likely im pact s, and m it igation strategies;

• Exp la nat ion o f the delay related t o implement ing member redirect and assoc iated costs and actua r ial i mpact(s);

• Independent qual it y assu rance report ing on t he proj ect;

• Impact of SB 1049 (2019) inform at ion technology project on rout ine agency operat ions;

• Any except ions from admin istrative ru les, pol icies or procedures, or st atut es granted t o PERS by t he Department of

Admin istrative Services;

• Whet her SB 1049 (2019) is meeting financial object ives; • Any investment s made by the agency dur ing t he biennium fo r techn ica I debt; and

• Other information t hat hel ps inform the legislature on the status of the p roject o r issues t h at have arisen as t he result of t he

p roject.

Department of R,evenue A number o f General Fund and Ot her Fund expendit u re limit at ion changes w ere app roved for the Department of Revenue (DOR) .. One-t ime

budget ary reduct ions reflecting vacancies and other ad m inist rat ive reduct ions in various Department programs are as follows:

• In the Admin ist rat ive D iv ision, $2 .3 m illion Genera l Fund and $600,907 Other Funds expenditure lim it ation

• In the Property Tax Division, $886,888 General Fund

• In the Persona l Income Tax and Compl iance Division, $4.2 million Genera l Fund and $97,524 Other Funds expend iture limitat ion

• In the Business D iv ision, $688,383 Genera l Fund and $353,662 Other Funds expend iture lim itat ion

• In the Information Technology Serv ices Div ision, $335,369 General Fund and $56,832 Other Funds expend iture limitat ion

To provide sup pie mental resources for adm inistration of the Corporate Act ivit ies Tax {CAT), the Commit tee a pp roved an increase in Other Funds

expend iture lim itat ion of $11.5 m il lion and aut horized the establ ishment of 28 posit ions (28.46 FTE) for t he Corporat e D iv ision .. The Committee

also approved a one-t ime $1 General Fund reduct ion and fund shift o f $2,789,361 General Fund t o Other Funds ,(corporate activi t ies tax).

Budget Narrative


To provide resources for ad min istration of t he Corporate Act ivit ies Tax (CAT), the Committ ee increased Other Funds expend iture limit at ion for the Core Systems Replacement project by $2.3 mil lion to modify DOR's integrated syst em (G ENTAX) for the new t ax. The Comm ittee also

approved a one-t ime $1,165,000 Genera l Fund reduction in serv ices and suppl ies due to contract savings.

Secretary of State The Comm ittee reduced t otal Genera l Fund appropriat ions to t he Secret ary of Stat e by $311,082 (or 2.2%) and reduced Other Funds

expend itures by $1,768,198 (o r 2.8%) . The $1,768,198 Other Funds not spent as a result of these reductions are transferred to the Genera l Fund

in HB 4304 to he lp rebalance the state General Fund budget . These Other Funds consist of assessment revenues paid by other state agencies to

the Audits and Arch ives Divis ions, plus corporat e reg istrat ion fee revenue pa id to the Corpo rat ion Division .

The Gene ra l Fund reductions include a $61,378 (or 1 .8%) reduction to the Adm inistrative Services Division and a $249,704 (or 2.3%) reduct ion t o

the Elect ions Division. The reduct ions are one-time in nature . The agency w ill manage the f und ing reduct ions by holding th ree cu rrent vacancies

fo r the re ma inder of the biennium and by holding a fourth vaca ncy (t he Execut ive Ass istant to the Secretary) through the rema inder of 2020. The current vacancies to be held for the ent ire bienn ium include one Information Special ist 8 in t he Adm inist rat ive Services Division and two

Comp liance Special ist 2 posit ions in Elect ions . Elections Division reduct ions include an addit ional $39,000 of services and supplies cuts in the

Oregon Motor Vot er progra m and division-w ide.

The Other Funds redu ctions include: a) $583,292 (or 3 .0%) t o the Administ ra t ive Services Division, b) $768,365 (or 3.3%) to the Aud its Division,

c) $153,504 (or 1.8%) to the Arch ives Divis ion, and d) $263,037 (or 2.2%) to t he Corporat ion Division. The reductions are one-t ime in natu re. The agency w ill manage the fund ing reduct ions by hold ing two current vacancies in t he Informat ion Services Division, four current vacancies in t he

Audits Div ision, and one current vacancy each in the Archives and Corporation Divisions for the rema inder of the b iennium. Another t hree

vacant Execut ive Of f ice posit ions, includ ing the Deputy Secret ary of Stat e, a Publ ic Af fa irs Special ist 3, and the Execut ive Ass istant to t he

Secretary, will be held through the remainder of 2020. Add it ionally, services and suppl ies expendit ures in the Audit s and Corporat ion Divis ions

we re reduced by a combined $180,372, and t wo management posit ions in t he Corporat ion Division w ill be underfilled w ith Program Ana lyst i's.

The Other Funds reductions were partially offset by a technical adjustment approved to increase the Secretary of State's t otal Ot her Funds

expend iture limitat ion by $294,283. This amount reflects adj ustments necessary due to the misca lcu lat ion of facilit y rent amounts during 2019-21 budget development and affects the agency's Adm in istrat ive Services Division ($66,963 Ot he r Funds), Arch ives Division ($ 162,430 Other

Funds), and Corporat ion Division ($64,890 Ot her Funds) budgets. Including t he impact of th is technica l adj ustment, the net Other Funds

expend iture limitat ion reduction for t he Secretary of Stat e t otals $1,473,915 (or 2.3%).

Oregon State Libra ry

Budget Narrative


A one-t ime reduction of $209,410 Genera l Fund from the Oregon State Li brary reflects vacancy, rent, and othe r administrat ive savings . The reduction is not ant icipated to affect programs or services .

Oregon State Treasurer

To trans it ion account ing and budget services fr om the Department of Administrat ive Se rvices to Treasury, the Com mittee approved t he estab lishment of three pe rmanent posit ions (0 .54 FTE) and the reclass ifi cat ion of one posit ion, funded internally t hrough t he agency's shared se rvices cost a ll ocat ion. The posit ions being establ ished are: one pe rmanent fu ll-time Princ ipal Execut ive Manager D (salary range 31X) to manage the program transit ioning t o Treasury at 0.25 FTE (phases-in 1/1/2021), one permanent full -t ime Fisca l Analyst 1 posit ion (sa lary range 23) at 0 .25 FTE (p hases-in 1/1/2021), and one permanent part-t ime Accounting Technician 3 posit ion (sa lary ra nge 19) at 0.04 FTE (phases-in 6/1/2021) to perform the funct ions t ransit ioned from DAS Shared Client Services. The Comm ittee also approved the reclassificat ion of a permanent, fu ll-t ime Accountant 1 (salary range 21} to an Accountant 4 (sa la ry range 30) t o effect ively d ist ribute the complex account ing work performed by each posit ion classifica t ion in the new unit . No addit iona l expend iture limitation is requ ired fo r the 2019-21 biennium as the agency is able to absorb the cost w ith in its current budget .

Also approved were the fo llowing posit ion rec lassifi cations : a Principal Execut ive Manager D (sa lary range 31X) to General Counse l (sa la ry range 51); a Principa l Execut ive Manager H (sa lary range 40X) to Pr inc ipa l Execut ive Manage r I (sa lary range 42X); a Principal Execut ive Ma nager D (sa lary range 31X) t o an Operat ions and Pol icy Analyst 4 (sala ry range 32); a Principal Execut ive Manager D (salary range 31X) to an Ope rations and Policy Analyst 4 (sa lary ra nge 32); and an Investment Officer 3 (sa lary range 48) dow n to Invest ment Officer 1 (sa lary range 43 ). The General Counse l and Investment Officer posit ions are moved between the Investment Management and the Investment Compl iance budget st ructures. The estimated net cost of the reclassificat ions, afte r conside ring the downwa rd reclass ificat ion, is $76,136 Othe r Funds; howeve r no addit iona l expend iture limitation is being requested for the 2019-21 biennium as the agency is able t o absorb the cost wit hin its current budget. The 2021-23 est imated cost is $121,817 Ot he r Funds .

Addit iona ll y, the Committee approved a net-zero techn ica l adjustment to reapport ion State Government Service Charges and Fac ilit ies Rent and Taxes between various d ivisions wirthin the agency.

CON SUMER AND BUSI NESS SERVICES

Board of Accou ntancy

The Comm ittee approved technica l adjustments related to the Department of Justice flat rate billing model, increas ing Other Funds expend iture limit ation by $28,101 fo r the Board of Account ancy.

Budget Narrative


Department of Business and Consumer Services The Comm ittee approved an increase in Federa l Funds expenditu re lim it at ion of $445,176 for the Depa rtment of Consumer and Business

Services (DCBS) t o accommodate a no-cost extension of t ime for t he expend irture of a fede ral grant received from the U.S. Department of Hea lth

and Hu man Services . The Sept ember 2016 awa rd of the Healt h Insurance Enforcement and Consumer Protections Grant of $1,245,919 had an

or iginal pe rformance period t hat ended October 30, 2018. The Department appl ied for and has been grant ed two extensions of the

performance period. The addit iona l limit at ion w ill allow t he Department to expend the remain ing grant funds .

Increases in Ot her Funds expenditure lim itat ion for t he Workers' Compensat ion Division, t he Central Services Division, and the Division of

Financial Regulat ion total ing $436,902 were approved to allow t he agency to complete posit ion changes and reclass if icat ions. These changes

resulted in no new posit ions or change in t he FTE of posit ions aut horized .

In addit ion t o technical adj ust ments discussed elsewh ere in t h is report, technical adj ust ments approved by the Com mittee included a

$11,845,226 sh ift of expenditure lim it at ion from Ot her Funds t o Federal Funds to allow t he agency to expend addit ional f edera l grant fund ing

awarded under a section 1332 stat e innovat ion w aiver support ing the Oregon Reinsurance Program . The Comm ittee also approved t he conversion of a lim ited du ration posit ion that was established in conj unction w it h t he Oregon Reinsurance Program to a permanent, f ull -t ime

(1 .00 FTE) posit ion .

Hea lth-Related Li censing Boards

The Comm ittee included technica l adj ust ments t o t he follow ing Health-Related Licensing Boa rds t o reflect technica l adj ustments related t o the Department of Justice flat rat e b ill ing model: Occupat ional Therapy Licens ing Board reduce Other Funds expendit ure l im itat ion by $7,134;

Boa rd of Medical Imaging increase Other Funds expend iture l im itat ion by $1,409; Boa rd of Exam iners for Speech-Language Pathology and

Audiology reduce Othe r Funds expenditu re lim it ation by $25,527; and Oregon Veterinary Medical Exa miners Boa rd increase Other Funds

expend iture limitat ion by $16,650.

Construction Cont ractors Board

A t echn ical adj ustment w as approved t o increase Ot he r Funds expendit ure lim itat ion by $775,000 to reflect the agency's changed account ing methodology fo r test ing fees t hat are pa id to an externa l contractor .

Bureau of Labor and Industries

General Fund reductions t ota ling $1,046,866 w ere app roved to help balance the statewide budget . Reductions reflect vacancy savings,

management fu rloughs, services and supplies reduct ions, fund -sh ifting portions of two posit ions in the Wage and Hou r Division from General

Budget Narrative


Fund support t o the Wage Security Fund, and the el im ination of an office specialist and two apprent icesh ip rep resentatives (3 posit ions/1 .26

HE) from the Apprent icesh ip and Tra in ing Divis ion.

Board of Licensed Social W orkers

The Comm ittee approved a one-time Other Funds expenditu re limit ation increase of $203,661 to cover expenses incurred by the Board of Licensed Socia l Workers for an administratively creat ed limit ed durat ion Investigat or 2 posit ion through t he 2019-21 bienniu m. Th is pos it ion w i ll

help the Board clear a backlog of compl iance cases and improve the IKey Performance Measure for oompl iance case closure w ithin 180 days of

receipt.

Mental Healt h Regulatory Agency

The Comm ittee approved a one-time increase of $314,793 Other Funds expend iture limitat ion for the Oregon Board of Licensed Professiona l

Counselors and Therapists and a one-t ime decrease of $158,430 Ot he r Funds expendit u re lim itat ion for t he Oregon Board of Psychology t o reflect an increase in facil it ies rent, est ab lishment a Licensing Manager (LID PEM -C, MIMS) posit ion, reclass ificat ion of an exist ing Licens ing

Manager/Pol icy Advisor Posit ion {OPA-3, IMMS) to Policy Advisor (OPA-3, IMMIN), and cost reallocation between the Oregon Boa rd of Licensed

Profess iona l Counselors and Therapist s and the Oregon Board of Psychology .. The Committee a lso included t echn ical adjustment s re lat ed to t he

Department of Justice flat rat e b illing model, increas ing Other Funds expendit u re lim itat ion by $56,243 for the Board of Board of Licensed

Profess iona l Counselors and Therapist s, and by $80,780 fo r the Board of Psychology.

Budget Narrative


Board of Pharmacy

The Comm ittee approved tech nica l adj ust ments related to the Department of Just ice fl at rate billing model, decreasing Ot her Funds expendit ure

limit ation by $25,774 fo r the Board of Pha rmacy.

Rea l Estate Agency Other Funds expend iture li m itat ion of $899,415 is included for t he Rea l Estate agency t o sat isfy accou nting specif ications related t o payment of

fees by applicants for licensu re.

ECONOM IC AND CO MMUNITY DEVELOPMENT

Oregon Business Development Department

The Comm ittee reduced total General Fund appropriat ions to t he Oregon Business Deve lopment Department (OBDD) by $859,806 (or 1%), reduced Lottery Funds expendit ures by $9,824,405 (or 7.7%), reduced Ot he r Funds expenditu res by $12,473,939 (or 1.8%), and increased

Federal Funds expend itures by $29,378,268 (or 68.2%). The Committee also elim inated one posit ion (1.00 FTE) in the agency budget .

The net Genera l Fund reduct ion masks several significant changes t o the Department's budget. Excluding debt service expenditu res, t he Genera l

Fund fo r ongoing agency progra ms and operat ions was reduced by $10,378,236 (or 35 .5%) . These reduct ions incl ude:

• University Innovat ion Research Fund - This newly-established program w as reduced by $7,400,000 (o r 74%) . No additional program

aw ards w ill be ava ilable for t he remainde r of the 2019-21 bienn ium.

• Emergency Smal l Business Assistance Grants - This progra m, which p rovides financial ass istance t o businesses impacted by the COVID-19

pandem ic, was reduced by $2,200,000 (44% of its General Fund and 6.8% of its tot al fund ing). Th is reduct ion is not proj ect ed to have any

impact on grants t o businesses as program utilizat ion is not expected t o exceed t he amount of the remain ing funds.

• Arts Com mission Grant s - Arts Co mmission grant fund ing was reduced by $332,938, a 33% reduction in second-yea r grant support .

• Solar lncentivi zation Program - A $292,298 (or 8.5%) reduct ion is expected to have no impact as t hese funds w ere not expected to be

utilized .

• Special Public Works Fund (S PW F) - Although t he SPWF does not typ ically receive Gene ral Fund support, t he Emergency Boa rd al located

$1,800,000 in the current budget t o offset t he cost of a SPW F loan to the City of Pendleton for levee repairs. The Com mittee reduced th is

reimbursement by $153,000 (or 8 .5%). This reduction does not affect fund ing t o the City of Pend leton but does reduce the SPW F

balance.

Excl ud ing debt service expenditu res, t he Lottery Funds provided for ongo ing agency programs and operations w as reduced by $13,281,482 (o r

15.6%). These figu res reflect adj ustment s to lottery fund allocat ions to t he Department . The reductions include:

Budget Narrative


• Tide Gates and Culverts Program - Th is nev,,ly-est abl ished progra m v11 as reduced by $3,000,000 (o r 50%). Although t he !Lottery Funds

expendit ure lim it for the program w as increased from $1 t o $3.0 million following a report on proposed program operations, t h is

increase does not allow expenditu re of the full $6 m illion allocat ed fo r the program in t he 2019 session. The $6 mi ll ion Lottery Funds

allocation v11as reduced by $3.0 million in HB 5221, the specia l session measu re modify ing lottery al locations ..

• Oregon Innovat ion Counci l Commercial izat ion Fund - Th is newly-estab lished program w as reduced by $2,500,000 (or 50%) .

• Port of Port Orfo rd - Funding for t he Port's Cannery Redevelopment Proj ect was reduced by $1,600,000, e liminat ing all support in the

current b ienn ium . The Port does not yet have t he est imated $14.4 m illion of match ing funds needed t o complete the project, but t he

proj ect can be brought back for considerat ion once match ing funds are ava ilable.

• High-Impact Opportun ity Projects (HIIOPs) - This Oregon Innovation Council progra m, w hich supports the growt h of target indust ry

sectors in Oregon, v11 as reduced by $1 .. 5 mill ion (or 50%).

• Oregon Met als ln irt iat ive - Fund ing w as reduced by $981,710 (o r 53%), e lirn inat ing second-year support.

• Oregon Innovat ion Counci l Signature Research Centers - Fu nding was red uced by $553,290 (or by 7.9% to each of the t h ree Signat ure

Resea rch Centers: ONAMI, OTRADI, and Vertue l ab).

• Oregon Manufactu ring Innovation Center - Funding w as reduced by $400,000 (or 4.6%).

• Export Promot ion Grant s - Funding w as reduced by $400,000 (or 14..3%). This el iminates addit ional export promotion {Oregon Trade

Promot ion Program) grants for the rema inder of t he 2019-21 bienn ium.

• Support for four Arts Division project grants - to the Cottage Theatre, High Desert Museum, Liberty Theat re, and the rN ikkei Endowment · w ere each reduced by 15%, for a total reduction of $3 18,750.

• Sma ll Business Innovation Research (SBIIIR)/Small Business Technology Transfer Resea rch (STTIR) Support - Fund ing w as reduced by

$260,000 (or 11.6%) for grants, matching grants, and sponsorsh ips .

• Oregon Film and Video Office - Fund ing was reduced by $106,250 (or 8.5%) .

• Business, nnovation and Trade Division Operat ions - Fund ing was reduced by $1,105,934 (or 9.3%). The agency will manage t he reduction by ho lding th ree unfilled posit ions vacan t for the remainder of t he bienn iu m; tempora rily moving to fund 70% of persona l

serv ices cost s for Regional Development Officers with Other Funds; savings in the Business Ret ention Program; and e liminat ing Lottery

Funds not allocat ed to any specific program in the budget.

• Ope rat ions Division - Fund ing v11as reduced by $555,548 {or 6..3%), and one vacant Public Affa irs Specialist 1 posit ion w as abol ished. The

agency w ill manage t he reduction by abol ish ing t he posit ion and hold ing the current ly vacant Director and Execut ive Assist ant t o the

Director posit ions vaca nt until September 2020 .

All General Fund and Lottery Funds reductions, except for $309,703 of Lottery Funds reduct ions associated with the abo lit ion of t he Pub lic

Affa irs Specialist 1 posit ion, are one-t ime in nature.

Budget Narrative


The Comm ittee also redirected the use of lotte ry revenue bond proceeds provided in the 2015-17 bienn ium to the Regional Infr astructure Fund . This Fund supports legislat ively approved Regional Solutions Program projects. One of t he projects approved fo r the North Coast Region is not go ing fo rward, and the $100,000 des ignated fo r it rema ins in the Regional Infrast ructure Fund . The Comm ittee adopted the following budget note approving the use of those funds for an alternative project, as requested by the North Coast Regional Solutions Advisory Com mittee.

BUDGET NOTE: The Comm ittee approved t he re-des ignat ion of the use of $100,000 of lottery revenue bond proceeds approved in t he 2015-17 biennium budget fo r the Regiona l So lut ions Program . The fu nds we re init ially approved for dike and levee repairs in the North Coast Region, but that project will not be going fo rward . The Com mittee approved t ransferr ing these funds instead for upgrad ing a water line and an associated infrast ructure project, as recommended by t he North Coast Regional Solut ions Advisory Com mittee.

The Comm ittee inc reased General Fund appropriations by $11,220,000 t o support grants fo r two cap ital projects, includ ing $7,000,000 General Fund fo r d istribution t o t he City of Sweet Home for rehabilitat ing the Sweet Home Wastewater Treatment Plant, and $4,220,000 for distribution to the Confederated Tribes of t he Warm Springs Reservation of Oregon fo r improvements to t he Warm Springs Wastewater Treatment Plant, inst allation of water met ers, and improvements to t he water dist ribution system. The Legislat ure originally funded these projects w ith lotte ry bonds in the 2019 sess ion, but based on projected lottery revenues, the lottery bond sale is not expected to be completed in spring 202 1 as or iginally scheduled . The Othe r Funds expenditu re limitat ion in the budget fo r lottery bond proceeds was reduced by $15,052,365. The Emergency Board a llocated a portion of t he support fo r the Warm Springs project pr ior to the 2020 special sess ion; t he appropriation in t his bill includes the remainder needed to fu lly fund that project.

A signifi cant port ion of the agency's Genera l Fund and Lotte ry Funds expenditures a re provided to pay debt service on outstanding Genera l Obl igat ion and lottery revenue bonds, respect ively. Genera l Fund for debt service was reduced by $1,701,570, Lottery Funds for debt service was reduced by $2,542,922, and Other Funds for debt service was increased by $2,578,426, to reflect revisions to debt service costs result ing from the Treasury refinancing bonds at lower than ant icipated interest rates, and by substituting availab le Other Funds ba lances fo r Genera l Fund and Lotte ry Funds.

The Comm ittee inc reased the agency's Federal Funds expenditure lim itat ions to accommodate expend itures of federal monies distributed to the agency by provisions of t he fede ra l CAR ES Act . The increases include $18,378,268 fo r supplemental fund ing fo r the Com munity Development Block Grant (CDBG) program, and an $11.0 mill ion increase for a grant from the Economic Development Adm inist ration (EDA) .

• The CD BG funds will su pport adm inist rat ion of three grant programs that will distribute approximate ly $7.4 mill ion for Small Business/M icroenterp rise ass istance, $5.5 million for pe rsonal protective equ ipment (PPE) for small businesses, and $5 .5 mill ion for eme rgency resident ial rental ass ist ance.

• The EDA fun ds will primarily capital ize the Entrep reneurial Development Loan Fund (EDLF) program, a program that makes loans ava ilable to small bus inesses and ent repreneurs wo rking to establish a small business that have difficu lty qualifying for loans from other

Budget Narrative


lenders. In o rder t o promote utilizat ion of th is p rogram during t he COVI D-19 pandemic, the Commit tee t ern porari ly increased the

maximum EDLF loan amount and expanded program el igib ility to larger businesses in HB 4304.

Employment Department

Federal Funds expend iture lim irtat ion was increased by $1,140,563 t o allow the Oregon Employment Department (O ED) t o ent er into a contract w ith Rogue Workforce Partnersh ip t o provide Workforce Investment Opportunity Act case management and t ra in ing serv ices from June 1, 2020

through June 2021, in partnership w ith t he Higher Educat ion Coord inating Commission's Office of Wo rkforce Investment s. Six posit ions (3 .25

FTE) are associated w it h th is effort.

The Comm ittee approved establishment of $26.3 m il lion Federa l Funds expenditure lim itat ion and 218 posit ions (1 12.68 FTE) specific to cost s

associated w it h the Pandemic Unemployment Ass istance Program est ablished by the federal Coronavirus Aid, Re lief , and Econom ic Secu rity

(CARES) Act, which provides fo r admin istrat ive costs and benefits to self -emp loyed, independent contractors and gig workers who have not

tradit iona lly been e ligible to receive unemployment benefits. Addit iona lly, Federal Funds expenditu re lim itat ion was increased by $61 .0 mi ll ion and 525 lim ited durat ion posit ions were app roved (314 .73 FTE) for adm inistrat ion of unemployment insu rance benefit s for other eligible

cla imants. Benef it payment s associated w ith adm inist rat ive expendit ures are Nonlim ited . Fou r posit ions (1.67 FTE) were established and Ot he r

Funds expendit ure lim it at ion of $437,440 v11as approved for the Of fice of Adm in istrat ive Hearings t o address associated increases in case load.

A t otal of $6,180,000 General Fund was reduced from the services and supplies budget in the Oregon Paid Fa mily Medical Leave Insurance

Program (OPFMLI) . Of the t otal, $1.2 mill ion is attributable t o projected savings in procurement services, $580,000 results from the actua l versus budget ed costs of an actuarial study, and $4.4 m ill ion is attribut ed to costs for t he OPFM LI Program IT solut ion and associated qua lity assurance

review. OED is current ly investigating possible econom ies of sca le for the OP FM LI and Modernization IT projects, and actual procurement costs

cannot be determined at th is t ime.

Housing and Commun ity Services Department

The Comm ittee approved $270,022 Other Funds expend iture lim itation to ensure that the Department meet s add it ional requ irement s imposed

by the federal Housing and Urban Development Department (HU D) for project-based management occupancy reviews. These reviews are performed on a fee-for-service basis to ensure compl iance w ith HUD p rogram specificat ions . Two addit ional posit ions (1.00 FTE) are also

authorized t o carry out the requ ired reviews.

Other Funds expend iture lim itat ion was increased by $7.5 mill ion to co rrespond to a General Fund appropriat ion made by the Emergency Board

on Ma rch 9, 2020 fo r housing-related flood re lief in Umatilla County. The expend iture lim it ation w ill allow the Department to spend

appropriat ed funds for proj ects t hat have been approved but not completed by June 30, 2021 .

Budget Narrative


The Department rece ived addit ional fund ing in seve ral grant programs through the Co ronavirus Aid, Re lief and Economic Secu rity (CAR ES) Act . The Comm ittee approved increases in Federa l Funds expendit u re limitation for the fo ll owing fede ral grant programs :

• Fo r the Community Services Block Grant, Federa l Fu nds expend iture li mitat ion was increase d by $7,972,444 .

• For the Low Income Home Energy Ass istance Program, Federal Funds expenditu re limitat ion was increased by $9,513,504.

• For the Emergency Solut ions Grant Program, Federal Funds expend it u re limit at ion was increased by $56 .2 mill ion . The Emergency Solut ions Gra nt Program ass ists low-income ind ivid ua ls and fam ilies to q uickly rega in stab ili ty in permanent hous ing afte r experiencing a hous ing cr is is or home lessness. Sect ion 41 of HB 4304 a llows the Department to allocate t hese funds t hrough competit ive grants, d irect a llocations, or th rough exist ing Com mun ity Action Agency partne rships.

The Depa rtment has not begun su bstant ia l work, program des ign, or issued notice of funds ava ilab ility fo r the Greater Oregon Housing Accelerator, for wh ich $5 mil lion in one-t ime Gene ral Fund was included in the agency 's 2019-21 budget. One posit ion associated wit h the Greater Oregon Hous ing Acce le rator progra m is e lim inated from the agency 's budget . Further, of the uncomm itted $5 m illion, the Department w ill use $3 .0 m illion for operat ing assist ance fo r t hose affo rdable housing propert ies that have long term affo rdab ility covenants w ith HCS D a nd are impacted by lapses in rent due t o the COVI D-19 pandemic. The remain ing $2 m illion is to be d ist ri but ed by t he Department t o the Hacienda Communit y Develop me nt Corporation for t he Las Adel itas hous ing project.

The Comm ittee approved $ 2.0 mill ion Genera l Fund on a one-t ime bas is to su pplement the Ind ividual Deve lopment Account (IDA) program. The Department w ill dist r ibute these funds to the current contract administrator t o augment proceeds from tax cred it sa les that are used for administ rat ion and match ing funds fo r IDA program participants.

Approva l of an add it iona l $50.0 million in Article XI-Q Bonds fo r the Local Innovat ion and Fast Track Hous ing Progra m (LI FT) requ ires Other Funds expendit u re lim it at ion of $315,000 for cost of issuance for the bonds, and $71,102 fo r two Loan Specia list 3 pos it ions (0.26 FTE) a nd ad min ist rat ive suppl ies t o ad minister the funds .

The $12.0 mill ion Genera l Fund t hat was appropriat ed to t he Departme nt at the Apri l 23, 2020 meet ing of the Emergency Board w as disappropriated, and $12 .0 million in Other Funds expend it ure limit at ion was esta blishe d to appropriately and consistently account fo r fund ing received and expended pursuant to provisions of the Coronavirus Re lief Fund . The funds are associated with providing rental assista nce and safe she lt e r a lternat ives for Oregonians who have been impacted by income loss, unemployment, or unde remployment due to COV ID-19, o r who are especially vulne rable to infect ion or hea lth prob lems associated with the virus because of inadequate shelter o r hous ing.

Other Funds expe nd itu re li mitat ion was decreased by $10,365,000 and one posit ion was e liminat ed (0.40 FTE) to reflect t he e lim ination of t he TAN F Hous ing Pilot Program in sect ion 37 of HB 4304. This program was intended to t ransfer $10.5 m illion of fund ing that supports t he Temporary Assist ance fo r Needy Fa milies progra m from the Department of Human Se rvices (O HS) to HCS D fo r rent al assistance; pursuant to the

Budget Narrative


budget reba lance, these funds are being retained by OHS for the TAN F program. The reduction amount includes an offset related t o

admin istrative costs for program setup t hat have already been incurred by HCSD.

Oregon Department of Veterans' Affa irs

The Comm ittee approved a $594,847 General Fund reduct ion t o the Oregon Department of Veterans' Affa irs (O DVA) Vet erans' Services Program and a $43,007 General Fund reduction t o the Aging Veteran Services Program. Genera l Fund reduct ions w ith in the Veterans' Services Program

include accrued vacancy savings ($3 11,714), decreases in services and supplies expendit u res ($123,466), and personnel savings ach ieved by

leaving t wo support posit ions vacant for t he remainder of the biennium ($ 159,667). Aging Vet eran Serv ices General Fund reductions include

accrued vacancy savings ($8,750) and decreases in services and suppl ies expenditu res ($34,257) .

The Comm ittee approved decreasing Lottery Funds expendit ure lim it at ion for t he ODVA Vet erans' Services Program by $1,315,022 . Lottery

Funds reduct ions w ith in the Veterans' Services Program include accrued vacancy sav ings ($100,829) and decreases in services and supplies

expend itures ($132,000), as well as:

• Vete rans' Services Grants fund ing that has not been awarded is reduced by $500,000.

• Campus Veteran Resource Center Grants are reduced by $100,000.

• Funding that is not comm itted or ant icipated to be disbursed to Tribal Vet eran Offices is reduced by $100,000.

• Count y Vete ran Service Officers pass-through fund ing is decreased by $358,325 (or 5% of Lottery Funds support).

• National Service Organizat ions pass-t h rough fund ing is decreased by $23,868 (or 5% of Lottery Funds support).

A decrease of $457,318 in Lottery Funds expend iture limit at ion was approved fo r the ODVA Aging Vete ran Services Program. Lottery Funds

reductions w it h in Aging Veteran Services include accrued vacancy savings ($12,3 18), decreases in services and supp lies expend it ures ($45,000),

and de laying implementat ion of t he conservatorship system rep lace ment project to the 2021-23 biennium ($400,000). General Fund and Lottery

Funds reductions to ODVA programs and services are approved on a one-t ime basis.

The Comm ittee also approved a one-t ime $213,860 increase in Lotte ry Funds expenditure lim itat ion t o allow ODVA t o spend the balance of

committed Lottery Funds carried forward from the 2017-19 biennium. ORS 406.141 requ ires that any al location of Measure 96 Lottery Funds

that rema ins unspent and uncomm itted at the end of t he bienn ium be reverted to the Vet erans' Services Fund . ODVA had a 2017-19 ending

balance of $1,384,576 Lottery Funds, of which $213,860 is committed to a cont ract related to replacing t he conservatorsh ip syst em and w ill be

spent during the 2019-21 biennium. The rema ining $1,170,716 has been reverted t o the Vet erans' Services Fund .

Federal Funds expend iture li mrt at ion of $1,706,284 was approved for CARES Act Provider Rel ief Fund payments from the U.S. Department of Health and Human Se rv ices fo r the Oregon Veterans' Homes to prevent, prepa re fo r, and respond t o the coronavir us. ODVA rece ived a general

Budget Narrative


dist ribution fro m the allocat ion fo r Med icare provide rs ($843,784) and a targeted d istribution from t he a ll ocat ion for Skilled Nurs ing Facil it ies ($862,500) t hat w ill be used to re imburse health ca re related expenses and lost revenues attributable to the coronavirus .

EDUCATION

Department of Education

To gene rat e General Fund savings from the agency's st affing and other operations, t he following actions were approved by t he Committee :

• The fund ing for $300,000 in specific st affing and related costs is shifted from General Fund to Federal Funds ut ilizing CARES Act funds for cost s relat ed to t he COV ID 19 pande mic.

• For the rema inder of the bienn ium, $2.4 mill ion in administ rat ive staffing and other costs in Operat ions will be shifted effective May 1, 2020 from General Fund t o Other Funds using t he resou rces ava ilable under t he approved federal ind irect rat e .

• Se rvices and suppl ies line it ems are red uced by a t otal of $708,020 Genera l Fund across K-12, Early Learning and Youth Develop ment operations affecting travel, employee t ra ining, office expenses, and Info rmat ion Technology services.

• The overall cost of K-12 assessments and the Kindergarten Readiness Assessment is reduced by $600,584 Genera l Fund, in part due to the suspension of assessments due to the COVID 19 pandemic.

• Seven posit ions w ill be held vacant unt il the end of the bienn ium, saving $823,522 General Fund . These posit ions include an Assist ant Supe rint endent, two Execut ive Support Special ists, two Program Ana lysts, an Educat ion Program Special ist, and a Project Manager.

• Vacancy savings will generate almost $1.5 mill ion General Fund ac ross K-12, Ear ly Learn ing, and Youth Development ope rat ions representing exist ing vacant posit ions and est imated savings from fut ure delayed hiring.

• Se lected spend ing on contracts wi ll be reduced by 7.5%, saving an estimat ed $1.5 million General Fund. Th is will affect contracts relat ing t o resea rch, assessment , technica l assist ance to districts, and evaluation of progra ms and funct ions .

The agency has rece ived a lmost $139.0 million in federal fund ing for d istribut ion th is bienniu m to schools, ch ild ca re providers, and other ent it ies due t o the COVID 19 pandemic, mostly as part of t he federal CARES Act. Federal Funds expendit ure lim itat ion was increased by $875,207 in t he Operations budget area in t he event that the agency requires addit ional staff ing resources to ad minister and process the d ist ribution of th is add it ional federa l fund ing.

Vacancy savings of $762,980 General Fund were approved for the Oregon School for t he Deaf. These savings have a lready been real ized and are gene ral ly due to issues wit h delayed hiring because of COVID 19 . Funding of $308,132 is a lso shifted forf ive posit ions fro m Gene ra l Fund to var ious Other Funds sou rces for food service and other Oregon School fo r the Deaf campus worke rs. Both actions are one-t ime in nature .

A reduction of $3.0 mill ion Gene ral Fund was approved from t he appropriat ion t o the High School Graduation and Co ll ege and Ca ree r Read iness Fund est ablished by Ballot Measure 98 . This amount represent s what was not spent dur ing t he 2017-19 biennium and ca rried forward into the

Budget Narrative


current bie nnium fo r both t he Gra nt -in Aid program ($2.5 mi ll ion ) and fo r staff and other costs in the Operat ions part of the budget ($510,703) .

The tota l a mount o rig ina ll y des ignated for the grant s fo r 2019-21 is not reduced . Also approved was an agency ident ified $3.3 mill io n in a va ilab le Othe r Fund resources to offset t he need fo r Gene ra l Fund fo r t he Long-Te rm Care a nd Treat ment program and t he Hosp ital prog ram. These Other Fund resou rces are genera lly from t he dist ributions fro m t he Stat e School Fund fo r t he cu rre nt a nd previo us bie nn ia that were not spent.

Gene ral Fund reductions of a lmost $9 .9 million we re approved to severa l K-12 gran t-in-a id programs.

• Funding is reduced to the Ca reer a nd Technical Ed ucat ion (CTE) Revit ali zat ion grant program ($595,659) and the Phys ical Educat ion gran t progra m ($120,107 ) to acco unt fo r grant fun ds allocat ed fo r t he fi rst year of the b ienn ium t hat we re not spent. These a re one-time red uct ions.

• Second year fun d ing ($173,316 ) w as e liminated fo r two read ing gran t programs -- the Start Making a Reade r Today a nd Reachout to Read programs. These a re permanent red uctions.

• Second yea r fund ing was a lso e liminated fo r t he Regio na l Promise grants ($1 .6 m illion ), Acce le rated College Credit Inst ructo r program ($135,929), an d For t he Inspirat ion and Recogn it ion of Science and Tech nology (FIRST) program ($242,191). The ove rall budget pla n assu med fully funding t he High School Success (Ballot Measure 98) grants, a nd these programs' overall purposes ove rla p t hose of t he High Sch ool Success gra nts . Ind ivid ua l d ist ricts can use the High School Success gra nt resou rces fo r t hese progra ms if they so ch oose . The red uct ions to these programs a re assumed to be permanent.

• Second yea r fu nding fo r t he Support ing Acce le rated Learning Opportunit ie s p rogram ($1. 4 m i 11 ion) a nd the Chronic Abse nteeism grants ($3.2 mill ion) is a lso e lim inated. They sha re the same re lat ion to t he High School Success gra nt as described above, but t he reduct ions to t hese two programs are o ne -t ime in nature .

• Funding fo r t he Science, Techn ology, Engineering, a nd Math (STEM)/CTE Regiona l Netw ork grant s, STEM/ CTE Career Pat hway Fund, STEM/ CTE Innovat ion g rants, and the Stude nt Leade rship Centers is reduced by a total of $1.6 m ill ion as a permanent red uct ion . This represe nts a red uct ion of 8 .6% of t he tota l bie n nia l Gene ra l Fund appro pria t ion fo r these programs .

• The fun ding fo r vis ion screen ing is red uced by $800,000, but ove r $400,000 remains from t he amount a llocat ed fo r t he f irst yea r of t he bie nn ium. This is a one-t ime reductio n.

The Comm ittee approved a reduct ion t o t he Fa rm-to-School Gene ra l Fund approp riatio n of $4 .9 mill ion . This act ion red uces the co rnpetit ive procure ment program by $2 .9 mill io n, the a mo unt current ly allocated to that gra nt program, wh ich wo uld have made ava ilable resources fo r t hose school d ist ricts and othe r progra m sponsors who have s pent t he ir ent ire in it ial a llocat ion t hrough the non-competit ive procurement program . Anot he r $962,124 is reduced from t he non-competit ive p rocu rement prog ram which re prese nts t he est imated amount of a ll ocat io n to sponsors that are ant icipated not to participat e in t he program . Fina lly, t he agency is direct ed t o reduce anothe r $1. 0 m illion from the re ma ining ove rall Fa rm-to-School progra m based o n whe re it determines the red uct ion w ill have t he least impact on t he p rogram. A $250,000 reductio n is made in the Depa rtment of Agricult ure 's re lated prod uce r infra struct ure progra m.

Budget Narrative


Over $3.2 m ill ion Genera l Fund was reduced from t hree ear ly learning programs. First, t he Ch ild Care Focus Networks were suspended for t he

biennium saving $915,861 General Fund. This is a one-t ime reduction. Funding for Early Learning Hubs is per manent ly reduced by $1.3 m ill ion

General Fund (or 8.5%) of tot al b iennial fund ing fo r the program . A one-t ime reduct ion of $1 .0 m illion is approved for the Healthy Families

program represent ing a 4% reduction in t otal Genera l Fund resources for the bienn ium.

Reductions tot aling $129,453 we re approved for two Youth Development Div ision grant -in-aid programs . The fund ing for the second yea r of the biennium for t he Co mmun ity Schools program is el im inated, saving $5 1,603 Gene ral Fund . Gang Prevent ion fund ing Vi/as reduced by $77,850

General Fund (or 10%) of t he bienn ial appropriation for t he program . Both of these are permanent reductions .

The $235,857 Gene ral Fund app rop riat ion for the Task Force on Access to Qua lity Affordable Ch ild Care in HB 2346 (2019) was reduced by

$20,048. Th is task force is to study and make recomme ndations on how to expa nd access t o high-qual it y subsidized ch ild care for fam ilies that

current ly are not el igib le fo r subsidized ch ild ca re but who st il l cannot afford or access care.

Severa l changes were made t o the allocat ions oft he Fund for Student Success. Changes are primarily driven by t he lat est revenue forecast for the Corporate Act iv it ies Tax (CAT), w it h the est imated CAT revenues being $410 million less t han the estimate used to deve lop t he overall

Student Success budget. The largest and most sign ificant of these changes was the decrease in f und ing for the Student Investment Grants. These

are grants t hat must be used for a range of services and programs includ ing ment al and physical hea lth, increased learning t ime, increased

student ach ieve ment, and reduced class size . Origina lly budgeted for $472 m illion for t he second year of t he 2019-21 bienn ium, the amount

ava ilable for these grants was reduced to $150 million. For th is upcom ing school year, school dist r ict s are instructed t o priorit ize social and

emotional health se rvices t o address the mental healt h needs of st udents af fected by the pande mic and the challenges many st udent s current ly face. Other changes to t he allocat ion of Student Success resources include:

• $8.0 m ill ion reduction t o the Student Success grants that were to be made ava ilab le to a lim it ed number of d istricts w ith signif icant

st udent achievement cha llenges. The Oregon Department of Education was concerned t hey could not effect ively use all of t he $12.0

m illion t hat had been origina lly all ocat ed for th is purpose .

• $4.0 m ill ion reduct ion t o the grants to the Educational Service Dist r icts (ESDs) of t he $24.0 million all ocat ed fo r techn ica l assist ance to school d istricts.

The agency slowed its planned St udent Success-relat ed hir ing in part because of t he slowing economy during ea rly 2020. Contracts and

development costs also \i'lle re delayed or awarded in small er amounts. As a result , savings of $1.1 mi ll ion General Fund from t he K-12 set of

programs and anot he r $260,467 General Fund from the ear ly learning programs were rea lized . These amounts are reduced from the overa ll $5 .5

mill ion General Fund appropriation in HB 5047 (2019) . Further savings in Fund for Student Success resources are realized because of the slowed

hir ing, the reduction in the Student Invest ment grants, and other facto rs. In add it ion, eleven posit ions (7 .06 FTE) are el im inat ed from t he 61

posit ions or iginally authorized for t he K-12 programs and admin istrative funct ions funded w ith Fund for Student Success resou rces. Overa ll, $6.S

Budget Narrative


million is reduced from t he programs and functions f unded from the St atew ide Education In it iat ives Account and $606,456 from t he programs

funded from t he Earl y Learning Account of t he Fund for St udent Success.

The Comm ittee approved $6 .9 mill ion Ot he r Funds expendit u re lim it ation for four ch ild care or early learning related projects fu nded from t he

Early Learning accou nt of the Fund for Student Success. This is a one-t ime action for th is bienn ium on ly. To provide the resou rces fo r t hese

projects, a reduction of $6 .9 m ill ion was made from the $12 .5 m ill ion designated for prof essional development of ea rly learn ing workers . The four proj ects are :

• Port of Morrmv Early Learning Expansion for $1.4 mi ll ion for const ruct ion of addit iona l educational space for Head Start.

• YMCA of Co lumbia-W illamette fo r $2 .5 mill ion for the Beaverton Hoop YMCA for a Ch ild Development Center.

• Rogue Val ley Ch ildren 's Discovery M useum for $2 .0 mi ll ion fo r the ren ovation of an exist ing bu ild for ea rly lea rn ing classrooms,

interactive fam ily engagement activit ies, and communit y early ch ildhood program space.

• Wallowa Valley Center fo r Wel lness for $1 .0 mill ion for the ea rly learning port ion of a jo int project w it h Winding Wate rs Med ical Clinic to

provide comprehensive primary and menta l hea lth services t o Wallow a County.

The Comm ittee also approved t ransferring $370,767 Othe r Funds expendit ure limitat ion in the Early Lea rn ing Account of the Fund for Student

Success from the amount budgeted for professiona l development for ear ly learning professionals t o the Operat ions budget to pay for t hree

posit ions. The Student Success Act (H B 3427, 2019) originally provided $12.S m illion Other Funds expend iture limitation fo r professiona l

development fo r ea rl y learning educators, and requ ired t he Ear ly Learn ing Div ision to consult w ith st akeholders, creat e a professional

development plan, and report to t he Legislat ure by January 15, 2020 on t hat proposal. The original plan proposed spending t hese resources for a variety of purposes including recruit ment relat ed efforts, schola rsh ips, apprent iceships, and retent ion efforts. Since there is a reduct ion from

t he $12.5 mi ll ion originally allocated for t h is pu rpose in t his bil l, the Div ision w ill have to complet e a revised plan . Two posit ions (0 .84 FTE) are

authorized fo r the Early Learn ing Div ision (a n Operat ions and Pol icy Ana lyst 4 and a Program Analyst 2) to provide the t echn ica l, coord inat ion,

and adm inist rat ive responsibilit ies fo r the proposa l. Of the $370,767 Other Funds expenditure limitat ion fo r staff and ot her capacity, $109,782

w ill be t ransferred to t he Higher Education Coord inating Commission (HECC) fo r a posit ion to develop and implement the scholarship

components of the p lan.

A t ransfer of $276,729 Other Funds expendit u re limit at ion was approved in t he Stat ew ide Education Init iatives Account of t he Fund fo r Student

Success, from the budget ed amount for professional deve lopment and training for educators to t he Operations budget . The transferred funds

w ill pay for t w o posit ions (0 .84 FTE) to develop and implement a proposa l to diversify the K-12 educator workfo rce . The St udent Success Act (HB

3427, 2019) requ ired t he Educator Advancement Council (EAC) and t he Oregon Department of Educat ion (ODE) to develop a plan to spend

$15.0 mill ion Other Funds t o d iversify t he ed ucat or w orkforce and reduce t he systemic barriers t hat have limit ed d iversificat ion in the past. In

Jan ua ry, t he Inte rim Joint Comm ittee on Ways and Means recommended instructing t he Department of Adm inist rat ive Services to unschedule the remain ing $14,650,414 Ot her Funds until OD E and the EAC report back to the Eme rgency Board w ith more specific det ails on t he ir plan.

Since t here has not been an opportunity for t he agency to report back, the Comm ittee recommends $10,150,414 be unschedu led, w hich

Budget Narrative


provides resou rces t hrough Sept ember to st art t o implement t he plan . The agency can return to t he Eme rgency Board in September to provide

mo re det ail on the p lan and request the reschedul ing of t he rema ining amount . The Com mittee also approved transferr ing $216,820 Other Funds expendit ure lim it at ion from t he Statewide Education Init iat ives Account of the Fund for Student Success from the K-12 Grant-in-Aid

budget t o the Operat ions budget to pay fo r one posit ion (0.88 FTE) to administ er t he grant s t o each school district and t o provide techn ical

assist ance grants fo r the Early Warn ing Syste m authorized in H B 3427.

Addit iona l Federal and Ot her Funds expenditure lim itat ion was approved for Federa l Funds received through the CARES Act and other sources.

For the K-12 Grant-in-Aid budget area, a tot al of $121 .8 mil lion Federal Funds expenditure lim itat ion was added relat ed to the Elementary and

Secondary Emergency Re lief Fund (ESSER) and the Governor's Emergency Education Relief Fund (GEER). Of the tot al, $85.5 m ill ion of the ESSER

fund ing w i ll be distributed to school d istricts based on a formula t ied to t he nu mber of Tit le 1 students. The remain ing $6.5 mill ion in ESSER

funds wi ll be granted to districts and other entit ies that have been especially adve rse ly affected by the COVI D-19 pandemic. GEER fund ing is split

int o three major areas w it h $19.9 mill ion for grant s t o school dist r icts and ot he rs for K-12, a transfe r of $10.0 mill ion t o HECC for post-secondary

inst itut ions, and $2 .5 million for early learn ing, split between ch ild care facilit ies, relief nurse ries, and a t ransfer t o the Department of Human

Services. Ot her early learning Fede ral Funds expend iture limit ation is for CARES Act fund ing specifi cally designated for ch ild ca re ($8.6 million) and an increase in t he amount of federa l Ch ild Ca re Deve lopment Fund resources received by the stat e ($5.8 million) . Also approved was $1 .6

mill ion Ot her Funds expenditure lim itat ion for Coronavirus Rel ief Fund resources t ransferred from the Department of Admin istrative Services.

State School Fund

The Comm ittee approved a decrease of $150,190,773 General Fund, a decrease of $199,679,327 Lottery Funds, and an increase of $100 Other

Funds for the State School Fund . There is also a decrease in t he amount of fund ing t ransferred from t he Fund for Student Success of $50,130,000. Combined w ith a t ransfer to the General Fund of $400 mill ion Lottery Funds from t he Educat ion Stability Fund, these actions ma int ain t he $9.0 bill ion St ate School Fund fo r 2019-2 1. The Education St abil ity Fund t ransfer is authorized H B 4303. These changes refl ect t he

most recent revenue fo recast and t he final balance of availab le fund ing sources across the st ate budget .

Higher Education Coordinating Commission

A number of actions were approved to reduce General Fund spend ing for the Higher Educat ion Coordinat ing Com miss ion (HECC) . Fund ing for four posit ions is shifted from General Fund t o Other Funds -- two posit ions in Research and tw o posit ions in t he Workforce un it. A decrease of $142,659 General Fund is app roved w it h a co rrespond ing increase in Federal Funds expend iture lim itat ion . Reductions in selected serv ices and

supplies cat egories are made fo r a savings of $584,648 Gene ral Fund including communications contracts, comput er support , and cont racts

relat ing to t he Nat ional Career Readiness Credent ial t est ing. Also included in th is reduction are savings in lease costs, as t he space leased in

Eugene fo r the Office of Student Ass istance and Com pletion is reduced .

Five positions (3 .09 FTE) are el iminated t o generate $645,962 of Gene ral Fund savings. The Operations Direct or (0.83 FTE) for t he agency is e liminat ed, saving $159,848 General Fund; the Deputy Execut ive Direct or w ill assume t he responsib ilit ies of th is e liminated posit ion . Two part-

Budget Narrative


t ime posit ions a re eliminated -- an Informatio n Technology pos it ion (0.13 FTE) and a procurement pos it ion (0.50 FTE) esta blished in 2019 but not fil led . A fu ll-t ime workforce pos it ion (0.75 FTE) is e liminated as well as a Tra ining and Development posit ion (0.88 FTE) wh ich was establ ished in 2019. Finally, a resea rch posit ion will be he ld vacant for the rema inder of the 2019-21 b ienn ium; t his pos it ion w ill be necessary in the future fo r data analys is and data syste m ma intenance.

The Comm ittee approved a n increase of $3,541 Ot her Funds expenditure lim it ation and an increase of $3,777 Federa l Funds expenditure limit ation to reclass ify an Interna l Audit o r 2 to an Interna l Aud itor 3 in t he agency's internal aud it program. Th is reclass ificat ion also increased General Fund costs that w ill be absorbed by t he agency du ring the cur rent biennium. Add it iona lly, $109,782 Other Funds expend iture limitation and a Program Analyst 2 posit ion (0.63 FTE) was approved to develop and imple ment a scholarsh ip program fo r ea rly learning educato rs. Fund ing for th is pos it ion w ill be t ransferred from the Oregon Department of Educat ion .

A total of $10 .0 million Other Funds is ava ilab le to offset an equa l a mount of General Fund for the Oregon Opportun ity Grant program (OOG). The addit ional revenues a re the result of the sale of tax cred it s author ized for t he OOG program. Ove r $12.0 mil lion of t ax credits were so ld earlie r in the biennium but we re not accounted for in t he progra m's budget. Not all of t he ava ilable fund ing is used to offset Genera l Fund in order for a reserve to be ava ilab le later in the bienn ium . The OOG program also depends on the interest earn ings fro m the Educat ion Stab ility Fund, but those earn ings have not kept pace with the o riginal est imate for 2019-21 . This leaves the OOG program funded at the same level as the legislative ly adopted budget , but w ith a different fund ing mix.

The Comm ittee approved a $3.6 mill ion reduction to the Oregon Pro mise program which provides finan cia l ass istance prima rily to community college students who have recent ly graduated from h igh school . The agency will need to rest rict el igibility to the program to meet the overall program budget. The restriction will be based on a fam ily's Earned Fa mily Contribution (EFC) which is a measu re used on t he federa l Free Applicat ion for Federal Student Aid (FAFSA) and is based partial ly on income . The EFC based limitat ion will be set depending on the numbe r of appl icants for t he 2020-21 schoo l year . The Comm ittee approved a decrease of $2.5 mill ion General Fund in t he Nat ional Gua rd Tu it ion Assistance program . A total of $3 . 7 m illion General Fund was appropriated for th is program for 2019-21, but the agency est imates t hat only $1.2 mill ion will be required this b ienn ium to meet the de mand for th is program .

Other Funds expend iture limitat ion of $10.0 m illion was establ ished for the Governor's Educat ion Emergency Rel ief (G EER ) fund. Th is fund was establ ished as part of the fede ra l CARES Act . Approximat ely $32.5 mill ion in GE ER funds are first received by the Oregon Department of Education to be spent for early learn ing, K-12 education, and post-secondary education . This $10 .0 m ill ion Other Funds expend iture limitation is transfe rred to the Com mission fo r d istribution to Oregon's post-seconda ry institut ions.

The Comm ittee approved a $238,042 (or 5%) decrease in Genera l Fund support for t he Oregon Health and Science Unive rsity (OHSU) Office of Rura l Hea lth (O RH) and Area Health Education Centers (AHEC) . A $100,000 General Fund decrease to the one-t ime investment in the Oregon Ch ild Integrated Dataset (OCID) was also approved . Based on the tota l projected costs to complete OCID activit ies in the 2019-21 bienn ium, the reduction is not ant icipated to sign if icantly impact t he project outco mes.

Budget Narrative


The Comm ittee approved a decrease in the Oregon Stat e University (OS U) Statewide Publ ic Service Programs of $3,590,258 General Fund, w hich

represents a 2.5% decrease in st ate support for the Agricultura l Experiment Stat ion ($1,904,597), OSU Extension Service ($1,400,060), and

Forest Research Laboratory ($285,601). Decreased fund ing is not ant icipat ed to resu lt in t he e liminat ion of any specific programs but w ill result

in reduced program services and may include pe rsonnel reductions, el im ination of support se rv ices, and real locat ion of lim ited resources to

ma intain program effectiveness. Lottery Funds su pport fo r t he Outdoor Sch oo l Program was decreased by $2,265,292 (or 5%), v11hich results in tot al fund ing of $43,040,555 fo r t he Outdoor Schoo l program in the 2019-21 bienn ium.

General Fund for Public Un ivers ity Stat e Programs is decreased by $824,482, w hich represent s a 5 .0% reduction in support for t he following

programs:

• TallWood Design Inst it ute - $187,716

• Oregon So lut ions - $124,659 • PacWave Ene rgy Test Sit e - $80,000

• OSU Fermentat ion Science - $68,452

• Signat ure Research Cent ers - $57,462

• Labo r Educat ion Resea rch Cente r - $54,920

• Disput e Reso lution {PSU Oregon Consensus) - $48,598 • OSU Marine Research Vessel - $34,226

• Oregon Renewable Energy Cent er - $26,375

• Populat ion Research Center - $24,038

• OM IC Rap id Toolmaking Cente r of Exce llence Resea rch - $22,500

• Inst itute of Natural Resources - $22,039 • Cl in ica l Legal Educat ion - $19,221

• Oregon Climat e Change Resea rch Institute - $17,275

• Add it ive Manufactu ring and Rapid Prototyp ing Educat ion Lab - $15,000

• OSU Channe l M aintenance Study (HB 2437, 2019) - $11,979

• Wi llamette Falls Locks Com mission - $10,022

Reductions in Genera l Fund support for t he Of--lSU Rura l Health Programs, OSU Statewide Public Service Programs, and ongo ing Public Unive rsrty

State Progra ms are approved as pe rma nent decreases in t he level of state fund ing.

A one-t ime increase of $500,000 General Fund to the Public University Statewide Programs budget was also approved for the University of

Oregon (O U) t o pu rchase a new research and teaching vessel for t he Oregon Institut e of Marine Biology (01M B). 0 1 M B's current vesse l was built

Budget Narrative


in 1973 and has reached t he end of its useful life . In add it ion to fund ing provided by Coos County fo r prel iminary design, the state app ropriat ion

w ill be matched w ith instit ution funds and private contribut ions to cove r the $1.3 mi ll ion estimat ed cost of the replacement vesse l.

The Comm ittee approved increasing Other Funds expend iture limitat ion by $2.4 mill ion fo r the costs of issu ing bonds aut horized in SB 5721

(Art icle XI -G and XI -Q bonds) for pub lic univers it ies. Th is increase is offset by a $365,000 Other Funds decrease in issuance costs for t hree

communit y co ll ege capital proj ects (Article XI-G bonds) that are not expected to have ra ised mat ching f unds requ ired to be included in t he spring 202 1 bond sale . Capit al construction limit at ion for new pub lic university capit al projects is provided in SB 5722 and proj ect descript ions

are included in SB 5721.

The Comm ittee also approved continuation of nonlimited aut horit y to HECC to make Ot her Funds expenditures necessary to d isburse general

obligation bonds sold during the 2013-15 b iennium for the benefit of publ ic un iversit ies . HECC has approximate ly $55,000 in remain ing bond

proceeds fo r Southern Oregon University' s Theatre Arts Build ing expansion and remodel project t hat will be d isbursed du ring the 2019-21

biennium.

Three add it ional changes are included in t he table at t he end of the bil l. First, Ot her Funds expendit u re lim it at ion for Operat ions is increased by

$65,000 for the adm inist rat ive costs for t he Oregon Volunteers program adm inist ered by HECC. In the init ial budget passed for th is program,

insufficient expend iture lim itat ion was approved for th is purpose. Other Funds expenditure lim itat ion for Ope rat ions is further increased by

$197,548 fo r add it ional grant-re lated spend ing. The agency rece ived fund ing from the Lumina Foundation to assist in eliminating dispa rit ies in

postsecondary success rates fo r under-represented students of color. The init ial HECC budget included $475,000 in Ot her Funds expendit ure

limitat ion; based on spending patt erns between the 2017-19 and 2019-21 biennia, an add it iona l $197,548 Othe r Funds expend it u re limitation is requ ired to spend t he ava ilable grant funds. Finally, add it ional revenues of $22,783 from t he Western Oregon and East ern Oregon Severance

Tax Funds are ava ilable fo r dist r ibut ion to commun ity college d istricts through the Community Colleges Support Fund. These represent revenues

from 2017-19 ca rr ied forward fo r dist r ibut ion in 2019-21.

HIU M AN SERV ICES

Commission for the Bli nd The Comm ittee approved one-t ime increases of $52,929 Genera l Fund, $500,000 Other Funds expend iture lim itat ion, and $2,552,443 Federal

Funds expendit ure lim itat ion for information techno logy se rv ices, the purchase of vend ing mach ine equ ipment fo r the Commission's Business

Enterp rise Program, and for the Case Management M igrat ion Update project.

Addit iona lly, a one-t ime General Fund appropriation to migrat e and update the agency's case management system was reduced by $468,426 to

help balance t he stat ewide budget.

Budget Narrative


Oregon Health Authority SB 5723 adjusts t he Oregon Health Authority {OHA) budget as a resu lt of the COVID-19 pandem ic in two key ways . First , the b ill reduces Genera l Fund by $103 m illion across var ious programs to he lp address t he stat e budget shortfall due to the economic downturn . Second, the b ill supports increased funding fo r growing Oregon Hea lth Plan {OHP) case loads based on pre li minary estimates and recogn izes a t emporary increase in the Medicaid match rate, t he d urat ion ohvhich is subject to change depend ing on the length of t he fede ra l public hea lth eme rgency declarat ion .

The bill also supports act ions required to add re ss mul t iple budget chal lenges faced by the agency that a re unre lated to the pandem ic, and makes changes re lated to rout ine OHA budget reba lances .. Most of these agency-specif ic budget issues we re d iscussed at the Jan ua ry 2020 meet ing of t he Joint Inte rim Committee on Ways and Mea ns and we re proposed du ring t he February 2020 legislat ive session, but not adopted due to t he Legislatu re's adjournment prior t o final passage of t he omn ibus budget reco nciliat ion bill. SB 5723 does not include new OHA investments nor does it e nhance p rograms beyond exist ing leve ls . To he lp m it igate potentia l future caseload changes o r othe r budget challenges ident ified by OHA or t he Depa rtment of Human Services (OHS), a $100 m ill ion specia l pu rpose appropriat ion to t he Eme rgency Board is establ ished .

The following t able provides a high- leve l summary of the OHA budget changes :

Budget Narrative


Oregon Heallth Authority I General Fund I Lottery Funds I Other Funds I Federal Funds I Total I Posit ions I FTE

OHP caseload growth - preliminary cost estimate 178,000,000 - - 964,200,000 1,142,200,000 - -

Temporary FMAP enhancement I (.307,600,ooo) 1 - I - I 301,600,000 1 - I - I -

State budget rebalance plan• (103,030,944) (14,472) 4,497,950 (94,747, 171) (193,294,637) -21 -9.20

Agency-specific rebalance issues I 2,903,874 1 s2G,ooo I 166, 536, 182 1 (6,893,423)1 163,372, 633 I 54 I 26.71

Oregon State Hospital - current program costs 80,802,291 - (31,029,554) (7,586,868) 42,185,869 58 56.35

Backfill med ica l mari juana shortfa ll I 1,495,538 1 - I (1,495, 538)1 - I - I - I -

March 9, 2020 Emergency Board fund sh ift (4,000,000) - 4,000,000 - - - -

Di rect f ederal revenue fo r pandemic response I - I - I - I 113,576, 594 1 113,576, 594 1 - I -

Subtotal (151,429,241) 811,528 142,509,040 1,276,149, 132 1,268,040,459 91 73.86

Debt service adj ustments I (3,697,749) I I 8,550 I I (3,689, 199) 1 - I -

Total OHAAdjustments (155,126,990) 811,528 142,517,590 1,276,149,132 1,264,351,260 91 73.86

•tncludes reduction of $5. 7 million specio / purpose oppropriation to the Emergency Board for interdisciplinary assessment teams.

The most s ign ificant reductions in te rms of Genera l Fund savings a re in the Hea lth Systems Divis ion, wh ich houses t he budgets fo r non-Med ica id behavio ra l hea lth prog rams and t he Oregon Hea lth Plan (OHP) . The non-Medica id behavioral hea lt h program savings represent a larger share of the ove ra ll Genera l Fund reduction when compa red to t he Medicaid program, despite having a much smaller budget. These reductions are primarily t he result of fund shifts and of leveraging currently unobligated General Fund, and do not decrease ment al healt h or substance use diso rder service leve ls below those currently in place .

Reductions in t he Oregon St ate Hospita l budget resu lt in the eliminat ion of 21 posit ions across several non-d irect ca re progra ms and are not expected to impact the menta l hea lt h t reatment and se rv ices provided to pat ients. Most of the rema ining agency reduct ions are from a combinat ion of one-time vacancy savings and limit ing services and su pplies spe nding. The agency's rebalance reductions are discussed in furthe r deta il w it hin each program su rnma ry be l01iv.

In add it ion t o t he pandernic's significant impact on st ate tax revenue, de mands fo r services are grow ing. The OH P case load is increas ing above cu rrent ly budgeted leve ls based on two genera l factors . First, ind ividua ls who are newly unemployed or who otherwise now meet OH P's income e ligibility criteria are entering the case load . Second, in Ma rch 2020, the fede ral government approved temporary pol icies that prohibit states from d ise nroll ing members, w ith li m ited exceptions, from the ir Medicaid programs due to changes in e ligibility status as part of requ irements to qual ify for a temporary 6.2 percentage increase in federa l Med ica id match, or Federal Med ical Ass istance Percentage (FMAP) . Based on

Budget Narrative


ava ilab le enro llment dat a s ince the beginning of the pandemic, t he pause on OHP d isenrollments is having a much greate r impact on OHP case load leve ls than is t he num ber of individua ls who are new ly e ligible for OH P.

At t h is t ime, fo recasting the OHP case load is incred ibly difficult given t he current unknown t rajectory of the pandemic, t he economy, and fede ra l policies. The t ime line ofthe t emporary FMAP increase and corresponding li m itat ion on d isenrollment s is crit ica l to fo recast ing the caseload . The tempora ry 6.2% enha nced FMA P is ava ilable unt il the end of t he ca le ndar quarter in w hich t he federa l pub lic healt h emergency dec laration expires, w hich is current ly the fourth quarter of 2020, unless the Secret a ry of t he U.S. Department of Health and Human Services ends it earlie r or extends it . The assumpt ions used to develop pre liminary case load cost est imates assume the temporary FMAP inc rease and correspond ing d isenro ll ment rest rictions will rema in in place t hrough the end of the fourth quarte r of 2020, as currently scheduled . However, if the emergency declarat ion is extended to beyond the fourth quarter, then t he st ate w ill receive at least anot he r quarter of FMAP savings and, ve ry like ly, cont inued mat e rial growth in case load leve ls due to t he disenrollment po licy. Conve rsely, if the emergency declarat ion is cancelled prior t o October 1, 2020, then states w ill only rece ive t h ree quarters of t he enhanced FMAP funding.

The FMAP and case load budget adjust ment s included in t he bill assume t he eme rgency dec larat ion w ill expire as currently scheduled on October 24, 2020, thereby guaranteeing t he en hanced FMAP through December 31, 2020. Based on current estimates for th is scenario, the increased FMAP v11ill save more General Fund than t he expected case load increases will cost . According t o the pre limin ary data, t he average biennia l OHP case load is expected to be approximate ly 70,000 membe rs higher than the caseload leve ls currently budgeted in OHA if the emergency dec larat ion expires as currently schedu led. The bil l includes $178 million Genera l Fund and $964 .2 mil lion Federa l Funds t o support these costs . The impact of the enhanced FMAP mo re than covers the est imated Gene ral Fund increase in case load costs through savings of $307 .6 mill ion General Fund . The b ill uses the net savings t o fund shortfa lls e lsewhere in the budget and to he lp fund t he special purpose appropriat ion ava ilable fo r potentia l OHS and OHA caseload and other cost changes .

The caseload adjust ments funded in th is b ill could s ign if icant ly change based on the associated risks, particularly wit h t he t ime line of the federa l emergency dec larat ion, durat ion of the pandem ic, and economic changes. Adjust ing the budget based on pre lim inary caseload est imates deviates from t he standa rd budget process of us ing f ina l s pring/fa ll case load fo recasts published by t he Office of Forecast ing, Research and Analys is (OFRA) . Yet because the fina l fa ll 2020forecast is not cu rrently ava ilab le, the p re liminary case load est imates were used as a p rudent step to ensure mater ial changes in case load levels a re accounted for in the budget. OFRA w ill produce a f ina l fa ll 2020forecast at t he end of August 2020, wh ich may identify, at t he very least, some adjustment s t o t he p re liminary est imates funded in t his bil l that will need t o be addressed in a future agency budget rebalance.

The rema ining changes address most, but not a ll, of t he agency-specifi c reba lance and budget shortfa ll issues proposed during the Feb ruary 2020 legislat ive sess ion . The la rgest of t hese changes occur in the Oregon Stat e Hospit a l and involve, among other t hings, backfil ling a $38.6 million sho rtfa ll in Ot he r Funds and Federal Funds revenues, su pport fo r increas ing d irect care staff ing cost s, paying fo r OHA's opening of two res ident ia l t reat me nt cottages, and repaying ove rclaimed Med ica id re imbu rsement on a one-t ime basis.

Budget Narrative


The budget does not include one-time fund ing in the Hea lt h Systems Divis io n previous ly ident ified to re pay the fede ra l gove rn ment $50 m ill ion fo r ove rdrawn Med icaid match over a six-yea r period . The agency req uested approval from t he fede ra l Cente rs for Med icare and Medica id Services (CMS) regard ing the potent ia l to enter into a mult i-yea r repayment plan to sat isfy t his ob ligat ion . CMS has comm unicated the potent ia l fo r OHA to repay the overd rawn amounts over a t hree-yea r pe riod, but furthe r det a ils have not yet been provided, such as the date in w hich the three-year repayment period wou ld start . OHA is expect ed to continue v11orking wit h CMS to mit igate the impact of t h is obligation in 2019-21 w ithin exist ing agency resources . OHA has a lso ident ified new budget cha llenges not fu nded in t his bill , w hich include decreasing hospital assessment revenue att ributed to decl ines in healt h care ut ilizat ion and increas ing costs at the Oregon State Hospita l. Each of these items represent important budget risks that may need to be add ressed late r in t he biennium.

A more deta iled descript ion by program area fo llows .

Health Systems Divis ion (HSD) In the Hea lt h Systems Division (HSD), the budget includes a Genera l Fund decrease of $209 .1 mill ion, a tota l funds increase of $1.0 bill ion, and an increase of 31 posit ions (13 .25 FTE). The budget adjusts for t h ree sign ifi cant and inte rre lated cost and reve nue changes re lated t o OHP: grow ing case load leve ls; t he temporary FMAP increase; and 2020 coord inated care orga nizat ion (CCO) rate adjustments . These changes a re in addit ion to the much sma ll e r federa l match and caseload ch anges ident ified in the agency's Decembe r 2019 rebalance proposa l, which a re a lso included in th is bill . As ment ioned above, pre liminary est imates reflect an inc rease in the ave rage b ien nia l OHP case load of app roximate ly 70,000 membe rs assuming t he fede ral disenrollment po licies remain in effect through t he end of the fourth qua rter of 2020. The est imated tota l cost of support ing th is caseload increase is $1. 1 bill ion, w hich includes $178 mill ion Gene ra l Fund .

OHP Cost Changes Based on Temporary General Fund Federal Funds Total

Federal Policies ($$ in millions)

Case load Growt h w/ Federa l $178.0 $964.2 $1,142.2

Disenrollment Po li cy

FMAP - 6.2% En hancemen t ($307.6) $307.6 $0.0

2020 CCO Rate Adjustme nt ($20.0) ($97.6) ($117.6)

Jan . 2021 - June 2021 impact from 2020 Rate ($9.l!) ($29.3) ($38.4)

Adjustment

Net Budget Reba lance Impact ($1S8.7) $1,144.9 $986.2

Much of the est imated caseload increase is ant icipated to impact the Affordable Care Act (ACA) caseload, wh ich rece ives a highe r FMAP compared to other caseload categories . Conversely, t he temporary 6 .2% FMAP increase applies to costs fo r non-ACA case loads, wh ich a re not

Budget Narrative


est imated to grow near ly as much as the ACA case load; some of these caseloads also cost much more than the ACA case load on a per me mber basis. Th is dynam ic results in the est imated Genera l Fund savings of $307.6 million from the FMAP inc rease be ing much h ighe r than t he General Fund costs fro m the prel iminary caseload est imates .

Related to the case load growth d riven by the temporary federa l pol icy lim it ing Medica id d isenro ll ment is the retroact ive adjustment of t he 2020 CCO rates, which t he state's Med ica id actuary final ized in July 2020 .. The rate adjust ment is attributed to two actuar ial factors result ing from the increasing nu mber of OHP membe rs rema ining on the case load. First, the increased caseload results in an overa ll improvement in OHP membe r hea lth because members who wou ld normally d isenroll, but who now rema in on t he caseload due t o the fede ra l po licy, a re hea lth ier and help reduce average costs pe r OHP member. The second adjustment involves t he non-medical fixed cost component of the rates. As the case load increases, th is component has decreased wh ile ma i nta ini ng t he same I eve I of fixed cost support due to economies of sea le. The savings from the actuaria l adjustment t otal $20 mill ion General Fund and $97.6 mill ion Federa l Funds. Addit iona lly, because t he 2021 CCO rates w ill now be developed fro m a lower start ing point, specifica lly the lowe r 2020 rates, t han cu rrent ly budget ed, savings of $9. 1 million Genera l Fund and $29.3 million Federa l Funds are recognized; t hese savings result fr om the budget process be ing pred icated on capping med ical cost growt h at 3 .4% per year, and do not reflect decreased payment s t o CCOs or providers . With the adjust ed 2020 rates now lower, the ave rage annual rate of growth fo r both years of t he bienn ium is now lower than the budgeted inflat ion rat e of 3 .4%.

To help rebalance the state budget, the bill includes the follow ing Genera l Fund reductions that are not ant icipated to have a materia l impact on exist ing program service levels :

• $28.5 m illion a lready ach ieved from the following act ions:

o $11 .9 mill ion from the standa rdizat ion of mental healt h res ident ia l rat es, which took effectJu ly 1, 2020 and results in a net tota l funds increase of $34.4 m illion based on leveraging addit iona l fede ral Medicaid dolla rs;

o One-time savings of $0 .5 mill ion re lated to the effect ive date of a port ion of the behavio ra l hea lth provider rate increases implemented ea rlier in the b iennium;

o one-t ime savings of $11.0 m illion from leveraging una llocated federal Mental Health Block Grant revenue; and o the 2017-19 carryover of $5.1 million Ot he r Funds ava ilable to offset General Fund costs.

• $7.9 m illion in savings from us ing $6.0 mill ion in unobligated Genera l Fund in non-Medicaid behaviora l hea lth programs and shift ing $1.9 m illion from the Gene ral Fund to ava ilable fede ra l Ment al Hea lth Block Grant revenue .

• $3 .5 m illion in savings already real ized due to the exist ing delay in imp lement ation of new intensive in-home behaviora l hea lth services fo r ch ildren. Th is reduction assumes t he CCO component of th is progra m remains on track for implementat ion January 1, 2021.

• $3.0 m illion in savings in fund ing for rent al assistance payments and wraparound services due to the anticipated delay in t he construct ion of new pe rmanent supported hous ing un its.

• $5 .7 m illion in savings from vacancies, limit ing services and suppl ies expendit ures, and leveraging unobligated fund ing in the Transformation Program.

Budget Narrative


In addit ion to these adjustments, the b ill includes $12 .6 mil lion General Fund to backfill decl ining tobacco tax revenue for OH P and commun ity

mental healt h services based on changes from the March 2019 st ate revenue forecast, wh ich reflects OHA's legislat ively adopt ed budget, to t he

June 2020 revenue forecast. The bill includes various other adj ustments from OHA's December 2019 reba lance proposal. As part of the closeout

of the 2017-19 b iennium, $20.9 mill ion in unspent hosp ital assessment and OHSU Quality and Access Program revenue is ava ilable to support

OHP costs in 2019-21. As ind icated earlier, however, revenue from hospita ls is a not able r isk in this budget due t o declines in hea lth ca re

ut il izat ion, and subsequent adjustments later in the b iennium may be needed . Increased expend iture l imitat ion of $22 .9 m ill ion Other Funds and $35.7 m ill ion Federal Funds supports the implementat ion of supplementa l fee-for-service payments for publ ic Ground Emergency Medica id

Transportation providers, consistent w ith HB 4030 (2016) . The adj ustment also includes two posit ions (1.50 FTE) t o support program operat ions.

The bi ll supports the transfe r of 29 OHP cl ient service posit ions and related f und ing from DHS to OHA, as we ll as f unding for t he Sperid ian

cont ract that provides requ i red Medica id tax report ing. Th is adjust ment represents the return of a portion of the 476 posit ions transfe rred fro m

OHA t o DHS as part of an inte r-agency rea lignment of OHP el igibil it y and member service funct ions in 2017-19 . Based on cont inued evaluat ion

o f member service funct ions, the agency proposed the ret urn of t he 29 cl ient service posit ions and contract funding but does not expect sim ilar

transfe rs in the future .

In addit ion to these changes, the b ill increases Lotte ry Funds expendit ure lim itat ion by $576,000 to reflect ca rryove r revenue from 2017-19 and

includes various technical adj ustments, which largely reflect t ransfers across programs and resu lt in a net -zero impact on the General Fund.

Health Pol icy and Ana lyt ics (HPA)

The budget for the Hea lth Policy and Ana lyt ics (H PA) program includes a General Fund decrease of $5 .1 mi ll ion, tot al funds decrease of $3 1.3 million, and a decrease of two posit ions (0.70 FTE). The net Genera l Fund change includes one-t ime reduct ions tota ling $4.8 m illion through t he

fo llowing one-t ime budget reba lancing actions:

• $3 .1 m illion from various program vacancies, including one of the six authorized posit ions support ing the Health Ca re Cost Growth

Benchma rk Implementat ion Comm ittee, sh ifting expenses to ava ilable non-General Fund resou rces, removing one-t ime cost s, and

l imit ing spending on various services and supplies categories. Savings in these areas have already been achieved and/or are expected to

be ach ieved w ith m inimal impact on program funct ions.

• $0.6 m ill ion out of $1.2 m illion appropriated in SB 770 (2019) for t he Task Force on Unive rsal Health Ca re. The reduct ion lim its the

amount of fund ing ava ilable for contractual expend itures and is generated from vacancy savings. Part of the vacancy savings has already

been ach ieved due to delayed hir ing beyond t he funded start date of January 1, 2020 and assumes add it iona l savings from holding t he

posit ions vacant through t he rema inder of the biennium.

• $1.1 m ill ion represents reductions fo r Hea lth Information Exchange and Transformat ion Center program act ivit ies based on program

slowdowns due to the pandem ic.

The budget also removes $15 mil lion in unused Federal Funds expenditure lim itat ion and makes technica l adj ustments.

Budget Narrative


Publ ic Health Division

Approved changes to the Publ ic Health Division budget include a General Fund decrease of $7.3 m il lion, t otal f unds increase of $107. 1 mill ion,

and an increase of 15 posit ions (8.94 ITIE) .. The large tota l funds increase is t he result of $110.5 m illion in increased Federal Funds expend iture

limit ation to support funds direct ly distribut ed to the agency t hrough established agreements or fund ing mechanisms not subject to the

legislative federal grant appl icat ion approval process. The largest of these federal d ist r ibut ions is a combined $96.2 mill ion in supplemental Epidemio logy and Laboratory Capacity program funding, most of which t he Public Healt h Division will use to support COVID-19 test ing and

cont act tracing act ivit ies. The following t able lists all of t he federa l d istributions included in the overal l limitation adjustment :

COVI D-19 Re~ponse - Direct !=Nle I Revenue Di d ri bulions

Public Hea h Crisis Cooperative Agree men

Em er,fng lnfect·ons Progra

Ryan, Whi e HIV/ AIDS Program

osp a Prepare dn ss Program

Emerging Infections Program Cooperat ive Agreement

mmun at on ,md Vo1ccm :. for- Ch il dr n

Epi~miology and Laboratory C!!Padty

ape Prevent ion

Total

!=ederal :i:unds

$7.8

S2. 6

S0.2

S .8

S0.2

S 7

$96. 2

so. $110.5

The budget includes one-time Genera l Fund reduct ions of $4.3 m illion, wh ich does not impact the Public Health Division's response t o the

pandemic. A $1.5 m illion General Fund reduct ion reflects savings from lower-than-budget ed ut ilization of services provided through t he Reproduct ive Health Equ ity Act (RHEA) and Contracept ive Ca re programs. Because RHEA utilization was lower than expected prior t o the

pandemic, OHA had reserved a portion of utilization savings for program outreach; however, though the contract process stalled due to t he

pandemic, the agency is now on track to award cont racts lat er in the summer of 2020. Another $1.3 m ill ion General Fund savings is achieved

from a variety of vacancies, fund sh ifts, and lim it ing of services and suppl ies expenditures; these reductions do not have a material imp act on

exist ing programs or service levels.

The budget for the new Universal Nurse Home Visi t ing Program is reduced by $0.6 m illion. A portion of th is reduction is based on exist ing

program implementat ion delays and the delay of some program development activ it ies, such as certa in aspects of program design and evaluat ion and the onboarding of new cohorts . While t he ear ly adopter communit ies continue moving forward w ith implementat ion, the agency

has ind icated t he one-time budget reduct ion effectively aligns w ith slowdowns caused by t he pandem ic. Another $0.4 m ill ion General Fund is

saved by delaying unt i l January 1, 2022 the start of new stat utory provis ions adopted in SB 669 (2019) requir ing OHA to accelerate the

inspection cycle fo r in-home care agencies from once every t hree years to once every two years. The change in operat ive date of the new

Budget Narrative


inspect ion cyc le is effectuated by HB 4304 . In addit ion t o the agency-specific reduct ions ident ified t hrough the budget rebalancing process, t he

bil l further reduces General Fund costs by using $4.0 mill ion in available f ederal Coronavirus Re lief Funds in place of a li ke amount of General

Fund allocated by the March 9, 2020 Emergency Boa rd for COVID-19 response act ivities .

The bi ll includes seve ra l changes previously identified as part of the agency's December 2019 reba lance proposal. A $1.5 m il lion shift from Other

Funds t o General Fund represents the backfi ll of rema ining med ical marij uana revenue supporting non-medical marij uana program act iv it ies, specifica lly communicable disease program fund ing for loca l publ ic hea lth authorit ies . A sim ilar adj ust ment was included in t he 2019-21

legislat ively adopt ed budget ; howeve r, medical marij uana revenue collections decl ined fast er than anticipated at that t ime .. Th is adj ustment

results in the use of all rema ining med ica l marij uana revenue budgeted for the med ica l marij uana program .

Consistent w ith avai lab le on-going revenue identified by the agency, Other Funds and Federa l Funds expendit ure lim itat ions are increased by a

combined $0.8 m illion to fund seven posit ions (4.15 FTE) to support com mun icab le and other disease prevent ion program act iv it ies, the stat e

publ ic health laboratory, and healt h prepa redness program funct ions. An increase of $1 .9 million Federa l Funds expendit ure lim itat ion and n ine

posit ions (5 .67 FTE) w ill support work requ ired by th ree federal grants for Surveillance of Non-Fatal Su icide- Related Out comes, Overdose Data to Action, and Rape Prevent ion Educat ion . The agency rece ived prior legislat ive authorizat ion to apply for t hese grants.

Due t o ava ilable tobacco t ax revenue carried forward from 2017-19, Other Funds expend iture l imitation is increased by $5.0 m illion to support

one-t ime act iv it ies, including a tobacco cessat ion campaign, tobacco prevent ion work occu rr ing at the loca l level, and the implementation of

Execut ive Order 19-09 pertain ing to tobacco and vap ing. A separat e adjustment result s in a $200,000 decrease in Ot her Funds expenditure

lim it ation to reflect decl ining t obacco t ax revenue ava ilable for t he Tobacco Use Reduct ion Account according t o the June 2020 state revenue fo recast .

The bi ll makes ot her technica l adjustments to al ign expend iture l imitations w it h availa ble resources and support net-zero transfe rs across

programs.

Oregon St ate Hospita l (OSH)

Budget adj ustments for t he Oregon St ate Hospita l (OSH) include a General Fund increase of $79 .2 mill ion, a tot al funds increase of $43 .1 m ill ion,

and an increase of 37 posit ions (47.85 FTE). The Genera l Fund change includes reduct ions total ing $5 .6 mil lion, of which $3 . 7 m illion is from nondirect care vacancy savings. The rema ining $1 .9 mil lion result s from the elim ination of 21 posit ions across seve ral non-direct programs, which

include Ut i lizat ion Management, Hospita l Systems Analys is and Management, pat ient incent ive f unct ions, program execut ive ove rsight, LEAN

and Risk Management, faci lity ope rat ions, and legal serv ices . These reductions are made w it h the understanding that the safety of pat ients and

staff and patient t reatment serv ices w ill not be negat ively impacted.

Increased Genera l Fund backfills a $3 1.0 m ill ion shortfall in Other Funds revenue and $7.6 mil lion shortfa ll in Federa l Funds revenue . The Other Funds revenue shortfal l is related to CMS certifi cat ion of add it ional hosp it al- licensed beds, which enables t he hospita l to bill insurance plans for

Budget Narrative


qualify ing patient ca re. Based on an est imated increase in insurance reimburse ments, the 2017-19 budget assu med General Fund savings of approximate ly $30 mill ion, wh ich d id not mat erial ize due to delays and setbacks w ith establ ish ing the appropriate b illing infrastructure and changes in pat ient reimbu rse ment eligib ility. The 2019-21 budget w as deve loped under the pretense of revenue co ll ections improving; however, OHA no longe r expects reimbursement leve ls to ach ieve any Genera l Fund savings, includ ing the inflat ionary impact recognized du ring the budget development process. The Federal Funds revenue shortfall relates to decreased ava ilab ility of Disproportionate Share Hospita l payments and changes in federa l match rates .

Also included is an increase of $8.5 mill ion Genera l Fund and 33 posit ions (3 1.35 FTE) to address increased patient acu ity and the trans it ion of civil cornmit rn ent pat ients to lower levels of care at the Junction City campus. These changes are based on patient transfers from t he Salem Campus to make more bed space ava ila ble fo r pat ients admitted under "aid and assist" court orders . The fund ing inc ludes support for the agency's open ing of two e ight-bed t reat ment cott ages at the Junct ion City campus short ly after the beginn ing of the 2019-21 bienn ium and prior to t he agency request ing General Fund .

The budget inc ludes $4.0 m illion General Fund and 25 posit ions (25 .00 FTE} to support the imp lementation of the nurse staffing plan pursuant to the requ ire ments of SB 469 (2015) . In add it ion to th is inc rease, $23.6 mill ion General Fund was approved t o support increased staffing and overtime costs, most of which is re lated to enhanced pat ient superv ision co mmensurate w ith pat ient acu ity levels . Salary and overt ime costs cont inue to be a s ign ificant budget challenge at the hospit al g iven the limited ava ilabilit y of bed space for patients who need hospita l leve ls of care, wh ich contributes to h igher acu ity pat ients being p laced in both the Salem and Junction City campuses. OHA has ind icated staffing costs, inclusive of those supported in th is bill, cont inue t o t rend higher than expected and pose a risk to the State Hosp ital budget.

Federal Funds expend iture limirtat ion is increased by $3 .0 m ill ion to reflect the direct d ist ribution of federal support aut horized under the Coronavirus Aid, Relief, and Econorn ic Secu rity Act. OSH rece ived th is fund ing as part of t he Provider Re lief Fund, wh ich helps hospita ls and other health ca re providers offset costs or lost revenue attributed to COV ID-19. Other adjustments include one-t ime Genera l Fund of $8 .1 mill ion to support the repayment of overcla imed federal Medicaid match and $1 .9 mill ion General Fund fo r the replacement of the pe rsonal monitor ing transmitter system, wh ich helps locate st aff at t imes of du ress and is no longe r supported by the manufacturer. The processes result ing in t he overdrawn Medicaid match have s ince been ident ified and corrected .

Publ ic Employees' Benefit Boa rd (PEBB) The Comm ittee approved an increase of $61.9 million Other Funds expenditu re limit at ion for the Pub lic Employees Benefit Boa rd (PEBB}. Near ly all of th is increase supports overall healt h benefit payments funded by me mber prem iums based on changes in me mber enro ll ment and fluctua t ions between membe r plans, and does not rep resent h igher than expected per-member benefit costs. A s imila r expend irture limitat ion increase was app roved as part of a pr ior agency re ba lance, but on a one-t ime basis . The budget a lso includes $1.9 mill ion Ot he r Funds to support info rmat ion t echnology securit y and system changes. Of th is amount, $1.0 million is for one-t ime expenses.

Oregon Educators Benefit Boa rd (OEBB)

Budget Narrative


An increase of $63 .6 m illion Other Funds expend iture lim itat ion is included in the Oregon Educat o rs Benefit Board {OEBB) budget . Sim ilar to

PEBB, most of th is increase supports overall benef it payment s funded by member premiums based on changes in member enrollment and

fluctuat ions between member plans. The am ount of $1 .. 6 m il lion also supports informat ion technology securit y and system changes, nearly all of

wh ich is for one-t ime expenses.

Central Services The Comm ittee approved budget changes to Cent ral Services, includ ing a General Fund decrease of $1 .. 0 mill ion, a tota l funds decrease of $0.7 m illion, and an i ncrease of eight posit ions {3 .14 FTE) .. General Fund reductions reflect vacancy savings for posit ions in the Fisca l and Operat ions

Div ision and External Relat ions .. The vacancy savings are not expected t o mater ia ll y impact program operat ions o r service levels.

An increase of $0.7 m i 11 ion General Fund and n ine posit ions ( 4 .14 FTE) represent t he sepa rat ion of certa in human resouroes (H R} functions from

the jo int OHA-DHS shared services funding model. Previously, each agency rel ied on its own staff for certain HR functions, but other HR

funct ions were part o f the tv110 agencies' Shared Services model, w it h the posit ions housed in OHS .. Th is act ion d issolves the HIR Shared Services

component based on agreement among both agencies that their HR needs can be better met v11 ith dedicat ed staff. As a result , n ine posit ions and related fund ing are transferred from DHS to OHA.. Si m ila r offsett ing adjustment s are included in OHS, where t hese posit ions were previously

budget ed as part of the shared service budget structu re .

State Assessments and Enterpr ise-w ide Costs {SAEC) / Sha red Services

Changes to the SAEC/Shared Services program include a General fund decrease of $2.4 m illion, a tot al funds decrease of $2 .3 m illion, and an

increase of two positions {1.38 FTE). A $3 .. 1 m il lion General Fund reduction, and a smal l Lottery Funds decrease of $14,472, represent vacancy and serv ices and suppl ies savings from the OHA port ion o f va r ious DHS-OHA Shared Services reductions, w ith t he largest savings identified in t he

Off ice of !Informat ion Servioes . The agency identified these savings as be ing achievable w it hout a signif icant im pact on p rogram services .. A

$100,000 General Fund reduct ion is achieved by postpon ing t he relocat ion of HR st aff and expansion of office space in t he Healt h Policy and

Analyt ics Div is ion ..

A decrease of $800,000 General Fund and $900,000 t otal funds in SAEC removes fund ing t hat p reviously supported OHA's share of expenses fo r

Human Resources services previous ly provided through the Shared Services model; t h is funct ion is now supported in Cent ral Services as

d iscussed above .. Small Genera I Fund and federal Funds adj ust ments are also m ade in SAEC as a resu lt of t he t ransfer of 29 OH P Member Services posit ions from DHS to OH.A, wh ich has offsett ing adj ustment s i n DHS and is d iscussed above as pa rt of the budget adj ustments in the

Health Syst ems Div ision. Ot her changes include an increase in l!..ottery Funds expendit u re lim it at ion of $250,000 to reflect ca rryover revenue

from 2017-19 and techn ical adjustments to p roper ly a lign costs across budget st ructures .

Department of Hu man Servioes

Budget Narrative


Budget adjust ments in SB 5723 for t he !Department of Human Services (IDHS) primarily consist of actions needed to rebalance the agency's

budget and a very limited number of ite ms approved in response to agency requests for funding to add ress budget needs or issues emerging

since adjournment of the 2019 legislat ive session .. While some adjustments help cover the cost of temporary st eps taken by DHS to help agency

cl ients and providers deal w it h impacts of the COVIID-19 pandemic, many aspects of the pandemic's ef fect on caseloads and associated cost s w ill

not be quantified or actionable until the next quarterly case load forecast in the fal l of 2020.

lln add it ion t o expend iture increases, the budget approved by the Comm ittee includes $74 .. 6 m illion in General Fund reduct ions, wh ich equat es

to a 1.9% reduction in General Fund from t he agency's 2019-21 leg islat ively approved budget level. However, the overall General Fund decrease

is $211 .. 7 mi ll ion or a 5 .5% drop; th is amount of General Fund is removed from the budget due t o a t emporary increase in federa l Medica id

match ing funds .. In March 2020, a 6 .2% increase in t he Federal Med ical Assist ance Percent age (FMAP) was authorized as part of the Fam ilies

First Coronavirus Response Act .. The add it ional funds are avai lab le to states from January 1, 2020, through the qua rter in wh ich the public hea lth

emergency period ends; a recent extension pushes the emergency period into t he last quarter of 2020. Based on this fou r-quarter projection,

IDHS est imat es receiving an extra $180 million Federal Funds; the approved budget plan uses these monies to free up (fund sh ift) the same

amount of Gene ral Fund. This General Fund is then used t o cover DHS budget issues, replace agency Genera l Fund reduct ions that would

ot herw ise be needed to ba lance t he stat e1.1v ide budget, and support a new special purpose appropriation to he lp add ress agency caseload cost s

or other budget problems arising over the next few months.

At t he January 2020 meeting of the Joint II nterim Committee on Ways and Means, OHS present ed a reba lance report t ied to severa I dyna mies

affecting the agency's budget . These include program cost increases and savings, revenue changes, and t echn ical adjustments needed to keep

the budget ba lanced .. For context, the 2019-21 legislat ive ly adopted budget was based on t he spring 2019 caseload forecast; t he rebalance factors in caseload and cost changes t ied to t he fal l 2019 forecast. The agency's rebalance ca lcu lat ion resu lts in a, cost of $14.4 mil lion General

Fund; th is net increase amount includes transferring some posit ions and fund ing to t he Oregon Hea lth Authority (Ol-1A) .. Do llar and FTE amounts

associated w it h these transfers have been updated since Janua ry due to changes in t ransfer t im ing.

Budget projections fo r non-General Fund resou rces or programs drive reba lance decreases of $913,217 Other Funds expenditure lim itat ion and

$26.3 million Federa l Funds expendit ure lim it at ion. The reba lance also includes a series of posit ion actions ,(technica l adj ust ments, t ransfers,

position abol ishment /est ablishment) that net out to a decrease of 38 posit ions (15 .. 16 FTE). Alt hough severa l months have passed since the

rebalance was in it ial ly ca lculated, most components are st ill val id and warrant related budget adj ust ments. Some caseload-re lat ed assumpt ions, such as those in Self Sufficiency, are known to have been impacted by the pandemic, however, relat ed data was not yet ava ilable t o help inform

the 2020 spring caseload forecast, so the next practicable opportunity for recast ing and report ing on budget proj ections w i 11 be after the fall

2020 caseload fo recast is final ized lat er t h is yea r. The Committee approved the agency' s reba lance request, as outlined in the following t able:

Budget Narrative


DHS 2019-21 - January 2020, Rebalance High lights General Fund Summary ONLY; Dol lars in Mill ions

Needs/Costs $$

Caseload (SSP, APD, IDD) 30.4

FMAP changes 6.9

Motor pool vehicles (CW and APO) 0.4

Subtotal Needs 37.7

Savings/Decreases

Caseload/cost per case changes

Error corrections (SSP, APD)

OHP Eligibility- return client services to OHA

Disband/reorganize HIR Shar,ed Services and transfer pos iti ,ons to OHA

Tech Adjustments, Transfers, Position Abolish/Establish

Subtotal Savings

Net General Fund Position

(10.3)

(11.7)

(1.1)

(0.0)

(0.1)

(23 .3)

14.4

Pos FTE

(29) (10.75)

(9) (4.14)

(0.27)

(38) (15.16)

(38) (15.16)

In Janua ry 2020, in add it ion to the rebalance req uest , the Department submitted ten proposa ls tota ling $131.1 million Genera l Fund t hat included 492 new posit ions ,(440 .. 15 FTE). Due to t he state's current fiscal posit ion, on ly a sma ll subset of t he DHS requests cou ld be approved by t he Committee; these generally support imp lementation of already approved state or fede ral legislation, high priority posit ion needs, and co llective bargain ing agreements for non-state workers .. In addit ion to items outstand ing from ear lier th is year, fund ing to cover costs of some

temporary actions OHS has taken in response to t he COVID-19 pandem ic was also provided. Other changes included in the budget are increases

in Federa l Funds expenditure limitat ion t ied to addit ional federa l dollars from various funding streams allocated to the agency due t o the

pandernic .. The chart below shows t he budget ary adjustments by primary issues or components:

Budget Narrative


Department of Human Services 2019-21 Budget Adjustments Approved in SB 5723

General Other Federal Federal Funds Total

Fund Funds Funds No11l imiited Funds Pos FTE 2019-21 Legislative ly Approved {Through August 5, 2020) 3,878,048,515 704,801,492 6,133,004,273 1,939,345,331 12,655,199,611 9,445 9,324 .. 60

Rebalance 14,434,272 (913,118) (26,310,600) (12,789,446) (38) (15.16)

Strength ening, Prese rving a nd Re unifying Families (SPRF) 13,788,757 4,000,000 17,788,757

Family First Preservation Act Trans it ion Funds 2,072,633 2,072,633

IV-E Pass Through to Public Defense Services 9,000,000 9,000,000

Behavior Reha bi I itation Services (BRS) rate inc rease 90,198 1,686,218 1,776,416

SB 155 Third party chi ld abuse investigations 1,836,698 1,560,402 3,397,100 17 6.46

Non-state employee collective barga ining 3,131,713 6,117,523 9,249,236

Child Welfare Executive Order re commendations 3,142,910 35,872 1,741,155 4,919,937 33 26.84

New pos it ions for risk mitigati on 301,559 17,606 248,742 567,907 7 3.50

Address COVID-19 impacts (includes add 'I Federa l FtJ nds) 7,604,105 (1,968,692) 29,744,844 550,000,000 585,380,257

Enhanced FMAP fund shift (180,000,000) 180,000,000

Reductions (74,629,289) 374,413 (36,580,255) (110,835,131) (32) (16.00)

Debt Service savings (1,363,570) (1,363,570)

Total Adjustments (211,662,647) (893,517) 171,720,260 550,000,000 509,164,096 (13) 5.64

% Change From Leg is la tive ly Approved -5.5% -0.1% 2,8% 28.4% 4.0% -0. 1% 0.1%

While the approved changes address many OHS budget issues, budget risks do remain .. In addit ion to evolving COVID-19 pandemic response challenges, these include adjustments to caseloads based on future forecasts ; cost per case increases due to rate or acu ity changes; the agency's ability t o manage personal services expenditures includ ing non-budgeted (double filled) posit ions and pay equity impacts; volat ility in usagebased costs or charges for services; assessment of federa l program pena lt ies; federal law, rule, or fund ing changes; and legal costs.

Budget Narrative


To help track the following budget report narrative, note that the OHS 2019-21 budget is built around eight budget st ructures, reflect ing five

direct program areas : Self Suff iciency Programs (SSP), Ch ild Welfa re (CW), Vocationa l Rehabilitat ion (VR), Aging and People w ith Disab ilit ies

(APO), and Int ellectual and Developmenta l Disabilit ies (100); along w it h three support funct ions : Central Services, Shared Services, and St ate

Assessments and Ent erprise-wide Costs (SAEC) . A more detai led descript ion of sign ificant budget changes by progra m follows.

Self Sufficiency Programs W ith in the Self Suff iciency Programs (SSP), the COVID-19 pandemic is creat ing h igh demand for Supplementa l Nutrit ion Assist ance Program

(S NAP) benefit s; corresponding federal emergency SNAP allotments and program act ions drive an increase of $550 m ill ion Fede ral Funds

Nonl imited . Other budget adj ustments approved by t he Committee for SSP resu lt in a net decrease of $23 .6 m ill ion General Fund, an increase of

$2.3 mill ion Other Funds expendit ure lim itat ion, a net increase of $1 .9 m ill ion Federal Funds expendit ure lim itat ion, and a net decrease of 29

posit ions (10.75 FTE) . Embedded in these amount s is a decrease of $4.7 m illion tot al funds due to a rebalance action shift ing posit ions from OHS

to the Oregon Hea lth Authority (O HA) . In 2017-19, 476 posit ions we re t ransferred from OHA to OHS as part of an int eragency real ignment of

Oregon Hea lth Plan (OHP) elig ibilit y work and other related funct ions. Si nce t he in it ial move, the agencies have returned a subset of these

posit ions and activities back t o OHA. Based on further evaluat ion of member service funct ions, t he approved rebalance transfers 29 cl ient se rv ice posit ions (10. 75 FTE) and relat ed fund ing from OHS t o OHA, along w ith t he Sperid ian cont ract supporting requ ired Medica id tax

reporting . The agencies do not ant icipate add it ional OHP mem be r se rvice transfers being requested in future rebalance or budget deve lopment

act ions.

As noted previously, the approved reba lance is based on the fall 2019 caseload forecast which already projected increases in both SNAP (8.5%}

and t he Temporary Ass istance fo r Needy Families (TAN F; 6.7%) caseloads. Due to t he COV ID-19 pandem ic, demand for these programs has cont inued to grow even more, however, so lid budget impact est imates are not expected to be developed unt i l after the fa l l 2020 forecast . Part

of the cha llenge is pred icting how the COVID-19 economy w ill affect the SNAP and TAN F programs, along w ith determin ing how pandemic

unemployment i nsu ran ce and other po Ii cy or federa I rule changes w i II impact caseloads and/ or cl ient behavior. The "frozen" reba lance does

include a case load-relat ed increase of j ust under $2 .0 m illion General Fund ($9.4 m i ll ion tota l funds); th is is t ied prima rily t o a 2019 sum mer

hir ing season that did not mate rialize, so cl ients did not move off of the TANF caseload at t he rate t hey had in the past .

The approved reba lance p lan incl udes an addit iona l $2.0 million Othe r Funds expenditu re limit ation to al ign the budget w ith t ransfers of Child

Care Development Fund (CCDF) resources from the Oregon Department of Education to OHS; t hese doll ars support t he Emp loyment Relat ed Day Care (ERDC) program. The program has also been affected by pol icy ch anges due to the pandemic and has implemented zero-copays, higher

income limits, and provider payments to cove r closures/a bsences to help keep families and providers in t he program . Current ly these costs are

expected to be cove red by ER DC General Fund freed up due t o lower caseloads and some add it ional CCDF doll ars, but that may change based on

how schoo ls reopen in the fall and other program needs evolve. Other rebalance changes affecting t he SSP budget include corrections for an

error in budget deve lopment; expenditure lim itat ion adj ustments for apprenticeship ch ild care revenue and fede ral grant f unds; and techn ical

adj ustments and t ransfers .

Budget Narrative


Approved budget adjust ments include a tot al of $3.7 mill ion General Fund cover ing the cost of Df--l S short-term act ions t aken to help Oregonians

ma int ain access to serv ices during t he pandemic. These include administrative costs associat ed w ith provid ing emergency or other special

pa ndemic SNAP benefit s and cost s t ied t o TANF pol icy cha nges around resource lim its and sanct ions. The Committee also added $3 .2 m ill ion

Federal Funds expenditure limi;tat ion t o support The Emergency Food Assistance Program (TEFAP) which received addit iona l fede ral funding

under bot h the Families Fi rst Coronavirus Response Act and the CARES Act. This program provides commodit y foods t o stat es fo r d ist ribut ion

t hrough loca l food ba nks or other selected agencies. Due to the pa ndemic, the Department also sent food banks $8 .. 0 m ill ion General Fund in d irect assistance; t hese expendit ures w ill be re imbursed by CHF f unding under a recent Emergency Board action.

The Comm ittee approved t he fol low ing reduct ions, tota ling $22.4 million General Fund :

• Capture vacancy savings ($3 .0 million Genera l Fund)

• Cover SNAP program admin istrat ion costs w it h a federal performance bonus ($3 .9 million General Fund; sh ift t o Federal Funds)

• Elim inate TANF Housing and Education and Training p ilot proj ects t hat w ere aut horized in HB 2032 (2019) (reduce General Fund by $14.0

m illion and replace w it h TAN F Federa l Funds from p ilots)

• Reduce JOBS program support services and contracts ($1.S mi ll ion)

These are one-t ime red uct ions and shou ld be reevaluat ed fo r ongoing or adj usted reductions du ring t he 2021 legislat ive session . The TANF p ilots

w ere temporary in nat ure and are already slated t o be phased out in t he 2021-23 cu rrent service level .

Ch ild W elfa re The budget approved by t he Comm ittee for Ch ild Welfa re (CW) reflects t he fo l low ing net adjust ment s: a decrease of $9.3 m ill ion General Fund,

a decrease of $13,723 Other Funds expendit ure l imitat ion, an increase of $20.3 million Federa l Funds expendit ure lim it at ion, and an increase of

15 posit ions (13 .29 FTE).

Approved budget adjust ments include t he DHS reba lance plan as presented in January 2020. The projected bienn ial average counts fo r almost

all case loads w it h in CW decreased betw een t he spring and fa ll fo recasts, fo r an overall decl ine of 1.7% or 364 chi ld ren; adoption assistance grew slightly. The associated fu nding change is a decrease of $10.4 million Gene ral Fund ($12.8 million total f unds); t hese amounts include cost per

case adj ust ments. Caseloads have continued to shift low er during the COVIID-19 pandem ic, but it is unknown w hether or not t his t rend w ill be

sust ained or at what point and how t he pandemic may funda ment ally change the service array or syst em needs.

The program's rebalance also conta ins an increase of $396,107 General Fund due t o a pre-pandemic update in t he Federal M ed ical Assistance

Percentage (FMAP). The 6.2% t emporary en hanced FMAP is driving a $5 .0 m illion fund sh ift from Federal Funds to General Fund outside of the

reba lance adjust ment; in add it ion to Medica id e ligible costs, FMAP rat e increases are m irrored in otherfedera l Ch ild Welfa re fu nding st reams.

Budget Narrative


To provide vehicles for staff to complete travel necessary for invest igat ions, visitat ion, and other needs, $343,766 General Fund ($429,708 total funds) is added to pay for 80 new veh icles; these a re obta ined from the Department of Ad min ist rat ive Services' fl eet services program . The rebalance includes techn ical adjustments, p rimarily for moving $7.4 m ill ion General Fund ($9 .9 mill ion tot al fund s) in enterp rise costs (state government service cha rge, facilit ies rent, compute r replacements, etc.) t o Stat e Assessments and Enterprise-wide Costs for nev11 posit ions added in t he 2019-21 adopt ed budget ; th is is standard post -session adjustment act ivit y.

Changes, both increases and decreases, are a lso approved fo r Other and Federal Funds expend iture lirnitat ion to add ress revenue not expected du ring budget developme nt , such as an increase of $587,167 Other Funds from marr iage tax collect ion; t h is fund ing is ded icated to domestic violence services. Two limited du rat ion posit ions (1.26 FTE) and Federa l Funds expenditure limit at ion reflect an increase in federal Child Abuse Prevention and Treat ment Act funds; the add it ional resources w ill he lp fam ilies and infants affected by substance use d isorders.

Fo r reba lance overall, caseload savings and t echnica l adjustments reduce the CW budget by $18.2 million Genera l Fund, which masks $16.1 milli on General Fund {$24.8 mill ion t otal funds) approved t o address program needs. The largest investment approved by the Comm ittee, at $13 .8 million Genera l Fund, is made in the St rengthen ing, Preserving, and Reunify ing Families (SP RF) program. Objectives of th is program include keeping children safely in t he ir homes if possible, improving permanency outcomes, and reducing t he length of stay in fost er ca re. Services include al coho l and drug t reat ment, counseling, housing assistance, and parent t ra ining; in 2017-19 about half of SP RF spend ing {$26 .5 rnillion t ota l funds) was in the last category. When coupled w ith $4.0 mill ion in Fede ral Funds expend iture limit at ion supported by federal Fam ily First Transit ion Act funds and $2.0 mill ion in rema ining federa l Tit le IV-E waiver dollars, the add it ional Genera l Fund will set t he 2019-2 1 program budget at about 80% of the prior bienn ium's level ..

As background, s ince its creat ion in 2011 (SB 964) and, up unt il October 1, 2019, SPR F had been funded w it h a mix of federal dollars and stat e General Fund. The ava ilability of federal resources, e ither accrued savings and/or wa ive r fund ing, was a core assumption of the enab ling legislat ion. A waive r was needed because SPRF services have not been e ligible for regular matching federa l program funds . In 2018, t he Fam ily First Prevent ion Services Act (Family First) reformed federa l child welfa re finan cing st reams, which led t o the wa iver fund ing fo r SPIRF laps ing three months into the current b iennium; the associated federa l dollars were removed from the 2019-21 budget, which effective ly e liminat ed half of t he budget. Due t o ot he r pr iorit ies, the SPRF budget was also reduced by $7.0 m ill ion General Fund.

While OHS did not have a specific p lan for operating SPIRF at any lower level of fund ing, du ring the 2019 session t he agency ind icated it would strive t o e liminat e services that were proving less effective or not meet ing des ired outcomes. lln addit ion, it appeared possible that the funds rema ining could be leveraged t o match federal funding ant icipated to be ava ilable for foste r care prevention under Fam ily First ; allowing match on certain prevent ion act ivit ies was another element of the federa l financing refo rms. HO\ivever, efforts to e liminate specif ic contracts have not proven successfu l and t he agency's rev iew of SPRF se rvices concluded that very fe w of them would be e ligible fo r match ing feder al dol lars . As a result, OHS continued to ope rat e t he program as if no reductions in federal o r state fund ing occurred .

Budget Narrative


The approved SPRF fun ding leve l w ill requ ire t he agency to scale back the program ove r the second yea r of the b iennium . In add it ion, due to the use of one-t ime fede ra l resou rces to pay fo r the p rog ra m th is biennium, the budget for 202 1-23 is expected to be set at no greater than 75% of the 2019-21 total funds budget; it may need to be budgeted even lower due to ant icipated Genera l Fund constra ints . The Fam ily First Tra ns it ion Act fund ing used for SPRF was provided by the federal government t o help stat es transit ion t o Fam ily First and he lp pay for fo rmer waiverfunded act ivit ies dur ing t he t ra nsit ion t imeframe. DHS has an in it ial $6 .1 mill ion Federal Funds in hand; a long with t he $4.0 million approved fo r SP RF, the Com mittee added $2 .1 mill ion Federal Funds expend iture limitation fo r ON to start address ing transit ion needs. Also re lated to Family First is a $4 .0 mill ion Genera l Fund special purpose appropriat ion to the Eme rgency Board approved in HB 5026 (2019) to he lp increase capacity fo r in-home and evidence-based services; the Commit tee el im inated that appropriation to hel p balance the statewide budget .

The next la rgest CW investment approved by the Com mittee is an increase of $2.2 million Genera l Fund ($3.2 million total funds) and 19 pos it ions (17 .28 FTE) t ied to recommendations related to Execut ive Order (EO) 19-03, which was issued by t he Governor on Apr il 18, 2019. The EO est abl ished an oversight board t o address t he crisis in Oregon's child welfa re system . A core e lement of the EO was procurement of a crisis management team to implement program-related directives. In late April, a contract w ith Alvarez & Marsal Pub lic Secto r Services (A&M) was signed to ca rry out t his work. Over t he last e ight months of 2019, A&M exam ined severa l areas of the agency and the CW program, ult imate ly providing feedback on needed improvements. Due to General Fund budget const ra ints, t he Comm ittee approved a scaled-down ve rsion of t he request based on the number of currently filled pos it ions fo r a t otal of 19 posit ions (17 .28 FTE). A second swing shift fo r the Oregon Child Abuse Hotline, improving response t imes, will be added with 13 posit ions (13 .00 FTE) and 6 posit ions (4.28 FTE) will shore up CW p rogram leadersh ip, ensu re goal and strategy a lignment, and support tra ining efforts.

The Comm ittee ap proved a rat e inc rease in the behavior rehab ilitat ion services (BRS) program, wh ich offers be havioral intervent ion, counse ling, and skill s-t ra ining services to children and young adu lts in Oregon's child we lfare and juven ile just ice systems. Both DHS and the Oregon Youth Autho rity (OYA) cont ract w ith BRS providers fo r a range of services in various settings . The current rat e setting met hodology is t he result of a comprehensive BRS program review that ,.vas required under a 2014 settlement agreement reached to resolve a lawsu it fi led aga inst the state by BRS providers; rates were last increased (average inc rease of just over 9%) on July 1, 2019 .

During the 2019 legislat ive session it was recognized that BRS rates and fund ing would like ly need to be revisited d uring t he biennium due to SB 171 (2019), w hich requ ires DHS to make progra m changes a lign ing state law and pract ice w ith the federal Family First legislat ion . One requ irement is that residentia l treatment programs used by DHS (o r shared by OHS and OYA) must be accred ited by July 1, 2020 and meet "qua lified residentia l t reatm ent program" (QRTP ) criteria as set out in the federa l law. QRTPs have to meet more serv ice requ ire ments t han cu rrent programs, includ ing offe ring 180 days of afte rcare, using only evidence-based t reatment mode ls, and providing 24-hour access t o nu rs ing services. Wh ile not all of the state's current BRS providers will choose to be acc red it ed, t he agencies' plan is fo r the QRTP requirements to be met by all BRS p roviders to un ifo rmly improve the qua lity of services throughout the residentia l treatment syst em .

The Comm ittee's add it ion of $90,198 General Fund and $1 .8 million Federa l Funds expenditu re limitation supports higher rates t ied to t he QRTP requ irements; the rates took effect July 1, 2020. The full amount of General Fund requ ired to implement the rate increase is $2.6 million,

Budget Narrative


however, the program has ide nt ified $3 .5 mill ion in Gene ral Fund savings to put toward the BRS program needs; $2.5 mill ion is used t o offset part of the BRS rate increase and the re ma ining $1.0 mill ion will used to mit igat e a potential BRS bed closure issue in Douglas County. The approved BRS fund ing package does not include requests to rebase rates on an updated Oregon Wage Index and to bu ild a vacancy facto r into the rate model t hat is based on ha lf t he cost of an occupied bed (us ing the absent day rate) and eq ual to 5% (e ighteen days) annually. These proposed rate components we re not contemplated du ring t he 2019 sess ion .

In recent months, due to COVID-19 pandem ic costs, BRS providers also rece ived a temporary supplementa l payment that is expected to be covered by Coronavirus Relief Fund (CRF) do lla rs in a future budget reconciliat ion act ion . This payment was intended to he lp add ress budget challenges around increased supervis ion of yout h not in school o r losing employment, higher st affing costs to keep an adequate workfo rce on the job, and purchase of cleaning/protective p roducts .

Another CRF expenditure on the horizon would cover just over $900,000 in te mporary flat fee payments made t o CW contractors to retain service capacity while refe rra ls dropped during the early mont hs of the pandemic. The budget app roved by the Committee a lso includes $510,555 General Fund to he lp cover othe r e me rging budget issues driven by COVI 0-19. An increase of $988,823 Fede ral Funds expend iture limit ation was also inc luded to ut ili ze federa l CARES Act fund ing rece ived for Fam ily Vio lence and Prevent ion Services ($440,184) and t o help support ch ild welfare services ($548,639) .

Another budget adjustment approved by t he Comm ittee is an increase of $9.0 m illion in Federa l Funds expenditu re limitatio n to pass federa l dolla rs through to the Publ ic Defense Services Commiss ion (PDSC) . These addit ional fede ral do llars will re imburse payments made by PDSC to fund lega l representat ion of certa in children and/or parents and t ra in ing fo r cont ract providers. Fede ral pol icy was revised to al low states to cla im Tit le IV-E adm inist rat ive costs (at a 50% match rate) for independent lega l representat ion of children and the ir pa rents when (1) the ch ild ren are cand idates fo r Tit le IV-E foste r care, or (2) the ch ildren a re in fos ter ca re and the lega l representat ion assists the subject children and parents to prepare for and pa rt icipate in fost er ca re lega l proceed ings, such as cou rt hearings related t o a child' s re mova l from the home .

The Comm ittee approved the fol lowing reductions, tota ling $2.7 mill ion Gene ra l Fund :

• Elim inate Foste r Pa rent Night Out for the re ma inder of the b iennium ($ 168,780 Genera l Fund) • Use Other Funds end ing ba lance for the domestic violence p rogram ($443,724 Genera l Fund; sh ift to Ot he r Funds so not a true cut)

• Reduce d istrict level t ra ining and travel expend itures ($2 .1 mill ion Genera l Fund)

These are one-t ime reduct ions and shou ld be reevaluated for ongoing or adjusted reduct ions du ring the 2021 legislat ive sess ion.

Vocational Rehab ilitat ion The budget approved by t he Comm ittee for Vocat iona l Rehabilitat ion (VR) reflects a dec rease of $80,625 Other Funds expend iture limit at ion, and an increase of $15 .2 mill ion Federal Funds expenditure limitat ion; no changes are made to General Fund, pos ition counts, o r FTE.

Budget Narrative


The fall 2019 fo recast projects the 2019-21 VR caseload to be about 0.5%, or 51 cl ients, higher t han the spring est imate. More recent program

activit y shows decl in ing leve ls of cl ient participat ion di rect ly attribut able t o the pandemic. Simila r to other DHS programs, VR temporarily

restructu red some program payments t o offset revenue lost by providers due to seeing fewe r cl ients; t his action d id not require any budget

adj ustments . The program1 s Comm ittee-approved reba lance accounts for a recent award of $15.0 million in federal reallotment dollars by

adding $15 .0 m ill ion in Federa l Funds expenditu re limit at ion. The reba lance also includes t echn ica l adj ustment s and t ransfers.

For reduct ions, the Comm ittee approved a fund shift, reducing General Fund by $2.4 mil lion and increasing Federal Funds expend iture l imitation

by $2.4 m ill ion . Depend ing on caseload and workload demands, the program may have some cha llenges in avoid ing act ivat ion of the Order of

Selection (p riority wait list ) and in meeting ma int enance of effort requ irements over t he remainder of the biennium.

Aging and People w ith Disab ilit ies

Committee budget adjustment s for the Aging and People w it h Disabilit ies (APD) program reflect a decrease of $99.6 mill ion Genera l Fund, a

decrease of $2 .0 m ill ion Other Funds expend iture lim itat ion, an increase of $21.8 million Fede ral Funds expenditu re limit at ion, and a net decrease of 24 posit ions (11.13 FTE). The large General Fund decrease is primari ly due to using an add it iona l $87 mil lion Federal Funds projected

to be rece ived th is ca lendar year unde r the temporary 6.2% enhanced FMAP change to offset Genera l Fund. As noted earlie r, a special pu rpose

appropriat ion is also being established to he lp address potent ial r isks around FMAP est imates, costs, and caseload assumptions.

The Janua ry 2020 reba lance adjustments approved in the budget are based on a project ion that overall long term ca re case loads in 2019-21

wou ld be 2% highe r than origina lly ant icipated; th is is driving a rebalance need of $12. 5 m ill ion General Fund ($39 .6 mi ll ion tota l funds). Costs are part ially offset by $5.2 million in reduced General Fund need; during budget development a subset of cl ients were doub le count ed. In

addit ion, wh ile a fu ll OHS budget stat us update based on the fal l 2020 forecast w ill not be ava ilable until late fall, expenditure data from ea rly in

calenda r year 2020 ind icates savings in nursing facility caseloads over the fi rst few mont hs of the yea r; $5 . l million General Fund in savings is

included in the budget to offset a corresponding loss of $5.3 million in nu rsing fac ility assessment (provider t ax) revenue.

Early data indicate t he COV ID-19 pandem ic appears t o be slowing down entries into t he long t erm ca re system as wel l as transfers between care

sett ings. Some cl ient s t hat m ight otherwise be served in a regu lar nu rsing facility or in-home have been cared for in ded icated COVID-19 beds,

under a short term progra m paid fo r w ith CRF dollars. Restrict ions on e lective su rgeries early in the pandem ic have also l ike ly af fected care ut il izat ion . More informat ion on consumer behavior and the pandemic's pot ent ially more last ing effects on the long term care syst em may also

be ava ilable prior t o t he next budget rebalance.

The approved reba lance plan also includes an add it ional $3.4 mill ion Genera l Fund t o reso lve the fede ral funding gap created by an FMAP

adj ustment that took place pr ior t o COVID-19. A new program cost covered in the plan is $55,000 Genera l Fund ($122,400 total f unds) t o

provide 25 vehicles fo r APD staff, primarily driven by new fie ld posit ions approved in the 2019-21 legislat ively adopted budget. Another change is a housekeeping adj ustment (decrease of $641,281 General Fund) to correct t he amount of budget savings tied to the el imination of evidence-

Budget Narrative


based healt h contracts in the 2019-21 adopted budget . Posit ion transfers re lated to systems deve lopment and support work d rive a net increase of one posit ion (1.37 FTE). Ot her technica l adjustments prima rily invo lve the move ment of posit ion-re lat ed costs for rent, state government se rvice charges, and othe r ent erprise costs to SAEC where these charges are booked; th is is sta nda rd post-sess ion clean up.

The APD budget is also affected by co ll ect ive bargaining for non-state workers. The Committee approved $1 .7 million Genera l Fund and $3.2 mill ion Federa l Funds expenditure limitat ion to he lp cover wage inc reases for home ca re workers and support an adjustment t o offset wages fo rgone as these worke rs start to contribute 5% of their sa laries to the Oregon Saves ret ire ment program beginn ing Ju ly 1, 2020. As of that date, a worker's hourly rate fo r standa rd levels of care will be $15 .77 pe r hour. These funds augment an a llocat ion from a $20.0 mill ion General Fund special purpose appropriation created fo r non-st ate employee compensation t hat was made by the Emergency Boa rd on April 23, 2020.

The Comm ittee approved a port ion of the agency' s January 2020 posit ion request t ied to risk mit igat ion, add ing $301,559 General Fund ($567,907 t otal funds) and 7 posit ions (3 .50 FTE). The posit ions will su pport the Provider Time Capture (PTC) project, which is an information techno logy project redesigned after it was init ia ll y started to meet federa l requ irements around e lect ron ic visit ve rification fo r Medica id personal care and in-home services provided by home care workers . The numbe r of PTC posit ions approved is lower than the 13 posit ions (13.00 FTE) requested and are also autho rized later in the biennium . The PTC project has a mandatory January 1, 2021 start date and OHS requested ext ra resources to ensure the program is imp lement ed on t ime and to avoid a potentia l loss of federal funding due to non-compliance ..

Along with enhanced FMAP fund ing, APD has received fede ra l fund ing due to the COVI0-19 pandem ic through both the Fam ilies First Coronavirus Response Act and the CARES Act, primarily add it ions to exist ing Olde r Americans Act (OAA) fu nd ing streams :

• Congregate meals - $1,068,162; • Home de livered meals - $2,136,324;

• Fam ily caregiver support - $1,314,232; • Nut rit ion services - $6,408,972;

• Support ive services - $2,670,405; and • Ombudsman program - $267,041.

For th is last program, DHS requested only $221,000 of Fede ra l Funds expend iture limitat ion as it is pass-through fund ing for the Long Term Care Ombudsman, which plans to reserve a port ion of the do ll ars fo r next biennium. In add it ion, APO rece ived funding in the amount of $750,000 from the Coronavirus Prepa redness and Response Supplementa l Appropriations Act forthe Aging and Disab il ity Resou rce Cent er network to help del iver se rvices during the pandemic. The Committee approved a total of $14.6 mill ion Federal Funds expenditu re lim itat ion t o support spending these add it ional resou rces; state matching fu nds are not requ ired .

Another budget change related to crisis fund ing from the fede ral government swaps $3.4 million Gene ra l Fund for t he same amount of CRF fund ing (a shift fro m Gene ral Fund to Other Funds) . Genera l Fund was allocated to OHS by the Emergency Boa rd at its April 23, 2020 meet ing to

Budget Narrative


help protect cl ient s in long term, care settings by helping providers pay for COVII D-19 proact ive testing and special ized t rain ing for worke rs. The

use of federa l ORF dollars, inst ead of General Fund preserves state funding for other uses or needs not allowable for CRF; these funds are

governed by crit er ia set out under t he CARES Act and federal guidance. The re are other APO init iat ives, such as t he ded icated COVID-19 beds

and t emporary rat e increases or ot he r payments to he lp provide rs deal w ith pandemic chal lenges th at have already been, or are expected to be,

approved for funding from the CHF. These federa l dollars are budgeted as Other Funds as they are passed t hrough to agencies from the

Department of Administ rat ive Services ..

The Comm ittee approved the fol low ing reduct ions, tota ling $20.0 million General Fund ($50.8 mill ion t otal funds):

• Capture projected program savings based on curr ent budget estimates ($12 .0 m ill ion General Fund)

• Curtai l anxiet y and depression programs delivered by Area Agencies on Aging (AAA) and Centers for !Independent Living for the

re mainder of the biennium ($1.4 million Gene ral Fund)

• Reduce design budget by 5% ($1.5 million Genera l Fund)

• Reduce support for Older Americans Act program activit ies over the remainder of the b ienn ium ($1.1 million Genera l Fund)

• Reduce 2019 agency fie ld staff enhancement package by 50% {$2 .. 0 mil lion General Fund/32 positions/16 .00 FTE)

• Reduce 2019 AAA fie ld staf f enhancement package by 50% ($2 .1 mill ion Genera l Fund/approximately 39 posit ions)

These are one-t ime reduct ions; however, they shou ld be reevaluat ed for ongoing or adj usted reductions du ring the 2021 legislat ive session . In particular, whi le the APO and AAA field posit ions w ill have already been bui lt int o the 2021-23 current service level due to t iming, considering

them for permanent reductions may help alleviate potential layoffs elsew here in the agency since the posit ions shou ld be vacant.

Budget Narrative


Inte llectual and Develo pmental Disab ilit ies Budget adjustm ents made by the Com mittee fo r the Intellectual and Developmenta l Disabilit ies (IDD) program reflect a decrease of $76.0 million General Fund and an increase of $121.5 million Fede ral Funds expend iture limit at ion; no changes we re made to posit ions . The la rge Genera l Fund decrease is primarily due t o using an add it iona l $88.0 million Federal Funds, projected t o be received th is calenda r yea r Lmder t he tempora ry 6.2% enhanced FMA P change, t o offset Gene ra l Fund. As noted ea rlier, a special purpose approp riat ion is also being established to he lp address pot ent ial risks around FMAP estimates, costs, and caseload assu mptions .

As a rem inder, rebalance adjustments a re based on a frozen fal l 2019 caseload fo recast fo r program se rvices that was 2 .5% higher than the previous est imat e, which is an increase of 506 cl ients over t he 2019-21 bienn ium . Program caseloads had been t rend ing fa irly fl at , but actuals began t icking upwa rd soon afte r the spring 2019 forecast was fina lized . Growth occurred primarily in the in-home support services caseloads fo r both children and adults . The rebalance-related budget impact is an increase of $15.9 mill ion Genera l Fund ($47.3 mill ion total funds) . Other approved reba lance adjustments include $3 .1 million General Fund to resolve the federa l fund ing gap created by t he lower pre-pandem ic FMA P, along with techn ica l adjustm ents, t ransfers, and post -sess ion clean up actions .

The spring 2020 caseload forecast generally cont inued to t rack with fa ll 2019 dat a, but t hat dat a does not capture any changes due to physica l d ist ancing requirements of the economic effects of a globa l pandem ic. Associated changes in public pol icy, behavior, and economics due to the cu rrent crisis will be accounted fo r in subsequent forecasts . Simila r to other progra ms, IDD has implemented tempora ry rate increases and other actions to help providers, workers, and client s during the pandem ic. Provide rs of day and employment services have been especia ll y hit ha rd by the pandemic as they were shut down to help avoid exposure to COV ID-19. The Comm ittee approved $6 .4 mill ion Genera l Fund ($17 .4 mill ion total funds) to cove r susta inab ility payments fo r t hese provide rs until at least m id-September; the federa l governme nt has a lso agreed to increase its match to 75% for a 3-month pe riod . Some of the costs re lat ed to pandemic-d riven act ions have a lready been, or are expected t o be, approved for fund ing from the CRF. These federa l do lla rs are budgeted as Other Funds as they are passed through to agenc ies from the Department of Ad minist rat ive Services.

The ID D budget is also affected by collective bargaining for non-stat e wo rke rs. The Committee approved $1.1 mill ion Genera l Fund and $2.2 million Federa l Funds expendit ure limitation to he lp cover wage increases for pe rsonal support ca re workers and an adjustment to offset wages fo rgone as these worke rs start to cont ribute 5% of t heir salaries to t he Oregon Saves ret ire ment program beginning Ju ly 1, 2020. As of that date, a worker's hourly rate fo r standa rd leve ls of care will be $15 .77 pe r hour. For adult fos ter homes serving IDD clients, the Comm ittee added $360,773 Genera l Fund and $705,585 Federa l Funds expenditure limitat ion to help pay for a 7.15% rate inc rease effect ive July 1, 2020 . These funds augment an allocation from a $20.0 million General Fund special purpose appropriat ion created for non-state e mployee compensat ion that was made by the Emergency Board on Apr il 23, 2020.

The Comm ittee approved the fo llowing reductions, tota ling $14.9 mill ion Genera l Fund ($8.6 mill ion tota l funds) :

• Use Federal Funds fo r systems operat ions and maintenance ($2.5 mill ion General Fund; sh ift to Federal Funds)

Budget Narrative


• 2 posit ions (1 .26 FTE) to handle responsibilit ies re lated to lit igat ion and support a team dedicated to rece iving and respond ing to an average of 500 publ ic records requests each month;

• 9 posit ions (5 .64 FTE) in hu man resources to cover recru itment workload demands; lead and d irect OHS Workday imple mentation; al ign class ificat ion, compensation, and safety work wit h lega l requirements; address the wel lbeing of e mployees through risk management; and support leadersh ip dec is ion-making re lat ed to t he Americans w ith Disab ilit ies Act; and

• 3 posit ions (2 .63 FTE) to create a team wit hin t he Office of Reporting, Research, Analyt ics, and lrn plementation to focus on ch ild welfa re reports, data, and a dashboard in al ignment with A&M 's work.

Fo r reduct ions, the Comm ittee approved a decrease of $1.2 mill ion General Fund ($1 .9 mill ion tota l funds) to be ach ieved through reduc ing trave l, office supp lies, p rofess ional services, lega l services ut ilizat ion, t raining, hold ing posit ions vacant, and limit ing overtime. These a re onet ime reduct ions; however, they shou ld be reevaluated for ongo ing or adjusted reduct ions du ring the 2021 legislat ive session .

Shared Services The budget approved by t he Comm ittee for Shared Services is a net dec rease of $1 .3 million Other Funds expenditure li m itat ion and a net dec rease of 12 posit ions (6.37 FTE). The most significant reba lance- relat ed adjustment is a reduction of $3 .2 mill ion and 30 posit ions (13.80 FTE) fo r the human resou rces reorgan izat ion approved fo r OHS and OHA. Also included are technical adjust ments, transfers, and posit ion adjustments; the latter act ion re purposes t hree vacant posit ions to address workload in cont racts and publ icat ion services.

Fo r the Office of Training, Invest igat ions, and Safety (OTIS), the Comm ittee approved adjustments re lated to SB 155 (2019). That b ill made OHS responsible for handl ing reports of th ird party ch ild abuse; however, the resources for th is work provided under that measure do not appear t o be adequate for addressing the volu me of reports ant icipated . With approval of SB 1605 (2020 1st Special Session), wh ich provided flex ibility to close at screen ing certa in t ypes of these reports, the program can be imple rnented gradually and provides t ime for t he agency to gain actua l experience w ith t hese new invest igat ions t oward help ing inform policy and resource needs . The Comm ittee approved $1 .6 million Ot her Funds expend itu re limitat ion and 17 posit ions (6.46 FTE) t o scale up work on these invest igat ions; the re is a re lat ed General Fund increase in SAEC.

Fo r reduct ions, General Fund savings associated w ith hold ing Shared Services posit ions vacant and limit ing ot he r expend itures are captured in the shared services fund ing line w ith in the SAEC budget . These a re one-t ime reductions; however, they shou ld be reeva luated for ongoing or adjusted reduct ions during the 2021 legislat ive sess ion.

State Assessments and Enterprise-wide Costs The Comm ittee approved, for State Assessments and Enterprise-wide Costs (SAEC), a net decrease of $832,493 Genera l Fund, an increase of $94,418 Other Funds expend iture li mitat ion, and a net decrease of $11.9 million Federa l Funds expenditu re limitat ion; no changes we re made to posit ions or FTE as these are not budgeted with in th is program unit . Rebalance-re lated act ions account for an increase e mbedded in these nu mbers: an inc rease of $8 .2 mil lion General Fund ($11.8 mill ion total funds) is primarily t ied to agency w ide techn ica l adjustments moving

Budget Narrative


ent erprise costs (state government service charge, facilit ies rent, computer rep lacements, etc.) to SAEC for new posit ions added in the 2019-21 adopted budget; th is is sta ndard post-session budget adjust ment act ivity.

New posit ions approved by t he Committee for OTIS (Shared Services) drive an increase of $1 .8 million Genera l Fund in the shared se rvices fund ing line; there is cu rrent ly no federal fund ing sou rce t hat can be used to he lp fund t hese investigat ive act ivit ies. A dec rease of $1,363,570 General Fund t ied t o debt se rvice savings is a lso account ed fo r in the updated SAEC budget.

The Comm ittee approved t he fo llowing redu ctions, tot a ling $12 .3 rnill ion Genera l Fund ($27 .7 million t otal funds) :

• Lower ut ilizat ion of usage-based DAS data center services ($3.6 mill ion Gene ral Fund) • Reduce funding for compute r life cycle replace ment and repa ir ($2 .2 million General Fund) • Reduce te lecommunications budget ($ 183,533 Genera l Fund)

• Reduct ion t ied to OHS Shared Services lim it ing expenditures and ho lding posit ions vaca nt ($2 .2 million Genera l Fund) • Reduct ion t ied to OHA Shared Services limit ing expenditu res and hold ing posit ions vacant ($2 .6 mill ion General Fund)

These are one-t ime reduct ions and shou ld be reevaluat ed for ongoing or adjusted reduct ions du ring the 2021 legislative sess ion .

Long-Term Ca re Ombudsman

In April, the Long Te rm Care Ombudsman (LTCO) received a federa l award in the amount of $267,041 from the Adm inist rat ion fo r Community Living (ACL) through the CARES Act . These fu nds, which do not requ ire st ate match ing do ll ars, are available for use through September 2021 for act ivit ies in response to COV ID-19. Per ACL gu idance, the money should be used to expand the virtua l presence of Ombudsmen in faci lit ies, as we ll as cont inue to promote the hea lt h, safety, and welfare of res idents . The agency's spending plan includes outreach through a variety of channels (ma il, television, internet), iPads to support face to face virtua l communicat ion, other technology needed to support remote work, personal protect ive equ ipment, and lega l assistance to he lp add ress residents' right s issues. The Committee approved an inc rease of $221,000 Other Funds expend iture limitat ion; t he rema inder of the award is reserved fo r use early in the 2021-23 biennium.

Approved budget reductions include one-t ime actions totaling $440,818 Genera l Fund; these consist most ly of limit ing services and supplies expend itures and capt uring underut ilized unemployment assessment dollars . Decreases in group volunteer t ra in ing and public guardiansh ip contracts are a lso part of the plan: wh ile the latte r change may restrict ca pacity over normal case load levels, it is not expected to have an enduring progra mmatic impact . Staff ing leve ls fo r a ll programs with in the Off ice of the Long Term Care Ombudsman are mainta ined, includ ing three new deputy ombudsman posit ions that were approved in HB 3413 (2019) .

Psych iat ric Security Review Boa rd

Budget Narrative


As part of t he reba lancing of the state budget, the Psychiatric Security Review Boa rd budget includes a General Fund reduction of $100,000. The agency w ill ach ieve th is reduct ion by limit ing spending on services and suppl ies and through vacancy savings.

JUDICIAL BRANCH

Oregon Judicial Department The Comm ittee approved one-t ime General Fund reduct ions t otaling $1 1,100,000 to ba lance the st ate budget. This inc ludes vacancy savings, ope rat ional savings result ing from court e mployee fu rlough days, and COV II D-re lat ed rest rict ions, such as savings from reduced jury t r ials . Also included is a $900,000 Gene ral Fund reduct ion in fund ing fo r law libraries .

Addit iona ll y, Ot he r Funds expendit ure limitat ion of $2,450,000 was app roved to add ress higher t han budget ed expenses related to s upport of the specialty court system, the Public Defense Services Commission, and t he Mu ltnomah Legal Resources Center. This limitat ion increase also covers a CA RES Act grant award of $142,050 that the Jud icia l Department received from the Crimina l Just ice Comm ission to ass ist w ith coronavirus re lated expenses.

A reduct ion of $104.6 mill ion expendit u re Ii mitat i on w as made to t he Oregon Courthouse Ca pita I Const ruction and II m provement Fund related to courthouse projects in Lane and Linn counties. These project s will not have the match ing funds requ ired to be included in a bond sale du ring the current biennium.

Public Defense Servioes Commissi on Other Funds expend iture li mitat ion of $9.0 m illion was approved for the Pub lic Defense Services Comm ission fo r legal rep resentat ion of pa rents and children invo lved in foster care. The adjustment refl ects the ava ilability of Tit le IV-E Federa l Funds as reimbursement for st ate expenses .

The Comm ittee approved a one-t ime increase of $200,000 General Fund for t ra in ing public defense attorneys part icipat ing in the Parent Ch ild Represent at ion (PCRP) program now ope rational in Clatsop, Deschutes, Douglas, Malheur, and Mu ltnomah count ies ..

A sh ift of $4.S million General Fund to $4.S mill ion Ot her Funds was approved, to reflect the ava ilability of fede ral re imbursements fo r state costs in fost er care dependency cases. This amount rolls up to a reduct ion of $9.0 mill ion General Fund in 2021-23.

One-t ime General Fund reductions t otaling $1,896,812 reflect adm inist rat ive savings taken to balance the state budget .

LEG ISLATIVE BRANCH

Budget Narrative


Legislat ive Adm inist rat ion Committee

An Other Funds expenditure limitat ion increase of $600,000 for t he Legis lat ive Adm inistration Committee is included for furthe r work re lated to the Oregon Capito l History Gateway. Th is work is fo r the Welcome Center Space Design, Exhibit Design, Fabrication and Installat ion Project, and will serve as part of the visitor expe rience . Design concept e le ments include a n inte ractive map of Oregon that provides use rs with informat ion on where they can go to learn mo re about Oregon's h istory, an interact ive station where visitors can plan the ir Capitol visit and find out more about events, and an interactive wal l focus ing on places vis ito rs can go to learn about cult ural groups and Oregon1s t ribes .

Funding is included in t he amount of $266,778 General Fund fo r debt service costs, $1,350,000 Genera l Fund fo r non-bondable project costs, and $910,000 Othe r Funds for t he cost of issu ing $68,050,000 in Article XI-Q bonds to fi nance further capital improve ments to the State Capitol Build ing, includ ing seismic upgrades t o the House and Senate wings, Legislat ive Counse l and Legislat ive Fiscal Office renovations, se ism ic and ot her upgrades t o the parking ga rage connecto rs, accessibility improve ments to the South entra nce, resto ra t ion of t he Capit o l grounds, and other improve ments and upgrades to the bu ild ing.

A one-time reduction of $3 .1 m ill ion General Fund from t he Legis lat ive Administrat ion Comm it tee is included. The reduction is from savings from ca rryforwa rd funds and is not anticipated to affect progra m, service, or staffing levels.

NATU RAL RESOURCES

Department of Agriculture The Comm ittee approved an increase of $1,139,000 Othe r Funds expenditure limit at ion and authorized the establ ishment of two permanent, fu ll-t ime posit ions (0.84 FTE) to address increas ing workload in the Department's He mp Prog ram . The rapid growth of the program, especia lly after passage of the 2018 Federal Farm Bill that reclassified industria l hemp as a legal comme rcial product, has increased t he ,.vorkload beyond the Department' s interna l capacity. The two new posit ions will be used primarily for inspect ion and enforcement work around regist rat ion co mpliance, sampling and test ing require ments, and technica l assistance to growe rs and handlers .

A one-t ime reduction of $2,522,474 Gene ra l Fund refl ects vacancy savings, fund shifts, and ot he r administrat ive reductions across d iffe rent program areas. In the Adm inistrat ion and Support Services Program, the Genera l Fund reduction tota ls $399,445 and includes vacancy savings and one-time fund shifts to Other Funds tot a li ng $299,445 . As part of the fund shift to Other Funds, $100,000 is being moved across program areas from Ad minist ration t o Natura l Resou rces t o provide addit iona l resou rces t o the Hemp Program . The Genera l Fund reduct ion to t he Food Safety Po li cy Area totals $866,785 and includes the e liminat ion of one-t ime fund ing that was provided in 2019 for laboratory equipment replace ment ($600,000) and inc reased predator control funding ($200,000), a long with fund sh ifts to the she ll fish program and an ima l hea lth program . Addit iona lly, there are reduct ions to the fund ing that was provided in HB 2574 (2019) re lat ed to she llfish mariculture outreach and educat ion ($163,049) and fund ing provided in SB 883 (2019) fo r the regulat ion of an ima l shelters ($166,414) . The an imal she lte r program is ant icipated to be funded through registration fee revenue beginn ing in the 2021-23 bienn ium .

Budget Narrative


The Department's Nat ural Resources Policy Area has $622.,570 in General Fund reduct ions, including vacancy savings in t he Natural Resources

Program {$83,849) and the Confined An ima l Feeding Operations program ($116,897) and fund sh if ts to Ot her Funds for the Insect Pest

Prevention and Management program ($92.,234) and a fund sh ift to Federal Funds for the Noxious Weed Control Program ($50,000). There is

also a reduction t o the Gener al Fund provided in HB 2437 (2019) related t o remova l-f ill of $21,339 to reflect vacancy savings. Finally, the one

t ime Genera l Fund for t he Oregon Invasive Species Counci l that was p rovided in 2.019 has been e liminat ed ,($280,000) .

The Market Access Pol icy Area has reductions of $2.82,872. General Fund, wh ich includes vacancy savings, reduct ions t o trade missions, and a

sma ll fund shift to Other Funds in t he Cert if icat ions program .. Addit ionally, the fund ing for Fa rm-to-School producer infrastructure grants that

had been provided through the Department of Educat ion in HB 2579 (2019) has been reduced from $500,000 t o $250,000, and the

admin istrative costs of $50,000 associated w it h the program have been sh ifted from Genera l Fund t o Other Funds ..

Department of Energy The Comm ittee approved an increase of $41,992 Other Funds expend iture lim itat ion to correct a Posit ion !Informat ion Control System {PICS)

programming error for the t wo Northwest Power and Conservat ion Council pos it ions located in the Department of Energy's budget..

Addit ionall y, the Committee approved an increase of $1,075,2.58 Federa l Funds expendit u re lim it at ion to use grant funds from the U.S.

Department of Defense related to the sit ing of potent ial renewable energy development projects .. These funds w ill be used to produce a

Renewab le Energy Sit ing Assessment Report and Mapp ing Tool t hat w il l inform energy developers, util it ies, local governments, and milit ary ent it ies w it h the goa l of m itigat ing confl icts between potent ial renewable energy development and the needs of mil itary assets in t raining.

The Comm ittee approved a one-t ime reduct ion of $60,000 General Fund from t he administ rat ive cost s re lat ed to the Rooftop Solar !Incentive

program created in HB 2618 (2019) .. Addit iona ll y, t he Department is expect ed to sh ift $60,000 of anticipated rebat es from the "non-income

qualified" category t o the " lov11- and moderate-income qual ified" category. Or-iginal ly the p rogram had ant icipated having $750,000 available for

both cat egories; however, w it h th is sh ift, the " non-income qualified" category w ill be reduced t o $690,000 and t he "low- and rnoderat e-income

qualif ied" category will be increased to $810,000.

Budget Narrative


Department of Environ menta l Quality

A one-t ime reduction of $4,315,384 General Fund reflects vacancy savings, fund shifts, and ot her admin ist ra t ive reductions across t he

Department. For the Air Qual ity Divis ion, the one-t ime General Fund reduction tot als $2,090,834 and includes vaca ncy savings from t he Air

Conta minate Discharge Permit program ($319,840}, Air Qual it y program laboratory posit ions ($477,340), the Clean Diesel program ($34,656),

and the Cleaner Air Oregon program ($444,638). The Clea ner Air Oregon program also has a one-t ime fund sh ift of $100,000 from General Fund

to Ot he r Funds . Addit iona lly, there is a $714,360 reduct ion t o services and su pp lies costs across the Air Qual ity programs, includ ing a $483,113 reduction from the General Fund provided by the March 2020 Emergency Board fo r efforts to reduce greenhouse gas em iss ions.

In the Wate r Qua lit y Division, the t ota l one-t ime Genera l Fund reduction is $1,972,987 and includes vacancy savings from the laboratory

($60,630) and across mu lt iple wate r quality programs ($1,320,194}, as we ll as services and supplies reductions of $424,078. Add it ionally, there is

a one-t ime fund shift of $168,085 from Genera l Fund t o Other Funds for exist ing posi t ions t o adj ust work wit h in t he program . For the Land

Qual ity division, the one-t ime General Fund reduction includes $111,872 to services and suppl ies and a f und sh ift of $56,204 to Ot he r Funds for

a Regional Solut ions posit ion . Finally, the Agency Management Division has an $83,487 Genera l Fund reduct ion as a resu lt of vacancy savings

from t he Interna l Auditor posit ion provided in t he 2019 budget.

Department of Fish and W ildlife

To correct an amou nt t hat was added in error to the Department' s Major Construction and Acquisit ion budget in SB 5510 (2019}, t he Committee

approved a decrease of $257,448 Other Funds expenditu re lim itat ion . The Department had requested posit ion authority re lated to $10.0 mi ll ion

in capita l const ruct ion expendit ure limitat ion from Article XI-Q bonds approved in 2017, to be used for deferred maintenance needs at their var ious facil it ies. Wh ile the posit ion authorit y was provided in SB 5510, t he limit ation was not necessary since capital construct ion projects

receive six-year limitat ion.

A one-t ime reduction of $3,870,063 General Fund reflects vacancy savings, f und shifts, and other admin istrat ive reductions across t he Department. In the Fish Division, t he Genera l Fund reduct ion tota ls $1,569,626 and includes vaca ncy savings across mult iple programs and a

reduction in FTE from 0.75 to 0.50 of an adm inistrat ive support posit ion in the screens and passage program. The reduct ions in the Fish Division

also include one-t ime fund sh ifts t o Other Funds tota ling $35,721 and Fede ral Funds t otaling $213,744. Further, $160,000 General Fund and the

limit ed duration posit ion (1.00 FTE) that was provided in HB 2574 (2019) for shellf ish maricult ure w or k has been el iminated . Finally, there is a reduction of $150,669 from the Department's Emergency Hatchery Maintenance Fund ing.

For the Wild life Division, the t ota l General Fund reduction is $577,021 and includes vacancy savings and a f und sh ift of t hree posit ions in t he

Wolf Program t o Federal Funds, t otaling $204,350. Addit ional reduct ions include el imination of one-t ime Genera l Fund for addit ional predat or

control f und ing that was provided in the 2019 budget ($200,000) and $17,207 in accrued vacancy savings from fund ing provided in HB 2437 (2019) related to removal -fill .

Budget Narrative


Finally, one-time Genera l Fund reduct ions are taken from mon ies provided to the Department in 2019 for an ant i-poach ing ca mpa ign . Th is

includes $276,094 from accrued vacancy savings and also reduces services and supplies cost s re lat ed to add it ional Oregon State Po lice w ildlife

enforcement . Al l five of t he w i ldl ife enforce ment posit ions provided in 2019 as part of t his package are ret ained and are current ly fi lled.

Addit iona lly, $1,296,653 from the ant i-poaching ca mpaign t hat w as ant icipat ed to be used for a broad med ia outreach campa ign and to fund

Department of Just ice assistance to local Dist rict Attorney's w ith poaching prosecu t ions has been elim inated . The Public Affa i rs posit ion w it hin

t he program is ret ained .

Department of Forestry

A one-t ime increase of $10,383,896 General Fund in the Department of Fo restry (ODF), Fire Prot ection Division w as approved for t he payment

of emergency fi refighting costs associat ed w it h the 2019 forest fire season ($9,629,300 ) and interest expense ($754,596).

The Comm ittee approved a one-t ime increase of $700,000 Gene ral Fund for t he Department to reimburse t he Department of Adm inist rat ive

Services fo r t he cost of contracted consu lt ing services. Th e consultant was h ired t o review operat ional issues related to the processing and collection of accounts receivable at ODF, to assist t he agency in it s processing and co llect ion of account s receivables, and t o make

recommendations fo r changes to t he agency and it s processes t o ensu re the agency can adequately and eff icient ly account fo r and collect

receivables and provide accurate cash-fl ow est imat es.

Mu lt iple General Fund red uct ions w ere approved in several d ivisions of the Department . Due t o stat utory requ irements that lim it t he amount of

fund ing from Other Fund sou rces such as landowner per-acre assessments and harvest t ax proceeds to a percent age of Gene ral Fund expend itures, a reduct ion in Genera l Fund in t he operating div isions often result s in a requ ired, correspond ing reduct ion in Other Funds. In some

cases, t he use of t he General Fund is outside of t he st andard fu nding rat io and therefore does not have a co rrespond ing Ot he r Funds reduct ion .

Agency Ad ministrat ion General Fund reduct ions tot al $358,925 for the Federa l Forest Hea lth program . There is not a requ ired Other Funds

reduction in t his program. Th is amou nt reflects vacancy savings from the delay in hiring a program lead posit ion and a reduction of seasonal

w orkers (0.75 FTE), reductions in federal cost -share cont ract payment s, reduced indirect tech nica l ass istance, reduced grant funding, and

savings in admin ist rat ive costs.

The Agency Adrn inist rat ion Division is predom inate ly funded t hrough a pro-rat a charge to the ot her operat ing divisions. Those reven ues are

spent as Other Funds by the Agency Ad min ist rat ion Division rega rd less of t he or iginal source of funds. General Fund red uct ions to Agency

Ad min istrat ion cost allocations in t he Fire Prot ect ion and Pr ivat e Forest s Divisions result in a $1,294,103 Other Funds reduct ion in t he Agency

Ad min istrat ion Division, including t he Equiprnent Pool progra m. This reduction is shown through an increase in vacancy savings in the Division.

Approved budget reductions for the Fire Prot ect ion Division tota l $2,840,363 General Fund and $2,919,721 Ot her Funds. Specifi c reduct ions are:

Budget Narrative


• A $1,122,250 decrease in General Fund support fo r Agency Ad minist rat ion costs allocated to t he Fire Protect ion d ivision . There is no

private landowner f unding support for Agency Adm in istrat ion cost s and, t herefore, no reduct ion in Ot he r Funds co rrespond ing t o th is

reduct ion . Th is item does not directly impact t he Fire Prot ect ion Division, but , as not ed above, results in increased vacancy savings in t he

Agency Adm inistrat ion Division.

• A shift of $175,000 General Fund and $100,000 Ot he r Funds t o Federal Funds because addit iona l fede ral grant fund ing capacity has been

ident ified .

• Increased vacancy savings of $192,422 General Fund and $316,534 Other Funds (1 .08 FTE).

• Temporary posit ion reductions and other persona l se rvices adj ust ments of $88,937 General Fund and $201,385 Ot he r funds (0.50 FTE).

• Tempo rary delays in equipment purchases, equipment ma int enance, and fac ility improvement s, $699,420 General Fund and $1,262,626

Ot her Funds.

• Contracted se rv ices and ot her services and supplies expend iture reductions of $562,334 General Fund and $973,698 Other Funds .

An increase in Other Funds expend iture l imitation of $1,948,173 was approved for t he processing of payments related to the 2020 f ire season .

Approved reductions fo r the Pr ivat e Forests d iv ision total $1,385,040 General Fund, $672,474 Ot her Funds, and $57,844 Federal Funds. Specific

reductions are :

• Vacancy savings and te mporary posit ion reduct ions tota ling $268,187 Genera l Fund, $122,474 Other Funds, and $57,844 Federal Funds

(2.10 FTE).

• Reduct ion in base budget expend itures for Sudden Oak Death treatments of $70,000 General Fund.

• General expend iture reduct ions in program serv ices and suppl ies of $375,000 Gene ral Fund and $350,000 Othe r Funds .

• A $671,853 decrease in General Fund support for Agency Admin istration Division costs allocat ed to t he Private Fo rests Division. Th is

reduction includes the elimination of $500,000 Gene ral Fund that was erroneously budgeted in the progra m. The rema ining $171,853

reduct ion is shown in the Agency Admin istrat ion Division as vacancy savings.

The Comm ittee approved a $195,000 General Fund reduction t o an appropr iat ion made t o the St ate Forests Division for t he pu rchase of an

approximate ly 160-acre t imber tract adjacent to the W illamette Nationa l Forest Opal Creek Scen ic Recreat ion Area and Sant iam State Forest , for

addit ion t o the Sant iam Stat e Forest. It is unlikely that the purchase of the subject property w ill be completed th is b ienn ium and the reduct ion

effect ively e liminates the f unding allocat ed fo r th is purpose.

Budget Narrative


Department of Land Conservation and Development The Comm ittee approved a $289,301 General Fund reduct ion in local plann ing grant fund ing. Addit ional reduct ions t o t he agency's Planning

Program t otal ing $965,643 General Fund were approved, and include :

• $170,379 in increased vacancy savings resu lt ing in a reduct ion of 1.04 FTE

• $531,055 in staffing reductions t hat el im inate a l im ited-du rat ion legislat ive coordinator posit ion, reduce a dat abase administrator posit ion and a natural resource specialist t o half-t ime, and elim inate a dedicated M easure 49 specialist and a commun icat ions special ist

posit ion (3 posit ions, 2.34 FTE)

• $214,209 in reduct ions to services and supplies

Two bil ls were passed du ring the 2019 legislative session deal ing w ith local housing needs. HB 2001 dealt w ith planning for, and the allowance

to, develop " middle" housing on lands zoned for single fa mily res ident ial housing. HB 2003 add ressed regional housing needs . Both of the bi lls

provided fund ing fo r technical assistance grants t o loca l plann ing units and also provided operational fund ing to the Department. A reduct ion of $115,000 General Fund fo r the local t echnica l grant fund ing provided in HB 2003 was approved . An add it ional $1,115,000 Gene ral Fund

reduction was approved t hat removed the uncommitted, excess fund ing for local t echn ical grants provided by HB 2001 . Also eliminated was

uncommitted ope rat iona l funding fo r the implementat ion of both bills t otaling $396,368 Genera l Fund . This amount included a reduct ion in

budget ed staff su pport of 0.16 FTE.

The comm ittee approved a reduct ion of $17,000 Gene ral Fund in uncommitted fund ing for implementat ion of the provisions of HB 2574 (2019) dea ling w it h she ll fish maricultu re in Oregon .

A reduct ion in t he budget ary p laceholderfunding for reimbu rsement s due t o Ballot Measure 56 not ices to landowne r by cit ies o r counties of

$50,000 was approved by t he Committee. These funds are t yp ically included in t he agency's budget as an acknowledgement of possible costs of

notificat ion reimbursements even if no costs are ant icipat ed . The remova l of these funds may requ ire t he agency to request fund ing from the

E mer gen cy Board should a change in lavv or pro perty use requ ire notices t o be distributed .

Land Use Board of Appeals An increase of $59,980 in the Genera l Fund app ropriat ion to the Land Use Boa rd of Appeals was approved to allow the agency to migrat e

cont racted administrat ive funct ions from t he ir cu rrent se rvice provider, the Department of St ate Lands, t o the shared cl ient services program at

the Department of Administrat ive Services.

Department of Parks and Recreation

Budget Narrative


A Fede ra l Funds expenditu re limitat ion increase of $665,000 fo r the Department of Parks and Recreation was approved by the Com mittee to allow the agency to spend fede ral grant funds rece ived from the Nat iona l Parks Service. The funds will be used to provide sub-grants to el igib le ent it ies fo r the rehab ilitat ion of h istor ic theaters t hat are p rimarily in ru ra l com munit ies .

In add it ion to technical adjustments discussed e lsewhere in t his report, a techn ica l adjustment was included for t he Department to move expend iture limitat ion for Attorney Gene ra l costs between budgetary programs wit h a net zero impact on t he agency's overal l budget .

Department of State Lands

A techn ical adjustment was approved to provide $86,953 of Othe r Funds expenditure limitation from the Submerged Lands Enhancement Fund. The expend iture limitation from the fund allows the Departm ent to spend remain ing gran t funds . Grant funds a re requ ired to be used on projects t hat enhance state-owned submerged and submersible lands, includ ing remova l and d isposal of abandoned or derel ict structures, marine debris, and vessels; o r act ivit ies to improve water qual ity, wate rshed enhancement, and fish and wildlife hab itat. A corresponding reduction in the Othe r Funds expenditu re limitation from t he Common Schoo l Fund resu lts in a net zero change to the agency's overall Other Funds expendit ure limit ation.

The Comm ittee approved an increase in Federa l Funds expenditure limitation of $478,286 for the Department t o spend fede ral grant awards from t he U.S. Environmental Protect ion Agency. Grant fund ing supports ongoing wetlands program deve lopment, fund ing for multipurpose state assistance, and prelim inary program development fo r the eventua l assu mpt ion of pe rmitting aut hority under sect ion 404 of the Fede ra l Clean Water Act.

An Other Funds expenditure limitat ion increase of $186,592 and t he establ ishment of a permanent, ful l-t ime nat ura l resource specia list pos it ion (0 .63 FTE) was approved for the Department to provide fo r enforcement activit ies related to abandoned and derelict vessels and ca mping on state owned lands and waterways .

An addit ional increase in Other Funds expend iture limitat ion of $58,992 and the el iminat ion of an Execut ive Support Specialist pos it ion (1.00 FTE ) was approved for the Department to reclassify nine pos it ions, incl ud ing the upward reclass if ication of seven ma nagerial pos it ions .

Technical adjustments t hat were approved by the Comm ittee include a correct ion in t he pos it ion t it le for a pos it ion that was author ized for the South Slough Nat ional Estuarine Research Reserve {SSN ER R). The corrected pos it ion t itle is changed to a Tra ining and Development Specia list 1 from a Natural Resource Specia list 1. The re is no change to the amount budgeted for t he posit ion .

An increase in Federal Funds expend iture limitation of $210,000 was approved fo r Nat iona l Oceanic and Atmospheric Ad minist rat ion grants awarded for land acqu is it ion and tra il improvements at the South Slough Nat iona l Estuar ian Resea rch Rese rve. The fund ing w ill be used to pu rchase a p roperty adjacent to the rese rve and to replace tra il system fac ilit ies.

Budget Narrative


W ater Resouroes Department

An increase in the Federa l Funds expendit ure limit at ion for the Water Resou rces Department of $260,484, and t he author izat ion to establish a limit ed-durat ion posit ion (0..88 FTE) was approved by the Comm ittee to a llow the expendit ure of a grant award from t he Federa l Emergency Management Agency. The Department intends t o use the federa l fund ing, in combinat ion w ith state mat ching funds of $140,261, for five specific tasks: a written summary of the stat us of high-hazard potentia l dams in Oregon; the completion of the comprehensive risk-of-fa ilure assessment protocol; the appl icat ion of the risk-of-fa ilure prot ocol to t he s ixteen ident ified high-hazard potent ia l dams in Oregon; the comp letion of fo rma l loss est imat es; and, the deve lopment of fl oodp lain management plans for commun it ies in dam breach inu ndat ion areas.

The Comm ittee approved $125,000 General Fund for the Department to migrate informat ion technology hardware and services t o the state data cent er. The agency's current network and server resources are beyond their usefu l life and have result ed in service interrupt ions. The fund ing wi ll support moving networking equipment, netwo rk operat ions, and dat abase host ing. Add it ional wo rk will be complet ed in the upcoming biennium as the project cont inues t hrough the planned phases of the trans it ion .

General Fund reduct ions of $2,307,924 in mult iple agency d ivisions we re approved to help ba lance the st ate General Fund budget. Accrued and anticipated vacancy savings include:

• $419,529 in t he Director's Office, from delay in fill ing a posit ion associat ed with a second groundwater basin study team, and a de lay in h iring t he rema ining fou r posit ions in t he Techn ical Services Divis ion

• $723,251 in t he Fie ld Services Division

• $333,305 in t he Water Rights Servicing Divis ion and

• $831,839 in t he Techn ica l Services Divis ion, includ ing a delay in h iring four posit ions associated with a second groundwate r basin study t eam . Although the hiring of the posit ions is de layed, add it ional fund ing that was provided to the agency t h is b iennium included federal cost -share funds and fund ing for add it ional mon itoring and test wel ls . This fund ing combined with exist ing agency resources allows the agency to move forward w ith expanding basin st udies in spit e of t he hiring delay.

In addit ion t o the de lay in hiring the groundwate r posit ions, t he associated posit ion-re lated services and supp lies was reduced by $121,262 General Fund in the Techn ical Services Divis ion .

Two grant programs in the Administrative Services Division had reductions app roved by the committee. Feasibil ity st udy grants we re reduced by $422,467 General Fund, el im inat ing the remaining General Fund fo r the bienn ium. The reduction leaves approximately $2 .2 mill ion in lottery bond proceeds ava ilable for feas ibility study g rant appl icants. A small reduction of $49,684 Genera l Fund t o the place-based plann ing grant program leaves $500,000 Gene ra l Fund ava ilable fo r the grantees to f inish their plann ing work and fo r the agency t o complet e a planning assessment.

Budget Narrative


Reductions in unobl igat ed fund ing for observat ion wells ($50,000 General Fund) and gaging stat ions ($27, 186 General Fund) was approved for the Technica l Services Divis ion. The committee a lso approved a decrease of $106,914 Gene ral Fund in the Field Services Division for st ate costshare subsidy of water measurement devices installed by wate r users .

A sh ift of fund ing from General Fund t o Other Funds in t he Field Services Divis ion reduces General Fund expenditures by $55 2,262 and a llows for the expenditure of Other Funds ba lances fro m fee revenues in a corresponding amount .

PUBLIIC SAFETY


General Fund reductions t ota ling $6.4 million we re approved to help balance t he stat ewide budget. A one-time General Fund appropriat ion to upgrade t he user interface for the agency's Co rrections Informat ion System \i'11as reduced by $140,250. One-t ime General Fund reductions in t he Centra l Administ rat ion and Ad minist rat ive Services programs include a $412, 148 reduction t o the Office of Government Efficiencies, a f ive percent reduct ion to Cent ra l Administrat ion of $1.9 million, and a 5% reduct ion t o the Administrat ive (Central) Services Divis ion of $3.9 million .

BUDGET NOTE: Oregon's decl ining p rison populat ion requ ires an assessment of the state's prison footp rint . The Department of Corrections (DOC) is d irected t o assess the state's pr ison system and report its f indings t o the Legislature . This assessment is to include physica l plant condit ions, includ ing majo r repa irs p lanned, the volume and est imated cost of deferred ma int enance, and ope rat ing costs fo r ut ilit ies; operating cond it ions, including st aff recru it ment and retention conside rat ions, the avai lability of health ca re services for adults in custody, and transportat ion and logist ics costs; programm ing provided at each faci lity; and any other factors the agency deems re levant to p rison capacity, costs, and efficient operations.

Based on t h is assessment, on relevant prison popu lat ion facto rs, and incorporat ing best practices fo r corrections outcomes, the agency sha ll include in it s report recommendations to t he Legislat ure for re-shaping Oregon's prison footpr int. The report shall include recommendat ions fo r pr ison closures, includ ing the o rder in which inst itutions shou ld close and the t imefra mes and resources necessary fo r closure . DOC sha ll report to the Legislature w ith its assessment and recom mendat ions no later than January 1, 2021 .

The Comm ittee inc reased the agency's Ot her Funds expend it ure limitat ion by $338,045 for expenditure of a Coronavirus Emergency Supplementa l Funding g rant from t he Crimina l Justice Commission . The funds w ill be passed through to counties t o supplement hous ing resources fo r probatione rs and indigent adu lts in cust ody re leasing to supervis ion in instances where t rans it iona l hous ing beds are severe ly limit ed due to COVID-19.

Budget Narrative


Due t o the COVID-19 pandemic, the Oregon Hea lt h Authority and local Publ ic Health Agencies informed the Department of Correct ions that

adult s in custody releas ing from COVID-impacted p r'i sons cannot use public transportat ion at release. Coronavirus Relief Funds received by t he

Department of Ad m inist rat ive Services w ere approved to be passed through t o the Department to provide requ ired transportat ion to adu lts

releasing from prison . Other Funds expenditure limit at ion v11as increased by $315,000 for use on such transportat ion expenses before the end of

December 2020.

The Department ident ified a projected budget shortfall early in the 2019-2.1 b ienn ium result ing p rima rily from rap id ly rising health ca re costs in

the st ate's p risons. Contributing to t he proj ected budget overruns are t he cost of pharmaceut icals, including treatment s for Hepatit is C and for

med ically assisted treatment for addict ions; the cost of off-site care;. and ancillary costs for laboratory tests and for specialty care. To address

th is shortfa ll, t he agency has undertaken administrative actions t o reduce it s expenses, including implementing a h iring freeze {excluding

secu rity and hea lth care posit ions), de laying equipment l ifecycle rep lacements, and laying off both management and represent ed posit ions. To

address t he port ion of the shortfall not decreased by the above actions, t he Committee a pp roved $2.9..5 mill ion General Fund on a one-t ime

bas is.

Crimina l Justice Com mission

The Cr iminal Just ice Comm ission was awarded supplementa l Edward G. Byrne Memorial Just ice Assist ance Grant fund ing t h rough the CARES Act

in May .. The Comm ittee approved add it ional Federa l Funds expenditu re lim it ation of $6,811,383 t o a llm.v the Comn1iss ion to a1uva rd Coronavirus

Emergency Supplemental Fund ing (CESF) t hrough an expedit ed grant p rocess to seventeen count ies, seven cit ies, and five state agenc ies. Details

of the st ate agency aw ards are found in ot her sections of t h is report.

A one-time reduction of $668,000 Genera l Fund from the Crimina l Just ice Commission reflects vacancy and ot he r admin istrat ive savings ..

District Attorneys and their Deputies

The Comm ittee approved a $500,000 General Fund appropriat ion for grand jury reco rdation to t he state agency Dist r ict Attorneys and Their

De1Juties .. The follow ing tab le summar izes how t hese funds are to be budget ed and spent.

Budget Narrative


E.xpense Catec:ory Service Provider Service Ac:reement General Fund

Statewide transcript ion service fo r district Private vendor( s)

Department of Justice to procure and administer $310,000

attorney offices statewide contract(s)

Storage and arch iving of gran d jury Depa rtment of Department of Justice to provide segregated hosting, $125,000

recordings Justice security, backup, ma intenance, and customer support Technica l ass istance support, if contract

fod icial Jud icia l Department to bil l the District Attorney and

vendor su pport is unavailable, on grand jury Department

Their Deput ies on a quarterly basis and for a flat $50,000 recording equipment hourly rat e for each t echnica l support service ca ll

An nual training on grand jury recording Judicial Jud icia l Department to bill the District Attorney and Their Deputies on a f isca I year basis for annual $15,000

equipment Department tra ining(s) on the recording equipment

Total $500,000

The Oregon Dist r ict Attorneys Associat ion (ODAA) and the Jud icial Department (OJD) are expected t o enter into a memorandu m of agreement

fo r OJD t o p rovide techn ical assist ance related to grand j ury record ing eq uipment t o local distr ict atto r ney offices and counties, and fo r OJD to

provide ann ual record ing equ ipment t raining fo r local d istr ict attorney offices and county personnel.

Oregon Depa,rtment •of .llustice

The Com m ittee approved $435,000 Other Funds expend iture lim itat ion, on a one-t ime basis, fo r payment of the statewide transcript ion service and t he sto rage and arch iving of grand jury recordings ..

In the Appellate Division, t he Com mittee approved a $28,590 General Fund reduct io n fo r out side rev iew of d raft ba llo t t iles, legislat ive referra ls,

and cit izen init iat ives voter sum m ar ies. A lso approved w as a reduct ion of $328,554 Other Funds expend it ure lim it at ion fo r tw o vaca nt

permanent f ull- t ime Assist ant Attorney General posit ions (0 .83 FTE) associated wit h a General Fund red uct ion fo r t he Defense of Criminal

Convict ions.

The Com m ittee approved a non-budgeta ry act ion associat ed w ith H B 4304 t o sh if t t he source of fu nd ing for the Civ il Enforcement Division's

Env ironmenta l Cr imes and Cult ura l Resources Un it (ECRU ) from t he Prot ect ion and Educat ion Account (Other Funds) t o t he DOJ hour ly bill ing

model (Ot her Funds).

One-time budget ary savings w ere achieved by a reduct ion of $263,135 General Fund from p rosecutorial support serv ices and a one-t ime

General Fund reduction of $196,619 in o rganized crime invest igat ive assistance . Reduct ions in both programs reflect vacancy sav ings.

Budget Narrative


The Comm ittee approved a one-t ime $52,106 General Fund reduct ion fo r pass-through fund ing for lega l rep resentat ion for v ict ims of cr ime. The

rema inde r of the $1,042,081 appropriat ion has already been d istr ibuted.

The Comm ittee approved a one-t ime increase of $20,981,016 Federal Funds expend it ure lim itat ion for Vict ims of Crime Act (VOCA) grants,

which f und services for vict ims of domest ic vio lence and sexual assau lt programs. VOCA funds are both competit ively and non-compet it ively

granted to nonprofit and prosecutor-based vict im service providers and chi ld abuse int ervention cente rs. Th is fo rmula grant does not require

the Department to provide matching funds; however, the grant does requ ire sub-grantees to provide 20 percent match ing funds .. Local matching

funds are part ial ly pa id by stat e Genera l Fund and a Crim inal Fines Account allocation passed-through by DOJ to local providers ..

The Comm ittee also approved an increase of $1,586,684 Federal Funds expendit ure lim itat ion for a number of previously approved federa l

grants, including Sexual Assault Vict ims' Emergency Med ical Response, V iolence Against Women Act, John R. Just ice - St udent Loan Repayment,

Human Trafficking, and the Children's Justice Act.

The Comm ittee approved an increase of $894,566 Other Funds expend iture l im itat ion fo r the establishment of fou r permanent full -t ime posit ions (3 .. 50 FTE), and a reduct ion of $894,566 Other Fund expenditu re limit ation in special payments for the Crime Victim Survivor Serv ices

Division (CVSSD). The a pp roved amount provides for retroactive approva I and posirt ion authority for t he Appellate Advocacy and Hu man

Trafficking Intervention programs since t he ir administrat ive incept ion . Neit her program has been authorized by stat ute or approved formally

through the budget process. This act ion authorizes one Program Analyst 1 {1 .00 FTE) and one Administ rat ive Special ist 2 (0..50 FTE) to work ,.vith

vict ims whose cases move into t he post-conviction phase of a crim ina l proceed ing or who are part of the j urisd ict ion of the Psychiatric Securit y

Review Board, and authorizes one Program Analyst 3 (L OO FTE) and one Operations and Pol icy Analyst 3 (1 .. 00 FTE) to t rain law enforcement, prosecutors, and victim advocat es on hov, to ident if y and develop int erventions for traffick ing v ict ims. The Other Funds revenue t o support

these pos it ions comes from one-t ime pun it ive damage awards and Federa l as Ot he r Funds from a V ictims of Crime Act subrecip ient grant.

CVSSD was ab le t o identify offsett ing savings fo r DOJ t o self -fund th is request, so this reduction can be taken w ithout any adverse impact to

ongo ing crime vict im assistance programs at t he stat e or local level.. Add it iona lly, t he Committee recommended that DOJ seek to est abl ish

stat utory autho rity for the Appellat e Advocacy and Human Trafficking Intervention programs during t he legislat ive session in 2021, as th is may

become important as the Legislature det ermines t he 2021-23 CVSSD budget.

The Comm ittee approved a one-t ime increase of $450,188 Federal Funds expend iture lim itat ion and the est abl ishment of two lim ited du ration posit ions (0.84 FTE) for a federal grant from the U.S . Department of Justice, Office for Victims of Crime, for Improving Outcomes for Child and

Youth Vict ims of Human Traffick ing. This grant was approved, ret roactively, for submission by the Joint Interim Committee on Ways and Means

in September 2019. The match ing funds requ irement of 25% for t h is compet it ive grant w i ll be met by the punit ive damage award fund ing t hat

cu rrent ly funds the Human Trafficking Intervention Coord inator.

Budget Narrative


The Comm ittee approved fund shift ing a $2 .0 m ill ion General Fund Emergency Board al locat ion for domest ic and sexual violence to Other Fundi in orde r to use Coronavirus Re lief Funds received by the Department of Adm inistrat ive Services and passed through to the Department of Just ice .

In the General Counsel Division, t he Committee approved an increase of $328,935 Ot he r Funds expenditu re limitat ion and authorized the establ ishment of one permanent full-t ime Senior Ass istant Attorney Gene ral posit ion (0.42 FTE) and one pe rmanent ful l-t ime Ass istant Attorney General posit ion (0.42 FTE) in the Business Transactions Section . These posit ions wi ll serve as des ign and construct ion attorneys fo r transportation infrast ructure project s aut horized in HB 2017 (2017). The revenue to support these posit ions will come from hou rly legal service billing to the Oregon Department of Transportat ion .

The Comm ittee approved a $440,668 Other Funds expenditure lim itat io n red uction in the Trial Services Divis ion for th ree vacant permane nt full t ime Assistant Attorney Genera l posit ions (1 .25 FTE) due to a General Fund reduct ion for the Defense of Criminal Convict ions.

Also approved was a one-t ime $2 .3 mill ion Genera l Fund reduction to the Defense of Crim ina l Conviction caseloads. The attorneys of the Appellate and Tria l Divisions charge the program fo r the ir work at the sa me rate as they charge othe r state agencies fo r lega l work.

By closing one of seve ral Port land office locat ions, budgetary savings of $56,902 Gene ral Fund, $27,214 Ot her Funds expenditure lim itat ion, and $163,285 Federal Funds expend iture limitat ion were ach ieved in the Divis ion of Ch ild Support.

The Comm ittee approved a one-t ime increase of $1,160,630 Ot her Funds expenditure lim itat ion and $2,252,986 Federa l Funds expenditure limit at ion for the Ch ild Support Enfo rcement Automated System (CSEAS) info rmat ion t echnology project . The increase is related to t hree cont ract amendments for added funct ionality and application documentat ion an d an info rmat ion secu rity control test at DOJ and at the Atmosera co-locat ion data cent e r hosting CS EAS. Other Funds expend iture limit at ion is supported by Article XI-Q bond proceeds from a previously approved bond sa le . Fede ra l Funds p rovide 66% of e ligib le program costs unde r Title IV-D of t he fede ral Social Security Act. The Department of Adm inist rat ive Services is requested to unschedu le the su pplementa l fu nd ing pend ing complet ion of a Legislat ive Fiscal Office review of the status of t he CS EAS project. Addit ionally, a one-t ime fund shift to reduce $181,657 General Fund and $352,628 Federal Funds expend iture limitat ion (forfederal incent ive funds) was approved, with a correspond ing increase in Other Funds expend iture limitat ion .

The Comm ittee approved the fol lowing technical adjustments:

• Child Enfo rcement Automated System information technology project - increase Other Funds expend iture limitat ion by $463,687 fo r services and suppl ies and increase Federal Funds expenditu re lim itat ion by $900,098 fo r se rvices and supplies to account for a delay in contract vendor bi ll ings t hat we re originally ant icipated fo r the 2017-19 b iennium; and

• Agency-wide adjustment - increase General Fund by $30,088 fo r services and suppl ies, reduce Other Funds expend iture limitation by $16,225 fo r se rvices and suppl ies, and reduce Federal Funds expend iture lim itat ion by $6,600 for services and supplies, t o correct misapportioned Department of Adm inistrat ive Service assessment charges.

Budget Narrative


The Comm ittee approved the fol lowing technical adj ustment fo r agencies part icipat ing in t he Department of Justice flat cha rge billing model.

These changes were not included as part of standard changes in the legislat ively adopt ed budget :

Flat Charie Acenciu

Services and supplies - Att orney General l ine- item adj ustment

Arency Adopt ed Approved Chance Percent

Budcet Budret Am ount Chanie

Oregon Board of Licensed Profess iona l Counse lors and The rapists $156,851 $213,094 $56,243 35 .9% Oregon Board of Psychology $223,150 $303,930 $80,780 36 .2%

State Board of Accountancy $423,103 $451,204 $28,101 6.6%

Boa rd of Lice nsed Social Worke rs $85,925 $70,271 ($15,654) -18.2%

Govern ment Et hics Commission $186,758 $248,150 $61,392 32 .9%

Occu pat iona l Therapy Licensing Board $25,703 $18,569 ($7,134 ) -27.8%

Boa rd of Me dica I Imaging $80,830 $82,239 $1,409 1.7% State Board of Examiners fo r Speech-Language Pathology a nd Audio logy $78,690 $53,163 ($25,527) -32.4%

Oregon State Vete ri nary Med ical Examining Boa rd $75,218 $91,868 $16,650 22 .1%

Boa rd of Pharmacy $551,381 $525,607 ($25,774) -4.7%

De partment of Av iat ion $85,396 $105,329 $19,933 23 .3%

Oregon M ilitary Department The Comm ittee approved a reduct ion of $100,000 Gener al Fund from a one-t irne approp dat ion t o the Oregon M ilitary Department - Office of

Emergency Management for a study of the Crit ical Energy Infrastructure Hub located in northwest Portland.

Add it ionally, $500,000 was reduced from a one-t ime Genera l Fund appropriat ion made to the Office of Emergency Management by the

Emergency Board on March 9, 2020, and was replaced w it h Coronavirus Rel ief funds rece ived by the Department of Ad m inistrat ive Services and

transfe rred t o the Oregon M ilitary Department. The original approp riat ion was made for a suit e of all-hazards emergency preparedness and

response act iv it ies, includ ing response to COVI D-19.

A one-t ime reduction of $681,022 Genera l Fund and the reduct ion of $681,022 in match ing Federal Funds w ill reduce travel, tra ining, and

informat ion t echnology lifecycle replacements in the Office of Emergency Management t hrough the end of the 2019-21 b iennium .

Approved budget reductions in the M ilitary Department's Operat ions program, tot al $682,747. These reduct ions include holding six posit ions

vacant and shift ing two posit ions from Genera l Fund t o Federal Funds for the remainder of t he biennium, reducing serv ices and suppl ies

Budget Narrative


expenses t h roughout Oregon's Army Nat ional Guard installations, and transfe rring el igible expenses from General Fund t o federal funding.

These act ions w ill resu lt in t he loss of $964,664 in federal mat ch ing f unds, and Federal Funds expend iture l irnitat ion is correspondingly reduced.

Board of Parole and Post-Prison Supervision

To help w ith balancing the st ate budget, the Comm ittee approved one-time General Fund reductions t otal ing $326,590. Reductions include limit ing serv ices and suppl ies expenditu res, vacancy savings, and t he el imination of two Admin ist rat ive Special ist posit ions . The Board

ant icipates being able to redirect workloads and does not ant icipate a reduction in serv ices .

Oregon State Police

The Comm ittee reduced Genera l Fund expendit ures by $356,360 and Other Funds expend iture li mitat ion by $148,840 to correct a double

budget ed expense in the Department's 2019-21 legislat ive ly adopted budget.

Federal Funds expend iture li mitat ion was increased by $1,104,843 in the Forensics Services program to allow expendit ure of a federal DNA

Capacity Enhancement and Backlog Reduction program grant from the U.S. Department of Justice. Funds will be used for equ ipment and

personne l expenses in the agency's forensic se rv ices laborator ies.

The Comm ittee increased the agency's Ot her Funds expend it ure lim itat ion by $107,676 for expenditu re of a Coronav irus Emergency

Supplementa l Funding grant from the Cr iminal Justice Commission . The funds w ill be used to purchase pe rsonal protect ive equ ipment for patrol troopers stat ewide ..

General Fund reductions t otal ing $6.9 m illion we re approved to help balance t he statewide budget. One-time reduct ions taken in the Agency

Su pport Division t otal $3,645,607 and include cancell ing ve hicle purchases for the rema inder of the bienn ium fo r a savings of $1,807,000;

deferr ing ammunit ion purchases fo r the re mainder of the biennium for a savings of $350,000; reducing Fleet Services' overt ime and personne l

budget s for a savings of $398,462; ho lding a Project M anage r 3 posit ion vacant for t he rema inder of the bienn ium for a savings of $133,03 1; and

reducing support for Stat e Radio System upgrades and equ ipment rep lace ment s for a savings of $957,114. In t he Forensics Division, de laying

equ ipment replace ments until the 202 1-23 b ienn ium saves $2,400,000 General Fund on a one-t ime basis. Add it ional one-t ime reduct ions include General Fund support of $790,090 for fi ve t rooper posit ions t hat respond to Firea rm Inst ant Background Check denials and General Fund

support of $99,038 for one Ga ming Enforcement t roope r posit ion. These reduct ions w ill de lay life-cycle replacements of equ ipment by one year,

and w ill sh ift invest igat ions of f irearm background check denials t o local law enforcement agencies .

Coro navirus Rel ief Funds received by the Department of Adm in istrative Se rv ices we re approved to be passed t h rough to t he Oregon State Pol ice

to cover the Patro l Div ision's payroll expenses from March 2020 through December 2020. Ot her Funds expendit ure limit at ion was increased by $56 m ill ion and the Patrol Division's Gene ral Fund was reduced in the sa me amount on a one-t ime basis .

Budget Narrative


Department of Public Safety Standards and Training

The Comm ittee increased the agency's Federal Funds expendit ure lim itat ion by $429,087 for expend iture of an Assistance t o Firefighters grant

from t he Federal Emergency Management Agency. The agency w ill spend t he award on mob ile firefight ing equ ipment.

For expend iture of a Coronavirus Emergency Supplementa l Funding grant from t he Criminal Just ice Comm ission, t he Committee increased t he

agency's Ot he r Funds expendit u re limit at ion by $22,728. The funds w ill be used t o purchase personal p rot ect ive equ ipment for the Publ ic Safet y

Academy.

Oregon Youth Authority General Fund reduct ions t ota ling $11.5 millio n we re approved t o help balance t he stat ewide budget. One-t ime reductions include $7.3 mill ion

General Fund from t he communit y res ident ial t reatment program, w ith an associated reduction of $433,001 Ot he r Funds and $4,225,006

Federal Funds. Based on program utilizat ion to dat e t h is bienn ium, t h is reduct ion is not expected to have a sign ificant effect on the ava ilabilit y of

residential t reat ment for youth in the community. An addit iona l $2.0 m illion General Fund reduct ion reflects a freeze on travel, hiring, and

spend ing on d iscret ionary services and supplies, and is not expect ed to affect programs and services on an ongoing basis. Th is General Fund

reduction drives an associat ed Other Funds reduction of $26,921 and an associated Federal Funds reduct ion of $37,338. Seven posit ions w i ll be

held vacant for t he rema inder of the b iennium, generating a General Fund savings of $836,816 and a federa l Funds savings of $60,744. One posit ion is shif ted from the General Fund to Ot her Funds, decreasing General Fund expense by $91,375 and increasing Other Funds expense by

the same amount.

The Comm ittee approved two reduct ions to Genera l Fund pass-through app ropriat ions to Mu ltnomah County. Fund ing for services to gang

af fected youth is reduced by $313,480 on a one-t ime basis. Fund ing fo r the East Mult nomah Gang Enforcement Team is reduced by $1,002,067 .

This reduction is int ended to be ongoing.

In order to imp lement p rogrammatic changes to behaviora l rehabilitat ive services (BIRS) mandat ed by SB 171 {2019) and the federal Family First

Prevention Services Act (F FPSA), t he Committee approved a General Fund increase of $1,117,735.

The Comm ittee increased the agency's Ot her Funds expend it ure lim itat ion by $350,000 for expenditu re of a Coronavirus Emergency

Supplementa l Funding grant from t he Criminal Justice Commission . The funds w ill be used to compensat e behavioral rehabilitat ive se rv ice

providers for addit ional measures t hey have taken t o mit igate the t hreat of t he COVIID-19 pandem ic.

TRANSPORTAT ON

Budget Narrative



The Comm ittee approved an increase of $6,131,433 Ot he r Funds expendit u re lim it at ion for t he Driver and Motor Veh icle (DMV) program. Of

this amount, $5,731,433 w il l address t he imp lement ation costs of the federa l REA L ID Act. The re maining $400,000 is for out reach related t o HB

2015 (2019), ,vhich el im inated the requi rement t o provide proof of legal residence to obt ain a dr iver license or state ident ificat ion card.

An addit ional increase of $2,741,953 Other Funds expenditure limit at ion fo r the DIMV program add resses costs related to the COVID-19

pandem ic. This i ncludes cost s for overtime and temporary help t o process backlogs resu lt ing from f ie ld office closures, as w ell as costs for

protective equipment , enhanced j an itor ial services, plast ic shields at customer counters, and increased security.

The Comm ittee approved the fol lowing direct ion to t he Department rega rd ing t ransportat ion p lanning :

BUDGET NOTE: The Oregon Department of Transportat ion is d irected to work w ith commun ity-based organizat ions and ot her

st akeholder s to ensure broad com rnun ity outreach and engagement related t o implement at ion of HB 2015 (2019) . The Department is further directed to use exist ing resou rces of up t o $500,000 for such out reach and t o cont ract w ith one or more trusted co mmunity

based organizat ions w ith a t rack record of p rovid ing culturally competent and lingu ist ica lly appropriat e co mmun ity outreach .

An increase of $42,700,000 Other Funds expend iture limitat ion w as app roved to allow t he Department t o spend federal CAIRES Act money in

support of public transit syst ems statewide.

The Comm ittee approved an increase of $4,000,000 Federa l Funds expenditu re lim it at ion for the Motor Carr ie r Transportat ion program t o

spend federa l formu la fu nds in support of the enforcement of st ate laws govern ing commercial trucks.

Lottery Funds expendit ure lim itat ion in the amount of $500,000 was established for the t ransfer of Lottery Funds from ODVA to ODOT for

administrat ion of the Veterans Rural Transportat ion Grant

The Comm ittee approved an Other Funds expend iture l imitat ion reduction of $5 .. 1 mil lion to reflect a change in the source offund ing for the

Coos Bay Rail Line Repa irs and Bridge Replacement proj ect. The p roject ,viii be financed t hrough the Connect Oregon Fund in lieu of issu ing

lottery bonds t o provide mat ch for a $20.0 m i ll ion BUILD Grant from the U.S. Department of Transportation that has been made to t he Port of

Coos Bay for the ra il line improvements .. The Oregon Transportat ion Commission, as part of irts review of the project appl icat ion tor Connect

Oregon funds, w ill ensure t he project cont inues to be eligible for the federal BUIIILD grant .

Budget Narrative


E-Board Certificate

Legislative Fiscal Office

900 Court St. NE, H-178

Salem OR 97301 503-986-1828

Certificate

December 11, 2020

Oregon Legislative

Emergency Board

Sen. Peter Courtney, Senate Co-Chair Rep. Tin a Kotek, House Co-Chair

Pursuant to the provisions of ORS 291.328, and acting under the authority of ORS 291.326{1)(a), (b), (c), and (d); ORS 291.371; and ORS 291.375; this hereby ce rtifies that the Emergency Boa rd, meeting via remote interface on December 11, 2020, took the following actions:

1. Higher Education Coordinating Commission Acknowledged receipt of a report from the seven pub lic universities on cost management measures implemented during the 2020-21 academic year.

2. Higher Education Coordinating Commission Approved, retroactively, the submission of a federa l grant application to the U.S. Department of Labor, in the amount of $19.5 million, to create temporary employment opportunities and provide tra ining for dislocated workers.

3. Oregon Health Authority Acknowledged receipt of a report on the agency's 2019-21 financial status.

4. Oregon Health Authority Approved, ret roactive ly, t he submiss ion of a grant application to the Association of Maternal and Child Health Programs, in the amount of $100,000, to improve and expand the use of te lehea lth services in materna l and chi ld health programs.

5. Oregon Health Authority Approved, retroact ive ly, t he submission of a federal grant application to the U.S. Department of Health and Human Services for reimbursement of the Oregon State Hospital's health care expenses or lost revenues attributed to t he COVID-19 pandemic.

6. Department of Human Services Acknowledged receipt of a report on agency costs and a f uture General Fund request for providing shelter, food, and wraparound services to Oregon·, ans impacted by wi ldfi res.

7. Department of Human Services Approved the t ra nsfer of Genera l Fund appropriations, the increase and transfer of Other Funds expenditure limitations, the transfer of Federal Funds expenditure limitations, position transfe rs, and the establishment of limited duration and permanent positions; per the attached table.

Legislative Fisca l Office Emergency Board - December 11, 2020

Budget Narrative


8. Department of Public Safety Standards and Training Increased the Other Funds expenditure limitation established for the Department of

Public Safety Standards and Training by section 2(1), chapter 479, Oregon Laws 2019, Operations, by $323,657 for reimbursement of expenses incurred during Wildland Fire Fighter Training for the National Guard Bureau in July 2020.

9. Department of Public Safety Standards and Training Increased the Federal Funds expenditure limitation established for the Department of Public Safety Standards and Training by section 3, chapter 479, Oregon Laws 2019, by

$20,000 for expenditure of a State Fire Systems Training grant from the U.S. Department of Homeland Security.

10. Department of Justice Allocated $2,660,000 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supplement the appropriation made to the Department of Justice by section 1(5), chapter 692, Oregon Laws 2019, Defense of Criminal Convictions; increased the Other Funds expenditure limitation established for the Department of Justice by section 2(2), chapter 692, Oregon Laws 2019, Appellate Division, by $200,653 and authorized the establishment of two permanent full -time positions (0.50 FTE); and

increased the Other Funds expenditure limitation established for the Department of Justice by section 2(7), chapter 692, Oregon Laws 2019, Trial Division, by $269,679 and authorized the establishment of three permanent full-time positions (0.75 FTE); for

defending the state in cases in which sentenced offenders challenge their convictions or sentences.

11. Department of Justice Allocated $65,000 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supplement the appropriation made to the Department of Justice, Appellate Division, by section 1(2), chapter 692, Oregon Laws 2019, for the preparation of ballot titles.

12. Department of Justice Authorized the transfer of $209,000 from the General Fund appropriation established for the Department of Justice by section 1(1), chapter 692, Oregon Laws 2019, Office of the Attorney General and Administration, to the General Fund appropriation established

for the Department of Justice by section 1(3), chapter 692, Oregon Laws 2019, Criminal Justice Division, for workload increases related to Internet Crimes Against Children and election fraud.

13. Military Department Increased the Other Funds Capital Construction expenditure limitation established for the Military Department by section 1(2)(c), chapter 747, Oregon Laws 2017, Future

Readiness Center Sites, by $1,439,700 to purchase property for a readiness center to replace the Redmond Armory.

14. Military Department Allocated $482,096 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supplement the appropriation made to the Military Department

legislative Fiscal Office Emergency Boa rd - December 11, 2020

Budget Narrative


by sectio n 1(4), Chapt er 534, Oregon Laws 2019, Community Support, for State Active Duty expenses; a llocated $24,000 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supp lement the appropriation made to the Military Department by section 1(1), chapter 534, Oregon Laws 2019, Adm inistration, for interest expense; and increased the Other Funds expenditure limitation estab lished for the Military Department by section 2(4), chapter 534, Oregon Laws 2019, Comm unity Support, by $1,580,090 for receipt of reimbursements from the Federal Emergency Management Agency for w ildfire response and COVID-19 missions.

15. Military Department Allocated $1,353,464 from the Emergency Fund established by section 1, chapter 644,

Orego n Laws 2019, to supplement the appropriation made to the Military Department by section 1(3), Chapte r 534, Oregon Laws 2019, Emergency management, to provide state matching funds for the Federal Emergency Management Agency's Other Needs Assista nce program.

16. Military Department Increased the Other Funds expend iture limitation established for the Military Department by sectio n 2(3), chapter 534, Oregon Laws 2019, Emergency management, by $14,254,405 to accommodate an increase in Emergency Commu nications Tax revenues and expenditu res.

17. Department of State Police All ocated $2,998,377 from the Emergency Fund estab lished by section 1, chapter 644, Orego n Laws 2019, to supp lement the appropriation made to the Department of State Police by section 1(1), chapter 568, Oregon Laws 20191 Patrol services, cr imina l invest igations, gam ing enforcement and office of the State Fire Marshal, fo r expenses incurred in response to catastroph ic wi ldfir es and civil protests; and allocated $238,925 from the Emergency Fund estab lished by section 1, chapter 644, Oregon Laws 2019, to suppl ement the appropriation made to the Department of State Police by section 1(3), chapter 568, Oregon Laws 2019, Forensic services and Chief Medical Examiner, for

equipment and expenses incurred in response to catastroph ic w ildfires.

18. Department of State Police All ocated $6,625,000 from the Emergency Fund estab lished by section 1, chapter 644, Orego n Laws 2019, to supp leme nt the approp riation made to the Department of State Police by section 1(1), chapter 568, Oregon Laws 2019, Patrol services, crimina l invest igations, gami ng enforcement and office of the Stat e Fire Marshal; a nd increased the Other Funds expenditure limitation estab lished for the Department of State Police by section 2(1), chapter 568, Oregon Laws 2019, Patrol services, crimina l investigations, gamin g enforcement and office of the State Fire Marshal, by $19,875,000 for costs incurred during the 2020 fire season, with instructions.

19. Oregon Youth Authority Increased the Other Funds expenditure limitati on established for the Oregon Youth Authority by section 2, chapter 427, Oregon Laws 2019, by $3,200,000 for re imbursement of expenses in cu rred due to the COVID-19 pandemic from the Federal

Legislative Fisca l Office Emergency Board - December 11, 2020

Budget Narrative


Emergency Management Agency and from Coronavirus Relief Funds managed by the Departm ent of Administrative Services.

20. Oregon Business Development Department

Increased the Other Funds expenditure limitation estab lished for the Oregon Business Development Department by section 2(4), chapter 522, Oregon Laws 2019, Arts and Cu ltural Trust, by $1,250,000 to allow expend iture of grant funds received for an Artist Relief Program, for grants to professional artist s w ho ha ve experienced financial hardship during the COVID-19 pandemic.

21. Oregon Business Development Department Approved, retroactively, the resubmission of a federa l grant application to the U.S. Economic Development Adm inistration, in the amount of $3.52 million, to plan and implement economic recovery strategies in response to the coronavirus pandemic.

22. Department of Veterans' Affairs Approved, retroactively, the submiss ion of a federal grant application to the U.S. Department of Health and Human Services for Oregon Veterans' Homes healthcare

related expenses and lost revenues attributable to COVID-19.

23. Employment Department Acknowledged receipt of a report on assessing the risks associated with the agency's

efforts to simultaneously plan and implement multiple large information technology

projects.

24. Water Resources Department

Allocated $656,279 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supplement the appropriation made to the Water Resources

Department by section 1(5), chapter 535, Oregon Laws 2019, Director's office, for anticipated legal costs of the 2019-21 biennium.

25. Department of Land Conservation and Development

Approved, retroactively, the submission of a federal grant application to the National

Oceanic and Atmospheric Administration, in the amount of $300,000, to advance

climate adaptation and coastal community resilience.

26. Marine Board Increased the Federal Funds expenditure limitation established for the Oregon State Marine Board by section 2(2), chapter 301, Oregon Laws 2019, Marine law enforcement, by $50,000 for the expenditure of grant funds awarded for the removal of marine debris.

27. Marine Board Approved the submission of a federal grant app lication to the Federal Emergency Management Agency, in the amount of $750,000, to remove navigational hazards and obstructions in the waterways with in fire zones.

Legislative Fiscal Office Emergency Board - December 11, 2020

Budget Narrative


28. Department of Forestry Acknowledged receipt of a report on the 2020 fire season; acknowledged receipt of a report on losses on private lands of timber, building, fencing, livestock, and grazing land

capacity; allocated $25,000,000 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supplement the appropriation made to the Department of Forestry by section 1(2), chapter 664, Oregon Laws 2019, Fire protection, for 2020 fire season costs; increased the Other Funds expenditure limitation of the Department of Forestry estab lished by section 2(2), chapter 664, Oregon Laws 2019, Fire protection, by $13,773,119 for the processing of payments related to the 2020 fire season; and, recommended that a $14,28 1,798 General Fund appropriation for the remaining portion of the 2020 season net emergency firefighting costs be included in an

early-session reba lance bill during th e 2021 session, or as ava ilab le funding allows.

29. Department of Forestry Established a General Fund appropriation by allocating $119,690 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to the Department of Forestry and authorized the establishment of two limited-d uration positions (0.50 FTE) for six months for the workload associated with the damaged facilities reconstruction or replacement projects due to the 2020 wildfires.

30. Department of Geology and Mineral Industries Ap proved, retroactively, the submission of a federal grant application to the U.S. Geological Survey, in the amount of $151,000, for the 3D Elevation Program initiative.

31. Department of Geology and Mineral Industries Approved, retroactively, the submiss ion of a federal grant application to the U.S. Geological Survey, in the amount of $310,000, for the 3D Elevation Program initiative .

32. Department of Geology and Mineral Industries

Approved the submission of a federal grant application to the U.S. Geological Survey, in the amount of $174,165, for the 2021 State Geological Survey project.

33. Department of Geology and Mineral Industries

Authorized the establishment of a limited duration Natural Resource Specialist 4 position (0.16 FTE) to serve as the Chemical Process Mining Coordinator within the Mined Land Regulation and Reclamation program.

34. Department of Transportation

Ap proved, retroactively, the submission of a federal grant application to the Federal Highway Administration, in the amount of $56. 7 million, to restore and reconnect the Historic Columbia River Highway as a state trail.

35. Department of Transportation Transferred $10,000,000 Other Funds expenditure limitation established for the Department of Transportation by section 2(4), chapter 614, Oregon Laws 2019, Bridge program, to the Other Funds expenditure limitation established by section 2(8), chapter 614, Oregon Laws 2019, Loca l Government program; and, transferred $25,000,000 Other Funds expenditure limitation estab lished for the Department ofTransportation by


Budget Narrative


section 2(4), chapter 614, Oregon Laws 2019, Bridge program to the Other Funds expenditure limitation established by section 2(6), chapter 614, Oregon Laws 2019, Modernization program.

36. Department of Transportation Increased the Other Funds expenditure limitation established for the Department of Transportation by section 2(2), chapter 614, Oregon Laws 2019, Maintenance and emergency relief programs, by $71,649,128 for expenses related to winter storms, wildfires, and the COVID-19 pandemic.

37 . Department of Transportation Allocated $7,000,000 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supplement the appropriation established for the Department of Transportation at the October 23, 2020 meeting of the Emergency Board, for ash and debris removal in the eight Oregon cou nties most impacted by the Labor Day wildfires,

and established a Federal Funds expenditure limitation of $150,000,000 for Maintenance and emergency relief programs for wildfire ash and debris removal.

38. Public Utility Commission Increased the Other Funds expenditure limitation established for the Public Utility Commission by section 1(3), chapter 185, Oregon Laws 2019, Administration, by $510,925 to upgrade the electronic filing and docketing system.

39. Department of Consumer and Business Services Acknowledged receipt of a report on workers' compensation premium assessment

rates.

40. Department of Revenue In creased the Other Funds expenditure limitation for the Department of Revenue established by section 2 (1), chapter 612, Oregon Laws 2019, Administration, by $84,240; increased the Other Funds expenditure limitation for the Department of Revenue, established by section 2(4), chapter 612, Oregon Laws 2019, Business Division, by $634,463, and authorized the establishment of six permanent full-time positions (1.67 FTE) and one limited duration position (0.30 FTE); and increased the Other Funds expenditure limitation for the Department of Revenue, established by section 2(7), chapter 612, Oregon Laws 2019, Information Technology Services Division, by $123,527, and authorized the establi shment of two limited duration positions (0.58 FTE); for the implementation of Ballot Measure 108 (2020).

41. Department of Administrative Services In creased the Other Funds expenditure limitation established for the Department of Administrative Services by section 2(7), chapter 518, Oregon Laws 2019, Enterprise Goods and Services, by $2,285,500; increased the Other Funds expenditure limitation established for the Department of Administrative Services by section 2(8), chapter 518, Oregon Laws 2019, Business Services, by $1,902,000; increased the Other Funds expenditure limitation estab lished for the Department of Administrative Services by section 2(4), chapter 518, Oregon Laws 2019, Chief Human Resources Office, by $1,825,000; increased the Other Funds expenditure limitation established for the


Budget Narrative


Department of Administrative Services by section 2(14), chapter 518, Oregon Laws 2019, Oregon Department of Administrative Services information technology by $237,000; and authorized the transfer of $3,197,886 from the Other Funds expenditure limitation established for the Department of Administrative Services by section 2(5)(c), chapter 518, Oregon Laws 2019, State Data Center - Equipment lifecycle replacement, to the Other Funds expenditure limitation established for the Department of Administrative Services by section 2(5)(a), chapter 518, Oregon Laws 2019, State Data Center - Operations, for technical adjustments to correct actions taken during the

August 2020 Second Special Session and to accommodate increased expenditures by the Chief Human Resources Office and internal information technology support.

42. Department of Administrative Services Acknowledged receipt of a report on the CASA transition plan.

43. Department of Administrative Services Acknowledged receipt of a report on compensation plan adjustments.

44. Department of Administrative Services Allocated $200,000,000 from the special purpose appropriation made to the Emergency Board by section 2(1), chapter 644, Oregon Laws 2019; increased Lottery Funds expenditure limitation by $5,442,587; increased Other Funds expenditure limitation by $169,107,877; and increased Federal Funds expenditure limitation by $76,848,702 to fund state employee compensation and benefits adjustments, as well as, Pension

Obligation Bond rate changes, per the attached table.

45. Department of Human Services

Approved the submission of a federal grant application to the Federal Emergency Management Agency, in the amount of up to $8 million over two years, to support wildfire disaster case management services.

46. Oregon Health Authority

Approved, retroactively, the submission of a federal grant application to the Centers for Disease Control and Prevention, in the amount of up to $3,125,000 over a five-year

period, to strengthen the surveillance of birth anomalies to improve health outcomes for infants and their mothers.

47. Housing and Community Services Department Acknowledged receipt of a report on efforts to expend Coronavirus Relief Funds by December 30, 2020.

48. Legislative Fiscal Office for Department of Human Services Allocated $2,900,000 from the Emergency Fund established by section 1, chapter 644, Oregon Laws 2019, to supplement the appropriation made to the Department of Human Services by section 1(2), chapter 668, Oregon Laws 2019, Self-sufficiency and vocational

rehabilitation services, for distribution to the Oregon Food Bank for emergency food purchases.


Budget Narrative


Emergency Board - December 11, 2020

Division/Approp riation

Reference

DEPARTMENT OF HUMAN SERVICES 2019-21

December 2020

Fund Type

Adjustments to Legislatively

Approved Budget

Transfers, Allocations, and Expenditure Limitation Adjustments :

Self-sufficiency and vocational rehabilitation services

Ch 668 1(2), OL 2019 General 18,052,207

Ch 668 2(2), OL 2019 Other 3,759,455

Ch 668 3(2), OL 2019 Federa l 10,963,446

Tota l 32,775,108

Child welfare

Ch 6681(3), OL 2019 Genera l 5,629,619

Ch 668 2(3), OL 2019 Other 70,754

Ch 668 3(3), OL 2019 Federal 2,690,171

Tota l 8,390,544

Attachment to Item #7

Adjustments to Position Authority

142 pos / 36.25 FTE*

1 pas/ 1.00 FTE

Aging and people with disabilities and intellectual/developmental disabilities programs

Ch 668 1(4), OL 2019

Ch 668 2(4), OL 2019

Ch 668 3(4), OL 2019

General

Other

Federa l

Tota l

(25,580,410)

(473,396)

(14,828,714)

(40,882,520)

Central Services and state assessments and enterprise-wide costs

Ch 6681(1), OL 2019

Ch 668 2(1), OL 2019

Ch 668 3(1), OL 2019

Shared services

Ch 668 2(5), OL 2019

Department Total

General

Other

Federal

Other

General

Other

Federal

Tota l

Total

*138 positions/ 34.50 FTE are limited duration

legislative Fiscal Office

1,898,584

173,972

1,175,097

3,247,653

188,000

3,718,785

3,718,785

(2) pos / (2.00) FTE

(1) pas/ (1.00) FTE

2 pos/ 1.25 FTE

142 pas/ 35.50 FTE

Emergency Board - December 11, 2020

Budget Narrative


Emergency Board - December 11 , 2020 Attachment to Item #44

Section/ Table 1 • Errployee Compensation and Pension Obligation Bonds

Program Area Agency Name Appropriation Description Chapter Sub General Fund Lottery Funds Other Funds Federal Funds

ADMINISlRATION ADVOCACY COMMISSIONS OFFICE Operating Expenses 418 01 $28 ,540 $0 $0 $0 DEPT OF ADIi/iN SERVICES Chief Operating Office 518 02-01 $0 $0 $282,905 $0 DEPT OF ADIi/iN SERVICES Chief Financial OfflCe 518 02-02 $0 $0 $658,716 $0 DEPT OF ADIi/iN SERVICES Office of the St ale Chief Information Officer- Policy 518 02-03 $0 $0 $1,581,031 $0 DEPT OF ADrvlN SERVICES Ctief 1-1.Jman Resource Office 518 02-04 $0 $0 $97 1,422 $0 DEPT OF ADIi/iN SERVICES OSCIO - state Data eerier - Operations 518 02-05-a $0 $0 $1 ,994,806 $0 DEPT OF ADIi/iN SERVICES Erierprise Asset Management 518 02-06 $0 $0 $1,750,924 $0 DEPT OF ADIi/iN SERVICES Erierprise Goods and Services 518 02-07 $0 $0 $2,688,343 $0 DEPT OF ADIi/iN SERVICES Business Services 518 02-08 $0 $0 $153,491 $0 DEPT OF ADIi/iN SERVICES DAS Information Tec hnology 518 02-14 $0 $0 $522,862 $0 OREGON STATE TREASLRY Amlinistral ive Expenses - Operations 673 01-01 $0 $0 $2,642,380 $0 OREGON STATE TREASLRY Achl inistrative Expenses - Oregon 529 Savings Net\AJOrk 673 01-02 $0 $0 $63,718 $0 OREGON STATE TREASLRY Adm inistrative Expenses - ORSB 673 01-03 $0 $0 $29,202 $0 RAaNG COM!mSSION Operating Expenses 28 01 $0 $0 $56,230 $0 PUB Er/PLOYEES RETIREMENT SYSTEM Central Administration Division 61 1 01-01 $0 $0 $430,966 $0 PUB EMPLOYEES RETIREMENT SYSTEM Financial and Administrative Services Divis ion 611 01-02 $0 $0 $608,333 $0 PUB EMPLOYEES RETI REMENT SYSTEM lrtormallon Services Division 611 01 -03 $0 $0 $767,741 $0 PUB EMPLOYEES RETIREMENT SYSTEM Operations Division 611 01-04 $0 $0 $1,651,591 $0 PUB E~LOYEES RETIREMENT SYSTEM Compliance, Audit, and Risk Division 611 01-05 $0 $0 $325,514 $0 PUB EMPLOYEES RETI REMENT SYSTEM Core Retirement System Applicat ions 611 04-04 $0 $0 $474,183 $0 SECRETARY OF STA TE Administrative Services Division 672 01 -01 $142,618 $0 $0 $0 SECRETARY OF STA TE Elections Division 672 01-02 $213,537 $0 $0 $0 SECRETARY OF STATE Adm inistrative Services Division 672 02-01 $0 $0 $895,628 $0 SECRETARY OF STA TE Audits Division 672 02-03 $0 $0 $1,343,354 $0 SECRETARY OF STA TE Archives Division 672 02-04 $0 $0 $329,968 $0 SECRETARY OF STA TE Corporation Division 672 02-05 $0 $0 $481,436 $0 SECRETARY OF STA TE Federal Funds - Elections Division 672 03 $0 $0 $0 $74,529 LIQUOR CONTROL COMMISSION Actn inistrative expenses 694 01-01 $0 $0 $2,814,706 $0 LIQUOR CONTROL COMMISSlON Marijuana regulation- recreational 694 01-02 $0 $0 $683,904 $0 LIQUOR CONTROL COMMISSlON Marijuana regulation- medical 694 01-03 $0 $0 $1 45,875 $0 DEPT OF REVENUE Administrat ion 612 01-01 $1 ,11 5,543 $0 $0 $0 DEPT OF REVENUE Property Tax Division 612 01-02 $725,829 $0 $0 $0 DEPT OF REVENUE Personal Tax and Compliance 612 01-03 $3 ,552,328 $0 $0 $0 DEPT OF REVENUE Business 612 01 -04 $918,214 $0 $0 $0 DEPT OF REVENUE Corporate Division 612 01-05 $108 ,398 $0 $0 $0 DEPT OF REVENUE Information Technology 612 01 -06 $888,577 $0 $0 $0 DEPT OF REVENUE Administration 612 02-01 $0 $0 $127,034 $0 DEPT OF REVENUE Property Tax 612 02-02 $0 $0 $197,623 $0 DEPT OF REVENUE Personal Tax and Compliance 612 02-03 $0 $0 $72,803 $0 DEPT OF REVENUE Business 612 02-04 $0 $0 $735,963 $0 DEPT OF REVENUE Collections 612 02-05 $0 $0 $299,666 $0 DEPT OF REVENUE lrto rm alion TeclTlology 612 02-07 $0 $0 $193,717 $0 DEPT OF REVENUE Marijuana Division 612 02-08 $0 $0 $153,850 $0 DEPT OF REVENUE Senior Property Tax Deferral 612 02-09 $0 $0 $58,773 $0 EMPLOYMENT RELATI ONS BOARD Operating Expenses 39 01 $115,550 $0 $0 $0 EMPLOYMENT RELATI ONS BOARD Assessment s or agencies transferred to DAS 39 03 $0 $0 $90,992 $0 OFFICE OF THE GOVERNOR Operating Expenses 665 01 $600,693 $0 $0 $0 OFFICE OF THE GOVERNOR Regional Solutions 665 03 $0 $173 ,778 $0 $0 OFFICE OF THE GOVERNOR Operating Expenses 665 04 $0 $0 $157,595 $0 GOVERNIIIIENT ETHICS COMMISSION Operating Expenses 35 01 $0 $0 $90,005 $0 OREGON STATE LIBRARY Operating Expenses 40 01 $90,454 $0 $0 $0 OREGON STATE LIBRARY Operating Expenses - Non-assessmerts 40 02 $0 $0 $8,407 $0 OREGON STATE LIBRARY Operating Expenses - Assessments 40 03 $0 $0 $209,678 $0 OREGON STATE LIBRARY Operating Expenses 40 04 $0 $0 $0 $64 ,340 SUGrrOTAL $8,500,281 $173,778 $26,745, 335 $138,869

Page 1 of ?

Budget Narrative


ec on Program Area Agency Name Appropriation Description Chapter Sub General Fund Lottery Funds Other Funds Federal Funds

CONSUMER AND BUSINESS SERVICES STATE BOARD OF ACCOUNTANCY Operating Expenses 38 01 $0 $0 $88,910 $0 TAX PRACTITIONERS BOARD Operating Expenses 36 01 $0 $0 $24,510 $0 CONSTRUCTION CONTRACTOR BOARD Operating Expenses 34 01 $0 $0 $611 ,096 $0 MENTAL HEAL TH REGULATORY AGENCY Board of License Counselors and Therapists 23 01 $0 $0 $78,891 $0 MENTAL HEAL TH REGULATORY AGENCY Board of Psychologists 23 01 $0 $0 $57,169 $0 CHIROPRACTIC EXAr.llNERS BOARD Operating Expenses 21 01 $0 $0 $50,408 $0 LICENSED SOCIAL WORKERS BOARD Operating Expenses 22 01 $0 $0 $52,585 $0 OREGON BOARD OF DENTISTRY Operating Expenses 24 01 $0 $0 $92,794 $0 HEAL TH RELATED LICENSING BOARDS State Mortuary and Cemetery Board 25 01 $0 $0 $61.429 $0 HEAL TH RELATED LICENSING BOARDS Board of Nahxopathic Mediclle 25 02 $0 $0 $41 ,620 $0 HEAL TH RELATED LICENSING BOARDS Occ~ational Therapy Licensing Board 25 03 $0 $0 $26,744 $0 HEAL TH RELATED LICENSING BOARDS Board of ~dical Imaging 25 04 $0 $0 $33,488 $0 HEAL TH RELATED LICENSING BOARDS Stale Board of Examllers for Speech-Language Pathology and 25 05 $0 $0 $33,113 $0

Audiology HEAL TH RELATED LICENSING BOARDS Oregon state Veterinary Medical Examining Board 25 06 $0 $0 $39,800 $0 BUREAU OF LABOR AND INDUSTRIES Operating Expenses 633 01 $618,157 $0 $0 $0 BUREAU OF LABOR AND INDUSTRIES Operating Expenses 633 02 $0 $0 $353,341 $0 BUREAU OF LABOR AND INDUSTRIES Wage Security Fund Admll 633 03-01 $0 $0 $117,789 $0 BUREAU OF LABOR AND INDUSTRIES Operating Expenses 633 04 $0 $0 $0 $64,851

BUREAU OF LABOR AND INDUSTRIES Operating Expenses 528 02 $0 $10,230 $0 $0 PUBLIC UTILITY COWISSION Uillty program 185 01-01 $0 $0 $780,605 $0 PUBLIC UTILITY COM.11SSION Resideriial Service Protection Fund 185 01-02 $0 $0 $65,122 $0 PUBLIC UTILITY COM.11SSION Administration 185 01-03 $0 $0 $665,733 $0 PUBLIC UTILITY COM.11SSION Board of Maritime Pilots 185 01-04 $0 $0 $29,317 $0 PUBLIC UTILITY COM.11SSION Operating Expenses 185 02 $0 $0 $0 $49,560 DEPT OF CONSUMER BUSINESS SERVICES Workers' Compensa:ion Board 607 01-01 $0 $0 $1 ,015.423 $0 DEPT OF CONSUMER BUSINESS SERVICES Workers' Compensation Division 607 01-02 $0 $0 $1,885.462 $0 DEPT OF CONSUMER BUSINESS SERVICES OregonOSH,O, 607 01-03 $0 $0 $1.722,102 $0 DEPT OF CONSUMER BUSINESS SERVICES Central Services Division 607 01-04 $0 $0 $1,786,655 $0 DEPT OF CONSUMER BUSINESS SERVICES Division of Financial Regulation 607 01-05 $0 $0 $1,896,800 $0 DEPT OF CONSUt.lER BUSINESS SERVICES Buildi"lg Codes Division 607 01-06 $0 $0 $2,502 ,112 $0 DEPT OF CONSUMER BUSINESS SERVICES Heafth Insurance Exchange- Marketplace Division 607 02-01 $0 $0 $256,835 $0 DEPT OF CONSUMER BUSINESS SERVICES Heafth Insurance Exchange• Ceriral Services 607 02-02 $0 $0 $32,280 $0 DEPT OF CONSUWER BUSINESS SERVICES COFA Premium Assistance Program 607 03 $0 $0 $19,461 $0 DEPT OF CONSUMER BUSINESS SERVlCES COFA Premit.m Assistance Program 607 04 $3 ,722 $0 $0 $0 DEPT OF CONSUMER BUSINESS SERVICES OregonOSH,O, 607 05-01 $0 $0 $0 $640,816

DEPT OF CONSUWER BUSINESS SERVICES Senior Health Insurance Benefit Assistance 607 05-02 $0 $0 $0 $40,269

DEPT OF CONSUMER BUSINESS SERVlCES Central Services Division 607 05-03 $0 $0 $0 $12,203 DEPT OF CONSUMER BUSINESS SERVICES Building Codes Division 607 05-04 $0 $0 $0 $9,353

REAL EST A TE AGENCY Operating Expenses 29 01 $0 $0 $308,126 $0 BOARD OF NURSING Operating Expenses 41 01 $0 $0 $606,071 $0 OREGON MEDICAL BOARD Operati"lg Expenses 184 01 $0 $0 $417.489 $0 PHARMACY, OREGON BOARD OF Operatilg Expenses 27 01 $0 $0 $282,348 $0 SUBTOTAL $621 ,879 $1 0,230 $16,035,628 $817,052

ECONOMIC DEVELOPMENT OREGON BUSINESS DEVELOPMENT DEPARTMENT Oregon Arts Commission 522 01-01 $37,796 $0 $0 $0 OREGON BUSI NESS DEVELOPMENT DEPARTr.llENT Busi"less , Innovation and Trade 522 01-02 $11.488 $0 $0 $0 OREGON BUSINESS DEVELOPMENT DEPARTMENT Busiless , Innovation and Trade 522 02-01 $0 $0 $362,158 $0 OREGON BUSINESS DEVELOPMENT DEPARTMENT Infrastructure 522 02-02 $0 $0 $259,812 $0 OREGON BUSINESS DEVELOPMENT DEPARTMENT Operations 522 02-03 $0 $0 $129,867 $0 OREGON BUSINESS DEVELOPMENT DEPARTMENT Arts and Cultural Trust 522 02-04 $0 $0 $74.434 $0 OREGON BUSINESS DEVELOPMENT DEPARTt..ENT Busi"less , Innovation and Trade 522 03-01 $0 $394,767 $0 $0 OREGON BUSINESS DEVELOPMENT DEPARTMENT Operations 522 03-02 $0 $304,809 $0 $0 OREGON BUSINESS DEVELOPMENT DEPARTMENT Infra structure 522 03-05 $0 $67.245 $0 $0 OREGON BUSINESS DEVELOPMENT DEPARTt.lENT Busi"less , Innovation and Trade 522 04-01 $0 $0 $0 $14 ,541

OREGON BUSINESS DEVELOPMENT DEPARTMENT Infrastructure 522 04-02 $0 $0 $0 $38,099

OREGON BUSINESS DEVELOPMENT DEPARTMENT Operations 522 04-03 $0 $0 $0 $11 ,649 DEPT OF HOLISING/COtJiMUNITY SVCS Operatilg Expenses 642 01 $103 ,673 $0 $0 $0 DEPT OF HOUSING/COMMU~TY SVCS Operati"lg Expenses 642 02 $0 $0 $2,249,969 $0 DEPT OF HOUSING/COMMU~TY SVCS Operati"lg Expenses 642 04 $0 $0 $0 $253,239

DEPT OF VETERANS AFFAIRS Services provided by the Department 570 01-01 $252 ,956 $0 $0 $0

Page2of7

Budget Narrative


C IOn Program Area Agency Name Appropri3:ion Description Chapter Sub General Fund Lottery Funds Other Funds Federal Funds

DEPT OF VETERANS AFFAJRS Services provided by Department 570 02-01 $0 $271,463 $0 $0 DEPT OF VETERANS AFFAIRS Veteran Loans, Oregon Veterans' Homes 570 0:,.01 $0 $0 $552,307 $0 DEPT OF VETERANS AFFAIRS Services provided by Department 570 04 $0 $0 $0 $35,975 DEPT OF EMPLOYMENT Unemployment Insurance, shared services and 'NOfkforce operations, 269 01 -01 $0 $0 $4 ,504 ,660 $0

and workforce and economic research DEPT OF EMPLOYMENT Office of ActnlnistratWe Hearings 269 01-02 $0 $0 $1 ,185,673 $0 DEPT OF EMPLOYMENT Modernization Initiative 269 01-04 $0 $0 $592,743 $0 DEPT OF EMPLOYMENT Operat ing budget 269 04 $0 $0 $0 $6,882 ,810 DEPT OF EMPLOYMENT Paid Family Leave 700 59 $278,854 $0 $0 $0 SUBTOTAL $684,767 $1 ,038,284 $9,911,62 3 $7,236,313

EDUCATION TEACHER STANDARDS/PRACTI CES Operating Expenses 569 01 $0 $0 $271 ,333 $0 DEPT OF EDUCATI ON Operations 609 01-01 $2,614,085 $0 $0 $0 DEPT OF EDUCATI ON Oregon School for the Deaf 609 01-02 $531,346 $0 $0 $0 DEPT OF EDUCATI ON Operations 609 06-02 $0 $0 $993,613 $0 DEPT OF EDUCATI ON Oregon School for the Deaf 609 06-03 $0 $0 $82,448 $0 DEPT OF EDUCATI ON Operations 609 08-01 $0 $0 $0 $2,639 ,894 DEPT OF EDUCATI ON Oregon School for the Deaf 609 08-02 $0 $0 $0 $6 ,587 DEPT OF EDUCATI ON Developing and im plementing programs under the stude nt Success 220 01 $101,830 $0 $0 $0

Act DEPT OF EDUCATI ON Operallons - Early Learning 220 06-02 $0 $0 $90 ,246 $0 DEPT OF EDUCATI ON Operations - statewide Education Initiatives 220 08-02 $0 $0 $500,342 $0 HI GHER EDUCATI ON COORD , COMM, HECC operations 666 01-01 $807,356 $0 $0 $0 HI GHER EDUCATI ON COORD , COMM, Operations 666 06-01 $0 $0 $498,241 $0 HI GHER EDUCATI ON COORD . COMM. Operations 666 07-01 $0 $0 $0 $439,830 SUBTOTAL $4,054,617 $0 $2,436,22 3 $3,086,311

HUMAN SERI/ICES LONG TERM CARE OMBUDSMAN General Program and services provided to care fac il ity residents 521 01-01 $210,864 $0 $0 $0

LONG TERM CARE OMBUDSMAN Public Guarclan and Conservator Program 521 01-02 $60 ,236 $0 $0 $0 LONG TERM CARE OMBUDSMAN Operating Expenses 521 02 $0 $0 $25,549 $0 CO!,MSSION FOR THE BLIND Operating Expenses 519 01 $185,923 $0 $0 $0 CO!,MSSION FOR THE BLIND Operat ing Expenses 519 02 $0 $0 $5,942 $0 COtvlwtSSION FOR TI-E BLIND Operating Expenses 519 03 $0 $0 $0 $454 ,430 PSYCHIATRIC SECURITY REVIEW BOARD Operating Expenses 524 01 $122,510 $0 $0 $0 DEPT OF HUMAN SERVICES Central services and slate assessments and erierprise-wide costs 668 01-01 $5 ,864 ,644 $0 $0 $0

DEPT OF HUMAN SERVICES Self-st.tfic iency and vocational rehabilitation services 668 01-02 $11 ,248 ,719 $0 $0 $0 DEPT OF HUMAN SERVICES Child welfare 668 01-03 $20 ,969 ,761 $0 $0 $0 DEPT OF HUMAN SERVICES Aging and people 'Mth disabNilies and inlell ectuaVdevelopm erial 668 01 -04 $9 ,294 ,923 $0 $0 $0

dlsabill les programs DEPT OF HUMAN SERVICES Central services and slate assessments and erierprise-wide costs 668 02-01 $0 $0 $370,329 $0

DEPT OF HUMAN SERVICES Self-sufficiency and vocational rehabilitation services 668 02-02 $0 $0 $53,732 $0 DEPT OF HUMAN SERVICES Child welfare 668 02-03 $0 $0 $41 ,509 $0 DEPT OF 1-UMAN SERVICES Aging and people with disabiliti es and inlellectuaVdevelopmerial 668 02-04 $0 $0 $181 ,912 $0

disabillies programs DEPT OF HUMAN SERVICES Shared servic es 668 02-05 $0 $0 $6,535,634 $0 DEPT OF HUMAN SERVICES Central services and state assessments and enterprise-wide costs 668 03-01 $0 $0 $0 $5,323,586

DEPT OF 1-UMAN SERVICES Self-sufficiency and vocationa l rehabilitation services 668 03-02 $0 $0 $0 $12,888,544 DEPT OF HUMAN SERVICES Child welfare 668 0:,.03 $0 $0 $0 $9,716 ,901 DEPT OF HUMAN SERVICES Aging and people with dlsabNities and inte ll ectuaVdevelopmental 668 03-04 $0 $0 $0 $13,136,889

dlsabillies programs OREGON HEAL TH AUTHORITY Health Systems , Health Poftcy and Analytics , and PubNc Health 695 01 -01 $4 ,004 ,878 $0 $0 $0 OREGON HEAL TH AUTHORITY Oregon Stale Hospltal 695 01-02 $22,510 ,174 $0 $0 $0 OREGON HEAL TH AUTHORITY Central Services, state Assessmeris and Enterprise-wide Costs 695 01-03 $4,734,134 $0 $0 $0

OREGON HEAL TH AUTHORITY Health System s, Health Policy and Analytics . and Pt.bk Health 695 02-01 $0 $0 $3 ,653,564 $0 OREGON HEAL TH AUTHORI TY Oregon State Hospital 695 02-02 $0 $0 $1,278,422 $0 OREGON HEAL TH AUTHORI TY Central Services , stale Assessmeris and Enterprise-wide Costs 695 02-03 $0 $0 $546,284 $0

OREGON HEAL TH AUTHORITY Shared Administrative Services 695 02-04 $0 $0 $7,039 ,602 $0

Page 3 of 7

Budget Narrative


ec 10 Program Area Agency Name Appropriation Description Chapter Sub General Fund Lottery Funds Other Funds Federal Funds

OREGON HEAL TH AUTHORI TY Heatth Systems and Health Poli cy Analytics 695 03-01 $0 $78 ,539 $0 $0 OREGON HEAL TH AUTHORI TY Central Services, statewide Assessment s and Erierprise-wide Costs 695 03-02 $0 $16,206 $0 $0

OREGON HEAL TH AUTHORITY Heatth Systems, Health Policy and Analytics, and Public Health 695 04-01 $0 $0 $0 $6 ,721,067 OREGON HEAL TH AUTHORI TY Oregon S1ate Hospital 695 04-02 $0 $0 $0 $1,609 ,559 OREGON HEAL TH AUTHORI TY Central Services, state Assessmeris and Enterprise-wide Costs 695 04-0 3 $0 $0 $0 $1 ,730,299

SUBTOTAL $79,206,766 $94,745 $19,732,479 $51,581 ,275

JUDICIAL BRANCH JUDIQAL FIT Al'O DISABILITY COM Adm inistration 26 01-01 $5 ,462 $0 $0 $0 JUDIQAL DEPARTMENT Judicial Compensation 691 01-01 $2 ,749 ,679 $0 $0 $0 JUDIQAL DEPARTMENT Operations 691 01-0 2 $15,670,764 $0 $0 $0 JUDIQAL DEPARTMENT Mandated Payme nts 691 01-03 $257,822 $0 $0 $0 JUDIQAL DEPARTMENT Operations 691 02-01 $0 $0 $907,642 $0 JUDIQAL DEPARTMENT Mandated Paym ents 691 02-02 $0 $0 $2,312 $0 JUDl• AL DEPART~NT State Court FacUiti es and Security Acco unt 691 02-03 $0 $0 $6 1,11 8 $0 JUDl• AL DEPART~NT State Court Technology Fund 691 02-04 $0 $0 $244 ,910 $0 JUDIQAL DEPARTMENT Operations 691 03 $0 $0 $0 $18,528 PUBLIC DEFENSE SERVICES Appellate Division 303 01-0 1 $909,398 $0 $0 $0 PUBLIC DEFENSE SERVICES Contract and Business Services Division 303 01-03 $273,747 $0 $0 $0 PUBLIC DEFENSE SERVICES Contract and Business Services Division 303 02-02 $0 $0 $33,782 $0 SUBTOTAL $19,866,872 $0 $1,249,764 $18,528

LEGISLATIVE BRANCH LEGISLATIVE ADMIN COMMITTEE General program 693 01-01 $583,864 $0 $0 $0 LEGISLATIVE ASSEMBLY Biennial General Fund 693 06 $406 ,765 $0 $0 $0 LEGISLATIVE ASSEMBLY Both Leg Assembly 693 07-01 $738,242 $0 $0 $0 LEGISLATIVE ASSEMBLY 81 st Leg Assem bly 693 07-02 $385,605 $0 $0 $0 LEGISLATIVE ASSEMBLY Legislative Equity Offke 604 28 $24,359 $0 $0 $0 LEGISLATIVE COUNSEL COMr.ll TTEE Operating Expenses 693 10 $437,662 $0 $0 $0 LEGISLATIVE COUNSEL COMrwtTTEE Operating Expenses 693 11 $0 $0 $66,384 $0 LEGISLATIVE FI SCAL OFFICER Operating Expenses 693 13-01 $251,743 $0 $0 $0 LEGISLATIVE FISCAL OFFICER Operating Expenses 693 13-02 $0 $0 $153,710 $0 LEGISLATIVE REVENUE OFFICE Operating Expenses 693 15 $69 ,495 $0 $0 $0 INDIAN SERVICES COMMISSION Operating Expenses 693 16 $21,790 $0 $0 $0 LEGISLATIVE POLICY AND RESEARCH Operating Expenses 693 14 $301,269 $0 $0 $0 SUBTOTAL $3,220,794 $0 $220,094 $0

NATURAL RESOURCES MARINE BOARD Administration and education 301 01-01 $0 $0 $227,078 $0 MARINE BOARD Marine Law Enforcement 301 01-02 $0 $0 $52,407 $0 MARINE BOARD Facilities construction, mairi , and land acquisition 301 01-03 $0 $0 $94,251 $0 MARINE BOARD Aquatic iwasive species 301 01-04 $0 $0 $18,062 $0 MARINE BOARD Facilities construct ion, malri . and land acquisition 301 02-03 $0 $0 $0 $10,024 DEPARTMENT OF ENERGY Operations 698 02 $0 $0 $826,902 $0 DEPARTMENT OF ENERGY Operations 698 04 $0 $0 $0 $76 ,329 DEPT OF GEOLOGY AND lr-DUSTRIES General Fund 690 01 $26 ,160 $0 $0 $0 DEPT OF GEOLOGY AND lr-DUSTRIES Geologic survey 690 02-01 $0 $0 $0 $0 DEPT OF GEOLOGY AND INDUSTRIES Mined land rec lamation 690 02-02 $0 $0 $31,975 $0 DEPT OF GEOLOGY AND INDUSTRIES Federal funds 690 03 $0 $0 $0 $13 ,889 DEPT OF PARKS AND RECREATION Director's office 302 01-01 $0 $0 $43,575 $0 DEPT OF PARKS AND RECREATION Central services 302 01-02 $0 $0 $355,498 $0 DEPT OF PARKS AND RECREATION Park developmeri 302 01-03 $0 $0 $21,607 $0 DEPT OF PARKS AND RECREATION Direct services 302 01-04 $0 $0 $2,000,032 $0 DEPT OF PARKS AND RECREATION Community support and grant s 302 01-05 $0 $0 $72,824 $0 DEPT OF PARKS AND RECREATION Director's office 302 02-01 $0 $49 ,417 $0 $0 DEPT OF PARKS AND RECREATI ON Central services 302 02-02 $0 $361 ,026 $0 $0 DEPT OF PARKS AND RECREATI ON Park developmeri 302 02-03 $0 $77 ,989 $0 $0 DEPT OF PARKS AND RECREATI ON Direct services 302 02-04 $0 $1,852 ,572 $0 $0 DEPT OF PARKS AND RECREATION Community support and grants 302 02-05 $0 $190 ,525 $0 $0 DEPT OF PARKS AND RECREATION Direct services 302 04-02 $0 $0 $0 $10,634 DEPT OF PARKS AND RECREATION Community support and grant s 302 04-03 $0 $0 $0 $51,374

Page4 of 7

Budget Narrative


ec 10 Program Area Agency Name Appropriation Description Chapter Sub General Fund Lottery Funds Other Funds Federal Funds

LAND USE APPEALS BOARD General Fund 219 01 $81,639 $0 so $0 DEPT OF WATER RESOURCES Actnlristratlve Services 535 01-01 $87 ,518 $0 so $0 DEPT OF WATER RESOURCES Field Servic es 535 01-02 $545,872 $0 so $0 DEPT OF WATER RESOURCES Technical Services 535 01-04 $380,006 $0 so $0 DEPT OF WATER RESOURCES Watef Rights Adjudication 535 01-03 $142 ,676 $0 so $0 DEPT OF WATER RESOURCES Director's office 535 01-05 $195 ,392 $0 so $0 DEPT OF WATER RESOURCES Actn iristrative Services 535 03-01 $0 $0 $40,759 $0 DEPT OF WATER RESOURCES Field Services 535 03-02 $0 $0 $1 15,791 $0 DEPT OF WATER RESOURCES Techn ical Services 535 03-04 $0 $0 $175,572 $0 DEPT OF WATER RESOURCES Watef Rights Adjudication 535 03-03 $0 $0 $224,296 $0

DEPT OF WATER RESOURCES Administrative Services 535 04-01 $0 $0 so $2,161 DEPT OF WATER RESOURCES Field Servic es 535 04-02 $0 $0 so $9 ,847 WATERSHED ENHANCEMENT BOARD Operati'lg expenses, aclivlies & projects 696 05 $0 $322,064 so $0 WATERSHED ENHANCEMENT BOARD Operations 696 07-1 $0 $0 so $122 ,970 DEPARTMENT OF STATE LANDS Common School Food programs 454 01-01 $0 $0 $1 ,086,112 $0 DEPARTMENT OF ST A TE LANDS Oregon Removal-Fill Miligil:ion Fund 454 01-02 $0 so $5,523 $0 DEPARTMENT OF STATE LANDS Soulh Slough National Estuarine Research Reserve operations 01-03 $0 so $108,256 $0

454 DEPARTMENT OF STATE LANDS Soulh Slough National Estuarine Rese arch Reserve operations 03-01 $0 so so $81,673

454 DEPT OF AGRICULTURE Administrative and Support Services 452 01-01 $66 ,469 $0 so $0 DEPT OF AGRICULTURE Food Safety 452 01-02 $342 ,841 $0 so $0 DEPT OF AGRI CULTURE Natural Resources 452 01-03 $309,162 $0 so $0 DEPT OF AGRICULTURE Market Access 452 01-04 $11 0,072 so so $0 DEPT OF AGRI CULTURE Admiristrative and Support Services 452 02-01 $0 $0 $392,950 $0 DEPT OF AGRICULTURE Food Safety 452 02-02 $0 $0 $1 ,195,523 $0 DEPT OF AGRI CULTURE Natural Resources 452 02-03 $0 $0 $61 1,234 $0 DEPT OF AGRICULTURE Market Access 452 02-04 $0 $0 $625,502 $0

DEPT OF AGRI CULTURE Parks and Natural Resourc es Food 452 03 $0 $298,460 so $0 DEPT OF AGRICULTURE Food Safety 452 04-02 $0 $0 so $10,241 DEPT OF AGRICULTURE Natural Resources 452 04-03 $0 $0 so $177,142 DEPT OF AGRI CULTURE Markel Access 452 04-04 $0 $0 so $62 ,671 DEPT OF ENVIRONMENTAL QUALI TY Air quality 663 01-01 $490,434 $0 so $0 DEPT OF ENVIRONMENTAL QUALI TY Water quaHty 663 01-02 $1 ,139,216 $0 so $0 DEPT OF ENVIRONMENTAL QUALITY Land qua~ty 663 01-03 $36 ,967 $0 so $0 DEPT OF ENVIRONMENTAL QUALI TY Agency management 663 01-04 $8 ,162 $0 so $0 DEPT OF ENVIRONMENTAL QUALITY Air quality 663 02-01 $0 $0 $1 ,823,480 $0 DEPT OF ENVIRONMENTAL QUALI TY Water quaHy 663 02-02 $0 $0 $1 ,142,562 $0 DEPT OF ENVIRONMENTAL QUALITY Land quaHty 663 02-03 $0 $0 $1 ,916,745 $0 DEPT OF ENVIRONMENTAL QUALI TY Agency managem ent 663 02-04 $0 $0 $1 ,070.004 $0 DEPT OF ENVIRONMENTAL QUALI TY Parks and Natural Resources Fll'ld 663 03 $0 $256.531 so $0 DEPT OF ENVIRONMENTAL QUALI TY Air quality 663 05-01 $0 $0 so $263,942 DEPT OF ENVIRONMENTAL QUALI TY Water quality 663 05-02 $0 $0 so $344 ,539 DEPT OF ENVIRONMENTAL QUALI TY Land quality 663 05-03 $0 $0 so $261 ,944 DEPT OF ENVIRONMENTAL QUALI TY Air qua lity 645 23 $16,087 $0 so $0 DEPT OF FISH AND WIUDLIFE Fish Division 689 01-01 $757 ,271 $0 so $0 DEPT OF FISH AND W IUDLIFE Wldlife Division 689 01-02 $208,996 so so $0 DEPT OF FISH AND W IUDLIFE Administrative Services Divis ion 689 01-03 $31 ,366 $0 so $0 DEPT OF FISH AND W IUDLIFE Fish Division 689 02-01 $0 $0 $2,598,680 $0 DEPT OF FISH AND WtWLIFE Wldlife Division 689 02-02 $0 $0 $1 ,175 ,791 $0 DEPT OF FISH AND W IUDLIFE Adm inistrative Services Divis ion 689 02-03 $0 $0 $1,343,535 $0 DEPT OF FISH AND W IUDLIFE Capital Improvement 689 02-04 $0 $0 $34,122 $0 DEPT OF FISH AND W IUDLIFE Fish Division 689 03-01 $0 $311,206 so $0 DEPT OF FISH AND WIUDLIFE Wl dlife Division 689 03-02 $0 $47,015 so $0 DEPT OF FISH AND W IUDLIFE Fish Division 689 04-01 $0 $0 so $3,068 ,864 DEPT OF FISH AND W IUDLIFE Widlife Division 689 04-02 $0 $0 so $792 ,409 DEPT OF FISH AND W IUDLIFE Administrative Services Division 689 04-03 $0 $0 so $165 ,606 DEPT OF FORE STRY Agency administration 664 01-01 $45 ,677 $0 so $0 DEPT OF FORESTRY Fire protection 664 01-02 $1,310,270 $0 so $0 DEPT OF FORE STRY Private forests 664 01-03 $782,758 so so $0 DEPT OF FORE STRY Agency administration 664 02-0 1 $0 $0 $1,018,192 $0 DEPT OF FORE STRY Fire Protection 664 02-02 $0 $0 $2,208,719 $0 DEPT OF FORE STRY State fore sts 664 02-03 $0 $0 $2,604,608 $0

Page 5 of 7

Budget Narrative


C IOn Program Area Agency Name Appropriation Description Chapter Sub General Fund Lottery Funds Other Funds Federal Funds

DEPT OF FORESTRY Private forests 664 02-04 $0 $0 $686,333 $0 DEPT OF FORESTRY Equipment pool 664 02-07 $0 $0 $310,020 $0 DEPT OF FORESTRY Agency administration 664 04-01 $0 $0 $0 $67,826

DEPT OF FORESTRY Fire protection 664 04-02 $0 $0 $0 $212,958

DEPT OF FORESTRY State forests 664 04-03 $0 $0 $0 $19,298 DEPT OF FORESTRY Private forests 664 04-04 $0 $0 $0 $183,599

DEPT OF LAND CONSERVTNIDEVELOP Plamlng program 669 01-01 $486 ,280 $0 $0 $0 DEPT OF LAND CONSERVTNIDEVELOP Plaming program 669 02 $0 $0 $74,234 $0 DEPT OF LAND CONSERVTNIDEVELOP Plaming program 669 03 $0 $0 $0 $194,393

SUBTOTAL $7,601 ,291 $3,766,805 $26,332,754 $6,204,333

PUBLIC SAFETY BOARD OF PAROLE,POST PRISON General Fund 523 01 $315,929 $0 $0 $0 BOARD OF PAROLE/POST PRISON Other funds 523 02 $0 $0 $0 $0 OREGON STATE POLICE Patrol services, criminal investigations and gaming ertorcemeri and 568 01-01 $6,648 ,495 $0 $0 $0

the Office cl the State Fire Marshal OREGON STATE POLICE Fish and wildlife ertorcemenl 568 01-02 $0 $0 $0 $0 OREGON STATE POLICE Forensic services and Chief Medical Examiner 568 01-03 $0 $0 $0 $0 OREGON STATE POLICE Administrative services , agency support and criminal Justice 568 01-04 $6 ,029,551 $0 $0 $0

information services OREGON STATE POLI CE Patrol services, criminal investigations and gaming ertorcemeri , 568 02-01 $0 $0 $500,000 $0

Office of the State Fire Marshal OREGON STATE POLICE Fish and wildlife ertorcement 568 02-02 $0 $0 $915,667 $0 OREGON STATE POLICE Forensic services and Chief Medical Exam iner 568 02-03 $0 $0 $1,023,174 $0 OREGON STATE POLICE Administrative services , agency support , cri'n inal justice information 568 02-04 $0 $0 $2 ,804 ,880 $0

services OREGON STATE POLICE Patrol services and criminal investigations and the Office of the state 568 03-01 $0 $0 $0 $6,545

Fire Marshal OREGON STATE POLICE Fish and wil dlife ertorcemenl 568 03-02 $0 $0 $0 $32 ,863

OREGON STATE POLICE Forensic services 568 03-03 $0 $0 $0 $284

OREGON STATE POLICE Administrative services , agency support and criminal Justice 568 03-04 $0 $0 $0 $10 ,887 information services

OREGON STATE POLICE Fish and wildlife ertorcement 568 04 $0 $358,745 $0 $0 DEPT OF CORRECTI ONS Operations and health services 688 01-01 $34 ,290 ,801 $0 $0 $0 DEPT OF CORRECTI ONS Admln , Gen Services, and HR 688 01-02 $15,710 ,210 $0 $0 $0 DEPT OF CORRECTI ONS orrender managemeri and rehablltaUon 688 01 -03 $1,777 ,515 $0 $0 $0 DEPT OF CORRECTI ONS Community corrections 688 01-04 $992 ,126 $0 $0 $0 DEPT OF CORRECTI ONS Operations and health services 688 02-01 $0 $0 $340,495 $0 DEPT OF CORRECTI ONS Admin, Gen Services, and HR 688 02-02 $0 $0 $427,057 $0 CRlr.MNAL JUSTI CE CO!.TJISSION General Fund 520 01 $197,270 $0 $0 $0 CRlr.MNAL JUSTI CE CO!.TJISSION Other funds 520 03 $0 $0 $48,790 $0 CRlr.MNAL JUSTI CE CO!.TJISSION Federal funds 520 04 $0 $0 $0 $12 ,824

DISTRICT ATTORNEYOOEPUTIES Department of Justice for District Attorneys 608 01 $417,498 $0 $0 $0 DEPT OF JUSTI CE Office of the Attorney General and AciTlinistration 692 01-01 $24 ,782 $0 $0 $0 DEPT OF JUSTI CE Criminal Justice Division 692 01-03 $410,163 $0 $0 $0 DEPT OF JUSTI CE Crime Victim and Survivor Services 692 01-04 $89.215 $0 $0 $0 DEPT OF JUSTI CE Division of Child Support 692 01-06 $1,178.888 $0 $0 $0 DEPT OF JUSTI CE Child Sl.4)port Ertorcem ent Automated System 692 01-07 $53.462 $0 $0 $0 DEPT OF JUSTI CE Office of the Attorney General & Aci'rlini stration 692 02-01 $0 $0 $1,443,803 $0 DEPT OF JUSTI CE Appellate Division 692 02-02 $0 $0 $900,626 $0 DEPT OF JUSTI CE Civil Ertorceme nt Division 692 02-03 $0 $0 $3,945,568 $0 DEPT OF JUSTI CE Criminal Justice Division 692 02-04 $0 $0 $362,956 $0 DEPT OF JUSTI CE Crime Victim Survivor Services 692 02-05 $0 $0 $201.698 $0 DEPT OF JUSTI CE General Counsel Division 692 02-06 $0 $0 $2 ,622.204 $0 DEPT OF JUSTI CE Trial Division 692 02-07 $0 $0 $1 ,405.050 $0 DEPT OF JUSTI CE Division of Child Support 692 02-08 $0 $0 $389,559 $0 DEPT OF JUSTI CE Child Sl.4)port Ertorcement Automated System 692 02-09 $0 $0 $104,176 $0 DEPT OF JUSTI CE Civil Ertorcement Division 692 03-01 $0 $0 $0 $182 ,650

DEPT OF JUSTI CE Criminal Justice Division 692 03-02 $0 $0 $0 $24 ,893 DEPT OF JUSTI CE Crime Victim Survivor Services 692 03-03 $0 $0 $0 $146,715

DEPT OF JUSTI CE Division of Child Support 692 03-04 $0 $0 $0 $3 ,161,713

DEPT OF JUSTI CE Child Sl4Jport Ertorcemenl Automated System 692 03-05 $0 $0 $0 $310,809

DEPT OF MILITARY Administration 534 01-01 $160,788 $0 $0 $0 DEPT OF MILITARY Operations 534 01-02 $165,616 $0 $0 $0

Page 6 of7

Budget Narrative


C IOn Program Area Agency Name Appropriation Description Chapter Sub General Fund Lottery Funds Other Funds Federal Funds

DEPT OF MILITARY Emergency manageme nt 534 01-03 $163 ,972 $0 $0 $0

DEPT OF MILITARY Administration 534 02-01 $0 $0 $114,005 $0 DEPT OF MILITARY Operat ions 534 02-02 $0 $0 $181,387 $0 DEPT OF MILITARY Emergency management 534 02-03 $0 $0 $197,202 $0

DEPT OF MILITARY Comm unity support 534 02-04 $0 $0 $139,526 $0 DEPT OF MILITARY Operations 534 03-01 $0 $0 $0 $2 ,618 ,949 DEPT OF MILITARY Emergency Management 534 03-02 $0 $0 $0 $199 ,106 DEPT OF MILITARY Community Support 534 03-03 $0 $0 $0 $558,800 PUBLIC SAFETY/SIDS/TRAINING Operations 479 02-0 1 $0 $0 $1,664 ,878 $0 PUBLIC SAFETY/STDS/TRAINING Operations 479 03 $0 $0 $0 $15,608 OREGON YOUTH AU TH ORI TY Operations 427 01-0 1 $9,616,452 $0 $0 $0 OREGON YOUTH AU TH ORI TY Operat ions 427 02 $0 $0 $25,041 $0 OREGON YOUTH AUTHORITY Operat ions 427 03 $0 $0 $0 $334 ,224 SUBTOTAL $76,242,733 $358,745 $19,757,742 $7,615,870

TRANSPORTATION AVIATI ON DEPARTMENT Operat ions 115 01-01 $0 $0 $153,434 $0 AVIATI ON DEPARTMENT Aircraft registrat ion 115 01-02 $0 $0 $6,256 $0 AVIATI ON DEPARTMENT Pavemeri maintenance 115 01-03 $0 $0 $6,102 $0

AVIATI ON DEPARTMENT Operations 115 02-01 $0 $0 $0 $8 ,783 OREGON DEPT OF TRANSPORTATI ON Maintenance and emergency relief program 614 02-02 $0 $0 $11 ,517 ,703 $0 OREGON DEPT OF TRANSPORTATI ON Preservation program 614 02-03 $0 $0 $1,538,296 $0 OREGON DEPT OF TRANSPORTATI ON Bridge program 614 02-04 $0 $0 $2,269.761 $0 OREGON DEPT OF TRANSPORTATI ON Operations program 614 02-05 $0 $0 $1,943,727 $0 OREGON DEPT OF TRANSPORTATI ON Modernization program 614 02-06 $0 $0 $2,583,037 $0 OREGON DEPT OF TRANSPORTATION Special program s 614 02-07 $0 $0 $6,788,570 $0 OREGON DEPT OF TRANSPORTATI ON Local governme nt program 614 02-08 $0 $0 $692,917 $0 OREGON DEPT OF TRANSPORTATI ON Driver and motor vehicle services 614 02-09 $0 $0 $6,748,069 $0 OREGON DEPT OF TRANSPORTATI ON Motor carrier transportation 614 02-10 $0 $0 $2,515,877 $0 OREGON DEPT OF TRANSPORTATI ON Transport ation program development 614 02-11 $0 $0 $2,795,792 $0 OREGON DEPT OF TRANSPORTATI ON Public transit 614 02-12 $0 $0 $256,557 $0 OREGON DEPT OF TRANSPORTATI ON Rail 614 02-13 $0 $0 $417,211 $0 OREGON DEPT OF TRANSPORTATI ON Transport ation safely 614 02-1 4 $0 $0 $175,071 $0 OREGON DEPT OF TRANSPORTATION Central services 614 02-15 $0 $0 $6,277 ,856 $0 OREGON DEPT OF TRANSPORTATI ON Driver and motor vehicle services 614 03-01 $0 $0 $0 $7.767 OREGON DEPT OF TRANSPORTATI ON Transportation safely 614 03-05 $0 $0 $0 $133,601 SUBTOTAL $0 $0 $46,686,235 $150,151

TOTAL $200,000,000 $5,442,587 $169,107,877 $76,848,702

Page 7 of 7

Budget narrative LEGISLATIVE ACTION - Oregon.gov

Documents