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Governors Budget Message Education First Good Jobs Lower Costs

BudGet HiGHliGHts: Fellow Oregonians, My recommended budget for 2013-15 is guided by one simple premise: that all Oregonians deserve their shot at the American dream. It is a commitment to equity and opportunity for all, secure jobs with upward income mobility, and safe, secure communities where people have a sense of common purpose and commitment to one another. While many of our assumptions about work, progress and fairness have been shaken by economic uncertainty, my optimism for a more prosperous future remains intact. Our great challenge lies in ending the income stagnation that erodes the middle class, exacerbates inequality, and for the first time threatens a generation of Oregonians with the prospect of a declining standard of living. Over the past two years, we have gone a long way toward meeting this challenge. With bipartisan leadership, we have made tough choices to set Oregons economy on an upward trajectory. We came together to close a $3.5 billion budget gap with a balanced budget built on priorities, not programs. Our priorities have been clear: putting children, families and education first; investing in jobs and innovation; and reducing the cost of government. We have begun to shift state investment from addressing problems after they develop to preventing them in the first place. Our reforms in education and health care and our investments in innovation embody the change necessary to accelerate Oregons economic recovery and restore our shared prosperity. We should be proud of what we have accomplished in such a short time, but there is much more to be done to rebuild a strong, secure middle class and further expand economic opportunity particularly in rural Oregon and within our communities of color. That starts with reinvesting in public education by controlling the cost increases including PERS that divert resources from the classroom. It means lowering the

Putting Children, Families and Education First


Child safety $542 million for relief nurseries, child protective services and community health to improve the health and welfare of children. early learning Reforms Realigns childcare, health care and pre-school services to ensure all children are ready to learn when they get to kindergarten. $8 Billion for education Reverses the trend of cuts and layoffs and better integrates Early Learning, K-12 and post-secondary education and career training. More teachers and school days for K-12 $6.15 billion plus $253 million in PERS savings to begin to reinvest in K-12 education, enough to hire an additional 500 teachers. Post-secondary education and training Increases funding for Opportunity Grants to $113.7 million, expands dual credit and supports tuition equity to ensure every qualified Oregon high school graduate, regardless of immigration status, has access to affordable higher education. Highlights continued

cost of health care to make small businesses more competitive and better positioned to create jobs. And it requires state government to be disciplined with tax dollars to maintain critical services for families still facing economic uncertainty. My recommended budget for 2013-15 includes cost savings in PERS compensation, in health care and in public safety to allow for strategic investments in education including family stability and early childhood success while keeping communities safe and improving Oregons business climate for investment and growth. It emphasizes partnerships and community-based investments that move decision-making to the local level and get better leverage for public dollars. And it includes accountability measures to track results over the next decade. There is no quick fix to the economic challenges Oregonians have faced over the last four years. Central to our success will be having the courage and discipline to look beyond the next two years to where we want Oregon to be in a decade and beyond. We share a vision that includes a strong middle class and expanding economic opportunity for every Oregonian in every community in the state. We share an expectation to raise our families in safe, vibrant neighborhoods with excellent, well-funded schools. And we are committed to the future generations of Oregonians whose prosperity depends on the decisions we are making today to wisely deploy the natural, human and financial capital of this great State. Lets take the next steps together.

BudGet HiGHliGHts:

Investing in Jobs and Innovation


Over $1 Billion for Core infrastructure Projects Funds the Interstate 5 bridge replacement, water projects, university buildings, airport, marine and rail improvements, seismic upgrades, and technology infrastructure projects that get Oregonians back to work. $90 Million for Proven innovation Partnerships Increases funding for the Oregon Innovation Council, Signature Research Centers and maintains university-based innovation, agriculture and forestry research programs. Workforce training $10 million to better align programs with employer needs. Regulatory Reforms Removes barriers to private investment and job creation. From Poverty to Prosperity Increases the Earned Income Tax Credit by more than 30 percent and funds Employment Related Day Care to help working families keep more of what they earn and move up the income ladder.

Lowering the Cost of Government


$865 Million in PeRs savings Adjusts out-of-state benefits and caps cost-of-living increases to gain system-wide savings and ensure the long-term viability of public retirement benefits. $11 Billion in expected Health Care savings Over the Next decade Implements health care reforms for better care at lower cost.

John A. Kitzhaber, M.D. Governor

$600 Million in Avoided Public safety Costs Over the Next decade Reduces the cost of corrections through public safety reforms and investments in proven crime prevention and community corrections strategies.

2013-15 Governors Balanced Budget In Context of a Ten-Year Outlook


The final step in rebuilding the House of Oregon is to recognize that the kind of transformational change required can't happen overnight or over the course of a single biennium. It will require a sustained and consistent effort over the next eight to ten years, built on such a solid foundation that it can continue to move forward and be sustained regardless of changes in the executive branch or partisan changes in the make up of the legislature. We have the opportunity and the responsibility to put that foundation in place... - Governor John A. Kitzhaber, M.D., Inaugural Speech, January 10, 2011 The 2013-15 Governors Balanced Budget marks a significant departure from previous biennial budgets. It was prepared with a long-term framework to guide it. It is built on strategic priorities and outcomes, rather than existing programs, and it aims to achieve ambitious goals over the next decade. This budget shifts away from stand-alone agency initiatives, instead emphasizing five cross-cutting priorities that Oregonians have identified as critical to securing a prosperous future: Education, Jobs and Innovation, Healthy People, Safety and Healthy Environment. This outcomes-based budget targets investments to meet specific 10-year goals. It is driven by five guiding principles: 1. Common Vision Develop a statewide vision for the state investment now and in the future. 2. Defined Outcomes Define specific outcomes with clear accountability to Oregon's citizens. 3. Fiscal Sustainability Deliver programs and services efficiently within available resources. 4. Innovative Solutions Prioritize investments in areas of change and innovation. 5. Informed Decision Making Rely on evidence-based information to inform policy decisions and decision makers. This new approach requires the state to set clear budget limits, expectations and criteria for investment. It seeks to deliver critical public services more efficiently and effectively by integrating, streamlining and reducing redundancy. It changes the focus of the biennial budget from balancing the bottom line to budgeting to meet long term outcomes. And it directly involves Oregonians from outside government in recommending program investment levels with accountability measures to track progress over time.
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By emphasizing fiscal sustainability in program delivery, this new approach ensures state government can provide consistent services to Oregonians regardless of the economic climate of the state. It requires consideration of the long term fiscal impact of policy decisions and prioritizes saving in good economic times to cover shortfalls during downturns. Ultimately, this budget is a tool to improve the lives of Oregonians and rebuild a strong, secure middle class. Using that tool effectively over the next decade means not only responding to the acute impacts of economic hardship, but also working to address the root causes of poverty. It means investing in proven poverty reduction strategies, from better education and career training to expanded access to health care and quality housing. And it means elevating a diversity and inclusion agenda to ensure all communities share in new economic opportunities and prosperity. Building a budget using a strategic plan for state government services that cross agency boundaries provides a foundation for future reforms. State government must continue to find ways to deliver programs and services more efficiently. It must be accountable to the strategies set forth in the 10-Year plan. It must make changes when the results dont meet the goals. This budgeting process has benefitted greatly from citizen input and review, including volunteer Program Funding Teams that evaluated spending priorities and programs for their potential to help meet long term goals. Ongoing citizen review will be critical to refine strategies and respond to challenges and opportunities over the coming decade. The 10-year goals, strategies and metrics below provide a road map to get better results for taxpayers investment. For more detail the 10-year goals, strategies and metrics please visit: http://www.oregon.gov/COO/TEN/Pages/index.aspx

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Education: 10-Year Goals, Strategies & Metrics


10-YEAR GOAL STRATEGIES SUCCESS METRICS What we want to How we get there How we measure accomplish progress Every Align funding, outcomes, and education Every child enters Oregonian has strategies across the entire continuum of a childs kindergarten ready to the knowledge, development from birth to k-12 to postlearn. skills, and secondary education and training. credentials to All 3rd graders are reading at grade level. succeed in life. Streamline early childhood services and invest in Oregon kids from an early age so they are set up Achieve 40-40to succeed before they enter kindergarten. 20 by the year 2025: Use early screening to identify and help students o 40% of adults will have who need it most.

Create an aligned set of learning standards,


assessment tools, and support systems for all students.

earned a bachelor's degree or higher.

o 40% of adults will have


earned an associate degree or postsecondary credential.

Create the longitudinal data system that supports


assessment and achievement from kindergarten to college.

o 20% of adults will have


earned a high school diploma or the equivalent.

Make college more affordable and accessible for


all low- and middle-income students.

Replicate successful programs and practices


being used in our top schools across the state.

Revamp workforce training to better align with


employer needs.

Promote Science, Technology, Engineering, Arts


and Math (STEAM) programs.

Provide students particularly underserved


students and their families with monitoring and support to ensure theyre on-track for high school graduation and the realization of their postsecondary aspirations.

Provide resources to educators to increase


educator effectiveness and diversity through better training, mentorship, and professional development.

Promote parent and family involvement in their


childrens success.

Make a strategic investment in a campaign to


help schools, families, and community partners ensure that all children are reading at grade level by third grade.

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Jobs & Innovation: 10-Year Goals, Strategies & Metrics


10-YEAR GOAL What we want to accomplish Oregon has a diverse and dynamic economy that provides jobs and prosperity for all Oregonians. STRATEGIES How we get there SUCCESS METRICS How we measure progress are created per year. earning family wages with per capita income exceeding the national average. Oregon Business Plan are met.

Prepare Oregon's workforce for the 21st century 25,000 net new jobs
economy. by reforming major cost drivers like health care.

Drive down the cost of doing business in Oregon Oregonians are Grow Oregons traded sector and industry
clusters. for industries like advanced manufacturing, clean technology, high technology, forestry products, specialty agriculture and apparel. through Signature Research Centers.

Leverage Oregons global competitive advantage The objectives of the The value of Oregons
agricultural production and net farm income increases by an average of 5% per year over the next 10 years.

Seed innovation and bring new ideas to market Increase access to capital, markets, and support
for small businesses.

Improve the regulatory environment for large and


small businesses.

Leverage private dollars for investments in local


infrastructure.

State contracts with


minority- or womenowned businesses meet or exceed 10% of the value of all agency contracts every year where eligible firms exist.

Revamp workforce training to better align with


employer needs.

Support regional solutions and align local,


regional, and state economic development priorities.

More community
participation directing community investment priorities.

Increase access to opportunities for state


contracts among minority- and women- owned businesses.

Maintain a balance of sustainable timber supply


and environmental protection on private, state, and forest lands.

Improve access to water, land and lower energy


costs for agriculture.

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Healthy People: 10-Year Goals, Strategies & Metrics


10-YEAR GOAL STRATEGIES SUCCESS METRICS What we want to How we get there How we measure accomplish progress Oregon Coordinate care to focus on community-based Per capita Medicaid provides better prevention and management of chronic health care spending health and conditions. is reduced by 2%, better care at saving Oregon at the Use quality of care and performance standards lower costs. Federal Government that address health disparities and focus on up to $11 billion. wellness, prevention, and patient-centered care. Coordinated care Focus resources on prevention, avoiding health models are options for problems before they start. public and private employers as well as Ensure Oregonians have access to high quality, individuals. low cost health insurance through creation of Oregons Health Insurance Exchange, allowing The number of consumers and small businesses to compare uninsured Oregonians health insurance options. is decreased by 50%.

Expand the Oregon Health Plan to Oregonians


under 138% of poverty. a key focus between patients and providers

Reduce adult obesity


rate to less than 30%. obesity rate to less 10%.

Ensure patient safety and quality improvement is Reduce childhood Ensure low-income Oregonians and their children
are able to meet their most basic needs, from access to nutritious food to affordable housing and health care.

Greater than 84% of


babies born in Oregon will have a normal birth weight.

Improve the quality and availability of patient Promote healthy food choices and physical
activity.

centered care options for seniors and people with Reduce adult smoking disabilities. rates to below 15%.

Improve access to food that is affordable and


nutritious.

Safety: 10-Year Goals, Strategies & Metrics


10-YEAR GOAL STRATEGIES SUCCESS METRICS What we want How we get there How we measure to accomplish progress Oregonians are Expand evidence-based criminal justice Violent and property safe and secure. programs to prevent and solve crimes by crime rates are at or investing in community corrections, and local and below their current state law enforcement. historic low level.

Maintain current prison capacity to incarcerate


violent offenders.

Recidivism rate for


offenders is decreased by 10%.

Enhance victim services, local supervision, and


re-entry efforts to reduce victimization, enforce victims rights, and lower recidivism.

The number of
children in foster care and the child welfare system is decreased by 17%.

Give struggling families better access to the help


they need to keep their kids at home and out of the foster care system.

Expand community-based supervision and


support services proven to prevent crime, promote re-entry, and increase self- sufficiency, family stability, and child safety.

The number of young


people in the juvenile justice system is decreased by 22%.

The overrepresentation of people of color in victimization, arrests, and incarceration is reduced by 15%.

Help vulnerable youth avoid the juvenile justice


system.

Improve adult re-entry and reduce their likelihood


to commit future crimes.

Reduce the impact of drug and alcohol addiction Traffic fatalities are decreased by 25%. as a catalyst to crime and abuse. Reduce racial disparities in prosecutions and
incarceration.

Corrections spending
is reduced to 9% or less of the General Fund.

Apply advancements in technology to improve


highway safety and get better results for transportation and infrastructure upgrades.

Improve access to justice so all Oregonians are


able to exercise their rights, regardless of race, gender, income, or location.

Provide judges with data, tools, and discretionary


authority for sentencing.

Improve knowledge and access to consumer


protection laws.

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Healthy Environment: 10-Year Goals, Strategies & Metrics


10-YEAR GOAL STRATEGIES SUCCESS METRICS What we want How we get there How we measure to accomplish progress Oregons Implement Oregons Ten Year Energy Action Plan. 100% of the increase in environment is demand for electricity is healthy and Build on existing, and create new, energy efficiency met through energy sustains our programs to keep improvement costs low for efficiency and communities and Oregon residents and businesses. conservation. economy. Develop home-grown renewable energy resources. Greenhouse gas emissions are reduced Diversify Oregons power and transportation fuel to at least 10% below supplies and create clean energy infrastructure. 1990 levels.

Help local governments invest in improved water and wastewater systems. Partner with local landowners to protect drinking water sources. Improve the population status of commercial and recreational fish species. Improve monitoring of water quality as the foundation for strategic investments in better land management. Improve stewardship and management of priority toxic chemicals. Address the disproportionate impact of environmental toxins on people who live in poverty and people of color. Reduce polluted runoff from urban, agricultural, and forestry uses. Expand the availability and use of cleaner wood stoves, cleaner vehicles and cleaner fuels. Reduce air pollution from wildfires, open burning, and other activities during air inversions and other weather- related events. Increase access and availability to transit, rail, bicycle, and pedestrian travel. Balance ecological and economic interests to improve the health of watersheds, and fish and wildlife habitat. Simplify Oregons land use program and develop new tools to sustain working farms and forestland.

90+% of small town drinking water systems meet high quality standards. At least 60% of monitored stream sites are in good to excellent condition, and water quality is improving across the state. Employment in commercial and recreational fishing is increased by 5%. High priority toxic chemicals in air, water, and land are reduced by 50%. The number of days that air pollution levels are unhealthy is decreased by 50%. Wildland forest loss is limited to 2,500 acres per year and intensive agricultural land loss to 3,500 acres per year.

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Table of Contents
Governors Message Introduction The Economic and Revenue Environment.................................................................................................... A-1 2013-15 General Fund/Lottery Budget (Graphs) ...................................................................................... A-12 2013-15 All Funds Budget (Graphs) ............................................................................................................ A-13 State of Oregon Organization Chart ........................................................................................................... A-14

Outcome Areas
Education Outcome Area ................................................................................................................................ B-1 Healthy People Outcome Area ......................................................................................................................... C-1 Safety Outcome Area ........................................................................................................................................ D-1 Jobs and Innovation Outcome Area ................................................................................................................E-1 Healthy Environment Outcome Area ............................................................................................................. F-1 State Government Administration Outcome Area ....................................................................................... G-1 Constitutionally Elected Officials .................................................................................................................... H-1 Treasurer, Office of the State ........................................................................................................................ H-2 Secretary of State ............................................................................................................................................ H-4 Legislative Branch Program Area ..................................................................................................................... I-1 Indian Services, Commission on ...................................................................................................................... I-2 Legislative Administration Committee ............................................................................................................ I-3 Legislative Assembly........................................................................................................................................ I-4 Legislative Counsel Committee ....................................................................................................................... I-5 Legislative Fiscal Officer.................................................................................................................................. I-6 Legislative Revenue Officer ............................................................................................................................. I-7 Judicial Branch Program Area .........................................................................................................................J-1 Judicial Department, Oregon ............................................................................................................................J-3 Judicial Fitness and Disability, Commission on ..............................................................................................J-5 Public Defense Services Commission..............................................................................................................J-6

Table of Contents
Miscellaneous Program Area .......................................................................................................................... K-1 Emergency Board ........................................................................................................................................... K-1 Tax Expenditure Report ................................................................................................................................. K-3 State and Local Shared Services..................................................................................................................... K-6 Capital Budgeting .............................................................................................................................................. L-1 Capital Construction ........................................................................................................................................ L-1 Program Funding Request Summary ......................................................................................................... L-2 2013-15 Recommended Projects................................................................................................................ L-3 2015-17 Estimated Requirements .............................................................................................................. L-5 2017-19 Estimated Requirements .............................................................................................................. L-6 Bonded Indebtedness Highlights from Treasurer of State Report................................................................................................. L-7 Borrowing Authorizations ........................................................................................................................ L-11 Private Activity Bond Volume ................................................................................................................. L-19 Table A - Recommended State Bond Issuance Authorization ................................................................ L-20 Table B - Long Term Obligations and Authorities .................................................................................. L-21 Table C - General Obligation Debt Summary.......................................................................................... L-22 Table D - Summary of General Obligation Debt Service ........................................................................ L-23 Table E - Summary of Debt Service Requirements for State Bonded Indebtedness by Fund ................ L-24 Table F - Capital Financing Six-Year Forecast Summary....................................................................... L-27 GLOSSARY .......................................................................................................................................................... M-1 Revenue Section................................................................................................................................................. N-1 Revenue Summary.......................................................................................................................................... N-1 General Fund Revenues (Schedule I) ............................................................................................................. N-2 General Fund Summaries ............................................................................................................................... N-3 Lottery Funds Distribution ............................................................................................................................. N-3 Combined General Fund and Lottery Funds Summary .............................................................................. N-11 Non-General Fund Summaries ..................................................................................................................... N-12 Other Funds and Lottery Funds Revenue by Source (Schedule II) ............................................................. N-14 Receipts from the Federal Government (Schedule III) ............................................................................... N-16 All Funds Summaries ................................................................................................................................... N-20 Summary of Detail Revenues by Program, Agency, Fund (Schedule IV) ............................................. N-22 Education Program Area ......................................................................................................................... N-22 Human Resource Program Area .............................................................................................................. N-31 Public Safety Program Area .................................................................................................................... N-38 Economic and Community Development Program Area ....................................................................... N-49 Natural Resources Program Area ............................................................................................................ N-54 Transportation Program Area .................................................................................................................. N-73 Consumer and Business Services Program Area .................................................................................... N-76 Administration Program Area ................................................................................................................. N-90 Legislative Branch Program Area ......................................................................................................... N-102 Judicial Branch Program Area............................................................................................................... N-107 Miscellaneous Program Area ................................................................................................................ N-109

Table of Contents
Expenditure Section Essential Budget Level ................................................................................................................................... O-1 Schedule of Total Expenditures by Program, Agency, Fund (Schedule V) .................................................. O-4 Summary of Expenditures by Category by Fund (Schedule VI) ................................................................. O-22 Number of Full-Time Equivalent Positions (Schedule VII) ........................................................................ O-23 Statutory Limits (Narrative) ......................................................................................................................... O-27 Bill Number Table ............................................................................................................................................. P-1 Staff Page

The Economic and Revenue Environment

ECONOMIC PERFORMANCE AND OUTLOOK


Recent Performance
A chorus of indicators suggests that economic conditions are improving for many of Oregons families and businesses. Unfortunately, the pace of improvement remains slower than what we have become accustomed to in past economic recoveries, and gains have not been shared across all communities. Jobs data reveal a state that continues to expand slowly, adding approximately 25,000 jobs over the past year. While steady, this growth has been weak, generating only slow Figure 1: Oregon's Lackluster Recovery improvement in the Covered Employment, % change year ago statewide unemployment 6% rate (see Figure 1).
4%

Although slow, job growth 2% has been widespread across Oregons industries. Among 0% private sector industries, only information and -2% financial service firms saw small declines this year. The -4% largest gains have been in professional and business -6% services, leisure and hospitality, and retail trade. -8% Together with health 2004 2008 2012 2005 2006 2007 2009 2010 2011 services and construction, these five main industry groups account for approximately 60 percent of all private sector job gains, with manufacturing accounting for another 16 percent. Within manufacturing, gains were led by durable goods, particularly metals and machinery. Public sector employment fell on the year, however, the pace of government job losses has slowed in recent months. Although economic growth in Oregon has continued at roughly the same slow pace since the recovery began, the forces driving this growth have recently changed. In particular, the regional housing market and overall consumer spending are beginning to show signs of life, which is helping to offset weaker market conditions among many of Oregons major manufacturers and exporters. The housing recovery is finally here. However, it remains in its early stages even some three years after the technical end of the recession. Home prices are rising across the country, and in Oregon, prices are increasing in the Portland area. The remainder of the state has yet to see a sustained uptick in prices. However, price declines have certainly moderated in Oregons major cities even though gains remain elusive.
A-1 The Economic and Revenue Environment

2013-15 Governors Balanced Budget

The Economic and Revenue Environment


Stabilizing prices paired with increasing sales and dwindling inventories are good news for new construction and the broader economic activity related to construction (landscapers, realtors, furniture makers, etc.). Housing-related industries are of particular importance in Oregons less urbanized areas. Building permits in recent months are 40-50 percent larger than a year ago and have increased approximately 90 percent from the states recessionary lows. Even with these large increases, which have been dominated by multifamily construction, it will take quite some time before the level of new activity approaches anything considered normal. Multifamily construction is currently building at about 75 percent of the industrys longrun average, in terms of number of units. However, single-family building is only at about 50 percent of its long term average (see Figure 2).

Figure 2: Oregon Housing Permits


Seasonally Adjusted, 3 MMA

3,000 2,500 2,000 1,500 1,000 500 0 Jan-90

Total Permits Single Family

During the recession, the statewide unemployment rate more than doubled over two years from a low of 5 percent in April 2007 to 11.6 percent in June 2009. The regional pattern of job losses across the state largely matched the pattern of weakness in housing markets. Labor market conditions deteriorated the most in Central and Southern Oregon where housing corrections were most severe. In particular, the unemployment rates in Deschutes and Crook counties more than tripled during the downturn. Many of Oregons rural communities missed out on the early stages of the economic recovery. Urban areas with diverse economies have seen job growth across a variety of private sector firms, which has helped to offset losses among housingrelated industries and the public sector. Only recently, as housing and government payrolls have stabilized, have rural labor markets started to recover (see Figure 3).

Jan-94

Jan-98

Jan-02

Jan-06

Jan-10

Figure 3: Unemployment Rate by County


15% 14% 13% 12% 11% 10% 9% 8% 7% 6%
Crook Grant Lake Harney Jefferson Douglas Josephine Curry Klamath Deschutes Linn Jackson Coos Wallowa Baker Malheur Marion Columbia Lincoln Union Morrow State of Oregon Gilliam Lane Polk Sherman Tillamook Umatilla Yamhill Clackamas Clatsop Multnomah Wasco Wheeler Washington Hood River Benton

16%

Seasonally Adjusted

September 2011 September 2012

2013-15 Governors Balanced Budget

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The Economic and Revenue Environment

The Economic and Revenue Environment


Outlook
Key Assumptions Technically, economic recovery began in both Oregon and the U.S. as a whole during the summer of 2009. At that time, growth in output and consumption resumed, and mass layoff announcements became rare. Despite these improvements, the economy is still growing very slowly three years into the expansion, with fewer than half of the job losses having been recovered. As is usually the case in the aftermath of financial crises, the current economic recovery is expected to continue be a slow one by historical standards. Subpar growth is expected while consumers make long overdue corrections to their savings behavior. Although improved consumer spending has been supporting growth in recent months, consumers will not lead during the expansion as a whole. Instead, exports and business investment will fuel demand growth. Professional and business services, health care services, technology manufacturing, transport and retail trade firms will continue to lead the way. Although growth will remain weaker than during a typical economic recovery, the stage is set for some modest improvement should the economy manage to successfully navigate the next few months. The primary reason for optimism is the strength of balance sheets for businesses and consumers alike. With financing costs low, a lot of cash on hand, and corporate profits high, a great deal of spending and investment stands to be unleashed as soon as some of the uncertainty that is obscuring the near-term outlook is cleared away. While household net worth is not yet back to pre-recession levels, it has been increasing strongly. Home prices are again rising, and stock markets have regained much of their recessionary losses. Delinquencies on consumer debt are down across the board (auto loans, student loans, credit cards, etc.). Even rates of mortgages 1 or 2 payments behind have fallen to historically low levels. Only payments for mortgages 90+ days past due remain stubbornly high. All told, many businesses and consumers now have the resources with which to drive growth, and are lacking only the courage to do so. Two of the largest drags on the U.S. and Oregon economies are now easing. The housing recovery is now under way and cutbacks among state and local governments are slowing. While conditions are starting to stabilize among state and local governments, federal fiscal and monetary policies will do little to support growth. Although the nature of tax increases and budget cuts remains unclear, a great deal of deficit reduction can be expected from federal policymakers during 2013. Monetary policy will likely remain accommodating for some time. However, the Federal Reserve has largely exhausted its ammunition, and cannot loosen policy much further.

2013-15 Governors Balanced Budget

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The Economic and Revenue Environment

The Economic and Revenue Environment

Oregon Outlook Oregons economic recovery is expected to persist, but will remain weak relative to past periods of growth. Job gains will remain very slow during early 2013, but are expected to improve modestly during the 2013-15 biennium. Under these assumptions, total employment will not return to its pre-recession peak level until early 2015. In keeping with the outlook for employment, personal income gains will remain below trend for several more months. In 2013 and beyond, personal income will grow at annual rates between 4.5 percent and 5.5 percent, somewhat weaker than what has been seen during past expansions. The nationwide recovery will be led by business investment and export growth, which will give Oregon a comparative advantage over most states. Many of Oregons firms produce investment goods and other business inputs rather than serving consumer demand. Examples include Oregons technology manufacturers, metal makers and commodity firms, transportation equipment producers, utilities, and its warehousing and transport firms. Although Oregons labor market recovery will be a slow one relative to past business cycles, once the state gets back on its feet, it is expected to grow faster than the national average over the extended forecast horizon. Oregons primary long-run growth advantage remains its healthy migration trends. Oregon is expected to continue to enjoy above-average population gains, including an ample flow of skilled labor to supply its growth industries. By the end of the 2013-15 biennium, Oregon is expected to have recovered all of the jobs the state lost during the recession. At that time, service firms (in particular health services and professional services), will represent a larger share of Oregons workforce than ever before. Construction firms, financial services and government will have fared the worst over the business cycle. Notably, this will be the first postwar recession during which Oregons manufacturers and resource industries were not the hardest hit.

Figure 4: After the Smoke Clears


Share of Oregon Employment Before & After Great Recession

0%
Construction Retail Trade Financial Activities Wood Products Transport Equipment Other Nondurables Other Durables Metals & Machinery Information Government Wholesale Trade Computer & Electronics Natural Resources Transport & Warehousing Other Services Food Leisure & Hospitality Education Services Professional & Biz Svcs Health Care

6%

12%

18%

Losers

2008 Q1 2015 Q3

2013-15 Governors Balanced Budget

Winners

Steady

A-4

The Economic and Revenue Environment

The Economic and Revenue Environment


Although Oregons economic growth is expected to accelerate during the 2013-15 biennium, growth will remain below historical norms. Not only do households need to save more, but demographic trends will also weigh on growth. Labor force gains will be slower in accordance with less migration into the state and the retirement of workers in the baby boom population cohort (see Figure 5). The outlook for the 2013-15 biennium calls for some modest improvement in General Fund revenue growth. However, state revenue collections will still likely fail to keep pace with the growing cost of providing public services. Along with underlying economic conditions, tax revenue growth in Oregon is expected to fall in between what we have become accustomed to during past periods of economic expansion, and the slow gains we have seen in recent years.
Figure O.1 Weaker long-run employment growth will translate into weaker growth in state tax revenues going forward. General fund revenues are expected to grow at rates of 10% to 12% throughout the extended forecast horizon. Revenue growth in Oregon and other Oregon: 26th states will face considerable downward pressure over the 10-year extended forecast horizon. As the baby boom population cohort works less and spends less, traditional state tax instruments such as personal income taxes and general sales taxes will become less effective, and revenue growth will fail to match the pace seen in the past (see Figure 6).
Nonfarm Job Growth by State July 2012 over July 2011 (Ranked by Percent Change)

Bottom 10

Fourth 10

Middle 10

Second 10

Top 10

Source: Blue Chip Job Growth Update, W.P. Carey School of Business, Arizona State University

2013-15 Governors Balanced Budget

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The Economic and Revenue Environment

The Economic and Revenue Environment

Risks
Oregons economic recovery remains fragile, and there is a significant risk that the state will slip back into recession before job growth becomes self-sustaining. Paramount among current risks are looming fiscal cutbacks in Washington D.C. and a growth slowdown among our major trading partners. The uncertainty of federal policy is weighing on both business and consumer decisions, causing them to delay their investments, and therefore slowing growth. The so-called fiscal cliff has the potential to derail the expansion and send the economy back into recession. The combination of planned spending cuts and allowing tax rates to rise amounts to between 3 and 4 percent of GDP according to most estimates. While these impacts are unlikely to hit simultaneously and in full force precisely on January 1st, 2013, their impact will be significant for an economy growing at just a 2 percent rate. Oregons ties to foreign markets also put it at risk. In the near term, Oregons relatively small amount of exposure to Europe provides some degree of protection from the currency risks facing the euro zone. Longer-term, Oregon faces a good deal of risk associated with the overvalued Chinese currency and future Asian demand conditions. The local impact of the Asian financial crisis during the 1990s highlights this risk, with Oregon now even more closely tied to Asia than it was at that time. The performance of the housing sector remains a downside risk to the outlook. Until the wave of foreclosures fully plays itself out, and housing inventories return to normal, the potential for further wealth losses exists. A persistent lack of job opportunities puts Oregons healthy migration trends at risk. In addition to jobs, migrants care about a wide range of factors including the quality of school systems, public safety operations and the overall cost of living. As such, any tax increases or reductions in public services that result from state and local budget problems threaten to deter migrants. Following the economic recovery, the reemergence of inflation poses a risk to growth. The unprecedented amount of monetary and fiscal stimulus seen in recent years will generate upward pressure on prices going forward. If these policies are combined with growth in aggregate demand and wages, inflation will once again become a significant threat.

2013-15 Governors Balanced Budget

A-6

The Economic and Revenue Environment

The Economic and Revenue Environment

DEMOGRAPHIC CHANGE
Oregons population reached 3.831 million on April 1, 2010, as enumerated by the 2010 decennial census. This is an increase of 409,675 persons or 12.0 percent since the 2000 Census. Population growth during this decade slowed from the previous 1990 to 2000 decade when the population increased by 579,062 or 20.4 percent. Oregons population growth was 18th highest in the nation between 2000 and 2010, compared to 11th highest during 1990-2000. With the exception of California, Oregons growth rate remained slower than its neighboring states. Over a long run, Oregon has retained a distinction of major destination for migrants in the United States. During the 2000 to 2009 period, nearly 61 percent of the population growth was due to net in-migration. Oregons population growth changes with its economic and employment outlook. Economic slowdown associated with recent recession has caused slow population growth. Population growth in the near future is expected to continue the path of slow growth in sync with the slow pace of economic recovery. Its population is expected to reach 4.252 million in 2020 with an annual rate of growth hovering around 1.1 percent.

Geographic Variations
Figure 7 shows population growth by county between April 1, 2000, and April 1, 2010. Overall state population growth was 12.0 percent during this period. However, there are large variations by region and county. High growth counties (exceeding 15 percent increase) in order of magnitude were Deschutes, Polk, Washington, and Yamhill. Although growth slowed considerably in Deschutes County in recent years, the county led the state with 36.7 percent growth in ten years. The moderately growing counties (between 9 and 15 percent increase) were Jefferson, Columbia, Linn, Jackson, Multnomah, Clackamas, Marion, Benton, Hood River, Crook, and Josephine. The slow growing counties (between zero and 9 percent increase) were Lane, Umatilla, Douglas, Lake, Wasco, Curry, Union, Klamath, Tillamook, Clatsop, Lincoln, Morrow, and Coos. Eight counties losing population (negative growth) were Malheur, Gilliam, Harney, Wallowa, Baker, Grant, Wheeler, and Sherman. Population growth by county reflects the local economic environment. In general, counties in upper Willamette Valley, Central and Southern Oregon experienced high population growth, whereas Eastern Oregon counties lost population over the decade.

2013-15 Governors Balanced Budget

A-7

The Economic and Revenue Environment

The Economic and Revenue Environment


Figure 7: County Population Growth, 2000 2010 (Oregon: 12.0 percent)
CLATSOP COLUMBIA WASHINGTON HOOD MULTNOMAH RIVER

SHERMAN UMATILLA GILLIAM MORROW UNION WALLOWA

TILLAMOOK

YAMHILL

CLACKAMAS WASCO

POLK

MARION JEFFERSON

WHEELER GRANT

BAKER

LINCOLN BENTON

LINN CROOK LANE DESCHUTES

COOS

DOUGLAS

JOSEPHINE CURRY

JACKSON

KLAMATH

LAKE

HARNEY

MALHEUR

Below 0%

0 to 9 %

9 to 15%

Over 15%

Sources: U.S. Bureau of Census: 2000 and 2010 Censuses.

Change in Age Structure


Figure 8 shows that population growth differs by age group with budgetary implications. Children Under five years: The size of this age group directly affects demand for childcare, Head Start, and Temporary Assistance for Needy Families (TANF). Between 2013 and 2015 the number of children under age five will increase by 1.3 percent which is slower than the states overall growth of 2.1 percent. The slow growth in this age group is mainly due to the recent decline in the annual number of births associated with an increasing tendency towards smaller family-size and slowdown in the net inmigration of children and young adults at the early stage of family formation.

2013-15 Governors Balanced Budget

A-8

The Economic and Revenue Environment

The Economic and Revenue Environment


School Age: This age group drives demand for K-12 public school enrollment. Nearly 90 percent of five to 17 year-olds are enrolled in public schools. After growing rapidly during the early 1990s, population growth in this age group has slowed for nearly two decades. After several years of negative growth, the growth in the number of school-age children has turned positive starting in 2011. However, the percentage increase remains well below the states overall population rate of change. Between 2013 and 2015, the number of school-age children is expected to grow by 0.2 percent. During economic hardship the public schools feel added pressure when parents cannot afford private school expenses. Figure 8: Population by Age Groups
Children
700,000 1,400,000

Adults and Elderly

600,000

1,200,000

Age 5-17

Age 25-44

Number of children

Numer of persons

500,000

1,000,000

400,000

800,000

Age 45-64
600,000

300,000

Age 0-4
200,000

Age 65+
400,000

100,000

Forecast

200,000

Age 18-24

Forecast

0 1980 1985 1990 1995 2000 2005 2010 2015 2020

0 1980 1985 1990 1995 2000 2005 2010 2015 2020

Year

Year

Adults
Ages 18 to 24: This age group drives demand for post-secondary education and entry-level jobs. Nearly 70 percent of all undergraduate students in Oregon public universities are 18 to 24 years old. However, college enrollment in Oregon has increased in recent years at a much faster rate than the 18-24 age population due to the lack of competing employment opportunities. Also, males in this age group are the criminally at risk population with the highest arrest rate of all adults. Consequently, population increase in this age group can raise demand for prison and jail beds and probation services. The growth in this population group, however, has slowed and will continue to taper off to negative territory as the baby-boom-echo cohort exits this age group. Between 2013 and 2015, this population will change by 0.4 percent. Ages 25 to 64: Working-age adults comprise 54 percent of the total population. The nature of this group is heavily influenced by baby-boomers. The working-age population is the major contributor to the states tax revenue and puts very little direct pressure on state services. However, younger adults need entry-level jobs and older adults require continued training in a changing technological environment. All of them, especially young adults, need affordable housing, childcare, and schools for their young children. Overall, this population group will grow by 1.3 percent between 2013 and 2015, with older working age adults 45 to 64 growing by 0.6 percent as the early baby-boomers mature out of this age category.

2013-15 Governors Balanced Budget

A-9

The Economic and Revenue Environment

The Economic and Revenue Environment

Elderly
Since 1950, Oregons elderly (ages 65 and over) population has more than tripled, while the total population has nearly doubled. Growth in this group was slow until 2002, largely due to the depression era birth-cohort reaching retirement age. However, the trend has already started to reverse and will continue its faster pace of growth. Beginning in 2011, this population group will consistently exceed four percent annual growth rate. The elderly population accounts for 14.7 percent of the total population. Between 2013 and 2015, the combined elderly population will grow by 8.5 percent. However, the number of young elderly (aged 65 to 74) will increase by staggering 11.6 percent as the early baby boomers continue to enter this age group, far exceeding the state's overall growth of 2.1 percent and at the fastest pace of all age groups. During the same period, the number of oldest elderly (85 plus) will increase by 2.3 percent. The number of persons aged 7584 has just transitioned from a period of negative growth to slow but steady growth. The young elderly require relatively little government assistance, while persons aged 85 and over tend to require more public assistance. Many members of the senior population require health care, pension support, and special housing. They are highly dependent on state long-term care services. Different age groups of elderly population will manifest the effects of people born during the depression era and baby-boom period.

Race and Ethnic Composition


Oregon has become more racially and ethnically diverse. A more diverse population entails meeting the needs of increasing racial and ethnic minorities. Oregon's population is overwhelmingly White. The Census Bureau estimated 88.8 percent of Oregons population as of the White racial group in 2010. However, only 78.6 percent were non-Hispanic White in 2010, down from 83.9 percent in 2000 Census. Each of the other racial categories accounted for less than five percent of the population. Between 2000, and 2010, the nonHispanic Asian, Hawaiian, and Pacific Islander population grew by 39.7 percent and the non-Hispanic African-American or Black racial group increased by 20.2 percent, much faster than 4.9 percent growth of the non-Hispanic White population. The Hispanic or Latino ethnic group, which can be of any race, reached 11.7 percent of Oregons population in 2010. This ethnic group has been increasing very rapidly. The Hispanic population increased from 112,707 in 1990 to 275,314 in 2000 Census. This ethnic group had grown to 450,062 in 2010. Between 2000, and 2010, the Hispanic population increased by 63.5 percent whereas the non-Hispanic population increased by 7.5 percent.

2013-15 Governors Balanced Budget

A-10

The Economic and Revenue Environment

The Economic and Revenue Environment

Figure 9: Population by Race and Ethnicity, 2010 (percent of total population)


|-------------------------------------------- Non-Hispanic --------------------------------------------|

11.7% 78.6% 1.7% White alone African-American alone 1.1% 4.0% 2.8% All Hispanic

Native Indian alone Asian, Hawaiian, & Two or more races Pacific Islander alone one race

Figure 10: Oregons Population Growth by Race & Ethnicity, 2000-2010


All 12.0%

White alone

4.9%

African American alone

20.2%
Non-Hispanic

Native American alone Asian, Hawaiian, & Pacific Islander alone Two or more races

6.0%

39.7%

54.2%

Hispanic (of any race)

63.5%

Source: U.S. Bureau of Census: 2010 Census modified race data.


2013-15 Governors Balanced Budget A-11 The Economic and Revenue Environment

2013-15 General Fund/Lottery

Resources Total: $16,374 Million

Personal Income Tax $13,507 83%

All Other $548 3% GF Beginning Balance $84 1%

Corporate Income Tax $1,053 6%

Lottery Cigarette/Tobac (including Estate Tax co Taxes $204 Beginning $128 Balance & Carry 1% 1% Forward) $850 5%

Expenditures Total: $16,244 Million


Other Education $1,899 12% Healthy People $3,404 21%

State School Funding $6,151 38%

All Other $861 5% State Gov't Administration $669 4%

Safety $2,456 15% Healthy Environments $237 1% Jobs & Innovation $567 4%

2011-13 Governors Balanced Budget

A-12

2013-15General Fund/Lottery

2013-15 All Funds

Resources Total: $137,207 Million


Other Funds & Federal Funds Beginning Balance $69,420 50%

General Fund $15,524 11%

Other Funds $34,020 25%

Lottery (including Beginning Balance & Carry Forward) 849 1%

Federal Funds $17,394 13%

Expenditures Total: $60,188 Million


Healthy People $23,609 39% Jobs & Innovation $7,115 12%

Safety $5,120 9%

Other Education $3,654 6% State School Funding $6,152 10%

Healthy Environments $839 1% All Other $1,060 2% State Gov't Administration $12,639 21%

2011-13 Governors Balanced Budget

A-13

2013-15All Funds

Organization Chart

2013-15 Governor's Balanced Budget

The People of Oregon

Legislative Branch

Executive Branch

Judicial Branch

Senate

House of Representatives

Secretary of State

Attorney General

Governor

Labor Commissioner

Treasurer of State

Chief Justice of Supreme Court

A-14

Department of Justice

Bureau of Labor Industries

Judicial Department

Economic and Revenue Environment

Economic & Community Development Programs Human Resource Programs

Education Programs

Natural Resources Programs

Public Safety Programs

Transportation Programs

Administration Programs

Consumer & Business Services Programs

Education

EDUCATION OUTCOME AREA


10-YEAR GOAL: Every Oregonian has the knowledge, skills and credentials to succeed in life.
2011-13 Leg Approved Budget General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $6,749,098,947 $640,922,239 $2,581,859,007 $1,070,159,432 $2,326,021,909 $290,302,330 $13,658,363,864 18,365 12,904.96 2013-15 Governors Budget* $7,617,818,240 $395,593,608 $273,026,724 $1,022,476,050 $104,657,340 350,664,522 $9,764,236,484 711 670.53

*Decrease in Other Funds, Other Funds Nonlimited, positions, and full-time equivalent due to transition of the Oregon University System from a state agency to a public university system.

2013-15 Budget Overview


This year's kindergarteners are the Class of 2025 the year for which Oregon has set the ambitious 4040-20 goal. The goal is defined as 40 percent of adult Oregonians have earned a bachelors degree or higher, that 40 percent have earned an associates degree or post-secondary credential, and that the remaining 20 percent or less have earned a high school diploma or its equivalent. To achieve this, the Governors budget combines cost-savings in PERS compensation with a significant increase in funding to reinvest in all levels of education, from early learning to K-12 to post-secondary education and training. Key elements of the 2013-15 Governors budget for Education include: $8,013.4 million General Fund and Lottery Funds for education reversing the trend of cuts and layoffs and better integrating Early Learning, K-12 and post-secondary education and career training. $6,151.4 million General Fund and Lottery Funds plus $253 million in PERS savings for K-12, enough to hire 500 new teachers statewide and begin to restore previous cuts and reinvest in better outcomes for students. $35.1 million in strategic investments in reading by third grade, educator diversity and effectiveness, guidance and support for post-secondary aspirations, science, technology, math, engineering and arts programs. Completing the realignment of childcare, health care and pre-school services to ensure all children are ready for kindergarten.
B-1 Education Outcome Area

2013-15 Governor's Balanced Budget

Education
Expanding access to post-secondary education and training for all Oregonians by increasing funding for Opportunity Grants to $113.4 million, providing more options for high school students to accrue college credit early and supporting tuition equity to ensure every qualified Oregon high school graduate, regardless of immigration status, has access to affordable higher education. Aligning and streamlining education governance and funding by combining agencies, consolidating boards, and following through on higher education restructuring for long term financial stability.

Outcome Area Overview


Programs in this outcome area operate or support all public educational activities from pre-kindergarten to post-secondary and life-long learning. These include agencies whose mission is primarily related to education outcomes, specifically the Oregon Education Investment Board, the Department of Education, a proposed Department of Post-Secondary Education, and the Teacher Standards and Practices Commission. They also include education related programs in other agencies, such as the Military Departments Youth Challenge and STARBASE programs, the Arts Commission in the Oregon Business Development Department, and others. Legislation will be proposed to address changes to boards and commissions that guide the education outcome area to further the 40-40-20 Goal described above and support changes to agency structures and functions proposed in the Governors budget. The Oregon Education Investment Board was established by Senate Bill 909 (2011) to oversee a unified public education system that begins with early childhood services and continues throughout public education from kindergarten to post-secondary. The Chief Education Officer serves as the Boards executive officer in the creation, implementation, and management of an integrated and aligned public education system. The Department of Education supports pre-kindergarten through 12th grade (PK-12) education. The agency includes support for school districts in the areas of school improvement, assessment, special education, professional/technical education, legal requirements, nutrition and transportation. State school funding for the public elementary and secondary school districts and education service districts is distributed by the Department of Education. The agencys budget also includes funds for the Oregon State School for the Deaf, education services at youth corrections facilities and youth detention centers, special education, child nutrition, educational programs for children of low-income families. The Governors budget transfers the following two policy organizations to the Department of Education. The Early Learning Council was created to assist the OEIB in the creation of a unified system of early childhood services directed to children from birth to age six. The ELC has absorbed the responsibilities and many of the programs from the Commission on Children and Families, the Commission on Child Care and Oregons official State Advisory Council on the Education and Care for Children mandated by the federal Head Start Act. The Governors budget shifts the Child Care Division from the Employment Department and the Early Learning program currently in the Governors Office, to a newly created Early Learning Division in the Oregon Department of Education.
2013-15 Governor's Balanced Budget B-2 Education Outcome Area

Education

The Youth Development Council was established to create a coordinated system for services to school age children and youth up to age 20 that will support academic success and reduce criminal involvement. The Council oversees a continuum of programs and services for youth while taking on the responsibilities of Juvenile Justice Advisory Committee, the Juvenile Crime Prevention Advisory Committee and state efforts to prevent and intervene with gang violence across Oregon. The Governors budget transfers the Council from the Governors Office to a newly created Youth Development Division in the Oregon Department of Education. The Governors budget proposes creation of a Department of Post-Secondary Education to centralize coordination of the states role in establishing policy for, and contributing to the funding of, the 17 community colleges, seven public four-year universities, and the Oregon Health and Science University. The new department will include the following entities: The Higher Education Coordinating Commission or its successor, under direction and control of the OEIB, is responsible for developing goals and a strategic plan for the states post-secondary education system, implementing accountability measures for achieving those goals, developing a finance model for a consolidated post-secondary education budget, and promoting policies addressing access to post-secondary education, student success and completion, and improved coordination of educational services. The Office of Degree Authorization and the Private Career Schools program are located in HECC. Duties, staff, and funding for the Department of Community Colleges and Workforce Development is transferred to DPSE. Responsibilities include coordination of the efforts of the 17 community colleges and the states workforce development activities. State support for general community college operations and for community college capital construction projects is distributed by this program. Administration of federal Workforce Investment Act programs, supporting local workforce investment boards and service providers, is also located in this program. Oregon Student Access Commission duties, staff, and funding are also transferred to DPSE. Programs being shifted to DPSE include the Oregon Opportunity Grant, the ASPIRE mentoring program, the Student Child Care program, and administration of over 400 publically and privately funded grants and scholarships. State funding to support the Oregon University System and the Oregon Health and Science University will be distributed by DPSE; currently the Department of Administrative Services is responsible for transferring state support to the campuses. State funds contribute to the operation of the seven OUS campuses, the Oregon State University Cascades campus in Bend, and the statewide public service at Oregon State University. At OHSU, the state supports operation of the schools of Medicine, Nursing, and Dentistry, the Office of Rural Health and the Area Health Education Centers, the Child Development and Rehabilitation Centers, and the Oregon Poison Center. Other agencies/programs in the outcome area include the Teacher Standards and Practices Commission which works to ensure that every student in Oregon receives instruction from skilled and ethical educators, the Oregon Military Department Community Support programs (The Youth Challenge
2013-15 Governor's Balanced Budget B-3 Education Outcome Area

Education
Program, serving 16 to 18 year old male and female dropouts who have struggled to succeed in a traditional high school environment and the STARBASE program exposing third to eighth graders to the fields of Science, Technology, Engineering and Mathematics (STEM) with the hopes of inspiring them to pursue a career in these fields), and the Arts Division of Oregon Business Development Department (includes the Oregon Arts Commission and the Oregon Cultural Trust), which promotes statewide and regional partnerships to increase arts education offerings and documenting and disseminating arts learning research and best practices to support all types of arts education opportunities.

Balanced Budget and Key Investments


The budget for the Education Outcome Area is $9.8 billion total funds. General Funds and Lottery Funds total $8 billion. Key elements of the 2013-15 Governors budget are: The State School Fund includes $6,151.4 million General Fund. This amount is $89.8 million above the 2013-15 Current Service Level, after adjusting for $253.8 million in savings due to reduced Public Employee Retirement System rates anticipated from proposed changes in PERS benefit calculations. Initiatives proposed by the Chief Education Officer totaling $35.1 million General Fund to advance early literacy (Oregon Reads), provide guidance and support for students post-secondary aspirations, help students prepare for success in the workplace by focusing on STEM and the Arts (STEAM), and develop a representative corps of professional educators are included in the budgets of the Oregon Education Investment Board, the Department of Education, the Department of Post-Secondary Education, the Oregon State Library, and the Arts Division of the Business Development Department. The Chief Education Officers initiative to develop a representative corps of professional educators includes modification to the State School Fund formula to redirect up to $120 million from the 4.5 percent currently dedicated to Education Service Districts. The funds will be used to create between four and six regional Student Achievement Centers focused on promoting excellence in teaching and learning for teachers, faculty, childcare and other early education professionals, administrators, and instructional support personnel. Funding for the Oregon Education Investment Board includes establishment of a research unit that will provide research and analysis of educational issues to help policy makers make better decisions, based on the most recent and reliable data. The Department of Educations budget includes funds to prepare a business case analysis for development of a statewide longitudinal database reaching from early childhood through postsecondary education that encourages accountability for outcomes and provides better information for policy-makers, educators, students and their families to ensure progress along the entire educational path. The Governors capital budget includes $10 million in general obligation bond debt capacity to begin development of the database in the second year of the biennium, based on the business case analysis. The Governors 10-Year Budget reserves additional debt capacity in future biennia to complete development of the database system.

2013-15 Governor's Balanced Budget

B-4

Education Outcome Area

Education
Early Learning Program Investments. The Governors budget invests an additional $48 million General Fund in Early Learning programs and transfers programs from the Employment Department and the Governors Office into the Early Learning Division at the Department of Education. The budget maintains and enhances existing investments, and positions Oregon to take the next step in developing an outcome focused system of early learning services leading to kindergarten. Key investments are made in the following programs. o Oregon Pre-K, Oregons companion Head Start investment, provides comprehensive preschool services to low-income children. o Relief Nurseries are proven models for supporting children and families to reduce exposure to adverse childhood experiences, trauma, and toxic stress. Relief Nurseries reduce entrance into foster care and strengthen families for the long term. o Employment Related Day Care provides support to families to access childcare, helping parents to stay employed and children to be well cared-for in stable child care arrangements. This budget increases ERDC support from the current 8,500 families to just over 9,000. o Early Intervention and Early Childhood Special Education offer services and supports to families with children diagnosed with developmental disabilities or experiencing developmental delays. House Bill 4165 (2012) mandates that state funded early learning programs be full participants in the development of a coordinated, outcome focused and community-led system of early learning services to prepare children for kindergarten. In order to reward performance, incentivize collaboration and innovation, and move toward the outcome based contracting system described in Senate Bill 909, $10 million in funds previously used for local commission administrative purposes is established as a flexible investment and performance fund, to be granted by the Early Learning Council to the newly established Community Based coordinators of Early Learning Services in 2014. The budget also anticipates an investment of federal Race to the Top Early Learning Challenge funds in the Early Learning Council. Additionally, the Early Learning Division includes funding for a pilot demonstration of a Prevention Health and Wellness Project, using social impact financing. Youth Development Councils budget includes $1 million General Fund in prevention and intervention services related to gang violence and gang involvement. To support the Youth Development Council goals, the Governors budget invests an additional $0.8 million in the Homeless and Runaway Youth program in the Department of Human Services. The Department of Post-Secondary Education is created, combining the Higher Education Coordinating Commission, the Department of Community Colleges and Workforce Development, and the Oregon Student Access Commission. Distribution of state support to the Oregon University System and the Oregon Health and Science University is shifted from the Department of Administrative Services. The Department of Post-Secondary Education, in consultation with relevant boards/commissions, is directed to develop funding formulas for distribution of state support to the community colleges, Oregon University System institutions, and the Oregon Health and Science University that are
B-5 Education Outcome Area

2013-15 Governor's Balanced Budget

Education
outcome-based, including measures of progress and completion to replace those based solely on enrollment. The formulas are to guide distribution of Oregon Opportunity Grants and account for institutional financial aid to students, with the aim of ensuring that all students who receive a new Oregon Diploma (high school) are able to afford to attend college. Recommended General Fund support for the Community College Support Fund is $428.4 million. At an expected enrollment of 250,000 full-time students, this amount represents an 8.1 percent increase over per-student funding in the 2011-13 biennium. In addition, proposed changes to PERS benefit calculations will save community colleges over $44 million system-wide, significantly lowering the Current Service Level for this fund. Funding the Oregon University System is separated into a Public University Support Fund that includes enrollment-based funding and targeted programs focused on student and institutional support and OUS Statewide Programs that include centers, institutes, and other programs with an economic development, natural resource, or other statewide mission. Savings to OUS from proposed PERS benefit calculations changes are estimated at nearly $52 million and accrue entirely to OUS. The anticipated PERS savings are available to help offset increased health benefit costs in the 2013-15 biennium. The Public University Support Fund includes $483.9 million General Fund. Funding for the Chancellors Office is reduced from the 2011-13 Legislatively Approved Budget, as responsibilities for statewide planning and coordination for post-secondary education are shifted to the Department of Post-Secondary Education and its lead board/commission. Funding for OUS Statewide Programs, including Oregon Solutions, the Institute for Natural Resources, the Dispute Resolution Programs, and others is recommended at $37.1 million General Fund. The Oregon State University Extension Service is budgeted at $37.5 million General Fund. OSUs Agricultural Experiment Station and Forest Research Laboratory are included in the Jobs and Innovation Outcome Area, as are Oregon InC. investments in research and economic development activities. The OHSU Support Fund, which includes the education and rural programs of the Oregon Health and Science University, are budgeted at $55.4 million General Fund, unchanged from the 2011-13 biennium. Savings from PERS policy changes will accrue entirely to OHSU. The Child Development and Rehabilitation Center and Oregon Poison Center at OHSU are funded at $10.2 million combined. This is equal to the 2013-15 Current Service Level. Funding for the Opportunity Grant is increased to $113.4 million General Fund and Lottery Funds. With average awards of about $1,800, the Department of Post-Secondary Education is expected to make approximately 63,000 awards during the biennium. Funding for the ASPIRE mentoring program is increased to $2.1 million General Fund to support an expansion to up to 295 schools and other sites by the end of the 2013-15 biennium.

2013-15 Governor's Balanced Budget

B-6

Education Outcome Area

Education
A comprehensive workforce initiative is funded in the Department of Post-Secondary Education budget at $10 million General Fund. The funds will increase the number of Oregonians who obtain National Career Readiness Certificates, certify most counties are work-ready, expand training opportunities in key economic sectors, and provide technical assistance to local workforce boards. The Governors budget includes $275 million in General Fund and Lottery Fund backed debt-financed projects for 2013-15 for the education outcome area. This amount is equal to the full biennial allocation for the education outcome area in the 10 Year Budget capital plan. The budget includes three specific allocations: $10 million for development of the OEIB statewide longitudinal database, $6 million for the Student Achievement Centers proposed in the Chief Education Officers Corps of Professional Educators initiative, and an additional $15 million for seismic remediation of K-12 school facilities. The remaining $244 million is recommended for community college and OUS capital projects. The Governor, in consultation with the OEIB, is evaluating capital projects proposed by the colleges and universities based on their contribution to the states 40-40-20 goal and will make specific project recommendations prior to the 2013 legislative session. An additional $269.4 million is recommended for Oregon University System projects that are financed with campus-paid debt, such as Article XI-F (1) bonds and OUS revenue bonds. Projects include student recreation centers, housing and dining facilities, information systems and communications infrastructure, land and building acquisitions, and other priorities. The distribution of Lottery proceeds to the Oregon University System in support of intercollegiate athletics and scholarships is discontinued. The funds are redirected for other programs in the education outcome area. Debt service on General Fund and Lottery Funds backed debt for OUS, community college, and Department of Education capital projects is increased by 6.8 percent from the 2011-13 Legislatively Approved Budget, to $190.4 million.

Education Programs
Page Program B-8 Arts Division B-9 ASPIRE B-9 Babies First! and Maternal & Child Health Block Grant B-10 Child Rehabilitation Center and Oregon Poison Center B-11 Common School Fund B-11 Community College and Workforce Devl Operations and Prog B-11 Degree Authorization, Office of B-12 Early Learning Division B-14 Education Debt Service B-14 Education Operations B-15 Employment Related Day Care GF/LF 4.5 2.1 1.4 10.2 16.2 306.7 42.5 32.5 19.4 OF/FF 8.5 0.2 8.3 101.8 16.0 0.9 183.6 87.3 99.0 Total funds 13.0 2.3 9.7 10.2 101.8 32.2 0.9 490.3 42.5 119.7 118.4

2013-15 Governor's Balanced Budget

B-7

Education Outcome Area

Education

Education Programs (continued)


Page Program B-15 Extension Service B-15 Oregon Health and Science University Support Fund B-16 K-12 Grant-in-Aid B-18 Opportunity Grants B-19 Oregon Education Investment Board B-20 Oregon University System Statewide Programs B-21 Oregon Youth Conservation Corps B-21 Post-Secondary Education Debt Service B-21 Post-Secondary Education Department Operations B-22 Private Careers Schools B-22 Public University Support Fund B-23 School for the Deaf B-23 State Library Development B-23 State School Fund B-24 State Support to Community Colleges B-24 Student Access Grants and Scholarships B-25 Student Access Operations B-25 Teacher Standards and Practices Commission B-25 Youth Challenge and STARBASE B-26 Youth Corrections Education B-26 Youth Development Council 8.4 GF/LF 37.5 55.4 84.2 119.2 7.2 37.1 147.9 1.7 483.9 11.1 1.0 6,151.4 429.0 0.9 1.8 0.2 OF/FF 1,137.4 0.2 3.5 32.4 1.2 4.2 2.4 0.4 0.0 17.3 2.6 5.0 9.8 17.8 11.2 Total funds 37.5 55.4 1,221.6 119.4 7.2 37.1 3.5 180.3 1.7 1.2 483.9 15.3 3.4 6,151.8 429.1 18.2 4.4 5.0 10.0 17.8 19.6

Education Programs
Arts Division: The Arts division of the Oregon Business Development Department includes the Oregon Arts Commission and the Oregon Cultural Trust. The Arts Commission provides leadership, funding and arts programs to arts organizations, artists and communities. The Oregon Cultural Trust is a statewide initiative that raises significant funds for investment in Oregons arts, humanities and heritage. In addition to the creation of a long-term protected endowment, Trust funds are distributed annually through competitive grants to cultural organizations; to cultural coalitions in Oregon counties and within federally recognized tribes; and to statewide cultural agencies. The Governors budget for this program is $13.0 million total funds. The General Fund portion of $4.5 million supports the Arts Commission and provides the necessary state match for federal funds received. Other Funds represent funds received from the statewide One Percent for Arts Program and from private donations and license plate revenue. The 2013-15 budget allows the Arts division to issue over $3.4
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million in grants to over 400 entities; reach 400,000 youth each year through funding of arts programs offered by nonprofits; provide training and technical assistance to more than 300 arts organizations; and support more than 150 nonprofit arts organizations offering public programs. As part of the Chief Education Officers Connecting to the World of Work initiative, the budget includes $0.5 million to expand arts education to underserved students. ASPIRE: ASPIRE (Access to Student assistance Programs in Reach of Everyone), transferred from Oregon Student Access Commission to the Department of Post-Secondary Education, provides information about education and training beyond high school to middle and high school students in Oregon. Through mentoring, ASPIRE volunteers provide resources to help students overcome financial, cultural, and academic barriers to post-secondary education by helping them set goals, learn about the college admission processes, and apply for financial aid. As part of the Chief Education Officers Guidance and Support for Post-Secondary Aspirations initiative, the Governors budget increases the ASPIRE budget to $2.1 million General Fund, $0.2 million Other Funds, and 12 positions. These funds will allow ASPIRE to continue services at 145 middle schools, high schools, community-based organizations, and community colleges throughout the state. It will also allow expansion to up to an additional 150 sites by the end of the 2013-15 biennium. The 10-Year Plan for Oregon will phase-in funding and positions to fully service all 295 sites during the 2015-17 biennium. Babies First! & Maternal and Child Health Block Grant: This program, within the Oregon Health Authority, includes two distinct sub-programs: Babies First! and the Title V Maternal, Child and Adolescent Health Federal Block Grant. Both sub-programs improve early childhood learning. Delivery of these programs will be coordinated with the Early Learning Division. The first sub-program, Babies First!, is a home visiting program that provides preventative in-home nursing interventions for infants and children under the age of five years and their families. During these home visits, county health department public health nurses provide evidence-based assessments of mother and infant attachment and the home environment; screening and referral for developmental delays, vision and hearing; and case management, advocacy and education for the families. Currently about 7,000 children receive this service each year. Babies First! is a powerful tool to significantly increase the chance high risk children in the program will grow up healthy and ready to learn. The second sub-program, the Title V Maternal, Child and Adolescent Health Federal Block Grant is a federal program, administered by the Public Health Division of the Oregon Health Authority, that provides funding states lead health agencies to provide preventive and primary healthcare services for pregnant women, children, adolescents, and children and youth with special health needs. By providing parents the support they need, the program improves their ability to ensure their childrens health and mental health needs are met, that they are ready to learn at kindergarten and that they are successful throughout their school years.

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The Governors budget is $1.4 million General Fund for Babies First!, and $8.3 million Federal Funds for Maternal and Child Health Block Grant. The Babies First! program is funded through state and county general funds together with federal Medicaid Targeted Case Management. The Block Grant is a noncompetitive, 100 percent federal funds grant, allocated to all U.S. States and Territories on an annual basis using a per capita funding formula. Research has demonstrated that the larger the number of home visits and the earlier they start, the greater the positive impact is on health and educational outcomes. In the 2011-13 biennium Babies First! anticipates that it will make roughly 60,000 visits serving roughly 11,000 children. In Oregon, 24 percent of new mothers report they were depressed during, or after pregnancy, one in five school children have cavities in seven or more teeth, and approximately 80 percent of 11th graders who ever drank alcohol reported first drinking at age 14 or younger. The Maternal and Child Health Block Grant resources will be used to fund a wide range of activities to improve healthy outcomes for women, children, adolescents and families across Oregon. Child Rehabilitation Center and Oregon Poison Center: The Child Development and Rehabilitation Center at the Oregon Health Sciences University provides interdisciplinary clinical health care services for children with health disabilities and complex special health care needs. Its mission is to ensure that children in Oregon with complex special health care needs are identified and receive coordinated health care services through programs of public health, clinical services, education, quality improvement, and research. The programs two main sites are located at the OHSU campus in Portland at Doernbecher Childrens Hospital, and at the University of Oregon campus in Eugene; however it holds regularly scheduled clinical outreach programs in Grants Pass, Klamath Falls, Medford, Roseburg, and Bend. During fiscal year 2012, the program provided services for roughly 49,000 patients. The Governors budget for this program is $7.7 million General Fund. The Child Development and Rehabilitation Center has also regularly received additional funding from Federal agencies such as the National Institute of Health, the Administration on Developmental Disabilities, the Maternal Child Health Bureau, the Center for Disease Control, and others. Programs funded by these additional resources include the University Center for Excellence in Developmental Disabilities, the Leadership Education in Neurodevelopmental and other Disabilities Training Program, and the Oregon Office on Disability and Health. The Oregon Poison Center at OHSU is a 24-hour health care information and treatment resource serving the state. The Poison Center is staffed by doctors and nurses trained in toxicology who handle nearly 45,000 calls per year. While most calls come directly from the public, healthcare providers also use this service to seek expert opinions regarding the urgent care of their patients. Roughly 63 percent of patients receiving assistance from the Oregon Poison Center are children and teens. The Governors budget for this program is $2.5 million General Fund. Approximately 75 percent of the individuals utilizing the Poison Center are able to remain at home, reducing healthcare costs by preventing an otherwise likely expensive emergency care visit.

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Common School Fund: The act of Congress admitting Oregon to the Union in 1859 granted sections 16 and 36 in every township "for the use of schools." Congress granted roughly six percent of the new states land (nearly 3.4 million acres) for the support of schools. Due to various circumstances, only about 700,000 acres remain in state ownership today. These lands and their mineral and timber resources, as well as other resources under the State Land Boards jurisdiction (including the submerged and submersible lands underlying the states tidal and navigable waterways) are managed "with the object of obtaining the greatest benefit for the people of this state, consistent with the conservation of this resource under sound techniques of land management." The State Treasurer and the Oregon Investment Council invest the Common School Fund. In recent years, fund values have ranged from $600 million to $1 billion, depending on market conditions. Twice per year the State Land Board distributes a portion of the funds to the Department of Education, which in turn distributes the funds to school districts. The Common School Fund revenues are considered local revenues. The Governors budget assumes distributions totaling $101.8 million. Community College and Workforce Development Operations and Program: The Department of Community Colleges and Workforce Development (CCWD) Office Operations unit, transferred to the Department of Post-Secondary Education, manages most programs historically administered by CCWD. These include the Community College Support Fund, the National Career Readiness Certificate program, federal Workforce Investment Act and Carl Perkins Career & Technical Education programs, the General Educational Development (GED) program, and the states contribution to community college capital construction projects. The Governors budget includes $16.2 million General Fund, $32.2 million total funds, and 55 positions. This includes $10 million General Fund and three positions for a workforce initiative that expands the Back to Work Oregon and National Career Readiness Certificate programs, funds a Certified Work Ready Communities program and sector-related workforce training, and provides technical assistance to local workforce programs. Federal funding distributed to community colleges, local workforce agencies, and other entities is included in the Department of Post-Secondary Education budget, but is reported in the Jobs and Innovation outcome area. Office of Degree Authorization: The Office of Degree Authorization was transferred from the Oregon Student Access Commission to the Higher Education Coordinating Commission effective July 1, 2012 and will be incorporated into the Department of Post-Secondary Education. ODA reviews proposals by Oregon private institutions, nonOregon colleges, and educational organizations seeking to offer academic degrees in the state. It also reviews proposals for new publicly-funded post-secondary education programs to ensure that publicly subsidized programs do not detrimentally impact other public or private institutions. ODA enforces state laws against presenting fraudulent or substandard academic degrees as a public credential. Workload has increased significantly, as the number of degree programs offered in Oregon on-site and on-line have grow exponentially. The Governors budget includes $0.9 million Other Funds and four positions to
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manage the growing workload. The level of funding is contingent on passage of legislation to restructure and increase fees. Early Learning Division: The Early Learning Council, within the Department of Education, was created in 2011 as part of the PK20 Education system with a focus on efforts to integrate and streamline existing state programs to ensure children are ready to learn when they enter kindergarten. The newly created Early Learning Division in the Department of Education is a unified system of early childhood services for children from birth to age six. The Governors budget of $490.3 million combines several programs from the Employment Department and the former Commission on Children and Families with programs that continue in the Department of Education. Strategies advanced by programs in this division include: Early Learning Council Programs - In 2012, programs previously administered in the Commission on Children and Families were transferred to the Early Learning Council in the Governors Office with the Oregon Education Investment Board. These programs include Healthy Start-Healthy Families, Relief Nurseries, Family Preservation and Support, Children Youth and Families and Great Start. These programs serve high-risk families and their children with intensive homevisiting services, evidence-based best practices prevention and intervention services, and education services. The Governors budget includes a $31 million investment in Early Learning Programs with the Department of Education. The majority of the funding for these programs is General Fund, however some programs are able to use Medicaid for matching funds, Federal Title IV-B(2), private grants and local match. Many programs are able to leverage local funding streams and community donations. The Governors budget includes a strategic $3 million investment in Relief Nurseries above the current budget. Relief Nurseries are comprehensive therapeutic family support programs serving children under age six in families experiencing multiple stresses related to abuse and neglect. Relief Nurseries are a proven model for supporting children and families and work to stop the cycle of child abuse and neglect through interventions that strengthen parents. This additional investment will fund the start-up and continuation of eight Relief Nursery Satellites and address wait lists for current Relief Nurseries. House Bill 4165 (2012) mandates that state funded early learning programs be full participants in the development of a coordinated, outcome focused and community-led system of early learning services to prepare children for kindergarten. In order to reward performance, incentivize collaboration and innovation, and move toward the outcome based contracting system described in Senate Bill 909, $10 million in funds previously used for local commission administrative purposes is established as a flexible investment and performance fund, to be granted by the Early Learning Council to the newly established Community Based coordinators of Early Learning Services in 2014.

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Early Intervention - The Department of Education serves nearly 3,000 infants and toddlers living with disabilities through a state-mandated special education program called Early Intervention (EI). Children, ages birth to three, receive coordinated health and educational services such as physical and cognitive therapies to help lessen the impact of the disability on the childs development and education and to help parents prepare for future steps in education. Most children receive services in their home or child care setting. The program is administered by the Department of Education through contracts with nine Education Service Districts. Early Childhood Special Education - Early Childhood Special Education (ECSE) is a federally mandated special education program for preschoolers, age three to kindergarten, with disabilities or developmental delays. Currently the state serves about 8,400 through these programs. All children who qualify receive services. Most children receive services in their home or child care setting. The program is administered by the Department of Education through contracts with nine Education Service Districts. It is administered in conjunction with the Early Intervention program, providing administrative efficiency while also aligning the two programs. Funding of the program has not kept pace with the costs. The number of children needing ECSE services continues to increase. The Governors budget is primarily General Fund. However there are also federal Individuals with Disabilities Education Act funds and Medicaid reimbursement funds. This level of General Fund investment funds expected caseload growth to serve children eligible for ECSE. Oregon Pre Kindergarten - The Oregon Pre-Kindergarten (OPK) program provides preschool education, child health and nutrition, and family support services throughout the state to lowest income and highest need preschool children ages three to five years. Currently more than 19,000 children qualify for the services, but state and federal funds only support 13,368 children and there is a growing waiting list. OPK is modeled after and designed to work side by side with the federal Head Start program. These services are available in all 36 counties, with 21 programs receiving federal and state funds and seven programs receiving state funds only. OPK is funded entirely with General Fund. Federal Head Start funds do not flow through the state budget. They are sent directly to local providers by the federal Department of Health and Human Services. Early Head Start - The Oregon Early Head Start program provides comprehensive services to children under age three and expectant mothers living at or below the federal poverty level. The services are a critical link for children to gain necessary skills to be successful in school; to assist families in understanding the needs of their children; and to encourage families to be involved in their childs education. The Governors budget of $1.5 million General Fund will continue to fund the current program level of 59 enrollment slots. Child Care Division - The Child Care division, which was transferred from the Oregon Employment Department, promotes safe, quality and accessible child care for Oregon parents and their children. The Governors budget provides funding to continue to promote and enforce child
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care quality standards for health and safety of the children in child care facilities and makes an additional investment in order to better inform parents to make child care decisions and developing incentives for high quality child care. The programs administered by the Child Care division are primarily funded through the Federal Child Care Development Fund, much of which is transferred to the Department of Human Services to provide day care subsidies for low-income families, and other licensing and fees funds. Included in the Governors budget is $800,000 for the Early Learning division for the Pilot Prevention Health and Wellness Demonstration Project for Social Impact Financing. This project was organized to advance concrete models of service delivery and sustainable financing to ensure the healthy development of all children specifically that every Oregon child enters school ready and able to learn. The project is pioneering the development of new service delivery and financing systems to improve life-long outcomes for at-risk children and families and envisions public and private investments in comprehensive detection, intervention, education, care and support. The funding supports the start-up costs for the pilot project. Race to the Top Early Learning Challenge Grant The Governors budget anticipates funding from the U.S. Department of Education and the U.S. Department of Health and Human Services of $11.1 million federal funds.

Education Debt Service: The Debt Service program, within the Department of Education, provides debt service on lottery-backed bonds. The 1997 Legislature approved House Bill 3411; that established a lottery bond program to help meet the needs of Oregon school districts. Proceeds were intended for state education projects, which are defined in statute as projects for the acquisition, construction, improvement, remodeling, maintenance or repair of public school facilities. The legislation was subject to voter approval, which occurred with the November 4, 1997 Special Election. Bonds totaling $150 million were sold. In House Bill 2567, the 1999 Legislature authorized the issuance of an additional $127 million in lottery-backed bonds for state education projects. The estimated debt service remaining on all outstanding debt as of July 1, 2013 will be approximately $45 million. The Governors budget for debt services is $42.5 million in Lottery Funds. Education Operations: Department of Education Operations includes those functions and activities that benefit a broad range of programs. They are often are referred to as indirect costs or administration because their precise benefits to a specific project are difficult or too complex to track. Regardless, these programs provide valuable and necessary services to a wide variety of internal and external stakeholders as well as programs that support the goal of having Oregonians prepared for lifelong learning, rewarding work, and engaged citizenship. The Governors budget for Operations equals $119.7 million ($32.5 million General Fund). Costs have been reduced by $3.7 million total funds through program reductions, administrative efficiencies, and controlling PERS costs. However, new investments include funding to plan the development of a
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statewide longitudinal database reaching from early childhood through post-secondary education. The system would encourage accountability for outcomes and provide better information for policy-makers, educators, students and their families to ensure progress along the entire educational path. Investments in this program include authority to build out the data system and for facilities and equipment needs for student achievement centers. These projects would be funded through bond financing. Employment Related Day Care: The Employment Related Day Care program (ERDC) helps very low-income working families from a variety of cultural and linguistic backgrounds arrange and pay for quality child care. ERDC provides lowincome families with the same opportunity to access quality child care as other families with higher incomes. Quality child care nurtures a childs learning and development so the child is better prepared to succeed in school. ERDC helps parents stay employed and gain self-sufficiency by assisting with the consistent, stable child care parents need to remain on the job. ERDC also supports care for children with special needs, and offers providers who come from diverse cultural backgrounds. Providers are required to register with the state and must meet a set of health and safety standards, and all are required to complete background checks. They also have access to additional training and education. Providers employed by ERDC clients are contributing members to local economies throughout the state. The Governors budget of $118.4 million total fund continues current program structure and supports over 9,000 cases, an increase from the current budget of 8,500. The program is primarily funded through Child Care and Development Block Grant that is transferred from the Child Care division, now within the Oregon Department of Education. Extension Service: The Oregon University System Extension Service within DPSE connects Oregonians to research-based knowledge through on-the-ground expertise and education. Programs include food safety, food security and hunger, childhood obesity, climate change adaptation and mitigation, and sustainable energy as well as 4-H youth development activities. Extension places faculty and other staff throughout the state in county offices and branch Agricultural Experiment Stations. Many counties assist with office space, assistance with travel and other costs, and support staff. The Governors budget includes $37.5 million General Fund to support the Extension Service. The program will attempt to provide the same number of educational contacts and engage the same number of trained and supported volunteers as achieved in the current biennium. The OUS Agricultural Experiment Station and the Forest Research Laboratory are included in Department of Post-Secondary Educations budget but reported in the Jobs and Innovation outcome area. Oregon Health and Science University Support Fund: The Oregon Health and Science University (OHSU) Support Fund within in DPSE provides state support for the OHSUs four public missions: education, clinical care, research, and statewide outreach. The university educates Oregons next generation of health care professionals and biomedical scientists; creates new knowledge; translates scientific research into therapies for disease; provides compassionate, evidence-based patient care; and improves health statewide through access and policy initiatives. OHSU
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offers professional degrees in dentistry, nursing, medicine, pharmacy, other health professions, and PhD and Masters degrees along with certificate programs in sciences. As part of the universitys outreach mission, OHSU oversees the Office of Rural Health and the Area Health Education Centers, and engages in numerous K-20 pipeline programs. The Governors budget for this program is $55.4 million General Fund. OHSU receives state funding for the Schools of Dentistry, Medicine, and Nursing; and for the Office of Rural Health and Area Health Education Centers. During fiscal year 2011, OHSU awarded 78 D.M.D degrees, 102 MDs, and 308 Bachelors degrees in Nursing. K-12 Grant-in-Aid: The Department of Education receives and administers dozens of grants through its K-12 Grant-in Aid Program. Most of these grants come from the U.S. Departments of Education and Agriculture and are distributed primarily to local education programs. However, the Department will also distribute about $84 million in state General Fund to local education programs not including the State School Fund or early childhood/youth development grants. The Governors total funds budget of $1.2 billion is 2.1 percent above the level necessary to support current programs. Grants budgeted through this program advance a number of strategies: Special Education - ODE and school districts have an obligation to ensure that students with disabilities receive a free, appropriate public education in the least restrictive environment. Special education is a broad spectrum of programs and services offered by districts and the state for the education of students with disabilities. Without programs and services, students with disabilities will not be able to meet the 40-40-20 goal and will continue to have achievement gaps when compared with their non-disabled peers. Programs and services include meeting the individual educational needs of resident students with disabilities at the district level and, also, regionally; meeting the needs of students in day and residential treatment facilities and hospitals; and providing educational services to students who are blind or visually impaired. School districts receive funds for special education primarily from the State School Fund (SSF) and federal Individuals with Disability Education Act (IDEA) funds. Regional programs receive funds from the Department of Education and IDEA funds from school districts. Long Term Care and Treatment programs, hospital education programs and state-level operations receive a mix of state General Fund, State School Fund, federal IDEA funds and other federal grants. The Blind and Visually Impaired Student fund is made up, entirely, of state General Fund. The Governors budget of $44 million General Fund for non-SSF Special Education programming is only slightly less than the level necessary to support current programs. Compensatory Education - According to the 10-Year Plan for Oregon, the most pressing issue faced by Oregon is the improvement of academic achievement rates for low-income earners, English Language Learners, special education students and students of color. Compensatory programs target high-needs students in these and other subgroups. The desired outcome is that
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these students have a fair, equal, and significant opportunity to obtain a high-quality education and reach proficiency on state academic assessments. Compensatory Education programs are funded at $364 million, almost entirely through the federal Elementary and Secondary Education Act. These are, primarily, formula grants to school districts. Teacher and Administrator Support - Investing in the development and support of effective teachers and leaders is one of the most significant strategies towards improving student achievement in which the state can engage. Consistent and significant investment in this area will yield highly qualified teachers guided by effective leaders in every school, which will translate into effective learning and improved outcomes for all students. The Governors budget includes General Fund for strategic investments in developing and supporting effective teachers and administrators. In addition, federal funds totaling $56.7 million are available to support teacher and principal quality programs. Child Nutrition - Children who are hungry are at higher risk for developmental and academic problems, frequent illness and nutritional inadequacies. A well-nourished child is ready to learn, with energy to play, exercise, and learn; better able to form social relationships; and given a solid foundation to succeed in school and in life. The Oregon Department of Educations Child Nutrition Programs address the hunger issue through the administration of federal and state funds reimbursing organizations for serving nutritious meals and snacks to eligible participants in schools and community-based programs; providing training and oversight to ensure compliance with state and federal requirements; increasing fresh fruit and vegetable consumption in low-income areas; supporting child care wellness activities related to nutrition and physical activity; supporting purchase of fresh, locally-grown products in schools; and, encouraging expansion of afterschool programs through administration of mini-grants. All of these investments support the outcome indicators: ready for school; ready to apply math and reading skills; ready for college and career training; and ready to contribute in career and community. Nearly all funding for meal reimbursements is federal (over $350 million). State funds for programs such as Farm to School, Summer Food Service and School Breakfast total about $2.8 million. Career and Technical Education - Career and Technical Education (CTE) provides high school and community college students with career-focused, industry-aligned academic and technical knowledge and skills, personalized career development, and structured pathways for seamless transitions to postsecondary education and/or to employment, industry apprenticeships and training, or the military. CTE supports Oregons overarching education outcome: Oregonians are prepared for lifelong learning, rewarding work, engaged citizenship. It relates to the following education indicators: on track to earn a diploma; ready for college and career training; and ready to contribute to career and community. These comprehensive programs support the Oregon education funding team Results: 1) investing in outcomes, 2) support & accountability, 3) support and elevate education, 4) standards & assessments, and 5) engaged communities.
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The Governors budget of $36.8 million is primarily supported by federal funds from the Carl D. Perkins Act. In addition, General Fund is budgeted for the required administrative match for Perkins allocations and for strategic investments. Miscellaneous Programs and Strategies - These programs include strategies that make education more relevant to students such as accelerated learning, the Advanced Placement Test Fee Program, and physical education grants as well as programs that ensure the safety of students such as pupil transportation, fingerprinting and background checks. Some of these activities address the following indicators: ready to apply math and reading skills; on track to earn a diploma; and ready for college and career training. The Governors budget for this program totals $13.7 million. More than half is supported by Federal Funds, primarily Carl D. Perkins career and technical education funds. The General Fund is used for physical education grants, and pupil transportation. Fingerprinting and criminal background checks are paid for by fees charged to applicants. New initiatives in the Governors budget include grants targeted at improving reading skills. These include grants for expanded opportunities for reading, and funding to expand Response to Intervention networks. Also included is funding for helping students prepare for success in the workplace by focusing on Science, Technology, Engineering, the Arts, and Mathematics (STEAM). Also included is support and intervention for middle school and high school, and funding to create models for flexibility, individualized learning, and seamless transitions. Opportunity Grants: The Oregon Opportunity Grants program within the Department of Post Secondary Education is Oregons only state-funded, need-based grant program to help low- and middle-income Oregon residents achieve academic success and become productive members of their communities and the states workforce. Opportunity Grants are awarded to Oregon residents who show financial need and attend a community college or public or private nonprofit four-year postsecondary institution. Students attending a college or university on a half-time basis are eligible for a reduced award amount. The Governors budget includes $113.4 million General Fund, $0.3 million Lottery Funds, and $0.2 million Other Funds for Opportunity Grants. With average awards anticipated to be approximately $1,800, approximately 63,000 awards will be made in the 2013-15 biennium, an increase of about 3,400 awards from 2011-13. An additional $5.5 million General Fund is included in the Opportunity Grant program as part of the Chief Education Officers Guidance and Support for Post-Secondary Aspirations initiative. The funds will be used for early college credit programs, scholarship opportunities, and other college success initiatives.

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Oregon Education Investment Board: The Oregon Education Investment Board (OEIB), chaired by the Governor, oversees the states effort to create a seamless, unified system for public education from early childhood through high school and college. The OEIB will maintain achievement compacts with all K-12 school districts, education service districts, community colleges, as well as the Oregon University System and its individual institutions, and Oregon Health and Science University. These two-way partnership agreements challenge educators across Oregon to set targets for key student outcomes and encourage broad collaboration to adopt transformational practices, polices and budget to help students achieve targeted educational outcomes. The Governors budget includes $7.2 million General Fund and 19 positions for the Board and the office of the Chief Education Officer. It includes funding for a PK-20 education research unit to provide data and analysis to inform policy and practice for the improvement of educational outcomes. It also provides funding for a statewide reading campaign as part of the Oregon Reads initiative and for convening meetings of school districts, community colleges, and four-year institutions for the development of regional achievement compacts. The OEIB and Chief Education Officer are responsible for coordinating the following PK-20 initiatives to improve student success. Funding for these initiatives is largely contained in the budgets of the Department of Education and the Department of Post-Secondary Education. OregonReads includes $9.2 million General Fund for a multi-agency initiative to improve third grade reading skills. The OEIB and the Early Learning Council will launch a statewide reading campaign focused on ensuring that parents, educators, and caregivers of young Oregonians support development of early literacy skills. The Department of Educations Response to Intervention Network, that provides mentoring and support to more than 50 Oregon districts, will be expanded to 125 districts. Grants and contracts will be awarded by the Department of Education to school districts, non-profit organizations, afterschool providers, libraries, newly created early learning hubs, or other entities that will provide expanded and individualized learning time for students who are not proficient in reading. Funding for the State Librarys library development program is increased to expand access to books, computers, and other materials in public and other libraries throughout the state. The Guidance and Support for the Post-Secondary Aspirations initiative addresses the growing gap in achievement among underserved students particularly in the areas of high school graduation and post-secondary enrollment and completion. The Governors budget includes $11.4 million for development of a culture of expectations of opportunity and success. Funds will be provided to the Department of Education for programs that identify students, grade six through 10, who are at risk of dropping out or failing, and provide them systematic, individualized monitoring and mentoring. Funding for the ASPIRE mentoring program in the newly created Department of Post-Secondary Education is increased to allow the program to serve up to 295 sites by the end of
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the 2013-15 biennium. Funding is also provided to DPSE for early college credit programs, scholarship opportunities, and other college success initiatives. The Connecting to the World of Work initiative is intended to provide students with the skills, knowledge, and experience necessary for success in the workplace by investing in science, technology, engineering, math, and the creative arts. The Governors budget includes $13.5 million for this initiative. The Department of Education budget includes funds for STEAM lab schools for students in grades six through 14, as well as formal and informal STEAM opportunities that provide hands-on, real world education programs for students from underserved populations. Funds are also provided for development of three to six models to overcome current inflexible and fragmented approaches to delivery of education in grades nine through 14. The Developing a Representative Corps of Professional Educators initiative focuses on educator recruitment, preparation, and support. The initiative funds establishment of four to six regional Student Achievement Centers, to promote excellence in teaching and learning for teachers, faculty, early education professionals, administrators, and instructional support personnel. The centers will partner with colleges and universities to improve teacher preparation programs and strengthen clinical placements. A PK-20 Professional Development Network will provide mentoring and support to new teachers and administrators, assist with curriculum and assessment development, promote professional development and training for early learning and primary grade educators, and assist districts with the implementation of continuous improvement systems for educators. The centers will be part of a statewide virtual research network that studies best practices, disseminates evidence-based models and helps schools and districts implement these models and practices at scale. The Governors budget recommends reallocation of up to $120 million currently provided to education service districts through the State School Fund formula to the new Student Achievement Centers. The Governors budget also includes the sale of $6 million in general obligation bonds for facilities and equipment needs of the centers. The OEIB is also responsible for development of a statewide longitudinal database designed to track students through the educational process and into the workforce. Oregon University System Statewide Programs: Oregon University System Statewide Programs within DPSE includes a variety of institutes, centers, and programs that address economic development, natural resource, and other issues rather than provide support for OUS students and institutions. The $37.1 million General Fund in the Governors budget is distributed as follows: Engineering and Technology Industry Council: $29 million Dispute Resolution Program: $2.4 million Oregon Solutions Program: $2.2 million Clinical Legal Education Program: $0.3 million Climate Change Research Institute: $0.3 million
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Natural Resources Institute: $0.4 million Signature Research Centers: $1 million Oregon Metals Initiative: $0.7 million Industry Partnerships: $0.6 million

These amounts do not include funding for other Oregon InC initiatives, which are included in the Oregon Business Development Department budget. Oregon Youth Conservation Corps: The Oregon Youth Conservation Corps provides conservation employment and earning opportunities for youth through environmental projects that enhance Oregon communities throughout the state. These programs serve to ensure that youth, including high school dropouts, can build their skills to meet the educational, economic and/or social expectations of their communities. The Governors budget includes $2.4 million Other Funds, $1.1 million Federal Funds, and three positions. The program anticipates continuing to serve over 900 youth in community stewardship projects during each school year and over 500 students in summer conservation programs. The program is transferred from the Department of Community Colleges and Workforce Development to the Department of Post-Secondary Education. Post-Secondary Education Debt Service: The Department of Post-Secondary Education will assume responsibility for managing the states role in supporting debt-financed projects at community colleges and public universities. Debt service on state-backed bonds sold to finance capital construction projects for community college, OUS institutions, and OHSU is included in the Department of Post-Secondary Education budget. For 2013-15, this includes $109.6 million General Fund, $38.3 million Lottery Funds, and $180.3 million total funds. This amount covers debt on previously-approved projects for which bonds will have been sold prior to the end of the 2011-13 biennium. Debt service payments on projects approved or reauthorized in 2013-15 will be deferred until the 2015-17 biennium. The states contribution to construction and maintenance of post-secondary education facilities has grown significantly over the past ten years. In the 2003-05 biennium, state debt service on community college, OUS facilities, and OHSU capital projects was $51.2 million. The Governors 10 Year Capital Investment Plan is designed to provide a sustained and consistent process for using limited capital resources to finance projects that align with the states long-term goals and outcomes and generate the highest return on investment of those resources. Post-Secondary Education Department Operations: The new Department of Post-Secondary Education (DPSE) will consolidate the states activities in supporting, coordinating, and funding post-secondary education. The new department will combine the Higher Education Coordinating Commission, the Department of Community Colleges and Workforce Development, and the Oregon Student Access Commission. In addition, state funding distributed in support of the Oregon University System and the Oregon Health and Science University will be appropriated to DPSE. Legislation introduced to align and streamline education governance and funding will create the department and make associated changes to existing boards and commissions. The
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Department will request any necessary adjustments resulting from a reorganization of these programs during the 2014 legislative session. The Department includes the Higher Education Coordinating Commission (HECC), or its successor, and Governors budget includes $1.7 million General Fund and six positions for overall agency management and direction. DPSE is directed to develop new funding formulas for distribution of support to the states public community colleges and four-year institutions that are tied to student progress and success rather than enrollment. The new formulas are to include distribution of Oregon Opportunity Grants and account for institutional student aid, with a goal of providing affordable access to students receiving the new Oregon Diploma. Private Career Schools: The Private Career Schools program was transferred to the Higher Education Coordinating Commission from the Department of Education, effective July 1, 2013 and will be incorporated into the Department of Post-Secondary Education. The program is responsible for the licensing of private businesses offering career training at the certificate level as post-secondary institutions of study. The program regulated about 240 career schools that enrolled more than 15,000 students in 2010. The budget includes $1.2 million Other Funds and Federal Funds and six positions. Included in the transfer from the Department of Education is a federally funded program to assist veterans enrolled in this educational sector. Funding for the program is contingent on a legislative proposal to increase fees. Public University Support Fund: The Public University Support Fund within DPSE is the states General Fund contribution to operation of the educational programs of the Oregon University System, its seven campuses, and one branch campus. Combined with student tuition and other revenues, the funds provide basic support to the educational institutions, governing board, central administration, and support services. The Governors budget includes $483.9 million General Fund for operation of instructional and support services to students and faculty, support for research and campus public service programs, and administrative support services. The Public University Support Fund includes state funding for OUS that has historically been distributed by the State Board of Higher Education to the campuses through the Resource Allocation Model on an enrollment basis, as well as targeted programs that fund student and institutional support. These include regional support, faculty research support, funding for the Chancellors Office, and other programs. Funding for centers, institutes, and programs addressing statewide economic development, natural resource, and other needs are included in the Department of Post-Secondary Educations OUS Statewide Programs unit. Funding for the Chancellors Office was reduced as a result of the shift of responsibility for coordination of post-secondary education to the Department of Post-Secondary Education and the Higher Education Coordinating Commission or its successor. OUS institutions will focus on making progress on outcomes and measures of progress included in achievement compacts with the Oregon Education Investment Board. Measures included in the compacts
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document student success in completing bachelors and advanced degrees, the extent to which newly admitted freshmen enter with college credits, the success of community college transfers in obtaining four-year degrees, and success of OUS graduates in the workforce. Each of the measures will be disaggregated to show progress among underrepresented populations. School for the Deaf: The Department of Education provides a comprehensive school (residential and day program) for students, ages five through 21, who are deaf and hard of hearing. The program serves about 100 students from throughout the state on a 52-acre campus located in Salem. It supports the goal of ensuring these students are prepared for lifelong learning, rewarding work and engaged citizenship. The Governors budget is $11.1 million General Fund. In addition to General Fund, the school also receives revenue from the State School Fund (based on a double-weighting of the number of students), leasing of space at the campus, reimbursements from districts for certain services to students, minor grants, and miscellaneous receipts. Federal Funds include federal Individuals with Disabilities Education Act funding and reimbursement from the U.S. Department of Agriculture for nutrition programs. The total funds budget is 1.8 percent above the level required to continue current services. State Library Development: The Library Development program of the Oregon State Library provides leadership, grants, and other assistance to public, academic, school, and tribal libraries and community leaders to improve library services. The program supports the outcome that Oregonians are prepared for lifelong learning, rewarding work, and engage citizenship. Staff provides consulting to local libraries on youth services in libraries, library technology, and statistical analysis. Grants to improve library services for children are available through this program to every legally established public library in Oregon. The 2013-15 Governors budget is primarily funded from the federal Library Services and Technology Act (LSTA). State General Fund provides the required matching funds for the LSTA grants. In addition General Fund is used to provide Ready-to-Read grants that support library programs for early literacy services to families and care providers and summer reading programs for youth. The recommended budget expands the Ready-to-Read program to include programs for 15 to 17 year olds, as a part of the Chief Education Officers Oregon Reads initiative. Only one year of budget authority ($3.4 million) is included in this budget. Allocation of the second year funds will be approved upon reorganization of the Oregon State Library, prior to June 2014. State School Fund: The State School Fund (SSF), within the Department of Education, supports the education of more than 560,000 Oregon children in kindergarten through the 12th grade by distributing 11 monthly payments annually to 197 school districts and 19 education service districts (ESDs). State General Fund and Lottery Funds provide about two-thirds of the revenue distributed through the SSF funding formula. Local property taxes make up the bulk of the remaining one-third. Together, these moneys pay for public school districts general operating expenses, student transportation costs and other specific purposes. In
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addition to the SSF revenue, public school districts also receive certain categorical grants and other revenues that, in total, add nearly 20 percent more to schools budgets. The Governors budget includes a State School Fund amount ($6.151 billion) that, together with policy changes to control PERS costs, will give schools about $90 million more than is required to continue the current level of services through 2013-15. Four and one-half percent of the formula funding is allocated to education service districts, consistent with current statutory requirements. However, in the coming biennium up to $120 million of these ESD funds are to be invested in four to six regional student achievement centers that are focused on promoting excellence in teaching and learning for teachers, faculty, childcare and other early education professionals, leaders and instructional support personnel at all levels. State Support to Community Colleges: The Community College Support Fund (CCSF), transferred to the Department of Post-Secondary Education, is the states General Fund contribution to operation of the educational and general programs of Oregons 17 community colleges. Combined with local property tax revenues and student tuition, the funds support comprehensive educational programs at the colleges, including lower division college courses, career and technical programs, basic literacy, workforce preparation, GED and adult high school diplomas, English as a second language and community enrichment. The Governors budget includes $429.0 million General Fund and $25,308 Other Funds for the CCSF. Colleges will focus on making progress on outcomes and measures of progress included in achievement compacts with the Oregon Education Investment Board. Measures in the compacts document student progress and completion at the colleges and their connections with high schools, and public four-year institutions, and their success in the workforce. Each of the measures will be disaggregated to show progress among underrepresented populations. An additional $0.7 million General Fund is included for training of community care workers. Increasing the supply of trained health care workers is critical to the success of the states health care system transformation effort. This amount will not be subject to the formula redesign. Student Access Grants and Scholarships: Oregon Student Access Commissions Scholarships and Grants programs is moved to Department of Post-Secondary Education. These programs provide financial aid that enable students, many in underserved populations, to afford to attend college and universities. Programs include Oregon Student Child Care grants, federal Chafee Education and Training Grants available to former foster youth, and over 420 private scholarships. As part of the Governors early learning initiative, delivery of services in the child care program will be coordinated by the Early Learning Division in the Department of Education to focus on improving literacy and other childhood education goals. The Governors budget includes $0.9 million General Fund and $17.3 million Other Funds. At this level of funding, approximately 200-220 students will received child care grants during the biennium. Approximately 30,000 applications are expected to various grant and scholarship programs and about 8,000 students will receive awards.
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Student Access Operations: The Oregon Student Access Commission (OSAC) Office Operations unit, transferred to the Department of Post-Secondary Education, includes general administration and operation of Opportunity Grants and other grants and scholarship programs. Staff for the ASPIRE program who were included in this program at OSAC are shifted to a separate budget unit in DPSE. The Governors budget includes $1.8 million General Fund, $2.6 million Other Funds, and 19 positions. During the 2013-15 biennium, the program anticipates receiving over 300,000 Opportunity Grant applications and making about 63,000 awards. It will work with nearly 500 donors to process about 30,000 applications for other grants and scholarship programs, making approximately 8,000 awards. The budget includes $0.2 million General Fund for the development of a business case analysis of the agencys antiquated financial aid database. The analysis will evaluate and recommend ways to improve security for the approximately 350,000 Free Application for Federal Student Aid (FAFSA) forms received annually year and to increase efficiency in providing services to students and post-secondary institutions. Depending on the results of the analysis, additional funds may be requested to improve or replace the existing system. Teacher Standards and Practices Commission: The Teacher Standards and Practices Commission ensures that public school students education is delivered by qualified and competent professional educators, that our accredited universities and colleges are held to high educator preparation standards, and that students are protected from educators who engage in misconduct. There are approximately 65,000 educators in the state licensed by the Commission and 21 public, private colleges, universities, and other entities that the Commission has approved to offer licensure preparation programs in the state. Beginning in 2012 the agency started to see a downturn in licensing activity and revenues. The agency has made several modifications to their operations to address this revenue shortfall in the 2011-13 biennium. The Governors budget for this program is $5.0 million total funds. The Teacher Standards and Practices Commission is funded by Other Funds, primarily derived from application, fingerprinting and licensing fees charged to educators and organizations offering licensure preparation programs in the state. During 2012, the agency has been able to process complete applications within 25 to 30 calendar days, which is a significant improvement from the 12 to 14 week turnaround during the summer of 2011. The Governors budget reflects the anticipated continuation of reduced revenues and takes necessary steps to allow the agency to operate within its forecasted revenues during the 2013-15 biennium. The Commission will attempt to maintain its progress in the turnaround time of applications, however it is unknown if it will be able to do so with the current revenue constraints. Youth Challenge and STARBASE: The Military Departments Community Support Program offers education, structure, and support for atrisk youth in Oregon through the Oregon Youth Challenge Program (OYCP) in Bend and the STARBASE programs in Portland and Klamath Falls. The OYCP serves 16 to 18 year old male and female dropouts who have struggled to succeed in a traditional high school environment. The program is
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Oregons only public statewide quasi-military based high school, which includes supervised work experience in community service and conservation projects. It graduates more than 200 students per year. STARBASE stands for Science and Technology Academies Reinforcing Basic Aviation and Space Exploration program. This federally funded program exposes more than 2,000 third to eighth graders per year to the fields of Science, Technology, Engineering and Mathematics (STEM) with the hopes of inspiring them to pursue a career in these fields. The Governors budget for this program is $10 million, which includes $0.2 million General Fund as well as $1.9 million in educational support for the OYCP from the Bend-LaPine School District and $7.9 million Federal Funds. The budget will fund 46 positions and will continue the program at its current level of operations. Youth Corrections Education: The Youth Corrections Education Program, within the Department of Education, exists to provide a standard education to all youth (ages 12-21) incarcerated in Oregon Youth Authority close custody correctional facilities. All programs are accredited to offer credits and high school diplomas. Approximately 580 youth are served on an average day. The Juvenile Detention Education Program provides education to youth held in county juvenile department detention centers. Approximately 209 students are served on an average day, with about 4,300 students served annually. The Governors budget for these programs comes primarily from the State School Fund and is spent as Other Funds. However, a relatively smaller amount of federal funds from the Elementary and Secondary Education Act and the Individuals with Disabilities Act is available for these programs. The total funds budget at $17.8 million, is 5.5 percent above the level necessary to support current programs. Youth Development Council: The Youth Development Council, within the Department of Education, was established in 2012 to assist the Oregon Education Investment Board in overseeing a unified system that provides services to school age children through youth 20 years of age in a manner that supports academic success, reduces criminal involvement and is integrated, measurable and accountable. The Youth Development Division with the Oregon Department of Education supports the Youth Development Council and administers programs that were previously in the Commission on Children and Families, including the Juvenile Crime Prevention and Youth Investment Title XX programs. The Council prioritizes funding for prevention and intervention services related to the reduction of gang violence and gang involvement. The Governors budget includes a $1 million General Fund investment for the use in funding statewide initiatives aimed at gang prevention and intervention. The initiative will be delivered in local jurisdictions seeking to prevent and reduce gang-related activities. Grants will be issued to support local services for gang-affected, gang involved youth. Local community partners experienced in gang prevention and intervention along with national and /or regional program models and experts will be utilized to help guarantee the success of the program. The Governors budget is $19.6 million ($8.4 million General Fund) which funds current programs with a six percent increased General Fund investment and makes the $1 million strategic investment in gang
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prevention and intervention. In addition to General Fund, these programs utilize local funding and community donations.

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Healthy People

HEALTHY PEOPLE OUTCOME AREA


10-YEAR GOAL: Oregon provides better health and better care at lower cost.
2011-13 Leg Approved Budget General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $2,996,716,787 $20,853,299 $2,262,683,706 $7,510,151,067 $3,879,579,886 $2,736,589,353 $19,406,574,098 8,455 8,350.24 2013-15 Governors Budget $3,370,886,549 $20,551,764 $2,505,695,445 $10,877,428,301 $4,112,529,561 $2,686,356,180 $23,573,117,800 8,777 8,350.30

2013-15 Budget Overview


In Oregon, we have a clear vision driving a transformation of our states health care system. By setting high standards for quality of care and supporting providers and communities in focusing on health not just sickness we can remake health care to bring better outcomes at a more sustainable cost. We are well along this path. For the first time, the 2013-15 Governors budget is based on funding the Oregon Health Plan (OHP) at a fixed, predictable rate, putting Oregon on a path to save $11 billion against future projections over the next decade. Key elements of the 2013-15 Governors budget include: Following through on agreements with the federal government to lower per member Medicaid inflation by two percentage points; Sunsetting of the 1 percent insurance premium tax implemented in 2009 to fund health care coverage for low-income children which is no longer necessary now that OHP costs are contained and sustainable; Investing $30 million for a Health System Transformation Fund to catalyze opportunities to decrease costs and improve quality and health with coordinated care models through better coordination and integration with community mental health, and addiction services, public health and long-term care; Increasing investment by $28 million in community mental health and addiction services; and Increasing investment by $30 million in services to seniors and people with disabilities.
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Outcome Area Overview


The Healthy People outcome area includes a variety of programs from the Oregon Health Authority, Department of Human Services, Oregon Housing and Community Services, Oregon Department of Veterans Affairs, and the Department of Justice. The programs provide a wide array of services to Oregonians to meet their basic needs, such as food and housing, provide health care, and provide basic support for vulnerable Oregonians. The five healthy people strategies encompassed in this plan seek to redesign and improve the systems through which public services are delivered. Fundamentally changing how health care is delivered in Oregon. Shift resources to focus on prevention of chronic disease. Ensure financial stability and adequate array of supports for the long term service system for Oregonians (both children and adults) with intellectual and other developmental disabilities. Ensure all Oregonians have access to decent housing which meets their basic needs and allows them to reach their full potential. Ensure access to sufficient, nutritious and affordable food for all Oregonians.

Recommended Budget and Key Investments


Governor Kitzhabers Healthy People budget lowers the cost of the Oregon Health Plan, eliminates a tax on insurance premiums, increases access to health care coverage to more than 200,000 low-income Oregonians with implementation of the Affordable Care Act, supports strategic investments in prevention, management of chronic disease, and community mental health and senior services. The Governors budget for Healthy People is $23.6 billion total funds and $3.4 billion General and Lottery Funds. This is a $4.2 billion increase in total funds from 2011-13 Legislatively Approved Budget. The budget addresses the following key investments: Transformed health delivery system & strategic investments. As Oregons economic recovery continues, the Oregon Health Plan remains a critical part of the safety net for our states most vulnerable children and adults. By the end of the biennium, caseload for the Oregon Health Plan with current eligibility levels is predicted to be 700,000, and approximately 200,000 more adult Oregonians will be eligible for Oregon Health Plan under the Affordable Care Act. The Governors budget invests $63 million in General Fund to increase community mental health services, to help cover malpractice coverage for essential rural health care providers and to help catalyze Coordinated Care Organizations that are taking innovative approaches that reduce overall costs and improve health by creating shared opportunity between systems including community mental health, local public health and long term care;
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Ensuring access to a transformed health care system. We all pay the cost when Oregonians do not have access to health care coverage. Medical debt that hurts families and providers, lack of care to address preventable conditions, lost productivity and cost-shifts to the private sector. Thats why Oregon has long been a leader in health reform and expanding insurance coverage to those with limited choices. The federal Affordable Care Act allows Oregon to expand coverage to more than 200,000 Oregonians through the Oregon Health Plan beginning January 1, 2014 and is included in the Governors budget as 100 percent federally funded. In addition, by covering almost 30 percent of the uninsured there will be a reduction in costs borne by private employers, families and individuals who buy insurance through the commercial market. Cost containment and sustainability through improved health. Under an unprecedented agreement with the federal government, Oregon will reduce cost growth in the Oregon Health Plan by 2 percentage points per member per year within the 2013-2015 biennium. New coordinated care organizations will be responsible for providing physical and behavioral care, improving health outcomes, while adhering to a fixed global budget. For the first time, the Oregon Health Plan expenditures will be tied to health improvement outcome measures and a fixed, sustainable rate in expenditure growth. Through the new coordinated care model that began in 2012, Oregon is on a path to meet a triple aim of better health, better care and lower costs. Sunset of the insurance premium tax. In 2009, a 1 percent insurance premium tax was implemented to fund health care coverage for low-income children. Because OHP costs are now contained and sustainable, under the Governors recommended budget, that tax is no longer necessary. Key revenue sources. The Governors budget includes a $100 million General Fund Investment in the Oregon Health Plan, $808 million in designated state health programs (DSHP) funding through the Medicaid 1115 Waiver agreement to support outcome-based innovations, $600 million through extension of current hospital provider tax, and $120 million from the tobacco master settlement agreement. Investing in Mental Health services. Improving access to community behavioral health through improved and integrated services is fundamental to transforming Oregons health care system. To that end, the Governors Budget invests $28 million in local community mental health and addiction services. In addition, the Governors budget includes the closure of Blue Mountain Recovery Center in January 2014, the closure of 90 leased mental health beds at the Portland campus of Oregon State Hospital, the closure of one geriatrics ward at the Oregon State Hospital in Salem and the opening of the Oregon State Hospital Junction City Campus in April 2015. Protecting patient safety and decreasing defensive medicine. As Oregon works to transform the health care system, we must also protect patient safety. The Governor convened a public work group to bring together representatives from the provider and legal community to create a proposal. As part of this effort, the Patient Safety Commission would be tasked with the administrative reporting functions of this proposal with a $1.6 million general fund investment. Investing in Services to People with Intellectual and Developmental Disabilities. The Governor's Recommended Budget invests almost $26 million in three strategic efforts to maximize health and well-being outcomes for adults and children with Intellectual and Developmental Disabilities and to advance the systems efficacy into the future, including
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expansion of family-to-family networks, maximizing the long-term financial sustainability of the system by preventing entry into more costly crisis and comprehensive services, employment services to increase integrated employment services for transition-age youth and for working-age adults with intellectual and developmental disabilities, and strengthening system efficiency and quality through an investment in technology and quality assurance capacity. The Governor's budget also recommends restoring $7 million to the Fairview Trust Fund and expanding the states existing partnership with the federal government to include a Medicaid "K State Plan," to enhance services within the Developmental Disabilities service system. Investing in Aging and People with Disabilities. Oregon's 65+ population is projected to grow from 502,000 to 950,000 by 2030. Currently, only about 4 percent of Oregon's 65+ population uses Medicaid-funded long term care services. In order to avoid a significant increase in demand on publicly-funded long term care supports and services as the eligible population grows, the Governors Recommended Budget makes $29 million in strategic investments in Oregon's nationally-recognized system of long term care, focusing on opportunities to maximize outcomes for consumers across the health and long term care systems. Additionally, the Governor recommends reauthorizing the nursing facility provider tax and embracing strategies that will encourage more efficient nursing facility operations and support better alignment between the long term care delivery system with the triple aim goals of better care, better health and lower costs. This includes a $675,000 general fund investment to increase staffing ratios for certified nurse assistants in nursing facilities. Improving Housing and Community Services service delivery efficiency. Oregons Housing and Community Services department administers 49 separate programs from 64 funding sources. Each has discreet compliance and reporting requirements, built largely on an outdated funding model that relied on flexible proceeds from the issuance of bonded indebtedness. This recommended budget maintains current programs and investments in the department in the first year of the biennium with the expectation that second year funding will be provided and invested based upon a new model of state governance, service delivery, and community partnership to be developed in 2013-2014.

Healthy People Programs


Page C-5 C-6 C-8 C-8 C-9 C-9 C-9 C-10 C-10 C-12 C-12 Program Addictions and Mental Health Programs Aging and Physically Disabled Programs Bond Debt Service - Housing Bond-Related Activities - Housing Capital Construction - Health Authority Capital Improvement - Health Authority Central Services - Housing Child Support, Division of Developmental Disability Programs Energy/Weatherization Programs Homeownership Stabilization Initiative
C-4

GF/LF 688.2 725.0 10.0 0.7 1.1 25.0 560.5 -

OF/FF Total funds 316.3 1,004.5 1,721.4 2,446.3 331.7 341.7 123.6 123.6 79.4 79.4 0.7 14.0 15.1 171.4 196.4 1,022.4 1,582.8 75.0 75.0 1.5 1.5
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Healthy People Programs (continued)


Page C-13 C-13 C-14 C-15 C-15 C-16 C-16 C-16 C-17 C-17 C-18 C-19 C-19 C-20 C-21 Program Industries for the Blind Medical Assistance Programs MultiFamily Housing Programs Non-Profit Homes for the Elderly Oregon Educators Benefit Board Oregon Veterans Home Program Private Health Partnerships, Office of Public Employees Benefit Board Public Health Progams Safety Net Programs Self-Sufficiency Programs Senior Citizen and Disabled Property Tax Deferral Single Family Housing Programs Talking Books/Braille Services Utility Residential Service Protection GF/LF 1,145.5 4.7 26.5 37.4 4.5 170.7 2.1 0.6 OF/FF 1.6 9,103.1 82.1 1,639.9 27.6 434.7 1,761.5 484.8 14.9 2,776.3 2.9 0.2 10.9 Total funds 1.6 10,248.6 82.1 4.7 1,639.9 27.6 461.2 1,761.5 522.1 19.4 2,947.0 5.0 0.8 10.9

Healthy People Programs


Addictions and Mental Health Programs: The Addictions and Mental Health system funds services to patients and their families with substance use disorders, mental and emotional disorders, and problem gambling disorders. Services are delivered through counties, community mental health and addiction service providers and the Oregon State Hospital system. The Governors budget begins the integration of services with the newly established Coordinated Care Organizations. Community mental health services are local treatment and intervention services for Oregonians at risk of or who have severe mental disorders such as bipolar, major depression, post-traumatic stress and schizophrenia. 106,000 children and adolescents are diagnosed with a severe emotional disorder in any year; and 157,000 adults are diagnosed with a severe mental illness in any year. The Governors budget prioritizes community mental health and addiction services with additional investments: Expands the Early Assessment and Support Alliance Program statewide, Expands supported employment to all counties providing adults the opportunity to further recovery through meaningful employment and thereby improving employment rates for adults with a serious mental illness, Establishes a telephonic service that provides access to child psychiatrists for rural communities and primary care providers, improving integration of mental health and physical health while
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providing services to reduce the amount of psychiatric prescribing for children in Child Welfare custody, Expands supported housing services and support, permitting more adults to live in an independent setting.

Alcohol and drug prevention programs provide evidence-based services to reduce the risks associated with inappropriate use of alcohol and drugs by youth and adults. Alcohol and drug treatment programs provide evidence-based services to assist people in recovering from addiction and to improve health, functioning in society, work, improve parenting and stop committing crimes. The Governors budget includes an investment in Intensive Treatment and Recovery Services program, providing outpatient addiction treatment and recovery services for vulnerable adults. It is anticipated that after January 1, 2014, many individuals currently receiving services through county based mental health programs will be covered in Medicaid and receive behavioral health services through CCOs. The estimated $45 million of funding for these services is reinvested in the Community Mental Health and Addiction Services budgets to improve access to community behavioral health through improved and integrated services fundamental to transforming Oregons health care system. This investment will support local mental health systems, while maintaining provider rates, to better provide individuals with serious and persistent mental illness with the critical community services necessary to help them live in the most integrated setting appropriate to their needs and achieve positive outcomes. State hospital and state-delivered Secure Residential Treatment are part of a continuum of care for Oregonians living with mental illness. They provide the most intensive health services in the most secure and restrictive environment. These programs work in partnership with community mental health programs to deliver the right care at the right time in the right place. The Governors budget includes opening the Oregon State Hospital Junction City Campus in April 2015, the closure of Blue Mountain Recovery Center in January 2014, the closure of 90 leased mental health beds at the Portland campus of Oregon State Hospital, and the closure of one geriatrics ward at the Oregon State Hospital in Salem. The Governors budget for this program is $1.0 billion dollars, primarily funded with General Fund, however, federal funding such as Medicaid, Center for Mental Health Services block grant and Substance Abuse Prevention Treatment grants are leveraged. Aging and People with Disabilities: The Department of Human Services Aging and People with Disabilities (APD) program assists seniors and people with disabilities of all ages to achieve well-being through opportunities for community living, employment, family support and services that promote independence, choice and dignity. APD and Area Agencies on Aging employees throughout Oregon are responsible for providing direct client services through a network of local offices. Employees also determine eligibility of aging and people with disabilities for medical programs provided through the Oregon Health Authority (OHA). APD provides services focused on supporting fundamental activities of daily living, such as bathing, dressing, mobility, cognition, eating, and personal hygiene. Long-term services ensure that the person is living in a safe and healthy environment. All services promote choice, independence, and dignity.
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Services are provided through five programs: Older Americans Act, direct financial support, in-home services, community-based services, and nursing facilities. Federal Older Americans Act funds are distributed to AAAs for service delivery through subcontractors. Nearly 400,000 Oregonians ages 60 and older receive support through programs such as family caregiver supports, medication management, nutrition via congregate and home-delivered meal programs, senior employment, legal services, and elder abuse prevention services. Direct financial support programs are designed to meet a variety of special circumstances for certain lowincome populations. These programs include cash payments for special needs including non-medical transportation, repairs of broken appliances, or for such things as adapting a homes stairs into a ramp. Other programs include Employed Persons with Disabilities Program, and Medicare buy-in programs. In-home services are the cornerstone of Oregon's community-based care system. For aging or people with physical disabilities, the ability to live at home is compromised by the need for support in regular daily living activities. For more than 25 years, Oregon has created options to meet peoples needs in their own homes. All options are funded with support of the Medicaid program through home and communitybased waivers. Oregon has been able to create cost-effective programs in peoples homes and other community settings using these waivers and spared Oregonians from the unnecessary use of much higher cost services, primarily offered in nursing facilities. Community-based services include a variety of 24-hour care settings and services to provide an alternative to nursing facilities. Services include assistance with activities of daily living, medication oversight and social activities. Services can include nursing and behavioral supports to meet complex needs. State and federal guidelines related to health and safety of these facilities have to be met. Community-based facilities include adult foster homes, residential care facilities, and assisted living facilities. Institutional services for aging and people with physical disabilities are provided in nursing facilities licensed and regulated by DHS. Nursing facilities provide individuals with skilled nursing services, housing, related services and ongoing assistance with activities of daily living. Oregon's population of people 65 years or older is projected to grow from 502,000 to 950,000 by 2030. Currently, only about four percent of Oregon's 65+ population uses Medicaid-funded long term care services. In order to avoid a significant increase in demand on publicly-funded long term care supports and services as the eligible population grows, it is critical to begin implementing strategies now that support healthy aging, meet the needs of an increasingly culturally diverse population, and that prevent or delay entry into costly long term care services. To advance those objectives, the Governors budget for APD is $2.4 billion and makes strategic investments in Oregon's nationally-recognized system of long term care, focusing on opportunities to maximize outcomes for consumers across the health and long term care systems. Some of the highlights include: Enhancing the ability to serve individuals with mental illness, traumatic brain injury and dementia- related disease.
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Investing in preventative options counseling services to help all Oregonians make informed choices when long term care services are needed. Investing in care coordination services between the long term care system and Oregons coordinated care organizations to improve shared accountability for results for seniors and people with disabilities. Enhancing safety with additional adult protective services employees. Promoting innovation with dedicated funds to test ideas that improve care and improve health at lower costs. Preserving the ability to continue serving most Medicaid-funded individuals in home and community based service settings.

Additionally, the Governors budget recommends reauthorizing the nursing facility provider tax and embracing strategies that will encourage more efficient nursing facility operations and support better alignment between the long term care delivery system with the triple aim goals of better care, better health and lower costs. Bond Debt Service - Housing: Housing and Community Services Bond - Related Debt Service program repays investors and other parties the obligations owed on the outstanding debt issued by the agency to finance various loan program activities. These loan programs provide safe and affordable rental housing to low-income Oregonians, and provide opportunities for first-time homebuyers to finance their mortgages at belowmarket interest rates. The Governors budget for Bond-Related Debt Service is $341.7 million total funds, including $10 million in Lottery Funds for Lottery Bond backed debt. The budget provides the resources to pay existing debt service for the Department for the entire biennium to ensure that debt payments continue to be made on a scheduled timely basis. Bond-Related Activities - Housing: Housing and Community Services Bond - Related Activities program provides the mechanism to expend funds related to Department bond financed loan programs. The Department sells tax-exempt bonds to investors and uses the proceeds to finance multifamily and residential (single-family) mortgage loans. Investors play a key role in the success of this program. Since interest earned from these bonds is generally exempt from federal income tax, investors are willing to accept lower interest yields on these investments. This results in reduced borrowing costs, which are passed on to borrowers in the form of below-market interest rates on their loans. The Bond-Related Activities program area provides the funding mechanism that supports the objectives of all seven other programs within the Department. The Governors budget for Bond-Related Activities is $123.6 million total funds. As with all of the Departments programs, this funding level supports the continuation of existing programs for the first year of the biennium (July 2013 June 2014). The Department is expected to develop a plan to be presented to the Legislature in February 2014 making recommendations about which programs can continue to be delivered and the delivery structure of those programs. Any structural changes to OHCSs operations would be designed to ensure that the housing bond programs will continue to be administered in a fiscally
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responsible way. As the agency undertakes its planning efforts, it is instructed to coordinate closely with Oregon State Treasury to ensure continuity of compliance with all legal and fiduciary responsibilities. Capital Construction - Health Authority: The purpose of this Oregon Health Authority project is to complete the legislatively-approved direction to replace the outdated and dangerous buildings of the Oregon State Hospital (OSH). The original legislatively approved plan called for 980 beds: 620 in Salem and 360 in Junction City. In late 2010, based upon a new analysis of future need, the Oregon Health Authority (OHA) revised the need to 794 beds, downsizing the Junction City hospital to 174 beds. The 620 bed hospital in Salem completed moving patients into the new facility in March 2012. Work is underway on the site preparation and design of the second campus; the 174 bed facility in Junction City expected to be completed in 2013-15. The 794 state hospital beds are needed to meet the treatment needs of individuals with severe mental illness who cannot be safely and effectively treated in community programs and are civilly or criminally committed to the state for treatment and to maintain public safety. Funding for the operations of the OSH is in the Addictions and Mental Health program within the Oregon Health Authority. The Governors budget for this project is $79.4 million, financed through the issuance of Certificates of Participation. Capital Improvements - Health Authority: The Capital Improvements program within the Oregon Health Authority funds essential health and safety remodels or repairs for the state hospitals. Without these repairs, hospital certification and licensure can be jeopardized and patients and staff subject to less than ideal treatment environments. Although the Oregon Health Authority is constructing a new State Hospital, the Governors budget maintains funding for improvements necessary with the intention that, should these funds not be required this biennium, they would be transferred to a deferred maintenance account for future needs of the buildings. The Governors budget funds this program at $0.7 million. Central Services - Housing: The Housing and Community Services Departments Central Services program unit encompasses the administrative functions including Debt Service/Debt Management and Asset Management for the Department, and contains three separate divisions. There are two programs, Oregon Volunteers Commission for Voluntary Action and Service (Oregon Volunteers) and Court Appointed Special Advocates (CASA), which are part of the Policy, Strategy, and Community Engagement (PSCE) division. Both the Oregon Volunteer and CASA programs are volunteer-based programs that tie strongly to the community engagement model emphasized in the new agency reorganization and managed through the PSCE division. The Central Services program area provides all of the administrative and operational support to the agency to fulfill the objectives of all seven other programs. The Governors budget for these functions is $15 million total funds. Based on a cost allocation plan approved by the U.S. Department of Housing and Urban Development, all funding sources in the agency contribute revenue to support Central Services program costs. As such, the budget supports the continuation of existing programs for the first year of the biennium (July 2013 June 2014), with the expectation that a plan will be presented to the Legislature in February 2014 making recommendations
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about which programs can continue to be delivered and the delivery structure of those programs. The General Fund portion for the second year of the biennium (July 2014 June 2015) has been placed in an Emergency Board Special Purpose Appropriation. The remaining Other Funds and Federal Funds expenditures are expected to be added back for the second year, in line with the February 2014 recommendation regarding programs and program delivery. The second year Special Purpose Appropriation contains $1 million for the expected transfer of the Elderly Rental Assistance Program from the Department of Revenue to Housing. Child Support, Division of: The Department of Justices Division of Child Support administers the Oregon Child Support Program through its 12 statewide offices and 26 county district attorney offices. The program serves families who currently are or formerly were receiving Temporary Assistance for Needy Families or Medicaid, as well as families who apply directly for child support services but have not ever received public assistance. The program receives and distributes about $1 million per day in child support payments. The program also establishes and secures medical support for children in the form of additional cash support or by enforcing health insurance enrollment through parents employers. The program manages approximately 237,000 active cases, each representing a family. The Governors budget for this program is $196.4 million, which includes $25 million General Fund, $125.4 million federal matching funds and incentives, and $46.0 million primarily from child support recoveries. The budget will fund 578 positions, unchanged from the 2011-13 biennium. This budget continues the services described above and adds $14.4 million in Article XI-Q general obligation bond proceeds along with $1.6 million General Fund debt service and $27.4 million in limitation for matching Federal Funds for the start of a three-biennium project to replace the Child Support programs data system. Developmental Disability Programs: The Department of Human Services Developmental Disability program (DD) covers a lifespan of support to Oregonians with intellectual and other developmental disabilities (I/DD). DDs mission is to help individuals be fully engaged in life and, at the same time, address any critical health and safety needs. DD and Community Development Disabilities Programs (CDDP) staff provide services for more than 21,000 Oregonians with I/DD each month. Individuals eligible for services must have an intellectual or other developmental disability that significantly impedes their ability to function independently. Most individuals meet Medicaid financial eligibility requirements. Most of the services are administered under Medicaid home and community-based waivers. There are two broad program service areas, support services and comprehensive services. Support services programs are designed to provide in-home and community supports for a child or adult with I/DD. Supports are things such as respite care, daily staff support and access to assistive devices and equipment. When families are supported to provide the core care, even individuals with the most significant needs have active and engaged lives in their communities. Support services are designed to partner with families or other already existing supports, relying on the continuing existence of those supports and filling in the gaps of care and needs with public-funded
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services. Services may also include in-home staffing, behavioral specialists, job support or community access and equipment. All support services programs are designed to be self-directed, which means the individual and their family identify the type of service, the amount of service and who provides it with a certain fixed amount of funds available to purchase those services. The individual or their family directly hire or contract with providers. For both children and adults, support services are provided through personal support workers, certified provider agencies, general community businesses, behavior consultants, and respite providers. Comprehensive services are for individuals with the highest level of care needs and those who can no longer remain at home. These services are 24-hour supports, mostly provided in settings outside the family home such as group homes, supported apartments or foster care. Of the 21,000 individuals enrolled in services, 7,000 are living in 24-hour group homes or foster care. The State Operated Community Program (SOCP) is another component of the comprehensive service system. SOCP provides a safety net for Oregons most vulnerable, intensive, medically and behaviorally challenged individuals with developmental disabilities. SOCP provides services when no other community-based option is available for an individual with I/DD. This includes people with developmental disabilities coming out of the Oregon State Hospital, correctional systems, and from crisis situations where counties and private providers cannot meet the needs of the individual to ensure their health and safety. Within comprehensive service, there are also services ancillary to the residential programs. Most adults get day services at 20 - 25 hours a week for out of home activities, including work related services. NonMedical Transportation is also provided to help individuals with I/DD when public transportation is not available or not feasible to help individuals participate in employment or other services. DD, service advocates and the DHS stakeholder community have identified that individuals who are engaged in employment have better health and social outcomes. There are over 21,000 Oregonians with developmental disabilities receiving services, and the number of eligible individuals with developmental disabilities requesting services is increasing. The state, counties, brokerages, providers, families and self-advocates are all critical pieces of Oregon's developmental disabilities service system focused on individuals with intellectual and developmental disabilities living in the community and having the best possible quality of life at any age. The Governor's budget for DD is $1.6 billion and focuses on three strategic efforts to maximize health and well-being outcomes for adults and children with I/DD: Expanding family-to-family networks and investing in in-home services to maximize the longterm financial sustainability of the system by preventing entry into more costly crisis and comprehensive services. Investing in employment services to increase integrated employment opportunities for transitionaged youth and for working-age adults with developmental disabilities. These efforts depend on strong partnerships across the DD system, schools, and Vocational Rehabilitation services. Strengthening system efficiency and quality through investment in technology and quality assurance capacity.

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The Governor's budget also recommends restoring the Fairview Trust Fund and leveraging additional federal resources for Developmental Disability programs through the Medicaid "K State Plan" option. Energy/Weatherization Programs: Housings Energy and Weatherization programs mitigate high energy costs, address health and safety risks, and improve energy efficiency in the homes of low-income Oregonians. Services include utility bill payment assistance, health and safety improvements, heating system repair and replacement, energy conservation services, base load measures (including replacement of inefficient appliances and lighting), and energy conservation education. These programs ensure access to decent housing. This is achieved by helping households maintain lifesaving utility services, addressing home health and safety issues, as well as tackling high home energy costs among low-income Oregonians. Between 2007 and 2011, between 74,600 and 115,535 total households were served by these various programs in some cases restoring utility service to helping forestall utility service from being discontinued. The Governors budget for the program is $75 million total funds, the majority of which are received from the U.S. Department of Health and Human Services, the U.S. Department of Energy, and the Bonneville Power Administration. A portion of the public purpose charge, paid for by Portland General Electric and Pacific Power ratepayers also provides funding for these programs. This funding level supports the continuation of existing programs for the first year of the biennium (July 2013 June 2014), with the expectation that the Department will work to develop a plan to be presented to the Legislature in February 2014 making recommendations about which programs can continue to be delivered and the delivery structure of those programs. The Other Funds and Federal Funds expenditures are expected to be added back for the second year, in line with the February 2014 recommendation regarding programs and program delivery. Oregon Homeownership Stabilization Initiative: The Oregon Homeownership Stabilization Initiative is a foreclosure prevention program that assists atrisk homeowners to avoid foreclosure through a number of programs, which include the Mortgage Payment Assistance Program, the Loan Preservation Assistance Program, and the Loan Refinancing Assistance Pilot Program. The program is known nationally as the Hardest Hit Fund program. The overall goal of the Hardest Hit Fund program is to stabilize the housing market through foreclosure prevention activities. As with all the programs at the Department of Housing, the Homeownership Stabilization Initiative ensures access to decent housing. This is achieved by providing assistance necessary for Oregonians to prevent foreclosure and retain their homes. To date, 4,500 homeowners have been served, and over the course of the program, an anticipated 13,000 homeowners are estimated to receive assistance. The Governors budget for the initiative is $1.5 million total funds all of which are provided by the Troubled Asset Relief Program (TARP) resources from the U.S. Department of Treasury. Oregon is one of eighteen states awarded funds because of the severe impacts suffered during the current economic recession. Oregon received a $220 million award in 2010, and must expend all of these resources by 2017.
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This funding level also provides funding for the first year of the biennium. The remaining Federal Funds expenditures are expected to be added back for the second year, in line with the February 2014 recommendation regarding programs and program delivery. Industries for the Blind: The Industries for the Blind (OIB) within the Commission for the Blind operates a program that specializes in serving clients who are both developmentally disabled and blind. Clients are placed in the community through supported employment programs. Individuals in the program perform a number of assembly and packaging jobs. They are paid a piece rate for the work they do. The program also operates a snack bar at a Multnomah County building where individuals in the program work. The outcome goal for the program is to maintain the basic health and safety of individuals with intellectual and other developmental disabilities. The Governors budget of $1.6 million will serve 61 clients. Clients will have annual earnings averaging $1,220. The cost of the program is funded by Multnomah County Disability Services and Clackamas Community Health Division in coordination with the Oregon Department of Human Services. In addition, businesses that contract for assembly and packaging services provide funding for client earnings. Medical Assistance Programs: Medical Assistance Programs within the Oregon Health Authority administer a number of programs to provide comprehensive health coverage to low-income Oregonians, primarily through the Oregon Health Plan and Childrens Health Insurance Program (also known as Healthy Kids). Medical Assistance Programs currently provides health coverage to over 650,000 Oregonians. Maintaining current eligibility levels and with the implementation of the Affordable Care Act and investments in the Governors budget, more than 900,000 Oregonians will receive health coverage through these programs. In the Governors budget, these Oregonians have access to an improved coordinated health care system through Coordinated Care Organizations. The Governors budget for 2013-2015 reflects that for the first time, expenditures of the Oregon Health Plan will be tied to health improvement outcome measures and a fixed, sustainable rate in per member cost growth. Through the new coordinated care model that began in 2012, Oregon is on a path to meet a triple aim of better health, better care and lower costs. Under an unprecedented agreement with the federal government, Oregon will reduce cost growth in the Oregon Health Plan by two percentage points per member per year within the 2013-2015 biennium. New Coordinated Care Organizations will be responsible for providing physical and behavioral care and improving health outcomes, while adhering to a fixed global budget. The Governors budget for these programs is $10.2 billion total funds of which $1.1 billion is General Fund. Key General Fund investments include: $30 million for a Health System Transformation Fund to help catalyze Coordinated Care Organizations who are taking innovative approaches that reduce overall costs and improve health by creating shared opportunity between systems including community mental health, local public health and long term care.
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$4.6 million to help cover malpractice coverage for essential rural health care providers. $1.6 million to the Patient Safety Commission. The Governor convened a public work group to bring together representatives from the provider and legal community to create a proposal based on the following principles: o Improve the practice environment to allow physicians to learn from medical errors and improve patient safety; o More effectively compensate individuals who are injured as a result of medical errors; and, o Reduce the collateral costs associated with the medical liability system including costs associated with insurance administration, litigation, and defensive medicine. As part of this effort, the Patient Safety Commission would be tasked with the administrative reporting functions of this proposal. With a $1.6 million General Fund investment, the Patient Safety Commission will have the funding necessary to fulfill this function. The Patient Safety Commission has been a trusted, efficient and effective organization that has been successful with confidential safety reporting of hospitals, ambulatory surgery centers and nursing facilities since its inception in 2003.

In addition to the General Fund and federal matching funds, the Governors budget utilizes $120 million of tobacco master settlement agreement funding, $808 million of Designated State Health Plan funding through the Medicaid 1115 Waiver agreement to support outcome-based innovations, and extends the current hospital provider tax. The Governors budget sunsets the one percent insurance premium tax, which was implemented in 2009 to fund health care coverage to low-income children; this funding is no longer needed. Multifamily Housing Programs: The Multifamily Rental Housing programs within Housing and Community Services (OHCS) provide financing for a continuum of housing options for low-income and fragile Oregonians. This includes grants and loans to enable the development of new housing units, rehabilitation of existing housing units, and preservation of affordable housing projects with project-based Section 8 and Rural Development rental subsidies, and administration of HUD rental assistance contracts with private owners. These programs help to ensure access to decent housing. This is achieved by increasing the availability of affordable rental housing and ensuring existing affordable rental housing stock is safe and decentas well as reducing the housing burden for qualified tenants. Through the allocation of Low Income Housing Tax Credits, low-interest loan programs, grants, and tax incentives, the Department works in cooperation with local partners to provide resources necessary to successfully develop and preserve affordable housing throughout Oregon. From 2005 to 2011, between 812 and 2,140 units of housing were developed or rehabilitated under this program. The competitive process for awarding funds to multifamily development projects is undergoing significant changes. These changes are being designed to give greater deference to local and regional housing priorities, to improve transparency and accountability, and to lessen the costs borne by both applicants and the department in the application process. The Governors budget for the program is $82.1 million total funds primarily from the U.S. Department of Housing and Urban Development. This funding level supports the continuation of existing programs for the first year of the biennium (July 2013 June 2014), with the expectation that the Department will
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work to develop a plan to be presented to the Legislature in February 2014 making recommendations about which programs can continue to be delivered and the delivery structure of those programs. The Other Funds and Federal Funds expenditures are expected to be added back for the second year, in line with the February 2014 recommendation regarding programs and program delivery. Any structural changes to OHCSs operations would be designed to ensure that the housing bond programs will continue to be administered in a fiscally responsible way. As the agency undertakes its planning efforts, it is instructed to coordinate closely with Oregon State Treasury to ensure continuity of compliance with all legal and fiduciary responsibilities. Non-Profit Homes for the Elderly: The Non-Profit Homes for the Elderly program (NPH) within the Department of Revenue is a state funded property tax exemption. It is granted to private non-profit corporations that provide permanent housing; recreational and social facilities; and care to elderly persons. The state reimburses counties for this statutory exemption and the value of the exemption is passed on to the individual residents in the form of a rent credit. The Governors budget includes $3.7 million to make property tax payments in 19 counties for 50 eligible non-profit homes each year. The Elderly Rental Assistance program (ERA) is a state funded rental assistance program. ERA provides rental assistance to people 58 years old and older with certain income levels, and who paid more than 20 percent of their income for rent. Payment is made once a year, and is intended to pay a portion of one months rent. The Governors budget for 2013-15 transfers the ERA program to the Oregon Housing and Community Services agency during the second year of the biennium. First year funding of $1 million will provide assistance to nearly 3,000 elderly Oregonians, helping them afford decent rental housing. Oregon Educators Benefit Board: Within the Oregon Health Authority, the Oregon Educators Benefit Board (OEBB) provides value-added medical, dental, vision and disability benefit plans for more than 146,000 members (employees, early retirees, and their family members) in 237 educational entities located throughout Oregon including school districts, education service districts, community colleges, and some charter schools. OEBB seeks to provide high-quality benefits and works collaboratively with members, educational entities and insurance carriers to offer value-added benefit plans that support improvement in members health while holding carriers accountable for outcomes. The Governors budget for this program is $1.6 billion. The Oregon Educators Benefit Board is funded by Other Funds from the collection of premiums which include an assessment to cover the agency administration expense. To achieve better health at lower costs, OEBB offers and encourages the use of medical homes and organized systems of care. The program will begin focusing on expanding opportunities for Oregons educational entities, including schools, education service districts and community colleges, to provide wellness activities and programs for employees and their families.

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Oregon Veterans Home Program: The Oregon Veterans Home Program opened for business in November 1997. This is a 151-bed facility in The Dalles, providing skilled nursing care and Alzheimers disease care. The Department contracts out the facility's operation. The home had 140 residents as of June 2012. Through our nations promise to care for its veterans, the Oregon Veterans Home offers a veteran benefit that not only costs significantly less than other private nursing care facilities or in-home care arrangements where significant care is required, but also employs federal benefit dollars to flow into Oregon through reimbursement for cost of care, VA healthcare, and grants to facilitate safety and health upgrades to the Home. The Governors budget for the Veterans Home is $27.6 and maintains the program for the 2013-15 biennium. Private Health Partnerships, Office of: Within the Oregon Health Authority, the Office of Private Health Partnerships administers programs that work to break down barriers to health care access, assist with health care costs, preserve the participation of insurers in the Childrens insurance market, and educate program members and the general public about the changes in the health care system that affect them. These programs offer consumer health plan coverage through the commercial insurance market and provide premium assistance to eligible individuals. The Office of Private Health Partnerships provides access to health insurance coverage for approximately 26,000 Oregonians and approximately 85 percent of its members do not qualify for other state health programs. The Governors budget for this program is $461.2 million total funds. The Office of Private Health Partnerships is funded by a combination of General Fund, the final three months of Insurers Tax, enrollee premiums, assessments on licensed Oregon commercial health insurers, and matching Federal Funds. The Governors budget reflects the scheduled September 2013 sunset of the Insurers Tax, as well as the phasing out of the Family Health Insurance Assistance Program, Oregon Medical Insurance Pool, and Federal Medical Insurance Pool in anticipation of the Federal Affordable Care Act in January 2014. Additionally, the budget assumes that the Affordable Care Act will drive a large increase in the enrollment to the Healthy Kids Connect program which provides subsidies to children up to 19 years of age and between 200 percent and 301 percent federal poverty level. Public Employees Benefit Board: Within the Oregon Health Authority, the Public Employees Benefit Board designs, contracts, and administers the medical, dental, vision, life, accident, disability, long term care insurance, and flexible spending accounts for state employees and their dependents. The Public Employees Benefit Board seeks optimal health for its members through a system of care that is patient-centered, focused on wellness, coordinated, efficient, effective, accessible, and accountable. The system emphasizes the relationship among patients and providers, their community and primary care. For fiscal year 2012, the Public Employees Benefit Board provided medical coverage for roughly 47,000 active employees.
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The Governors budget for this program is $1.8 billion total funds. The Public Employees Benefit Board is funded by Other Funds from premiums charged to agencies, universities and self pay members. Public Health Programs: Within the Oregon Health Authority, the Public Health divisions mission is to promote health and prevent the leading causes of death, disease, and injury in Oregon. The division supports the local delivery of preventative health services and protects Oregonians from both acute and chronic health effects of environmental hazards. It supports state and local public health programs to control communicable diseases, identifies metabolic disorders in newborn infants and oversees the quality of testing in the states clinical and environmental laboratories. The Public Health Division also includes the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program, that provides vouchers for healthy foods for pregnant women, postpartum women, and children under age five years in 104 clinic locations across Oregon. The Governors budget for this program is $522.1 million total funds. The Public Health division receives its funding from a mix of General Fund, Federal Funds and Other Funds. Federal Funds include Medicaid and over 120 grants, which are categorically dedicated to Public Health Programs. Other Funds revenue sources include fees for activities, licensing of facilities, registration and testing of X-ray equipment, testing and certification of Emergency Medical Technicians, registration of medical marijuana card holders/growers, fees for issuing certified copies of vital records, and statutorily dedicated funds to the Tobacco User Reduction Account. The WIC program is primarily funded with Federal Funds and Other Funds; however it does receive General Fund for its required matching. The Public Health family planning program has served more than 100,000 clients per year for each of the past five years. During 2011, Oregon WIC served 51 percent of women who gave birth in Oregon and 61 percent of women giving birth in rural counties. Oregon leads the nation in the number of mothers who begin breastfeeding (91 percent in Oregon vs. 62 percent nationally) and continue to nurse at six months and beyond (43 percent in Oregon vs. 27 percent nationally). Additionally, as a result of tobacco prevention and education efforts, cigarette consumption in Oregon has declined from 92 packs per capita in 1996 to 47 packs per capita in 2011. Safety Net Programs: Housing and Community Services Safety Net Programs comprise a continuum of services intended to help individuals stabilize their housing, as well as achieve greater economic stability and self-sufficiency. Services include providing access to healthy food, emergency housing, rental assistance and other homeless prevention activities. The Departments Safety Net programs help to ensure that all Oregonians have access to decent housing which meets their basic needs and allows them to reach their full potential, and work to ensure Oregonians access to sufficient, nutritious and affordable food. The Safety Net programs provide services that assist vulnerable households to stabilize - moving as many as possible toward greater and sustainable self-sufficiency. Between 2007 and 2012, the number of homeless persons exiting Safety Net programs into permanent housing has ranged between 77 percent and 83 percent. During the same time period
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between 700,277 and 1,022,900 emergency food boxes have been distributed and between 675 and 1,650 families have received rental assistance. The Governors budget for the program is $19.4 million total funds. $4.5 million is received from the General Fund, the remaining revenues are derived from a variety of sources including state document recording fees, the U.S. Department of Agriculture, the U.S. Department of Health and Human Services and the U.S. Housing and Urban Development Department. The Department is at a critical juncture, facing serious fiscal challenges that need to be addressed immediately. The Department has long used a unique source of revenue (cash distributions from its housing bond indentures), but that source is quickly diminishing. This funding level supports the continuation of existing programs for the first year of the biennium (July 2013 June 2014), with the expectation that the Department will work to develop a plan to be presented to the Legislature in February 2014 making recommendations about which programs can continue to be delivered and the delivery structure of those programs. The General Fund portion for the second year of the biennium (July 2014 June 2015) has been placed in an Emergency Board Special Purpose Appropriation. The remaining Other Funds and Federal Funds expenditures are expected to be added back for the second year, in line with the February 2014 recommendation regarding programs and program delivery. Self-Sufficiency Programs: Within the Department of Human Services (DHS) there are two self sufficiency programs related to the Healthy people outcome area. The first program, Supplemental Nutrition Assistance Program (SNAP), is a federally funded food benefit program. SNAP provides supplemental food benefit dollars to low-income families, seniors, single adults, persons with disabilities, and children to help purchase food to meet their nutritional needs. Currently, one in five Oregonians receive these benefits. Benefits to clients are 100 percent federally funded; the administration of the program requires a 50 percent state match. SNAP has been an important and constantly growing anti-poverty program. Recent research has shown that SNAP benefits reduce the depth and severity of poverty, and have a particularly strong effect on reducing the depth and severity of child poverty. SNAP provides access to nutritious foods to struggling households as well as an important economic boost. The Governors budget for SNAP is entirely federally funded, and $2,514.3 million is directly passed through in benefits to SNAP clients. The second program, Self Sufficiency Program Delivery and Design provides oversight, planning, reporting, implementation, training, eligibility and benefit issuance for programs that support a diverse, low-income population in need of economic supports and self-sufficiency services to meet their basic needs. The program provides eligibility determination and support for the following programs: Temporary Assistance to Needy Families (TANF) provides cash assistance, job preparation services and community connections to low-income families with children while they strive to self-sufficiency. TANF Jobs Opportunity and Basic Skills (JOBS) program is an employment and training program.
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Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps, helps lowincome families buy healthy foods to meet their nutritional needs. Employment Related Day Care (ERDC) helps low-income, working families with quality child care. Family Support and Connections (FS&C) provides local advocates who work with families to help them overcome parenting challenges to create family stability and prevent Child Welfare involvement. Temporary Assistance for Domestic Violence Survivors (TA-DVS) which provides up to $1,200 to help pregnant women and families flee or stay free from domestic violence. Refugee Services support the successful resettlement of families in the U.S. who are fleeing persecution in their countries of origin. Oregon Health Plan and Medicaid eligibility determination to connect Oregonians who qualify for subsidized medical coverage with the appropriate program.

The last economic recession triggered a dramatic increase in demand for services which include food and cash assistance, and other programs that enhance employability and support job retention among clients. The Governors budget continues efforts, started in 2007-09, to transform the process for enrolling people and delivering services in eligibility programs including SNAP, TANF, Medicaid and ERDC. It also expands and focuses efforts for 2013-15 in the areas of business service, service delivery transformation and the connectivity and dependency between them. The budget supports technology needs and business transformation, supporting a business architecture scalable for future needs. The resulting system will create consistency in service delivery and maximize economies of scale for clients across the state. Seamless data access and data sharing will lead to positive outcomes, including greater efficiency for caseworkers, and better assistance to those DHS serves. This effort is closely linked with the implementation of the Health Insurance Exchange data system project at the Oregon Health Authority. The Governors budget for this program is $432.7 million total funds. The program is able to leverage General Fund with federal funding from Medicaid and SNAP Administration funding. Senior Citizen and Disabled Property Tax Deferral: The Senior Citizens Property Tax deferral, the Senior Citizens Special Assessment Deferral, and the Disabled Citizens Property Tax Deferral Programs within the Department of Revenue pay the property taxes and special property assessments for qualified senior and disabled citizens in exchange for a lien against the property in the amount of the deferred taxes. The deferred taxes are repaid when either the participant no longer lives in their home, sells the home, or the participant dies. The Governors budget for 2013-15 anticipates $33.8 million in property tax payments to counties. This amount will be supported by repayments from participants during the biennium. Single Family Housing Programs: The Single Family Housing programs within Housing and Community Services (OCHS) provide financing and related services to increase homeownership, support housing retention, and stabilize residential neighborhoods. These objectives are achieved by offering affordable, below market rate
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residential loans to qualified first time homebuyers. The Residential Loan program is currently financed with proceeds from the sale of tax-exempt bonds to investors. The success of new loan production in taxexempt bond financed programs is largely affected by general economic conditions and current financial markets. At the present time, the extraordinarily low mortgage interest rates have virtually eliminated the rate advantage that the Departments tax-exempt financing programs have to offer. As a consequence, OHCS is originating fewer mortgages and its portfolio size is declining. In addition to residential loans, the Department also offers an array of services to assist low-income Oregonians with affordable homeownership access and retention. A combination of state and federal funding is used to deliver down payment assistance programs, homebuyer education and foreclosure avoidance counseling for low-income households. Senate Bill 1552 (2012) is the latest program authorized and funded by the Legislature. OHCS contracts with non-profit housing providers, local government jurisdictions, public housing authorities, and a network of non-profit organizations to deliver these programs. This program area also provides conflict resolution support for manufactured dwelling park residents and owners. Along with the Departments other programs, the Single Family Housing programs help to ensure access to decent housing. This is achieved by expanding access to decent, affordable homeownership, and by aiding housing stability through an array of foreclosure prevention and homeowner education programs. The Governors budget for these programs is $5 million total funds, 42 percent of the funding is from the General Fund. The Department also uses proceeds from housing bonds to provide the funding stream to finance residential loans, other funds are derived through the state document recording fee, manufactured dwelling assessment and park registration fees, and a national multi-bank settlement arranged through 49 States Attorneys General. Federal funding comes from the U.S. Department of Housing and Urban Development. As with all of the Departments programs, this funding level supports the continuation of existing programs for the first year of the biennium (July 2013 June 2014), including a $4.2 million enhancement to the SB 1552 (2012) mediation foreclosure program. The Department is expected to develop a plan to be presented to the Legislature in February 2014 making recommendations about which programs can continue to be delivered and the delivery structure of those programs. The General Fund portion for the second year of the biennium (July 2014 June 2015) has been placed in an Emergency Board Special Purpose Appropriation. The remaining Other Funds and Federal Funds expenditures are expected to be added back for the second year, in line with the February 2014 recommendation regarding programs and program delivery. Any structural changes to OHCSs operations would be designed to ensure that the housing bond programs will continue to be administered in a fiscally responsible way. As the agency undertakes its planning efforts, it is instructed to coordinate closely with Oregon State Treasury to ensure continuity of compliance with all legal and fiduciary responsibilities. Talking Books/Braille Services: Talking Book and Braille Services (TBABS) within the Oregon State Library provides free audio and Braille books to eligible Oregonians who are blind, visually disabled, or have other physical or reading disabilities that prevent them from using conventional printed materials. The federal Library of Congress provides the Braille books, the audio books in a specialized format, and the specialized players to play the audio books. Reading materials and playback equipment are sent to borrowers and returned to the State
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Library by postage-free mail. The State Library provides the staff to administer the program, the technology to manage the library catalog and book circulation, and the facility to house the books and equipment. The 2013-15 Governors budget is funded primarily from the General Fund (76 percent). The remainder of the funding comes from donations and earnings from an endowment fund. The program supports the outcome that Oregonians are healthy and have the best quality of life at all ages by encouraging and supporting life-long reading habits. Approximately 5,500 individuals will be served by TBABS. Only one year of budget authority ($843,376) is included in this budget. Allocation of the second year funds will be approved upon reorganization of the Oregon State Library, prior to June 2014. Utility Residential Service Protection: Established in 1987, the Residential Service Protection Fund which was created to ensure that adequate and affordable communication service is available to all Oregonians. The Public Utility Commission runs four programs within this area: Oregon Telephone Assistance Program (OTAP), the state mandated counterpart to the Federal Communication Commissions Lifeline program. This program reduces the monthly local residential or cellular phone service monthly bill as a credit or discount of $12.75 for low-income individuals who meet eligibility requirements. Oregon Telecommunications Relay Service (OTRS), required by the American with Disabilities Act of 1990. This program provides persons who are speech or hearing impaired with telecommunications access and service that is equivalent to those available to individuals without speech or hearing disabilities. Telecommunications Device Access Program (TDAP), which loans adaptive or specialized equipment to Oregonians who have a hearing, speech, mobility, cognitive or vision impairment. Emergency Medical Certificates Program (EMCP), which allows customers of Commission regulated telecommunications utilities (or electric or natural gas) to enter into a time payment arrangement to stop disconnection of service if a qualified medical professional states that it would significantly endanger the physical health of the customer or a member of the customers household.

The Residential Service Protection Fund ensures financial stability and an adequate array of supports for Oregonians (both children and adults) with intellectual and other developmental disabilities, ensuring all Oregonians have access to adequate and affordable telephone service. Since 2001-03, the number of customers has steadily increased from 37,395 to 89,633 in 2011-13. The OTAP and TDAP programs alone provided benefits to approximately 65,000 customers in 2011-13. In addition to the OTAP and TDAP benefits, the Commission reimbursed the OTRS provider for relaying 1.2 million conversation minutes in fiscal year 2011. The Governors budget for the Residential Service Protection Fund is $10.9 million total funds. The revenue is derived from a $0.12 surcharge assessed against each paying retail subscriber who has a telephone or cellular service with access to the OTRS. Each month, the surcharge is assessed on
2013-15 Governor's Balanced Budget C-21 Healthy People Outcome Area

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approximately 4.3 million customers of landline and wireless services. The budget provides the resources necessary to continue providing support to an expected six percent increase in customers in 2013-15.

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SAFETY OUTCOME AREA


10-YEAR GOAL: Oregonians are safe and secure.
2011-13 Leg Approved Budget General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $2,227,929,574 $0 $1,492,959,544 $843,108,192 $281,180,300 $1,262,827 $4,846,441,137 13,966 13,496.87 2013-15 Governors Budget $2,466,691,642 $0 $1,535,539,272 $858,378,746 $284,544,469 $1,262,827 $5,146,416,956 14,179 13,824.57

2013-15 Budget Overview


The Governors balanced budget recognizes that citizens, regardless of social status or economic condition, deserve the security of knowing that their personal and financial safety is protected by sustainable investment in public safety services, including corrections, child protective services and consumer protection. Oregon has grown its prison system from 3,120 beds 30 years ago to 14,300 today. Crime rates in Oregon have been falling for the last decade and are at historical lows, but the state is on track to build 2,000 more beds over the next ten years at a cost of over $600 million. This budget pursues opportunities to keep people safe and reduce victimization while holding offenders accountable in more cost effective ways. It eliminates the need to construct and operate new prisons by pursuing public safety reforms and investments in proven crime prevention, reformation, community corrections and re-entry strategies. The budget also incorporates state safety programs beyond traditional corrections programs. It recognizes that public safety is not solely focused on crime and reducing criminal behavior and victimization but also includes protecting citizens from financial abuse, fraud, and deception and the safety of vulnerable citizens at home and in licensed-care settings. Key elements of the 2013-15 Governors budget for Safety include: Holding prison population flat and looking to the Commission on Public Safety to recommend policy changes that can reinvest savings into front-end services that reduce victimization and protect public safety.
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Reinvesting $32 million General Fund for community corrections to provide front end services that reduce victimization and incentivize counties to maintain prison populations at 2011-13 levels. Investing $8.9 million General Fund for drug courts, which are intensive interventions designed to reduce recidivism and substance abuse among nonviolent, substance-abusing offenders. Investing $23.6 million General Fund to implement a new, "differential response" model of intervention with families involved with child protective services, avoiding placement in foster care by supporting families to safely parent their children at home.

Outcome Area Overview


This outcome area consists of 88 programs administered across 33 separate state agencies. The services provided in this area include traditional public safety programs that focus on preventing or prosecuting criminal activity and the punishment of criminal convictions once they occur. This includes policing Oregons highways and environments, maintaining armories for military personnel, supporting courts and criminal justice partners, securing inmates or juvenile offenders, and providing rehabilitation where appropriate. In addition to the traditional public safety functions listed above, the Safety outcome area also includes programs providing financial and occupational safety for all Oregonians and ensuring the safety of vulnerable populations. Providing for the safety of vulnerable populations includes child welfare and foster care programs, which comprise a significant portion of the Safety outcome area. Finally, the area includes transportation programs that maintain the safety of Oregons roads and other transportation modalities. Holding adult criminals accountable for their actions is the primary responsibility of the Department of Corrections, which houses and secures criminal offenders sentenced to a year or more of incarceration. While the criminal offenders are within its custody, the Department operates work programs to occupy offenders time and is responsible for all medical, dental and behavioral health care. The Department also distributes community corrections grants to counties to fund supervision and treatment services for those on probation and post-prison supervision. Juvenile criminal offenders are managed by the Oregon Youth Authority, which provides secure housing and treatment for youth offenders sentenced to one of 750 close custody placements. A primary focus of the Oregon Youth Authority is rehabilitation to assist young offenders with life skills that will help them avoid future criminal activity. The agency also funds residential placements and foster care for offenders not needing a secure closed custody placement. The agency provides probation and parole services for juvenile offenders in the community. Patrolling Oregons highways is the responsibility of the Department of State Police, which provides an array of law enforcement and criminal justice services in conjunction with local law enforcement agencies. In addition to patrolling Oregons highways, the Department enforces fish and wildlife and other environmental laws aimed at maximizing the enjoyment and productivity of Oregons natural resources. The Department also provides crime lab, medical examiner, and information systems that benefit all criminal justice partners.
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Safety Outcome Area

The Safety outcome area also includes programs responsible for accepting and caring for children who cannot remain safely with their parents. When an allegation of child abuse or neglect is reported, the DHS sends specially trained workers to conduct a comprehensive safety assessment to determine if the child is safe and if abuse happened. Depending on the results of the assessment, the Department will provide social supports for the family to maintain a successful home placement. In some cases, a court will direct the Department to take legal custody. Services are delivered through DHS staff or contracts that require linguistic and culturally appropriate services. Finally, the Safety outcome area also includes a large number of programs designed to protect the safety of Oregonians in the workplace, their financial transactions and a variety of other professional situations. Agencies such as the Department of Consumer and Business Services provide regulatory oversight of banking transactions and workplace safety requirements. Professional licensing boards enforce standards of practice within medical and professional environments. Compliance with these regulatory frameworks provides certainty for our citizens that they will be treated fairly and safely as they go about their daily lives.

Recommended Budget and Key Investments


The Governors balanced budget for the Safety outcome area equals $5,147 million total funds and includes $2,467 million General Fund. General Fund growth from the 2011-13 Legislatively Approved Budget is 10.7 percent. Key investments in the 2013-15 Governors budget for Safety include: Reinvesting in local crime reduction and victims services. The Governors balanced budget invests $32 million General Fund for reinvestment in community corrections to provide front end services that reduce victimization and incent counties to maintain prison populations at 2011-13 levels. Holding the prison population flat saves $35.6 million General Fund in 2013-15, with savings rising to $190 million by 2021-23. This budget assumes policy actions necessary to keep the prison population flat and looks to the Commission on Public Safety to recommend policy changes that can reinvest savings into front-end services that reduce victimization and protect public safety. Drug Courts. The Governors balanced budget invests $8.9 million General Fund for drug courts. Participation with a Drug Court increases and offenders likelihood of success through intense judicially supervised treatment, mandatory drug testing, and community supervision. While Drug Courts are an important part of maintaining public safety, they were funded with one-time federal money in 2011-13. The Governors budget maintains them at current levels. Differential Response. The Governors balanced budget invests $23.6 million General Fund to implement a new, "differential response" model of intervention with families. Differential response continues community-based investments in programs and services started by the 2011 Legislature in the Strengthening, Preserving and Reunifying Families legislation. These strategic efforts refocus the service continuum to ensure safety while also focusing on child well-being, family stability and, when possible, avoiding placement in foster care by supporting families to safely parent their children at home. Maintain Core Services in the Protection of People. The Governors balanced budget funds other critical services in the Safety area at their current levels. Functions that are maintained include
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services at the Department of Consumer and Business Services that protect workplace and professional transactions, and other regulatory agencies that ensure fair and safe services are delivered to Oregon citizens. Traditional law enforcement services within the Oregon State Police and the Oregon Youth Authority are also maintained. Defense of Tobacco Master Settlement Agreement. The Governors budget invests $3.0 million into the Department of Justice to defend the Tobacco Master Settlement Agreement. Each year the State of Oregon receives about $77 million from tobacco companies, which the Governors budget invests in healthy people programs. The Department of Justice is responsible for ensuring the revenue stream continues into the future. Critical Security and Maintenance Needs at Adult and Youth Correctional Institutions. The Governors budget includes $10 million of bond proceeds to address critical infrastructure needs at the Department of Corrections and the Oregon Youth Authority. These investments address life and safety needs and deferred maintenance costs at those facilities. Military Department Armory Upgrades. The Governors budget adds $7.4 million in bond proceeds for additions and alterations to extend the useful life of three armories in Roseburg, Grants Pass and Portland.

Safety Outcome Area Programs


Page D-6 D-7 D-7 D-8 D-8 D-8 D-9 D-9 D-10 D-10 D-11 D-11 D-11 D-12 D-12 D-12 D-13 D-13 D-13 Program Accountancy, Board of Adult Abuse Prevention and Investigations, Office of Appellate Aviation Search and Rescue Building Codes Child Safety Child Welfare Delivery and Design Chiropractic Examiners, Board of Civil Enforcement Civil Rights Enforcement Clinical Social Workers, Board of Community Corrections Consumer and Business Services Department Shared Services Corrections Capital Construction Corrections Capital Improvements Corrections Central Administration Corrections Debt Service Corrections General Services Crime Victims Program GF/LF 0.0 0.9 0.0 0.0 0.0 28.7 250.9 0.0 3.9 3.0 0.0 248.6 0.0 0.0 2.7 62.4 131.4 55.3 5.7 OF/FF 1.9 0.6 17.8 0.1 31.4 63.9 207.6 1.5 64.1 2.3 1.4 6.5 34.4 5.0 0.0 0.0 1.3 7.2 43.9 Total funds 1.9 1.5 17.8 0.1 31.4 92.7 458.5 1.5 68.0 5.3 1.4 255.1 34.4 5.0 2.7 62.5 132.8 62.5 49.7

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Safety Outcome Area Programs (continued)


Page D-13 D-14 D-14 D-15 D-15 D-15 D-16 D-16 D-17 D-17 D-17 D-18 D-18 D-19 D-19 D-20 D-20 D-20 D-21 D-22 D-22 D-22 D-23 D-23 D-23 D-24 D-24 D-25 D-25 D-26 D-26 D-27 D-27 D-28 D-28 D-29 D-29 D-29 Program Criminal Investigation Criminal Justice Criminal Justice Commission Sentencing, Policy, and Research Criminal Justice Standards and Training Defense of Criminal Convictions Dentistry, Board of District Attorneys Driver and Motor Vehicles Services Emergency Management Finance and Corporate Securities Regulation Fire Standards and Training Forensic Services Geologic Survey Health Licensing Agency Highway Maintenance Highway Operations Insurance Regulation Licensed Professional Counselors and Therapists, Board of Licensing and Regulatory Oversight, Office of Long Term Care Ombudsman Marine Board Law Enforcement Program Maritime Pilots Medical Board Medical Examiner Medical Imaging, Board of Military Capital Construction Military Capital Improvement Military Operations Mortuary and Cemetery Board Motor Carrier Transportation Naturopathic Medicine, Board of Nuclear Safety Program Nursing, Board of Occupational Therapy Licensing Board Offender Management and Rehabilitation Oregon Occupational Safety and Health Administration Parole and Post Prison Supervision, Board of Patrol Services GF/LF 31.0 8.4 13.7 0.0 21.5 0.0 10.4 0.0 2.1 0.0 0.0 32.9 2.6 0.0 0.0 0.0 0.0 0.0 10.5 2.0 0.0 0.0 0.0 4.2 0.0 0.0 0.0 6.7 0.0 0.0 0.0 0.0 0.0 0.0 67.3 0.0 4.0 117.5 OF/FF 6.7 20.1 7.4 16.8 0.0 2.6 0.0 168.8 241.3 18.3 4.3 2.3 9.9 7.7 454.3 123.1 23.7 1.1 14.7 0.7 14.3 0.3 10.6 0.3 0.8 8.2 4.6 116.2 1.4 64.8 0.6 2.1 14.7 0.4 9.6 46.7 0.0 11.8 Total funds 37.7 28.5 21.1 16.8 21.5 2.6 10.5 168.8 243.4 18.3 4.3 35.2 12.5 7.7 454.3 123.1 23.7 1.1 25.2 2.7 14.3 0.3 10.6 4.5 0.8 8.2 4.6 122.9 1.4 64.8 0.6 2.1 14.7 0.4 76.9 46.7 4.0 129.3

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Safety Outcome Area Programs (continued)


Page D-30 D-30 D-31 D-31 D-31 D-32 D-32 D-32 D-33 D-33 D-34 D-34 D-35 D-35 D-36 D-36 D-36 D-37 D-38 D-38 D-39 D-39 D-39 D-40 D-40 D-40 D-41 D-41 D-41 Program Permancy Planning and Post Adoption Pharmacy, Board of Prison Health Services Prison Operations Private Security and Investigators Standards and Training Psychiatric Security Review Board Psychologists Examiners, Board of Rail Real Estate Agency Self Sufficiency Family Support and Connections Speech-Language Pathology and Audiology, Board of Examiners State Fire Marshal State Police Information Services Substitute Care Tax Practitioners, Board of Transportation Capital Improvements Transportation Safety Utility Regulation Veterinary Medical Examining Board Wage and Hour Enforcement Workers' Benefit Fund Workers Compensation Accounts Workers' Compensation Board Workers' Compensation Insurance Regulation Youth Authority Capital Construction Youth Authority Capital Improvements Youth Authority Community Programs Youth Authority Debt Service Youth Authority Facility Programs GF/LF 72.6 0.0 232.3 670.6 0.0 2.0 0.0 0.0 0.0 0.3 0.0 0.0 8.7 105.7 0.0 0.0 0.0 0.0 0.0 2.5 0.0 0.0 0.0 0.0 0.0 0.7 89.1 2.0 151.6 OF/FF 76.3 5.8 6.8 9.2 2.1 0.0 1.0 62.1 7.1 4.0 0.6 21.2 14.2 94.7 1.2 3.3 32.4 97.8 0.7 5.1 193.2 1.5 21.8 40.7 5.1 0.0 39.5 0.0 9.2 Total funds 148.9 5.8 239.1 679.8 2.1 2.0 1.0 62.1 7.1 4.3 0.6 21.2 22.9 200.4 1.2 3.3 32.4 97.8 0.7 7.7 193.2 1.5 21.8 40.7 5.1 0.8 128.6 2.0 160.8

Safety Outcome Area Programs


Accountancy, Board of: The Oregon Board of Accountancy assures that approximately 8,500 certified public accountants, municipal auditors, and public accounting firms registered to practice in Oregon demonstrate and maintain professional competency to serve the needs of their clients and other users of their services. The board also evaluates the qualifications of candidates, manages the exam applications and grades, issues and renews licenses, and investigates complaints. The length of time required to investigate a complaint varies depending on the nature of the complaint; however since 2009 the Boards performance has consistently exceeded its 60 percent goal to resolve contested cases before a scheduled formal hearing.
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The Governors budget for this program is $1.9 million Other Funds. The Board is funded entirely with Other Funds revenue generated primarily by license and examination fees, sale of public information, and the assessment of civil penalities. The Governors budget for 2013-15 will support the Boards efforts to regulate a changing profession by enhancing professional competency and implementing high professional standards in licensed accountants and accounting firms. Adult Abuse Prevention and Investigations, Office of: The Office of Adult Abuse Prevention and Investigations (OAAPI) within the Department of Human Services protects the most vulnerable citizens through protective services and trainings with integrity, fairness, quality, service and cultural equity. A key goal of the program is to make sure perpetrators of abuse are held accountable for their actions through quality, timely and comprehensive reporting. The Department focuses its training to be proactive and preventative, and aimed at eliminating abuse or neglect. OAAPI conducts investigations and provides protective services in response to reported abuse and neglect of seniors and people with physical disabilities; adults with developmental disabilities or mental illness; and children receiving residential treatment services. OAAPI is inextricably linked to the outcome goal of safety for all Oregonians, and particularly for vulnerable adults and children. Individuals served through this program are at the highest risk of abuse or neglect. National research shows that more than half of people with mental illness or developmental disabilities will experience repeated physical or sexual abuse in their lifetime. Freedom from abuse is critical to benefiting from services. Through this program, victims of abuse are offered and provided protective services such as counseling, prevention and reporting. The Governors budget for the program is $1.5 million total funds. Revenue is derived from the General Fund and shared services funding. The budget makes an investment to provide additional resources for training, grant writing and quality assurance strengthening the quality of response to reports of abuse and neglect and enhancing the capacity to prevent abuse. Appellate: The Department of Justices Appellate Division represents the state in all cases that are appealed to state and federal appellate courts and in which the state is either a party or determines that it has a significant legal interest. In its work in the appellate courts, the Division strives both to advocate on the states behalf in the individual case and also to influence the court's law-announcing function in ways that serve the states long-term legal interests. Appellate division lawyers defend against suits brought by prisoners and convicted criminals challenging their convictions and their sentences. Approximately two-thirds of the divisions cases involve appeals from criminal convictions. The division has worked closely with the state courts and the Office of Public Defense Services to bring down the average length of time it takes both the defendant and the state to file a brief in a criminal case. The delay has been as long as approximately 350 days for each sides brief. The current goal is that briefs in appeals from criminal convictions be filed within 210 days. In 2011, the program was able to achieve that goal in 76 percent of cases. Clients of the divisions civil and administrative appeals felt the division satisfied customer service criteria 96 percent of the time.

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The Governors budget for this program is $17.8 million from billings to clients in other agencies and to the Defense of Criminal Convictions program within the department. The budget funds 59 positions performing the duties described above, allowing representation of the state in more than 3,500 appellate cases, of which almost 3,000 are Defense of Criminal Conviction cases. Aviation Search and Rescue: The Oregon Department of Aviation collects an annual fee of twelve dollars per year for pilot registration in Oregon. All the revenues from pilot registration fees are dedicated to the collection of those fees, and to help fund the aviation Search and Rescue Program in Oregon. The Search and Rescue program fosters a culture of disaster preparedness and resiliency to actively support Oregons citizens. The program provides partial funding for a position at the Office of Emergency Management and provides fuel reimbursement for Search and Rescue operations in Oregons counties. The Governors budget for the board is $0.1 million total funds most of which is derived from pilot registration fees. The budget supports continuing the program at its current level. Building Codes: The Building Codes division within the Department of Consumer and Business Services adopts construction codes for 13 specialty areas, licenses trade workers and businesses and oversees a statewide inspection system to protect property and building occupants. In Oregon, building codes are set and enforced at the state level to ensure a minimum level of safety in all areas of the state and a uniform regulatory environment for businesses, the general public and contractors. During 2011 the division licensed over 39,000 trade workers and issued over 178,000 permits. The Governors budget for this program is $31.4 million Other Funds. The Building Codes division receives its funding through building permits, surcharges on permit fees of local jurisdictions, licensing trade professionals, inspection fees, investment income, and civil penalties. Of the 258 cases reported to the State for enforcement during fiscal year 2011, 94 percent were resolved through informal dispute resolution. Child Safety: Within the Child Welfare System, the Child Safety program in the Department of Human Services includes the payments to local community providers who usually represent the first contact for families with the child welfare system. This is where children enter the state foster care system. This program provides protective and social services to children and families when allegations of child abuse or neglect are reported. Specially trained workers conduct comprehensive safety assessments to determine if the child is safe and if abuse happened. Services within this program are delivered through Department of Human Services contracts that require linguistic and culturally appropriate services. The Governors budget for the program is $92.7 million total funds. Revenue is derived from the General Fund and the U.S. Department of Health and Human Services. The budget makes investments in child
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safety programs for the purposes of implementing the Strengthening Preserving and Reunifying Families program and the implementation of Differential Response model in Oregon. Child Welfare Delivery and Design: Child Welfare Program delivery and design provides the personnel to administer, design and deliver child safety supports through abuse investigation, service identification and procurement, family development and reunification where possible, or alternative child safety planning when necessary. There are 1,257 child welfare caseworkers across Oregon responding to over 75,000 reports of abuse and neglect, and serving approximately 13,000 abused children annually that experience foster care. The program also finalizes approximately 800 adoptions a year, creating a permanent home for children in foster care that cannot return to their parents custody. This program is administered in the DHS central office in Salem to support field staff through technical support, policy and standards, evaluation, analysis, and parameters program areas in Child Welfare. The Governors budget invests $23.6 million General Fund, a total of $40.2 million, to implement Differential Response model. This model is a design for child welfare intervention that allows for more than one way of responding to reports of suspected child abuse or neglect. Adding Differential Response allows greater flexibility for an earlier and more collaborative process of addressing families needs. The traditional Child Protective Services is used for higher risk cases where significant state intervention is needed. Differential Response allows for a focus on engaging the family in the identification of stressors that led their children to being unsafe in the first place. This will provide a better connection for families with culturally specific community based services that may prevent future contact with the Child Welfare System. Implementation of Differential Response is expected to reduce Substitute Care caseloads by 15 percent in 10 years. The Governors budget for the program is $458.5 million total funds. Revenue is derived from the General Fund and from various resources at the U.S. Department of Health and Human Services. Chiropractic Examiners, Board of: The Board of Chiropractic Examiners regulates more than 2,700 chiropractors and chiropractic assistants through public protection, licensing, continuing education, examination, rulemaking and practice guidelines. The Board also investigates complaints and monitors disciplined licensees and works to rehabilitate them to ensure they are able to practice safely. The Board expects an 80 percent completion rate within 120 days of receiving and responding to complaints; in which the last several years have significantly improved to 90-95 percent completion rate. The Governors budget for this program is $1.5 million Other Funds, with 92 percent of its revenues coming from licensure, application and renewal fees charged to chiropractic physicians and certified chiropractic assistants. The Governors budget for 2013-15 provides additional staff and increased funding for legal costs in order to continue meeting the rising complaint workload demands and to ensure high quality chiropractic health care is provided safely to all Oregonians.

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Civil Enforcement: The Department of Justices Civil Enforcement division is generally the department's plaintiff's civil litigation arm, but also enforces select criminal laws. The division consists of five separate sections, each representing the state in seeking affirmative action or recovery of money. The division provides essential services to the public, including legal assistance to the Division of Child Support in the establishment and enforcement of child support orders, legal representation of the Department of Human Services Child Welfare Program to help protect abused and neglected children, prosecution of civil rights violations, regulation and oversight of all charities, enforcement of consumer protection laws, investigation and prosecution of Medicaid fraud, and taking legal action to recover or protect the states interest in money or real or personal property. The division recovered more than $1.1 billion for the state between 2001 and 2011. In 2011, the amount of money recovered on behalf of Oregon was more than 13 times the cost of recovering those funds. Also in 2011, the Financial Fraud/Consumer Protection Section responded to 12,495 written consumer complaints. The Governors budget for this program is $68.0 million, which includes $3.9 million General Fund, $3.2 million Federal Funds, and $60.9 million from collections and awards, billings of clients, charitable organization registration fees, and other sources. The budget will fund 213 positions accomplishing the tasks cited above and recovering a projected $270 million in collections in the 2013-15 biennium. Civil Rights Enforcement: Oregons Civil Rights division, a part of the Bureau of Labor and Industries, protects all Oregonians from unlawful discrimination, investigating allegations of civil rights violations in workplaces, career schools, housing, and public accommodations. The work of the Civil Rights division provides education, advocacy and regulatory efforts to ensure the safety, soundness and availability of markets for goods, services, financial products and labor through enforcing civil rights laws that protect Oregonians from unlawful discrimination. The division provides protections for the most vulnerable Oregonians, many of whom are: low-income; persons with disabilities; racial and sexual minorities; victims of domestic violence, sexual assault or stalking; elderly; or part of a religious minority. The division educates the public about their rights and protects those who assert their rights against unlawful retaliation. Between 2006 and 2011, individuals have filed between approximately 1,900 and 2,100 complaints per year. Furthermore, between 2008 and 2011, the Civil Rights experienced a 26 percent increase in the amount of public inquires received. Per year on average, the division puts $1.1 million into the hands of Oregonians that faced unlawful discrimination, much of it to workers who could not have afforded to hire an attorney to seek justice. The Governors budget for the division is $5.3 million total funds, 56 percent of which is from General Fund. Funds are also received from the U.S. Equal Employment Opportunities Commission and the U.S. Department of Housing and Urban Development. Additional funding is received from the Department of Consumer and Business Services (Occupational Safety and Health Division) for investigating complaints of retaliation for unsafe and unhealthy working conditions and from the Workers Benefit Fund for
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discrimination and retaliation complaints related to workers compensation claims. The budget provides the resources to the division to continue providing support at currently existing levels into 2013-15. Clinical Social Workers, Board of: The mission of the State Board of Licensed Social Workers is to protect the citizens of Oregon by setting a strong standard of practice and ethics through the regulation of social workers. The Governor appoints the seven-member board that includes four Licensed Clinical Social Workers and three public members. The Board sets policy, writes and adopts rules, renews licenses annually, and audits continuing education as part of the renewal process. Staff is responsible for issuing and renewing licensees, investigating complaints, and monitoring disciplined licensees. The Board currently has roughly 4,700 licensees. The Governors budget for this program is $1.4 million total funds. The Board is funded solely by Other Funds, primarily derived from application, background check, and licensing fees. The agency has fallen short of its goal to resolve 80 percent of its complaints within six months of receipt. For fiscal year 2012 only 67 percent of complaints were resolved within this timeframe. The Governors budget supports existing services, addresses increased workload resulting from Senate Bill 177 (2009), and provides the limitation necessary for conducting criminal background checks on licensees. Community Corrections: Community Corrections is a function of state government operated in partnership with local, countyoperated community corrections agencies. Community Corrections supervision, sanctions, and programs provide an effective means to hold offenders accountable while at the same time addressing the causes of criminal behavior and reducing the risk of present and future criminal behavior. Supervision is provided by probation and parole officers, and the intensity is guided by the offenders behavior and risk of committing new crimes. The Governors budget equals $255.1 million total funds, the majority of which come from the General Fund. This level of funding includes baseline community corrections grants distributed to counties for the supervision of over 31,000 offenders living in Oregon communities. The budget also includes $32 million General Fund for community corrections to provide front end services that reduce victimization and incentivize counties to maintain prison populations at 2011-13 levels. This means sending only the most dangerous person-crime offenders to prison and diverting low-level property and drug crime offenders to community supervision. Incentive funding is designed to provide supporting services to reduce recidivism for the target population. Consumer and Business Services Department Shared Services: The Shared Services division within the Department of Consumer and Business Services includes the Directors Office, Fiscal and Business Services, the Information Management Division, Communications Section, and Employee Services. It supports critical projects and allows the agency to carry out its regulatory functions.

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The Governors budget for this program is $34.4 million total funds. Shared Services is funded primarily with Other Funds it receives by revenue transfers from areas within the Department. Shared Services will support 928 employees, 35 programs, and administer 537 statutory fees during the 2013-15 biennium. Corrections Capital Construction: The Department of Corrections (DOC) Capital Construction program exists to capture the budget and expenditures for major remodeling and renovation projects, deferred maintenance projects, major capital asset and technology acquisition, additional space construction to address programming requirements, replacement/new facility construction, and construction management staff program also administers contracts in support of correcting issues that arise that may impact maintaining safe and secure working and living environments within DOCs correctional institutions. The Governors budget totals $5.0 million total funds, all of which come from proceeds on bonds sold during the 2013-15 biennium. This level of funding will support critical deferred maintenance projects at correctional facilities throughout Oregon. Corrections Capital Improvements: The Capital Improvement Program at the Department of Corrections exists to evaluate maintenance needs; administer contracts in support of renovating/remodeling facilities and correcting deferred maintenance deficiencies; provide electrical/physical electronic security maintenance assistance; and respond to unforeseen and unbudgeted issues that arise to ensure safe and secure environments within DOCs correctional institutions. The Governors budget equals $2.7 million total funds, all of which comes from the General Fund. This level of funding will support the most critical deferred maintenance projects at correctional facilities. Corrections Central Administration: The Department of Corrections Central Administration Office is structured under the Director and Deputy Director who oversee five program areas. This office provides overall leadership to the department, develops strategic plans, develops long-range and short-term performance goals and vision statements, participates in statewide planning activities with other agencies and business partners, provides leadership for statewide public safety initiatives and is the states liaison with various federal public safety organizations. The Governors budget includes $62.5 million total funds, nearly all of which come from the General Fund. This level of funding supports continuing current service levels into the 2013-15 biennium. This will allow the program to continue to support frontline activities of operating prisons and funding community supervision.

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Corrections Debt Service: Debt Service is the obligation to repay principal and interest on funds borrowed through the sale of Certificates of Participation and bonds. Proceeds generated by these sales for the Department of Corrections are used to construct and improve correctional facilities or acquire substantial equipment assets. They are also used to support for related activities including project management, community development coordination and fiscal services support. Repayment periods range from six to twenty-six years depending on the nature and value of the project. The Governors budget includes $132.8 million total funds for debt service, nearly all of which comes from the General Fund. This level of funding pays all principal and interest due on bonds sold to build prison capacity over the past twenty years. Corrections General Services: The Department of Corrections General Services program provides services that are fundamental to dayto-day DOC operations in four key areas: Information Technology, Fiscal Services, Facilities Services and Distribution Services. These services are provided directly to employees, offenders, volunteers, community corrections and other partner agencies. The Governors budget totals $62.5 million total funds, the majority of which comes from General Fund. Crime Victims Program: The Department of Justices Crime Victims Services Division (CVSD) delivers grant funding to direct service providers for crime victims throughout the state, pays out compensation claims to victims of crime, and collects restitution and judgments on behalf of crime victims and the State of Oregon. CVSD also provides direct advocacy services to victims of crime as mandated by the Oregon Constitution and Oregon revised statutes. Applications for compensation have increased steadily each year. Between 1999 and 2011, requests for compensation and bills for crime related services roughly doubled while the Compensation sections full-time equivalent positions rose from 10.00 to 11.50. The revenue section has collected more than $1 million per biennium in restitution, court-ordered fines, and subrogation with three or fewer full-time equivalent positions. The Governors budget for this program is $49.7 million, which includes $5.7 million General Fund, $16.7 million Federal Funds, and $27.2 million primarily from punitive damage awards, the Criminal Fines Account, and the collection of restitution and subrogation. The budget will fund 37 positions performing the services described above. This is essentially unchanged from the prior two biennia despite increases in demand. Criminal Investigation: The Oregon State Polices Criminal Investigation division ensures core community safety needs are addressed by promoting cooperative partnerships to deter crime through swift and competent interagency major crime investigations, targeted enforcement of drug trafficking, proper collection of physical evidence, investigative support and analysis, the preparation and retention of quality official documents, and the management of the statewide Sex Offender Registry. The program investigates major crimes
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Safety Outcome Area


across the state in support of local major crime teams and interagency drug teams with specialized services in arson and explosives, counter terrorism, polygraph examinations, and computer forensics. This program assumes a primary and leadership role in the investigation of crimes occurring at state facilities, on state property, or involving multijurisdictional venues. The Governors budget equals $37.7 million total funds, with $31.0 million coming from the General Fund. The program is also supported with a number of grants. This level of funding supports current service levels for all aspects of the program. In recent years, the program has resolved 93 percent of cases within twelve months. At this level of investment, the program should be able to continue to meet this level of performance. Criminal Justice: The Department of Justices Criminal Justice division conducts specialized criminal investigations and prosecutions. It combines highly trained and experienced special agents, prosecutors, and analysts in a single agency to comprehensively fight crime across Oregon. The Division also provides outreach and training to communities, victim service providers, and members of the law enforcement community to help ensure that Oregonians receive the highest level of service from the criminal justice system. Recently, the volume of services has dramatically increased. In the 2011-13 biennium, the Division expects to provide more than 5,000 services, which include service assists (requests by outside agencies and citizens to review and advise in criminal matters), investigations, prosecution, and cyber tips. Overall, the Criminal Justice Division served over 100 agencies in 2011. The Governors budget for this program is $28.5 million, which includes $8.4 million General Fund, $9.6 million Federal Funds, and $10.5 million primarily from billings of clients and transfers from the Department of Human Resources and the Oregon Department of Transportation. The budget will fund 53 positions providing the services described above. Criminal Justice Commission Sentencing, Policy, and Research: The purpose of the Criminal Justice Commission is to improve the effectiveness and efficiency of state and local criminal justice systems by analyzing and improving Oregons criminal justice systems. The agency administers key criminal justice system grants with this purpose in mind. By serving as a clearinghouse and analysis center for data regarding reported crime, arrests, convictions, and sentencing the agency makes long term planning for a more effective public safety system, such as the Safety Policy Vision of the 10-year plan for Oregon, possible. The agency provides cost-benefit analysis for the criminal justice system allowing policymakers to maximize return on investment in public safety. The Governors budget for the agency is $21.1 million total funds, including $13.7 million General Fund. Other revenues come from asset forfeitures and federal grants. In part, the Governors budget supports 27 drug courts statewide to offer diversion and treatment for offenders who would otherwise go to prison.

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Safety Outcome Area


Criminal Justice Standards and Training: The purpose of the Criminal Justice Standards and Training program within the Department of Public Safety Standards and Training is to train and certify to the appropriate level of competency all law enforcement, city and county corrections, parole and probation officers, 9-1-1 telecommunicators and emergency medical dispatchers. The Criminal Justice Standards and Training Program affects more than 600 public safety agencies across the state and helps ensure the safety of Oregons residents. The Governors budget for this program is $16.8 million, funded by the Criminal Fines Account. The budget will fund approximately 642 students in Basic Law Enforcement class per year and over 280 regional specialized and advanced training courses per year. Basic training classes range from three weeks for telecommunicators and emergency medical dispatchers to sixteen weeks for law enforcement officers. Costs for the program are primarily driven based on the number of individuals who require training and certification. The current economic slowdown, the loss of timber revenues for some counties, and retirements make it hard to predict the training needs of state and local public safety agencies. Defense of Criminal Convictions: The Department of Justices Defense of Criminal Convictions Program (DCC) is a budget structure that houses funding for work performed in the Appellate and Trial divisions to preserve convictions and sentences obtained by the states prosecutors, as well as to appeal from adverse trial court decisions that place criminal prosecutions in jeopardy. Oregon centralizes criminal post-conviction and appellate work in the Department of Justice to achieve top quality legal work, consistency in the legal positions the state takes in cases statewide, and efficiency. The Trial division uses funding from the DCC program to represent the state in trial court post-conviction proceedings as well as district court federal habeas corpus cases. The Appellate division uses DCC funding to represent the state in direct appeals and state postconviction challenges in the Oregon Court of Appeals and the Oregon Supreme Court as well as in federal habeas corpus proceedings in the Ninth Circuit. The Governors budget for this program is $21.5 million General Fund, a 24 percent increase from the 2011-13 Legislatively Approved Budget due largely to personal services inflation and a $2 million increase for mandated caseload. The budget will allow the department to effectively represent the states interests in the more than 3,900 appeals from criminal convictions that the division will be required to handle during the 2013-15 biennium. Dentistry, Board of: The Board of Dentistry is charged with the regulation of the practice of dentistry and dental hygiene by setting standards for entry to practice, examination of applicants, issuance and renewal of licenses, and enforcing the standards of practice. The Board also is required by law to establish standards for the administration of anesthesia in dental offices. The Board determines dental procedures that may be delegated to dental assistants and establishes standards for training and certification of dental assistants.

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Safety Outcome Area

Safety Outcome Area


The Governors budget for this program is $2.6 million Other Funds. The Board is funded with revenue generated primarily from fees paid by licensees and applicants for licenses and permits. A small portion (less than nine percent) of the Boards revenue is from miscellaneous revenues generated from the sale of documents and records, late fees interest and civil penalties. The Governors budget will support about 8,400 license renewals and applications and 500 complaint investigations during the 2013-15 biennium. District Attorneys: The District Attorneys agency consists solely of 36 independently elected District Attorneys who are Executive Branch officers. The primary responsibility of the District Attorney is to seek justice; they prosecute virtually all criminal conduct that occurs in Oregon. D.A.s are also responsible for over 300 statutes that either mandate or authorize additional duties, including juvenile dependency and child support enforcement. D.A.s are also required by the Constitution to provide services to crime victims. The Governors budget for this program is $10.4 million General Fund, which covers the salaries of the 36 D.A.s and statewide assessments. Driver and Motor Vehicles Services: Driver and Motor Vehicles (DMV) within the Department of Transportation provides driver licensing, vehicle titling and registration, and driver/vehicle records through four service groups: Customer, Field, Processing, and Program. DMV serves the general public and all public, private, and nonprofit entities that own or operate motor vehicles used on Oregon roads and highways. The purpose of driver licensing is to ensure people have the necessary knowledge and skills to operate motor vehicles safely on Oregon roads and highways. The purpose of vehicle titling is to protect ownership rights by providing prima facie evidence of ownership or a financial interest in a vehicle. The purpose of registration is to identify vehicles driving on public roads and to collect revenue for cities/counties and the State Highway Fund. Registration is also a tool to ensure compliance with other legal mandates such as liability insurance coverage and air emissions standards set by the Department of Environmental Quality (DEQ). DMV field offices serve about 12,000 customers each day with a 12-minute wait time target (statewide annual average). The statewide average wait time has been below 12 minutes since 2005. Three telephone contact centers assist about 1.6 million customers per year. Law enforcement officials access about 141,000 DMV records each day, and businesses and individuals make over 2.9 million DMV record requests per year. The customer answer time target for the DMV contact centers is 45 seconds, and this target was met each of the past seven years with better tools and more efficient business processes. The Governors budget for Driver and Motor Vehicles is $168.8 million total funds. Funding is almost entirely derived from fees collected for driver licensing, vehicle title/registration, and records. Fees collected from business licenses and Identification Cards are deposited in the Transportation Operating Fund (TOF) to support business regulation activities and senior and disabled transportation. Federal funding also comes to the Department from the Federal Motor Carrier Safety Administration (FMCSA), Department of Homeland Security, and U.S. Department of Justice. The budget continues support for existing programs and will allow the Department to continue to focus on keeping field office wait times down and improving customer satisfaction.
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Safety Outcome Area


Emergency Management: The Office of Emergency Management (OEM) within the Oregon Military Department coordinates statewide emergency services and maintains emergency communications systems used for public warnings, emergency notifications, and emergency support. OEM also provides cities, counties, and tribes throughout Oregon with planning, training, exercise and technical assistance as it relates to disaster preparedness, emergency response, hazard mitigation and seismic rehabilitation. OEM has provided funding to 34 of Oregons 36 counties to help finance emergency management programs. Currently 89 percent of Oregon counties have a formal written Emergency Operations Plan on file with OEM. Through the Emergency Communications Account all 49 Public Safety Answering Points (PSAPs) are able to maintain/upgrade 9-1-1 call taking equipment. Currently 80 percent of Oregons population is covered by a FEMA approved hazard mitigation plan. This has resulted in several mitigation projects being approved for funding through the Pre-Disaster Mitigation Program. OEM has awarded approximately $30 million of funding for seismic rehabilitation projects to schools and emergency service facilities across the state. The Governors budget for this program is $243.4 million, which includes $2.1 million General Fund, $156.5 million Federal Funds, and $84.8 million primarily from 9-1-1 emergency communications tax. The budget will fund 40 positions, a slight decline from the current level of staffing due to the transfer of the seismic rehabilitation program to the Oregon Business Development Department. The budget provides for the reauthorization of the 9-1-1 emergency communications tax, transfer of the seismic rehabilitation program to the Oregon Business Development Department, and continued ability to prepare for and respond to emergencies. Finance and Corporate Securities Regulation: The Division of Finance and Corporate Securities within the Department of Consumer and Business Services assures the services and products of financial institutions are provided in a safe, sound, equitable and fraud-free manner while promoting a favorable business climate for these institutions. The program works to resolve customer complaints, pursues independent investigations and emphasizes timely enforcement to prevent fraudulent practices. The Governors budget for this program is $18.3 million Other Funds. The Division of Finance and Corporate Securities receives its funding through licensing and examination fees assessed to statechartered banks and credit unions, securities brokers, mortgage brokers, and bankers. The percentage of financial institutions or mortgage lenders rated satisfactory or higher on their risk-based examination is a measure that demonstrates financial health and compliance. For fiscal year 2011, 65 percent of Oregons financial entities were rated satisfactory or higher, an increase from 2010 when this number was only 58 percent. Fire Standards and Training: The purpose of the Fire Standards and Training program within the Department of Public Safety Standards and Training is to train and certify career and volunteer firefighters. The Fire Training and Certification program is important because fires and emergencies happen 24 hours a day, seven days a week, 365 days a year, and each event requires trained firefighters to contain, control and prevent more damage.
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Safety Outcome Area

This program also supports the Oregon Department of Forestry (ODF) when the Governor mobilizes the Oregon National Guard. At the request of ODF, it provides wildland firefighter training to members of the National Guard being mobilized to assist with fire suppression efforts across the state. Fire Program employees also participate in Oregons Urban Search and Rescue (USAR) Program and respond as part of the State Fire Marshals Incident Management Team. The Governors budget for this program is $4.3 million. This program is funded primarily through the Fire Insurance Premium Tax (FIPT) which is a 1 percent surcharge on all fire insurance policies written in the State of Oregon. The FIPT revenue is used to provide training and certification for over 13,000 fire service professionals. Forensic Services: The Oregon State Police Forensic Services division provides scientific, technical and investigative support through forensic analysis to the criminal justice system in Oregon to include all law enforcement agencies, district attorneys, courts and defendants in criminal cases. The analysis of evidence assists investigators in the processing of crime scenes and assessment of criminal activities against people and property. The expert testimony and scientific analysis assists judges and juries with determining guilt or innocence. The Governors budget for this program is $35.2 million total funds, of which the majority is derived from the General Fund. This level of funding support current service levels for all aspects of the program. Program performance is measured primarily by the number of aided investigations where work is completed within 60 days. Cases are prioritized such that person crimes are handled first, followed by property and drug crimes. In recent years, the success rate for cases has averaged 75 percent. Performance is expected to rise to 85 percent over ten years at the current level of investment. Geologic Survey: The Geologic Survey and Services program creates, collects, compiles, interprets and publishes information about geologic hazards like coastal erosion, earthquakes, tsunamis, landslides, floods, and volcanic eruptions. The program operates with about 40 staff and works with local, state, and federal agencies to reduce the risk posed by these hazards and to keep all Oregonians safe where they live, work, and play. It also educates Oregonians and visitors to Oregon to proactively reduce the loss of life and property. The Governors budget for this program is $12.5 million, which includes $2.6 million General Fund, as well as federal and private funds from contracts for services and purchases of information. The Governors budget will allow the agency to continue collecting, interpreting, and providing hazard information. This includes completing earthquake, landslide, and tsunami hazard maps.

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Health Licensing Agency: The Oregon Health Licensing Agency (OHLA) regulates multiple health and related professions in Oregon. It provides administration for 10 boards and one advisory council: Board of Athletic Trainers; Board of Cosmetology; Board of Denture Technology; Respiratory Therapists and Polysomnographic Technologists Licensing Board; Environmental Health Registration Board; Hearing Aid Specialists Advisory Council; Board of Direct Entry Midwifery; Sex Offender Treatment Board; Nursing Home Administrators Board; Board of Licensed Dietitians; and Board of Body Art Practitioners. The Governors budget, at $7.7 million, is funded by fees from applications, examinations, authorizations, authorization renewals, charges for services, fines and forfeitures, sales income and interagency agreements. Each board and council is self-sufficient and supports its own expenses within OHLAs budget. The major cost drivers for OHLA are derived from writing rules, conducting examinations, licensing clients, inspecting facilities, investigating complaints, and litigation expenses. In 2013-15 OHLA will regulate over 70,000 authorizations within 21 professions, including over 4,600 facilities and 7,200 independent contractors. Highway Maintenance: The Highway Maintenance program within the Department of Transportation (ODOT) provides for a safe and useable state highway system that promotes efficient passenger and freight movement through routine daily activities of maintaining, preserving, repairing and restoring existing highways. Highway maintenance activities include replacing what is necessary to keep the highways safe (such as signs, pavement markings, and traffic signal components), but generally does not include road reconstruction. The Oregon State Highway System serves more than three million licensed Oregon drivers and countless visitors to Oregon each day. Drivers of both passenger vehicles and commercial trucks rely on ODOT to provide a safe, reliable network of state highways. The state highway system provides access to intrastate, interstate and international markets for traded sector goods and also provides critical linkages between our communities around the state and the domestic and international markets served by our airports, marine terminals and rail lines. The program ensures the safety of people by maintaining, preserving, repairing and operating the state highway system to provide a safe, usable and efficient transportation system that supports economic opportunity and livable communities for Oregon. The state highway system is considered critical public infrastructure and this program plays a major role in preserving and restoring the transportation system to prevent problems or damage to the system. The Governors budget for Highway Maintenance is $454.3 million total funds. The funds come from the Highway Fund and the Federal Highway Administration. The budget continues support for existing programs. It also makes additional investments in the State Radio Project by transferring employees (associated with the project) from the Oregon State Police and the Office of Emergency Management to the Department of Transportation for the purposes of transitioning from the construction of the project to the maintenance of it as a system.

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Highway Operations: The Highway Operations program within the Department of Transportation is focused on reducing the number of fatal and serious injury crashes that occur on the state system. The program includes several system management tools that help guide and prioritize how public investments are made to improve traffic safety and reduce the potential for crashes. The Oregon State Highway System serves more than three million licensed Oregon drivers and countless visitors to Oregon each day. The Highway Safety Improvement program provides for infrastructure improvements and relatively low cost and cost effective countermeasures on target highway segments or intersections with a history of crashes. The Oregon Safe Routes to School Programs goal is to assist communities in identifying and reducing barriers and hazards to children, kindergarten through 12th grade, walking or bicycling within two miles of the school. The number of traffic fatalities per 100 million vehicle miles traveled has steadily declined from 1.31 in 2003-2005 to .92 so far in 2011-2013. The Governors budget for Highway Operations is $123.1 million total funds. The funds come from the Highway Fund and the Federal Highway Administration. The budget continues support for existing programs allowing the Department to continue to fund safety and operations projects that will help to reduce traffic fatalities and provide technological solutions to help with traffic flow. Insurance Regulation: The Insurance division within the Department of Consumer and Business Services works to ensure financially strong insurance companies, legal and competitive insurance products, and savvy customers. It also works towards the affordability and availability of insurance products and that policyholders and claimants are treated fairly. During 2011 the Insurance division regulated 1,426 companies authorized to do business within Oregon. The Governors budget for this program is $23.7 million total funds. The Insurance Division is funded primarily with Other Funds it receives through an assessment paid by insurance companies, licensing fees, testing fees, investment income, and civil penalties; however it also receives a federal grant from the U.S. Centers for Medicare and Medicaid for Senior Health Insurance Benefit Assistance. During fiscal year 2011 the Insurance division resolved 3,400 customer complaints, closed 1,070 investigations, and had 56 enforcement actions. Licensed Professional Counselors and Therapists, Board of: The primary purpose of the Board of Licensed Professional Counselors and Therapists is consumer protection. The Board accomplishes that mission by setting licensing requirements for professional counselors and marriage and family therapists. The requirements include standards for education, experience, examination, continuing education, establishment of a code of ethics, and discipline for ethics violations. The Boards licensure process assures that professional counselors and marriage and family therapists are qualified to have a license and meet a strict code of ethics to help ensure consumer protection.
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Safety Outcome Area


The Board serves in a regulatory role. Oregon law does not require professional counselors and marriage and family therapists to be licensed, and the Boards authority is limited to only those who choose to be licensed. The Boards programs are part of the Safety Outcome Area because the programs assure that license requirements and standards are set high, which helps to improve the safety of consumers by providing clients with high quality services and appropriate treatment of mental illness and dysfunctional behavior in a cost effective way. Highly qualified and experienced counselors and therapists will also help achieve better outcomes in the mental health system. The Board has seen an increase in the number of complaints filed from 28 cases (2008) to 65 cases (2011), representing a 132 percent increase. In the same time period, the number of complaints resulting in discipline rose from one case in 2008 (four percent of cases) to seven cases in 2011 (11 percent of cases). The Governors budget for the Board is $1.1 million total funds, for which the revenue is derived mainly through license and renewal fees. The budget supports the Boards work in licensing approximately 2,400 Licensed Professional Counselors and Licensed Marriage and Family Therapists and registering more than 800 interns working toward licensure. The budget supports the Boards ability to keep pace with investigations into complaints, and enhances resources to allow the Board to address three cases which have proceeded beyond the contested case level into the Oregon Court of Appeals and Oregon Supreme Court. Licensing and Regulatory Oversight, Office of: The Office of Licensing and Regulatory Oversight (ORLO) within the Department of Human Services DHS is responsible for the licensing, certification, regulatory and corrective action functions for Individuals with Developmental Disabilities (DD), Aging and People with Disabilities (APD) and Child Welfare (CW) providers. This includes adult foster homes for individuals with developmental disabilities, for the aged and physically disabled, child foster homes, 24-hour residential programs, assisted living facilities, residential care facilities, nursing homes, supported living programs, proctor care for agencies for children, brokerages, provider organizations, employment and alternatives to employment programs, and residential care facilities for children with behavioral, emotional and mental health conditions. The Office also provides policy direction to the Adult Foster Home certification regulation for APD. The performance of the Office is directly related to the safety of vulnerable Oregonians who find themselves in need of care in a supervised 24-hour living environment. These Oregonians are often unable to protect themselves and they deserve to be free from abuse and neglect by service providers and free from facilities that engage in practices that are detrimental to their safety and health. Through the timely, thorough and effective oversight of care facilities and homes for children, the elderly and the disabled, DHS provides assurance that conditions exist within these facilities and homes that provide the highest likelihood of safety and quality care. The licensing and certification regulations that are in place are intended to educate providers of required safe practices, prevent unsafe conditions from being perpetuated and mitigate risk to vulnerable children and adults in care through regular oversight to insure that the regulations are being upheld. The Governors budget for the program is $25.2 million total funds. Revenue is derived from the General Fund and federal grants. The budget makes an investment to add licensing staff to address increasing workloads.
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Safety Outcome Area

Long Term Care Ombudsman: The Office of the Long Term Care Ombudsman (LTCO) is an independent state agency serving licensed long-term care facility residents through complaint investigation, resolution and advocacy for improvements in resident care. The purpose of the LTCO, established under Title VII of the Older Americans Act, is to investigate and resolve complaints made by, or on the behalf of, older persons who are residents of licensed long-term care facilities and advocate for their interests. The Governors budget for this program is $2.7 million total funds, of which approximately 25 percent is federal Older Americans Act funds; the remainder is General Fund. The Governors budget supports six Deputy Long Term Care Ombudsmen, which in turn depend on about 215 trained volunteers to visit residents of about 263 licensed facilities every week. This budget will allow the agency to provide more than 13,700 visits per year, about 20 percent more than in 2011-13. Marine Board Law Enforcement Program: The Law Enforcement Program of the Marine Board operates with four staff and provides statewide boating law administration. The program contracts with state and local law enforcement for boating law enforcement and related services on over 600 boatable lakes, 75 major rivers and over 363 miles of coastline. It also provides public outreach including a variety of school education programs. The Marine Board provides funds to county sheriffs offices and the State Police to provide patrol on waterways depending on need. Over 90 percent of the funding provided to the program is passed through via contracts to state and county law enforcement. The remainder funds direct support to the law enforcement program. The Governors budget for this program is $14.3 million, funded primarily with boating fuel taxes, boat registration and title fees, and U.S. Coast Guard grants. The Governors budget provides enhanced law enforcement activities using revenues already available in the agency. This will assist in lowering the number of boater fatalities in Oregon. Maritime Pilots: The Board of Maritime Pilots (BOMP) helps protect public health, safety, and welfare by ensuring that only the best-qualified persons are licensed to pilot vessels. Pilots are essential to Oregons maritime commerce, directing the transit of vessels calling on the ports of Coos Bay, Yaquina Bay, Astoria, Kalama, Longview, Vancouver, and Portland. The Board licenses and regulates state maritime pilots, selects pilot trainees and apprentices, sets training and licensing standards, monitors required licensure renewal and continuing professional development, sets rates the pilots can charge for pilotage services, and investigates any incident that occurs while a vessel is under the direction of a pilot. The primary purpose of licensing pilots is to assure safe passage of vessels on Oregons waters. Through the licensing and regulation of maritime pilots, the Boards focus is on safety and is designed to provide education, advocacy and regulatory efforts to ensure safety, soundness and availability of markets for goods, services, and labor.
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The occurrence of maritime incidents has decreased significantly from the 1990 decade. At its high in 1993 there were sixteen incidents. The low occurred in 2000, with only two. From 2001 to 2011, incidents have remained consistent between four and six incidents per year. The Governors budget for the Board is $0.3 million total funds, which is derived principally from license fees paid by maritime pilots. The budget will support the Boards existing workload associated with licensure, investigations and continuing professional development in 2013-2015. Medical Board: The Oregon Medical Board (OMB) protects the health, safety, and well-being of Oregon citizens by regulating the practice of medicine in a manner that promotes quality care. The Board is responsible for licensing, regulating, and disciplining the professions of medical doctor, doctor of osteopathy, podiatrist, physician assistant, and acupuncturist to ensure that qualified individuals are licensed to practice. The OMB provides the critical public service of ensuring that Oregons citizens receive safe, quality medical care by allowing only qualified individuals to have the privilege to practice medicine. The Governors budget for this program is $10.6 million Other Funds. The agencys funds are paid by and dedicated to those who are regulated; 98 percent of revenue comes from the licensing and renewal activities of the agency. The other two percent of funding is generated by various fees for services the agency provides. The Governors budget will support about 18,000 license renewals and applications and 800 complaint investigations during the 2013-15 biennium. Medical Examiner: The Oregon State Police State Medical Examiners Office oversees the statewide death investigation system in Oregon. As the sole source provider of forensic pathology services, the office is responsible for the investigation of all deaths due to homicide, suicide, accident, drug overdose, deaths in state custody, deaths on the job, or natural deaths occurring while not under medical care. The results of these 7,736 investigations support the actions of law enforcement and public health statewide. The Governors budget for this program is $4.5 million total funds, which is nearly all General Fund. This level of investment maintains current service levels for all aspects of the program. Medical Imaging, Board of: The Board of Medical Imaging licenses and oversees medical imaging technologists who are qualified to practice radiography, radiation therapy, sonography, nuclear medicine, and magnetic resonance imaging. In addition, the Board oversees the educational requirements and issues permits for limited x-ray machine operators. The Boards programs consist of licensing, regulation, enforcement, and education. The Board provides education, advocacy and regulatory efforts and works to ensure that Oregon consumers can be confident that diagnostic and therapeutic imaging procedures are conducted as accurately and safely as possible. Accurate imaging procedures improve patient safety through effective diagnosis and treatment.
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Safety Outcome Area

The number of licensees rose from 2,350 in 2001-03 to over 5,900 in 20011-13. In 2009, the Legislature passed a bill (House Bill 2245) that added three new license types to those required to be regulated. The number of disciplinary cases has varied since 2001-2003, with a high of 180 in 2001-2003 to a low of 69 cases in 2003-2005. In 2011-13, the Board has seen 98 cases so far. The Governors budget for the Board is $0.8 million. Funding is derived principally from license fees. The budget will support the Boards work in licensing approximately 6,149 different types of licensees in 2013-2015, and supports three positions to allow the Board to keep pace with investigations into complaints. The budget also supports an enhancement, which will allow the Board to transition from hard copy (paper) filing and storage of documents to electronic filing and storage. Military Capital Construction: The Oregon Military Departments Capital Construction program is responsible for the planning, design, and construction of all capital construction projects for the Oregon Army National Guard. The program addresses the agencys most critical facility shortfalls either through replacing facilities that are no longer capable of serving the needs of the assigned units or extending the lifespan of facilities through alterations and additions. The Fiscal Year 2011 Installation Status Report (ISR) indicates that 81 percent of the facilities are in adequate or better condition, up from prior years due to a state funded Armory Service Life Extension Program, use of 2009 ARRA funds, the construction of new facilities replacing outdated ones, and a change in the ISR rating system. The Governors budget for this program is $8.2 million, which includes $7.4 million from the sale of Article XI-Q general obligation bonds for three Service Life Extension Projects (SELPs), one each at Roseburg, Portland, and Grants Pass. It also provides smaller amounts from state and federal sources for planning and pre-design of future SELPs and agency funds for the purchase of 2,296 acres at Christmas Valley. This budget is a substantial reduction from the 2011-13 biennium due to the lack of large construction projects. Military Capital Improvement: The Oregon Military Departments Capital Improvement program works to meet the requirements for housing units of the Oregon Army National Guard. The programs primary responsibility is to perform deferred maintenance projects costing less than $1 million across three million square feet of facility space. Military Department facilities include 33 armories, seven vehicle maintenance facilities, and 339 other facilities. Typical capital improvement projects are roof, structural, HVAC system, and building envelope (i.e., window and door replacement) projects. These deferred maintenance projects directly affect the operational readiness of Oregon National Guard facilities used for soldier and airman training as well as the ability to fill extra facility space with paying tenants. The Fiscal Year 2011 Installation Status Report (ISR) indicates that 81 percent of the facilities are in adequate or better condition, up from prior years due to a state funded Armory Service Life Extension Program, use of 2009 ARRA funds, the construction of new facilities replacing outdated ones, and a change in the ISR rating system. During Fiscal Year 2011 approximately 40 percent of available armory time was rented.

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The Governors budget for this program is $4.6 million Federal Funds. This budget continues the current level of capital improvement efforts. This budget may not adequately maintain existing facilities, leading to a decline in operational readiness and eventual replacement of facilities. Military Operations: The Oregon Military Departments Operations program supports the mission of the Oregon National Guard through the ongoing maintenance and support of National Guard Facilities. The services provided by the Operations program include facilities maintenance and support and environmental services, as well as around-the-clock security and fire support services at the Portland and Klamath Falls airbases. The Operations program also conducts equipment refurbishment operations and counter-drug operations. The success of the Operations program is essential to the success of the National Guard in Oregon and to the states ability to provide adequate infrastructure in response to natural or human-made disasters. The Governors budget for this program is $122.9 million, which includes $6.7 million General Fund, $111.5 Federal Funds, and $6.7 million primarily from facility rentals. The budget will fund 397 positions without an increase in General Fund. This is an increase of 40 positions that include 23 to provide caretaking services at the Umatilla Army Depot, 12 to support operations and maintenance of facilities, and seven to augment the firefighting crew at Kingsley Field in Klamath Falls. Mortuary and Cemetery Board: The Oregon Mortuary and Cemetery Board licenses and regulates the practice of individuals and facilities engaged in the care, preparation, processing, transportation and final disposition of human remains. The Boards programs protect public health, safety and welfare by promoting professional behavior and enforcing compliance with civil statues and rules established for that purpose, as well as through education and public awareness. The Board's licensees include funeral service practitioners, embalmers, apprentices, interns, preneed sales people, death care consultants, funeral establishments, immediate disposition companies, cemeteries and crematories. The Board inspects all death care facilities at least once each biennium. The Boards programs foster a culture of disaster preparedness and resiliency by actively promoting practitioner participation in disaster preparedness training and exercises, while also coordinating with other state, county and federal agencies to incorporate consideration ofand provide access to practitioners in this area. The Board also works to ensure there are sufficient death care facilities available in different communities, which is critical as many of these facilities may be needed for storage of remains. Finally, the Board regulates the death care industry to ensure the safety, soundness and availability of products, services and facilities. Since the 2003-2005 biennium, the Board has opened more than 200 investigations each biennium. Those investigations have resulted in determined violations of between 44 to 79 cases during that same time period. The Governors budget for the board is $1.4 million total funds, which is derived principally from license fees and a portion of the Oregon death registration filing fee. The budget supports the Boards work in licensing approximately 2,400 practitioners and facilities. The budget supports six positions allowing the Board to keep pace with investigations into complaints.
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Motor Carrier Transportation: The Motor Carrier Transportation Division (MCTD) within the Department of Transportation helps truckers comply with Oregon laws and regulations relating to economic regulation, registration, safety, highway-use tax, and truck size and weight. MCTD regulates a diverse industry ranging from one-truck owner operators to carriers with large fleets that operate throughout the United States and Canada. The division maintains accounts for approximately 19,500 trucking companies, with 277,000 trucks registered to operate in Oregon. This includes 7,700 Oregon companies with 41,000 trucks. MCTD processes tax and fee payments that contribute nearly one-third of all money received for the states Highway Fund. MCTD operates Ports of Entry, weigh stations, and portable scale sites that check millions of trucks each year to make sure they operate within vehicle size and weight limits. MCTD issues variance permits with safe routing instructions to trucks and truck/trailer combinations operating in excess of standard, size, weight, or height so they do not damage the highway infrastructure or create a hazard to the motoring public. Highway safety is the top priority for the Motor Carrier Transportation Division. The divisions mission is to promote a safe, efficient, and responsible commercial transportation industry by simplifying compliance, reducing unnecessary regulations, protecting highways and bridges from damage, facilitating the safety of the traveling public, enhancing private-public partnerships, fostering effective two-way communication, delivering superior customer service, and recognizing the vital economic interests of the commercial transportation industry. Oregon saw a decline in truck crashes in 2007 ending a multi-year stretch in which crashes had been steadily increasing. Oregon experienced its most remarkable year in contemporary history in 2009 in terms of truck crash totals. Crashes involving trucks were down 28 percent and truck at fault crashes were down 26 percent. The Governors budget for the Motor Carrier Transportation Division is $64.8 million total funds. The funding comes from the Highway Fund, with a small portion of federal grants for the Motor Carrier Safety Assistance Program. The budget continues support for existing programs. Naturopathic Medicine, Board of : The Oregon Board of Naturopathic Medicine regulates the practice of naturopathic medicine in Oregon. The mission of the Board is to protect the public by licensing and regulating naturopathic physicians. The Board promotes physician excellence and fosters communication within the profession and with the public. The Boards programs include licensing, education, regulation, enforcement and outreach. The Board works to ensure the safe practice of naturopathic medicine through licensure, regulation, and continuing to encourage education directed towards the consumer and their rights. The number of licensees has risen from 425 Naturopaths in 2001-03 to just over 1,000 Naturopaths in 2011-13. As the popularity of Naturopathic Medicine is increasing, the Board is experiencing an increase in the number of inquiries from the public regarding the use of naturopathic medicine as primary healthcare. Furthermore, since 2007, the Board has seen a substantial increase in complaints, which result in investigations and final orders. In 2007, the Board received 17 complaints resulting in four final orders. In 2011, the complaints received rose to 36, which resulted in eight final orders.
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The Governors budget for the board is $0.6 million total funds, which is derived principally from license fees. The budget will support the Boards work towards licensing approximately 1,200 Naturopaths in 2013-2015, and supports three positions to allow the Board to keep pace with investigations into complaints. Nuclear Safety Program: Oregon Department of Energy - The Department of Energys Nuclear Safety and Energy Emergency Preparedness Program protects Oregonians from exposure to hazards by: monitoring radioactive waste cleanup activities at the Hanford nuclear site; preparing and testing nuclear emergency preparedness plans; participating in emergency preparedness planning for Liquefied Natural Gas terminals; and, overseeing the transport of radioactive materials through Oregon. During times of petroleum shortages, the program also regulates the states Petroleum Contingency Plan to ensure petroleum supply to emergency and essential services. The Nuclear Safety and Emergency Planning Program works to ensure that communities are prepared for and resilient to disasters and that Oregon maintains and preserves infrastructure to prevent the loss of life and property. It does this by ensuring the safety of people through the development of shared safety systems and preparation for disasters. The program also plays a key role in ensuring that federal safety standards are met and that a culture of safety is created around the clean up and transportation of radioactive waste. The Governors budget for the board is $2.1 million total funds most of which is provided by the U.S. Department of Energy. The program receives additional funding from grants, fees charged to haulers of radioactive materials and a small portion of the Energy Supplier Assessment. The budget supports the continuation of the current level of emergency response preparedness, monitoring of Hanford, and regulation of the transport of radioactive waste through Oregon. Nursing, Board of: The Oregon State Board of Nursing safeguards the public's health and well-being by ensuring the safe practice of nursing through licensure, regulation, and continuing education of nurses within the profession. No other state or federal agency has the statutory authority to perform these functions. The number of licensees has risen from 59,693 in 2001-03 to just over 72,000 in 2011-13. Since 2006, the Boards investigatory work has remained fairly steady receiving between 2,000 to 2,700 complaints in each fiscal year. Of those investigations, the Board has issued between 231 and 487 final orders within those same fiscal years. The Governors budget for the board is $14.7 million total funds. Revenue for the program is derived from license examination, licensing and renewal fees charged to Registered Nurses, Licensed Practical Nurses, nurse practitioners, Certified Nurse Anesthetists, Clinical Nurse Specialists, Certified Nursing Assistants and Certified Medication Aides. The budget supports the Boards ability to meet a projected six percent increase in licensees and to keep pace with investigations and issuance of final orders. Finally,
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the budget also provides additional funding for the rise in costs related to the Health Professionals Services Program. Occupational Therapy Licensing Board: The Occupational Therapy Licensing Board regulates the practice of occupational therapy in Oregon. The Boards mission is to protect the public by supervising occupational therapy practice, and assuring the safe and ethical delivery of occupational therapy services in Oregon. The Boards programs consist of licensing, regulation, enforcement, education and outreach. The Board provides education, advocacy and regulatory efforts to protect citizens from harm when they are patients within the Oregon health care system. Occupational Therapists often work with vulnerable citizens (children, seniors). Regulating Occupational Therapists is important to ensure that only professional therapists are licensed in order to keep those citizens safe when getting treatment. The number of licensees has risen from 1,243 in 2001-03 to 1,800 in 20011-13. Beginning in 2006, the number of complaints filed with the Board has risen from four to seven in 2011 (with a high of 12 filed in 2010). In resolving its cases, the Board has been successful in utilizing consent orders rather than progressing to contested cases. The Governors budget for the board is $0.4 million total funds, revenue is derived principally from license fees. The budget will support the Boards work in licensing approximately 1,900 therapists in 2013-2015, and supports two positions to allow the Board to keep pace with investigations into complaints. Offender Management and Rehabilitation: Department of Corrections - The Offender Management and Rehabilitation program provides a continuum of evidence-based interventions as well as other services, opportunities and tools to offenders to successfully transition to Community Corrections partners for supervision upon release from the Department Of Corrections. Upon admission to DOC, offenders receive a variety of assessments to identify security, medical, mental health, substance abuse, educational, and cognitive risks. A criminal risk assessment is also completed on offenders with a calculated Automated Criminal Risk score that identifies them as a moderate to high risk to recidivate. The results of the individualized and criminal risk factor assessments are used to create an individualized case plan for each offender. The individualized case plan identifies interventions and supervision strategies, facility work assignments, programming, treatment, and educational/vocational activities that are appropriate to the offenders strengths and needs. The plan will promote positive change and assist in developing pro-social behaviors to facilitate prison adjustment and successful reentry. The Governors budget for this program is $76.9 million total funds, the majority of which are General Fund. This level of funding support continuing current service levels into the 2013-15 biennium. Performance in this program is measured by the success of offenders to remain crime free. This success rate has averaged 76 percent in recent years. This investment will allow the program to continue to perform at or above this threshold.
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Oregon Occupational Safety and Health Administration: The Oregon Occupational Safety and Health division (OSHA) within the Department of Consumer and Business Services helps make sure that the workplace in Oregon is safe. It conducts worksite inspections, provides training materials and offers free consultation services to employers. During 2011, OSHA conducted over 4,500 inspections, over 2,600 consultations, and held conferences or training for over 29,000 individuals. The Governors budget for this program is $46.7 million Other Funds. OSHA receives its funding through an assessment paid by employers on the premiums they pay to their insurer for workers compensation coverage, a grant from the U.S. Department of Labor OSHA, investments income, and civil penalties. During fiscal year 2011, Oregon had a disabling claims rate of 1.1 per 100 workers and a fatality rate of 1.7 per 100,000 workers. The agency will continue its work to ensure the safety of Oregon workers in the upcoming biennium. Parole and Post Prison Supervision, Board of: The Board of Parole and Post-Prison Supervision protects the public and reduces the risk of repeat criminal behavior through its incarceration and community supervision decisions. Board members set parole release dates for offenders convicted of felonies prior to November 1, 1989, offenders sentenced as dangerous offenders, offenders sentenced for aggravated murder, and offenders sentenced for murder before November 1, 1989, and after June 30, 1995. The Board is the releasing authority for all offenders released from the Department of Corrections on either Parole or Post-Prison Supervision and therefore, is the ultimate decision maker for all aspects related to the offenders on community supervision. The Governors budget for this program is $4.0 million total funds. General Fund makes up almost the entire budget, with a small amount of Other Funds revenue from the sale of documents and hearing tapes. This funding level supports three board members who hold an average of 20 parole hearings per month and establish conditions of community supervision for approximately 550 newly released offenders per month, the Board also issues warrants for absconders, notifies victims of hearings and releases, and monitors, adjusts, and discharges offenders supervision. Patrol Services: The Patrol Services division of the Oregon State Police provides uniform police services throughout the state with the primary responsibility for the protection of human life and property through crash reduction, crime reduction, and emergency response to calls on state and interstate highways, state parks, rest areas and state property. The Division also supports local law enforcement efforts by serving as a statewide deployable resource to assist with responses to city and county emergency calls for service and natural or man-made disasters. The program measures performance in two primary ways. The first is the number of crashes on Oregon highways where the program has primary responsibility. In recent years, this metric has held steady at between 7,000 and 8,000 crashes per year. The second is the percentage of callouts where a state police
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trooper is not available to respond to the call. The metric has held steady at seven percent for the last two years. The Governors budget for this program is $129.3 million total funds. The primary source of funding is General Fund, with remaining funding coming from grants. This level of investment supports current service levels and should allow the program to meet performance targets through the ten year horizon. Permanency Planning and Post-Adoption: Children in foster care who are unable to return to the care of their parents receive assistance through the Permanency Planning and Post-Adoption/Guardianship Support Programs. The Department of Human Services helps find a permanent family for them through adoption or guardianship. Once these children are placed in a permanent family, this program continues providing support to the families to meet the special needs and lifelong challenges of children who have been abused and neglected. The Permanency Planning and Adoption/Guardianship Support Programs are designed to impact the safe and equitable reduction of children in foster care. Children in the foster care system, who cannot safely return to their biological parents, need safe and appropriate alternate forms of permanency. Evidence shows that children who do not have permanency have issues in the future such as lack of education, unemployment, homelessness, and incarceration at much higher rates than the general population. Program performance is generally measured by the number of children who leave foster care into a successful permanent plan, and the timeliness of achieving the adoption or guardianship. In the past four years, the median months to achieve adoption have been between 33 and 36. Performance is also measured by the number of children who enter guardianship or adoption with relatives or persons with whom they have important relationships. In the past four years, approximately 81 percent of all children leaving foster care for permanency were adopted by or in guardianships with a relative or person known to them. The Governors budget for the program is $148.9 million total funds. Revenue is derived from the General Fund and from various resources at the U.S. Department of Health and Human Services. The budget supports the continuation of existing programs. Pharmacy, Board of: The Board of Pharmacy promotes, preserves, and protects the health, safety and welfare of Oregon citizens by control and regulation of the practice of pharmacy. The Board regulates the quality and distribution of drugs through outlets involved in the manufacture, production, sale and distribution of prescription drugs, over-the-counter drugs, controlled substances and devices and other materials as may be used in the diagnosis, cure, mitigation, prevention and treatment of injury, illness and disease. The Governors budget for this program is $5.8 million Other Funds. The program receives revenue from fees charged to licensees, civil penalties and small number of administrative user fees. The Governors

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budget will support about 23,000 license renewals and applications and 480 complaints and investigations during the 2013-15 biennium. Prison Health Services:
The Department of Corrections (DOC) Health Services section provides legally mandated medical, dental, mental health, and pharmacy services to the entire offender population 24-hours per day, seven days a week. DOC provides a varying range of health care services at every location and occasionally patients need to see specialty providers based on the severity of their conditions. As offenders near release they are involved in planning for successful continuity of care as they transition into their particular community setting.

The Governors budget for the Health Services program is $239.1 million total funds, the majority of which comes from General Fund. This level of funding provides a community standard of care for medical, dental, and behavioral health care for over 14,000 inmates. Prison Operations: The purpose of the Department of Corrections Operations division is to provide a safe, secure environment for offenders, and for staff to perform their duties and hold offenders accountable for their actions while reducing the risk of future criminal behavior. This program operates 15 facilities across the state to house over 14,000 inmates at any one time. DOCs success in keeping convicted felons securely incarcerated for the duration of their sentence is a key part of keeping Oregonians safe where they live, work and play. The Governors budget equals $679.8 million for this program. This level of funding is sufficient to provide security and basic needs for an average of 14,470 inmates during the 2013-15 biennium, equal to the peak population during the 2011-13 biennium. This budget assumes that policy actions are taken to limit the inmate population to the number present at the start of the biennium. Private Security and Investigators Standards and Training: The purpose of the Private Security and Investigators program within the Department of Public Safety Standards and Training is to certify and license private security providers and private investigators according to established standards, regulates professional standards compliance and issue certifications for qualified instructors. The program focuses on education, technical assistance and enforcement to maximize industry awareness and compliance with the law. Goals for the Private Security program are to increase the professionalism of the industry and its employees, to improve the general image of private security providers and to promote cooperation between private security providers and law enforcement. By maintaining processes requiring formal applications for certification, criminal history searches and formalized training, the program is able to effectively eliminate career criminals from the industry, decrease the number of unidentified providers, and reduce injuries to officers and potential liability for employers. The Governors budget for this program is $2.1 million, which is funded by industry imposed fees. There are currently more than 15,000 private security officers and about 600 private investigators. On average
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there are 3,700 newly certified private security officers and 130 new private investigator applicants per year with another 4,500 officers and 225 investigators renewing each year. Psychiatric Security Review Board: The Psychiatric Security Review Board protects the public through the on-going review of the progress of both adults and juveniles who have successfully asserted the insanity defense to a criminal charge who could pose a substantial danger to others. In 2010, it also became responsible for conducting relief hearings for persons with a mental health determination who are barred from possessing a firearm who petition for restoration of that privilege. The Governors budget for this program is $2.6 million total funds. The vast majority of the funds are from the General Fund. In the past several biennia, the board has received Other Funds in the form of a federal grant through the Oregon State Police. That grant is expected to expire in 2013. The Governors budget will allow the board to serve about 700 clients under its jurisdiction and supervise approximately 600 clients on conditional release during the 2013-15 biennium. This number of clients is approximately 150 fewer clients than the board served in 2011-13. Psychologist Examiners, Board of : The Board or Psychologist Examiners exists to ensure the ethical and legal practice of psychology. It accomplishes this by examining and licensing all persons who engage in the practice of psychology. In addition, the Board pursues all complaints relating to the unethical, unprofessional, or unlicensed practice of psychology in Oregon. The Governors budget for the Board is $1.0 million, which is wholly supported from licensing fees, applications, examinations, and other miscellaneous sources. Each year the Board processes approximately 90 applications for licensure; administer a jurisprudence examination to 125 candidates; and process 800 license renewals. Approximately 70 complaints are reviewed and investigated annually. Rail: The Rail Safety program within the Department of Transportation ensures compliance with state and federal regulations related to railroad track, locomotives, cars, hazardous material transport, employee safety, operating practices and rail transit safety. This program is critical to reduce the potential for derailments, accidents and the potential release of hazardous materials. The Crossing Safety program enforces state statutes and administrative rules as well as federal laws and regulations related to crossing safety. This program has regulatory authority over all public highway-rail crossings in the state. Crossing Safety staff works cooperatively with railroad companies, state, federal and local government agencies and the general public to address crossing safety concerns and participates in transportation planning activities to improve the mobility of highway and rail traffic. The Rail Safety Program strives to ensure safe workplaces for railroad workers through a combination of workplace and equipment inspections, enforcements and education. These actions increase railroad worker safety levels and help to minimize derailments, thus reducing the possibility of accidental releases
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of hazardous waste materials. The Crossing Safety Program maximizes safety for Oregon citizens through regular inspections of public, at-grade and grade-separated crossings and enforcement of all state and federal safety requirements regarding those crossings. In 2011, there were 16 derailment incidents, a decrease from the 23 derailments that took place in 2010. Over the past seven years, derailment incidents have decreased by 79 percent after reaching a peak in 2004 The Governors budget for Rail Safety is $62.1 million total funds. A portion of Rail Safety is funded by an assessment on all railroads based on their annual gross operating revenues generated in Oregon. A second portion is funded by an assessment to four transit districts based on Rail Safetys costs to administer the program. Federal highway funds are also a source of revenue for Rail. The budget continues support for existing programs and with the delivery of the new Talgo train sets makes and investment in funding the operation and maintenance of the passenger rail program. Real Estate Agency: The Oregon Real Estate Agency is responsible for licensing, education and enforcement of Oregons real estate laws applicable to brokers, property managers and escrow agents. The agency develops educational and examination statistics for licensees, provides educational services, issues and renews real estate licenses, investigates complaints and takes administrative actions against licensees who violate the law. The agencys regulatory efforts in education, licensing, and enforcement protect Oregon real estate consumers. The Governors budget for this program is $7.1 million Other Funds. Revenues are derived from licensing and registrations, primarily comprised of fees paid for professional licenses by brokers, principal brokers and property managers. The agency also receives land development fees. In each of the past two biennia the agency has been able to achieve 90 percent compliance within 45 days of a mail-in compliance review for principal brokers and property managers. The Governors budget will support about 19,000 license renewals and applications during the 2013-15 biennium. Self Sufficiency Family Support and Connections: Family Support and Connections (FS&C) within the Department of Human Services is a child abuse and neglect prevention program that provides services through home visits. These families are eligible for the Temporary Assistance for Needy Families (TANF) program, a safety net program that provides cash assistance to parents. FS&C services are generally provided to families with barriers or issues that put them at a higher risk of involvement with the Child Welfare system. Services are provided through contracts with local community organizations. The services focus on strengthening parenting and family stability, and decreasing the risk factors for child abuse and neglect to prevent children on TANF from entering the foster care system. Through home visits, families develop relationships with a community organization that can effectively assess the familys environment to best understand its needs and connect the family with the appropriate resources in its community. This programs goal is to increase family stability and child safety. Child Welfare Program delivery and design provides the personnel to administer, design and deliver child safety supports through abuse
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investigation, service identification and procurement, family development and reunification where possible, or alternative child safety planning when necessary. The Governors budget for the program is $4.3 million total funds. Revenue is derived from the General Fund, TANF federal funds, and grant funds. Speech-Language Pathology and Audiology, Board of Examiners: The State Board of Examiners of Speech-Language Pathology and Audiology regulates the practice of SpeechLanguage Pathologists (SLPs), Speech-Language Pathology Assistants (SLPAs) and Audiologists in Oregon. The Board regulates these professions through reviewing credentials for licensure, ongoing monitoring of licensees through compliance audits, and investigating complaints regarding professional competence and conduct. The Boards mission is to protect the public as it relates to the practice of speech-language pathology and audiology. Board functions address professional competence and professional conduct, focusing on remediation and prevention. Licensees provide services to children, seniors, and disabled and/or vulnerable adults. The Boards education, advocacy and regulatory efforts protect citizens from harm when they are patients within the Oregon health care system. The number of licensees has risen from 1,318 in 2001-03 to over 1,900 in 2011-13. The number of investigations opened has also increased during that time from five cases in calendar year 2002 to 100 cases in calendar year 2011. The Governors budget for the board is $0.6 million total funds, which is derived principally from license fees. The budget will support the Boards work in licensing approximately 2,073 licensees in 2013-2015. The budget also provides enhancements by providing funding, through proposed fee increases, to allow the Board to deal with the increase in workload related to the growth in licenses and complaints being filed. State Fire Marshal: The Office of State Fire Marshal protects citizens, their property and the environment from fire and hazardous materials by supporting and collaborating with local fire departments and other safety organizations. The program is segmented into seven units including: Fire and Life Safety Services; Fire and Life Safety Education; Administration; Emergency Response; Emergency Planning; Data Services; and Licensing and Permits. The Governors budget equals $21.2 million total funds. Program funding is derived from a tax on casualty insurance, as well as fees on petroleum loads and hazardous substances. The programs performance is primarily measured by the number of residential fire fatalities per million population. In recent years, actual fire fatalities have held stable at between seven and eight per million population. As the Governors recommended budget maintains funding at current service levels, the program is projected to sustain this level of performance over the ten-year horizon.

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State Police Information Services: Criminal Justice Information Services maintains Oregons repository of criminal offender records, law enforcement information, and the infrastructure necessary for immediate and secure access of these confidential records. This program provides sole-source, critical support to all aspects of public safety allowing for agencies to report, access, investigate and share information regarding criminal activity locally, statewide and nationally in order to ensure the safety of all citizens. Additionally, access to this data for non-criminal justice applicant purposes is required by law for agencies with the regulatory responsibility to ensure vulnerable citizens they serve are safe within state programs and applicants they employ or license are screened using the very best information available. Data exchanged through this program is designed to enhance officer safety and law enforcements ability to address issues that arise within todays mobile society. It is critical that program data is available twenty-four hours, seven days a week. The Governors budget for this program equals $22.9 million total funds, of which $8.7 million is General Fund. This level of funding maintains current service levels for all aspects of the program. The primary performance metric for the data clearinghouse is the percentage of time that the system is available to users. In recent years, the systems performance has exceeded 99.99 percent, and is expected to continue to do so given this level of investment. Substitute Care: The Department of Human Services Substitute Care program also known as the Foster Care Program, is designed as a critical safety net for children with immediate safety needs. The Department is responsible for accepting and caring for children who cannot remain safely with their parents. These children are dependent, neglected, mentally or physically disabled, and placed in the legal custody of the Department by a court. A family, under limited circumstances and for a short time, may place a child in State custody on a voluntary basis; however, most of the children served in foster care are there involuntarily as a result of abuse or neglect they experienced in their family home. The program is aimed at increasing family stability and child safety. Substitute Care programs are necessary to ensure safety for children if and when they are unable to remain safely in their families. The program serves approximately 13,000 children annually who are abused or neglected. The figure also includes about 50 percent of the developmentally disabled children in Comprehensive Care. Currently, approximately 64 percent of children entering care return home to a parent. There are approximately 4,673 Oregon families who have stepped forward to be a foster parent. More than 50 percent are relatives or friends of families with children in foster care. There are approximately 45 licensed private child placing agencies in Oregon who are caring for children and youth, most often because the child or youth has a significant behavior or mental health need. An average of 8,778 children are in substitute care programs on any given day with 38 percent being cared for by relatives, a 15 percent increase in the last five years.

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The Governors budget for the program is $200.4 million total funds. Revenue is derived from the General Fund and from various resources at the U.S. Department of Health and Human Services. The budget supports the continuation of existing programs. Tax Practitioners, Board of: The State Board of Tax Practitioners is a consumer protection agency that regulates approximately 5,900 licensees who are paid to prepare, counsel, or assist in preparing personal income tax returns. The board also ensures licensure applicants meet the minimum qualifications, issues tax preparer and tax consultant licensees, and investigates complaints about tax preparers and any possible unlicensed activity in Oregon. Continuing education is pivotal for tax professionals to stay informed with changes in tax laws to avoid unintentionally giving inaccurate advice to clients. Oregon licensed tax practitioners are well educated as the number of continuing education hours have consistently exceeded the required 30 hours by more than 20 percent for the last five years. The Governors budget for this program is $1.2 million Other Funds. The Board is funded entirely with Other Funds revenue generated primarily by license and business registration fees, examination fees, and the assessment of civil penalities. The Goveners budget for 2013-15 will support the Boards efforts to help prevent fraud against Oregon taxpayers by ensuring licensed tax practitioners are highly competent and ethical in their professional activities. Transportation Capital Improvements: The Capital Improvement program (ODOT) provides additions and/or enhancements to existing facilities for the Department of Transportation projects less than $1,000,000. In order to maintain, preserve, repair and restore existing highways to keep them safe and useable for travelers, ODOT requires efficient facilities that are capable of housing modern equipment and machinery, and supporting highway maintenance activities. The Capital Improvement program uses a prioritized statewide schedule that addresses the most critical needs. The Capital Improvement program is the program that provides a safe work environment and reduces the adverse environmental impacts of the Departments operations. The Capital Improvement program also maintains and enhances operations centers and facilities which facilitate radio communication between Department crews and other agencies such as the Oregon State Police. The Governors budget for Capital Improvement is $3.3 million total funds. The funds come from the Highway Fund. The budget allows the Department to continue to address life, health, safety, and American with Disabilities Act requirements. Transportation Safety: The Transportation Safety program within the Department of Transportation works with many partners to organize, plan and conduct a statewide transportation safety program. The program promotes transportation safety through education, enforcement, emergency medical services and engineering.

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The safety program provides resources to communities to prevent both physical harm and property damage from automobile and motorcycle accidents, through focusing on behaviors that contribute to such accidents. These programs lead directly to Oregonians being safer on its roads and highways. The number of traffic fatalities per 100 million vehicle miles traveled has steadily declined from 1.31 in 2003-2005 to .92 so far in 2011-2013. The Governors budget for Transportation Safety is $32.4 million total funds. The funding through is derived through a variety of resources. Fees charged by the Driver and Motor Vehicle Division, the Transportation Operating Fund (non-highway tax dollars), and grants from the Federal Highway Administration and the National Highway Transportation Safety Administration. The budget continues support for existing programs. Utility Regulation: The Utility program is the technical and analytical arm of the Public Utility Commission. It consists of a professional staff that analyzes all utility filings, helps build a factual record in contested case proceedings, investigates and recommends policy options, inspects utility facilities, and undertakes many other activities needed for the Commission to carry out its mission and serve ratepayers. The Utility Program serves approximately 1,396,500 customers of investor-owned electric utilities; 760,886 customers of investor-owned natural gas utilities; 1,151,639 customers of incumbent local exchange carriers (telecommunications); and approximately 25,000 customers of investor-owned and associated water/wastewater companies. Services are provided daily through rate and other investigations. No other state or federal agency has the statutory authority to perform these functions. The Utility program is responsible for overseeing the safe, reliable, and secure operation of electric power and natural gas supply networks and hundreds of thousands of miles of telecommunications lines located throughout Oregon. The Utility program also establishes and enforces regulations, promotes practices to ensure that the states utility rights-of-ways (both underground and overhead) are constructed, operated, and maintained in a safe and efficient manner. The program is organized by industry and function. Electric and Natural Gas the Commission is responsible for ensuring that investor-owned or commission-regulated private electric (PGE, PacifiCorp and Idaho Power) and natural gas utilities (NW Natural, Avista and Cascade) offer safe and reliable energy at just and reasonable rates. Telecommunications the Commission promotes competition in local telecommunications markets while maintain strong regulatory oversight to achieve the state goals for telecommunications services to Oregonians.

The Commissions programs ensure that every citizen, regardless of social status or economic condition, has the security of knowing that their personal and financial safety in regards to regulated public utilities is strongly protected. Between 2007 and 2011, the Commission has saved customers from between $76.3 million to a high of $146.9 million per year through its rate case proceedings. The Governors budget for the Utility program is $97.8 million total funds which is derived primarily from the Oregon Universal Service Fund (OUSF), which is a charge that telecommunication service providers in Oregon pay. The OUSF is expanded to eligible telecommunications carriers to keep the price of basic service reasonable in areas of the state where costs are high.
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The operations ($16.0 million) of the Utility program are primarily funded through a Utility Fee (annual assessment on regulated, electric, natural gas utilities, water utilities, and telecommunications utilities. Finally, the Utility program receives Federal Funds ($2.4 million), primarily from the U.S. Department of Transportation for the Natural Gas Pipeline Safety Program. The budget supports the resources to continue operating programs as they currently exist into 2013-15 and provides an enhancement in Federal Funds to implement new safety measures associated with the passage of the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011. Veterinary Medical Examining Board: The Oregon State Veterinary Medical Examining Board licenses and regulates the practice of veterinary medicine in Oregon through the Veterinary Practice Act. The Board sets minimum practice standards for Veterinarians, Certified Veterinary Technicians (CVTs), and Certified Euthanasia Technicians; ensures that licensees meet essential and continuing education requirements; and adjudicates complaints alleging veterinary practice that falls below minimum standards. These actions ensure that animals in Oregon receive veterinary care that conforms to current medical standards and practices and is consistent with the best interests of the public; and that animal euthanasia in public and private shelters is conducted humanely. The Board licenses approximately 2,200 Veterinarians and 1,250 CVTs on an annual basis. The number of complaints has gone from 239 in 2001-03 to more than 300 so far in 2011-13. The complaints resulted in eight violations in 2001-03 to fifteen so far in 2011-13. The Governors budget for the Board is $0.7 million, funded principally from license fees. The budget will support the Boards existing workload associated with licensure, investigations and continuing education in. The budget also provides a fee increase (the first since 1993) in order to ensure the Board maintains adequate operating cash flow. Wage and Hour Enforcement: The Bureau of Labor and Industries Wage and Hour division defends the rights of workers to the wages earned and to a safe working environment by enforcing state minimum wage, prevailing wage, overtime, and working conditions laws. The division also protects the safety and wellbeing of children and farm and forest workers by enforcing child labor laws and farm/forest labor contractor laws. The Divisions programs and activities protect the safety and rights of Oregonians at work. The divisions services to low-income, at risk employees are critical in creating a working environment that is safe for all citizens. Moreover, enforcement of wage and hour laws is fundamental to creating prosperity opportunity for all Oregonians. Between the 2003-2005 and 2011-2013 (to date) bienniums the division, per biennium has: Issued between 8058 and 10,213 Child Labor Employment Certificates; Collected between $2.4 million and $3.8 million of wages on behalf of individuals; and Collected between $0.9 million and $2.3 million prevailing wage rates.
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The Governors budget for wage and hour is $7.7 million total funds, 33 percent of which is from General Fund. The remaining funds come from Farm/Forest Labor Contractor Licensing fees, Prevailing Wage Fees, and the Wage Security Fund (a fractional percentage diversion of employer paid unemployment taxes). The budget provides the resources to the Division to continue providing support at currently existing levels into 2013-15. Workers Benefit Fund: The Workers Benefit Fund within the Department of Consumer and Business Services supports a variety of programs that help injured workers and employers. The fund provides benefit increases to permanently and totally disabled workers and to families of workers who died as the result of a workplace injury or illness. The fund also supports Oregons return-to-work programs that help injured workers return to work quickly and earn close to their pre-injury wages. The Governors budget for this program is $193.2 million Other Funds. The Workers Benefit Fund receives its funding through a cents-per-hour assessment paid one-half by employees and one-half by employers, investment income, and civil penalties. The agency lowered the Workers Benefit Fund assessment rate to 2.8 cents per hour in 2007 and maintained that rate through 2012, saving Oregon employers and employees millions of dollars per year. For 2013 the assessment rate will increase to 3.3 cents per hour, in order for the Department to maintain a required fund balance. Workers Compensation Accounts (NonLimited) : The Department of Consumer and Business Services administers two reserve accounts: the Self-Insured Employer Adjustment Reserve and the Self-Insured Employer Group Adjustment Reserve. These accounts are intended to protect injured workers who work for employers that choose to self-insure their workers compensation liability. More than 10 percent of Oregon workers are employed by self-insured employers. If a self insured employer becomes insolvent or otherwise defaults on its workers compensation obligations, workers compensation benefits for the employers injured workers and their beneficiaries are paid out of the applicable fund. The Governors budget for this program is $1.5 million Other Funds. These accounts are funded solely by assessments to self-insured employers and self-insured employer groups. These reserve accounts are intended to cover all claim costs between the date a self insured employer or group defaults on a benefit payment to the date the agency attaches and deposit any security. Workers Compensation Board: The Workers Compensation Board within the Department of Consumer and Business Services ensures that Oregon workers, employers, and insurers have an efficient, effective, and expeditious mechanism by which to resolve dispute under the Workers Compensation Act and Oregon Safe Employment Act. The Boards proceedings remove disputes from the court system in to an administrative forum, allow for quick dispute resolution, and reduce prolonged and costly litigation. The Board is anticipating over 12,000 hearing and review requests during the biennium.
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The Governors budget for this program is $21.8 million Other Funds. The Workers Compensation Board receives its funding solely through an assessment paid by employers on the premiums they pay to their insurer for workers compensation coverage. For fiscal year 2011, 90 percent of the boards mediations resulted in settlement and 84 percent of its decisions were affirmed by the court of appeals. For the upcoming biennium the board will work to reach its target of 96 percent of decisions being affirmed by the court of appeals. Workers Compensation Insurance Regulation: The Workers Compensation Division within the Department of Consumer and Business Services supervises and enforces workers compensation insurance laws. The division funds programs that help injured workers and employers. It also funds the administrative costs of the Management-Labor Advisory Committee. This committee considers various aspects of the workers compensation system and reports findings to the Director and the Legislature. The Governors budget for this program is $40.7 million Other Funds. The Workers Compensation Division receives its funding through an assessment paid by employers on the premiums they pay to their insurer for workers compensation coverage and through investment income, civil penalties, and cents-per hour assessment for the administration of the Workers Benefit Fund programs. For fiscal year 2011 Oregon employers paid, on average, the 10th lowest workers compensation premium rates in the nation. For the upcoming biennium the agency will work to maintain Oregon as one of the lowest cost states for workers compensation. The agency is working to develop performance metrics to measure the quality of the benefits provided and outcomes to workers. Youth Authority Capital Construction: The Oregon Youth Authority is responsible for operating 10 locations to securely house and provide reformation, treatment, education, vocational training, and other services for youth offenders. The purpose of capital construction is to ensure the state provides the physical facilities needed to safely and securely manage these youth offenders. The major construction/capital construction/acquisition budget category includes acquisition or construction of any structure or group of structures; land acquisitions; and assessments; improvements and/or additions to an existing structure to be completed within a six-year period (with an aggregate cost of $1 million or more); and planning for proposed future capital construction projects. The Governors budget equals $5.1 million total funds. This level of funding provides for critical security upgrades and ongoing deferred maintenance on youth correction facilities. The funding is derived entirely from bond sale proceeds during the 2013-15 biennium. Youth Authority Capital Improvements: The Oregon Youth Authority (OYA) is responsible for operating 10 locations to securely house and provide reformation, treatment, education, vocational training, and other services for youth offenders. The
2013-15 Governors Balanced Budget D-40 Safety Outcome Area

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purpose of capital improvements is to safeguard the states investment in OYA-managed capital assets. The Capital Improvements budget category includes construction of any structure or group of structures; land acquisitions; and assessments, improvements, and/or additions to an existing structure with a cost of less than $1 million. The state, through OYA, owns 104 buildings at 10 locations. The replacement value of the buildings is estimated at $188 million. The majority of these structures provide secure housing for youth offenders. The remainder is used for education, vocational training, recreation, administration, and support services. The Governors budget includes $0.8 million for capital improvements. This is a 6.1 percent increase from the prior biennium. This level of funding supports the most critical deferred maintenance for youth correctional facilities. The funding is derived entirely from General Fund. Youth Authority Community Programs: The Community Services program of the Oregon Youth Authority provides public safety, youth offender accountability, and reformation services for juvenile offenders in communities throughout Oregon. This is accomplished through partnerships with Oregons county juvenile departments, community providers, and other stakeholders promoting effective communication, shared planning, efficient service delivery, and use of best practices. Services include parole and probation services, residential and youth offender foster care, individualized community services, county diversion, juvenile crime prevention, and youth gang services. The Governors budget for the Community Services program is $128.6 million, including $89.1 million General Fund. This level of funding supports 658 beds of residential treatment, as well as maintaining current levels of juvenile crime prevention and diversion services at the county level. This investment in community-based services will allow the agency to meet or exceed targets for youth leading crime free lives upon departure from OYA placements. Youth Authority Debt Service: The purpose of debt service is to enable the Oregon Youth Authority to repay principal and make interest payments on Certificates of Participations issued to build and repair youth correctional facilities. The Governors budget equals $2.0 million, which is sufficient to pay all principal and interest due during the 2013-15 biennium. Youth Authority Facility Program: The Oregon Youth Authority (OYA) Facility Services is responsible for the care and custody of approximately 750 youth in 10 close custody correction and transition facilities. OYA facilities serve males and females adjudicated and committed by the juvenile courts and all youth committed to the Oregon Department of Corrections (DOC) by district courts for offenses committed prior to age 18. Youth committed to OYA by juvenile courts comprise approximately 49 percent of OYAs close custody population, with adult commits making up the remaining 51 percent. OYA retains jurisdiction for juvenile offenders and physical custody of DOC offenders up to age 25.
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Youth in OYA close custody facilities have committed very serious offenses or have lengthy offense histories and have exhausted community-based supervision and service options. These youth present a broad range of complex and acute disorders and skill deficits requiring intensive intervention and treatment services. Comprehensive evidence-based and best-practice treatment programs focusing on cognitive behavioral change, gender-specific needs, sexual offending, drug abuse/dependency, mental health, and independent living skills are provided at group and individual levels by Qualified Mental Health Professionals and Group Life Coordinators. The Governors budget for the Facilities program is $160.8 million total funds, of which $151.6 million is comprised of General Fund. This level of funding supports 750 close custody beds. In recent years, the rate at which released youth remain crime free has held steady at 71 percent. The investment in maintaining close custody capacity, along with commitment to data-driven, best practices in service delivery will allow the agency to continue to meet its performance targets.

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Jobs and Innovation

JOBS AND INNOVATION OUTCOME AREA


10-YEAR GOAL: Oregon has a diverse and dynamic economy that provides jobs and prosperity for all Oregonians.
2011-13 Leg Approved Budget General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $324,757,822 $213,508,647 $3,148,309,190 $809,683,076 $2,727,093,063 $1,043,757,360 $8,267,109,158 5,943 5,204.92 2013-15 Governors Budget $375,346,341 $235,457,776 $3,447,299,541 $718,736,468 $2,257,345,552 $150,590,361 $7,184,776,039 4,796 4,294.93

2013-15 Budget Overview


The Governors budget addresses the immediate challenge of creating jobs now while positioning Oregon to be more competitive in the global economy of the 21st century. It is fully aligned with the goals and strategies of the Oregon Business Plan, with an emphasis on driving the states per capita income back up above the national average. It seeks to erase the troubling income disparities which have existed for far too long in our communities of color and between urban and rural communities. Additionally, it aims to ease private investment and job creation in Oregon by expanding access to capital, streamlining the regulatory process and elevating local community priorities. The budget supports an emerging economy of innovation in Oregon that is rooted in our strengths our solid base in agricultural, timber and advanced manufacturing industries, our promising technology research and development and our strategic location on the Pacific Rim with access to world markets. Key elements of the 2013-15 Governors budget for Jobs and Innovation include: Over $1 billion for core infrastructure projects funds the Interstate 5 Bridge replacement, multi-purpose water projects, university buildings, airport, marine and rail improvements, seismic upgrades, and technology infrastructure projects that get Oregonians back to work. $90 million for proven innovation partnerships increases funding for the Oregon Innovation Council, Oregons Signature Research Centers and maintains university-based innovation, agriculture and forestry research initiatives.
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Increases the Earned Income Tax Credit by 30 percent helps working families keep more of what they earn. Redesigns workforce training $10 million to better align programs with employers needs. Implements regulatory reforms streamlines permitting and removes barriers to private investment and job creation.

Outcome Area Overview


Though the private sector creates jobs, the public sector shapes the fertile environment that the private sector needs to build a vibrant and innovative economy based on Oregon values. Policy makers must be intentional about creating opportunities for Oregons small and medium homegrown businesses, Oregons entrepreneurs, Oregons universities and spin-offs from traded-sector companies strengthening Oregons economy from the bottom up. A robust economy with ample mid-to-high income jobs is the foundation for Oregons high quality of life and is necessary to fund quality education and other public services. Adequate public infrastructure and services in turn, are necessary to support Oregons growing economy. This virtuous circle of prosperity will be the foundation upon which the state will build all initiatives to improve Oregon. Policymakers will accomplish this by engaging the private sector through the Oregon Cluster Network and the Oregon Business Plan, Oregons research institutions, which drive innovation, and the formal structure of economic development agencies and networks. The network of entities that support economic development include Business Oregon (and related entities, such as the Oregon Innovation Council), the Oregon Department of Agriculture, Regional Solutions Centers, Small Business Development Centers, regional economic development entities, ports, chambers of commerce, federal agencies such as the U.S. Department of Agriculture, the Small Business Administration, universities, community colleges, and workforce entities, including the Oregon Entrepreneurs Network and local development funders. To support the private sector in Oregon, the chain of innovation must begin with Oregons research institutions and related efforts, such as commercialization efforts through the Oregon Innovation Council (Oregon InC). The state supports these efforts by helping with deployment of new technologies, fostering a strong environment for manufacturing and marketing, and helping train a skilled workforce. With less enhanced public resources on the horizon, policy makers must ensure this cycle is integrated and streamlined. Building a world class workforce development and training program in Oregon is one of the best ways for the public sector to get Oregonians back to work in the short term and sustain a vibrant economy over the long term. The current array of programs is insufficient to meet the demands of the future, and this budget, with associated future reforms, marks the start of building a workforce development system that has the capacity and flexibility to meet the needs or Oregons employers. In addition, Oregon must protect, preserve and invest in its infrastructure assets. The state has a backlog of improvements it must make to its existing traditional infrastructure, as well as an interest in growing investment in new infrastructure capacity, such as smart grid and broadband data capacity, water resources, transportation and sophisticated waste management. Ensuring stable and modernized
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manufacturing and transport infrastructure for the forest products and agricultural industries is also critical to maintaining Oregons strong resource-based economy that is pivotal for our rural communities as well as forest and rangeland health. Solving deficits of available funding in these areas will require Oregon to use its public dollars to leverage much more private capital. In order to do so, policy makers must identify opportunities and capital gaps and develop a mechanism for aggregating resources. This will involve state agencies with significant roles in infrastructure development, such as the Oregon Department of Transportation and Business Oregon, engaging in a new structure and a broader, all encompassing view of public infrastructure.

Recommended Budget and Key Investments


The Governors Balanced Budget for Economy and Jobs is $7.2 billion total funds, $611 million General and Lottery Funds. While the total funds budget is $1.1 billion less than the 2011-13 Legislatively Approved Budget (LAB), because of the decreased unemployment insurance funds, the General Fund/Lottery Funds budget is $78 million above the 2011-13 LAB. Highlights of the Governors Economy and Jobs investments include: Interstate 5 Bridge Replacement The Governors budget invests $450 million of highway revenue bond proceeds towards the replacement of the bridge between Oregon and Washington on Interstate 5 (I-5). The investment advances Oregons portion of the project. The bridge replacement is a long-term comprehensive solution to problems on I-5 near the Columbia River. The project will provide new travel options and an improved highway to support jobs, the regional economy and future growth. ConnectOregon V The Governors budget includes $60 million of Lottery and General Fundbacked bond proceeds for ConnectOregon V. ConnectOregon V is designed to build upon the success of previous ConnectOregon programs I IV. This program advances multi-modal transportation in Oregon to improve the freight, rail, marine, aviation, and transit systems to support and improve Oregons economy. Oregon InC The Governors budget invests $25 million Lottery funds in the Oregon InC, housed at Business Oregon. Oregon InC is a public-private board that brings together leaders from private business and the states research universities to develop and drive the states innovation strategy. Oregon InC develops, champions and implements strategic initiatives that help make existing Oregon companies more profitable, competitive and sustainable. Oregon Investment Act The Governors budget provides $5 million Lottery funds to provide seed capital for the Oregon Growth Board to leverage and invest in qualified Oregon businesses. This funding could include support for investments across the capital continuum, including early stage companies, venture capital and later-stage growth investments. Regional Solutions The Governors budget provides $56 million in Lottery-backed bond proceeds to fund local, regional and statewide economic development projects in infrastructure investments. Regional Solutions will develop a regional, multi-state financing mechanism that can attract and leverage private funds to invest in identified infrastructure projects.
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Water Supply Strategy The Governors budget provides $22 million of bond proceeds and $2.4 million of General and Lottery funds for water resources development and management, moving Oregon into a proactive role in identifying and guiding major opportunities for new storage, conservation, and habitat improvement. The Healthy Environments outcome area contributed $1.1 million to this investment. Workforce System Innovation The Governors budget provides $10 million for initiatives specifically designed better align the skills of those seeking work with the needs of businesses interested in hiring. These initiatives will assure that more Oregonians have the foundational and problem solving skills to compete for jobs in growing businesses, are able to gain industry specific training, and build industry partnerships to better align all investments into a skilled workforce. Temporary Assistance for Needy Families (TANF) The Governors budget provides $46 million General Fund to replace one-time federal revenues, used in 2011-13 for the TANF and Job Opportunity and Basic Skills (JOBS) programs. This funding level implements a three-year eligibility time limit. Earned Income Tax Credit (EITC) The Governors budget provides an additional $22 million for the EITC. Low income working families will now have more money in their pockets. Oregons EITC is currently six percent of the federal EITC, one of the lowest in the country. This increase brings Oregons EITC up to eight percent of the federal, a long overdue increase since the EITC was established in 1997. This is money that gets spent by working families in local communities. The EITC rewards work, reduces income tax liability for low income families and reduces poverty. Seismic Grants The Governors budget provides $30 million of Seismic Rehabilitation Grant Bond proceeds to fund seismic rehabilitation of public education buildings and of emergency services buildings. These bonds will be repaid with General Fund, although no debt service is anticipated in the 2013-15 biennium due to the bonds sale late in the biennium. The rehabilitation projects strive to prevent loss of life in schools and continued operations of emergency services buildings during and following a large earthquake. Wildfire Protection Act The Governors budget invests up to $3.6 million of General Fund as part of an increase in resources to control forest fires while they are still small. The proposal also includes a phased-in increase in General Fund responsibility for payment of large-fire costs over several biennia. The proposal results in a reduction of Eastern Oregon landowner assessments for fire prevention in order to help sustain that segment of the states forest products industry while efforts to increase timber harvests in that area are developed. Gilchrist State Forest Acquisition The Governors budget invests $0.8 million Lottery funds for debt service and $7.6 million of Lottery bond proceeds that will be added to an existing $2.0 million of Lottery bond proceeds to purchase 25,754 acres of forestland adjacent to the existing Gilchrist State Forest. This purchase completes the acquisition of 69,143 acres of Central Oregon forestland that will be managed to maintain and improve environmental conditions and to support the timber industry and recreation.

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Forest Collaboratives The Governors budget provides $4.5 million of Lottery-backed bond proceeds to fund the implementation of forest collaborative projects to increase timber supply to mills in central and eastern Oregon. The state intends that this funding will be contingent on commitments by the U.S. Forest Service to provide land-term supply agreements for key mills in this part of the state. The budget also provides $1.6 million in Lottery-backed bond proceeds for efforts to provide a sustainable supply of timber from federal Oregon California Revested Grantlands (O&C lands). State Fair The Governors budget maintains funding of $3.8 million Lottery funds for the operations of the Oregon Exposition Center (State Fairgrounds).

Jobs and Innovation Programs


Page E-7 E-7 E-8 E-8 E-8 E-9 E-9 E-10 E-10 E-11 E-11 E-12 E-12 E-12 E-13 E-13 E-14 E-14 E-15 E-15 Program Agricultural Experiment Station Agriculture Market Access and Development Aircraft Registration Airport Capital Construction Airport Pavement Maintenance Alcoholic Beverage Public Safety Services Prog Aviation Operations and Oversight Basic Rehabilitative Services Blind Rehabilitative Services Bridge Inspection and Preservation Business and Employment Services Business Development Lottery Bond Debt Service Business Enterprises for the Blind Business, Innovation, Trade CCWD Federal and Other Support Clean Water Revolving Fund Construction Contractors Board Distilled Spirits Program Energy Development Services Environmental Quality Cross Program/Regional Solutions GF/LF 51.8 4.4 16.4 0.5 56.4 70.4 3.4 0.7 OF/FF 20.9 0.1 0.4 2.0 17.0 4.1 66.9 7.9 372.3 105.4 5.0 0.7 32.0 112.5 111.9 15.9 21.9 198.5 1.2 Total funds 51.8 25.3 0.1 0.4 2.0 17.0 4.1 83.3 8.4 372.3 105.4 61.4 0.7 102.4 112.5 111.9 15.9 21.9 201.9 1.9

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Jobs and Innovation Programs (continued)
Page E-16 E-16 E-16 E-17 E-17 E-17 E-18 E-18 E-19 E-19 E-19 E-20 E-20 E-21 E-21 E-22 E-22 E-22 E-23 E-23 E-24 E-24 E-24 E-25 E-25 E-25 E-26 E-26 E-27 E-27 E-27 E-28 E-28 E-29 E-29 E-30 Program Film and Video Fish & Wildlife Debt Service Fish Hatchery Management Fishery Capital Improvements Food Safety and Consumer Protection Forest Fire Protection Forest Research Laboratory Forestry Debt Service Forestry Capital Construction General Aviation FAA Entitlement Program Highway Modernization Highway Preservation Infrastructure Financing Authority Labor Apprenticeship and Training Labor Commissioner's Office/Program Support Liquor Facility Capital Improvements Liquor Store Operating Expenses Local Government Transportation Funds Marine Facility Programs Nonlimited Unemployment Fund Oregon Exposition Center (State Fair) Orientation Center for the Blind Public Transit Racing Commission General Program Self Sufficiency - TANF/JOBS Programs Siting Energy Facilities State Forest Lands Management State Police Gaming Division Transportation Capital Construction Transportation Debt Service Transportation Infrastructure Fund Transportation Program Development Transportation Special Programs Unemployment Insurance Administration Veterans' Home Loan Program Veterans' Services Program
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GF/LF 1.2 0.4 5.1 0.1 6.1 38.3 5.7 6.2 4.7 2.8 3.5 3.8 0.3 2.0 203.8 0.5 96.0 7.8

OF/FF 2.4 51.8 4.3 18.5 79.7 1.8 10.1 4.2 824.6 249.3 372.3 2.1 3.1 0.2 95.2 367.3 10.8 1,758.9 12.2 2.1 98.2 5.4 230.9 5.7 90.2 9.9 18.2 485.7 0.0 242.3 224.0 132.4 15.3 0.9

Total Funds 1.2 2.8 56.9 4.4 24.6 118.0 5.7 8.0 10.1 4.2 824.6 249.3 377.0 4.9 6.6 0.2 95.2 367.3 10.8 1,758.9 16.0 2.4 100.2 5.4 434.7 6.2 90.2 9.9 18.2 581.7 0.0 242.3 224.0 132.4 15.3 8.7

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Jobs and Innovation Programs (continued)


Page E-30 E-30 E-31 E-31 E-31 Program Water Development Loan Program Water Resources Administrative Services Water Resources Field Services Water Rights and Adjudications Workforce and Economic Research GF/LF OF/FF Total Funds 13.7 13.7 5.4 11.9 17.3 9.7 2.1 11.8 3.4 4.3 7.7 15.4 15.4

Jobs and Innovation Programs


Agricultural Experiment Station: The Oregon University System Agricultural Experiment Station (AES) is the principal agricultural and related natural resources research agency of the State of Oregon. Its mission is to conduct research to solve problems and generate innovations in the agricultural, biological, social, and environmental sciences for the social, economic, and environmental benefit of Oregonians. AES research stations are located in Astoria, Aurora, Burns, Central Point, Corvallis, Hermiston, Hood River, Klamath, Madras, Moro, Newport, Ontario, Pendleton, Powell Butte, Portland, and Union. The stations provide local research capacity and on-going partnerships with local and regional communities to help ensure the sustainability and enhance the resilience of Oregons agricultural, fisheries, food systems, rangelands, and related industries and communities that depend on them. The Governors budget includes $51.8 million General Fund, unchanged from the 2011-13 Legislatively Approved Budget level. At this level of funding, the program will attempt to maintain staffing levels, stations, and external grant support using federal grants and revenues from sale of products and services. Agriculture Market Access and Development: The Market Access, Development, Certification/Inspection Policy Area in the Department of Agriculture assists Oregons agricultural producers successfully sell and ship products to local, national and international markets. The marketing portion of the program works to promote and create demand for Oregon agricultural products. The inspection and certification portion of the program adds value by providing services to facilitate product movement and overcome trade barriers and technical constraints that affect the agriculture traded sectors. The policy area functions statewide across rural and urban areas alike to create jobs and sustainable opportunity for the states $5.3 billion agricultural sector. The Governors budget for this program is $25.3 million, which includes $4.4 million General Fund as well as license and registration and service delivery fees and federal funds. The recommended budget will fund 205 positions and will continue the programs current level of operations while also adding the Predator Control and Livestock ID programs that transferred from the Food Safety/Consumer Protection
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Policy Area of the Department. The program will continue to maintain high standards for timely issuance of certifications following completion of audits as well as continued promotion of Oregon agricultural products. Aircraft Registration: The Aircraft Registration Program of the Oregon Department of Aviation Registers over 4,300 aircraft per year and is responsible for approximately eight percent of the agencys revenues. This division provides the front line contact with Oregons pilots and aircraft owners. The revenue collected for aircraft registration helps fund the operational aspects of aircraft registration and provides the ten percent match required for Federal Aviation Administration grants. The Aircraft Registration Program is integral in supporting the programs that impact Oregons economy in that it is a revenue generating program that provides necessary funding for projects in the Departments other programs (General Aviation Entitlements). Revenue collected from aircraft registration has increased over the years from $425,860 in 2001-2003 to $568,293 in 2011-2013. The Governors budget for this program is $0.1 million total funds. The aircraft registration fees fund the program as well as provide the ten percent match for General Aviation Entitlement Programs. The budget continues support for the program as it currently exists, which includes one position. Airport Capital Construction: The Capital Construction program of the Oregon Department of Aviation exists to develop, improve and maintain all 28 state-owned public use airports for all designated aviation uses including business, corporate, community access and emergency (disaster relief, firefighting, Medevac, etc.). Capital Construction projects are those that exceed one million total dollars. The Capital Construction program is integral in supporting Oregons economy in that capital construction projects result in job creation within the construction and engineering industries. The program also enhances critical Oregon infrastructure. The Governors budget for this program is $0.4 million total funds; 90 percent of these funds are granted to the Department by the Federal Aviation Administration. The remaining ten percent is the required match amount and is derived from aircraft registration fees. The budget supports an enhancement specifically for the Cottage Grove State Airport, which is in need of a complete reconstruction of its runway. The budget will provide funding necessary to conduct design engineering of the project. Airport Pavement Maintenance: The Pavement Maintenance Program of the Oregon Department of Aviation assists airports in undertaking pavement preventative maintenance, with the purpose of extending the life of airport pavement. This is the most cost-effective means to help preserve the systems airport pavement and pavement infrastructure as addressed in the Oregon Aviation Plan. The program evaluates airport pavement at one third of the states public use paved airports per year. The year following evaluation, airports that agree to have work done get scheduled for pavement maintenance work with contractors
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hired by the Department. The contractors work on an average of fourteen airports per year. There are 66 paved public use airports in the state. This program creates an estimated 50 construction and engineering jobs annually and also increases the long-term investment in Oregon transportation by preserving and extending the life of airport pavement. Furthermore, the Department has split the contracts into smaller units in order to encourage underrepresented communities and disadvantaged businesses to be able to compete more effectively. The Department commissioned a ten year study of the effectiveness of the pavement maintenance program and a draft form of the study shows that, on average, the program doubles the life expectancy of an average runway (from 20 to 40 years). This increase in average runway life expectancy helps airports avoid costs that they would otherwise incur, by keeping the airports from having to do complete runway renovation projects. Beginning in the 2001-2003 biennium and ending in the 2011-13 biennium, the Department has maintained the number of runway pavements in good or better condition at 77 percent to 92 percent. The Governors budget for the Pavement Maintenance program is $2.0 million total funds. These funds are derived from the fuel tax that is transferred into the Department from the Oregon Department of Transportation. The Department utilizes 45 percent of its gasoline and jet fuel tax revenues to support this program. The budget continues support for the program as it currently exists. Alcoholic Beverage Public Safety Service Program: The Oregon Liquor Control Commission Public Safety Program regulates the manufacture, distribution and sale of alcoholic beverages. Regulating the business of selling and serving alcohol is essential for minimizing alcohol-related risks to society. Alcohol abuse is widely recognized as causing and contributing to social and health problems including crimes of violence, domestic abuse, and drunk driving. Protecting youth from alcohol also is important. OLCC issues licenses, oversees permits to serve alcohol, regulates licensees and permittees, and educates them to sell and serve alcohol legally and responsibly. This supports healthy businesses and employment for tens of thousands of people in Oregons hospitality and alcoholic beverage industries. The programs direct impact on Oregons economy and employment is marginal, although it supports a healthy social environment in which business and employment can thrive. The Governors budget for this program is $17.0 million, funded primarily through liquor sales, and supports 94 positions, including 49 inspectors. This budget continues the programs current level of operations and provides for control of the manufacture, distribution, and sale of alcohol. It meets the growing demand for liquor licenses and provides a high level of enforcement to prevent service of alcohol to minors. Aviation Operations and Oversight: The Oregon Department of Aviation supports Oregon communities by preserving and enhancing aviation within the state. The Oregon Department of Aviation serves the state of Oregon through its three-fold focus of advocating for the growth, improvement and safe operation of aviation in Oregon.

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The Operations Division is the heart of the Departments administration, maintenance, operations planning and community support. It includes most of the Departments staff and operates as the policy arm of the agency. It oversees the administration, operation, and maintenance of 28 state-owned public use airports through four program areas: Statewide Services, Airport Services, and Airport Maintenance and Planning. Operations also provides the core government services of the Department covering planning, land use, evaluation of tall structures at airports, inspections of airports and site survey of proposed new airports. The Governors budget for the board is $4.1 million total funds. The main source of funding is fuel tax revenue, which is transferred to the Department from the Oregon Department of Transportation. Other revenues include money from aircraft and pilot registration fees, aircraft dealer license fees, leases, tie down revenue and fuel flowage fees. The recession has had an impact on fuel tax revenues and required the Department to reduce staff by five positions in 2010. This budget supports continuing the current operational level and staffing (12 positions) of the Department, including the continuation of a federally funded position for capital improvement planning. Finally, the Department receives approximately 44 percent of its funding from the Federal Aviation Administration. With revenue continuing to decline, the Department will be faced with the need to increase revenues or cut programs as soon as the 2015-2017 biennium. Basic Vocational Rehabilitation Services: The Office of Vocational Rehabilitation Services (OVRS) within the Department of Human Services assists youth and adults with disabilities to obtains, maintain or advance in employment. OVRS services are designed to help clients succeed in jobs that enable them to live as independently as possible, reduce or eliminate their need for publicly funded benefits, and be fully contributing members of their local communities. Programs are provided through field offices across the state and provide specialized services that help clients be as self-sufficient as possible. Additionally, staff work in partnership with community organizations and businesses to develop employment opportunities for people with disabilities. OVRS assists individuals with disabilities to establish a foundation by identifying a personal vision, goals and steps necessary to achieve success in education and employment, and become independent, productive citizens. Included in this program is the nationally recognized Youth Transition Program which helps transition youth with disabilities to work or post-secondary education. The Governors budget for this program is $83.3 million total funds, which maintains current program structure and funding levels. The program is able to leverage federal Department of Education funding as well other funded grants. Blind Rehabilitation Services: The primary purpose of Rehabilitation Services within the Commission for the Blind is to help Oregonians with vision loss achieve their full potential. Individuals who are seeking assistance with employment receive counseling, assessment, skill training, and the provision of accessible
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equipment/tools. In addition, older blind Oregonians are taught the skills they need to live safely and independently. The result is that these individuals no longer need more intensive services such as assisted living or nursing care. This program supports two outcomes: first, that Oregonians are healthy and have the best quality of life at all ages; and second, that Oregon has a diverse and dynamic economy that provides jobs and prosperity for all Oregonians. The Governors budget anticipates serving 1,450 vocational rehabilitation clients, achieving 206 employment outcomes with an average hourly wage of $13.20. The Independent Living program will serve 1,724 individuals. The $8.4 million budget for these services is funded by the federal Rehabilitation Services Administration of the U.S. Department of Education. These funds require matching funds that come from the state General Fund, from cooperative agreements with educational partners, and from donations. The match rate for the vocational rehabilitation program is 4:1 federal to state dollars. For the independent living programs the match is 9:1 federal to state resources. Bridge Inspection and Preservation: The Bridge program within the Department of Transportation is responsible for the inspection, preservation, design standards, load capacity evaluation, and asset management of more than 2,700 highway bridges, overcrossings, railroad under crossings, tunnels and other structural elements. This work directly benefits the states economy by extending the life expectancy of bridges, reducing the number of bridges with weight restrictions, and limiting detours around structurally deficient bridges. Between 2007 and 2011, the percentage of bridges defined as not distressed increased from 72 percent to 76 percent. The Governors budget for the Bridge program is $372.3 million total funds. The funds come from the Highway Fund and the Federal Highway Administration. The budget reflects the completion of projects from the Oregon Transportation Investment Acts (OTIA) I, II, and III, which were aimed at limiting the net increase in structurally deficient bridges and limiting the net increase in bridges falling from good to fair condition. With the completion of the OTIA projects, this budget amount brings the Bridge program back to a base level of funding. Business and Employment Services: The Business and Employment Services program within the Employment Department connects Oregon employers and job seekers through iMatchSkills, an online job matching service, and other programs that represent almost one third of all job listings in the state. The department operates a network of 38 offices located in metropolitan and rural areas of the state. The unit provides training and reemployment services to workers adversely affected by foreign trade, and assists Oregon companies in securing tax credits for hiring individuals with barriers to employment. The program typically serves over 10,000 employers each year, and serves close to 500,000 job seekers annually. The recent recession has increased Oregons unemployment and created a lack of employment opportunities for Oregonians, increasing the demand for services from job seekers and decreasing the number of employers listing jobs. The Governors budget includes $105.4 million Other Funds and Federal Funds and 518 positions to support the unit. The budget includes funding for ongoing employment services under the U.S. Trade Act and for job placement services provided under contracts with public and private partners.
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During the recession, higher federal funding levels allowed the department to maintain employment services at a time that demand for those services was high. As the economy slowly recovers, these supplemental funding sources are ending and the department needs to reduce spending and services in light of long term revenue realities. The primary source of state funding for this program, received from a diversion of unemployment insurance payroll taxes, is beginning to recover from its mid-recession low point, but not sufficiently to avoid reductions. The budget begins a two biennia transition plan that is expected to result in a ten percent reduction in expenditures. The Department will use one-time federal revenues and phased reductions over the 2013-15 biennium to achieve about half of the anticipated cuts, with the remainder to be implemented in 2015-17. Despite the reductions, the Department will continue to focus re-employment efforts on unemployment insurance claimants, as well as providing core employment services for Oregonians, both job seekers and businesses, using new technology, expanded internet services, and use of mobile devices. Business Development Lottery Bond Debt Service: The Oregon Business Development Departments Lottery Bond Debt Service program contains funding to repay long-term financial obligations acquired through the issuance of Lottery-backed bonds to fund the Departments infrastructure projects for municipal entities (cities, counties, ports and tribes) with loans and grants from revolved loan funds, federal funds or special appropriations. The Governors budget for this program is $61.4 million, of which $56.4 million is Lottery funds, and $5.0 million Other Funds from interest earnings. Business Enterprises for the Blind: The Business Enterprises program within the Commission for the Blind trains, licenses and supports individuals who are legally blind so they can operate food service and vending in public buildings. The program contracts with public agencies and then sub-contracts with licensed blind managers to provide the food services desired for the facilities. Each licensed blind manager pays 11 percent of net earnings as a set-aside to support the program. The set-aside is used primarily for maintenance, repair and purchase of equipment. The program supports the outcome that Oregon has a diverse and dynamic economy that provides jobs and prosperity for all Oregonians. The program has 17 individuals operating food service and vending machine locations throughout the state. The Governors budget of $0.7 is funded primarily by federal vocational rehabilitation funds that are matched by contributions made by individuals who are in the program. There is no General Fund support for this program in the recommended budget. The average annual earnings for the blind managers are expected to be $19,473. Business, Innovation, Trade: The Business, Innovation and Trade Division (BITD) of the Oregon Business Development Department promotes business retention, growth, and job creation by removing barriers to industry competitiveness; working with economic development partners across the state to address business needs; and working
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directly with businesses to help them grow. The Division works to create prosperity for Oregonians through a robust economy that provides living-wage jobs. The Divisions primary customers are existing Oregon businesses, working with small- and medium-sized companies to keep them operating and growing in Oregon. The Division also works with potential new businesses expanding to Oregon. The Division services include professional and technical assistance to Oregon companies, direct investments for job creation, loan guarantees, small business loans, trade promotion and export assistance. The Governors budget for this program is $102.4 million total funds. The Division is primarily supported by $70.4 million in direct Lottery Funds. $7.7 million of Federal Funds support the Brownfields sub-program, State Small Business Credit Initiative (SSBCI), State Trade and Export Program (STEP) and Electric Vehicle (EV) grant. $24.3 million in Other Funds are from loan principal and interest repayments, loan and service fees, investment interest earnings and miscellaneous receipts. The projects the Division projects have created approximately 5,500 jobs from 2009-11, and retained nearly 15,000 jobs over the same period. These jobs have generated more than $34 million in revenue back to the General Fund. The Division expects to create and retain 10,000 jobs over the next five years and return approximately $5.0 million in revenue to the General Fund in 2013-15. CCWD Federal and Other Support: This program within the Department of Post-Secondary Education distributes federal Workforce Investment Act (WIA) and other grant funds to local workforce centers and community colleges for the primary purpose of getting people back to work by delivering job training and reemployment programs. WIA was established to consolidate, coordinate, and improve employment, training, and literacy programs for economically disadvantaged people. The primary WIA programs are statewide and local workforce investment program services (Title IB) and adult education and literacy program services (Title II). Additional federal funding is periodically available under the National Emergency Grant program that serves dislocated workers across the state when a large layoff or closure occurs. Federal Carl Perkins Career and Technical Education Grant funds transferred from the Department of Education for distribution to the community colleges are also included in this program. The Governors budget includes $112.5 total funds. This is a 6.7 percent reduction from the 2011-13 Legislatively Approved Budget. Revenues for the WIA title IB program are projected to continue declining over the next several years. During the 2013-15 biennium, the program expects to maintain high levels of employment retention among workers who completed job training programs as well as strong average earnings among dislocated workers who found employment after receiving services. The percent of adults obtaining employment after completing workforce programs, which declined significantly following the economic downturn beginning in 2008, is increase to improve as economic conditions improve. Clean Water Revolving Fund: Loans from the Clean Water State Revolving Fund (CWSRF) make up the Nonlimited portion of the Department of Environmental Qualitys budget. This loan program protects public health and the
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environment by offering financial assistance to communities and special districts for water pollution control projects to meet the demands of growing populations and expanding economies. The Governors budget for this program is $111.9 million total funds, comprised mostly of bond proceeds, federal grants, interest income, and loan repayments. The Governors budget will provide approximately $110 million in loans to around 30 communities to improve wastewater treatment systems and mitigate nonpoint source pollution, with a special focus on providing technical assistance to small communities. The Nonlimited portion of the CWSRF program does not include positions. Construction Contractors Board: The Construction Contractors Board encourages competition and growth in the construction contracting industry, focuses on contractor accountability, and protects the public interest relating to improvements to real property. The Board regulates construction contractors and promotes a competitive business environment through testing and licensing contractors, investigating complaints, adjudicating claims, and educating customers and contractors. The Board oversees approximately 39,000 licensed contractors, conducts field investigations, enforcement, and dispute resolution. The Governors budget for this program is $15.9 million Other Funds. The Construction Contractors Board is funded by Other Funds, primarily through registration and renewal fees. In the agencys annual survey, 77 percent of Oregonians stated they believe it is important to use a properly licensed contractor when having work done on their home or property. This same survey found that homeowners also believe the Oregon regulatory requirements for contractors are at an appropriate level. The Governors budget supports increasing the two year licensing and renewal fee from $325 to $365. This fee increase is estimated to generate an additional $1.4 million in revenues during the 2031-15 biennium and will provide the agency with an estimated ending balance equivalent to roughly three months of operating expenditures. Distilled Spirits Program: The Oregon Liquor Control Commission Distilled Spirits program makes available a broad selection of more than 2,000 distilled spirits items. As designed by the Oregon Liquor Control Act, the statecontrolled system generates significant government revenue but avoids practices that would promote excessive consumption. The OLCC centrally selects, purchases, warehouses, and distributes bottled spirits to 249 liquor stores, even to locations in the farthest reaches of the state, and ensures uniform pricing statewide. It operates a Milwaukie Distribution Center that safeguards $30 million worth of vendorowned spirits inventory. The program coordinates the appointment of and oversees contracted liquor agents operation of the stores, ensuring quality of services to the public and the more than 4,600 businesses licensed to sell distilled spirits. The states control of the distribution of alcohol affects the administrative details but not the general level of economic activity related to alcohol distribution in Oregon. It may boost the general level of alcohol production and related employment in Oregon by providing shelf space to Oregon distillers that otherwise may have difficulty gaining shelf space. The Governors budget for this program is $21.9 million and funds 71 positions. The revenue source is liquor sales. This budget continues the programs current level
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of operations and provides a controlled distribution of liquor and approximately $250 million in General Fund revenues for the 2013-15 biennium. Energy Development Services: The Oregon Department of Energys Energy Development Services program administers various financing and tax incentive programs that promote energy conservation and renewable energy, stimulate economic development, and create jobs. Primary tools include tax incentives, renewable energy development grants, and the State Energy Loan Program (SELP). The program ensures that Oregon has a diverse and dynamic economy that focuses on sustainable business development and next generation financing mechanisms that target saving energy, develop clean energy resources and promoting renewable energy. Investments made in this area stimulate the economy, advance clean energy technology, protect the environment and help contain energy costs, benefitting all Oregonians. In 2003, 31,162 Oregon households were powered from energy savings or generation achieved through projects that received tax incentives and/or SELP loans. In 2011, that number rose to 107,664. The Department estimates that the number of households powered through energy savings or generation from tax incentive and/or SELP funding will increase to as much as 358,880 in 2018. The Governors budget for the program is $201.9 million total funds. The vast majority of those funds are primarily related to SELP loan activity. The bulk of these revenues are the principal and interest payments made by borrowers. Occasionally the SELP fund is recapitalized through the sale of revenue bonds. Fees designed to provide cost recovery for processing and reviewing tax credits, grants and loan applications generate additional revenues. The Energy Supplier Assessment (ESA) also provides a portion of funding for activities in this area. The ESA is an assessment on a portion of gross operating revenues of energy suppliers. Activities are also partially funded from a U.S. Department of Energy grant. This funding level will provide enhancements to support changes that were made to the energy incentive program during the 2011 Legislative Session, Cool Schools, and the Governors 10-Year Energy Action Plan. Environmental Quality Cross Program/Regional Solutions: The Department of Environmental Quality Cross program includes two components: the National Environmental Information Exchange Network for data sharing, and the Regional Solutions Team. The first component supports federal and state reporting requirements. The second component is an initiative of the Governor. Regional Solution Teams solve problems by working with government, municipal, private and public partners and small communities to address local, regional and statewide infrastructure needs; support business development that leads to job creation; help resolve community problems related to land use, low-income housing, environmental protection and transportation; and serve as DEQs contact for key economic development projects with regional significance. The Governors budget for this program is $1.9 million total funds, of which $0.7 million is General Fund. It operates with six positions.

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Film and Video: The Oregon Film and Video Office (OFVO) is a semi-independent agency designed to recruit and facilitate film and television production throughout the state. The office carries out this mission by being a first point of entry for both out-of-state and in-state film and TV production companies and by using key recruitment tools such as the Oregon Production Investment Fund and the Greenlight Oregon Labor rebate. The Office works to create important public-private partnerships to foster a collaborative atmosphere in the local film and television industry. The Governors budget for this program is $1.2 million total funds. OFVO is supported exclusively by direct Lottery funds. In calendar years 2003 and 2004, the Film Office recruited nearly $15 million of film and television production to Oregon. In calendar years 2011 and 2012, that total direct impact is estimated to be over $250 million. Fish and Wildlife Debt Service: The Oregon Department of Fish and Wildlifes Debt Service budget is used to repay monies borrowed for two main categories of projects. General Fund is used to repay monies borrowed for deferred maintenance projects. These projects include maintenance of Wildlife Area field offices, hatchery facilities and residences, and other ODFW owned property. Other Funds from license and tag sales and fees are used to repay monies borrowed for the purchase of a new headquarters facility in Salem. This debt service cost will replace the cost of leasing the old headquarters building. ODFW plans to move into the new facility at the beginning of the 2013-15 biennium. The Governors budget for this program is $2.8 million, of which $0.4 million is General Fund and $2.4 million is Other Funds from license and tag sales. The budget supports the continued maintenance of Department facilities and the acquisition of a Department-owned headquarters building. Fish Hatchery Management: The Oregon Department of Fish and Wildlifes Fish Hatchery Management Program operates the states 32 fish hatcheries. It also works to minimize the impact of fish diseases at Department hatcheries and private aquaculture facilities and tags hatchery-produced fish to evaluate program outcomes. The program produces 44 million salmon, steelhead and trout annually that are released into Oregons rivers and lakes. Hatchery fish are managed to minimize the impacts to native fish while maximizing returns to anglers. ODFW hatcheries provide more than 70 percent of the fish harvested in the states sport and commercial salmon, steelhead, and trout fisheries. The Program relies heavily on partnerships with the federal government. The Governors budget for this program is $56.9 million, which includes $5.1 million General Fund, $40.5 million Federal Funds, and $11.3 million from recreational angling license and tag sales, contractual agreements, and sales of surplus eggs and fish. The budget will fund 263 positions and continue the operations described above.

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Fishery Capital Improvements: The Oregon Department of Fish and Wildlife implements capital improvement projects to restore stateowned fish hatcheries, enhance natural fish production, expand hatchery production, provide public access to fishing waters, maintain the Departments 402 buildings, and provide emergency repair and maintenance for state-funded hatcheries. ODFW has spent between $3 million and $10 million biennially since 2001 on capital improvement projects. The Capital Improvement program is funded with a surcharge on sport fishing licenses, all revenues from commercial gillnetting and troll fishing licenses, landing fees from troll and gillnet fisheries, interest earnings, and a small amount of General Fund. The Governors budget for this program is $4.4 million, which includes $0.1 million General Fund and $4.3 million from the other sources mentioned above. This is a reduction from the prior two biennia. The budget will fund two positions and continue the efforts described above. Food Safety and Consumer Protection: The Food Safety / Consumer Protection Policy Area in the Department of Agriculture inspects all facets of the food distribution system, except restaurants, to ensure food is safe for consumption. It also controls and eradicates animal diseases, ensures animal feeds meet nutritional and labeling standards, assures consumers receive accurate weight and measure of food and non-food products purchased in Oregon, assures consumers that the motor fuel purchased in Oregon meets national standards, provides laboratory analysis for food and food-related products as well as for other agencies, and certifies food for export. The program benefits Oregons economy by helping many of Oregons businesses gain and retain market access by meeting or exceeding domestic and international market expectations for safe foods and accurate measurements. The Governors budget for this program is $24.6 million, which includes $6.1 million General Fund. Other Funds revenue comprises 70 percent of the budget and includes license fees, registration fees, and fees for service. The budget will fund 100 positions and continue the programs current level of operations, including continuing work on a U.S. Food and Drug Administration grant, while also shifting the Predator Control and Livestock ID programs to the Market Access, Development, Certification/Inspection Policy Area of the Department. This provides for a continued high level of food safety and accuracy in weights and measures in Oregon. Forest Fire Protection: The Department of Forestrys Fire Protection Program protects 16 million acres of forestland from forest fire. This is just over half of Oregons forestland and has an estimated value of $60 billion. About threequarters of the protected acreage are privately owned. The remainder is owned by state, county, and city governments and the U.S. Bureau of Land Management. The Department has held wildfire protection as its top priority since its inception in 1911. It emphasizes prevention and suppressing fires quickly, while they are small, to ensure cost-effective results for the public and for forest landowners. The programs core mission is to provide protection through a complete, coordinated system that incorporates the agencys resources with those of private forest landowners, federal agencies, other state agencies, city fire departments, and rural fire protection districts. Fire prevention, detection, and suppression are accomplished through twelve forest fire protection districts supported by landowners and state resources. The program includes smoke management and fuels reduction efforts. Preventing and suppressing forest
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fires helps to maintain a stable environment for ongoing investment in forest ownership. It also protects public safety and natural resource values. The Governors budget for this program is $118.0 million, which includes $38.3 million General Fund, $15.7 million Federal Funds, and $64.0 million primarily from private forest landowner assessments. The budget will fund 694 positions, almost unchanged from the 2011-13 biennium. In addition to the programs budget, $5 million is reserved in a Special Purpose Appropriation in the Emergency Fund budget to pay for severity resources and catastrophic fire insurance premiums. The programs budget invests up to $3.6 million of General Funds as part of a three-biennium plan to increase resources used to extinguish forest fires while they are small and to phase in an increase in General Fund responsibility for payment of large-fire costs. Landowner assessments will pay for up to $6.0 million of additional severity resources each biennium to extinguish forest fires while they are small. Forest Research Laboratory: The Forest Research Laboratory within the Department of Post-Secondary Education provides research and development services to Oregons forest sector, serving 141,000 family forestland owners, 73,000 forest industry workers, and the states $13 billion industry. In addition to research in campus laboratories and on university forests, studies are conducted cooperatively in public and private forests, in laboratories and manufacturing facilities throughout Oregon and the world. The program provides knowledge about the science and management of forests and related natural resources, the connections of people to forests, and the uses of renewable materials to help sustain businesses, communities and ecosystems. The Governors budget includes $5.7 million General Fund, unchanged from the 2011-13 Legislatively Approved Budget. The program will attempt to continue to provide current services, using Forest Harvest Tax revenues and federal grants. Forest Debt Service: The Oregon Department of Forestrys Debt Service program contains funding to repay long-term financial obligations acquired through the issuance of bonds or Certificates of Participation to fund the Departments capital construction projects and business system improvement initiatives. These include debt service on the Departments Salem headquarters facilities, its Business Systems Improvement Initiative, John Day and Sisters office replacement projects, and Gilchrist State Forest land purchase. The Governors budget for this program is $8.0 million, of which $2.9 million is General Fund, $3.3 million is Lottery Funds, and $1.8 million is from transfers from other programs in the Department. The budget includes $0.8 million Lottery Funds for debt service on $7.6 million of bond proceeds for the purchase of additional lands to be added to the Gilchrist State Forest. It also includes a small amount of debt service for the $2.5 million replacement of a Fire Protection Program warehouse building in eastern Lane County.

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Forest Capital Construction: The Oregon Department of Forestrys Capital Construction program provides funding for high-priority construction or acquisition projects exceeding $1 million. The Governors budget for this program is $10.1 million from the sale of bonds. The budget includes $7.6 million in Lottery Bond proceeds to complete the financing for the purchase of 25,754 acres adjacent to the Gilchrist State Forest, thereby expanding the state forest to approximately 69,000 acres. The budget also includes $2.5 million in Article XI-Q general obligation bond proceeds to build a new warehouse building to replace an aging, unsafe existing structure in eastern Lane County in the Departments South Cascade District. These two investments will ensure desirable management of more than 25,000 acres of forest land in Central Oregon and will help ensure fire protection preparedness in the South Cascade District. General Aviation FAA Entitlement Program: The General Aviation Entitlement Program of the Oregon Department of Aviation administers Federal Aviation Administration funded airport projects that address safety, operations and development at twelve state owned airports. The airports are: Aurora, Bandon, Chiloquin, Condon, Cottage Grove, Independence, Joseph, Lebanon, McDermitt, Mulino, Siletz Bay and Wasco. FAA Grants are generally funded at 90 percent of project costs with the remaining ten percent paid for by the airport owner. The Governors budget for General Aviation Entitlements is $4.2 million total funds. Ninety percent of these funds are provided in grants from the Federal Aviation Administration, the remaining ten percent is the state match necessary for the federal grants. The match funds are derived through aircraft registration fees. The budget continues support for existing projects that are yet to be completed as well as provides enhancements for projects at several airports in the 2013-2015 biennium. Highway Modernization: The Modernization program within the Department of Transportation improves the capacity and operations of the highway system to reduce congestion and serve transportation demand more efficiently by building new lanes, improving interchanges to serve development and provide access to and from businesses and intermodal facilities. This program is also the source of funding for the Immediate Opportunity Fund (IOF), in partnership with Business Oregon, which provides grants to communities that affirm job retention and job creation opportunities. The Modernization program enables the type of system improvements that are necessary to accommodate a doubling of state exports to international markets. The state highway system provides access to intrastate, interstate and international markets for traded sector goods shipped by truck and also provides critical linkages between communities all around the State of Oregon and the domestic and international markets served by our ports, airports and rail lines. The Modernization Program improves the capacity and efficiency of the system, which reduces transportation costs and makes locating or doing business in Oregon more attractive to traded sector companies. The Governors budget for the Modernization Program is $824.6 million total funds. The funds come from the Highway Fund and the Federal Highway Administration. The budget reflects the completion of
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projects from the Oregon Transportation Investment Acts I, II, and III and a slight increase in projects from the Jobs and Transportation Act as those projects are starting up. The budget also reflects a significant investment ($450 million) for the I-5 Bridge replacement project. Highway Preservation: The Oregon Department of Transportations Highway Preservation program maintains highway pavement to prevent highways from becoming a threat to safe travel, from costing more to rebuild and from having a negative effect on the states economy. The Preservation program preserves the pavement surface, maintains safety, and reduces maintenance costs on over 8,000 miles of Oregon highways. These highways carry more than 18 billion vehicle miles and more than 300 million tons of freight annually. Preservation projects occur annually, usually during the summer, in the form of pavement overlays, chip seals, and other pavement rehabilitation applications. The Department and private consultants design the projects while private contractors perform the construction. The Department partners with the Federal Highway Administration (FHWA), American Association of State Highway and Transportation Officials (AASHTO), Associated General Contractors of Oregon (AGC), American Council of Engineering Companies (ACEC), American Concrete Paving Association (ACPA), Asphalt Paving Association of Oregon (APAO), and the Oregon Concrete and Aggregate Producers Association (OCAPA) to deliver the Preservation Program in an efficient, state-of-the-art, cost effective way. The Governors budget for the program is $249.3 million total funds. The funds come from the Highway Fund and the Federal Highway Administration. The budget supports the continuation of existing programs and will reflect the completion of projects from the Oregon Transportation Investment Acts I, II, and III and a slight increase in projects from the Jobs and Transportation Act as those projects are starting up. Infrastructure Finance Authority: The Infrastructure Finance Authority (IFA) of the Oregon Business Development Department programs finance infrastructure projects for municipal entities (cities, counties, ports, special districts, and recognized tribes) with loans or grants from revolving loan funds, federal funds, or special appropriations. As communities identify projects, IFA staff work directly with applicants to develop preliminary proposals before proceeding to complete program applications. The IFA assists communities to build infrastructure capacity to address public health, safety and compliance issues as well as support communities ability to attract, retain and expand businesses. The IFA is the least expensive and most readily available infrastructure funding source for Oregon rural communities, suburban areas, special districts, ports and tribes. The Governors budget for this program is $377 million total funds, $4.7 million General Fund. The majority of the funds, $343 million Other Funds, represent non-limited authority for the revolving loan portfolios and debt service. Federal fund authority of $29 million is included for the Community Development Block Grant. $92 million of Lottery bonds will fund sewer and water projects and Regional Solutions infrastructure projects across the state. The remaining Other Funds represent interest earned
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from revolving loan funds and supports the operations of all IFA programs. The General Fund supports the Seismic Rehabilitation Grant Program, which was transferred from the Oregon Military Department. The different programs approved projects and dollar volume is the performance metric used to measure IFA activities. IFA projects have funded approximately 138 public health, community development and planning projects in 2009-11, and expects to fund approximately 120 projects in 2013-15. Labor Apprenticeship and Training: The Apprenticeship and Training division of the Bureau of Labor and Industries approves and registers apprenticeship training programs, and certifies approximately 1,200 journey workers per year through collaborations with business, labor, government, and education partners. These programs provide career training and employment opportunities in technical and craft occupations. Apprenticeship and Training provides services to over 4,500 employers. Registered apprenticeship is a sustainable, employer-driven training model offering equal employment opportunities for all Oregonians, moving people directly into career pathways and family wage jobs. Oregons registered apprenticeship program works toward meeting the skilled labor demands of employers at the local level. It is an essential tool in closing the states middle-skill job gap in most occupations. Middle-skill jobs are those requiring more than a high school education but less than a fouryear degree. Middle-skill jobs currently make up the largest segment of jobs in our economy and will continue to do so for years to come. Beginning with the 2007-2009 biennium to the current biennium, the Apprenticeship and Training division has certified between 2,450 and 2,528 journey workers per biennium. The Governors budget for Apprenticeship and Training is $4.9 million total funds, 58 percent of which are from General Fund. A small amount of Federal Funds from the U.S. Department of Veterans Affairs provides for targeted on-the-job training for qualified veterans. Also, the Oregon Department of Transportation provides $1.5 million each biennium for targeted outreach, recruitment, retention and supportive services to individuals interested in careers in the heavy highway construction trades. The budget provides the resources to the division to continue providing support at current levels into 2013-15. Labor Commissioners Office/Program Support: The Commissioner's Office provides leadership, planning, policy direction, and public outreach services for the Bureau of Labor and Industries (Bureau). The Commissioner's Office oversees all Bureau programs and ensures advancement of the Bureaus mission: to protect employment rights, advance employment opportunities, and protect access to housing and public accommodations free from discrimination. The Commissioners Office, through its Technical Assistance Program and Administrative Prosecution Unit provide help develop, strengthen and retain Oregons workforce. The Bureau actively engages with Oregonians, particularly organized labor and business groups. From Fiscal Years 2005 to 2012, the Bureau conducted between three and 26 contested case hearings and resolved between 31 and 74 cases prior to going to hearing. From Fiscal Years 2007 to 2012, the Bureaus Technical Assistance program has delivered between 52 and 109 employer seminars and between 32 and 84 on-site employer programs.
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The Governors budget for the Commissioners Office is $6.6 million total funds. The General Fund provides $3.5 million in funding, the remaining is derived primarily through the sale of employer publications and registration fees for seminars and workshops, a portion of prevailing wage fees paid for by contractors that are awarded public works contracts and a portion of the wage security fund (statutory diversion of a fractional percentage of unemployment taxes paid by employers). The budget provides the resources to the Commissioners Office to continue providing support at currently existing levels into 2013-15. Liquor Facility Capital Improvements: The Oregon Liquor Control Commission Capital Improvement program provides effective stewardship of OLCC-owned buildings and grounds, including its Milwaukie Distribution Center warehouses. The program provides preventative maintenance, repairs and upgrades to its facilities, mainly through contracting with private sector businesses. The facilities serve the public, host monthly commission meetings, and house the operational needs of the OLCCs Distilled Spirits and Public Safety programs. The program has a very small direct impact on the economy but supports the OLCCs operations. The Governors budget for this program is $0.2 million funded primarily through liquor sales. This budget provides a low but adequate level of maintenance, repairs, and upgrades to OLCCs facilities. Liquor Store Operating Expenses: Each biennium, Oregons 249 liquor stores sell approximately 6.0 million cases of distilled spirits to consumers and to businesses that sell spirits. The Oregon Liquor Control Commission contracts with independent business people to operate these liquor stores. The Store Operating Expense program contains funds to compensate these liquor agents for their services. This compensation includes the agents take-home pay and also funding to operate the stores, including paying their employees. The sale of distilled spirits supports tens of thousands of jobs in the hospitality and alcoholic beverage industry. The agents sales also generate significant net revenue that OLCC distributes to the state General Fund and to local governments. This program is essential to the functioning of the OLCCs 249 contracted liquor stores. These stores are a tiny fraction of the states total economy but are a key part of the states controlled liquor distribution system. The Governors budget for this program is $95.2 million and is supported by liquor sales. This budget provides compensation for liquor store owners for the higher level of liquor sales expected in the 2013-15 biennium. Local Government Transportation Funds: Local Government Transportation Funds within the Department of Transportation provides program oversight and funding for the development and delivery of transportation improvement projects within local jurisdictions in Oregon. The Departments Local Government program provides support for various local and discretionary transportation programs that are funded by the state or federal government and account for approximately 25 percent of Oregon Statewide Transportation Improvement Program funding
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and up to 30 percent of the projects delivered among regions and program years. The Department manages these programs and helps local governments fund transportation projects. The Local Government program provides a collaborative environment to design and construct transportation projects involving many partners including the local agencies, state agencies, the Federal Highway Administration and various stakeholders. This interaction enables local governments to leverage investments and promotes coordination between agencies at state, regional and local levels to maximize resources to complete the projects that meet community needs. The Governors budget for the Local Government program is $367.3 million total funds. The funds come from the Highway Fund and the Federal Highway Administration. The budget reflects the completion of projects from the Oregon Transportation Investment Acts I, II, and III and a slight increase in projects from the Jobs and Transportation Act as those projects are starting up. Marine Facility Program: The Marine Facility Program in the Oregon State Marine Board provides immediate and long term economic impact by enhancing recreational opportunities in Oregon communities through building and maintaining high quality boating facilities to serve citizens and tourists alike. The program operates with nine staff and is funded by boat registration and titling fees, marine fuel tax revenues, federal Boating Infrastructure Grants, and Clean Vessel Act (CVA) grants. Over 93 percent of CVA funds go directly to service providers who create short-term jobs through boating facility construction and long-term economic prosperity through tourism. The Governors budget for this program is $10.8 million. This is an enhancement from the 2011-13 biennium using existing agency resources to improve boating facilities around the state. Nonlimited Unemployment Fund: The Employment Departments Nonlimited expenditure authority includes unemployment insurance tax collections, trust fund interest earnings, and federal revenue that are used to pay unemployment benefits to qualified applicants who are out of work and actively seeking work. Nonlimited funds also include federal revenue used to fund various training programs such as the Trade Adjustment Assistance Program and for reimbursement of unemployment insurance benefits paid to federal workers. The Governors budget is $1,758.9 billion Other Funds and Federal Funds, reduced by 42.9 percent from the 2011-13 Legislatively Approved Budget. The reduction reflects the discontinuation of federal benefit extensions and a slowly improving economy. The Governors budget transfers $10 million from the Supplemental Employment Department Administration Fund (SEDAF) to the General Fund. A $10 million General Fund appropriation is included in the Department of Community College and Workforce Development budget to expand the National Career Readiness Certificate program, certify two-thirds of Oregons counties as work-ready, and implement the states economic development and workforce strategy.

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Oregon Exposition Center (State Fair): The State Fair and Oregon Exposition Center program within Parks and Recreation provides Oregon with its annual state fair, and a venue for year-round exposition events such as meetings, concerts, trade shows, agricultural events and other exhibitions. The Governors budget for this program is $16.0 million total funds, of which $3.8 million is discretionary Lottery Funds. The program operates with 31 positions. The budget will continue the annual state fair in Salem. Orientation Center for the Blind: The Orientation and Career Center for the Blind (OCCB) within the Commission for the Blind is a training program for Oregonians who experience blindness. It provides the skill training that individuals who are blind need in order to accomplish tasks they were able to do prior to blindness. Training facilities and staff are primarily located in Portland. However satellite labs are located in Salem, Eugene, and Medford. The Commission for the Blinds Rehabilitation program works hand-in-hand with this program to address the independent living and employment needs of Oregonians with vision loss. It supports the outcome that Oregonians are healthy and have the best possible quality of life at all ages. The Governors budget for 2013-15 anticipates serving 320 clients in the Orientation and Career Center at an average cost per client of $3,000. The $2.4 million budget for these services is funded by the federal Rehabilitation Services Administration of the U.S. Department of Education. These funds require matching funds that come from the state General Fund, from cooperative agreements with educational partners, and from donations. The match rate for the vocational rehabilitation program is 4:1 federal to state dollars. For the independent living programs the match is 9:1 federal to state resources. Public Transit: The Public Transit program within the Department of Transportation provides grants, policy leadership, training and technical assistance to communities and local public transportation providers. The program assists in the development and use of transit, ridesharing and other alternatives to driving alone as ways to reduce congestion, diminish environmental impacts, make more efficient use of Oregons transportation system, and provide travel options for older adults and people with disabilities. The purpose of Public Transit is to provide safe, efficient transportation systems that support economic opportunity and livable communities for Oregonians. Public Transit will maximize the existing infrastructure of transportation though involvement at a regional and local level with their partners. Public Transit is migrating to a more multi-modal and regional model to serve the communities of Oregon by integrating transit planning and development with other state agencies, regional and local efforts. The Governors budget for the Public Transit program is $100.2 million total funds. The majority of funding is from Federal Fund grants from the Federal Transit Administration and the Federal Highway Administration. These sources are specifically for intended transit programs. Other sources of funding are derived from Transportation Operating Fund (TOF), Cigarette Tax, ID Card Revenue and interest income. The budget provides funding necessary to continue existing programs and includes a $2 million General
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Fund investment for the Seniors and People with Disabilities transportation program and a $15.2 million General Fund Obligation Bond investment for the Lane Transit District. Racing Commission General Program: The primary purpose of the Oregon Racing Commission is the regulation and oversight of pari-mutuel wagering. The Commission licenses race meet participants, including jockeys, trainers, and owners. The Governors budget for this program is $5.4 million Other Funds. The program is entirely funded from fees charged to licensees as well as tax on wagering hubs. The Governors budget will support about 3,847 licensees during the 2013-15 biennium, equal to the number served in the prior biennium. The program oversees the effective operation of an industry with over $35 million of wagering and racing activity. Self-Sufficiency TANF/JOBS Program: Temporary Assistance for Needy Families (TANF) program within the Department of Human Services is a collection of critical safety net programs for families with children living in extreme poverty. TANF helps families, including over 63,000 children, from diverse backgrounds to address their most basic needs. TANF provides eligible families with cash assistance, connections to support and community resources, case management, and employment and training services. The Job Opportunity and Basic Skills (JOBS) program is an employment and training program for those receiving TANF benefits. The goal is to help adults in TANF programs gain the skills needed to become self sufficient through employment. Most parents or caretakers in TANF families are required to participate in the JOBS program to maintain their eligibility for cash assistance or face possible sanctions including losing benefits. Job preparation services are provided through the Department of Human Services field offices and a network of contracted JOBS program providers with locations in every county. These safety net programs are usually the last step for families with few or no resources left, and any assistance can have an immediate impact on their health, safety and well-being. These families typically use TANF funds to prevent homelessness and to help with other factors contributing to family instability. The goal of the program is to help families address barriers and gain skills and access to employment opportunities to become self-sufficient. The Governors budget for these programs is $434.7 million total funds including $46 million General Fund to replace one-time federal revenues used in 2011-13. The budget implements a three-year TANF eligibility time limit. Siting Energy Facilities: The Energy Facility Siting Program within the Department of Energy works with energy facility developers and operating energy facilities to meet the states energy infrastructure and demand needs and to ensure that large power plants, transmission lines and natural gas pipelines built in Oregon meet siting standards. The development of new technologies and investments in renewable energy generation has lead to growth in energy siting and made this work a top priority for the department. Energy facility siting activities fall into the following categories: Pre-Application, Application Review, Contested Cases and Supreme Court Appeals, Facility Amendments, Facility Oversight, and Federal Coordination activities. The siting program is part of the states work to ensure that Oregon has a diverse
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and dynamic economy where emerging renewable energy, energy efficiency and clean technology industries can thrive. Energy facility siting activities align with energy policy that seeks to ensure lowcost energy generation and transmission infrastructure while also reducing the states reliance on carbon intensive fuels. The number of total siting activities has risen from 13 in 2007 to 69 so far in 2012. The Governors budget for the program is $6.2 million total funds. 92 percent of the funding is derived through siting certification and application fees. This funding level will provide enhancements to support changes that will support more efficient, timely and transparent energy facility siting processes. Additionally, the budget invests $0.5 General Fund for the Governors 10-Year Energy Action Plan to develop a Landscape Level Plan to meet the states clean energy requirement. Landscape-level planning will provide a tool to balance the need to site new energy development and transmission facilities with environmental constraints and other conservation values, helping to create a shared vision for long-term interaction of development and conservation. These planning efforts, conducted on a regional scale, will produce decision support tool that provides geographic priorities to guide and inform siting decisions at the state, federal, and local levels. State Forests Lands Management: The Oregon Department of Forestrys State Forests program manages Oregons 830,000 acres of state forests to provide timber products, jobs, clean water, wildlife habitat, and recreational opportunities. The programs funding comes from state forest timber sale revenues. Timber-sale revenues from the forests pay for the program as well as benefit the counties in which they are located and the Common School Fund. Program staff create long-range plans, inventory forest stands, monitor the environment, plan and administer timber sales, take measures to protect sensitive species and other resources, engineer and maintain roads, and manage recreation. Staff also serve as part of the Departments militia to carry out its top missionfire protectionduring times of high fire activity. The Governors budget for this program is $90.2 million, which includes $89.4 million from timber-sale revenues and $0.8 million Federal Funds. The budget will fund 268 positions, unchanged from the 201113 biennium. The budget adds $0.5 million from timber-sale revenues to enhance monitoring on the Elliott State Forest. State Police Gaming Division: The Gaming Enforcement division of the Oregon State Police assures the economic viability of the revenue streams gained from Oregon gaming and ring sports. This revenue helps to create sustainable business development and allows for a robust economic environment and long term economic prosperity. Revenue assurance is obtained through a strong regulatory framework designed to protect the fairness, integrity, security, and honesty (F.I.S.H) of Oregons gaming and ring sports industry. The Governors budget for this program is $9.9 million total funds. The program is funded entirely by charges for service on the entities that the program regulates. This level of investment supports current service levels for all aspects of the program.

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Transportation Capital Construction: The Departments Capital Construction program provides modern, cost effective facilities that enable ODOT to safely and efficiently provide quality service to its customers. Highway construction projects are not treated as Capital Construction Projects in the budget because those projects are statutorily exempt from the definition of Capital Construction, which is defined as projects equal to or greater than $1 million. A substantial portion of the Capital Construction Program is aimed at achieving sustainability and reducing the environmental impacts of Department operations. New construction always includes energy efficient elements such as lighting, alternative energy generation systems and natural resource conservation systems, where feasible. The Governors budget for the program is one dollar, which is a placeholder for an investment in consolidating the number of facilities in the Portland Metro area (Region 1). Consolidation of facilities in Region 1 provides opportunities for greater efficiencies, coordination, and communication. Many of the existing facilities are at or past their useful life and need major improvements for them to be useful in the future. The revenue for this project will come from the Highway Fund and the sale of certain Department properties. Transportation Debt Service: The Department of Transportation Debt Service program repays investors and other parties the obligations owed on the outstanding debt issued by the agency to finance Department highway and nonhighway projects, as well as the debt issued for the State Radio Project. The Governors budget for Debt Service is $581.7 million total funds, including $0.76 million in General Fund to pay for the debt issued for the Lane Transit District Project and $95.3 million. Lottery Funds for existing Lottery Bond backed debt issued for previous Connect Oregon programs. The General Fund Debt Service was decreased to $10 in the 2011-13 Legislatively Approved Budget. The State Radio Project is a joint project between the Department of Transportation and the Oregon State Police. It is expected that future debt service will be partially paid by the General Fund to cover the portions of the project that are not considered State Highway assets. Transportation Infrastructure Fund: The Nonlimited program is the Oregon Transportation Infrastructure Fund, which was established in 1997 as a revolving loan fund for transportation projects, to manage loans and provide financial assistance to local governments. The Oregon Transportation Infrastructure Bank makes loans to local governments, transit providers, ports, and other eligible borrowers. The loan program provides funding to design and construct transportation projects involving many partners including the local agencies, state agencies, the Federal Highway Administration and various stakeholders. This interaction enables local governments to leverage investments and promotes coordination between agencies at state, regional and local levels to maximize resources to complete the
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projects that meet community needs. The loans are specifically targeted to meet local government transportation infrastructure needs for various transportation modes. The Governors budget for the program is $18.2 million total funds. The fund was capitalized with a combination of federal and state funds and interest earnings. Revenue bonds also may be issued to provide additional capitalization. As loans are repaid, principal and interest returned to the Oregon Transportation Infrastructure Bank are available for new loans. The budget supports the continuation of existing programs Transportation Program Development: Transportation Program Development (TPD) within the Department of Transportation provides the foundation for decision making to address transportation needs through its research, data collection and planning responsibilities, and also provides grant opportunities for the building of infrastructure in support of state and community visions for a multimodal transportation system. The scoping of proposed transportation projects, the planning necessary to identify these projects, and research and data collection are all key functions and primary work efforts within TPD. The work in TPD leads to designing and operating an efficient multimodal transportation system framed by numerous federal and state laws and rules that require such activities. Another key responsibility of TPD is the implementation of ConnectOregon and support of other non-highway infrastructure projects through the Flex Funds Program, providing strategic infrastructure investment opportunities. There have been two cycles of the Flex Funds program which fund multimodal and non-highway transportation projects and services including transit, bicycle, pedestrian and transportation demand management programs. The Governors budget for Transportation Program Development is $242.3 million total funds. The major sources of funding for TPD include federal transportation funds from the Federal Highway Administration and National Highway Traffic Safety Administration, and revenue from the State Highway Fund. The Oregon Transportation Commission also sets aside funds for the Flex Funds Program based on the Jobs and Transportation Act legislation. Flex Funds are federal funds that can be used for non highway activities. A portion of the Federal Funds is also limited to planning and research (State Planning and Research funds) as well as funding for Fatality Analysis reporting. ConnectOregon (a program that funds non-highway projects) has been funded through the sale of lottery backed bonds and lottery debt service. The budget provides funding necessary to continue existing programs and includes a $60 million investment in ConnectOregon V. ConnectOregon V will be funded through the sale of General Fund Obligation and lottery backed bonds. Transportation Special Programs: Highway Special Programs within the Department of Transportation provides indirect, technical and program support for the Highway Division construction program through the development and delivery of the tools necessary to optimize management of infrastructure assets, deliver projects efficiently, and promote sustainability and best practices for Oregons transportation system. This support uses a wide
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number of technical disciplines and expertise to produce statewide standards, policies and guidelines for the design, development and bid of contract plans, construction and operations of transportation projects. Special Programs is also charged to deliver construction projects and services in several distinct program areas, including the following: Pedestrian and Bicycle; Salmon and Watersheds; Forest Highway Program; Winter Recreation Parking; and Snowmobile Facilities. Also included in the Special Programs area is the Innovative Partnership Program, which works with the private sector and units of government to deliver new, innovative projects that best serve the public interests. Recent projects include the Electric Vehicle Charging Network and the Oregon Solar Highway project. The Governors budget for the Highway Special Programs is $224.0 million total funds. The funds come from the Highway Fund and the Federal Highway Administration. The budget supports the continuation of existing programs. Unemployment Insurance Administration: The Employment Departments Unemployment Insurance (UI) program provides wage replacement income to workers who are unemployed through no fault of their own. The unit determines whether claimants are eligible for benefits, pays benefits to eligible claimants on a weekly basis, and investigates fraud and abuse within the UI system. The program is also responsible for collecting payroll withholding taxes that fund the UI Trust Fund. In 2011, the UI program served over 109,000 employers, processed more than 7.3 million individual wage records and collected over $1.0 billion in payroll taxes. The Governors budget includes $132.4 million other and Federal Funds and 636 positions (619.24 full time equivalent) to fund the UI program. The budget increases staffing and resources to prevent and recover UI overpayments and to assist UI claimants return to work as quickly as possible. As the economy slowly recovers and federal extended benefit program are phased out, the administrative workload will continue to decrease. The department is taking steps to return to its pre-recession level of staffing, after several biennia of extraordinary workloads and associated staffing. Veterans Home Loan Program: The Department of Veterans Affairs Loan Program provides home loans at a favorable interest rates to veterans. Tax-exempt bond revenue is used to finance the loans. Loan repayments and investment earnings pay off the bonds and cover the cost of program administration. Federal law allows the Department to finance a loan with tax-exempt financing to any veteran discharged within the past 25 years. The Oregon Constitution does not limit the timeframe a veteran may access this benefit. The program promotes home ownership and the local economy at multiple levels. From the builders and construction workers who construct the home, to the realtors and mortgage brokers that market and qualify borrowers for the home, the title company employees and bank employees who fund the loans, and the actual borrower who needs employment for a paycheck to pay the mortgage jobs are provided and prosperity is enhanced when housing purchases are made.

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The Governors budget for the Loan Program is $15.3 million Other Funds. The program currently administers 2,408 active loans. Only 2.49 percent of the Programs loans are delinquent compared to the national average of delinquencies exceeding 4 percent. This is a 4.8 percent decrease from the prior biennium and maintains Program delivery for the 2013-15 biennium. The funding level includes an adjustment to account for efficiencies in administrative functions. Veterans Services Program: The Veterans Services Program provides benefit counseling, claims assistance, conservatorship services and education assistance. It operates through a coordinated service delivery network consisting of Department employees, county service centers in 34 of the states counties and participating national service organizations. The Department finances the county Veterans Service Officer positions with a base amount and an amount based on the veteran population of the county. The agency headquarters is in Salem and directly serves veterans in Marion and Polk counties and serves other veterans throughout the state when requested to do so. In addition, Department employees assist veterans and county Veterans Service Officers throughout the state on preparing or reviewing appeals of denied veteran claims. To Oregon veterans, benefits enable them to be productive and self-sufficient citizens. Disability compensation is awarded for both physical and mental injuries incurred while serving their country, which helps pay their mortgage and other bills and works to provide access to Federal VA health care services. The Governors budget for Veterans Services is $8.7 million total funds. General Fund is $7.8 million. The budget moves the veterans claim function to the General Fund to preserve the Oregon War Veterans Fund. The Department has Power of Attorney for 9,420 new benefit claims filed in FY 2012. Of these new claims, 84 percent (7,914 claims) flowed through the county veterans service officers who partner with the Department. At June 30, 2012, the Department had 12,785 pending claims at the Federal Veterans Administration. Moving the veterans claim function to the General Fund was done to preserve the Oregon War Veterans Fund (Loan Fund) benefits for future veterans. Because of the move, Other Funds are decreased 60 percent from the prior biennium. Water Development Loan Program: The Water Development Loan program started in 1977 to finance irrigation and drainage projects. After a period of low activity, project funding for aquifer recovery in the Umatilla Basin was provided starting in 2009. The Governors budget for this program is $13.7 million total funds from bond proceeds and loan repayments. The Governors budget continues support for loans to water development projects in the larger Columbia River Basin. Water Resources Administration Services: The Administration Services program of the Water Resources Department program includes the Water Conservation, Reuse and Storage Grant program, which provides grant funds for feasibility studies that enable local entities to evaluate alternative methods of supplying water for future economic and community use. They also include the Umatilla Basin Aquifer Recovery Project, recipient of $3.2 million
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in grants in recent years. Finally, this division serves as the home for Oregons Water Supply Development program, proposed for the 2013-15 biennium. The program is also responsible for providing the Departments business and administrative services, including accounting, payroll, contracting, facilities management and mail room support services. The Governors budget for this program is $17.3 million total funds, $3.8 million of which is General Fund from income taxes. $11.9 million is Other Funds from bond proceeds, and $1.6 million is Lottery Funds for debt service on bond issues. It operates with 14 positions. This budget funds a water supply development program to improve the states ability to assess, invest in, broker, fund and develop new water supplies that will benefit both instream and out-of-stream needs. In addition, funds will be used to help communities assess the viability of local water resource development projects. Water Resources Field Services: The Field Services program of the Water Resources Department program provides the regulatory oversight for the water rights system, managing all surface water and groundwater supplies for users ranging from large agricultural, municipal, and industrial to individual domestic users. The Governors budget for this program is $11.8 million total funds, nearly all of which is General Fund from income taxes. It operates with 54 positions. The Governors budget improves the ability of the Field Services division to regulate more than 80,000 water rights to ensure effective and timely distribution of water to Oregon agricultural, industrial, municipal and domestic users. An estimated 20,000 actions will take place to ensure water distribution and 1,600 wells will be inspected to ensure compliance with standards that protect public safety and Oregons environment. Irrigation is applied to about half of the states total crop land (1.7 million acres, worth about 77 percent of the value Oregons harvested crops). Enhancements in this area will contribute toward an increase in Oregons agricultural output. Water Rights and Adjudications: The Water Rights and Adjudiciations program provides the regulatory oversight for the water rights system, managing all surface water and groundwater supplies for users ranging from large agricultural, municipal, and industrial to individual domestic users. The Governors budget for this program is $7.7 million total funds, $3.4 million of which is General Fund from income taxes. The remaining $4.3 million comes from fees paid by water right holders or applicants. It operates with 40 positions. The Governors budget maintains the ability to process water rights for water users, which average 400 water user permits, 150 permit extensions, 250 certificates, 350 transfers and 150 limited licenses. Workforce and Economic Research: The Employment Departments Workforce and Economic Research program has responsibility for providing quality workforce and economic information for Oregon citizens, businesses, and policy makers. The Governors budget includes $15.4 million Other Funds and Federal Funds and 67 positions. One-time federal revenues are used to partially offset reductions due to a projected shortfall in Other Funds received from a diversion of unemployment insurance payroll taxes. The budget will allow the unit to continue to provide workforce and employment information on a statewide, regional, and local basis, as
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well as the capacity for focused analysis and research on topics of particular workforce and economic importance.

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Healthy Environment

HEALTHY ENVIRONMENT OUTCOME AREA


10-YEAR GOAL: Oregons environment is healthy and sustains our communities and our economy.
2011-13 Leg Approved Budget General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $62,628,947 $151,982,838 $396,299,531 $204,714,334 $45,204,450 $0 $860,830,100 3,099 2,586.86 2013-15 Governors Budget $91,165,336 $146,030,643 $388,800,451 $185,472,272 $27,194,527 $0 $838,663,229 3,178 2,639.43

2013-15 Budget Overview


The Governors balanced budget emphasizes clean water and sustainable resource management. First, the budget invests in carrying out Oregons first-ever Integrated Water Resource Strategy. The strategy will both expand our agricultural economy providing new employment in rural areas of our state, and improve the conditions of our streams and rivers key to the long-term health of our fisheries and watersheds. Second, the Governors budget restores resources in Oregons ground-breaking water quality initiatives, and targets those resources so that we can strategically deploy tools to where they are most needed, including areas where agriculture and forestry are key players. The investments will maintain our states reputation as a leader in sustainable resource management. Key elements of the 2013-15 Governors balanced budget for Healthy Environment include: Investing $4.1 million to build and strengthen Oregons coordinated water quality strategy, involving all sectors of our economy, and providing the monitoring required to assure that we invest resources where they are most needed. Investing $24.3 million to implement Oregons ground-breaking Integrated Water Resources Strategy, including funding for new water storage, water conservation, and habitat improvement. The Healthy Environment Program Area contains $1.1 million of this investment; the remaining $23.2 million is in the Economy and Jobs outcome area.

2013-15 Governor's Recommended Budget

F-1

Healthy Environment Outcome Area

Healthy Environment

Investing $1.2 million to complete a major overhaul and simplification of the urban growth management program, along with continued partnerships with larger cities, working with them to identify and carry out strategies to develop sustainable communities that have broad housing and transportation options.

Outcome Area Overview


The Healthy Environment outcome area encompasses the work of 15 agencies across 30 programs. These agencies manage Oregons air, water, land and wildlife resources to support a healthy environment that sustains Oregons communities, Oregons economy and the places Oregonians treasure. The programs in this outcome area work to: Ensure healthy air, lands and waters for people, fish and wildlife; Help communities and businesses create places where people want to live, work and play, and that Oregon will be proud to pass on to the next generation; Maintain and improve Oregons competitive advantage in resource-based industries such as forest products, agriculture and fisheries; and Conserve important lands and provide recreational opportunities that help define the character of our state.

The people of Oregon have invested a portion of lottery proceeds for conservation and recreation since 1999 (fifteen percent), first under Measure 66 and most recently under Measure 76 which made the constitutional dedication permanent. Until this biennium, these dedicated lottery revenues have grown. For the next biennium, however, the forecast for lottery revenues is that this source of funding will decline. In the past, federal Pacific Coastal Salmon Recovery Fund money helped stabilize funding for salmon and watershed programs, but the federal government has adopted new restrictions on these revenues that mean they can no longer be used in that manner. To avoid significant reductions in funding for water quality and conservation, the Governor is proposing to restore General Fund support for this outcome area. This shifting between General Funds and Lottery Fund reverses the trend of the past 12 years, during which the proportion of the General Fund/Lottery Fund budget for resource agencies has steadily declined. The Oregon Parks and Recreation Department also is affected by the shortfall in lottery revenue. To address this, the balanced budget changes Lottery Fund support for the Oregon Exposition Center (State Fairground) from dedicated Measure 76 Lottery Funds to non-Measure 76 Lottery Funds. As lottery revenues are unlikely to grow as fast as they have in the past, the Governor will work with the legislature to identify longer-term options for funding the state fair.

2013-15 Governor's Recommended Budget

F-2

Healthy Environment Outcome Area

Healthy Environment

Recommended Budget and Key Investments


The Governors Balanced Budget for the Healthy Environments outcome area is $0.8 billion, which includes $91.2 million General Fund, $141.6 million Lottery Funds from Measure 76, and $4.4 million from discretionary Lottery Funds. The budget prioritizes water quality and sustainable resource management, including the three major investment areas described above (water quality, water resources strategy, and urban growth management reform), as well as the following additional investments and innovations: Marine Protected Areas and Marine Reserves: reserves approved by the legislature in 2011. Continued funding to implement the marine

Land Use Reform: Continued funding to carry out the Governors executive order on Southern Oregon resource land management. Water Right Management: Approval of a new water right management fee that, over time, can provide stable funding for multi-purpose water development and management in Oregon. Columbia River Gorge Management: Restoration of funding for the Gorge Commission to begin updating the management plan for the gorge. Oregon and California Lands, and Forest Collaboratives: Investment of $0.4 million to continue work on the management of the federal Oregon & California lands in southern and western Oregon, along with work to scale-up production from federal lands in eastern Oregon. This funding also is tied to $5.4 million in bond funds to support collaboratives, and help implement changes in forest management on the O&C lands. Lower Columbia River Fisheries: The budget invests $5.2 million to relocate the gill net fishery off of the main stem of the Columbia River, and to supplement fishing opportunities in offchannel areas. The sportfishing users in the lower Columbia are expected to shoulder a part of these costs. Funds will be used to complete the feasibility studies necessary to establish new and existing off-channel commercial fisheries areas.

The balanced budget also maintains existing program levels and restores monitoring programs, including those for salmon and watersheds, groundwater, and forestry. For many of the existing salmon and watershed programs, General Fund is used to maintain services because lottery revenue is forecasted to decline. Other budgetary adjustments include scaling back funding for local planning grants, reflecting the slowing and reevaluation of periodic review of comprehensive plans through the urban growth reform program.

2013-15 Governor's Recommended Budget

F-3

Healthy Environment Outcome Area

Healthy Environment Healthy Environment Programs


Page F-5 F-5 F-5 F-6 F-6 F-6 F-7 F-7 F-7 F-8 F-8 F-9 F-9 F-9 F-10 F-10 F-10 F-11 F-11 F-11 F-12 F-12 F-12 F-12 F-13 F-13 F-13 F-13 F-14 F-14 Program GF/LF OF/FF Agriculture Natural Resource Policy Area 12.8 19.9 Aquatic and Invasive Species 0 1.9 Columbia River Gorge Commission Joint Expenses 1.1 0 Columbia River Gorge Commissioner Expenses 0 0 Common School Fund 0 32.7 Energy Policy 0 7.4 Environmental Air Quality 5.6 50.3 Environmental Land Quality 0.6 62.8 Environmental Water Quality 23.5 34.5 Fish and Wildlife Conservation 1.2 6.3 Fish and Wildlife Habitat Resources 1.7 6.3 Inland Fisheries (excluding Hatchery Management) 13.6 135.2 Land Conservation and Development Grant Program 1.2 0 Land Conservation and Development Planning 11.5 7.3 Land Use Board of Appeals 1.4 0.1 Marine & Columbia River Fisheries 4.1 33.1 Mined Land Reclamation 0 2.3 Oregon State Police Fish and Wildlife 9.8 25.5 Oregon Wetlands Revolving Fund 0 1.8 Parks and Recreation Community Support and Grants 13 21.5 Parks and Recreation Direct Services 32.5 61.5 Parks Development 22.7 4.8 Pollution Control Bond Finance Debt Service 4.7 17.1 Private Forests 14.2 21.9 South Slough National Estuarine Reserve 0 3.5 State Lands Capital Improvements 0 0.6 Water Resources Director's Office 2.4 0 Water Resources Technical Services 5.9 7.3 Watershed Enhancement Board 58.2 34.7 Wildlife Management 0.5 53.4 Total 32.7 1.9 1.1 0 32.7 7.4 55.9 63.4 58 7.5 8 148.8 1.2 18.8 1.5 37.2 2.3 35.3 1.8 34.5 94 27.5 21.8 36.1 3.5 0.6 2.4 13.2 92.9 53.9

2013-15 Governor's Recommended Budget

F-4

Healthy Environment Outcome Area

Healthy Environment Healthy Environment Programs


Agriculture Natural Resources Policy Area: The Natural Resources Policy Area protects Oregons natural resources for future generations, maintains agricultural lands, benefits water, fish, wildlife, and native plants, reduces exposure to toxics, and maintains agricultures economic sustainability. Through outreach, education, compliance, monitoring, technical assistance, invasive species detection and eradication, weed control, and coordinating with other state and federal natural resource agencies, these programs help landowners manage their lands in a manner that makes both economic and environmental sense. One measure of the Policy Areas success is the fact that 98 percent of the plant pests, diseases, or weeds on the Oregon 100 most dangerous invaders list have been successfully kept out of Oregon in 2011. However, water quality goals fell short of targets, as did results of pesticide inspections. The Governors budget for this program is $32.7 million, which includes $7.0 million General Fund as well as license and registration fees, federal grants and cooperative agreements, and Oregon Lottery Funds dedicated by Measure 76 (2010). The budget will fund 133 positions. The budget reduces funds for weed control and increases investment in agricultural water quality monitoring and pesticide monitoring. This will increase the programs ability to identify areas contributing to water quality problems and target resources to address those problems. Aquatic and Invasive Species: The Aquatic Invasive Species programs purpose is to protect Oregon against the introduction and spread of aquatic invasive species, with specific focus on preventing the introduction of the Quagga and Zebra mussels and Hydrilla, and the spread of Eurasian watermilfoil and the New Zealand Mudsnail, which already contaminate some of Oregons waterbodies. The program has three staff and is funded through a permit for all boats 10 feet or longer operating on Oregons waters, with funds going toward education, enforcement and inspection/decontamination services. The program funded 3,615 watercraft inspections in 2011, of which 78 were found to have invasive species that needed to be removed. The Marine Board has the lead role to implement the permit program for all watercraft. This permit is the funding mechanism that supports all of the program activities. Education and outreach efforts along with coordination with law enforcement agencies are among the top priorities for the Marine Board to accomplish. The Department of Fish and Wildlife has the primary responsibility to operate state-wide watercraft inspection stations. The Governors budget for this program is $1.9 million. The program projects about 8,200 watercraft inspections in the 2011-13 biennium, rising to about 9,000 in the 2013-15 biennium. Columbia River Gorge Commission Joint Expenses: The Columbia River Gorge Commission is the primary steward of the Columbia River Gorge National Scenic Area Act, a compact between Oregon and Washington, authorized by the United States Congress. The Commission coordinates and monitors the efforts of local governments, state and federal agencies, Tribes, and interested citizens to protect scenic, natural, cultural and recreation resources, and to support
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the economy in the Columbia River Gorge National Scenic Area. This program protects the scenic area while sustaining local communities. The Governors budget for this program is $1.1 million total funds, 99.95 percent of which is General Fund from income taxes. Oregon and Washington share budget responsibility and each state pays exactly half the cost of operations. The Governors budget will allow the Commission to meet more than quarterly, establish committees, and provide outreach and technical assistance to communities. The budget will allow the Commission to begin work to update the National Scenic Area Management land as required by agreements between the states and Congress, and protect resources through coordinated planning and community development. Columbia River Gorge Commissioner Expenses: This program pays the costs for commissioners to participate in meetings. Although Oregon and Washington must share equally the costs of program operations, each state is responsible for its own commissioner expenses. The governor of each state appoints three commissioners, one commissioner is appointed by each county in the scenic area, and one non-voting member is appointed by the federal government. Oregon is responsible for six commissioners expenses, as is Washington. This programs geographic impact is very narrow. The Governors budget for this program is $0.02 million total funds, all of which is General Fund from income taxes. Common School Fund: This program manages state lands and other assets dedicated to funding K-12 schools for current and future generations. Revenue from program activities is deposited in the Common School Fund, overseen by the State Land Board and its administrative arm, the Department of State Lands. The Board is composed of the Governor, Secretary of State and State Treasurer. The program also includes protecting wetlands and waterways, and the states unclaimed property and estates administration programs. The Governors budget for this program is $32.7 million total funds. Funding comes from operations and investment income. Operations generate revenue from timber sales, lease payments and royalties, periodic land sales, permit fees, and escheated estates. Investment income is derived from the interest and capital gains earnings of the fund. Unclaimed property is held in trust in the Common School Fund, and also generates earnings. Revenues are constitutionally and statutorily dedicated. Some Federal Funds in the form of grants support wetland planning activities. The program operates with 89 positions. The Governors budget allows the agency to meet or exceed an average of 60 days for permit decisions and wetland delineation reviews, resolve 50 percent of removal-fill violations and permit non-compliance issues annually, and average 22 days for wetland-use notice responses. Energy Policy: The Energy Policy program within the Department of Energy works to ensure Oregonians have access to affordable and reliable energy, which helps protect against price spikes, advances energy resilience and reduces our states dependence on carbon-intensive fuels. Conserving energy, building energy efficiency into our homes and businesses, using renewable energy, and developing clean transportation all contribute to the health of our environment and communities.
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The Governors budget for the program is $7.4 million total funds. The majority of funds come from the Energy Supplier Assessment (an assessment on a portion of the gross operating revenue of energy suppliers). The program operates with 26 positions. Additional funds are derived through various fees and grants from the U.S. Department of Energy. The budget supports the continuation of existing programs and provides new investments for implementation of the Governors 10-Year Energy Action Plan. Environmental Air Quality: DEQs Air Quality program manages air quality to protect the environment. The program is delegated to Oregon by the federal government. The Governors budget for this program is $55.9 million total funds, of which $5.6 million is General Fund from income tax revenues. Fees paid by businesses and vehicle owners to control emissions support $42.8 million of the program budget. Funds from the US Environmental Protection Agency provide the remainder of the funding. The program operates with 223 positions. The Governors budget will maintain capacity to serve 1.2 million Oregonians, reduce excessive urban air toxics exposure by 20 percent, reduce excessive rural air toxics exposure by 11 percent, and implement phase one of the Clean Fuels program. Environmental Land Quality: Department of Environmental Qualitys Land Quality program improves and protects Oregons land, air and water through safe management and reduction of waste and toxics, cleaning up contaminated sites and responding to emergency spills. Land Quality programs contribute to Oregons economic growth, especially cleaning up properties to provide shovel-ready sites for business and industrial development. The Governors budget for this program is $63.4 million total funds, of which $0.6 million is General Fund. Fees paid by businesses and individuals to control potential land contamination provide $55.3 million of the program budget. The remaining $7.5 million of the budget comes from the US Environmental Protection Agency. The program operates with 191 positions. The Governors budget will maintain capacity to directly serve 11,000 Oregonians and increase the percentage of contaminated sites cleaned-up by one percentage point. Environmental Water Quality: Oregonians place a high value on clean water to provide healthy rivers and streams for people, fish, wildlife and to support a thriving economy. The Department of Environmental Qualitys Water Quality program is responsible for ensuring this expectation can be met and accomplishes it through a comprehensive approach to water quality monitoring and assessment, pollution prevention and restoration. The Governors budget for this program is $58 million total funds, of which $19.6 million is General Fund from income tax revenue. Fees paid by businesses and individuals to control emissions into water bodies provide $22.6 million of the program budget. The remaining $11.9 million of funding comes from the US Environmental Protection Agency. The program operates with 218 positions. The Governors budget will restore program capacity lost through revenue shortfalls, increase monitoring of streams and groundwater, begin implementation of the Integrated Water Resources Strategy, and increase pesticide stewardship partnerships. This will allow 27,291 Oregonians to receive permits, licenses and technical assistance while improving water quality trends one percentage point

2013-15 Governor's Recommended Budget

F-7

Healthy Environment Outcome Area

Healthy Environment

Fish and Wildlife Conservation: The Oregon Department of Fish and Wildlifes Conservation program works to ensure the long-term health of Oregons native fish and wildlife and their habitats. Using the federally-approved Oregon Conservation Strategy as a blueprint for action, program staff work with Oregons private landowners, public land managers, conservation groups, state and federal agencies, anglers, hunters, farmers, foresters, ranchers and others toward the Strategys goals. Conservation staff inspect and decontaminate boats with invasive species, consult with landowners and managers to create healthy habitats, present educational materials, perform scientific reviews, and fund conservation projects. They also perform on-the-ground species research, monitoring, and habitat restoration and manage threatened, endangered and sensitive species. Staff also respond to public inquiries about living with wildlife, wildlife viewing opportunities, invasive species, wolf depredation, and other related issues of public concern. The primary performance metric for ensuring the long-term health of Oregons native fish and wildlife and their habitats is the implementation of actions identified in the Strategy. The Conservation program achieved over 18,000 individual implementation actions in the 2009-11 biennium and projects achievement of more than 30,000 individual implementation actions in the 2011-13 biennium to conserve Oregons priority species and habitats. The Governors budget for this program is $7.5 million, which includes $1.2 million Lottery Funds, $4.9 million Federal Funds, and $1.4 million from aquatic invasive species boat fees, income tax checkoff contributions, habitat stamp purchases, donations, and interest income. The budget will fund 34 positions and approximately 30,000 implementation actions. The budget renews the aquatic invasive species boat inspection program with $1.0 million from aquatic invasive species boat fees from the Oregon State Marine Board. It also includes $1.2 million Federal Funds from the Bonneville Power Administration to mitigate wildlife habitat losses in the Willamette River Basin caused by flood control and hydropower projects. Fish and Wildlife Habitat Resources: The Oregon Department of Fish and Wildlifes Habitat Resources program provides guidance for activities that affect fish and wildlife habitats. It offers technical assistance, tax incentives, and grants to private and public landowners, businesses, and governments to help conserve fish and wildlife habitats and to ensure that landowners meet environmental protection standards. This includes the Western Oregon Stream Restoration sub-program. Habitat Resources program staff consult with other agencies that have statutory requirements to consult with the agency, such as the Department of Transportation. The program anticipates achieving approximately 27,000 individual habitat actions during the 2011-13 biennium. One measure of the programs performance is the cost per habitat action performed by program staff. In recent biennia, costs have ranged between $300 and $500 per habitat action. The Governors budget for this program is $8 million, which includes $1.7 million General Fund, $2.0 million Federal Funds, and $3.8 million from contractual agreements with nonfederal entities and from hunting and angling license fees. The budget will fund 25 positions and roughly 44,000 individual habitat actions during the 2013-15 biennium. The budget provides $0.3 million from Portland General Electric and the Idaho Power Company for work related to siting two major electric transmission lines
2013-15 Governor's Recommended Budget F-8 Healthy Environment Outcome Area

Healthy Environment

Inland Fisheries (excluding Hatchery Management): The Oregon Department of Fish and Wildlifes Inland Fisheries program ensures the conservation and sustainable use of Oregons inland fish populations. The program provides policy and management direction for Oregons freshwater fishery resources, ensuring native species are conserved and hatchery programs impacts on native fish are minimized. It also fosters and sustains opportunities for sport, commercial, and tribal fishers consistent with the conservation of native fish. The program works to 1) prevent the serious depletion of native fish, 2) maintain and restore naturally produced fish to provide substantial ecological, economic and cultural benefits to the citizens of Oregon, and 3) foster and sustain opportunities for fisheries consistent with the conservation of naturally produced fish and responsible use of hatcheries. One measure of the programs success is the recovery of Oregon Coast coho salmon. From the mid-1960s to the mid-1990s, there was a long and steep decline in Oregon Coast coho salmon spawners in coastal rivers. Significant investments were made in harvest and hatchery reform, habitat restoration, and monitoring to reverse declines and gauge success. There has been a strong upward trend in spawners in coastal rivers over the past 15 years. In 2011, anglers spent more than 450,000 hours fishing for Chinook and coho salmon on coastal streams, harvesting more than 8,000 wild coho salmon. This is the largest harvest of wild coho in over 20 years, made possible by strong returns and sustainable management. The Governors budget for Inland Fisheries, excluding Hatchery Management, is $91.9 million, which includes $5.4 million General Fund, $3.1 million Measure 76 Lottery Funds, $43.1 million Federal Funds, and $40.3 million from hydropower facility fees, recreational angling license and tag sales, contractual agreements with nonfederal entities, and several other sources. The budget will fund 669 positions and will continue the efforts of the program as described above. The budget includes continuation of largely federally funded positions for fish research, monitoring, and evaluation. It also includes $0.2 million General Fund for work on the states Integrated Water Resources Strategy. Land Conservation and Development Grant Program: The Grant program within the Department of Land Conservation and Development distributes general fund reimbursement to 242 cities and 36 counties for local land use planning activities. The Grant Program helps cities and counties plan for livable urban and rural communities, and protect and conserve farm, forest, coastal lands and natural resources. The Governors budget for this program is $1.2 million total funds, all of which is General Fund from income taxes. The Governors budget will continue local planning efforts, although at a reduced level, and it invests in a standard population forecasting process. Land Conservation and Development Planning: The Planning program within the Department of Land Conservation and Development helps communities and citizens plan for, protect and improve the built and natural systems that provide a high quality of life. In partnership with citizens and local governments, the program fosters sustainable and vibrant communities and protects natural resources. The Governors budget for this program is $18.8 million total funds, of which $11.5 million is General Fund. The Governors budget will continue protecting farm and forest land outside of urban growth boundaries. It invests in urban growth management reform, sustainable transportation planning, and information systems modernization. It also funds regional
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resource planning for Douglas, Jackson, and Josephine counties. The recommended budget will allow the program to meet its performance measures for employment-related and housing land supplies. Land Use Board of Appeals: The Land Use Board of Appeals (LUBA) was created by the 1979 Legislature to provide a specialized appellate review body that provides an accessible forum for resolving land use disputes quickly and effectively. The Board also makes its decisions available as an authoritative resource to state and local legislators, land use professionals, city and county land use decision makers, property owners and the citizens of Oregon. The Governors budget for this program is $1.5 million total funds, nearly all of which is General Fund. The Governors budget will continue basic work on appeals. Marine and Columbia River Fisheries: The staff in the Oregon Department of Fish and Wildlifes Marine and Columbia River Fisheries program are the scientists and resource managers who sustainably manage fish and wildlife in Oregons ocean and Columbia Basin. Program staff are Oregons representatives and technical experts on marine and Columbia Basin fish and wildlife issues. They negotiate agreements and outcomes that protect species and key habitats. Staff develop and implement science-based monitoring, conservation, mitigation, and management plans and inform and participate in fisheries management decisions at the state, regional, federal and international levels. The program implements state policy developed by the Legislature, Governor, and Oregon Fish and Wildlife Commission. Program staff conduct rigorous monitoring projects and analyze trends of keystone species such as salmon which are critical to the success of the Oregon Conservation Strategy/Nearshore Strategy. They are critical partners in the successful recovery and delisting of at-risk fish and wildlife species currently listed as threatened or endangered under state and federal Endangered Species Acts (ESA). The value of commercial fisheries is one measurement of the health and sustainability of the resources managed by the Marine and Columbia River Fisheries program. Under the collaborative management of the program and industry, the pink shrimp fishery became the first shrimp fishery worldwide to receive the coveted Marine Stewardship Council certification for sustainability in 2007, partly due to the use of by-catch reduction devices to exclude at-risk species from the shrimp nets. Oregons pink shrimp fishery is a critical commercial driver, bringing in more than $40 million in 2011. The Governors budget for this program is $37.2 million, which includes $3.4 million General Fund, $0.7 million Lottery Funds, $16.0 million Federal Funds, and $17.1 million primarily from angling license and tag sales and contractual agreements with nonfederal agencies. The budget will fund 230 positions. The budget includes $2.0 million General Fund and $1.6 million Other Funds to enhance offchannel commercial fisheries on the Lower Columbia River to safeguard wild salmon runs. It also includes $1.3 million General Fund and $0.4 million Lottery Funds to continue six positions for nearshore marine resource management. Mined Land Reclamation: The Mineral Land Regulation and Reclamation program administers the Mined Land Regulation Act for the state and regulates mineral, aggregate, oil and gas, and geothermal exploration, extraction, and development. The programs 11 staff work to eliminate or minimize to the greatest extent possible the
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environmental impacts of mineral development onsite and off-site during the life of the mining project and to ensure an approved secondary beneficial use at the end of mining. The Governors budget for this program is $2.3 million Other Funds, all of which is generated by fees. The Governors budget allows continued inspection of mine sites and adds resources for modifying outdated mining rules. Oregon State Police Fish and Wildlife: The Fish and Wildlife program of the Oregon State Police provides statewide natural resource protection and rural law enforcement services. The mission of the program is to enforce and assure compliance with the laws that protect and enhance the long-term health and equitable utilization of Oregons fish and wildlife resources and the habitats upon which they depend. Equally important is service to the public, public safety, and enforcement of all criminal, traffic, boating safety and all-terrain vehicle laws. The Fish and Wildlife program is the law enforcement arm for Oregons other natural resource agencies, supporting the shared mission of protecting and enhancing Oregons natural resources and the environment. The Governors budget for this program is $35.3 million total funds. Funding is derived in part from General Fund and Measure 76 Lottery Funds, and in part from fee revenue transferred from the Department of Fish and Wildlife. This level of funding supports current service levels for the program. Oregon Wetlands Revolving Fund: The Oregon Wetlands Revolving Fund within the Department (DSL) of State Lands is used to provide a mitigation option for removal-fill permits that impact wetlands and waterways. Mitigation credits are sold to applicants and the funds are used by DSL to construct mitigation sites through a grant program. This program contributes well to the Healthy Environments outcome and is fairly effective. The Governors budget for this program is $1.8 million total funds. The program operates with one position. The Governors budget will maintain capacity and increase credits sold in the future, in part because of an expansion of the In-Lieu Fee Mitigation Program in six additional watersheds. Growth should also pick up as the economy recovers from the recent recession. The Department estimates a 10 percent increase per biennium. Parks and Recreation Community Support Grants: Parks and Recreations Community Services and Grants program serves Oregon property owners, local governments and organizations, and land managers by assisting them to navigate state and federal laws related to historical and archaeological resources, and by providing matching grants to fund citizen needs. This program is funded with constitutionally-dedicated Lottery Funds, Federal Funds, and Other Funds (such as Oregon ATV funds). The Governors budget for this program is $34.5 million total funds, of which $13.0 million is constitutionally-dedicated Lottery Funds. Measure 76 requires that 12 percent of the Lottery Funds dedicated to parks be used for local grants, and this amount meets that requirement. The program operates with 29 positions.

2013-15 Governor's Recommended Budget

F-11

Healthy Environment Outcome Area

Healthy Environment
Parks and Recreation Direct Services: The Direct Services program of Parks and Recreation consists of state park operations (directly providing state park experiences to Oregonians and tourists), planning (plotting a course so parks meet public needs), and special accounts (donations, interest and small-scale, self-generated income set aside for maintenance). It delivers direct overnight and day-use services at over 250 state park properties and the ocean shore, which receive over 40 million visits a year. The Governors budget for this program is $94.0 million total funds; of which $32.5 million are constitutionally-dedicated Lottery Funds and $59.5 million are park user fees. The program operates with 704 positions. The Governors budget will allow the parks system to continue services at its 250 properties. Park Development: The Park Development program seeks to make strategic park acquisitions. It engages in enhancement of existing properties and major maintenance projects. In exploits improvements in design and engineering technologies to improve project efficiency. The Governors budget for this program is $27.5 million total funds, of which $22.7 million is constitutionally-dedicated Lottery Funds dedicated to parks by Measure 76. The remaining funding comes from park user fees and federal grants. This program operates with 13 positions. The Governors budget will maintain the ability to acquire and develop land. Pollution Control Bond Finance Debt Service: The Pollution Control Bond Fund Debt Service program contains the Department of Environmental Qualitys debt service for its Orphan Site bond program, as well as debt service to support the Clean Water State Revolving Fund (reported in the Economy and Jobs outcome area). The Governors budget for this program is $21.8 million total funds, of which $4.7 million is General Fund. The Governors budget will pay existing debt. The program does not include positions. Private Forests: The Private Forests program administers and enforces Oregons Forest Practices Act, which seeks to protect and maintain soil, air, water, and wildlife habitat on the 35 percent of Oregons forestland base (10.7 million acres) under private ownership. The program strives to keep private forests providing environmental, economic, and social benefits. Department stewardship foresters provide on-the-ground education and inspections to gain a high level of compliance with best management practices and prescriptive rules in reforestation, harvesting, road construction and maintenance, chemical application, and riparian area protection. Compliance with the Forest Practices Act was 98 percent in 2007 and 2008. Environmental monitoring ensures that rules and best management practices are effective at protecting resources. The program also surveys, detects, and responds to forest health threats. The Governors budget for this program is $36.1 million, which includes $14.2 million General Fund, $12.2 million Federal Funds, and $9.7 million primarily from the forest products harvest tax. The budget will fund 114 positions, which includes an increase from the 2011-13 biennium for additional stewardship foresters and for water quality monitoring.

2013-15 Governor's Recommended Budget

F-12

Healthy Environment Outcome Area

Healthy Environment
South Slough National Estuarine Reserve: The South Slough National Estuarine Research Reserve is a 6,000-acre protected area located on the South Slough inlet of the Coos Estuary near Coos Bay. Established in 1974 by the Oregon Legislature, it is a partnership with the National Oceanic and Atmospheric Administration (NOAA) and the State of Oregon (Department of State Lands). The program is administered by the Dept. of State Lands. The mission of the South Slough Reserve is to improve the understanding and management of estuaries and coastal watersheds in the Pacific Northwest. The South Slough was the first of 28 reserves nationwide, and is the only program of its kind in Oregon. This programs scope is geographically narrow when compared with other programs. The Governors budget for this program is $3.5 million total funds. Funding includes a grant-in-aid agreement with the US Department of Commerce. Common School Fund revenues also support the program. It operates with 16 positions. The Governors budget maintains capacity and allows for work on improving forest management implementing alternative energy and climate change programs, and testing a non-regulatory approach to understanding and managing conditions in the South Slough and adjoining coastal watersheds. State Lands Capital Improvements: This program provides funds for maintaining Department of State Lands owned Common School Fund assets on about 770,000 acres of surface trust land throughout the state. The goal is to ensure that state properties maintain their asset value and revenue-generating potential over the long term. This programs primary purpose is to protect and enhance asset values that contribute to education, with Healthy Environments outcomes secondary. The Governors budget for this program is $0.6 million total funds. Funding comes from the Common School Fund. It does not include positions. The recommended budget maintains capacity to manage land assets for the greatest return to the Common School Fund and replace the heating and ventilation system at the Salem headquarters building. Water Resources Directors Office: The Water Resources Department is Oregons water quantity agency, managing the system of water allocation and distribution throughout the state. The Directors Office is responsible for developing and supervising the policies and programs that ensure water is managed according to Oregon Water Law. The Governors budget for this program is $2.4 million total funds, all of which is General Fund from income taxes. It operates with six positions. The Governors budget provides for experts who work with nine federally recognized tribes, 36 counties, 242 cities, and scores of stakeholder and industry association groups, dozens of media outlets, 90 state legislative offices and seven congressional offices. The Directors Office can expect to field several hundred requests for public information and public records during each biennium. Water Resources Technical Services: The Technical Services of the Water Resources Department program provides the best available science for water management decisions related to supporting a healthy environment. The Governors budget for this program is $13.2 million total funds, of which $5.9 million is General Fund from income taxes. Fees provide $6.2 million of the budget, and the remainder comes from various federal agreements. It operates
2013-15 Governor's Recommended Budget F-13 Healthy Environment Outcome Area

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with 46 positions. This budget supports the operation and maintenance of more than 200 stream gauges, a network of 368 monitoring wells and an inspection program for 940 dams. It includes revenue from a proposed broad-based water right management fee. Watershed Enhancement Board: The Oregon Watershed Enhancement Board delivers grants to local community organizations across Oregon as they implement, track and monitor science-based projects with private landowners that restore land, water and fish and wildlife habitat, and provide Oregon jobs. The Governors budget for this program is $92.9 million total funds, of which $58.2 million is Lottery Funds dedicated by the Oregon constitution for watershed conservation and restoration. About $32.7 million of the program budget comes from federal Pacific Coastal Salmon Recovery Funds. In the period between 2013 and 2023, grants are expected to result in habitat restoration on 500,000 acres and improve 2,500 miles of stream habitat based on prioritized needs. An estimated 800 and 1,300 local jobs may result from the proposed 2013-15 biennium investment. Wildlife Management: The Oregon Department of Fish and Wildlifes Wildlife Management program manages game mammals, game birds, furbearing animals, and predatory species. It regulates hunting, trapping, and wildlife viewing consistent with state and federal law. It monitors and conducts research on animal populations. Program staff also manage and improve wildlife habitat, help Oregonians deal with wildlife damage, and help maintain and increase public access to wildlife and wild lands. The program includes regional operations, a wildlife volunteer program, and administration of dedicated and obligated funds established by the Legislature for wildlife management. It also includes access and habitat programs to enhance and improve hunting access to private lands. Total spending on Wildlife Management has kept pace with inflation over the last 12 years. The programs key indicator of elk populations at 90 percent or greater of management objectives has remained largely stable. As with all wildlife populations, hunter harvest is only one factor that affects status. The observed stability in the key indicator is despite dramatic reductions in hunting opportunity and reduced harvest over the same 12 years. The Governors budget for this program is $53.9 million, which includes $0.5 million General Fund, $18.4 million Federal Funds, and $35.0 million primarily from sales of hunting licenses, tags, and upland bird and waterfowl validations. The budget will fund 164 positions and will continue efforts to maintain wildlife populations at management objectives. It also includes resources for Greater sage-grouse recovery and for a land exchange in the Coquille Valley to protect waterfowl and salmonids.

2013-15 Governor's Recommended Budget

F-14

Healthy Environment Outcome Area

State Government Administration

STATE GOVERNMENT ADMINISTRATION


10-YEAR GOAL: Government will be trustworthy, responsive, and solve problems in a financially sustainable way
2011-13 Leg Approved Budget General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $558,628,002 $35,737,014 $1,843,216,905 $387,229,737 $8,001,468,021 $4,374,412 $10,830,724,091 5582 5,452.42 2013-15 Governors Budget $625,167,792 $37,852,179 $1,837,058,292 $378,428,904 $9,737,643,963 $4,374,411 $12,620,525,541 5692 5,549.96

2013-15 Budget Overview


The Governors budget was built using a new process that requires the state to set clear budget limits, expectations and criteria for investment. It seeks to deliver critical public services more efficiently and effectively by integrating, streamlining and reducing redundancy. It changes the focus of the biennial budget from balancing the bottom line to budgeting to meet long term outcomes. And it directly involves Oregonians from outside government in recommending program investment levels with accountability measures to track progress over time. Citizens who participated in the process noted that the structure of state government does not always align with achieving long term outcomes. Citizens reviewing the budget recognized agencies operated in silos and there are opportunities to eliminate redundancies. They called specifically for the need to reform the structural problems caused by years of piecemeal agency expansions without a clear vision for how government should operate. To begin the transition and reform, this budget proposes two structural changes in state government service delivery. The Oregon Housing and Community Services department and the State Library are each only getting one year of appropriation and direction to study their service delivery model and come back to the 2014 Legislative Session with a plan on how to most effectively and efficiently deliver their services to Oregonians.

2013-15 Governor's Recommended Budget

G-1

State Government Administration

State Government Administration


In an additional attempt to foster cross-agency collaboration, the Chief Operating Officer (COO) is tasked by the Governor to develop an enterprise-wide approach to the management of state government. To assist in this effort, the COO formed the Enterprise Leadership Team (ELT), consisting of the directors of the twenty largest state agencies and representatives of the statewide elected officials. The ELT formed a subgroup, called the Improving Government Steering Committee, and tasked it with oversight of enterprise projects. During the first year of the biennium, it solicited information from front line staff in agencies across the enterprise and identified a number of initiatives that would provide efficiencies in government, and in the long term, potentially save money. This budget continues to fund those priority initiatives.

Outcome Area Overview


The State Government Administration area has a combination of programs that provide internal administrative functions for state agencies and direct services to support state government operations. Direct service programs include functions of the Department of Administrative Services like statewide facilities management, motor pool management, printing and distribution as well as statewide human resource, fiscal, and information technology policies and systems. Other direct service programs include the Governors Office, the Government Ethics Commission, the Oregon Advocacy Commissions, the Employment Relations Board, the State Library Government Research Services, the Employment Departments Office of Administrative Hearings, the Citizen Initiative Review Commission, and the Department of Justices programs to defend state agencies. Additional programs in this area include: the Public Employees Retirement System and most of the Department of Revenue programs. Internal administrative functions include finance, information technology, human resources and procurement services.

Recommended Budget and Key Investments


The Governors budget for the State Government Administration outcome area equals $12.6 billion total funds and includes $625 million General Fund and $38 million Lottery Funds. General Fund/Lottery Funds growth from the 2011-13 Legislatively Approved Budget is 11.6 percent. Key investments in the 2013-15 Governors budget for State Government Administration include: A holdback of approximately 10 percent of statewide administrative costs for Finance, Information Technology, Human Resources, Accounting, Payroll, and Procurement activities. The Improving Government subcommittee of the Enterprise Leadership Team will sponsor functional teams to determine how best to provide these administrative services statewide with less total resources. Half of the holdback, or approximately five percent of administrative costs, has been reinvested into agency budgets. Several statewide projects funded with 2011-13 funds are projected to produce savings in 201315. These include renegotiating lease space, optimizing office and warehouse space, electronic timekeeping and paystubs, data storage consolidation, email consolidation, and an enterprise software license. Over $180 million total funds in capital investments. These investments include:
G-2 State Government Administration

2013-15 Governor's Recommended Budget

State Government Administration


o $79.4 million for the construction of a new 174 bed Oregon State Hospital on the Junction City campus o $27.4 million for the preservation and seismic retrofit of the Supreme Court Building o $16.0 million for improvements to several state owned buildings such as HVAC improvements, roof replacements, electrical upgrades, and carpet replacements o Critical Security and Maintenance Needs at Adult and Youth Correctional Institutions. The Governors budget includes $10 million of bond proceeds to address critical infrastructure needs at the Department of Corrections and the Oregon Youth Authority. These investments address life and safety needs and deferred maintenance costs at those facilities. o Military Department Armory Upgrades. The Governors budget adds $7.4 million in bond proceeds for additions and alterations to extend the useful life of three armories in Roseburg, Grants Pass and Portland. o $45.6 million for development of a statewide Human Resource Information System (HRIS). The existing human resource (HR) applications, the Position Personnel Database (PPDB) and the Position Information Control System (PICS) lack the needed functionality and flexibility to allow state agencies to deliver needed HR services. This project will implement a Human Resource Information System that is scalable, maintainable, upgradeable and fit for use by a large variety of stakeholders. o $2.6 million for the purchase of Facilities Assessment and Planning software to assist with the development of a master facilities plan for the DAS owned buildings.

STATE GOVERNMENT ADMINISTRATION


Page Program
G-6 G-6 G-6 G-6 G-7 G-7 G-7 G-7 Administrative Hearings, Office of Administrative Services Bonds Administrative Services Capital Construction Administrative Services Capital Improvements Administrative Services Core Services Administrative Services Debt Service Administrative Services Misc Distributions Advocacy Commissions Office

FF GF/LF
0.4

OF/FF
25.5 359.9 16.8 6.0 4.2 35.5 24.0 0.0

Total funds
25.5 359.9 16.8 6.0 4.2 35.5 24.0 0.5

2013-15 Governor's Recommended Budget

G-3

State Government Administration

State Government Administration

STATE GOVERNMENT ADMINISTRATION (CONTINUED)


Page Program
G-8 G-8 G-8 G-9 G-9 G-9 Agriculture Administration and Support Services Blind Commission Administrative Services Business Development Shared Services/Central Pool Chief Financial Office Chief Human Resource Office Chief Information Office

FF GF/LF
1.3 0.2 6.8 3.0 14.8 2.1 1.4 0.4 12.7 25.6 133.6 20.0 158.1 G-4

OF/FF
9.2 1.5 1.5 14.7 48.2 12.6 7.5 0.0 0.0 2.1 12.5 91.3 187.0 5.7 190.7 21.7 43.2 1.6 26.9 4.3 15.3 5.1 2.4 2.8 151.6 123.7 81.8 22.7 107.6 168.4 27.4 58.7 17.6 6.5

Total funds
10.5 1.7 8.3 14.7 48.2 12.6 10.5 0.0 14.8 4.2 12.5 91.3 187.0 5.7 190.7 21.7 44.6 1.6 27.3 4.3 15.3 5.1 2.4 15.5 177.2 123.7 215.4 42.7 107.6 326.5 27.4 58.7 17.6 6.5

G-10 Chief Operating Office G-10 Citizens' Initiative Review Commission G-11 Corrections Human Resources G-11 Employment Relations Board G-11 Energy Administrative Services G-12 Enterprise Asset Management G-12 Enterprise Goods & Services G-13 Enterprise Human Resource Services G-13 Enterprise Technology Services G-13 Environmental Quality Agency Management G-14 Fish and Wildlife Administration G-14 Fish and Wildlife Capital Construction G-14 Forestry Agency Administration G-14 Forestry Capital Improvements G-15 Forestry Equipment Pool G-15 Forestry Facilities Maintenance and Development G-16 Government Ethics Commission General Program G-16 Governor's Office General Program G-16 Health Authority Central Services G-17 Health Authority Shared Services G-17 Health Authority State Assessments and Enterprise-wide Costs G-17 Human Services Central Services G-18 Human Services Shared Services G-18 Human Services State Assessments and Enterprise-wide Costs G-18 Justice Administration G-18 Justice General Counsel G-19 Liquor Control Commission Administration and Support G-19 Marine Board Administration / Education
2013-15 Governor's Recommended Budget

State Government Administration

State Government Administration

STATE GOVERNMENT ADMINISTRATION (CONTINUED)


Page Program
G-19 Military Administration G-20 Military Capital Debt Service G-20 Multistate Tax Commission G-20 Oregon Youth Authority Program Support G-21 Parks Central Services G-21 Parks Directors Office G-21 Personal Tax and Compliance G-21 Property Tax G-22 Pubic Employees Retirement System Tier One and Tier Two Plan G-22 Public Employees Retirement System Debt Service G-22 Public Employees Retirement System Operations G-22 Public Safety Memorial Fund G-23 Public Safety Standards and Training Admin and Support Services G-23 Public Service Retirement Plan G-23 Public Utility Commission Policy and Administration G-24 Revenue Administrative Services G-24 Revenue Business Division G-24 Revenue Executive Section G-25 Revenue General Services G-25 Special Governmental Payments G-25 State Library Administration G-26 State Library Government Research and Electronic Services G-26 State Police Administrative Services G-26 Transportation Central Services G-27 Trial G-27 Veterans' Affairs (Nonlimited)

FF GF/LF
4.4 7.8 4.7 29.4 14.3 1.9 62.8 14.5 10.1 45.2 22.3 6.1 4.8 20.1 0.1 39.0 -

OF/FF
1.9 0.1 0.3 2.1 20.1 2.8 1.4 11.3 8,540.9 1.3 82.6 0.3 10.2 737.0 12.7 7.0 14.7 0.7 2.9 0.5 2.4 8.6 188.6 26.1 150.5

Total funds
6.2 7.9 4.9 31.4 34.4 4.7 64.1 25.7 8,540.9 1.3 82.6 0.3 20.3 737.0 12.7 52.2 37.1 6.8 7.7 20.1 0.5 2.4 47.6 188.6 26.1 150.5

2013-15 Governor's Recommended Budget

G-5

State Government Administration

State Government Administration

Improving Government Programs


Administrative Hearings, Office of: The Office of Administrative Hearings (OAH), located in the Employment Department, holds contested case hearings on behalf of over 80 agencies, boards and commissions. These hearings provide citizens and businesses an opportunity to dispute actions taken against them by the state. OAH is funded by state agencies based on staff and other costs to conduct the hearings. The Governors budget is $25.5 million Other Funds and 111 positions. This level of funding will require OAH and referring agencies to manage caseloads and control costs. Administrative Services Bonds: This program, within the Department of Administrative Services, includes payments of specific amounts as directed by law. Payments are made on Article XI-O Bonds and Oregon Appropriation Bonds. The Governors budget for this program is $359.9 million. Administrative Services Capital Construction: The Department of Administrative Services (DAS) Capital Construction program is for the acquisition or construction of any structure or group of structures, all land acquisitions, assessments, improvements or additions to an existing structure which is to be completed within a six-year period with an aggregated cost of $1 million or more, and planning for proposed future Capital Construction projects. The Governors budget for this program is $16.8 million. The primary revenue source is the depreciation component of the uniform rent DAS charges other state agencies. Administrative Services Capital Improvements: The Capital Improvements program within the Department of Administrative Services is for remodeling and renovation projects that cost less than $1 million. The purpose of the program is to maintain health and safety standards both inside and outside of the buildings, keep buildings in compliance with new building code and ordinance requirements, maintain Capitol Mall buildings and grounds, adjust or modify existing mechanical and electrical programs to minimize energy consumption, upgrade building grounds, evaluate and conserve maximum efficiency and use of state owned buildings, and adapt buildings to required occupancy changes. The Governors budget for this program is $6.0 million. The primary revenue source is the depreciation component of the uniform rent DAS charges other state agencies.

2013-15 Governor's Recommended Budget

G-6

State Government Administration

State Government Administration


Administrative Services Core Services: Core Services, within the Department of Administrative Services, provides budget, business continuity, performance management, and data analysis services. This program is also responsible for DAS records management, information security, and administrative rules programs. It coordinates rate development; calculates rates, fees, and assessments; performs financial analysis for DAS divisions; develops the statewide price list of goods and services; and prepares and monitors the Department of Administrative Services biennial budget. The Governors budget for this program is $4.2 million, which is funded through assessments to other DAS divisions. Administrative Services Debt Service: This program includes debt service payments that are specific to the Department of Administrative Services. Payments are for Certificates of Participation (COPs), State Energy Loan Programs (SELP), and Article XI-Q Bonds. The Governors budget for this program is $35.5 million Administrative Services Miscellaneous Distributions: In accordance with legislative directives, the Department of Administrative Services receives and distributes certain federal, lottery, and state moneys to state agencies and local governments. The Governors budget for this program is $24.0 million for payment of mass transit assessments. Advocacy Commissions Office: The Oregon Advocacy Commissions Office (OACO) was established in 2005 to provide administrative services to support four commissions: the Oregon Commissions on Asian and Pacific Islander Affairs, Black Affairs, Hispanic Affairs and the Oregon Commission for Women. The individual commissions were established to advise the Governor and legislators, improve public policy, grow leadership and increase the success of Oregons communities of color and women with the understanding that this includes communities of the most underrepresented and underserved citizens and their children in Oregon. The Governors budget for this program is $0.5 million total funds. The vast majority of the funds are from the General Fund. The agency receives a small amount of Other Funds revenue in the form of charitable contributions. The office supports the work of the four Advocacy Commissions and their 44 Commissioners. This budget will support 58 individual Commission meetings, 24 Joint Chair meetings, and four Joint Commission during the 2013-15 biennium. OACO will also be able to support special functions of the Commissions, including the Women of Achievement Awards, Heritage Month functions, Legislative Days, fundraisers and others.

2013-15 Governor's Recommended Budget

G-7

State Government Administration

State Government Administration


Agriculture Administration and Support Services: The Oregon Department of Agricultures Administration and Support Services program manages the department and provides related leadership, policy development, interagency coordination, collaboration with agricultural industries, financial management, information systems support, accounting, payroll, budgeting, licensing, procurement and contracting, human resources, public affairs coordination, and staff support for the Board of Agriculture. It also provides voluntary mediation of agricultural credit problems between growers and lenders. The Governors budget for this program is $10.5 million, which includes $1.3 million General Fund as well as funds from service charges, cost reimbursements, assessments, and transfers from other agency programs. This budget continues the programs operations at the current level. Blind Commission Administrative Services: The Administrative Services program of the Oregon Commission for the Blind fulfills statewide leadership and business functions for the Commission. Major activities include management of Human Resources, Budget, Accounting, Operations, and Information Systems. The expected outcomes for this program are that the agency is in compliance with all applicable state and federal laws, regulations, and policies to allow efficient and effective delivery of the agencys other programs. The Governors budget of $1.7 million supports the business functions for the agencys four major programs. The budget for these services is funded by the federal Rehabilitation Services Administration of the U.S. Department of Education. These funds require matching funds that come from the state General Fund, from cooperative agreements with educational partners, and from donations. The match rate for the vocational rehabilitation program is 4:1 federal to state dollars. For the independent living programs the match is 9:1 federal to state resources. Business Development Shared Services/Central Pool: The Shared Services Program of the Oregon Business Development Department program functions include: the Directors Office, Employee Services, Fiscal and Budget Services, Strategic Services and the Technology Project Office. The majority of Shared Services customers are department staff or stakeholders. Shared Services functions are primarily funded using Lottery Funds, but also rely on Other Funds for less than 20 percent of costs. These functions provide support to the other programmatic areas of the agency. The Governors budget for this program is $8.3 million total funds, $6.8 million Lottery funds and $1.5 million Other Funds. These functions support the other programmatic areas of the agency, and thus, expected results for the Shared Services area are assisting the Business Innovations and Trade Division, Infrastructure Financing Authority and Arts/Cultural Trust in achieving their programmatic missions. Additionally, the program ensures compliance with state and federal reporting requirements and timelines.

2013-15 Governor's Recommended Budget

G-8

State Government Administration

State Government Administration


Chief Financial Office: The Chief Financial Office (CFO), within the Department of Administrative Services, provides direct oversight of agency fiscal performance and is an integral part of assisting the Governor and the Chief Operating Officer manage state government. Much of the work performed by the Office provides context for the Governor as he develops his long-term objectives. The Office also provides oversight and guidance to state agencies, aligning them with the Governors vision. The Governors budget for this program is $14.7 million, which is funded through assessment fees paid by state agencies. The CFO is beginning the process of establishing a long-term facility plan to guide the development and operation of the states physical infrastructure. The budget provides funding for additional staff to work with agencies to develop a long range capital and facility management plan. The budget also funds a software system to assess the states current facility inventory and project future needs based on a facility life cycle model. During 2013-15, the assessment would initially start with DAS owned facilities. Chief Human Resource Office: The Chief Human Resources Office (CHRO), within the Department of Administrative Services, provides the enterprise-wide policy leadership necessary to maintain a reliable and qualified workforce for the state of Oregon. The Offices centralized policy functions enable Executive Branch agencies to share resources and expertise with which to manage their human resource assets and capital in a costeffective way. The Governors budget for this program is $48.2 million, which is funded through assessment fees paid by state agencies. The budget includes funding for a new Human Resource Information System (HRIS) which will improve HR and budget decision making, provide consistent HR data, create efficiencies through streamlined processes and electronic document storage, reduce or eliminate a large number of redundant systems, and improve the states ability to maintain system compliance with regulations and related statutes. Chief Information Office: The Chief Information Office (CIO), within the Department of Administrative Services, provides enterprise policy leadership, planning and oversight to state government in enterprise information resource management. Working with various state agencies and the Enterprise Leadership Team (ELT), the CIO reviews and assesses information technology initiatives that have the potential for generating significant program related operating efficiencies and or cost reductions on a statewide basis. The Governors budget for this program is $12.6 million, which is funded through assessment fees paid by state agencies. The CIO works in collaboration with the COO and the Enterprise Leadership Team to facilitate the development of a future-facing, shared vision for the use of Information Technology in state government operations.

2013-15 Governor's Recommended Budget

G-9

State Government Administration

State Government Administration


Chief Operating Office: The Chief Operating Office (COO) leads the Department of Administrative Services (DAS) and provides statewide operations and policy leadership. The COO coordinates work teams and initiatives that cross jurisdictional and agency boundaries with a goal of achieving transformative, long-term change and developing an agile organization that is able to meet current and future challenges. The Office of Economic Analysis, which is run by the State Economist, resides in this office. The COO plays a crucial role in developing statewide solutions and providing policy leadership to move the entire state towards achievement of 10-year plan outcomes. The COO brings together state agencies to develop long term strategic policies, statewide initiatives, performance management, communication and budget processes through the convening of the Enterprise Leadership Team. This shared leadership model creates a mechanism for governance and management of state government as an enterprise. The Governors budget for this program is $10.5 million, which is funded through assessments paid by state agencies. The budget includes funding for a new Statewide Initiatives function. The Statewide Initiatives work represents a new distinct function of the office. The work, which primarily consists of managing statewide initiatives through project management and facilitation, has been part of the offices work program throughout the 2011-13 biennium and is now being formalized within the Statewide Initiatives section. In the 2013-2015 biennium, Enterprise Initiatives are expected to double in response to the demands for improvements in state government operations from the Enterprise Leadership Team, the Governor and the Legislature. In order to successfully deliver these projects, additional dedicated project management resources are added. Citizens Initiative Review Commission: The Commission oversees the Citizens Initiative Review process, which was established in 2011 by House Bill 2634. The Citizens Initiative Review process was established to publicly evaluate ballot measures so voters have clear, useful, and trustworthy information at election time. It does this by convening a citizen panel for selected initiatives, and then having the panel review state measures that have been proposed by initiative petition and qualified for the General Election. Once the review of the measure is complete, the panel creates an official statement on the measure for publication in the voters pamphlet. The Boards review process is designed to be an innovative method for publicly evaluating ballot measures at election time. The Commission was officially established in 2012 and conducted citizen initiative review panels on two ballot measure initiatives for the 2012 General Election. The Commission would like to conduct four citizen initiative review panels for the 2014 General Election. The Governors budget for the Commission is $16,401 total funds. The funding for the Commission is exclusively derived from varying private sources, mostly private non-profit entities. The Governors budget supports up to three commission meetings between July 2013 and February 2014, but it does not yet include the costs for four citizen initiative review panels leading up to the 2014 General Election. Instead of building initiative panels into the budget at this time, the Governors budget instructs the Commission to return to the 2014 Legislative session with an updated budget request for the remainder of
2013-15 Governor's Recommended Budget G-10 State Government Administration

State Government Administration


the 2013-15 biennium, including the budget for any citizen initiative review panels, based on tangible revenue receipts. Corrections Human Resources: The Human Resources program of the Department of Corrections is responsible for all aspects of employee services including employee and labor relations, recruitment, personnel records, Family Medical Leave Act management, employee and management training, classification, and compensation. The program is administered centrally and, where determined most effective, staff are deployed at the Department of Correction institutions as an integral part of institution operations. The Governors budget includes $14.8 million total funds, nearly all of which come from the General Fund. This level of funding supports continuing current service levels into the 2013-15 biennium. This will allow the program to continue to support frontline activities of operating prisons and funding community supervision. Employment Relations Board: The Employment Relations Board (ERB) works to resolve disputes concerning labor relations for an estimated 3,000 different employers and 250,000 employees in public and private employment in the state. The agency administers the collective bargaining law that covers state and local government public employees, hears and decides appeals from state employees concerning personnel actions, and administers the collective bargaining law concerning the small number of private employers who are not covered by the National Labor Relations Act. The Governors budget includes $2.1 million General Fund, $2.1 million Other Funds and 13 positions. With this level of funding, ERB hopes to eliminate its caseload backlog, reduce the number of days to process a contested case from 575 to 400, reduce the number of days until a mediator is available from 38 to 30, and improve the quality of recommended and final orders. Energy Administrative Services: The Administrative Services program of the Department of Energy encompasses both the Directors Office and Central Services Division. The Director and Deputy Director provide operation and policy leadership and direction for the agency. Additionally, the Directors Office provides internal audit, communications and outreach, human resource management and government relations activities. Central Services provides shared administrative services including: budgeting, accounting, payroll, contracting, information technology management, database development and management, facilities, records management, employee safety and office reception. Overall, the departments mission is to ensure that Oregon has an adequate supply of reliable and affordable energy and that Oregon is safe from nuclear contamination. It accomplishes its mission by helping Oregonians save energy, develop clean energy resources, promote renewable energy and clean up nuclear waste.
2013-15 Governor's Recommended Budget G-11 State Government Administration

State Government Administration


The Governors budget for Administrative Services is $12.5 million total funds. This program is funded almost exclusively with revenues generated from indirect charges, the Energy Supplier Assessment, and a small portion of direct charges for administrative services that are project specific. A small portion of funding comes from federal funds (U.S. Department of Energy) through direct project charges. The budget supports the continuation of existing programs and provides new investments for implementation of the Governors 10-Year Energy Action Plan. Enterprise Asset Management: Enterprise Asset Management (EAM), within the Department of Administrative Services, is comprised of the Facilities Services Program, the Statewide Fleet Administration and Parking Services Program, and the Oregon Surplus Property Program. The core focus of these programs is property management, both real and personal, for the benefit and optimal use of state government enterprise-wide to support agencies space, travel, and operational needs. The division is responsible for cost effective, quality, and efficient asset life cycle management, acquisition, operation, maintenance, and disposal. These are value-added services that allow state agencies and some local governments to focus on their primary missions. EAM operates and maintains 49 DAS-owned buildings and services nine other state agency-owned buildings with over 3 million square feet throughout out Oregon. These facilities include general government offices, forensic crime and health labs, computer data centers, printing operations, and the Executive Residence. The program also maintains a portfolio of 650 private sector leases covering 4.6 million square feet of office, storage, and special use facilities as well as 300 DAS controlled state leases covering 2.4 million square feet of office and storage space. Additionally, EAM owns and operates 4,000 vehicles used by 120 state agencies and local government customers. The program also manages 4,600 parking spaces located in Salem, Portland, and Eugene. The Governors budget for this program is $91.3 million, which is funded through rent and other charges for services to state agencies and local governments. The budget provides funding to purchase approximately 175 additional vehicles. Enterprise Goods and Services: Enterprise Goods and Services (EGS) within the Department of Administrative Services provides costeffective services to state agencies and, in some cases, to local governments. These are value-added services that allow agencies to focus on their primary missions and core business. Specifically, EGS supports its customers by providing services in publishing and distribution, risk management, procurement services, shared financial services, and financial business systems. The division focuses on providing assistance through responsive customer service, operational efficiency, flexible delivery, and continuous performance improvement. The Governors budget for this program is $187.0 million, which is funded through charges for services to state agencies and local governments. Rates receive review and updating by a customer utility board each biennium.

2013-15 Governor's Recommended Budget

G-12

State Government Administration

State Government Administration


Enterprise Human Resource Services: Enterprise Human Resource Services (EHRS), within the Department of Administrative Services, provides human resource services and data systems to agencies to attract, select, and maintain a reliable and qualified workforce for the state enterprise. The program promotes effective and efficient use of the workforce and reduces employment litigation risk while ensuring accountability to workplace conduct and performance standards. EHRS maintains the human resource database that contains personnel and position information for approximately 37,000 employees and over 41,000 positions in all three branches of state government and historical records for state government going back over 50 years. Transactions in the system statewide average around 25,000 per month. EHRS also administers the iLearnOregon online learning management system and the eRecruit automated state employment recruitment system. The Governors budget for this program is $5.7 million, which is funded through fees for services. This funding level supports human resource management functions for 17 small agencies plus DAS, serving nearly 1,200 employees. Enterprise Technology Services: Enterprise Technology Services (ETS), within the Department of Administrative Services, focuses on maximizing the value of the state technology investments so the business of government runs efficiently, securely, and reliably. Modern, reliable and standardized technology enables numerous business operations within and across government. This facilitates the reuse of new and existing IT assets to quickly leverage standard solutions and services, providing alternatives for the state to obtain multiple returns on each dollar invested. ETS is the leading supplier and expert in managed computing technology for Oregon state government. The telecommunication services provide secure and reliable connection to the people, computers and data necessary to conduct business in or with state government. These services offer flexibility and choice aimed at meeting the varying needs and sizes of government customers. Over 140 agencies, boards, commissions and local governments customers purchase technology services. All services use best practice standards, meet federal and state requirements, and are maintained and monitored to ensure that the technology supporting the governments business is secure and reliable. The Governors budget for this program is $190.7 million, which is funded through rates based on the amount of technology and services used by state agencies. The budget provides the funding required to support growth in customer service requests, customer projects, eGovernment support, security and to mitigate risk associated with the replacement of aging equipment. Environmental Quality Agency Management: The Department of Environmental Quality Agency Management program provides leadership and central business services including human resource management, accounting, budget development, business and information systems management, communications and outreach, health and safety services, and government relations. An important part of Agency Management is implementing DEQs outcome-based
2013-15 Governor's Recommended Budget G-13 State Government Administration

State Government Administration


management system. Outcome-based management goals are to be more efficient, use resources more effectively and improve accountability and transparency. Outcome-based management is a system for setting goals for the agencys core work, and for using performance measures to frequently assesses progress in meeting those goals. DEQ has been engaging progress improvement since 2009 to enable them to provide services to Oregonians in a more efficient way. The Governors budget for this program is $21.7 million total funds, which is funded from charges to the following Department of Environmental Quality programs: Air Quality, Water Quality, Land Quality and Cross-Program. This program operates with 80 positions. Fish and Wildlife Administration: The Oregon Department of Fish and Wildlifes Administration program provides leadership for the agency and its programs and delivers a broad range of administrative services to Department programs. These administrative services include contract management, fiscal and budget services, human resources, issuance of licenses, information management, marketing, and certification of more than 5,000 students each year through the statewide Hunter Education program. The Administration program also pays the expenses of the Oregon Fish and Wildlife Commission. The Governors budget for this program is $44.6 million, which includes $1.4 million General Fund, $2.2 million Federal Funds, and $41.0 million primarily from the sale of hunting and fishing licenses and tags and federal indirect cost recovery. The budget funds 129 positions. Fish and Wildlife Capital Construction: The Oregon Department of Fish and Wildlifes Major Construction and Acquisition program funds large construction and real estate acquisition projects. In the 2013-15 biennium, the program has two projects: 1) the design and construction of a new water intake at the Clackamas Fish Hatchery, and 2) the purchase of 5,623 acres of wetland habitat in Lake County to benefit waterfowl and Greater sage grouse. Both projects are funded by private-sector funds. The Governors budget for this program is $1.6 million, of which $0.6 million is from Portland General Electric for the new water intake and $1.0 million is from the National Fish and Wildlife Foundation for the land purchase. Forestry Agency Administration: The Oregon Department of Forestrys Administration program leads the Department by developing policy, coordinating the Departments programs, assessing forest resources, coordinating land use planning, managing information systems, and providing a wide range of administrative services for the Department. The Governors budget for this program is $27.3 million, of which $24.8 million is transferred from other Department programs and $2.1 million is Federal Funds. The budget includes $0.4 million General Fund for contracted professional services to assist the state in seeking solutions to forest health and economic problems. It also includes $1.3 million from other Department programs for information technology
2013-15 Governor's Recommended Budget G-14 State Government Administration

State Government Administration


support positions and for a shift of positions from two other Department programs. These additions result in a total of 96 positions in the program. Forestry Capital Improvements: The Oregon Department of Forestrys Capital Improvement program provides funding for facilities improvement projects costing less than $1 million. The Department owns 415 buildings, of which 13 are valued at more than $1 million. The facilities comprise 11 Salem headquarters buildings as well as buildings within 12 Fire Protection Districts and five state forests. These include administrative offices, fire dispatch centers, fire equipment warehouses, vehicle repair and fabrication shops, vehicle storage facilities, radio communications facilities, and forest fire lookouts. The total value of these buildings is about $115 million. The Governors budget for this program is $4.3 million primarily from the Forestrys other programs. The budget continues the effort to improve the Departments aging facilities. Forestry Equipment Pool: The Oregon Department of Forestrys Equipment Pool program manages a decentralized motor pool and radio communications pool. The program oversees, directs, and supports the two pools. The motor pool includes five fleets, 16 mechanic shops, and an aviation unit with three aircraft. The radio communications pool includes transmitting and accessory equipment, 58 fixed repeater sites, and three mobile incident repeater communications units. The program supports the radio communications of three Forest Protective Associations and of the Oregon Department of Parks and Recreation and the Oregon Department of Fish and Wildlife. The Governors budget for this program is $15.3 million, primarily from assessments for replacement and administrative support on district ownership of equipment, as well as a mileage assessment on supported vehicles. The budget funds 29 positions, unchanged from recent prior biennia, providing for continued operation and maintenance of motor vehicle and radio communications equipment in the Department. Forestry Facilities Maintenance and Development: The Oregon Department of Forestrys Facilities Maintenance and Management program manages and maintains the Departments 415 buildings, of which 13 are valued at more than $1 million. The facilities comprise 11 Salem headquarters buildings as well as buildings within 12 Fire Protection Districts and five state forests. These include administrative offices, fire dispatch centers, fire equipment warehouses, vehicle repair and fabrication shops, vehicle storage facilities, radio communications facilities, and forest fire lookouts. The total value of these buildings is about $115 million. The Governors budget for this program is $5.1 million from forest landowner assessments, proceeds from state forest operations, and forest products harvest tax.

2013-15 Governor's Recommended Budget

G-15

State Government Administration

State Government Administration


Government Ethics Commission General Program: The Oregon Ethics Commission interprets and applies Oregon ethics laws, executive session provisions of public meeting laws, and oversees lobby regulations. The Commission has an investigation program to hold public officials and lobbyists accountable and a training program to take a proactive approach to providing education to public officials and lobbyists. By ensuring public officials adhere to ethics, executive session, and lobby laws the Oregon Ethics Commission is working to ensure trust in public officials and to improve government. The Governors budget for this program is $2.4 million Other Funds. The Oregon Ethics Commission is funded solely by assessments charged to state agencies and local governmental entities. Over the past two years the agency has found violations of ethics and public meeting laws in 36 of its 113 completed investigations. The Governors budget supports existing services and authorizes investment in an electronic reporting system. Governors Office General Program: The Office of the Governor provides leadership and direction to state agencies that are in the Executive Branch. The office includes: Program area policy advisors; Diversity and Inclusion program (Affirmative Action); Economic and Business Equity (Minority, Women and Emerging Small Business) advocacy; Executive Appointments; Citizens Representative Office; Arrest and Return services (extradition) for all law enforcement agencies; and, Intergovernmental/Regional Solutions.

The Governors policy staff works in the areas of education and workforce development, natural resources, economy and jobs, health and human services, public safety, veterans and military, transportation and intergovernmental relations. The Early Learning and Youth Development programs that were added to the Office during the February 2012 Legislative Session are transferred to the Department of Education in the Governors budget. The Governors budget includes $10.3 million General Fund, $2.4 million Lottery Funds, $2.8 million Other Funds and 54 positions to continue all services of the Governors Office. Most of the Office of the Governor is financed with General Fund. Several staff members are funded with resources transferred from other state agencies. The Diversity and Inclusion program and the Economic and Business Equity program are financed by state agency assessments. Funding for the Intergovernmental/Regional Solutions program is from Lottery Funds. Health Authority Central Services: Central Services for the Oregon Health Authority contains several offices that provide leadership in several dedicated key policy and business areas. The Office of the Director and Policy is responsible for
2013-15 Governor's Recommended Budget G-16 State Government Administration

State Government Administration


overall leadership, policy development and administrative oversight for the agency. The clear direction of the agency is to innovate, improve and rework the state health care system to meet the goals of improving lifelong health of all Oregonians, to increase the quality reliability and availability of care for Oregonians, and to lower or contain the cost of care so it is affordable to everyone. Additionally, this program includes the Human Resources, Budget Planning and Analysis, Communications, the Office of Equity and Inclusion, the Office for the Oregon Health Policy and Research and the Office of Healthy Analytics. Central Services supports goals of the Oregon Health Authority. The Governors budget for this program is $177.2 million total funds. Central Services funding is a mix of Federal Funds, General funds, and Other Funds. The majority of funding is Federal Funds received from Medicaid. Health Authority Shared Services: Shared Services jointly supports the Oregon Health Authority and the Department of Human Services and contains several offices that provide leadership in the delivery of efficient, consistent and coordinated administrative services. The Office of Information Services provides information technology support for 16,000 agency staff and partners located at 350 locations through Oregon while the Information Security Office strives to manage the confidentiality, integrity and availability of information. The Governors budget for this program is $123.7 million total funds. Shares Services is jointly funded by both Department of Human Services and Oregon Health Authority. Health Authority State Assessments and Enterprise-wide Costs: This program contains the funding for services shared by both the Department of Human Services and Oregon Health Authority. It also contains all the State Government Services Charges and debt service for the agency. The Governors budget is $215.4 million and includes funding for enhancements in computer and network infrastructure. Human Services Central Services: Central Services contains the administrative functions for the Department of Human Services. It includes the Directors Office and Operations. The Directors Office provides overall guidance and direction and includes Legislative and Client Relations, Communications, Tribal Relations, Community Engagement, Equity and Multi-cultural Services, Finance, and Human Resources. The Chief Operations Officer is responsible for Shared Services, Internal Audits, Business Intelligence, Licensing and Regulatory Oversight, Continuous Improvement, Information Technology Business Supports, Adult Abuse Prevention and Investigations, Performance Excellence and Program Integrity including the Office of Payment Accuracy and Recovery. The Governors budget for Central Services is $42.7 million. The budget includes funding for additional staff in the Directors office to support agency wide projects.
2013-15 Governor's Recommended Budget G-17 State Government Administration

State Government Administration

Human Services Shared Services: When the agency split, Department of Human Services (DHS) and Oregon Health Authority (OHA) received legislative approval to maintain many administrative functions as shared services to prevent cost increases, maintain centers of excellence and preserve standards that help the agencies work together. This helps keep control over major costs. DHS Shared Services provides optimal business services to ensure accountability, data driven decisions, and stewardship of resources in supports the mission of DHS. Shared Services perform the following key services for both DHS and OHA: budget, forecasting, financial services, facilities, imaging and records management, contracting and procurement, investigations and training, internal audit, payment recovery, and continuous improvement. Other programs include Adult Abuse Prevention and Investigations and the Office of Licensing and Regulatory Oversight. The Governors budget for Shared Services is $107.6 million and is jointly funded by both DHS and OHA. The budget includes funding for additional resources in the Office of Adult Abuse Prevention and Investigations for quality assurance. Human Services State Assessments and Enterprise-wide Costs: This program contains the funding for services shared by both Department of Human Services and Oregon Health Authority. It also contains all the state assessments and debt service for the agency. The Governors budget for this program is $326.5 million. The budget includes funds for enhancements in computer and network infrastructure. Justice Administration: The Department of Justices Administration program provides policy direction and administrative oversight of the department. It directs the operations of the department, establishes the states legal policy, manages all legislative, media, and constituent activities, and coordinates government-to-government tribal relations. It provides the department with financial services, information services, facilities management, purchasing, contract management, mail distribution, library services, continuing legal education, and supplies and property management. It also administers three collective bargaining agreements and recruitment and selection. The Governors budget for this program is $27.4 million, almost all of which is provided by other programs within the department. The budget funds 113 positions and continues the services described above with a slight increase due to the addition of a position to support the mortgage mediation program. Justice General Counsel: The Department of Justices General Counsel Division provides day-to-day legal services to state agencies and officers. These services include providing written and oral advice on application and interpretation of state and federal law, advice and representation in employment matters, representation in
2013-15 Governor's Recommended Budget G-18 State Government Administration

State Government Administration


contested case hearings conducted under the Administrative Procedures Act, drafting and performing legal sufficiency review of contracts, and assisting with development of administrative rules. The Division works to enhance the publics trust in government by ensuring consistent interpretation of law across all state agencies. The Governors budget for this program is $58.7 million, which comes from agencies using the divisions services. The budget will fund 142 positions and continues the services described above with a slightly smaller staff. The annual client survey shows that at least 95 percent of clients are satisfied with the divisions timeliness, accuracy, helpfulness, expertise, availability of information, and overall services. Liquor Control Commission Administration Support: Oregon Liquor Control Commissions Administration and Support Services program provides policy, management, financial, information technology, and communications services to the agency. It also collects about $36 million in privilege taxes due from licensees of the OLCC. The Governors budget for this program is $17.6 million, about 12 percent of the agencys total budget. This budget is funded primarily by liquor sales and continues the programs activities at essentially the same level as in the 2011-13 biennium despite increases in OLCC licensees and liquor sales. Marine Board Administration / Education: The Marine Board is Oregons recreational boating agency, dedicated to safety, education and access. The Marine Boards Administration and Education Division operates with 24 staff and includes the Directors Office, Titling and Registration, Education, the Clean Marina program, the Abandoned Boat program, and Business/Accounting. The Directors Office and Education program establishes regulations to address dangers, informs boaters of safety issues on waterways, and educates boaters on how to operate boats and rules governing operations. The Clean Marina and Abandoned Boat programs keep pollutants out of the waterways and remove potential hazards from the waterway. The Governors budget for this program is $6.5 million, funded primarily by boating fuel taxes and boat registration and title fees. The Governors budget will support the administration of the agencys other programs as well as the maintenance and renewal of about 200,000 boating registration and title documents, issuing more than 30,000 mandatory education cards, issuing more than 200 marine events permits, and issuing a dozen or more Clean Marina certificates. Military Administration: Oregon Military Department - The Administration Program of the Oregon Military Department provides senior-level leadership and support for the command, control, and administration of the Oregon Military Department, the Oregon National Guard, and the Office of Emergency Management. The program supports nearly 2,500 state and federal full-time employees, commands over 8,600 soldiers and airmen, and provides oversight of about $4 billion in facilities and equipment. It includes a command group, financial administration, personnel, public affairs, post-mobilization reintegration, and emergency financial assistance for National Guard members and their families.
2013-15 Governor's Recommended Budget G-19 State Government Administration

State Government Administration


The Governors budget for this program is $6.3 million, of which $4.4 million is General Fund and $1.9 million in support from other programs in the agency. The budget will fund 22 positions, a slight decline from the 2011-13 level of operations due to reductions in public affairs and personnel. Military Capital Debt Service: The Oregon Military Departments Capital Debt Service and Related Costs program is a budget structure that contains the funding to pay principal, interest, and financing costs for Certificates of Participation and Article XI-Q general obligation bond debt used to construct and upgrade Army National Guard facilities and for acquisition of land and facilities. It also contains debt service funding for Article XI-M and Article XI-N general obligation bonds issued for seismic rehabilitation projects on public education and emergency services buildings throughout Oregon. The seismic rehabilitation debt service is transferred to the Oregon Business Development Department. The Governors budget for this program is $7.9 million, of which $7.8 million is General Fund and $0.1 million is transferred from elsewhere in the agency. This budget provides for continued service of existing debt after the transfer of the seismic rehabilitation bond debt to the Oregon Business Development Department. It also provides $0.4 million General Fund for new debt service on three projects to extend the service life of the Roseburg and Grants Pass armories and of Scharff Hall in Portland. Multistate Tax Commission: Oregon is a member of the Multistate Tax Commission (MTC). This is an intergovernmental organization composed of 21 states that have joined in an effort to promote uniformity in state taxation of corporate income. The outcomes of the Department of Revenues participation in this organization are more effective efforts at eliminating double-taxation, bringing about full accountability, and reducing the risk of federal legislation that would restrict state taxation. The dues for this activity are paid from a revolving account that provides for deposit of revenue received from MTC audits and payments of MTC assessments. Account balances in excess of $150,000 are transferred to the General Fund on June 30 of each year. The Governors budget for this program is $0.3 million total funds. Oregon Youth Authority Program Support: The purpose of Program Support within the Oregon Youth Authority is to provide leadership, strategic planning, program direction, and rule and policy development to support the remaining programs in the agency. Program Support includes centralized business services, including information technology, accounting, payroll, procurement, and budget development and execution. Program Support includes maintenance of the Juvenile Justice Information System, which houses all information on an offenders history, demographics, and other information necessary to determine an optimal array of services to minimize the probability of reoffending once the offender is released from custody. The Governors budget for Program Support is $31.4 million total funds. This is a 3.1 percent decrease from the prior biennium and maintains program delivery for the 2013-15 biennium.

2013-15 Governor's Recommended Budget

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State Government Administration

State Government Administration


Parks Central Services: The Central Services program of Parks and Recreation provides basic business support and oversees the central reservation system. It also includes safety services and the volunteer program. Business support includes accounting, payroll, budget, contracts, procurement, human resources and information technology. The Governors budget for this program is $34.4 million total funds, of which $14.3 million is Lottery Funds. The remaining funding is from park user fees. It operates with 75 positions. The budget adds a bond issue once for supporting local efforts to purchase the old paper mill in Oregon City to create a park. The proposal is part of this program because of its fiscal oversight responsibility it is the payer of debt, and will pass through the bond proceeds. Parks Directors Office: Parks and Recreations Directors Office provides executive leadership, administers commissions, provides external communications, and assures quality. The Governors budget for this program is $4.7 million total funds, of which $1.9 million is Lottery Funds and the rest is revenue from park user fees. It operates with 13 positions. The budget will continue the executive management and communications functions for the Oregon Parks and Recreation Department. Personal Income Tax and Compliance: The Personal Tax and Compliance Program within the Department of Revenue is responsible for administering the Personal Income Tax Program, which is Oregons largest source of General Fund revenue. It will generate approximately $13.5 billion in revenues for the 2013-15 biennium. The purpose of this program is to ensure taxpayers are paying their correct share of personal income taxes. It does this by providing information and assistance to individuals so they can file and pay their personal income tax correctly, enforcement activities, and collection of delinquent debt. The amount of personal income tax dollars collected by this program directly impacts the states ability to achieve its 10-year outcome goals. The Governors budget for this program of $64.1 million is funded primarily by the General Fund. However a small amount of Other Funds is received from Tri-Met and from the Lane County Transit Self-Employment Tax programs to reimburse for the administrative costs associated with those programs. Property Tax: The Property Tax Program within the Department of Revenue has statewide oversight responsibilities for Oregons property tax system. Property taxes generate over $5 billion a year state-wide to fund public schools, police and fire departments, and other local government services. The divisions responsibilities include valuation of large industrial properties and valuation of utilities and companies designated by ORS 308.515, which includes airlines, telecommunications, railroads, and gas and electric companies. The program also sets and monitors statewide standards for the assessment and collection of property taxes, and provides tax lot mapping and maintenance services for several counties. The property tax program also collects payments in-lieu of property taxes, such as timber and electric co-op taxes.
2013-15 Governor's Recommended Budget G-21 State Government Administration

State Government Administration

Accurate administration of the property tax system directly impacts local governments ability to achieve their goals. Fifty-six percent of the $25.7 million budget for this program is funded by the General Fund. Most other revenues come from reimbursement for mapping services and from document recording fees and a portion of the interest collected on delinquent property tax payments. Public Employees Retirement System Tier One and Tier Two Program: The Tier One and Tier Two Program represents benefit payments to members of the legacy retirement plans under ORS Chapter 238 that are now closed to new members. Those payments include retirement allowances, account withdrawals, death and disability benefits, and health insurance premium passthrough and subsidy account disbursements. All such funds are held in trust for the exclusive benefit of the plans members. These plans were closed to new members as of December 31, 1995, for Tier One and August 28, 2003, for Tier Two. The program administers public employee benefit trusts for approximately 140,000 non-retired members and approximately 120,000 retired members. The Governors balanced budget for this program is $8.5 billion. It is funded entirely from member and employer contributions, and the resulting investment returns on those contributions, which are held in the Public Employee Retirement Fund. Public Employees Retirement System Debt Service: The PERS headquarters building in Tigard was built in 1996. Certificates of Participation were issued to finance its construction. Under the current debt repayment schedule, PERS is to make the principle payment of $1,110,000 and interest payments of $192,850 during the 2013-15 biennium. The remaining balance is $1.2 million as of May 2015 and will be fully paid by May 2017. Public Employees Retirement System Operations: The Public Employees Retirement System (PERS) Operations Program reflects the costs of administering public employee benefit trusts that provide benefit services to employees of over 900 public employers throughout Oregon. Those services include retirement, disability, and death benefits, as well as a deferred compensation program and a retiree health insurance program. PERS also administers the states obligations under the federal Social Security program. Over 350,000 members are served by PERS. The Governors budget for PERS, at $82.6 million adds positions and resources to improve administration, reporting, and information systems functioning. The agencys budget has fluctuated in recent biennium; however, it remains below the peak expenditures of the 2003-05 biennium. The PERS Operations Program funding level represents a decreasing percentage of the PERS Fund. Public Safety Memorial Fund:
The Public Safety Memorial Fund within the Department of Public Safety Standards and Training was established in recognition of the dangers faced by Oregons public safety officers. The purpose of the Fund is to provide immediate and long-term financial assistance to permanently and totally disabled public safety officers and the families of public safety officers who are killed in service to the citizens of Oregon. When line-of-duty tragedies occur, Department of Public Safety Standards and Training staff works promptly with
2013-15 Governor's Recommended Budget G-22 State Government Administration

State Government Administration


contacts from the officers public safety employer to assist them in working with the officers family members. Benefits may include a statutorily mandated one-time $25,000 lump sum payment, payment of health and dental insurance premiums for up to five years, mortgage payments for up to one year, and higher education scholarships. The Governors budget for this program is $250,000 and is funded from the Criminal Fines Account. The benefits paid will vary based on the number of officers suffering a qualifying death or disability and the number and age of their dependents. Since the inception of the program in 1999, more than $1.5 million has been paid to more than 30 families of injured or killed public safety officers. The number of claims processed ranges from 11 in 2007 to 17 in 2011 for a 5-year average of 10.4 claims per year.

Public Safety Standards and Training Administration and Support Services:


The Administration and Support Services Program of the Department of Public Safety Standards and Training includes the Directors Office, human resources, business services, information services, and facility operations and maintenance. The program is responsible for the maintenance and upkeep of the Oregon Public Safety Academy which sits on 213 acres of land and includes 21 acres of state and federally protected wetlands. The facility includes more than 330,000 square feet of space within 22 buildings located throughout the campus. This program is the foundation of the agency, it helps keep everything in working order. The Governors budget for this program is $20.3 million, which includes $10.1 million in General Fund for debt service on the Oregon Public Safety Academy.

Public Service Retirement Plan: The Oregon Public Service Retirement Plan (OPSRP) program within the Public Employee Retirement System serves public employees who began their service after August 28, 2003. OPSRP is a hybrid retirement plan, designed to provide a reduced benefit from the legacy Tier One and Tier Two retirement plans. The hybrid plan has two components: the OPSRP Pension Program, funded by employer contributions, and the Individual Account Program (IAP), funded by member contributions. All Tier One and Tier Two member contributions made on or after January 1, 2004, have also been deposited in the IAP. The OPSRP program now has over 90,000 non-retired members. The IAP program includes both OPSRP and Tier One & Tier Two members. Consequently, the IAP now has the largest number of members of all PERS retirement programs. The budget totals $737 million. Public Utility Commission Policy and Administration: The Public Utility Commission is an independent policy-making body that consists of three Commissioners appointed by the Governor. The Commissioners establish policies for regulated utilities and makes final decisions on utility rate and service matters.

2013-15 Governor's Recommended Budget

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State Government Administration

State Government Administration


The Commission regulates customer rates and services of the state's investor-owned electric, natural gas and telephone utilities; and certain water companies. The Commission does not regulate people's utility districts, cooperatives or municipally-owned utilities except in matters of safety. The Commission ensures consumers receive utility service at fair and reasonable rates, while allowing regulated companies the opportunity to earn an adequate return on their investment. This program is the central administrative and services arm of the Commission. The Governors budget for the Commission is $12.7 million total funds. The Commission derives its funding through a surcharge on landline and cellular services and through an annual assessment on regulated electric, natural gas, water utilities and telecommunication providers. Revenue Administrative Services: The Administrative Services Division provides infrastructure and services to meet the business needs of the Department of Revenue. It provides a broad range of services through its three sections: Information Technology Services, the Processing Center, and Finance and Procurement. These services are the foundation of tax administration. They directly impact Oregonians ability to comply with tax law. In addition they ensure timely and appropriate revenue generation for state government services. The Governors budget for this program is $52.2 million total funds, primarily from the General Fund. However about 13 percent of other funds comes from other programs within the Department of Revenue that receive services from this division. Revenue Business Division: The Department of Revenue Business Division works with large and small businesses so they can report and pay the correct amount of taxes. Programs administered by the division contribute approximately $6 billion in revenue to the state each year. These programs include Corporation Income and Excise Taxes, Employer Income Tax Withholdings, Transit Payroll Taxes, Fiduciary, Estate, Cigarette Tax, Other Tobacco Products Tax, and other Special Programs such as Amusement Device Tax, State Lodging Tax, Emergency Communication Tax, Petroleum Load Fee, and Hazardous Substance Tax. The division also collects debts owed to other agencies. As of May 2012, they were collecting 218,000 accounts totaling $318.9 million owed to state programs. The outcome for this program is that Oregons tax laws are fairly and consistently applied. The $37.1 million budget is funded by a combination of General Fund and Other Funds. Other Funds revenues come from state agencies who are paying for collection services provided by the Division; transit district payments for collection and audit services provided by the department; and revenue streams for programs such as tobacco and other smaller tax programs administered by the department. Revenue Executive Section: The Executive Section directs the activities of the Department of Revenues four line divisions and the Project Management/General Services Section. It also coordinates the Departments legislative, rule2013-15 Governor's Recommended Budget G-24 State Government Administration

State Government Administration


making, and internal audit activities. The program also includes a Communications Unit to manage forms and publications for taxpayers. In addition the Human Resources Unit manages personnel issues. The outcomes from this program are that the agency operates in a more coordinated manner and is more responsive to taxpayers and to direction from the Governor and the Legislature. The $6.8 million balanced budget is supported primarily by General Fund. About ten percent of the funding is Other Funds. Revenue General Services: The General Services/Program Management Section represents two centralized functions for the Department of Revenue, which are managed centrally for operational efficiency. Such expenditures and fees include postage, Attorney General expenses, county property lien recording and release fees, private collection firm fees, and merchant fees. Agency leadership has created a Program Management Office (PMO) to lead and facilitate the ongoing transformation of people, processes, and technology. The main functions in the PMO include project management, portfolio reporting, process improvement, and metrics. The outcomes for this program include more efficient centralized administration and improved performance metrics that benefit decision-making and improve agency responsiveness and problem solving. The $7.7 million balanced budget is supported by General Fund, Other and Federal Funds. Special Governmental Payments This program, within the Department of Administrative Services, includes payments of specific amounts from the General Fund and from other sources as directed by law. Payments include debt service payments for Southern Oregon Public Television, Oregon Historical Society, Pendleton Round Up, Port of Morrow Education Center, Port of Newport NOAA, Oregon Judicial Department court facilities, Tillamook FEMA Match, Lane Transit EmX, Coos Bay Railway, Mill Creek, Go! Oregon, Eastern Oregon Trade Center, and Milton-Freewater Flood Control. There is also $3.6 million Lottery Funds to support county fair programs across the state. The Governors budget for this program is $20.1 million. The budget includes $0.25 million General Fund for Oregon Public Broadcasting and $0.5 million General Fund for the Oregon Historical Society. State LibraryAdministration: The Administrative Services program of the Oregon State Library provides leadership and direction to the State Library as well as business infrastructure in support of the Librarys programs. Activities include purchasing, accounting, budgeting, staff development, and volunteer recruitment and coordination. Volunteers provide nearly 7,000 hours of service for agency programs. The primary source of funding for this program is from assessments that are paid by other state agencies. General Fund and Federal Funds also support these activities.

2013-15 Governor's Recommended Budget

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State Government Administration

State Government Administration


Only one year of budget authority ($536,588) is included in this budget. Allocation of the second year funds is contingent upon the State Library accomplishing or showing significant progress toward accomplishing the following goals which will require a major reorganization of the agency: 1. Eliminate Government Research Services. 2. Consolidate the State Librarys documents repository and reference services with the State Archives. 3. Reduce the costs for the Talking Books and Braille Services and other Library services by implementing improvements that were identified by the 2011 Workgroup on Libraries and Archives in Oregon State Government. State Library Government Research and Electronic Services: The Government Research Services program of the Oregon State Library provides research and information services to Oregon state employees. It also disseminates state government publications and maintains a digital state documents repository. Other activities include providing information services in the areas of state government publications, Oregon history and genealogy, census information, grant information, and circulating all library materials. Research services are funded by assessments that are paid by other state agencies. The budget reduces the cost of the state government by eliminating the Government Research Services Program. Only one year of budget authority ($2,444,051) is included in this budget to pay for the cost of consolidating the State Librarys documents repository and reference services with the State Archives. State Police Administrative Services: Oregon State Police - The Administrative Services Division consists of six service areas that support the effective and efficient operation of the Department of State Police. These areas provide executive leadership, policy direction, internal audit, budget development and oversight, business services, technology services, employee development, and dispatch services. The Governors budget equals $47.6 million total funds, $39 million of which comes from the General Fund. This level of investment provides for support to the frontline public safety services at current levels. Transportation Central Services: The Central Services program supports the mission of the Oregon Department of Transportation by providing centralized administrative, support, and managerial services to the department, the Oregon Transportation Commission, and external partners and stakeholders. These services are critical to the efficient management of agency resources and also provide vital services and accountability to the Departments partners and the general public. The Governors budget for Central Services is $188.6 million total funds. The Central Services budget is primarily funded by the Departments operating divisions through an assessment. Each division is assessed a prorated share of the Central Services operating costsexcluding the Financial Services Fuels
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State Government Administration


Tax Program. Fuels Tax Program costs are recovered from gross Motor Fuels Taxes and Weight-mile Taxes. The budget supports the continuation of existing programs. Trial: When the state is sued, the Department of Justices Trial Division defends it. The division has represented the Governor, the Legislature, and state agencies, as well as thousands of individual state employees who were sued for their work on behalf of the state. And when an agency must file contract or commercial lawsuits to further its mission, the Trial Division represents that agency in court. The division has four sections, each with a special focus: Civil Litigation, Criminal and Collateral Remedies, Special Litigation, and Defense of Agency Orders. The cost of the Trial Divisions work is primarily driven by two factors: (1) agencies decisions and actions themselves, and (2) the reality that there will always be people who disagree with an agencys decisions, no matter what those decisions are. In state fiscal year 2011, the Trial Division opened 659 new cases and resolved 823 cases in that period. Of those resolved, 95.5 percent were resolved in the States favor through trial, motions, or negotiated settlements. The Governors budget for this program is $26.1 million primarily from billings to clients in other agencies and in other divisions of the Department. The budget will fund 96 positions providing the services mentioned above and allow representation of the state in about 1,300 trial cases. Veterans Affairs (Nonlimited): The Department of Veterans Affairs makes loans to veterans and pays principal and interest on funds borrowed through the sale of Oregon General Obligation bonds. Proceeds generated by the sale of these bonds are used to make home loans to veterans under provisions in the Oregon Constitution, State law and the federal Qualified Veterans Mortgage Bond rules. Repayment periods range from ten to forty years depending on the federal tax rules applicable to the bonds issued. The Governors budget for nonlimited which includes loans to veterans and debt service on general obligation bonds authorized by Article XI-A of the Oregon Constitution is $335.2 million. This is a 24.3 percent decrease from the prior biennium and reflects reduced bond debt service in the 2013-15 biennium.

2013-15 Governor's Recommended Budget

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State Government Administration

Constitutionally Elected Officials

PROGRAM AREA AGENCIES


OFFICE OF THE STATE TREASURER........................................................................................................... H-2 SECRETARY OF STATE .............................................................................................................................. H-4
2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $13,154,574 $0 $66,568,979 $5,632,259 $3,677,332 $0 $89,033,144 282 280.4 2011-13 Legislatively Approved $11,906,971 $0 $77,347,710 $7,559,402 $3,500,000 $0 $100,314,083 282 279.17 2013-15 Agency Request $8,987,057 $0 $100,639,537 $7,740,353 $3,584,000 $0 $120,950,947 318 315.47

Overview
Constitutionally Elected Officials includes the Office of the State Treasurer and the Secretary of State. Under Oregons Constitution and state law, both of these positions are separately elected officials and neither are subject to the Governors executive budgetary control. The State Treasurer is responsible for the sound management of the States financial resources, operating as a multi-billion dollar cash and investment manager. The Secretary of State is responsible for managing Oregons election process, recording corporate filings, auditing state agencies and archiving state records.

Requested Budget
The requested budgets for Constitutionally elected officials continues current programs, provides for program enhancements at the States Records Center and the 529 College Savings Network, shifts costs for the Archives Division from General Fund, increases staffing for the Secretary of State, and increases staffing for the Office of State Treasurer.

Governors Adjustment
The Governor makes no recommendation for the budgets of Constitutionally Elected Officials, as they are not under executive control. The law requires the Governor, however, to submit a balanced budget for state government as a whole. For this reason, the Governors balanced budget includes $8.8 million General Fund, $98.7 million Other Funds, $7.7 million Federal Funds, and $3.6 million Other Funds nonlimited for these programs.
2013-15 Governor's Balanced Budget H-1 Constitutionally Elected Officials

Constitutionally Elected Officials

OFFICE OF STATE TREASURER


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $0 0 31,773,270 0 3,677,332 0 $35,450,602 84 83.10 2011-13 Legislatively Approved $0 0 35,248,684 0 3,500,000 0 $38,748,684 85 83.48 2013-15 Agency Request* $0 0 48,922,875 0 3,584,000 0 $52,506,875 112 111.10

* The Governor makes no recommendation for this budget, as it is not under executive control. Overview
The State Treasurer, a statewide elected constitutional official, is responsible for the sound management of the States financial resources. The Treasury is a multi-billion dollar cash and investment management center. The agency is made up of five program areas within four operating divisions: The Investment Division manages, on behalf of Oregonians, a portfolio with a market value of nearly $75 billion. The division manages the Oregon Public Employees Retirement Fund (OPERF), the State Accident Insurance Fund (SAIF), the Oregon Short Term Fund (OSTF), and numerous smaller funds such as the Common School Fund and the Oregon Growth Account. Within the Finance Division, the Cash Management Program provides cash management and investment operational support services to all Oregon state agencies and hundreds of Oregon local government entities, including cities, counties, schools, and special districts. The division manages over 18.5 million financial transactions annually - including cash deposits, electronic fund transfers, and check issuances - with over $166.5 billion flowing in and out of the division each year. Within the Finance Division, the Public Funds Collateralization Program governs the collateralization of Oregon public funds and provides the statutory requirements for the Public Funds Collateralization Program. Bank depositories are required to pledge collateral against any public funds deposits in excess of deposit insurance amounts. This provides additional protection for public funds in the event of a bank loss. It is responsible for all public funds held by state agencies and deposited to Treasury accounts.

2013-15 Governor's Balanced Budget

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Constitutionally Elected Officials

Constitutionally Elected Officials


The Debt Management Division provides central coordination and issuance approval for all stateissued debt and authority bonds for Oregon. It serves as the states liaison to the major bond rating agencies working to improve Oregons bond rating. Activities include coordinating the timing of various state agency bond sales, securing credit ratings, preparing documents, providing for the delivery of bonds, and assisting with the signing and closing of bond issues. The division also monitors local and national bond markets, as well as financial and economic trends that affect bond issuance structures and interest rates. The Oregon 529 College Savings Network operates to increase the ability of Oregon families and individuals to save for qualified higher education expenses thought flexible investment options that offer state and federal tax benefits.

Balanced Budget
The Governors budget for the Office of State Treasurer includes $51.5 million total funds. This is a 32.9 percent increase over the 2011-2013 Legislatively Approved Budget. The balanced budget continues all programs at their current level and provides for enhancements. The Investment Division adds 21 positions. These new positions address the disparity of staffing levels and other operational resources when comparing Oregons model to other similar sized pension funds. Objectives include: better protection of Oregons investments, and a reduction in overall investment costs paid to third-party service providers. The Cash Management program adds six positions. The new positions seek to improve processes, modernize Banking and Cash Management systems, and enhance the coverage and support of critical services and financial information technology infrastructure. The 529 College savings Network adds resources to increase the Networks annual public education and awareness campaign budget, which will allow the Network to educate more Oregonians about the benefits of the 529 program.

Revenue
The Treasurer of State is financed entirely with Other Funds. Some of the revenue comes from investment administrative fees. Other revenues come from the direct billing of customers for actual costs of banking services, bond and coupon redemption services, and bond issuance activities. Banks pledging collateral for the protection of public fund deposits pay the cost of operating the Public Funds Collateralization Program. Program administrative fee revenues fund the College Savings Network. Nonlimited funds pay for the purchase of goods and services directly related to banking services.

2013-15 Governor's Balanced Budget

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Constitutionally Elected Officials

Constitutionally Elected Officials

SECRETARY OF STATE
2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $13,154,574 0 34,795,709 5,632,259 0 0 $53,582,542 198 197.30 2011-13 Leg Approved Budget $11,906,971 0 42,099,026 7,559,402 0 0 $61,565,399 197 195.69 2013-15 Agency Request* $8,987,057 0 51,716,662 7,740,353 0 0 $68,444,072 206 204.37

*The Governor makes no recommendation for this budget, as it is not under executive control. For statutory purposes, the Governor included $8,846,089 General Fund, $50,770,080 Other Funds and $7,715,111 Federal Funds, for a total amount of $67,331,280 in his budget as a placeholder.

Overview
The Secretary of State is an elected constitutional office. Its duties include: Interpreting, applying and enforcing election laws. Publishing the Voters Pamphlet. Auditing state agencies financial operations and program performance. Publishing the states administrative rules. Storing and preserving public records. Making records accessible to the citizens of Oregon. Providing registration and other services to Oregon businesses.

The office has increased its services to citizens and other customers over recent years, particularly through the use of technology. The requested budget would continue that effort.

Requested Budget
The agency request budget is $68.4 million total funds. This is about 11.1 percent higher than the 2011-13 Legislatively Approved Budget. The requested budget shifts costs for the Archives Division from General Fund to an assessment paid by all state agencies, and expands capacity at the State Records Center. It also adds two positions to act as business ombudsmen assisting small businesses navigate state regulatory requirements. Finally, the requested budget adds technology staff and resources to support expanded citizen demands and improve on-line business services.
2013-15 Governor's Balanced Budget H-4 Constitutionally Elected Officials

Constitutionally Elected Officials


Revenue
The Secretary of State uses General Fund to cover part of its Administrative and Elections Divisions costs. Historically the Archives Division has also received General Fund, but for 2013-15 the Secretary of State is requesting archives funding be shifted to an assessment paid by state agencies. The agency collects Other Funds revenues from document sales and fees for service, such as charges to state agencies for audits. Federal Funds are received to support elections and limited archiving functions.

2013-15 Governor's Balanced Budget

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Constitutionally Elected Officials

Legislative Branch

PROGRAM AREA AGENCIES


LEGISLATIVE COMMISSION ON INDIAN SERVICES ...................................................................................... I-2 LEGISLATIVE ADMINISTRATION COMMITTEE .............................................................................................I-3 LEGISLATIVE ASSEMBLY............................................................................................................................ I-4 LEGISLATIVE COUNSEL COMMITTEE .......................................................................................................... I-5 LEGISLATIVE FISCAL OFFICER ................................................................................................................... I-6 LEGISLATIVE REVENUE OFFICER ............................................................................................................... I-7
2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $70,522,689 $0 $6,975,797 $0 $1,334,927 $0 $78,833,413 675 381.15 2011-13 Legislatively Approved $82,693,021 $0 $5,695,511 $0 $1,470,003 $0 $89,858,535 652 426.96 2013-15 Agency Request $94,747,972 $0 $4,591,531 $0 $1,254,680 $0 $100,594,183 657 434.52

Overview
The legislative branch includes the Legislative Assembly and five supporting agencies that provide administrative services and specialized analysis. Requested Budget The requested budgets for the legislative branch maintains program operations at existing levels, and increases staffing for the Legislative Administration Committee by five positions (7.68 FTE). Governors Adjustment The legislative agencies comprise a separate and independent branch of state government over which the Governor does not have budgetary authority. The law requires the Governor, however, to submit a balanced budget for state government as a whole. For this reason, the Governors budget reflects a General Fund reduction to the legislative branch agencies in order to balance the state budget.

2013-15 Governor's Balanced Budget

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Legislative Branch

Legislative Branch

LEGISLATIVE COMMISSION ON INDIAN SERVICES


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $367,645 $0 $1,841 $0 $0 $0 $369,486 2 2.00 2011-13 Legislatively Approved $414,602 $0 $6,431 $0 $0 $0 $421,033 2 2.00 2013-15 Agency Request* $471,026 $0 $6,586 $0 $0 $0 $477,612 2 2.00

*The Governor makes no recommendation on this budget, since it is part of a separate branch of government. As part of the statutorily required balanced budget, the Governor included $459,293 General Fund and $6,586 Other Funds for total funds of $465,879 as a placeholder.

Overview
The Legislative Commission on Indian Services compiles information on services available to Native Americans, assesses state programs and services, serves as a forum for considering Native American problems, and advises on matters relating to the preservation and protection of Native American Indian historic and archaeological resources. Various statutes require that the Commission be consulted on matters related to the preservation and protection of fish, wildlife, historic, and archaeological resources.

Requested Budget
The agency request budget is $471,026 total funds. This is a 13.4 percent increase from the 2011-13 Legislatively Approved Budget. The General Fund budget of $471,026 constitutes a 13.6 percent increase over the 2011-13 Legislatively Approved Budget. The requested budget allows the Commission to continue existing levels of service.

Revenue
The Commission receives most of its budget from the General Fund. The Commission also collects miscellaneous registration fees from the attendees at Commission-sponsored special meetings. These fees are usually expended on the costs associated with each individual event.

2013-15 Governor's Balanced Budget

I-2

Legislative Branch

Legislative Branch

LEGISLATIVE ADMINISTRATION COMMITTEE


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $24,027,383 $0 $4,764,678 $0 $383,763 $0 $29,175,824 145 99.01 2011-13 Legislatively Approved $28,749,433 $0 $4,108,685 $0 $597,932 $0 $33,456,050 143 100.79 2013-15 Agency Request* $33,532,161 $0 $2,609,177 $0 $597,932 $0 $36,739,270 148 108.47

*The Governor makes no recommendation on this budget, since it is part of a separate branch of government. As part of the statutorily required balanced budget, the Governor included $28,765,826 General Fund, $2,595,316 Other Funds and $597,932 Other Funds Nonlimited for total funds of $31,959,074 in his budget as a placeholder. Reductions to legislative branch agencies to balance the state budget were taken in this budget.

Overview
The Legislative Administration Committee (LAC) appoints an administrator to direct and manage services and support systems for the Legislative Assembly and other legislative branch agencies. Services include staffing substantive committees, providing information systems and technology support, managing building operations and maintenance for the State Capitol; performing accounting, payroll, and personnel functions; and providing information to legislators and the public.

Requested Budget
The agency request budget is $36.7 million total funds. This is an 9.8 percent increase from the 2011-13 Legislatively Approved Budget. The General Fund budget of $33.5 million is 16.6 percent more than the 2011-13 Legislatively Approved Budget. The agency request budget provides funding for continuing operations as well as a policy package to increase staffing for the legislative policy office by five positions (7.68 FTE).

Revenue
The Legislative Administration Committee receives most of its budget from the General Fund. The agency also receives Other Fund revenues for rent of office space, parking fees and other items. Nonlimited Other Funds are from the Capitol Gift Shop and the Property and Surplus Stores account.

2013-15 Governor's Balanced Budget

I-3

Legislative Branch

Legislative Branch

LEGISLATIVE ASSEMBLY
2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $30,840,594 $0 $75,361 $0 $81,935 $0 $30,997,890 443 207.36 2011-13 Legislatively Approved $37,132,538 $0 $268,970 $0 $91,360 $0 $37,492,868 422 251.39 2013-15 Agency Request* $41,256,678 $0 $279,165 $0 $93,553 $0 $41,629,396 422 251.27

*The Governor makes no recommendation on this budget, since it is part of a separate branch of government. As part of the statutorily required balanced budget, the Governor included $40,410,379 General Fund, $277,937 Other Funds and $93,553 Other Funds Nonlimited for total funds of $40,781,869 as a placeholder.

Overview
The primary responsibility of the Legislative Assembly is to produce a balanced budget that receives an affirmative vote by a majority of each chamber and is signed into law by the Governor. The Legislature also considers thousands of policy issues each biennium and, ultimately, enacts laws on behalf of the citizens it represents. The Legislative Assembly budget includes salaries and per diem for legislative members and their staffs, the leadership and caucus offices, the Secretary of the Senate, the Chief Clerk of the House, session staff, and Senate Executive Appointments.

Requested Budget
The agency request budget is $41.6 million total funds. This is a 11.1 percent increase from the 2011-13 Legislatively Approved Budget. The General Fund budget of $41.3 million is a 11.1 percent increase from the 2011-13 Legislatively Approved Budget. The requested budget allows the Assembly to continue at existing program levels.

Revenue
The Legislative Assembly receives most of its budget from General Fund. The Assembly receives Other Fund revenues from charging customers for the duplication of legislative materials and miscellaneous receipts. The Assembly also receives Nonlimited Other Funds from use of the House and Senate lounges by legislative members during session.

2013-15 Governor's Balanced Budget

I-4

Legislative Branch

Legislative Branch

LEGISLATIVE COUNSEL COMMITTEE


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $7,793,217 $0 $2,036,401 $0 $869,229 $0 $10,698,847 57 45.28 2011-13 Legislatively Approved $8,528,744 $0 $1,311,425 $0 $780,711 $0 $10,620,880 57 45.28 2013-15 Agency Request* $10,205,702 $0 $1,696,603 $0 $563,195 $0 $12,465,500 57 45.28

*The Governor makes no recommendation on this budget, since it is part of a separate branch of government. As part of the statutorily required balanced budget, the Governor included $9,865,811 General Fund, $1,658,313 Other Funds and $562,803 Other Funds Nonlimited for total funds of $12,086,927 as a placeholder.

Overview
The Legislative Counsel Committee oversees the Office of the Legislative Counsel, which provides legal and publication services to the Legislative Assembly and other agencies of state government. The agency drafts measures and amendments for legislators, legislative committees, statewide elected officials and state agencies. It provides legal advice to legislators and legislative committees and reviews state agency rules for legal sufficiency. It prepares indices and tables for legislative publications and prepares introduced measures, and any changes that may become necessary. The agency compiles, edits, publishes, sells and distributes Oregon Revised Statutes, official bound session laws, and other print and electronic publications.

Requested Budget
The agency request budget is $12.5 million total funds. This is an 17.4 percent increase over the 2011-13 Legislatively Approved Budget. The General Fund budget of $10.2 million is 19.7 percent more than the 2011-13 Legislatively Approved Budget. The requested budget allows the agency to continue providing services at the existing level.

Revenue
The Legislative Counsel Committee receives most of its budget from the General Fund. The agency also receives Other Fund revenues from the sale of Oregon Revised Statutes, session laws and other specialty legal publications.
2013-15 Governor's Balanced Budget I-5 Legislative Branch

Legislative Branch

LEGISLATIVE FISCAL OFFICER


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $5,516,076 $0 $97,516 $0 $0 $0 $5,613,592 21 20.50 2011-13 Legislatively Approved $5,871,135 $0 $0 $0 $0 $0 $5,871,135 21 20.50 2013-15 Agency Request* $6,880,822 $0 $0 $0 $0 $0 $6,880,822 21 20.50

*The Governor makes no recommendation on this budget, since it is part of a separate branch of government. As part of the statutorily required balanced budget, the Governor included $6,640,263 General Fund as a placeholder.

Overview
The Legislative Fiscal Office (LFO) is a permanent, nonpartisan legislative service agency. It provides research, analysis and evaluation of state expenditures, financial affairs, program administration and agency organization. LFO also provides fiscal impact statements on legislative measures. Committees staffed by LFO include the Joint Committee on Ways and Means (during the legislative session), the Emergency Board and the Interim Joint Committee on Ways and Means (during the interim), the Joint Legislative Audit Committee, and other such financial committees as legislative leadership may appoint.

Requested Budget
The agency request budget is $6.9 million General Fund. Total Funds are increased by 17.2 percent from the 2011-13 Legislatively Approved Budget. The requested budget allows the agency to continue its current level of service.

Revenue
The Legislative Fiscal Office is completely supported by General Fund.

2013-15 Governor's Balanced Budget

I-6

Legislative Branch

Legislative Branch

LEGISLATIVE REVENUE OFFICER


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $1,977,774 $0 $0 $0 $0 $0 $1,977,774 7 7.00 2011-13 Legislatively Approved $1,996,569 $0 $0 $0 $0 $0 $1,996,569 7 7.00 2013-15 Agency Request* $2,401,583 $0 $0 $0 $0 $0 $2,401,583 7 7.00

*The Governor makes no recommendation on this budget, since it is part of a separate branch of government. As part of the statutorily required balanced budget, the Governor included $2,318,123 General Fund in his budget as a placeholder.

Overview
The Legislative Revenue Office provides non-partisan analysis to the Oregon Legislature on tax policy and school finance issues. The agency staffs the House Revenue and Senate Revenue committees. Research for other members and committees is provided upon request.

Requested Budget
The agency request budget is $2.4 million General Fund. This is a 20.3 percent increase over the 2011-13 Legislatively Approved Budget. The requested budget allows the agency to continue providing services at the existing level.

Revenue
The Legislative Revenue Office is completely supported by General Fund.

2013-15 Governor's Balanced Budget

I-7

Legislative Branch

Judicial

PROGRAM AREA AGENCIES


OREGON JUDICIAL DEPARTMENT .............................................................................................................. J-3 COMMISSION ON JUDICIAL FITNESS AND DISABILITY ................................................................................ J-5 PUBLIC DEFENSE SERVICES COMMISSION ................................................................................................. J-6
2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $495,639,245 0 $93,049,330 $1,099,450 0 0 $589,788,025 2,154 1,973.54 2011-13 Leg Approved Budget $589,588,527 0 $59,674,885 $850,613 0 0 $650,114,025 1,955 1,828.56 2013-15 Agency Request $707,241,479 $0 $83,041,211 $892,384 $0 $0 $791,175,074 2,080 1,932.23

Overview
The mission of the Judicial Branch is to: Provide fair and accessible justice services. Protect the rights of individuals. Preserve community welfare. Inspire public confidence. Three independent state entities compose the Judicial Branch program unit. These entities provide policy, program, administrative support and oversight for Oregons judicial system and ancillary services.

Requested Budget
Highlights of the Chief Justices recommended budget for the Judicial Department: Continues a five year funding plan to implement the Oregon eCourt program with staffing needed to maintain the new system, develop new business processes, provide adequate training, and take advantage of new system efficiencies. Proposes a plan to meet the minimum security standards at all circuit courts and to improve court facilities. Supports judge and staff compensation and benefit adjustments and increases resource levels to meet minimum data entry and hours of operation standards. Accounts for the new Court of Appeals Judicial Panel created by the 2012 Legislature. Provides funding for the Supreme Court building preservation efforts.

2013-15 Governors Balanced Budget

J-1

Judicial Branch

Judicial
Continues needed treatment courts and grant funded programs, and reestablishes efficiency generating programs like pro se facilitation and the family law program. Provides for competitive rates paid to mandated interpreter contractors.

The Public Defense Services Commissions requested budget includes a three-biennia strategy of investments toward its goals. Highlights of the PDSC requested budget: Provides one third of the funding required to reduce trial-level juvenile dependency caseloads by 20 percent. Provides one third of the funding required to adopt a salary structure that establishes attorney salary schedules comparable to attorney schedules at the Department of Justice. Provides funding to bring public defender attorney salaries one third of the way closer to deputy district attorney salaries and increase hourly rates for attorneys and investigators to rates that are more competitive to allow the public defense system to recruit and retain a sufficient number of qualified providers. Highlights of the Commission on Judicial Fitness requested budget: Restores funding for investigative and legal costs associated with cases requiring prosecution brought before the commission. Provides funding for staff compensation changes for the 2013-15 biennium. Overall, the requested Judicial Branch budget is 21.7 percent higher than the 2011-13 Legislatively Approved Budget. The General Fund request is 20 percent higher than the 2011-13 Legislatively Approved Budget.

Governors Adjustment:
The Judicial Branch agencies are a separate and independent branch of state government. The Governor does not have budgetary authority over them. The law, however, requires the Governor to submit a balanced budget for the state. For this reason, the Governors budget reduces the Judicial Branchs requested budget to $632,989,868 General Fund, $716,368,266 Total Funds. This funding level represents a 7.4 percent increase in General Fund over the 2011-13 Legislatively Approved Budget and a 10.2 percent increase in total funds. The Governors budget is a 9.4 percent decrease for the Judicial Branch total funds, compared to the requested agency budgets.

2013-15 Governors Balanced Budget

J-2

Judicial Branch

Judicial

OREGON JUDICIAL DEPARTMENT


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $284,107,992 0 80,904,659 1,099,450 0 0 $366,112,101 2,084 1,904.08 2011-13 Legislatively Approved $366,868,202 0 55,844,830 850,613 0 0 $423,563,645 1,878 1,752.66 2013-15 Agency Request* 446,502,479 0 79,820,276 892,384 0 0 $527,215,139 2,003 1,855.94

*The Governor makes no recommendation for this budget, as it is a separate branch of government. For statutory purposes, the Governor included $388,828,593 General Fund, $79,287,816 Other Funds and $883,540 Federal Funds for total funds of $468,999,949 in his budget as a placeholder.

Overview
The Judicial Departments budget contains the resources necessary to operate a state-wide court system in the Judicial Branch of Oregon state government. Effective January 1983, the Legislature created a unified, state-funded court system with general jurisdiction trial courts (circuit courts) located in all 36 counties of the state. (Municipal courts and some justice courts, both with limited jurisdiction, still remain outside the state-funded system and are controlled at the municipal or county levels.) The Chief Justice of the Supreme Court is the administrative head of the department with authority over the unified state court system operations, programs and functions. The Chief Justice appoints the State Court Administrator, who is responsible for assisting in administration and coordination. At the local judicial district level, the Chief Justice appoints presiding judges, who in turn appoint trial court administrators to assist in administering the daily operations of the individual courts. The Judicial Department includes: Operations of the Oregon Supreme Court, Court of Appeals, the Tax Court and Office of the State Court Administrator. Operations of the 36 circuit courts located in 27 judicial districts statewide. These are general jurisdiction trial courts located in every county that rule on a wide range of criminal, civil, juvenile, domestic relations cases and other matters. Administration of mandated payments for the cost of jurors, transcript costs for certain indigents in civil appeals, Americans with Disabilities Act compliance, and interpreters for non-English-speaking and hearing-impaired persons in the courts.
J-3 Judicial Branch

2013-15 Governors Balanced Budget

Judicial

Administration of centralized management and support functions, such as statewide systems for technological case management and information, budget and finance, legal counsel services, education and training, internal auditing, inter-branch and interagency relations, court operations program review, personnel rules and services, and a statutory citizen review board program that reviews permanency plans for children in out-of-home placements and makes recommendations to the circuit court judges on the feasibility and progress of these plans.

Requested Budget
The Chief Justices current service level budget is $409.3 million General Fund, $22.9 million Other Funds and $0.9 million Federal Funds. The 2013-15 requested budget adds $35.4 million General Fund and $56.9 million Other Funds in policy packages. The Chief Justices agency request budget is $446.5 million General Fund, $527.2 million total funds. This budget supports all programs and all policy packages submitted for legislative consideration. The requested General Fund budget is 24.4 percent more than the 2011-13 Legislatively Approved Budget. The agency request budget proposes continuing a five-year funding plan to modernize the technology and business processes of the trial courts. The project is known as eCourt. The request also supports a long range plan to improve court facilities and reach minimum security standards in all circuit courts. The budget includes judges and staff compensation and benefit adjustments, as well as funding to continue drug, mental health and domestic violence courts. The budget adds a Court of Appeals Judicial Panel and related staff that was created by the 2012 Legislature. It also requests funding for a staff support in the State Court Administrators office and in the Circuit Courts, and preservation efforts in the Supreme Court building.

Revenue
The Judicial Departments requested budget is 84.7 percent General Fund. Most of the operating costs are for personnel located statewide as required by statute. The department generates revenue for the General Fund from filing fees, trial and hearing fees, collections fees, and copy sales. Other Fund revenues also are generated for the Judicial Department and other entities from fines, assessments, sales of publications, access to the Oregon Judicial Information Network, drug court grants and grants from other state agencies to leverage federal funding sources. The Federal Fund revenues are from the Department of Health and Human Services for the Juvenile Court Improvement project.

2013-15 Governors Balanced Budget

J-4

Judicial Branch

Judicial

COMMISSION ON JUDICIAL FITNESS AND DISABILITY


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $156,451 0 0 0 0 0 $156,451 1 0.50 2011-13 Leg Approved Budget $178,470 0 0 0 0 0 $178,470 1 0.50 2013-15 Agency Request* $234,873 0 0 0 0 0 $234,873 1 0.50

*The Governor makes no recommendation for this budget, as it is a separate branch of government. For statutory purposes, the Governor included $199,670 General Fund in his budget as a placeholder.

Overview
The Commission on Judicial Fitness and Disability investigates complaints filed against Oregon judges. The Commission may recommend the Oregon Supreme Court discipline a judge for misconduct and may censure, suspend, or remove a judge from the bench. The Commission is not under Executive Branch control.

Requested Budget
The requested budget for the Commission is $234,873 General Fund. This is 31.6 percent higher than the 2011-13 Legislatively Approved Budget. The increase is mostly attributable to state government centralized support costs and funding for expenses associated with investigation and prosecution of cases.

Revenue
The Commissions entire budget is funded with General Fund.

2013-15 Governors Balanced Budget

J-5

Judicial Branch

Judicial

PUBLIC DEFENSE SERVICES COMMISSION


2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $211,374,802 0 $12,144,671 0 0 0 $223,519,473 69 68.96 2011-13 Legislatively Approved $222,541,855 0 $3,830,055 0 0 0 $226,371,910 76 75.40 2013-15 Agency Request* $260,504,127 0 $3,220,935 0 0 0 $263,725,062 76 75.79

*The Governor makes no recommendation for this budget, as it is a separate branch of government. For statutory purposes, the Governor included $243,961,605 General Fund and $3,207,042 Other Funds for a total amount of $247,168,647 in his budget as a placeholder.

Overview
The Public Defense Services Commission consists of three divisions: the Appellate Division, which provides direct legal services for representation on criminal appeals; the Professional Services Account, which contains funding used to pay the expenses for trial-level representation and appellate cases not handled by the Appellate Division; and the Contract and Business Services Division, which administers the Public Defense Services Account, negotiates contracts and pays bills for trial-level representation and appellate cases not handled by the Appellate Division. The commission is not under Executive Branch control.

Requested Budget
The requested budget for the Commission is $263.7 million total funds. The budget includes funds for increased compensation for attorneys within the Commission to become comparable to their counterparts within the Department of Justice and rate increases for public defender (not-for-profit) attorneys. In addition, the requested budget provides funding for juvenile dependency caseload reduction. Finally, the budget covers increases in mandated caseload and shifts funding from one-time Other Funds (court fees and fines) to General Fund. In total funds, the requested budget is a 16.5 percent over the 2011-13 Legislatively Approved Budget; the General Fund represents a 17.1 percent increase.

Revenue
The Commission is funded primarily with General Fund. Other Funds come from the Application and Contribution program, which is composed of application fees and contributions for services from people who can afford to pay for a portion of their defense services.
2013-15 Governors Balanced Budget J-6 Judicial Branch

Miscellaneous

EMERGENCY BOARD
2009-11 Actuals General Fund Lottery Funds Other Funds Federal Funds Other Funds (Nonlimited) Federal Funds (Nonlimited) Total Funds Positions Full-time Equivalent $0 $0 $0 $0 $0 $0 $0 0 0.00 2011-13 Legislatively Approved $109,364,149 $0 $0 $0 $0 $0 $109,364,149 0 0.00 2013-15 Governor's Balanced $130,762,767 $0 $0 $0 $0 $0 $130,762,767 0 0.00

Overview
The Emergency Board acts to meet emergency needs when the Legislature is not in session. It can allocate money from the Emergency Fund to state agencies. It can also take other action on agency budget requests. The Governors balanced budget provides a total of $130.8 million for the Emergency Fund. The components of this are described below.

General Purpose
The Governors balanced budget proposes $20 million for the General Purpose Emergency Fund. The Emergency Board can use this for any purpose during the biennium. Items that would be appropriate for consideration for this fund include situations in which the state must deal with unforeseen but critical needs, or when additional investment is critical to an agency or service.

Special Purpose Appropriations


The Governors budget sets aside $81.5 million in the Emergency Fund for state employee compensation. The funds will help cover cost increases for health and benefit plans and wages for all state employees. An additional $12.9 million is in the Emergency Fund for non-state employee salary adjustments that includes home health workers including personal support workers, homecare workers and adult foster care providers. These are people providing services directly to children, seniors, people with disabilities, and people with mental health issues. Special Purpose Appropriations are included to cover the second fiscal year operations for the State Library and the Oregon Housing and Community Services (OHCS) agency. The OHCS is at a critical juncture, facing fiscal challenges that need to be addressed. OHCS will work to develop a plan and prepare a request to be presented to the Legislature in February 2014. The report will make recommendations about which programs can continue to be delivered and the delivery structure of those
2013-15 Governors Balanced Budget K-1 Miscellenous

Miscellaneous
programs. The Special Purpose Appropriation of $9.7 million is established to fund the second year of OHCS operations pending the report to the Legislature. Only one year of budget authority is included in the Oregon State Library budget. General Fund for the second year of operations is a Special Purpose Appropriation of $1.7 million. Allocation of these funds, as well as necessary Other Funds and Federal Funds expenditure limitation, is contingent upon the State Library accomplishing or showing significant progress toward eliminating Government Research Services; consolidating document repositories and reference services with the State Archives; and, implementing improvements identified by the 2011 Workgroup on Libraries & Archives in Oregon State Government. Finally, there is $5 million in the Emergency Fund for fire protection severity suppression resources in the Department of Forestry. The appropriation reimburses costs for the states share of the purchase of catastrophic fire insurance and reimbursement for the agencys costs for seasonal aviation and groundbased emergency initial attack resources.

2013-15 Governors Balanced Budget

K-2

Miscellenous

Capital Budgeting

CAPITAL CONSTRUCTION
Capital Construction projects are presented in appropriation bills separate from agencies budget bills for ongoing operations. Major Construction projects are distinguished from Capital Improvements based on a cost in excess of $1 million, and must receive approval by the Legislature before spending begins. Capital Improvements less than $1 million do not require specific legislative approval and are included in an agencys operating budget. The following tables show the major projects proposed by the Governor for the 2013-15 biennium. They also show identified major project costs for the four years in the subsequent two biennia as submitted by each agency. T his data on projected future project cost is referred to as the "six-year plan" and is a required component of the Governors recommended budget under Oregon law (ORS 291.224). The recommended major construction projects are included in one appropriation bill. S ubsequent to enactment of Senate Bill 242 (2011), individual Oregon University System (OUS) capital construction projects no l onger require separate approval by the Governor and Legislative Assembly. Expenditure limitations will no longer be established for OUS capital construction projects; however, a portion of funding authorized for OUS will support capital projects. The Governor anticipates a commitment of approximately $275 million in General Fund supported financing for new OUS and community college projects in the 2013-15 biennium. Executive Order No. 12-17, signed on November 13, 2012 s ets forth the Governors expectation to finance approximately $275 million per biennium going forward for OUS and community college projects (including information technology systems). This commitment however is not reflected in the tables that accompany this section of the Governors Budget. Projects may be funded with proceeds from bonds that are repaid over time or on a pay-as-you-go (i.e. without borrowing) basis. Sources for bond repayment and pay-as-you-go include General Fund, Other Funds, Lottery Funds and Federal Funds. Income taxes are the primary source of General Fund resources. Other Funds are moneys dedicated by Oregon Law or Constitution. Other Fund revenues are derived from a variety of sources including taxes on fuels, rents, fees for services, grants, and donations. Lottery Funds are net revenues derived from operations of the Oregon Lottery. Federal Funds are moneys from the U.S. Government to pay for specific projects such as armories and airport improvements. I mportant investments in this budget will: Improve Oregon University System and local community college facilities; Provide construction funds for new State Hospital facilities in Junction City; and Make improvements to state office buildings, including establishment of a new statewide infrastructure fund that will be available to address long outstanding deferred maintenance needs and promote best practices in facilities management. Although construction projects for roads and bridges do not require approval in the capital construction bill, bonding authority for the proposed I-5 bridge over the Columbia River between Portland and Vancouver is authorized in the Governor's budget.
2013-15 Governor's Balanced Budget L-1 Capital Budgeting

MAJOR CONSTRUCTION/ACQUISITION 2013-15 PROGRAM FUNDING REQUEST SUMMARY


Program Area Education (See Note 1) Human Services Public Safety Economic and Community Development Natural Resources Transportation Administration 11,734,000 40,001 16,821,286 400,000 $ General Fund Other Funds 79,401,530 17,941,462 Federal Funds 262,205 $ Total Funds 79,401,530 18,203,667 11,734,000 440,001 16,821,286

Judicial Total $

26,812,211 152,750,490 $

662,205 $

26,812,211 153,412,695

Note 1: Senate Bill 242 (2011) eliminated the requirement for Oregon University System (OUS) capital construction projects to be authorized through project specific expenditure limitations. Funding for certain OUS projects has been authorized in the Bond Bill for funding under Art. XI-F (1), Art. XI-G and Art. XI-Q programs. Furthermore, the Governor has held back an additional $244 million in General Fund supported capacity for priority capital construction projects at OUS and local community colleges.

2013-15 Governor's Balanced Budget

L-2

Capital Budgeting

2013-2015 RECOMMENDED MAJOR CONSTRUCTION/ACQUISITION PROJECTS


Program Area/Agency EDUCATION PROGRAM General Fund Other Funds Federal Funds Total Funds

See Note 1
TOTAL EDUCATION PROGRAM HUMAN SERVICES PROGRAM Oregon Health Authority State Hospital Replacement - Junction City Campus Total Oregon Health Authority TOTAL HUMAN SERVICES PROGRAM PUBLIC SAFETY PROGRAM Military Department Scharff Hall Armory Grants Pass Armory Roseburg Armory Christmas Valley Land Acquisition Planning and pre-design Total Military Department Oregon Youth Authority Electronic Security Projects Deferred Maintenance Total Oregon Youth Authority Department of Corrections Deferred Maintenance Total Department of Corrections TOTAL PUBLIC SAFETY PROGRAM NATURAL RESOURCES PROGRAM Department of Fish & Wildlife Clackamas Hatchery Intake System Crump Lake Wetland Acquisition Total Department of Fish & Wildlife State Forestry Department East Lane County Headquarters Gilchrist Forest Acquisition Total State Forestry Department TOTAL NATURAL RESOURCES PROGRAM $ $ $ $ -

$ $ $

$ $ $

79,401,530 $ 79,401,530 $ 79,401,530 $

$ $ $

79,401,530 79,401,530 79,401,530

2,781,000 2,391,660 2,230,416 220,000 282,445 7,905,521 $

262,205 262,205 $

2,781,000 2,391,660 2,230,416 220,000 544,650 8,167,726

2,116,810 2,958,131 5,074,941 $

2,116,810 2,958,131 5,074,941

$ $

$ $

4,961,000 4,961,000 $ 17,941,462 $

4,961,000 4,961,000 18,203,667

262,205 $

634,000 1,000,000 1,634,000 $

634,000 1,000,000 1,634,000

$ $

$ $

2,500,000 7,600,000 10,100,000 $ 11,734,000 $

$ $

2,500,000 7,600,000 10,100,000 11,734,000

2013-15 Governor's Balanced Budget

L-3

Capital Budgeting

2013-2015 RECOMMENDED MAJOR CONSTRUCTION/ACQUISITION PROJECTS (continued)


Program Area/Agency
TRANSPORTATION PROGRAM Department of Transportation Region 1 Facilities Consolidation Project Total Department of Transportation Oregon Department of Aviation Cottage Grove Airport Runway Rehabilitation Total Oregon Department of Aviation TOTAL TRANSPORTATION PROGRAM ADMINISTRATION PROGRAM Department of Administrative Services HVAC Improvement Projects Roof Replacements Public Utility Commission Bldg. - Exterior Replacement Elevator Upgrades Carpet Replacements Planning Executive Bldg. Renovation Total Department of Administrative Services TOTAL ADMINISTRATION PROGRAM JUDICIAL PROGRAM Judicial Department Supreme Court Bldg. Renovation/Seismic Retrofit Total Judicial Department TOTAL JUDICIAL PROGRAM GRAND TOTAL 2013-15 BIENNIUM $

General Fund

Other Funds

Federal Funds

Total Funds

1 1 $

1 1

40,000 40,000 40,001 $

400,000 400,000 400,000 $

440,000 440,000 440,001

$ $

$ $

4,921,160 $ 1,303,942 4,740,390 961,420 3,744,374 350,000 800,000 16,821,286 $ 16,821,286 $

$ $

4,921,160 1,303,942 4,740,390 961,420 3,744,374 350,000 800,000 16,821,286 16,821,286

$ $ $

$ $ $

26,812,211 26,812,211 $ 26,812,211 $ 152,750,490 $

$ $

26,812,211 26,812,211 26,812,211 153,412,695

662,205 $

Note 1: Senate Bill 242 (2011) eliminated the requirement for Oregon University System (OUS) capital construction projects to be authorized through project specific expenditure limitations. Funding for certain OUS projects has been authorized in the Bond Bill for funding under Art. XI-F (1), Art. XI-G and Art. XI-Q programs. Furthermore, the Governor has held back an additional $244 million in General Fund supported capacity for priority capital construction projects at OUS and local community colleges.

2013-15 Governor's Balanced Budget

L-4

Capital Budgeting

2015-2017 MAJOR CONSTRUCTION/ACQUISITION REQUIREMENTS *


Program Area/Agency EDUCATION PROGRAM General Fund Other Funds Federal Funds Total Funds

See Note 1
TOTAL EDUCATION PROGRAM PUBLIC SAFETY PROGRAM Department of Corrections Junction City Prison - Site Development & Construction Deferred Maintenance Total Department of Corrections Military Department Owen Summers Building Addition Klamath Falls Armed Forces Reserve Center Washington County Readiness Center McMinnville Armory Serv Life Extension Salem Armory Serv Life Extension Warrenton Armory Serv Life Extension Jackson Armory Serv Life Extension Planning and pre-design Total Military Department Oregon Youth Authority Electronic and physical security improvements Total Oregon Youth Authority TOTAL PUBLIC SAFETY PROGRAM NATURAL RESOURCES PROGRAM Department of Fish & Wildlife Deferred Maintenance Total Department of Fish & Wildlife State Forestry Department State Forester Office Building Total State Forestry Department TOTAL NATURAL RESOURCES PROGRAM TRANSPORTATION PROGRAM Department of Transportation East Portland - phase 2 Meacham Maint Station Total Department of Transportation TOTAL TRANSPORTATION PROGRAM ADMINISTRATION PROGRAM Department of Administrative Services Statewide Infrastructure Fund Executive Bldg. Renovation Heating, Ventilation, Air Conditioning Sys Upgrades Carpet Replacements Lighting Upgrades Total Department of Administrative Services TOTAL ADMINISTRATION PROGRAM GRAND TOTAL 2015-2017 BIENNIUM $ $ $ $ -

$ $ $

$ $ $

89,193,861 21,488,180 110,682,041 $

$ $ $

89,193,861 21,488,180 110,682,041

6,674,619 2,061,322 6,074,992 2,507,350 2,616,365 1,471,705 3,597,502 245,094 25,248,949 $

19,941,790 $ 13,908,110 18,328,895

477,445 52,656,240 $

26,616,409 15,969,432 24,403,887 2,507,350 2,616,365 1,471,705 3,597,502 722,539 77,905,189

$ $ $

$ $ $

5,750,214 $ 5,750,214 $ 141,681,204 $

$ $

5,750,214 5,750,214 194,337,444

52,656,240 $

$ $

$ $

1,500,000 $ 1,500,000 $

$ $

1,500,000 1,500,000

$ $

$ $

2,750,000 2,750,000 $ 4,250,000 $

$ $

2,750,000 2,750,000 4,250,000

$ $ $

$ $ $

5,500,000 $ 6,500,000 12,000,000 $ 12,000,000 $

$ $ $

5,500,000 6,500,000 12,000,000 12,000,000

` $ $ $

$ $ $

65,000,000 $ 19,000,000 5,167,218 3,931,593 1,009,491 94,108,302 $ 94,108,302 $ 252,039,506 $

$ $

65,000,000 19,000,000 5,167,218 3,931,593 1,009,491 94,108,302 94,108,302 304,695,746

52,656,240 $

* Funding in the Governor's Budget includes only those items identified in capital construction bills. This table presents estimated biennial construction costs for projects that would be considered for recommendation in 2015-17; they are not yet recommended in captial construction bills. Note 1: In the ten-year capital plan described in EO No. 12-17, The Governor has described his intention to authorize $275 million per biennium for General Fund-supported and Lottery Bond financing to support education related capital investments.

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2017-2019 MAJOR CONSTRUCTION/ACQUISITION REQUIREMENTS *


Program Area/Agency EDUCATION PROGRAM General Fund Other Funds Federal Funds Total Funds

See Note 1
TOTAL EDUCATION PROGRAM PUBLIC SAFETY PROGRAM Department of Corrections Deferred Maintenance Projects Public Safety Building Total Department of Corrections Military Department Boardman Multipurpose Machinegun Range Washington County FMS Linn County Readiness Center USPFO Warehouse Activity Josephine County FMS Ashland Armory Serv Life Extension Kliever Armory Serv Life Extension Medford Armory Serv Life Extension Planning Salem AASF Hanger Planning Portland Readiness Center Planning Boardman Digital Multipurpose Training Range Planning Pendleton Service Life Armory Extension Planning Corvallis Service Life Armory Extension Total Military Department Oregon Youth Authority Electronic and physical security improvements Total Oregon Youth Authority TOTAL PUBLIC SAFETY PROGRAM NATURAL RESOURCES PROGRAM Department of Fish & Wildlife Deferred Maintenance Total Department of Fish & Wildlife TOTAL NATURAL RESOURCES PROGRAM TRANSPORTATION PROGRAM Department of Transportation Silver Lake Maint Station Estacada Maint Station Total Department of Transportation TOTAL TRANSPORTATION PROGRAM ADMINISTRATION PROGRAM Department of Administrative Services Statewide Infrastructure Fund Heating, Ventilation, Air Conditioning Sys Upgrades Carpet Replacemwnts Lighting Upgrades Total Department of Administrative Services TOTAL ADMINISTRATION PROGRAM $ $ $ $ -

$ $ $

$ $ $

21,488,179 $ 118,641,904 $ 140,130,083 $

$ 1 $ 1 $

21,488,179 118,641,905 140,130,084

745,826 1,061,386 5,122,061 1,650,188 922,723 2,289,319 3,924,547 3,270,456 21,978 45,380 6,066 35,597 40,603 19,136,130 $

13,936,230 $ 14,402,625 15,743,885 23,429,000 13,608,000

2,905,300 1,350,000 895,800

86,270,840 $

14,682,056 15,464,011 20,865,946 25,079,188 14,530,723 2,289,319 3,924,547 3,270,456 2,927,278 1,395,380 901,866 35,597 40,603 105,406,970

$ $ $

$ $ $

2,612,454 $ 2,612,454 $ 161,878,667 $

$ $

2,612,454 2,612,454 248,149,508

86,270,841 $

$ $ $

$ $ $

1,500,000 $ 1,500,000 $ 1,500,000 $

$ $ $

1,500,000 1,500,000 1,500,000

$ $ $

$ $ $

6,500,000 $ 7,500,000 14,000,000 $ 14,000,000 $

$ $ $

6,500,000 7,500,000 14,000,000 14,000,000

$ ` $ $ $

$ $ $

65,000,000 $ 5,167,218 3,931,593 1,009,491 75,108,302 $ 75,108,302 $ 252,486,969 $

$ $

65,000,000 5,167,218 3,931,593 1,009,491 75,108,302 75,108,302 338,757,810

GRAND TOTAL 2017-2019 BIENNIUM

86,270,841 $

* Funding in the Governor's Balanced Budget includes only those items identified in capital construction bills. This table presents estimated biennial construction costs for projects that would be considered for recommendation in 2017-19; they are not yet recommended in capital construction bills. Note 1: In the ten-year capital plan described in EO No. 12-17, The Governor has described his intention to authorize $275 million per biennium for General Fund-supported and Lottery Bond financing to support education related capital investments.

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BONDED DEBT PROFILE Debt Structure and Authorization
The states general obligation bond a uthority is based on t he True Cash Value (TCV) of all taxable property in Oregon. Most constitutionally authorized GO bond programs have an issuance ceiling based on a percentage of TCV, ranging from 0.2 percent to 8.0 percent. The most recent (January 1, 2012) certified statewide TCV is $458.4 billion. The total outstanding general obligation debt at June 30, 2012 was approximately $5 billion. Total outstanding bonded indebtedness of the state, including both general obligation and direct revenue bonds, but excluding Certificates of Participation was $9.8 billion. Of the outstanding general obligation debt, 66 percent is structured to be fully self-supporting from various program revenues; that is, no s tate General Fund revenues are planned to pay debt service. Generally, these self-supporting bonds are considered double-barreled, because they are also general obligation bonds, which carry a pledge of the states full faith and credit. Approximately 19 percent of the states outstanding general obligation debt matures in five years, and 36 percent matures in 10 years. The remaining debt matures over the following 36 years. This maturity structure is affected most significantly by required principal payments for pension obligation bonds in 2017 2027. Certificates of Participation (COPs) are not debt and therefore cannot include a pledge of the general obligation of the state. However, COPs rely on legislative appropriations from the state General Fund as the primary source of payment and therefore are considered an appropriation credit. Total appropriation credits outstanding as of June 30, 2012, were approximately $1.53 billion.

Recent Developments
A lack of stability in global markets contributed greatly to keeping interest rates at historic lows through 2012. Rates on U .S. Treasuries are at 40-year lows as the Federal Reserve has continued to hold the federal funds rate low and is expected to continue doing so through early 2015. Most financial analysts do not expect rates to rise significantly in the near future, although long term rates are trending up from late July 2012 l ows. State agencies have taken advantage of this low rate environment to refinance existing debt at lower rates where permissible achieving millions of dollars in debt service savings. Executive Order NO. 12-17 On November 13, 2012, G overnor Kitzhaber signed Executive Order NO.12-17 in which he outlined a framework for allocating debt capacity for identified needs in specific categories over a t en-year period and in which he describes a structure for evaluating future proposals for bond financing. The final payment on t he 2003 A ppropriation Bonds issued to finance the 2001-03 budget deficit will occur in September 2013. A s a result, the States capacity to issue General Fund supported debt is expected to increase significantly from recent biennia. The Governors budget recognizes that this resource should be used in a prudent and sustainable manner. A ten-year plan that allocates a portion of
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this capacity to future biennia will slow growth in debt service requirements while allowing the State to create a structure that evaluates future proposals based on criteria such as return on investment, and ability to leverage private sector, federal and regional resources. Lottery Bond debt capacity will be reduced from historic levels due to the need to make significant capital outlays to replace aging gaming terminals, as well as a slowing in the growth rate of revenues. The Department of Transportation is seeking Article XI, Section 7 general obligation bond authority for the first time in recent memory to support the I-5 Columbia River bridge project.

Biennium Issuance
The State is expected to sell approximately $587.9 million of bonds and COPs in the 2011-13 biennium, excluding Pass-Through Revenue Bonds. This is a decrease of $1.2 billion from 2009-11. The change is the result of several factors. Declining revenues during the recent recession reduced General Fund supported debt capacity to near zero. Therefore, the 2011-13 budget included only the most critical projects, such as completion of the new State Hospital in Salem, the construction of which was already in process. Article XI-G projects for OUS and community colleges were greatly reduced from recent historical levels. The recession also impacted revenue bond pr ograms tied to economic activity. In addition, based on revised cash flow projections, the Department of Transportation (ODOT) is expected to delay a multi-million dollar sale, initially planned for 2011-13, until early in the 2013-15 biennium. For 2013-15 state financing of capital and major information technology projects is expected to return to levels consistent with recent historic averages. Additionally, new initiatives, such as financing the I-5 Bridge over the Columbia River between Portland and Vancouver will further increase debt issuance. The program with the highest projected issuance in 2011-13 is the Oregon Department of Transportation (ODOT) Highway User Tax revenue bonds. The Legislative Assembly approved House Bill 2001 (2009), the Oregon Jobs and Transportation Act (JTA) which increased issuance authority for Highway User Tax bonds by $840 million. It is anticipated that ODOT will issue all bonds authorized under JTA in 2013-15. ODOT is also expected to issue $453.3 million in Article XI, Section 7 general obligation bonds to fund a portion of the cost to construct the proposed I-5 bridge over the Columbia River. The Article XI-Q program is also projected to be used significantly in 2013-15 to finance state-owned assets, including the Junction City campus of the State Hospital, state and university system building needs, a statewide infrastructure fund and several major information technology projects. The Governors budget includes authority for $332.3 million in Article XI-Q bonds. Certificates of Participation (COPs) totaling $63.8 million are proposed for multi-modal transportation grants, and for an initial deposit to the Innovation Fund proposed to provide critical capital for projects promoting economic development statewide. Certain proposed COP uses in the proposed budget will require statutory changes. Lottery Bond issuance will be limited in 2013-15 due to capital needs for replacement of gaming terminal as well as program revenue declines from earlier projected levels. The Governors budget includes $155.4 million in Lottery Bonds to fund a variety of projects including: multi-modal transportation, the Gilchrist State Forest acquisition, grants for major water infrastructure projects, critical forest and timber initiatives,
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home energy efficiency programs and other significant infrastructure investments based on identified regional priorities. The Governors budget includes $30 m illion in general obligation bond a uthority to fund seismic rehabilitation grants for public education and emergency services buildings. The Governor intends to make available $275 m illion in General Fund supported bond c apacity for educational related activities including OUS and community colleges. The Governors budget has, in effect, set aside available bond capacity for these purposes. With the exception of funding for a K-20 Longitudinal data base, Seismic Rehabilitation Bonds for public education buildings and Student Achievement Centers, the Bond Bill includes only amounts for self-supporting projects and projects approved in previous biennia but not yet issued. Issuance authority in the proposed Bond Bill leaves sufficient General Fund debt capacity available so that it can be directed to projects that best accomplish the Governors priority objectives. Bonds that are not expected to be tax-supported are authorized for a variety of purposes including loans to local governments for infrastructure improvements, mortgage bonds for affordable housing, and projects promoting energy efficiency. All proposed Article XI-H Pollution Control bonds for 2013-15 are expected to be self-supporting, as are proposed XI-I (1) bonds for Water Resources. Article XI-J bonds for Alternate Energy projects will be self-supporting or included in the Governors education allocation. Oregons gross long-term debt has increased to $11.34 billion as of June 30, 2012, excluding conduit bonds. Compared to $11.1 billion outstanding two years earlier, this represents an increase of approximately 2.1 percent.

Credit Rating Considerations


Most of Oregons general obligation debt is paid from non-tax sources, that is, the debt is self-supporting. Because this debt has general obligation backing, some analysts may treat a portion of it a s a General Fund liability, despite its self-supporting character and history. The State of Oregons standing as a well-managed issuer of debt was affirmed throughout the period.
Credit Ratings * Standard & Poors General Obligation Bonds AA+ Highway Revenue Bonds Senior Lien AAA Highway Revenue Bonds Subordinate Lien AA+ Lottery Bonds AAA Certificates of Participation AA Housing and Community Services: --Mortgage Revenue Bonds --Housing Revenue Bonds --Multi-Family Housing Revenue Bonds -Business Development Dept Infrastructure Bonds AA+ L-9 Moodys Aa1 Aa1 Aa2 Aa2 Aa2 -Aa2 Aa3 Aaa Aa3 Fitch AA+ AA+ AA AAAA -----Capital Budgeting

*based on most recent published ratings and subject to change.

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Several factors are cited by the ratings agencies in maintaining Oregons strong credit position. These include sound financial controls underscored by strong executive ability to reduce spending, maintenance of budget reserves, and favorable funding ratios in the states pension system. Credit challenges include heavy reliance on volatile income tax, the kicker law which restricts the States ability to manage income volatility, high debt ratios and uncertainty created by the initiative process.

Interest Rates
As previously noted, the consensus forecast among economists is for interest rates generally to remain at relatively low levels over the next several months. During the period July 1, 2011 through June 30, 2012, the 20-year Oregon Bond Index for Aa-rated issues started low at 4.14 percent and trended lower ending the fiscal year at 3.2 percent. The index has fallen to 2.87 percent in late August 2012. Typically, Oregon issuers pay lower interest costs when issuing taxexempt municipal bonds in comparison to their national counterparts, due to their exemption from both federal and state income taxes, and Oregon being a relatively high income tax state. During fiscal year 2012, Oregon generally enjoyed the right measure of supply and demand, for efficient and cost-effective new financings. Because the supply of bonds in the market generally has an impact on the prices paid, an oversupply results in additional compensation for investors through higher returns. Likewise, when demand for tax-exempt issues weakens, yields also rise, narrowing the spread between municipals and comparable maturities of taxable securities.

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CONSTITUTIONAL AND STATUTORY BORROWING AUTHORIZATIONS
The State of Oregons borrowing programs consist of many different and separate authorizations, including both constitutional and statutory provisions. C onstitutional authorizations permit issuance of general obligation bonds that are backed by the full faith and credit of the state. Statutory authorizations provide for the sale of revenue bonds and conduit revenue bonds backed only by the moneys derived from operation of the particular enterprise for which the obligations were issued. A ppropriation credits, authorized in ORS 283 and Senate Bill 856 (2003 Legislature), include both certificates of participation and appropriation bonds. Both of these debt finance types are special limited obligations of the State payable solely from funds appropriated or otherwise made available by the Legislative Assembly. Certificates of participation or financing agreements are instruments under which the State is able to finance real property or equipment purchases using the property or equipment finances as security and a promise to request a legislative biennial appropriation for the repayment of the certificates or agreements. In addition to these Constitutional and Statutory limits, the Legislative Assembly biennially approves, through the budgetary process, the volume of bonds and finance agreements that may be issued under each authorization during the next biennium. A general summary of each active authorization follows.

Active General Obligation Authorizations -- General Fund Supported


Oregon University System Article XI-G: The Oregon Constitution grants the state Board of Higher Education authority to issue general obligation bonds under two separate Articles: XI-G and XI-F. Article XI-G is the governing authority for borrowing for both higher education institutions and activities, and community colleges. Bonds issued for these purposes are secured by appropriations from the States General Fund and, in addition, by an unlimited ad valorem tax levied on all taxable property in the State. While this authorization is shared between Higher Education and Community Colleges, the Higher Education portion of XI-G debt ($403.1 million) greatly exceeds the Community Colleges portion of XI-G debt ($118.5 million) as of June 30, 2012 . The combined total of XI-G bonded debt outstanding at June 30, 2012 is $521.6 million. Article XI-F(1) debt is discussed in the Self-Supporting section. Oregon Opportunity Bonds (OHSU) Article XI-L: Authorizes bonds to finance capital costs of the Oregon Health and Science University (OHSU) in an aggregate principal amount that produces net proceeds for the University in an amount not to exceed $200 million. Section 1 of the Article authorizes debt not to exceed one-half of one percent of the real market value of all property in the State. The State is not permitted to levy ad valorem (property) taxes to pay the bonds. The legislation authorizing the program contemplates that the bonds may be paid from tobacco settlement revenues, but those revenues are not pledged to pay the bonds. Principal outstanding is $138.8 million as of June 30, 2012. Pension Obligation Bonds Article XI-O: House Bill 3659 (2003) is the implementing legislation for Oregons Pension Obligation Bond program. Article XI-O, which amended the Oregon Constitution, was adopted by the Legislative Assembly as House Joint Resolution 18 on July 17, 2003 and approved by the voters of the State at a special election held on September 16, 2003.
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Article XI-O permits the state to lend its credit and to incur indebtedness to finance its pension liabilities and to pay the costs of incurring such indebtedness. Article XI-O provides that all indebtedness incurred pursuant to Article XI-O is a general obligation of the State; and must contain a direct promise on behalf of the State to pay the principal, premium, if any, and interest on that debt. Article XI-O also requires the State to pledge its full faith and credit and taxing power to pay such indebtedness, but it does not permit the State to pledge its ad valorem taxing power. The amount of outstanding indebtedness authorized by Article XI-O is limited to one percent of the real market value of all property in the State. House Bill 3659 (2003) requires the net proceeds of Article XI-O Bonds issued to finance State pension liabilities be transferred to the Public Employees Retirement Board (PERB) for deposit in the Public Employees Retirement Fund (PERF) established pursuant to ORS 238.660. A s of June 30, 2012, $2 billion remains outstanding. Of this amount, $1.4 billion (68 percent) is considered to be non-General Fund-supported debt (paid from non-General Fund sources); $645.5 million (32 percent) is considered to be General Fund-supported debt. The State does not currently anticipate issuing any additional XI-O Bonds. Pollution Control Article XI-H: Article XI-H authorizes indebtedness not to exceed one-half percent of statewide TCV to finance pollution control facilities. Any municipal corporation, city, county, or agency of the State may construct projects for pollution control. General Obligation Pollution Control bonds may be either General Fund supported or self-supporting from revenues generated by the program the bonds fund. Because bond proceeds are used for a variety of different pollution abatement projects, including orphan sites clean up, an increasing amount of the States pollution control debt may become General Fund supported. Clean Water State Revolving Fund (CWSRF) bonds are primarily Other Fund supported and Orphan Site bonds are primarily General Fund supported. At June 30, 2012, $42.3 million in Pollution Control General Fund backed bonded debt was outstanding. As full-faith-and-credit debt, if necessary, a s tatewide property tax may be levied or other revenues designated by the Legislative Assembly may be directed to provide payment of bond pr incipal and interest. U nder the Constitution, $2.3 billion in pollution control bonds could be issued; however, the Legislature has limited the debt that may be issued under this authorization to $260 million (ORS 468.195). This occurred, in part, because in 1990, voters approved expanded use of this bonding authority for pollution control and disposal activities, and exempted pollution control and disposal and hazardous substance facilities from the self-support requirement. Seismic Rehabilitation Bonds Article XI-M/XI-N: In the November 2002 e lection, two General Obligation programs were added to the Constitution for the purpose of creating grant programs that will provide funds for seismic structural improvements at public education buildings, hospitals, fire and law enforcement stations. Enabling legislation was enacted in 2005 ( Senate Bills 2-5). The first sale of Seismic Rehabilitation Bonds took place in July 2010 and as of June 30, 2012 $11.1 m illion in XI-M (Public education buildings) and $10.9 m illion in XI-N (emergency services buildings) bonds were outstanding.

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Real and Personal Property Owned or Operated by the State Article XI-Q: In November 2010 voters approved Measure 72, an amendment to the constitution allowing a new general obligation bond program for financing state owned or operated real and personal property. Bonds issued under this constitutional amendment are referred to as Article XI-Q Bonds. Enabling legislation (Senate Bill 19 (2011), Oregon Laws 2011, chapter 14) allowed for the first issuance of XI-Q bonds in May 2011. XI-Q Bonds were used both for new projects, such as the new State Hospital and the Transportation Building renovation, and to refund outstanding COPs. As of June 30, 2012 $303.1 m illion in Article XI-Q bonds were outstanding.

Self-Supporting
Overall, 66.2 percent of outstanding state General Obligation debt is considered self-supporting. Veterans Affairs Article XI-A: Under Article XI-A of the Constitution, debt may be incurred in an amount not to exceed eight percent of the States true cash value to finance farm and home loans for eligible veterans. A t June 30, 2012 , the Department of Veterans Affairs had $443.6 million in outstanding bonds. Veterans bonds are self-supporting from loan repayments, but carry the additional security of the Legislatures ability to levy an annual statewide property tax. Alternate Energy Projects Article XI-J: The Small Scale Energy Loan Program may not incur debt in excess of one-half of one percent TCV to finance development of small-scale local energy projects. Approximately 85 percent of outstanding Article XI-J bonds are supported from project revenue streams outside the State General Fund. Additional security is provided by a pledge of the full faith and credit of the State. At June 30, 2012, outstanding program bonds totaled $241.8 million. Higher Education Article XI-F(1): Article XI-F(1) empowers the State to issue bonds in an amount not to exceed three-fourths of one percent TCV for higher education building projects. B onds issued under this authority are expected to be self-supporting. If necessary, a statewide property tax may be used to provide for the payment of such indebtedness and the interest thereon. O n June 30, 2012 , approximately $1,130.7 million or 32.9 percent of the available authorization was outstanding. State Highway Article XI, Section 7: Article XI, Section 7 of the Oregon Constitution approves the issuance of bonds to build and maintain permanent roads. S uch bonds may not be issued in excess of one percent TCV. S ecurity for the bonds is provided by gasoline and weight-mile tax revenues, and additionally secured by the States general obligation. As of June 30, 2012, there was no outstanding debt for this program. However the Governors budget contemplates issuance of $453.3 million in Article XI, Section 7 bonds in 2013-15. Elderly and Disabled Housing Article XI-I(2): The State is empowered to issue bonds in an amount not greater than one-half of one percent of TCV ($2.3 billion) to provide financing for multi-family housing for households of elderly low-income persons and for disabled persons. E lderly and Disabled Housing program debt is self-supporting from project revenues and is backed by the states
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general obligation pledge, which includes property taxing authority. As of June 30, 2012, approximately $147.5 million of authorized debt was outstanding. Pollution Control Article XI-H: For the 2013-15 budget, approximately 21.6 percent of the States Pollution Control bonded debt was General Fund-supported. This represents a significant decline in the General Fund-supported ratio as new issuance has primarily been in the self-supporting State Clean Water Revolving Fund program. As of June 30, 2012, $42.3 million in authorized debt was outstanding. Pension Obligations Article XI-O: As previously noted, Article XI-O permits the State to lend its credit and to incur indebtedness to finance the states pension liabilities and to pay the costs of incurring such indebtedness. As of June 30, 2012, $2 billion remains outstanding. Of this amount, $1.4 billion (68 percent) is considered to be non-General Fund supported debt (paid from non-General Fund sources) and $645.5 million (32 percent) is considered to be General Fund-supported debt. T he State does not currently anticipate issuing any additional XI-O Bonds. Water Development Projects Article XI-I(1): The credit of the State may be extended in an amount not to exceed one and one-half of one percent of TCV ($6.9 billion) to provide financing for loans for construction of water development projects for irrigation, drainage, fish protection, watershed restoration, and municipal uses and for the acquisition of easements and rights of way for water development. As of June 30, 2012 no Water Development Bonds were outstanding, however the Governors budget authorizes the issuance of $10.2 million in bonds in 2013-15.

Appropriation Credit Authorization


Oregon Revised Statutes 283.085 to 283.092 provides that the State may enter into financing agreements, including lease-purchase agreements, installment sales agreements, and loan agreements to finance real or personal property and issue certificates of participation evidencing these financing agreements, subject to Legislative approval. F urther, the Oregon Supreme Court has ruled that certificates of participation financings (COPs) do not constitute an issuance of debt or an impermissible lending of credit for state law purposes. Amounts payable by the State under a financing agreement are limited to funds appropriated or otherwise made available by the Legislature for such payment. The principal amounts of such financing agreements are subject to maximum annual issuance levels established by the Legislature. The use of COPs has been greatly diminished with authorization of the Article XI-Q program previously discussed. The Governors budget does contemplate use of COPs in 2013-15 for multi-modal transportation grants and the initial deposit to the Innovation Fund. This action will require legislation changes authorizing these uses. As of June 30, 2012, $1.4 billion in COPs remained outstanding. Appropriation Bonds are special obligations of the State that are payable solely from appropriated moneys. Each fiscal year the Appropriation Bond Act and the Bond Declaration require the State to credit to the Oregon Appropriation Bond Fund any appropriated moneys until the Oregon Appropriation Bond Fund contains an amount sufficient to make all Bond principal and interest payments that are due in that fiscal year. The obligation of the State to provide appropriated moneys and to pay the Bonds is subject to future appropriation by the Oregon Legislative Assembly for the fiscal period in which payments are due. The Bonds are not secured by any lien on, or claim against, any State funds except appropriated moneys
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Capital Budgeting
and any other amounts that may be credited to the Oregon Appropriation Bond Fund. While the state is not obligated to provide any appropriated moneys, it has made certain covenants with respect to the appropriations process for the payment of debt service on t he Bonds. T he Series 2003 B onds were authorized by and issued in accordance with the provisions of the Appropriation Bond Act and applicable provisions of ORS Chapters 286 and 288. The Series 2003 B onds were issued to assist the State of Oregon in balancing its budget for the 2001-03 biennium. Proceeds of the Series 2003 Bonds were credited to the General Fund and used for purposes for which moneys in the General Fund may be expended. As of June 30, 2012, $163.2 million in appropriation bonds remains outstanding. The appropriation bonds will be completely repaid in fiscal year 2014.

Active Revenue Bond Authorizations


Single-Family and Multi-Family Housing: The Oregon Housing and Community Services Department (OHCSD) is the only statewide public body in Oregon serving as a central source of data and program information, training and education, planning and technical assistance, seed-money loans, mortgage financing, and federal tax credits relating to housing within the State. OHCSD may issue revenue bonds to finance both single-family mortgage loans and multi-family housing projects. Project rental revenues, mortgage payments, and fees are the sole source of support for these bonds. O RS 456.661 limits total outstanding debt under these programs to $2.5 billion. As of June 30, 2012, the amount outstanding for OHCSD is $1.2 billion - approximately 26 percent of all State of Oregon direct revenue-bonded debt. Highway User Tax: Pursuant to Article IX, Section 3a of the Oregon Constitution and ORS 367.605 to 367.670, as amended, inclusive and ORS Chapter 286A and Chapter 288 ( collectively, the Act), the State may issue highway user tax revenue bonds to provide proceeds for building and maintaining permanent public roads. T hese bonds are not general obligation, however; they are unlike other State revenue bonds, because they are secured by tax proceeds from fuel sales and various other taxes or fees charged for vehicle use and licensing. The Constitution provides that the revenues received shall be used exclusively for public highways, roads, streets and roadside rest areas in the state. T he Oregon Constitution also provides that such revenues may be used for the retirement of bonds for which such revenues have been pledged. Local Street Networks Fund. Bond proceeds are deposited to the State Highway Fund for distribution to local government projects throughout Oregon, based on a formula that promotes statewide equity. These projects are expected to provide a co st-effective means of reducing congestion on State highways by constructing improvements on local, off-system streets. Access Management Fund. Bond proceeds are also to be deposited to the State Highway Fund for access management projects that benefit the State highway system. T hese projects are expected to improve highway safety by limiting and controlling access to State highways through the purchase of access rights, and the construction of medians and other access-control features. Funding is made available for access management projects sponsored by the department. They are awarded based on project merit.

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State Highway Fund. In 2001, the Legislature took the first two of three major steps toward upgrading Oregon roads. House Bill 2142 (2001), also referred to as the Oregon Transportation Investment Act I (OTIA), increased several Driver and Motor Vehicle fees to secure $400 million in bonds to increase lane capacity and improve interchanges ($200 million), repair and replace bridges ($130 million), and preserve road pavement ($70 million). OTIA requires the Oregon Transportation Commission (the Commission) to select OTIA projects. In the first 2002 Special Session, the Legislature passed into law House Bill 4010 (OTIA II) that added $50 million for projects to increase lane capacity and improve highway interchanges, $45 m illion for additional bridge projects, and $5 million to preserve road pavement. In 2003, t he Legislature passed House Bill 2041, which provides $1.9 billion for the replacement and repair of bridges on State highways (OTIA III). In 2009, The Legislature approved House Bill 2001, the Jobs and Transportation Act which included an increase of $840 million in Highway User Tax bond authority. As of June 30, 2012, there is $2.2 billion in Highway User Bonds outstanding. Lottery Revenue Bonds: In 1994, O regon became the first state in the nation to issue revenue bonds backed solely by lottery proceeds. The first statutory authority, ORS 391.140, permitted the issuance of up to $115 million in bonds for financing the costs of development, acquisition, and construction of the Westside Corridor Light-Rail project. Three additional Lottery-backed programs, State Parks, Economic Development Safe Drinking Water Funds and Education activities were authorized during the 1997 Legislative Session and November general elections subsequent to that session. The 1999 Legislative Assembly enacted Senate Bill 200 combining the existing Lottery bond programs into a single program. In recent biennia proceeds from Lottery bonds have been used for a variety of purposes including grants to local governments, acquiring a n ew state forest, addressing deferred maintenance needs (including at community colleges), construction projects in the university system, providing non-highway transportation infrastructure including passenger rail acquisitions, development of affordable housing, local government infrastructure loans and other projects. As of June 30, 2012, the total amount outstanding for Lottery-backed projects was $1.2 billion. State Fair and Exposition Center: ORS 565.095 grants the Oregon State Fair Director the authority to issue, with the approval of the State Treasurer, up to $10 million in revenue bonds. Proceeds may be used for land acquisition, capital construction and improvement, and Fair expenses, including operations. There are currently no bonds outstanding in this program. Business Development Department Bond Bank: Under ORS 285B.410 to 285B.479, the Treasurer may issue revenue bonds to finance a S pecial Public Works Fund (SPWF) administered by the Oregon Business Development Department (OBDD). This program was created in 1985 to assist municipalities in financing the infrastructure necessary for economic development. The SPWF Act and the Water Act, the SPWF Program, the Community Facilities Program and the Water Program were created so that
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Capital Budgeting
municipalities, which include cities, counties, port districts, metropolitan service districts or domestic water supply districts, water supply or sanitary authorities, water improvement districts, water control districts, sanitary districts, county service districts and tribal councils of federally-recognized Indian tribes in the State of Oregon can borrow up t o $10 m illion in bond pr oceeds for projects needed to develop infrastructure system capacity. The SPWF Program assists local governments in meeting portions of their infrastructure and economic development needs, based upon the probability that jobs will be created and economic development will occur with the installation of needed public works. The Oregon Infrastructure Finance Authority is authorized under the SPWF Act, and ORS 285B.422, and assists local governments in meeting portions of their infrastructure and economic development needs by providing funds to acquire, construct, or develop community facilities. W ater Program loans are available to assist Oregon municipalities in their efforts to meet federal and State of Oregon mandates for public drinking water systems and wastewater collection and treatment systems. As of June 30, 2012 , $155.3 million of this authorized debt was outstanding. In general, borrowers from the Oregon Bond Bank have pledged a source or sources of repayment related to the project being financed. F or example, water project loans are typically repaid with water system revenues, and sewer projects are generally repaid with sewer system revenues. I n addition to these sources of repayment, each of the loans is repayable from the borrowers general fund. E xcept for borrowers that are counties, the borrowers obligation to make payments from its general fund is a full faith and credit obligation of the borrower. Energy Revenue Bonds: Authorized under Oregon Laws 2009, Chapter 753, the Energy Revenue Bond program was established for a variety of energy related purposes including financing energy efficiency, conservation and sustainable technology projects. These revenue bonds do not constitute a debt, liability or general obligation of the state and are payable solely from revenues, moneys or other program assets. No bonds have been issued to date under this program. The Governors balanced budget includes $25 million in issuance authority for Energy Revenue Bonds. Oregon University System Revenue Bonds: Authorized under ORS Chapter 352, OUS is authorized to issue revenue bonds payable solely from pledged education facility revenues. No bonds are currently outstanding under this program, however the Governors budget authorizes issuance of $5.9 million.

2013-15 Governor's Balanced Budget

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Capital Budgeting

Capital Budgeting
Conduit Revenue
Oregon Facilities Authority Bonds (OFA) ORS 289: The Oregon Facilities Authority, formerly known as the Health, Housing, Educational, and Cultural Facilities Authority (HHECFA), was created in 1989 and is empowered to issue bonds to assist with the financing of lands for health, housing, educational, and cultural uses and for the construction and financing of facilities for such uses. All bonds issued by the Authority are conduit or pass-through revenue bonds. The Authority reviews proposed projects and makes recommendations to the State Treasurer whether to issue bonds, which are secured solely by payments from the entities for which the projects were financed. A s of June 30, 2012, $1.6 billion in bonds were outstanding. The Governors budget allows for $750 million in new issuance authority. There is no recourse to the State for payment, should the project be unable to meet debt service requirements. Oregon Business Development Department ORS 285B: The Oregon Business Development Commission is empowered to issue Industrial Development Revenue Bonds (IDB) through the State Treasurer, issuer of all State bonds. T he proceeds are loaned to private businesses to finance various expansion, relocation, retention, and other projects that will stimulate economic development and provide jobs in the State. The Department may also issue a composite IDB to finance several projects, each of which would benefit from issuance cost savings brought about by pooling a series of smaller individual issues. The bonds are secured solely by payments made by the various private businesses on whose behalf the bonds are issued. In addition to federal requirements relating to the issuance of tax-exempt bonds, the Department subjects individual projects to a cost effectiveness test to ensure that the public benefits of a project outweigh the public costs. The authorizing statute (ORS 285B.344) for the Economic Development Revenue Bond Program allows unlimited issuance of these bonds. The Governors budget includes an authorization of $125 million for 2013-15. As of June 30, 2012, IDBs totaling $469.0 million were outstanding. Housing Development Revenue Bonds ORS 456.692. The Oregon Housing and Community Services Department (OHCSD) is authorized pursuant to Oregon Revised Statute 456.692 to issue conduit revenue bonds through the State Treasurer for its Housing Development Program. T he multifamily housing program provides financing for developments in which a specified number of units are provided to low income households. Each bond issue finances a single development that is separately secured by revenues and assets specifically pledged by the borrower. Similar to the other state conduit revenue bond programs, as noted above, there is no bondholder recourse to the State for payment, should the project be unable to meet its debt service requirements. Principal amount outstanding was $195.6 million as of June 30, 2012.

2013-15 Governor's Balanced Budget

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Capital Budgeting

Capital Budgeting
PRIVATE ACTIVITY BOND VOLUME CAP
The Tax Reform Act of 1986 i mposed a state-by-state volume cap on certain private activity bonds (PAB). T he Private Activity Bond (PAB) Committee is a statutory body consisting of its Chair, a representative of the Office of the State Treasurer; a public member, appointed by the Governor; and a representative of the Department of Administrative Services. The PAB Committee is charged with reallocating a portion of the states PAB authority to various state and local issuers as appropriate under its rules and governing federal and state law. The Debt Management Division of the State Treasury serves as staff to the PAB Committee. The volume-cap authorizations for calendar year 2014 and 2015 are based on $95 per capita and the 2011 Oregon population estimates. The budget recommends the following volume cap allocation for calendar years 2014 and 2015:

Recommended Private Activity Bond Allocation For 2014 and 2015 Calendar Years 2014 Calendar Year $ 40,000,000 $ 125,000,000 10,000,000 192,826,605 367,826,605 $ 2015 Calendar Year 40,000,000 125,000,000 10,000,000 192,826,605 367,826,605

Allocation for Business Development Department Housing and Community Services Department Department of Energy Private Activity Bond Committee

If an increase in the states population, a sufficient increase in the regions CPI, or a change in federal tax law result in an increase in the private activity bond l imit above $367,826,605, such excess shall be allocated to the Private Activity Bond Committee.

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Capital Budgeting

TABLE A RECOMMENDED STATE BOND ISSUANCE AUTHORIZATION


Each biennium, the Governor must recommend the maximum amount of General Obligation and Revenue bonds, Certificates of Participation, and other financing agreements state agencies may issue (ORS 286A.035). The Governor must consider the prudent maximum amounts advised by the State Treasurer developed in accordance w ith ORS 286A.035 (2) . The Governor's recommendation for the 2013-15 biennium is show n below .

Program Designation
GENERAL OBLIGATION BONDS (Constitutional Authority) General Fund Obligations Oregon University System (Art. XI-G) Community Colleges and Workforce Development (Art. XI-G) Department of Environmental Quality (Art. XI-H) (60% of the total amount for 2009-11 and 2011-13) Military Department - Office of Emergency Management Seismic Rehabilitation Bonds (Art. XI-M) Seismic Rehabilitation Bonds (Art. XI-N) Department of Administrative Services (Art. XI-Q)1 Sub-total General Fund Obligations $ $

2009-11 Actual

2011-13 Estimated

Recommended 2013-15 Maximum Limit

116,645,000 37,925,000 5,901,000

1,522,000 8,000,000 10,044,000 7,155,000 -182,155,000 208,876,000

17,608,000 16,500,000 -15,000,000 15,000,000 332,265,000 396,373,000

11,105,000 10,935,000 212,565,000 395,076,000 $

Dedicated Fund Obligations Department of Transportation (Art. XI, Sec. 7) Department of Veterans' Affairs (Art. XI-A) Oregon University System [Art. XI-F(1)] Department of Environmental Quality (Art. XI-H) (40% of the total amount for 2009-11 and 2011-13) Water Resources Department [Art. XI-I(1)] Housing and Community Services Department [Art. XI-I(2)] Department of Energy (Art. XI-J) Sub-total Dedicated Fund Obligations Total All General Obligation Bonds $ $ $

--296,425,000 3,934,000 --111,930,000 412,289,000 807,365,000

--35,560,000 6,696,000 --48,510,000 90,766,000 299,642,000

453,320,000 100,000,000 333,222,070 10,000,000 10,235,000 50,000,000 100,000,000 1,056,777,070 1,453,150,070

$ $

$ $

REVENUE BONDS Direct Revenue Bonds Housing and Community Services Department Department of Transportation Highw ay User Tax Oregon Transportation Infrastructure Fund Business Development Department Department of Administrative Services Lottery Revenue Bonds Oregon University System Department of Energy Sub-total Direct Revenue Bonds Pass-Through Revenue Bonds Business Development Department Industrial Development Bonds Oregon Facilities Authority Housing and Community Services Department Sub-total Pass-Through Revenue Bonds Total All Revenue Bonds CERTIFICATES OF PARTICIPATION AND OTHER FINANCING AGREEMENTS Department of Administrative Services Amounts do not include refundings. $ $ $ $ $ $

181,589,780 580,285,000 -21,555,000 239,520,725 --1,022,950,505

59,077,389 ---229,075,000 --288,152,389

300,000,000 846,690,000 20,400,000 60,000,000 155,380,000 5,880,000 25,000,000 1,413,350,000

155,155,000 173,966,067 71,869,958 400,991,025 1,423,941,530

$ $

20,300,000 245,000,000 110,393,002 375,693,002 663,845,391

$ $

125,000,000 750,000,000 200,000,000 1,075,000,000 2,488,350,000

337,848,613

12,500,000

103,975,000

2013-15 Governor's Balanced Budget

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Capital Budgeting

TABLE B

OUTSTANDING LONG-TERM FINANCIAL OBLIGATIONS AND CONSTITUTIONAL AND STATUTORY PROVISIONS AS OF JUNE 30, 2012
Constitutional Debt Limit{1}{2}
, $

Purpose/Department

Constitutional [Statutory] Provision Statutory Debt Limit Amount Outstanding{3} Authorization Remaining

% True Cash Value{1}

2013-15 Governor's Recommended Budget

$ $ $ $ 750,000/yr $ $ -156,000,000 $

50,000 6,877,447,587 859,680,948 2,917,072,704

2013-15 Governor's Balanced Budget


ARTICLE XI, SEC 7 ARTICLE XI-D ARTICLE XI-E [ORS 530.230] ARTICLE XI-G ARTICLE XI-G ARTICLE XI-H [ORS 468.195] ARTICLE XI-J ARTICLE XI-K ARTICLE XI-L ARTICLE XI-M ARTICLE XI-N ARTICLE XI-O ARTICLE XI-P ARTICLE XI-Q $ $ $ $ $ $ $ $ $ $ 203,175,000 $ $ 1,692,434,590 $ 25,095,273,761 486,563,356 300,352,879 2,292,482,529 2,153,652,529 905,888,012 906,058,012 821,697,619 2,292,482,529 4,281,845,058 $ $ 0.0000% 1.5000% 0.1875% 0.7500% -0.5000% 0.5000% 0.5000% 0.5000% 0.2000% 0.2000% 1.0000% 0.5000% 1.0000% 50,000 6,877,447,587 859,680,948 3,438,723,794 -504,346,156 343,872,379 2,292,482,529 2,292,482,529 916,993,012 916,993,012 1,467,188,819 2,292,482,529 4,584,965,058 ---403,131,090 118,520,000 17,782,800 43,519,500 -138,830,000 11,105,000 10,935,000 645,491,200 -303,120,000 17,608,000 16,500,000 ----15,000,000 15,000,000 --332,265,000 396,373,000 $ ARTICLE XI, SEC 7 ARTICLE XI-A ARTICLE XI-F(1) ARTICLE XI-H [ORS 468.195] ARTICLE XI-I(1) ARTICLE XI-I(2) ARTICLE XI-J ARTICLE XI-O $ $ $ 3,316,344,503 5,008,779,093 1.0000% 8.0000% 0.7500% 0.5000% 1.5000% 0.5000% 0.5000% 1.0000% $ $ $ $ $ $ $ $ 4,584,965,058 36,679,720,464 3,438,723,794 1,788,136,373 6,877,447,587 2,292,482,529 1,948,610,150 3,117,776,239 ---104,000,000 ----443,615,000 1,130,713,003 24,557,200 -147,535,000 198,255,500 1,371,668,800 4,584,965,058 36,236,105,464 2,308,010,791 1,763,579,173 6,877,447,587 2,144,947,529 1,750,354,650 1,746,107,439 $ $ 57,411,517,690 82,506,791,452 453,320,000 100,000,000 333,222,070 10,000,000 10,235,000 50,000,000 100,000,000 -$ $ 1,056,777,070 1,453,150,070 [ORS Chapter 456] $ 3,240,000,000 $ 200,000,000 $ 10,000,000 [ORS Chapter 367,620] [ORS Chapter 367] [ORS Chapter 286A.560-585] [ORS Chapter 565] ORS 470.570 - 470.585 [ORS Chapter 352] [ORS Chapter 285B] 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% $ 2,500,000,000 $ 1,239,620,000 2,199,465,000 -1,192,080,000 -$ 1,260,380,000 1,040,535,000 200,000,000 -10,000,000 $ 300,000,000 846,690,000 20,400,000 155,380,000 -25,000,000 5,880,000 -$ 155,315,000 4,786,480,000 $ -2,510,915,000 $ 60,000,000 1,413,350,000 [ORS Chapter 289] [ORS Chapter 285] [ORS Chapter 456.692] 0.0000% 0.0000% 0.0000% ---$ $ 1,562,784,865 468,957,555 195,612,600 2,227,355,020 $ ----$ $ 750,000,000 125,000,000 200,000,000 1,075,000,000 [ORS Chapter 283 & 286A] SB 856 - 2003 Legislature 0.0000% 0.0000% --431,560,000 $ $ 1,366,555,000 163,195,000 $1,529,750,000 -$ 103,975,000 $ 268,365,000 268,365,000 $ 103,975,000
4. Outstanding Veterans' Welfare and Higher Education general obligation debt reflect the proceeds amount of original issue discount bonds. 5. In this exhibit, Pollution Control debt is reported at the 60% General Fund supported and 40% self-supporting rates. 6. Authorized to finance capital costs of Oregon Health and Science University biotechnology research efforts. 7. Art. XI-J bonds assumed 15% GF-supported. Only proposed new GF-Supported items incl in 2011-13GRB column. Source: Debt Management Division, Oregon State Treasury.

General Obligation Bonds General Fund Supported General Purpose Bonds {6} State Pow er Development Bonds Forest Rehabilitation Higher Education Facility XI-G Bonds {4} Community College Bonds Pollution Control Bonds {5} (22% of total) Alternate Energy Project Bonds (15% of total) Oregon School Bond Guaranty OHSU/Department of Administrative Services, {6} Seismic Retrof it - Public Education Buildings Seismic Retrof it - Emergency Service Bldg Pension Obligation (32% of total amount) School District Capital Costs State Real and Personal Property

Total General Fund Supported

Ful l y Sel f--Supporti ng State Highw ay Bonds Veterans' Welf are Bonds {4} Higher Education Building projects XI-F Bonds {4} Pollution Control Bonds {5} (78% of total) Water Resources Bonds Elderly & Disabled Housing Bonds Alternate Energy Project Bonds (85% of total) Pension Obligation (68% of total amount)

Total Sel f--Supporti ng

L-21

Total General Obligation Bonds

Revenue Bonds Housing and Community Services Department Single & Multi-Family Housing Programs Department of Transportation Highw ay User Tax Transportation Inf rastructure Bank Lottery Revenue Bond Program(s) State Fair & Exposition Center Department of Energy Oregon University System Business Development Department Business Development - Bond Bank

Total Revenue Bonds

Conduit Revenue Bonds Oregon Facilities Authority Business Development Department Industrial Development Revenue Bonds Conduit Multi-f amily Housing Programs

Total Conduit Revenue Bonds

Certificates Of Participation (COP) Appropriation Credit Oregon Appropriation Bonds Total Appropriation Credits

1. Percentages listed are of True Cash Value (TCV) of all taxable real property in the state. The True Cash Value on January 1, 2011 was

$434,429,247,553. Total authorization remaining may not agree due to rounding.

2. The State of Oregon may not incur indebtedness exceeding $50,000 without a constitutional amendment approved by the voters.

3. Excludes refunded and defeased bonds.

Capital Budgeting

NOTE: Totals may not agree with sum of components due to rounding.

TABLE C

GENERAL OBLIGATION DEBT SUMMARY


June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012

Gross General Obligation (GO) Debt $ $ $ 3,739,400 $ $ $ 434,319,218,596 1.00% 0.29% $ 133,821,268,000 $ 140,975,982,000 $ 0.25% 0.90% 0.88% 0.26% 133,907,191,000 $ 501,152,650,155 $ 525,356,272,908 337 $ 337 $ 364 $ 1,164 $ 1,195 $ 1,210 $ 3,784,200 3,815,800 3,837,300 1,177 $ 369 $ 1,261,203,517 $ 1,273,546,173 $ 1,388,206,486 $ 1,414,226,097 $ 3,091,596,672 $ 3,246,866,501 $ 3,229,411,604 $ 3,101,820,683 $ 4,352,800,189 $ 4,520,412,674 $ 4,617,618,090 $ 4,516,046,780 $

(1)

4,951,679,093 3,292,927,503 1,658,751,590 3,857,625

$ $ $

5,008,779,093 3,316,344,503 1,692,434,590 3,883,100 1,284 $ 430 $ 1,290 436

2013-15 Governor's Balanced Budget


$ 498,684,550,831 0.91% 0.28% $ 137,820,653,000 $ 434,429,247,553 1.14% 0.38% $ 145,299,628,000 $ 458,496,505,800 1.09% 0.37% $ 150,926,650,000 2.31% 2.30% 2.41% 2.25% 2.27% 2.20% 0.94% 0.90% 1.04% 1.03% 1.14% 1.12%

Revenue Supported GO Debt

Net GO Debt

Population (2)

Gross Debt per Capita

Net Debt per Capita

L-22

True Cash Value [TCV]

(3)

Gross Debt as Percent of TCV

Net Debt as Percent of TCV

Total Personal Income (4)

Revenue Supported GO Debt as Percent of Total Personal Income

Net GO Debt as Percent of Total Personal Income

1. Pollution Control Debt is reported at 42% General Fund supported and 58% self-supporting as of June 30, 2011.

Alternative Energy Bonds are reported at 18% General Fund supported and 82% self supported debt as of June 30, 2011. Source:Oregon State Treasury

2. Population figures are as of July 1 each year. Sources: Department of Administrative Services, Office of Economic Analysis

3. True Cash Value is as of January 1 of the preceding year. Source: Oregon Department of Revenue

4. Total personal income includes all classes of income minus Contributions for Social Security and is presented on a calendar year basis. Projected

Capital Budgeting

for 2010. Source: Oregon Department of Administrative Services, Office of Economic Analysis.

TABLE D
AGGREGATE GENERAL OBLIGATION DEBT SERVICE AS OF JUNE 30, 2012
Payment Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 Principal 163,797,360 183,329,060 199,406,440 212,001,434 221,340,162 232,397,240 252,888,074 292,309,966 287,823,352 287,135,187 305,695,000 313,960,000 330,205,000 357,155,000 373,920,000 108,785,000 102,330,000 99,805,000 95,675,000 95,765,000 85,200,000 89,285,000 82,725,000 83,150,000 62,555,000 59,780,000 57,730,000 37,140,000 20,120,000 16,875,000 2,875,000 2,910,000 2,975,000 1,640,000 200,000 210,000 Interest 259,937,382 252,739,526 242,688,831 234,858,906 226,674,582 213,766,335 199,140,172 186,479,469 169,325,796 154,018,144 137,686,924 121,700,345 104,795,805 86,698,306 67,071,911 46,598,162 41,775,452 37,195,230 32,780,765 28,467,418 24,413,872 20,554,423 16,736,376 12,984,519 9,371,227 6,579,991 3,936,518 1,982,367 999,180 357,079 76,644 55,636 40,846 27,476 17,100 7,481 Total Requirements $ 423,734,743 436,068,586 442,095,272 446,860,340 448,014,744 446,163,575 452,028,246 478,789,435 457,149,148 441,153,330 443,381,924 435,660,345 435,000,805 443,853,306 440,991,911 155,383,162 144,105,452 137,000,230 128,455,765 124,232,418 109,613,872 109,839,423 99,461,376 96,134,519 71,926,227 66,359,991 61,666,518 39,122,367 21,119,180 17,232,079 2,951,644 2,965,636 3,015,846 1,667,476 217,100 217,481

TOTALS:

5,121,093,275

2,942,540,194

8,063,633,470

Veterans' Affairs Series 73E, 73F, 73G, and 73H Variable Rate Bonds w ere calculated in this report using an interest rate of 6%. NOTE: Totals may not agree w ith sum of components due to rounding. Information Source: Debt Management Division, Oregon State Treasury.

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Capital Budgeting

TABLE E
2009-11 Actuals
TOTAL COPS TOTAL COPS TOTAL

SUMMARY OF DEBT SERVICE REQUIREMENTS FOR STATE BONDED INDEBTEDNESS BY FUND


2011-13 Leg Approved Budget 2013-15 Governor's Budget
COPS

Description

General Fund Supported


28,227,711 3,762,279 5,116,596 10,661,602 5,583,038 4,750,922 11,360,288 129,495,861 4,592,353 7,653,121 59,508,106 8,238,075 2,504,731 355,543 8,999,171 $290,809,397 9,478,692 2,504,731 355,543 8,999,171 $227,467,712 7,653,121 129,495,861 11,360,288 11,283,810 138,859,174 5,573,180 5,342,506 54,161,379 74,503,194 15,693,047 2,890,593 350,262 10 $370,574,915 4,750,922 575,850 5,101,264 9,655,111 10,661,602 20,258,576 5,116,596 6,768,675 6,768,675 20,258,576 6,485,457 575,850 10,406,797 138,859,174 5,155,518 54,161,379 8,383,888 2,890,593 350,262 10 $272,141,772 3,762,279 6,813,955 28,227,642 17,845,593 17,845,593 14,167,748 6,815,736 4,537,127 1,601,856 6,016,575 23,330,649 7,835,107 10,136,429 131,444,114 4,729,793 2,017,315 71,022,345 94,813,066 2,909,396 354,775 757,944 $382,489,975 8,823,675 6,815,736 6,016,575 7,491,125 5,556,586 7,589,210 77,203,244 1,012,565 50,889,855 8,387,588 2,378,100 354,775 757,944 $183,276,978

Human Services, Dept. of

Administrative Svcs, Dept of

Oregon Business Development Department

2013-15 Governor's Balanced Budget


5,395,406 70,756,731 516,894 13,431,872 55,232,892 323,068 8,497,075 82,100,202 2,164,185 14,394,033 54,160,517 8,970,125 56,442,255 3,437,724 38,268,281 42,457,585

Justice, Dept of

Legislative Administration Committee

Judicial Dept

Military Dept, Oregon

Police, Dept of State

Public Safety Standards & Training, Dept of

Corrections, Dept of

Environmental Quality, Dept of

L-24

Oregon Youth Authority

Oregon Health Authority

Department of Post-Secondary Education

Oregon University System

Community Coll & Workforce Dvlpmnt, Dept of

Forestry, Dept of

Fish & Wildlife, Oregon Dept of

Transportation, Oregon Dept of

Total General Fund Supported

Lottery Funds Supported


-

Administrative Svcs, Dept of

Oregon Business Development Department

Energy, Dept of

Department of Post-Secondary Education

Oregon University System

Capital Budgeting

Education, Dept of

TABLE E
2009-11 Actuals
TOTAL COPS TOTAL COPS TOTAL

SUMMARY OF DEBT SERVICE REQUIREMENTS FOR STATE BONDED INDEBTEDNESS BY FUND


2011-13 Leg Approved Budget 2013-15 Governor's Budget
COPS

Description

Lottery Funds Supported


8,307,548 1,374,136 4,093,009 348,455 80,439,321 8,454,527 $248,350,791 $323,068 $259,075,586 10,464,685 72,614,930 732,384 4,261,181 2,542,314 7,144,080 3,319,996 4,506,423 242,676 1,623,026 95,261,416 10,010,599 $264,540,106 -

Community Coll & Workforce Dvlpmnt, Dept of

Forestry, Dept of

Parks & Recreation Dept

2013-15 Governor's Balanced Budget


14,128,550 515,053,750 66,310,665 2,650,000 1,272,384 458,611,187 214,690,168 59,976,866 6,484,086 930,019 1,423,075 366,023 201,614,800 3,839,160 2,823,882 96,602,065 8,559,810 2,650,000 106,844 2,563,840 240,600 930,019 1,423,075 366,023 14,593,347 1,454,374 76,678,648 14,128,550 482,245,266 68,932,974 660,530 275,020,385 68,308,598 16,388,801 10,679,401 1,418,600 368,888 209,926,926 2,525,733 200,000 100,291,859 1,665,510 33,650,957 353,941 238,600 10,679,401 1,418,600 368,888 17,728,574 1,665,510 394,648,309 42,203,356 107,355 184,700,000 69,948,004 17,140,278 6,372,432 1,302,850 186,075 31,572,788 1,772,146

Fish & Wildlife, Oregon Dept of

Water Resources Dept

Transportation, Oregon Dept of

Housing & Community Svcs Dept

Total Lottery Funds Supported

Other Funds Supported


24,775,806 77,780 186,075 1,340,205

L-25

Human Services, Dept. of

Administrative Svcs, Dept of

Oregon Business Development Department

Legislative Administration Committee

Military Dept, Oregon

Veterans' Affairs, Oregon Dept of

Corrections, Dept of

Energy, Dept of

Environmental Quality, Dept of

Oregon Health Authority

Public Employees Retirement System, Oregon

Employment Dept

Department of Post-Secondary Education

Oregon University System

Education, Dept of

Community Coll & Workforce Dvlpmnt, Dept of

Oregon Health and Science University

Capital Budgeting

Forestry, Dept of

TABLE E
2009-11 Actuals
TOTAL COPS TOTAL COPS TOTAL

SUMMARY OF DEBT SERVICE REQUIREMENTS FOR STATE BONDED INDEBTEDNESS BY FUND


2011-13 Leg Approved Budget 2013-15 Governor's Budget
COPS

Description

Other Funds Supported


262,709,930 609,141,842 $2,527,188,262 $116,729,538 $1,973,790,903 365,424,221 $88,417,803 1,594,218 367,214,388 21,586,404 1,791,895 726,928 726,928 2,437,854 3,130,777 464,052,646 331,737,642 $1,551,312,512 12,172,380 $38,552,246

Fish & Wildlife, Oregon Dept of

Water Resources Dept

Transportation, Oregon Dept of

2013-15 Governor's Balanced Budget


2,071,768 598,088 11,921,871 $14,591,727 $2,669,856 598,088 2,071,768 1 1,262,826 1 1 4,374,411 4,922,075 1 21,621,528 $32,180,844 1,262,825 1 4,374,411 671,650 $6,308,887 1,262,826 1 1 4,374,411 671,651 21,621,529 $27,930,419 $3,080,940,177 $347,190,174 $2,635,622,248 $366,868,462 $2,226,273,012

Housing & Community Svcs Dept

Total Other Funds Supported

Federal Funds Supported


1,262,826 1 4,374,411 671,650 $6,308,888

Human Services, Dept. of

Administrative Svcs, Dept of

Corrections, Dept of

L-26

Energy, Dept of

Oregon Youth Authority

Oregon Health Authority

Department of Post-Secondary Education

Oregon University System

Community Coll & Workforce Dvlpmnt, Dept of

Transportation, Oregon Dept of

Total Federal Funds Supported

Grand Total Debt Service Requirements

$228,138,112

Capital Budgeting

TABLE F CAPITAL FINANCING SIX-YEAR FORECAST SUMMARY

ORS 291.216 requires the Governor's balanced budget to compare state agency capital financing needs to the State Debt Policy Advisory Commission's (SDPAC) six-year estimate of net debt capacity. The capital financing needs are in three categories: capital construction, equipment and technology, and grants and loans. The estimates in Table F reflect changes in capacity based on the December revenue forecast using the SDPAC model. The SDPAC debt capacity estimate as of Jan. 10, 2012 was $2.57 bil. General Fund supported debt and $619 mil. lottery debt through 2015-17. The Governor's Budget anticipates setting aside an additional $244 million in General Fund supported capacity for education. Changes may occur during the legislative process and targets may be updated from time to time. Net tax supported debt includes three components. The first is General Fund Supported Debt. The second is the Lottery Revenue bond program. The third is the Transportation Department Bonds. There are specific debt capacity estimates only for General Fund Supported Debt Programs and Lottery Revenue Bond Programs. The Transportation Department Bond capacity is limited by Oregon law, and in Article XI, Sec. 7 of the Constitution.

2013-15 Governor's Balanced Budget


2013-15 REPAYMENT SOURCE SDPAC Model OTHER FUNDS $ $ $ LOTTERY FUNDS ESTIMATED NET DEBT CAPACITY 944,000,000 GENERAL FUND OTHER FUNDS LOTTERY FUNDS SDPAC Model GENERAL FUND OTHER FUNDS LOTTERY FUNDS $ ESTIMATED NET DEBT CAPACITY 825,000,000 290,950,000 1,115,950,000 2015-17 REPAYMENT SOURCE 2017-19 REPAYMENT SOURCE SDPAC Model ESTIMATED NET DEBT CAPACITY 825,000,000 63,975,000 $ 244,000,000 --$ 275,000,000 --275,000,000 --$ -30,000,000 337,975,000 $ -- $ -- $ (337,975,000) $ 275,000,000 $ -- $ -- $ 275,000,000 ------ $ ---- $ $ ---- $ $ 252,486,969 -252,486,969 $ (252,039,506) $ N/A ---- $ ---$ N/A $ 252,039,506 -(315,075,000) $ 252,039,506 $ 290,950,000 ---- $ $ 2013-15 REPAYMENT SOURCE SDPAC Model OTHER FUNDS $ LOTTERY FUNDS ESTIMATED NET DEBT CAPACITY 156,000,000 GENERAL FUND OTHER FUNDS LOTTERY FUNDS $ 2015-17 REPAYMENT SOURCE SDPAC Model ESTIMATED NET DEBT CAPACITY 275,000,000 620,000 GENERAL FUND OTHER FUNDS LOTTERY FUNDS $ 2017-19 REPAYMENT SOURCE SDPAC Model ESTIMATED NET DEBT CAPACITY 275,000,000 275,620,000 8,485,000 -- $ ---146,895,000 -- $ 155,380,000 $ $ (155,380,000) $ 620,000 ----- $ ----- $ ---- $ $ N/A -- $ ----- $ ----- $ ----$ N/A

The SDPAC did not make specific capacity estimates for Non Tax-Supported Debt Programs. Debt capacity is based on legal limits in Oregon laws and the Constitution, sound program management, loan demand, need for capital projects, and appropriate reviews by the State Treasurer, the Governor, and the Legislative Assembly. This table shows expected debt issuance only.

The SDPAC did not make specific capacity estimates for Conduit Revenue Bond Programs. The conduit borrower is solely responsible to repay the debt. Debt capacity is based on borrowers' ability to repay bonds, market effects on the other state bond programs, legislative authorization, and central debt management review.

Capital Financing Needs beyond 2013-15 include projects proposed by agencies which may not be included in the future.

General Fund Supported

NET TAX-SUPPORTED GENERAL DEBT PROGRAMS FUND SDPAC estimated new net debt capacity Projected Debt Capacity Carryforward

Projected Debt Capacityfrom cancelled/deferred projects

L-27

Certificates of Participation Grants

GENERAL OBLIGATION BONDS - Capital Construction Governor's Education Allocation Art. XI-J Alternate Energy Projects - Grants and Loans (GF only) Art. XI-M/N Seismic Bonds Less total G.O. bonds (GF only)

Article XI-Q Dept. of Administrative Services 211,100,000 $ $ - Capital Construction - Equipment and Technology 103,975,000 $ 315,075,000 $ Less total for XI-Q (GF Only) Remaining estimated net tax-supported debt capacity.

NOTE:

Carryforward Article XI-G bond issuance is excluded if bond capacity was previously reduced.

Lottery Supported

NET TAX-SUPPORTED GENERAL DEBT PROGRAMS FUND SDPAC estimated net new debt capacity.

Projected Debt Capacity Carryforward

LOTTERY REVENUE BONDS

Capital Budgeting

Department of Administrative Services - Capital Construction -- Equipment and Technology -- Grants and loans -Less total for lottery revenue bonds $ -- $ Remaining estimated lottery revenue debt capacity

TABLE F CAPITAL FINANCING SIX-YEAR FORECAST SUMMARY


2013-15 REPAYMENT SOURCE ESTIMATED GENERAL FUND $ 4,584,969,058 $ 4,131,769,058 $ 1,040,535,000 $ 173,445,000 $ 305,706,000 453,200,000 FUNDS FUNDS CAPACITY FUND FUNDS FUNDS CAPACITY FUND OTHER LOTTERY NET DEBT GENERAL OTHER LOTTERY NET DEBT GENERAL OTHER FUNDS ESTIMATED LOTTERY FUNDS 2015-17 REPAYMENT SOURCE 2017-19 REPAYMENT SOURCE ESTIMATED NET DEBT CAPACITY

OTHER TAX-SUPPORTED

DEBT PROGRAMS

CONTINUED

Debt capacity - General Obligation Art. XI, Sec. 7

2013-15 Governor's Balanced Budget


$ -$ $ 173,445,000 $ -- $ 867,090,000 $ -- $ (867,090,000) $ -- $ -- $ N/A -- $ 20,400,000 ------ $ 846,690,000 $ ---- $ -- $ $ --- $ $ N/A -2013-15 REPAYMENT SOURCE GENERAL FUND OTHER FUNDS LOTTERY FUNDS TOTAL FORECAST DEBT GENERAL FUND OTHER FUNDS 2015-17 REPAYMENT SOURCE LOTTERY FUNDS TOTAL FORECAST DEBT GENERAL FUND 2017-19 REPAYMENT SOURCE OTHER FUNDS LOTTERY FUNDS TOTAL FORECAST DEBT -- $ ------- $ 10,000,000 603,457,070 $ --- $ 100,000,000 -100,000,000 10,000,000 603,457,070 $ 333,222,070 -333,222,070 50,000,000 -50,000,000 10,235,000 10,235,000 ------- $ 100,000,000 -- $ 100,000,000 -- $ N/A N/A N/A N/A N/A N/A -- $ -------- $ -------- $ -- $ ------- $ N/A N/A N/A N/A N/A N/A -- $ -- $ ------- $ --------- $ 300,000,000 25,000,000 5,880,000 ---- $ 300,000,000 25,000,000 5,880,000 -- $ --N/A N/A N/A -- $ ------- $ --N/A N/A N/A -- $ -------- $ 60,000,000 390,880,000 $ --- $ $ 60,000,000 390,880,000 $ 994,337,070 --- $ N/A -- $ --- $ $ --- $ ---- $ N/A -- $ --- $ $ ----

Dept of Transportation Cap Const

Remaining general obligation transportation debt capacity

Debt capacity limited by statute

REVENUE BONDS

Transportation Highway User Tax

- Capital Construction Transportation Infrastructure Fund

- Grants and loans

Less total for revenue bonds

Remaining transportation revenue debt capacity

L-28

OTHER NON TAX-SUPPORTED DEBT PROGRAMS

GENERAL OBLIGATION BONDS Veterans' Welfare-(Art XI-A) - Grants and loans Water Development Proj (Art. XI-I (1)) - Grants and loans Elderly & Disabled Hous (Art. XI-I(2) - Grants and loans Oregon Univ. Sys Bonds (Art. XI-F) - Capital Construction Alternate Energy Bonds (Art. XI-J) - Grants and loans Pollution Control Bonds (Art. XI-H) - Grants and loans $ Total G.O. bonds

REVENUE BONDS Single and Multi-family Housing Bonds - Grants and loans Energy Revenue Bonds - Grants and loans Oregon University Sys Revenue Bonds - Capital Construction Business Development Dept. Bond Bank & Safe Drinking Water - Grants and loans $ Total revenue bonds

Capital Budgeting

Total other non tax-supported debt forecast

Glossary
Agency Request: The budget prepared by state agencies for consideration by the Governor. It contains necessary revenues, expenditures and staffing to continue currently approved programs, plus a plan to reduce expenditures by 10 percent. It also may propose new programs or changes to existing programs (policy packages). Agencies send this budget to the Chief Finance Office (CFO) of the Department of Administrative Services (DAS). Oregon law requires submission of this budget by September 1 of evennumbered years. See Governors Recommended Budget. Appropriation: An amount of money from the General Fund approved by the legislature for a certain purpose. Base Budget: This is the starting point for budgeting. For the 2013-15 biennium, the base budget includes the 2011-13 Legislatively Adopted Budget adjusted for Emergency Board and special session actions through April 2012. It is also updated to fully fund existing employee compensation into the next biennium. Biennium: A biennium is a two-year period in which a budget is effective. It begins on July 1 of oddnumbered years and ends on June 30 of the next odd-numbered year. For example, the 2013-15 biennium will begin on July 1, 2013 and end on June 30, 2015. Capital Construction: See Major Construction/Acquisition. Capital Improvement: A project that costs less than $1,000,000 to build, buy, renovate or modify the use of a facility or to buy land. Costs must add to the value of capital assets. Capital Outlay: Expenditures for items not consumed in routine agency operations. These expenditures have a useful life of more than two years with an initial value of $5,000 or more. Capital Projects Advisory Board: A seven-member board, including five public members, appointed by the DAS Director for the purpose of establishing a statewide planning and review process that evaluates the needs of the states facilities; provides comparative information on the condition of the states facilities; establishes guidelines and standards for acquiring, managing and maintaining state facilities; reviews siting of facilities in the Salem/Keizer area; and evaluates design submittals for Capitol Mall projects. Certificates of Participation: Certificates of Participation (COPs) are government securities used to raise funds to improve and construct buildings or purchase equipment. COPs are used to finance capital costs related to construction or acquisition and may not be used to finance ongoing operating costs. COPs are sold to investors. In return, the investors receive COP payments, which include interest income and principal. Debt Service: Expenditures for repaying the principal and interest on the states debt. The states debt is the General Obligation or Revenue Bonds and Certificates of Participation it has issued to raise money. Emergency Board: The legislative board that makes budget decisions when the Legislative Assembly is not in session. Its members are legislators. The Board is allowed by the Oregon Constitution. Its powers are set forth in the Constitution and in Chapter 291 of Oregon statutes. Emergency Fund: The Emergency Board uses this fund to meet budget needs of state agencies that arise between legislative sessions. The Legislative Assembly appropriates General Fund revenues to this fund. Current Service Level: The calculated cost to continue current legislatively approved programs into the next biennium (2013-15). Current service level is built on the base budget plus essential packages.
2013-15 Governor's Balanced Budget M-1 Glossary

Glossary
Essential Package: An essential package is added to the base budget to build the current service level. Individual essential packages adjust the base budget for the following changes: program phase-ins or phaseouts, vacancy savings, inflation, price list changes, fund shifts and mandated caseload growth. It is not used to ask for new programs or to expand programs. The base budget and essential packages make up the current service level. See Program Package. Executive Branch: The branch of state government that carries out and enforces state laws. It is made up of state agencies, and the Governors Office, Secretary of State, State Treasurer, Superintendent of Public Instruction and Commissioner of the Bureau of Labor and Industries. The other two branches are Legislative and Judicial. Expenditure Limitation: The maximum amount an agency can spend. Spending limits are set in budgets adopted by the Legislative Assembly and apply to Lottery Funds, Other Funds and Federal Funds. An agency can change the spending limits through requests to the interim Emergency Board or the Legislative Assembly in special session. Federal Funds: Dollars the federal government sends to state agencies to pay for specific services or programs. Full-time Equivalent: Full-time equivalent is a formula for calculating the cost of positions. A position filled for all 24 months of a biennium is one full-time equivalent. The cost of a position filled part-time or for only part of a biennium is prorated. For example, an agency may have enough money to fill a position for only one year of the two-year budget cycle, which means the position is 0.50 full-time equivalent. General Fund: General Fund is the only money that can be used for general purposes of state government. It is not dedicated to a specific agency or program. Most of this money comes from personal and corporate income taxes. Some revenues from liquor, cigarettes and other sales go into the General Fund. Governor's Recommended Budget: The Governors recommended budget is the budget the Governor proposes for state government, including specific programs and an amount of funding for each. The Governors recommended budget is sent to the Legislative Assembly. It must be transmitted to the Legislature by December 1 of even-numbered years. If a new Governor is elected, it must be submitted by February 1 of the odd-numbered year after the general election. Judicial Branch: The branch of state government that interprets the Oregon Constitution and state laws. It includes the courts of the state, with the Supreme Court having general power over all other courts. The other two branches are Legislative and Executive. Legislative Branch: The branch of state government that creates state laws. It also decides how state government will be financed. It has a Senate of 30 members and a House of Representatives of 60 members, all elected. The other two branches are Executive and Judicial. Legislatively Approved Budget: The Legislative Assembly decides on the legislatively adopted budget (LAB) when it is in regular session. When the Legislature is not in session, Emergency Board actions change the LAB. Legislative actions from a special session also may change the LAB. When these changes are made to the LAB, it is the Legislatively Approved Budget. Lottery Funds: Money the state receives when people play state lottery games is called Lottery Funds. By law, the state may use Lottery Funds for economic development, education, and natural resources. Ballot
2013-15 Governor's Balanced Budget M-2 Glossary

Glossary
Measure 76 (2010) dedicates 15 percent of net Lottery proceeds to parks (7.5 percent) and native species (7.5 percent). Of the 7.5 percent dedicated to native species efforts, up to 35 percent may be spent on operations and at least 65 percent must be spent on local grants. Effective July 1, 2003, the Education Stability Fund receives 18 percent of the net proceeds from the Oregon Lottery. Seventy-five percent of the interest earnings on the Education Stability Fund pays debt service on Education Lottery Bonds. The balance of the earnings on the Fund is made available to the Student Assistance Commission for the Opportunity Grant Program. There are also dedicated distributions for county economic development, county fairs, and gambling addiction treatment. The rest of the Lottery Funds is available to pay for Lottery bond debt service, the State School Fund and economic development programs. Major Construction/Acquisition: A project that costs $1,000,000 or more to build, buy, renovate or modify the use of a facility, or purchase land. Budget approvals of these projects have a life of six years from the effective date of the first approval of any element of the project. All major construction/acquisition projects are subject to the review of the Capital Projects Advisory Board. Nonlimited Expenditures: The Legislative Assembly does not place a spending limit on Nonlimited expenditures. These expenditures must be approved in an agencys budget. They must be for a specific purpose and typically are for expenditures that are outside of the agencys control and have some other limitation factor, such as a contract. Other Funds: Money received by state agencies that does not come from the General Fund, Lottery Commission or the federal government is Other Funds. The money comes from sources such as gasoline taxes, professional license fees, building permits, hunting licenses, etc. This money is usually "dedicated," thus requiring that it must be spent for specific purposes. For example, a park user fee can only be used by the Parks and Recreation Department. Outcome Areas: Outcome areas are groups of related programs across state agencies. The name of the outcome indicates the general purpose or outcome. For instance, the Healthy People Outcome Area includes programs that contribute to the health and well being of Oregonians. Personal Services: The cost of paying the states employees. This cost includes salaries, benefits and other payroll costs. Phase-In: New programs or services are sometimes started midway through a biennium. During the next biennium, the budget needs to include the full 24-month cost of that program. The additional cost to fully fund the program for 24 months is the phase-in amount. Phase-Out: The opposite of phase-in. These costs in the current biennium are not required in the next biennium. Such costs include one-time expenditures for equipment, studies or start-up costs that are not reoccurring. It also includes costs for programs or services that end part way through the biennium, so a full 24 months of expenditures is not needed. Policy Package: A package that presents policy and program changes above or below the agencys current service level. An agencys total budget is the sum of its base budget, essential packages and policy packages. Program Areas: Program areas are groups of agencies that have related programs. The name of the program area tells the purpose of the agencies. For example, the Public Safety Program Area includes agencies with public safety as a purpose.
2013-15 Governor's Balanced Budget M-3 Glossary

Glossary

Program Funding Team: A five person Governor appointed team of private citizens who reviewed agency programs for impact on outcome area goals and made funding recommendations. Revenues: Dollars sent to state agencies from all sources appropriated for the payment of public expenses. Services and Supplies: Services and Supplies is a budget category showing how much money is approved to pay the daily costs of operating the agency. Common expenses are for rent, office supplies, contracts for services, telephone service, data processing, maintenance, etc. Special Payments: These budgeted transfers and payments are made directly to eligible persons, contractors, or others. The payments also go to local governments, such as counties, or school districts. State Agency: The Legislative Assembly creates a state agency. It is a unit of state government and may be a department, division, board, or commission. Its purpose is to carry out and enforce state laws. Some examples are the Department of Veterans Affairs, Bureau of Labor and Industries, Board of Nursing and Department of Transportation.

2013-15 Governor's Balanced Budget

M-4

Glossary

Revenue REVENUE SUMMARY


Current Law Projection
The Department of Administrative Services Office of Economic Analysis projects General Fund revenue of $15,440 million for 2013-15. A beginning balance of $83.7 million is anticipated for the new biennium, after a transfer of $137.2 million is made to the Rainy Day Fund. Personal income tax makes up the largest share of the General Fund. It accounts for about 87 percent of projected revenues. Corporate income taxes are about six percent of the total revenue amount. Other sources make up the remainder. The largest of the other sources are insurance taxes, estate taxes, and liquor apportionment transfer. Personal income tax revenues will total $13,506.8 million, and corporate income tax revenues are expected to be $1,052.9 million for the biennium. New state Lottery revenues for the biennium are forecast to be $1,048.8 million. The budget does not anticipate a beginning balance. Interest on the Education Stability Fund and carry forward revenue provide an additional $2.0 million of resources. Total resources are expected to be $1,050.8 million for the 2013-15 biennium. Dedicated distributions for the Education Stability Fund, the Parks and Natural Resources Fund, county economic development, county fairs, and problem gambling treatment will total $395.8 million. Funds dedicated for debt service on Lottery bonds will total $264.5 million. In addition to these distributions, $571.0 million will be available for allocation to education and economic development activities in the 2013-15 biennium.

Governor's Recommended Revenue Changes


The Governor recommends continuing 15 corporate and personal income tax credits that are set to end in 2013-15. Most of them do not have a substantive affect on the General Fund and cumulate to about $48.1 million. The Governor recommends enhancing the Earned Income Tax credit, resulting in a decrease of $22 million, and an expansion of the Film Development tax credit, reducing the General Fund by $12 million. The budget also includes expected costs for the issuance of Tax Anticipation Notes (TANs). These notes are used by the State Treasurer during the biennium to help with General Fund cash flow. The total cost for the biennium is estimated at $12.4 million. When the Governors recommended revenue changes are incorporated into the revenue forecast, total General Fund revenues for 2013-15 will be $15,439.9 million. This is an 11.9 percent increase over the latest forecast of General Fund resources for the 2011-13 biennium.

2013-15 Governor's Balanced Budget

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Revenue

SCHEDULE I SUMMARY OF GENERAL FUND REVENUES BY MAJOR SOURCE

2013-15 Governor's Balanced Budget


2009-11 Actuals Percent of Total Percent of Total 87.3% 6.5% 0.7% 1.3% 0.4% 0.4% 0.0% $13,371,058,000 1,045,662,000 108,512,000 203,982,000 68,677,000 59,366,000 1,262,000 86.8% 6.2% 0.7% 1.4% 0.5% 0.4% 0.0% $13,450,558,000 1,004,062,000 108,512,000 203,982,000 68,677,000 59,366,000 1,262,000 $10,467,224,754 827,614,737 88,863,964 168,864,436 76,837,203 47,328,227 2,495,734 $11,974,811,221 855,875,026 97,226,292 199,138,200 74,233,901 56,231,003 2,160,065 2011-13 Current Estimates 2013-15 Current Law Forecast 2013-15 Governor's Balanced Budget Change from Current Law or Other Adjustment 50,463,888 41,949,415 59,460,448 19,262,901 8,174,496 198,283,065 4,925,621 10,906,708 447,383,000 $12,520,038,597 0 $13,799,200,911 0.0% 100.0% 9,896,785 0.1% 13,121,545 0.1% 230,470,399 1.7% 11,151,513 0.1% 11,152,000 225,041,000 9,961,000 15,500,000 0 $15,412,038,000 133,659,863 50,799,820 71,326,508 19,098,767 1.0% 0.4% 0.5% 0.1% 130,141,000 48,000,000 55,640,000 20,184,000 0.8% 0.3% 0.4% 0.1% 0.1% 1.5% 0.1% 0.1% 0.0% 100.0% 130,141,000 48,000,000 56,140,000 20,184,000 11,152,000 233,943,577 9,961,000 (2,722,166) 74,603,281 $15,439,921,692 0 0 500,000 0 0 8,902,577 0 74,603,281 $27,883,692

Taxes Personal Income Taxes Corporate Excise and Income Taxes Insurance Taxes Estate Taxes Cigarette Taxes Other Tobacco Products Taxes Other Taxes

(79,500,000) (1) 41,600,000 (2) 0 0 0 0 0

Fines and Fees State Court Fees Secretary of State Corporation Fees Criminal Fines and Assessments Securities Fees

(3)

N-2

Charges for Services

Sales Income

(4)

Interest Earnings

Other

(18,222,166) (5) (6)

One-time Transfers Total General Fund Revenues

Explanation of Recommended Changes:

(1) Includes a reduction of $45.5 million for extending personal income tax credits that are scheduled to sunset in 2013-15. See the Tax Expenditure Report for a full list of sunset dates. Also includes reductions of $22.0 million and $12.0 million for expanding Earned Income Tax Credit and Film/Video tax credits, respectively. (2) Includes a reduction of $2.6 million for extending corporate tax credits that are scheduled to sunset in 2013-15. See the Tax Expenditure Report for a full list of sunset dates. Also includes a proposal to cap Strategic Investment Program transfers to counties at $12 million per biennium. (3) Represents program reductions (savings) in agencies that receive a percentage portion of CFA revenue. These savings are then passed on to the General Fund. (4) Upward revision to Liquor Apportionment revenue projections made after the December 2012 forecast to reflect increased sales volumes. (5) Includes a decrease for projected Tax Anticipation Note (TAN) issuance costs in the 2013-15 biennium. (6) Transfers include anticipated 2011-13 GF reversions ($10 million), unspent 2011-13 Emergency Fund ($49.8 million), and transfers from the Tax Amnesty Fund ($4.8 million) and the Supplemental Employment Department Administration Fund ($10 million).

Revenue

GENERAL FUND SUMMARIES


CASH BALANCES
2013-15 GOVERNOR'S BUDGET BEGINNING BALANCE CURRENT REVENUES TOTAL AVAILABLE RESOURCES LESS: EXPENDITURES BALANCES CARRIED FORWARD $ $ 83,691,645 15,439,921,692 $ 15,523,613,337 (15,408,134,319) 115,479,018

GENERAL FUND REVENUES BY MAJOR SOURCE


2011-13 LEGISLATIVELY APPROVED $13,259,675,709 274,884,958 11,151,513 230,470,399 13,121,545 9,896,785 $ 13,799,200,911 % CHANGE (ACT/LAB) 13.5% 60.6% 36.4% 16.2% 166.4% -97.8% 10.2% 2013-15 GOVERNOR'S BUDGET $14,858,519,000 254,465,000 11,152,000 233,943,577 9,961,000 71,881,115 $ 15,439,921,692

2009-11 ACTUALS TAXES FINES AND FEES CHARGES FOR SERVICES SALES INCOME INTEREST EARNINGS OTHER TOTAL * $11,679,229,055 171,136,652 8,174,496 198,283,065 4,925,621 458,289,708 $ 12,520,038,597

% CHANGE (EST/GB) 12.1% -7.4% 0.0% 1.5% -24.1% 626.3% 11.9%

* Does not include beginning balance

2013-15 Governor's Balanced Budget

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Revenue

GENERAL FUND EXPENDITURE SUMMARIES


SUMMARY OF GENERAL FUND EXPENDITURES BY CATEGORY Description
2009-11 Actuals 2011-13 Leg Approved Budget
2,964,985,311 1,059,386,643 28,699,161 9,300,123,628 370,574,915 (3,473,239) $13,723,769,658

% Change (ACT/LAB)
19% -1% 70% 9% 27% -23% 10%

2013-15 Governor's Budget


2,784,841,863 1,112,559,114 16,620,469 11,111,622,898 382,489,975 (4,258,281) $15,408,134,319

% Change (LAB/GB)
-6% 5% -42% 19% 3% 23% 12%

Personal Services Services & Supplies Capital Outlay Special Payments Debt Service Capital Improvement * TOTAL

2,492,439,753 1,072,318,925 16,854,819 8,569,291,884 290,809,328 (4,488,469) $12,441,714,709

* For information only; amounts are included in appropriate categories above.

SUMMARY OF GENERAL FUND EXPENDITURES BY PROGRAM AREA Program Area


2009-11 Actuals 2011-13 Leg Approved Budget
6,754,274,431 3,864,119,240 1,952,886,516 25,101,190 130,829,429 2,000,010 11,068,996 201,844,149 82,693,021 589,588,527 109,364,149 $13,723,769,658

% Change (ACT/LAB)
5% 18% 10% -7% -7% -88% -6% 11% 17% 19% 100% 10%

2013-15 Governor's Budget


7,648,808,550 4,386,145,125 2,120,306,652 24,778,944 167,109,265 2,757,944 11,827,236 194,188,273 88,459,695 632,989,868 130,762,767 $15,408,134,319

% Change (LAB/GB)
13% 14% 9% -1% 28% 38% 7% -4% 7% 7% 20% 12%

Education Human Services Public Safety Economic & Community Development Natural Resources Transportation Consumer & Business Services Administration Legislative Branch * Judicial Branch * Miscellaneous Programs TOTAL

6,433,234,168 3,284,525,462 1,778,700,427 27,094,105 141,308,272 16,912,732 11,832,787 181,944,822 70,522,689 495,639,245 $12,441,714,709

* See agency narrative section for complete Agency Request information.

2013-15 Governor's Balanced Budget

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Revenue

Revenue LOTTERY FUNDS


Oregons Lottery proceeds are used in the education, economic and community development, transportation, natural resources, and public safety program areas. Lottery Funds make up 5.1 percent of the states General Fund and Lottery Funds expenditure budget. The Oregon Lottery collects revenues from traditional and video lottery gaming. It pays player prizes and its operating expenses out of these revenues. It then transfers the balance to the state. New state Lottery revenues for the biennium are forecast to be $1,048.8 million. The beginning balance is anticipated to be zero. Interest on the Education Stability Fund and carry forward revenue provide an additional $1.8 million and $9.9 million of resources, respectively. Total resources are expected to be $1,059.9 million for the 2013-15 biennium. Lottery Funds are transferred to the Administrative Services Economic Development Fund. That fund is distributed based on current law and legislative direction: Counties receive 2.5 percent of video poker proceeds. This is $37.4 million for 2011-13. The Department of Higher Education receives one percent of total transfers for sports programs. It uses the money for intercollegiate athletics and for non-athletic scholarships. The budget includes $10.5 million from this source. The Education Stability Fund receives 18 percent of total transfers. A total of $188.8 million is expected to be deposited in the Education Stability fund in 2011-13. Interest on the Education Stability Fund, except for the Oregon Growth Account portion of the Fund, is dedicated as follows: The Department of Education receives 75 percent of the interest earned. It will use this to pay debt service on education bonds. The Student Assistance Commission receives 25 percent. This will fund education grants. The Parks and Natural Resources Fund receive 15 percent of total transfers. This amounts to $157.3 million in 2011-13. The Oregon Constitution requires that half of this money be used for parks, ocean shore and public beach access, historic sites, and recreation areas. The other half must be used to help restore and protect wild salmon, watersheds, fish and wildlife habitat, and water quality. The Governors balanced budget uses the funds for projects in a number of state agencies. The Problem Gambling Treatment Fund receives one percent of total transfers. This amounts to $10.5 million in 2011-13. The Department of Administrative services receives money for distribution to county fairs. By law, this amount equals one percent of total transfers up to a cap specified by statute. The Governors balanced budget includes $3.9 million for this purpose.
N-5 Revenue

2013-15 Governor's Balanced Budget

Revenue
The rest of the Lottery Funds are available for allocation to agencies for Lottery bond debt service expenditures and other program purposes. The following chart shows how the states available Lottery resources have changed over time. It also shows how more of the available resources have been dedicated for various uses.

State Lottery Resources


($ Millions)
$1,600 Other Dedications Parks (15%) $1,400 Education (15 -18%) Debt Service $1,200 Discretionary Appropriations

$1,000

$800

$600

$400

$200

$0
85 -87 87-89 89 -91 91 -93 93 -95 95 -97 97-99 99 -01 01-03 03-05 05-07 07-09 09-11 11-13 Proj. 13 -15 Proj. 15-17 Proj. 17 -19 Proj. 19 -21 Proj.

This balanced budget reflects the dedicated Education Stability Fund, Parks and Natural Resources Fund, Problem Gambling Treatment, and County Fair expenditures. The Governor proposes to use the remaining Lottery funds for: The State School Fund. Debt service costs on outstanding and proposed bonds for education, transportation, economic development, and infrastructure activities. Economic development programs and agency operations.

The budget also gives carry forward expenditure limitation to some agencies. This lets them spend Lottery Funds they received in the previous biennium, but did not spend, for other projects. The following tables show the states Lottery Funds cash flow and each agencys Lottery Funds budget. Lottery expenditures are described in more detail in each agencys budget narrative.
2013-15 Governor's Balanced Budget N-6 Revenue

Revenue
LOTTERY FUNDS CASH FLOW SUMMARY
11/20/2012
2013-15 Governor's Balanced Budget 2

2011-13 Estimated Budget 1

ECONOMIC DEVELOPMENT FUND


RESOURCES Beginning Balance REVENUES Transfers from Lottery Net Proceeds Administrative Savings Other Revenues Interest Earnings Other Total Revenue TOTAL RESOURCES DISTRIBUTIONS / ALLOCATIONS Distribution of Video Revenues to Counties Distribution to Post Secondary Ed for Sports Programs Distribution to Education Stability Fund School Capital Matching Account Distribution to Parks and Natural Resources Fund Distribution for Gambling Addiction Allocation to State School Fund Debt Service Allocations Other Agency Allocations TOTAL DISTRIBUTIONS / ALLOCATIONS ENDING BALANCE
3

$333,528

$0

1,075,995,820 2,301,827

1,048,795,584 0 2,000,000

1,078,297,647 1,078,631,175.37 (36,416,780) (8,430,257) (193,679,248) 0 (161,399,373) (10,381,486) (364,536,568) (246,173,088) (57,614,377) (1,078,631,175.34) $0

1,050,795,584 1,050,795,584 (37,415,971) 0 (188,783,205) 0 (157,319,338) (10,487,956) (314,547,564) (259,431,969) (82,809,581) (1,050,795,584.00) $0

6 6

EDUCATION STABILITY FUND


(not including OGA or ORTDF) RESOURCES Beginning Balance Revenues Transfer from the Economic Development Fund Interest Earnings Total Revenue TOTAL RESOURCES DISTRIBUTIONS Interest Distributions State School Fund TOTAL DISTRIBUTIONS ENDING BALANCE
4

5,061,518
7

7,544,717 179,344,045 1,280,713 180,624,758 188,169,475

184,120,913 601,286 184,722,199 189,783,717

(601,286) (182,239,000) (182,840,286) $7,544,717

(1,280,713)

(1,280,713) $186,888,762

PARKS AND NATURAL RESOURCES FUND


RESOURCES Beginning Balance Revenues Transfer from the Economic Development Fund Interest Earnings Total Revenue TOTAL RESOURCES ALLOCATIONS ENDING BALANCE
5

$0 161,399,373

$0 157,319,338 0 157,319,338 (157,319,338) $0

161,399,373 (161,399,373) $0

1. The 2011-13 Estimated Budget is based on the December 2012 f orecast of 2011-13 resources. 2. The Governor's recommended budget is based on the Decembe f orecast of 2013-15 resources. 3. 2013-15 Beginning Balance is equal to 2011-13 ending balance since it is less than $37.5 M (see HB 5101). 4. Declared earnings on the non-Oregon Grow th Account portion of the Education Stability Fund are distributed. The Oregon Education Fund recieves 75 percent of the earnings to pay debt service on Education Lottery Bonds. The Student Assistance Commission recieves the remaining 25 percent. Not all the earnings distributions in the Oregon Education Fund w ill be used f or debt service in 2009-11 due to timing of payments. 5. Moneys f rom the Parks and Natural Resources Fund are continuously appropriated to the Parks and Recreation Department and the Oregon Watershed Enhancement Board. Agency expenditure limitation may include an amount related to carryf orw ard in the agencies that is not represented here.

6. As s um es that EDF does not exceeds 5% cap during biennium . Otherwis e this would trigger a divers ion to the School Capital Matching Subaccount. 7. Only transfers to the M ain ESF account - not the 5% to OGA

2013-15 Governor's Balanced Budget

N-7

Revenue

Revenue
2013-15 LOTTERY FUNDS ALLOCATIONS AND EXPENDITURES
New Lottery Funds Allocation Beginning Lottery Balance Interest and Other Earnings GBB Expenditure Limitation Ending Lottery Balance

ECONOMIC DEVELOPMENT FUND


DEBT SERVICE COMMITMENTS Department of Education Outstanding bonds Department of Post Secondary Education Outstanding bonds Business Development Department Outstanding bonds Housing and Community Services Dept. Outstanding bonds Department of Transportation Outstanding bonds Department of Administrative Services Outstanding bonds Community Colleges & Workforce Development Outstanding bonds Department of Forestry Outstanding bonds Department of Energy Outstanding bonds Water Resources Department Outstanding bonds Parks and Recreation Department Proposed bonds Department of Fish and Wildlife Proposed bonds OTHER ALLOCATIONS Department of Post Secondary Education Sports programs Department of Education State School Fund Department of Agriculture County Fairs Admin. DAS - Distribution to County Fairs Business Development Department Shared Services Business, Innovation, Trade Infrastructure Finance Authority Film and Video Office of the Governor Economic Revitalization Team Oregon Health Authority Gambling Addiction Treatment Parks and Recreation Oregon Exposition Center TOTAL ECONOMIC DEVELOPMENT FUND 0 314,547,564 18,354 3,931,144 5,880,627 65,634,298 1,153,616 2,358,947 10,487,956 3,832,595 $667,277,070 $6,464,731 $7,338 84,902 0 7,338 3,026 23,682 930,767 4,745,077 0 314,547,564 21,380 3,576,453 6,811,394 70,379,375 1,153,616 2,365,253 10,541,165 3,832,595 $673,338,041 0 0 0 378,373 0 0 0 0 78,596 (45,871) 0 411,098 41,689,533 28,471,580 56,294,272 9,996,643 95,169,421 8,888,175 9,769,293 3,316,986 3,434,606 1,622,331 536,453 242,676 307,162 17,107 147,983 13,956 91,995 81,950 10,301 3,010 3,118 695 0 0 0 0 0 0 0 0 0 0 0 41,996,695 28,488,687 56,442,255 10,010,599 95,261,416 8,970,125 9,779,594 3,319,996 3,437,724 1,623,026 536,453 242,676 0 0 0 0 0 0 0 0 0 0 0 0

EDUCATION STABILITY FUND / OREGON EDUCATION FUND


Department of Post Secondary Education Opportunity Grant Department of Education Education bonds outstanding TOTAL EDUCATION STABILITY/OREGON EDUCATION FU 320,178 960,535 $1,280,713 270,733 263,938 $534,671 0 0 $0 320,178 460,890 $781,068 270,733 763,583 $1,034,316

PARKS & NATURAL RESOURCES FUND


Oregon Watershed Enhancement Board Capital and Operations Department of Agriculture Capital and Operations Department of Environmental Quality Capital and Operations Department of Fish and Wildlife Capital and Operations State Police Capital and Operations State Parks and Recreation Dept. Debt Service Capital and Operations TOTAL PARKS & NATURAL RESOURCES FUND GRAND TOTAL 59,918,410 5,517,653 3,710,822 4,441,297 5,071,487 3,955,962 74,703,707 $157,319,338 $825,877,121 0 281,205 239,074 438,632 112,677 14,008 15,682,676 $16,768,272 $23,767,674 420,000 0 0 0 0 0 142,622 $562,622 $569,960 58,189,608 5,798,858 3,899,218 4,767,766 4,924,882 3,969,970 79,816,559 $161,366,861 $835,485,970 2,148,802 0 50,678 112,163 259,282 0 10,712,446 13,283,371 14,728,785

2013-15 Governor's Balanced Budget

N-8

Revenue

LOTTERY FUNDS CASH FLOW SUMMARY


2013-15 Governor's Balanced 2 Budget

2011-13 Estimated Budget 1

ECONOMIC DEVELOPMENT FUND


RESOURCES Beginning Balance REVENUES Transfers from Lottery Net Proceeds Administrative Savings Other Revenues Interest Earnings Other Total Revenue TOTAL RESOURCES DISTRIBUTIONS / ALLOCATIONS Distribution of Video Revenues to Counties Distribution to Post Secondary Ed for Sports Programs Distribution to Education Stability Fund School Capital Matching Account Distribution to Parks and Natural Resources Fund Distribution for Gambling Addiction Allocation to State School Fund Debt Service Allocations Other Agency Allocations TOTAL DISTRIBUTIONS / ALLOCATIONS ENDING BALANCE
3

$333,528

$0

1,075,995,820 2,301,827

1,048,795,584 0 2,000,000

1,078,297,647 1,078,631,175.37

1,050,795,584 1,050,795,584

6 6

(36,416,780) (8,430,257) (193,679,248) 0 (161,399,373) (10,381,486) (364,536,568) (246,173,088) (57,614,377) (1,078,631,175.34) $0

(37,415,971) 0 (188,783,205) 0 (157,319,338) (10,487,956) (314,547,564) (259,431,969) (82,809,581) (1,050,795,584.00) $0

EDUCATION STABILITY FUND


(not including OGA or ORTDF) RESOURCES Beginning Balance Revenues R Transfer from the Economic Development Fund Interest Earnings Total Revenue TOTAL RESOURCES DISTRIBUTIONS Interest Distributions State School Fund TOTAL DISTRIBUTIONS ENDING BALANCE
4

5,061,518
7

7,544,717 179,344,045 1,280,713 180,624,758 188,169,475

184,120,913 601,286 184,722,199 189,783,717

(601,286) (182,239,000) (182,840,286) $7,544,717

(1,280,713)

(1,280,713) $186,888,762

PARKS AND NATURAL RESOURCES FUND


RESOURCES Beginning Balance Revenues Transfer from the Economic Development Fund Interest Earnings Total Revenue TOTAL RESOURCES ALLOCATIONS ENDING BALANCE
5

$0 161,399,373

$0 157,319,338 0

161,399,373 (161,399,373) $0

157,319,338 (157,319,338) $0

1. The 2011-13 Estimated Budget is based on the December 2012 forecast of 2011-13 resources. 2. The Governor's recommended budget is based on the December forecast of 2013-15 resources. 3. 2013-15 Beginning Balance is equal to 2011-13 ending balance since it is less than $37.5 M (see HB 5101). 4. Declared earnings on the non-Oregon Growth Account portion of the Education Stability Fund are distributed. The Oregon Education Fund receives 75 percent of the earnings to pay debt service on Education Lottery Bonds. The Student Assistance Commission receives the remaining 25 percent. Not all the earnings distributions in the Oregon Education Fund will be used for debt service in 2009-11 due to timing of payments. 5. Moneys from the Parks and Natural Resources Fund are continuously appropriated to the Parks and Recreation Department and the Oregon Watershed Enhancement Board. Agency expenditure limitation may include an amount related to carryforward in the agencies that is not represented here.

6. Assumes that EDF does not exceeds 5% cap during biennium. Otherwise this would trigger a diversion to the School Capital Matching Subaccount. 7. Only transfers to the Main ESF account - not the 5% to OGA

2013-15 Governor's Balanced Budget

N-9

Revenue

2013-15 LOTTERY FUNDS ALLOCATIONS AND EXPENDITURES


New Lottery Funds Allocation Beginning Lottery Balance Interest and Other Earnings GBB Expenditure Limitation Ending Lottery Balance

ECONOMIC DEVELOPMENT FUND


DEBT SERVICE COMMITMENTS Department of Education Outstanding bonds Department of Post Secondary Education Outstanding bonds Business Development Department Outstanding bonds Housing and Community Services Dept. Outstanding bonds Department of Transportation Outstanding bonds Department of Administrative Services Outstanding bonds Community Colleges & Workforce Development Outstanding bonds Department of Forestry Outstanding bonds Department of Energy Outstanding bonds Water Resources Department Outstanding bonds Parks and Recreation Department Proposed bonds Department of Fish and Wildlife Proposed bonds OTHER ALLOCATIONS Department of Post Secondary Education Sports programs Department of Education State School Fund Department of Agriculture County Fairs Admin Admin. DAS - Distribution to County Fairs Business Development Department Shared Services Business, Innovation, Trade Infrastructure Finance Authority Film and Video Office of the Governor Economic Revitalization Team Oregon Health Authority Gambling Addiction Treatment Parks and Recreation Oregon Exposition Center TOTAL ECONOMIC DEVELOPMENT FUND 0 314,547,564 18,354 18 354 3,931,144 5,880,627 65,634,298 1,153,616 2,358,947 10,487,956 3,832,595 $667,277,070 $6,464,731 $7,338 84,902 0 7,338 3,026 3 026 23,682 930,767 4,745,077 0 314,547,564 21,380 21 380 3,576,453 6,811,394 70,379,375 1,153,616 2,365,253 10,541,165 3,832,595 $673,338,041 0 0 0 378,373 0 0 0 0 78,596 (45,871) 0 $411,098 41,689,533 28,471,580 56,294,272 9,996,643 95,169,421 8,888,175 9,769,293 3,316,986 3,434,606 1,622,331 536,453 242,676 307,162 17,107 147,983 13,956 91,995 81,950 10,301 3,010 3,118 695 0 0 0 0 0 0 0 0 0 0 0 41,996,695 28,488,687 56,442,255 10,010,599 95,261,416 8,970,125 9,779,594 3,319,996 3,437,724 1,623,026 536,453 242,676 0 0 0 0 0 0 0 0 0 0 0 0

EDUCATION STABILITY FUND / OREGON EDUCATION FUND


Department of Post Secondary Education Opportunity Grant Department of Education Education bonds outstanding TOTAL EDUCATION STABILITY/OREGON EDUCATION FUND 320,178 960,535 $1,280,713 270,733 263,938 $534,671 0 0 $0 320,178 460,890 $781,068 270,733 763,583 $1,034,316

PARKS & NATURAL RESOURCES FUND


Oregon Watershed Enhancement Board Capital and Operations Department of Agriculture Capital and Operations Department of Environmental Quality Capital and Operations Department of Fish and Wildlife Capital and Operations State Police Capital and Operations State Parks and Recreation Dept. Debt Service Capital and Operations TOTAL PARKS & NATURAL RESOURCES FUND GRAND TOTAL 59,918,410 5,517,653 3,710,822 4,441,297 5,071,487 3,955,962 74,703,707 $157,319,338 $825,877,121 0 281,205 239,074 438,632 112,677 14,008 15,682,676 $16,768,272 $23,767,674 420,000 0 0 0 0 0 142,622 $562,622 $569,960 58,189,608 5,798,858 3,899,218 4,767,766 4,924,882 3,969,970 79,816,559 $161,366,861 $835,485,970 2,148,802 0 50,678 112,163 259,282 0 10,712,446 $13,283,371 $14,728,785

2013-15 Governor's Balanced Budget

N-10

Revenue

COMBINED GENERAL FUND AND LOTTERY FUNDS SUMMARY


2013-15 CURRENT LAW
GENERAL $ $15,412,038,000 $ 15,495,729,645 $ 850,214,755 $ 16,345,944,400 $ 15,523,613,337 $ $826,447,081 16,238,485,081 $15,439,921,692 826,447,081 850,214,755 83,691,645 $23,767,674 $ 107,459,319 $ 83,691,645 $23,767,674 $ LOTTERY TOTAL GENERAL LOTTERY

2013-15 GOVERNOR'S BUDGET


TOTAL 107,459,319 16,266,368,773 $ 16,373,828,092

BEGINNING CASH BALANCES

AVAILABLE REVENUES *

2013-15 Governor's Balanced Budget


(15,408,134,319) $ 87,595,326 $ 14,728,785 $ 102,324,111 $ 115,479,018 (835,485,970) (16,243,620,289) (15,408,134,319) $ (835,485,970) 14,728,785 $ (16,243,620,289) 130,207,803 $ 27,883,692 $ 27,883,692

TOTAL RESOURCES

LESS EXPENDITURES

PROJECTED CASH BALANCE

NET CHANGE IN PROJECTED ENDING BALANCE

N-11

* Available Lottery revenue includes interest on the Education Stability Fund and agency carry forwards but it does not include video lottery transfers to counties or the Education Stability Fund.

Revenue

NON-GENERAL FUND SUMMARIES


CASH BALANCES
2013-15 GOVERNOR'S BUDGET BEGINNING BALANCES CURRENT REVENUES TOTAL RESOURCES AVAILABLE $ 69,439,762,066 52,474,512,680 $ 121,914,274,746

LESS:

TRANSFERS TO OTHER GOVERNMENTS EXPENDITURES **

(2,074,137,093) (42,659,917,532)

BALANCES CARRIED FORWARD

$ 77,180,220,121

NON-GENERAL FUND REVENUES BY MAJOR SOURCE

2009-11 ACTUALS

2011-13 LEGISLATIVELY APPROVED

% CHANGE (ACT/LAB)

2013-15 GOVERNOR'S BUDGET

% CHANGE (LAB/GB)

TAXES FEDERAL FUNDS FEDERAL FUNDS AS OTHER FUNDS DONATIONS AND CONTRIBUTIONS OTHER BOND SALES INTEREST EARNINGS LIQUOR AND OTHER SALES INCOME LOAN REPAYMENTS LOTTERY DISTRIBUTIONS CHARGES FOR SERVICES LICENSES AND FEES

5,148,466,049 16,694,880,639 2,206,034,172 2,787,788,771 2,309,608,861 2,476,269,285 8,322,611,079 454,868,258 641,457,045 1,085,274,805 5,130,551,126 1,283,288,887

6,275,188,407 15,241,256,064 1,858,582,015 3,579,393,749 2,155,321,769 1,689,236,069 7,733,653,929 499,480,422 484,993,564 1,128,295,553 5,668,438,061 1,355,405,680

21.9% -8.7% -15.8% 28.4% -6.7% -31.8% -7.1% 9.8% -24.4% 4.0% 10.5% 5.6%

6,242,850,544 17,725,102,301 754,039,610 2,445,494,798 2,049,925,912 2,295,523,932 13,739,809,116 532,734,724 494,438,240 1,048,795,584 3,805,074,868 1,340,723,051

-0.5% 16.3% -59.4% -31.7% -4.9% 35.9% 77.7% 6.7% 1.9% -7.0% -32.9% -1.1%

TOTAL *

$ 48,541,098,977

$ 47,669,245,282

-1.8%

$ 52,474,512,680

10.1%

* Does not include beginning balance. ** Excludes Non-Add expenditures.

2013-15 Governor's Balanced Budget

N-12

Revenue

NON-GENERAL FUND EXPENDITURE SUMMARIES


SUMMARY OF NON-GENERAL FUND EXPENDITURES BY CATEGORY Description
2009-11 Actuals 2011-13 Leg Approved Budget
5,548,499,346 5,384,838,455 799,275,309 29,412,446,933 2,265,027,229 (19,928,880,672) (66,780,031) (497,705,659) $43,410,087,272

% Change (ACT/LAB)
7% 12% -17% -2% -19% -7% 111% -53% -1%

2013-15 Governor's Budget


3,564,663,514 4,387,448,927 352,326,185 32,511,695,869 1,843,783,037 (17,961,800,571) (23,695,253) (153,412,695) $42,659,917,532

% Change (LAB/GB)
-36% -19% -56% 11% -19% -10% -65% -69% -2%

Personal Services Services & Supplies Capital Outlay Special Payments Debt Service Nonlimited Budget * Capital Improvement Capital Construction TOTAL ** *

5,170,569,892 4,817,489,659 965,690,851 30,077,909,205 2,789,078,914 (21,514,351,368) (31,682,076) (1,057,679,940) $43,820,738,521

Expenditures not limited by statute; included for informational purposes only.

** Excludes Non-Add expenditures. ( ) Special reporting classifications; amounts are included in appropriate expenditure categories above.

SUMMARY OF NON-GENERAL FUND EXPENDITURES BY PROGRAM AREA Program Area


2009-11 Actuals 2011-13 Leg Approved Budget
6,837,198,864 15,320,125,466 883,021,876 5,519,214,038 1,630,986,104 3,832,623,717 605,823,773 8,713,402,422 7,165,514 60,525,498 $43,410,087,272

% Change (ACT/LAB)
-7% 13% -18% -31% 18% -0% 4% 9% -14% -36% -1%

2013-15 Governor's Budget


2,130,920,588 19,110,565,329 884,604,821 3,600,924,814 1,592,823,546 4,085,402,611 623,090,062 10,542,414,923 5,792,440 83,378,398 $42,659,917,532

% Change (LAB/GB)
-69% 25% 0% -35% -2% 7% 3% 21% -19% 38% -2%

Education Human Services Public Safety Economic & Community Development Natural Resources Transportation Consumer & Business Services Administration Legislative Branch * Judicial Branch * TOTAL ** *

7,360,809,106 13,524,107,200 1,078,377,063 7,960,347,916 1,376,943,152 3,845,231,273 581,327,406 7,991,135,901 8,310,724 94,148,780 $43,820,738,521

See agency narrative section for complete Agency Request information.

** Excludes Non-Add expenditures.

2013-15 Governor's Balanced Budget

N-13

Revenue

SCHEDULE II OTHER FUNDS AND LOTTERY FUNDS REVENUE BY SOURCE


2009-11 ACTUALS TAXES SELECTIVE SALES AND USE TAXES Tobacco Taxes Motor Fuels Taxes Weight-Mile Taxes Privilege Taxes Other Selective Sales and Use Taxes Subtotal GROSS RECEIPTS BUSINESS TAXES Other Gross Receipts Business Taxes Amusement Taxes Public Utilities Taxes Insurance Taxes Subtotal EMPLOYER-EMPLOYEE TAXES Employment Taxes Workers' Compensation Insurance Taxes Other Employer-Employee Taxes Subtotal SEVERANCE TAXES Eastern Oregon Severance Taxes Western Oregon Severance Taxes Other Severance Taxes Subtotal OTHER TAXES Forest Protection Taxes Other Taxes Subtotal TOTAL TAXES LICENSES AND FEES BUSINESS LICENSES AND FEES NONBUSINESS LICENSES AND FEES Park User Fees Vehicle Licenses Drivers Licenses Transportation Licenses and Fees Hunter and Angler Licenses Other Nonbusiness Licenses and Fees State Court Fees Subtotal TOTAL LICENSES AND FEES FEDERAL FUNDS AS OTHER FUNDS $ $ $ 301,830,787 $ 318,337,041 $ 318,814,150 $ 2011-13 LEGISLATIVELY APPROVED 2013-15 GOVERNOR'S BUDGET

375,581,575 886,844,384 454,146,776 32,957,892 443,881,122 2,193,411,749

374,205,000 1,105,858,226 610,756,359 27,557,520 970,017,165 3,088,394,270

350,577,774 1,066,193,226 593,105,782 26,303,120 956,610,764 2,992,790,666

3,156,554 3,656,178 152,750,305 72,758,115 232,321,152

3,500,000 3,280,000 150,960,666 103,295,285 261,035,951

3,500,000 3,280,000 161,896,076 27,696,980 196,373,056

1,797,952,157 62,043,193 608,779,277 2,468,774,627

2,020,663,852 104,637,732 620,621,938 2,745,923,522

2,118,539,128 112,638,003 626,626,351 2,857,803,482

14,590 522,199 536,789

562,400 237,000 799,400

562,400 237,000 799,400

27,726,216 225,695,516 253,421,732 5,148,466,049 $

27,519,148 151,516,116 179,035,264 6,275,188,407 $

43,567,824 151,516,116 195,083,940 6,242,850,544

38,210,970 517,673,388 63,913,322 79,609,243 96,012,437 141,290,678 44,748,062 981,458,100 1,283,288,887 2,206,034,172 $ $

42,810,388 604,702,401 71,882,076 96,613,799 110,237,474 94,499,358 16,323,143 1,037,068,639 1,355,405,680 1,858,582,015 $ $

42,026,683 577,929,662 77,763,237 121,129,257 106,950,649 90,542,341 5,567,072 1,021,908,901 1,340,723,051 754,039,610

2013-15 Governor's Balanced Budget

N-14

Revenue

SCHEDULE II OTHER FUNDS AND LOTTERY FUNDS REVENUE BY SOURCE


2009-11 ACTUALS OTHER REVENUES CHARGES FOR SERVICES Tuition and Fees -- Higher Education Fee Remissions -- Higher Education Aux. Enterprise and Service Fees -- Higher Ed. Sales and Service Fees -- Higher Education Other Charges for Services Subtotal FINES, RENTS, AND ROYALTIES Fines and Forfeitures Rents and Royalties Subtotal BOND SALES General Fund Obligation Bonds Dedicated Fund Obligation Bonds Lottery Bonds Certificates of Participation Revenue Bonds Refunding Bonds Subtotal INTEREST EARNINGS Interest Income SALES INCOME Liquor Sales Pari-mutual Receipts State Forest Lands Common School Land Other Sales Income Subtotal DONATIONS AND CONTRIBUTIONS Donations and Grants (Non-Fed) Retirement System Contribution Subtotal LOAN REPAYMENTS Housing Division Loan Repayment Senior Citizen Property Tax Repayments Veterans' Loan Repayments Other Loan Repayments Loan Proceeds Subtotal LOTTERY DISTRIBUTIONS OTHER REVENUES TOTAL OTHER FUNDS AND LOTTERY FUNDS REVENUE 2011-13 LEGISLATIVELY APPROVED 2013-15 GOVERNOR'S BUDGET

1,741,080,821 (123,013,899) 492,801,356 319,915,434 2,699,767,414 5,130,551,126

2,135,524,731 (168,547,863) 547,065,787 328,699,340 2,825,696,066 5,668,438,061

3,805,074,868 3,805,074,868

163,360,361 136,805,044 300,165,405

174,557,718 98,572,546 273,130,264

158,557,598 115,837,844 274,395,442

382,255,806 364,967,470 186,899,106 278,331,939 1,022,270,645 241,544,319 2,476,269,285

38,766,592 372,846,501 183,614,369 116,669,811 908,031,774 69,307,022 1,689,236,069

225,708,294 237,557,513 140,533,450 132,002,901 1,559,721,774 2,295,523,932

8,322,611,079

7,733,653,929

13,739,809,116

247,643,460 3,258,980 135,334,092 18,950,331 49,681,395 454,868,258

282,380,931 3,009,800 121,258,234 38,494,000 54,337,457 499,480,422

325,973,813 3,347,965 137,278,242 38,582,000 27,552,704 532,734,724

530,608,055 2,257,180,716 2,787,788,771

505,213,949 3,074,179,800 3,579,393,749

35,214,798 2,410,280,000 2,445,494,798

225,747,024 31,574,599 78,377,015 259,695,209 46,063,198 641,457,045 1,085,274,805 2,009,443,456 $ 31,846,218,338

213,664,618 38,497,653 75,000,000 151,396,684 6,434,609 484,993,564 1,128,295,553 1,882,191,505 $ 32,427,989,218

222,176,258 38,497,653 75,000,000 158,764,329 494,438,240 1,048,795,584 1,775,530,470 $ 34,749,410,379

2013-15 Governor's Balanced Budget

N-15

Revenue

SCHEDULE III
RECEIPTS FROM THE FEDERAL GOVERNMENT 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

EDUCATION Community Coll & Workforce Dvlpmnt, Dept of Department of Post-Secondary Education Education, Dept of Oregon University System Student Access Comm, Oregon Teacher Standards & Practices Comm EDUCATION TOTAL HUMAN SERVICES Blind Commission Children and Families, State Comm on Human Services, Dept. of Oregon Health Authority HUMAN SERVICES TOTAL PUBLIC SAFETY Corrections, Dept of Criminal Justice Comm, Oregon Justice, Dept of Military Dept, Oregon Oregon Youth Authority Police, Dept of State Public Safety Standards & Training, Dept of PUBLIC SAFETY TOTAL ECONOMIC & COMMUNITY DEVELOPMENT Employment Dept Housing & Community Svcs Dept Oregon Business Development Department Veterans' Affairs, Oregon Dept of ECONOMIC & COMMUNITY DEVELOPMENT TOTAL NATURAL RESOURCES Agriculture, Oregon Dept of Energy, Dept of Environmental Quality, Dept of 9,691,046 28,793,085 33,364,582 11,944,869 37,344,226 30,728,115 15,229,906 3,529,624 28,140,159 3,332,073,829 377,058,594 28,928,116 1,970,508 $3,740,031,047 1,296,595,387 312,269,422 49,851,900 19,362,748 $1,678,079,457 266,568,665 262,948,724 39,172,021 $568,689,410 115,577,439 26,109,524 119,338,774 207,961,728 28,624,903 6,364,060 52,524 $504,028,952 9,030,525 14,495,121 122,310,521 288,377,938 31,107,232 9,029,468 57,513 $474,408,318 8,179,236 3,611,269 154,908,400 282,109,769 36,702,391 9,228,807 58,893 $494,798,765 10,695,664 3,033,487 5,702,084,466 4,470,433,387 $10,186,247,004 11,561,430 789,045 5,806,504,097 5,137,512,031 $10,956,366,603 10,873,067 6,178,420,487 8,253,437,423 $14,442,730,977 160,275,047 1,656,156,840 70,823,654 917,968 $1,888,173,509 136,278,415 1,202,983,186 4,922,075 85,455 $1,344,269,131 127,059,427 1,349,353,518 35,000 $1,476,447,945

2013-15 Governor's Balanced Budget

N-16

Revenue

SCHEDULE III
RECEIPTS FROM THE FEDERAL GOVERNMENT 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

NATURAL RESOURCES Fish & Wildlife, Oregon Dept of Forestry, Dept of Geology & Mineral Industries, Dept of Land Conservation & Development, Dept of Lands, Dept of State Marine Board, Oregon State Parks & Recreation Dept Water Resources Dept Watershed Enhancement Board, Oregon NATURAL RESOURCES TOTAL TRANSPORTATION Aviation, Dept of Transportation, Oregon Dept of TRANSPORTATION TOTAL CONSUMER & BUSINESS SERVICES Consumer and Business Svcs, Dept of Labor & Industries, Bureau of Public Utility Commission CONSUMER & BUSINESS SERVICES TOTAL ADMINISTRATION Administrative Svcs, Dept of Governor, Office of the Secretary of State State Library ADMINISTRATION TOTAL JUDICIAL BRANCH Judicial Dept JUDICIAL BRANCH TOTAL 1,156,901 $1,156,901 1,047,391 $1,047,391 1,490,080 $1,490,080 47,000 2,398,533 8,898,824 $11,344,357 323,765,351 4,189,590 664,419 4,888,461 $333,507,821 331,535,719 3,006,348 4,753,167 $339,295,234 610,545 1,202,560 2,222,486 $4,035,591 3,190,140 1,377,200 4,837,604 $9,404,944 1,606,737 1,565,000 2,426,526 $5,598,263 3,699,521 116,227,171 $119,926,692 3,508,055 120,466,726 $123,974,781 4,774,000 120,744,699 $125,518,699 95,787,941 27,068,504 3,492,614 4,913,604 3,473,176 6,188,391 8,639,850 646,093 20,911,187 $242,970,073 109,934,486 44,278,675 5,268,289 5,607,861 6,735,966 6,683,513 15,785,886 1,195,501 45,479,276 $320,986,663 128,970,207 31,352,528 4,314,582 6,100,788 1,437,082 7,444,986 9,987,264 1,277,040 32,748,762 $270,532,928

NET FEDERAL GOVERNMENT RECEIPTS

$16,697,914,126

$15,242,045,109

$17,725,102,301

2013-15 Governor's Balanced Budget

N-17

Revenue

SCHEDULE III
FEDERAL FUNDS AS OTHER FUNDS 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

EDUCATION Education, Dept of Oregon University System EDUCATION TOTAL PUBLIC SAFETY Corrections, Dept of Military Dept, Oregon PUBLIC SAFETY TOTAL ECONOMIC & COMMUNITY DEVELOPMENT Employment Dept ECONOMIC & COMMUNITY DEVELOPMENT TOTAL NATURAL RESOURCES Agriculture, Oregon Dept of Energy, Dept of Environmental Quality, Dept of Fish & Wildlife, Oregon Dept of Geology & Mineral Industries, Dept of Lands, Dept of State Water Resources Dept NATURAL RESOURCES TOTAL TRANSPORTATION Transportation, Oregon Dept of TRANSPORTATION TOTAL CONSUMER & BUSINESS SERVICES Consumer and Business Svcs, Dept of Public Utility Commission CONSUMER & BUSINESS SERVICES TOTAL 15,084,501 61,979 $15,146,480 13,402,447 36,549 $13,438,996 14,047,311 36,549 $14,083,860 1,256,146,781 $1,256,146,781 879,089,339 $879,089,339 670,770,244 $670,770,244 2,900,984 74,086,588 17,215,406 351,491 115,509 108,978 $94,778,956 4,174,606 1,032,169 33,562,148 20,378,046 423,396 $59,570,365 4,632,779 655,600 33,402,847 20,000,000 423,396 $59,114,622 1,393,072 $1,393,072 788,031 $788,031 296,200 1,549,379 $1,845,579 509,982 2,387,967 $2,897,949 108,800 2,264,963 $2,373,763 4,913,081 832,832,280 $837,745,361 5,134,715 897,057,579 $902,192,294 6,909,090 $6,909,090

2013-15 Governor's Balanced Budget

N-18

Revenue

SCHEDULE III
FEDERAL FUNDS AS OTHER FUNDS 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

JUDICIAL BRANCH Judicial Dept JUDICIAL BRANCH TOTAL 371,015 $371,015 -

NET RECEIPTS

$2,206,034,172

$1,858,582,015

$754,039,610

Note: Federal Funds as Other Funds are shown separately for informational purposes. Total Federal Funds as Other Funds are included as Other Funds on Schedule II.

2013-15 Governor's Balanced Budget

N-19

Revenue

ALL FUNDS SUMMARY


CASH BALANCES
2013-15 GOVERNOR'S BUDGET BEGINNING BALANCES CURRENT REVENUES: GENERAL FUND OTHER AND LOTTERY FUNDS FEDERAL FUNDS SUBTOTAL TOTAL RESOURCES AVAILABLE LESS: TRANSFERS TO OTHER GOVERNMENTS OTHER AND LOTTERY FUNDS FEDERAL FUNDS SUBTOTAL EXPENDITURES ** GENERAL FUND LOTTERY FUNDS OTHER FUNDS FEDERAL FUNDS SUBTOTAL BALANCES CARRIED FORWARD $ $ 69,523,453,711

15,439,921,692 34,749,410,379 17,725,102,301 67,914,434,372 $ 137,437,888,083

(1,742,601,374) (331,535,719) (2,074,137,093)

(15,408,134,319) (835,485,970) (24,581,663,869) (17,242,767,693) (58,068,051,851) 77,295,699,139

REVENUES BY MAJOR SOURCE


2011-13 LEGISLATIVELY APPROVED $ 19,534,864,116 15,241,256,064 1,858,582,015 3,579,393,749 2,165,218,554 1,689,236,069 7,746,775,474 729,950,821 484,993,564 1,128,295,553 5,679,589,574 1,630,290,638 $ 61,468,446,193 % CHANGE (ACT/LAB) 16.1% -8.7% -15.8% 28.4% -21.8% -31.8% -7.0% 11.8% -24.4% 4.0% 10.5% 12.1% 0.7% $ 2013-15 GOVERNOR'S BUDGET $21,101,369,544 17,725,102,301 754,039,610 2,445,494,798 2,121,807,027 2,295,523,932 13,749,770,116 766,678,301 494,438,240 1,048,795,584 3,816,226,868 1,595,188,051 67,914,434,372

TAXES FEDERAL FUNDS FEDERAL FUNDS AS OTHER FUNDS DONATIONS AND CONTRIBUTIONS OTHER BOND SALES INTEREST EARNINGS LIQUOR AND OTHER SALES INCOME LOAN REPAYMENTS LOTTERY DISTRIBUTIONS CHARGES FOR SERVICES LICENSES, FINES AND FEES TOTAL *

2009-11 ACTUALS $ 16,827,695,104 16,694,880,639 2,206,034,172 2,787,788,771 2,767,898,569 2,476,269,285 8,327,536,700 653,151,323 641,457,045 1,085,274,805 5,138,725,622 1,454,425,539 $ 61,061,137,574

% CHANGE (EST/GB) 8.0% 16.3% -59.4% -31.7% -2.0% 35.9% 77.5% 5.0% 1.9% -7.0% -32.8% -2.2% 10.5%

* Does not include beginning balance. ** Excludes Non-Add expenditures.

2013-15 Governor's Balanced Budget

N-20

Revenue

ALL FUNDS SUMMARY


EXPENDITURES BY CATEGORY Description
2009-11 Actuals 2011-13 Leg Approved Budget
8,513,484,657 6,444,225,098 827,974,470 38,712,570,561 2,635,602,144 (19,928,880,672) (70,253,270) (497,705,659) $57,133,856,930

% Change (ACT/LAB)
11% 9% -16% 0% -14% -7% 94% -53% 2%

2013-15 Governor's Budget


6,349,505,377 5,500,008,041 368,946,654 43,623,318,767 2,226,273,012 (17,961,800,571) (27,953,534) (153,412,695) $58,068,051,851

% Change (LAB/GB)

Personal Services Services & Supplies Capital Outlay Special Payments Debt Service Nonlimited Budget * Capital Improvement Capital Construction TOTAL **

7,663,009,645 5,889,808,584 982,545,670 38,647,201,089 3,079,888,242 (21,514,351,368) (36,170,545) (1,057,679,940) $56,262,453,230

-25% -15% -55% 13% -16% -10% -60% -69% 2%

* Expenditures not limited by statute; included for informational purposes only. ** Excludes Non-Add expenditures. ( ) Special reporting classifications; amounts are included in appropriate expenditure categories above.

EXPENDITURES BY PROGRAM AREA Program Area


2009-11 Actuals 2011-13 Leg Approved Budget
13,591,473,295 19,184,244,706 2,835,908,392 5,544,315,228 1,761,815,533 3,834,623,727 616,892,769 8,915,246,571 89,858,535 650,114,025 109,364,149 $57,133,856,930

% Change (ACT/LAB)
-1% 14% -1% -31% 16% -1% 4% 9% 14% 10% 100% 2%

2013-15 Governor's Budget


9,779,729,138 23,496,710,454 3,004,911,473 3,625,703,758 1,759,932,811 4,088,160,555 634,917,298 10,736,603,196 94,252,135 716,368,266 130,762,767 $58,068,051,851

% Change (LAB/GB)

Education Human Services Public Safety Economic & Community Development Natural Resources Transportation Consumer & Business Services Administration Legislative Branch * Judicial Branch * Miscellaneous Programs TOTAL **

13,794,043,274 16,808,632,662 2,857,077,490 7,987,442,021 1,518,251,424 3,862,144,005 593,160,193 8,173,080,723 78,833,413 589,788,025 $56,262,453,230

-28% 22% 6% -35% -0% 7% 3% 20% 5% 10% 20% 2%

* See agency narrative section for complete Agency Request information. ** Excludes Non-Add expenditures.

2013-15 Governor's Balanced Budget

N-21

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Community Coll & Workforce Dvlpmnt, Dept of Beginning Balance Other Funds Beginning Balance Adjustment Lottery Funds Other Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Charges for Services Admin and Service Charges General Fund Obligation Bonds Lottery Bonds Revenue Bonds Interest Income Donations Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds

1,611,779 444,669,579

1,487,407 66,393 (441,483) 418,489,968

893,100 (893,100) -

187,291 843,154 840 57,455,000 13,700,000 46,230 3,234,861 128,330 58,418,123 160,350,018

795,480 10,014,864 200,000 175,000 961,974 136,578,415

8,332,543 5,716,808 (73,698) (2,168,191) (74,971) 752,377,696

7,077,687 4,373,951 (300,000) 579,479,656

444,663,139 8,307,548

418,489,968 7,144,080

2013-15 Governor's Balanced Budget

N-22

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Community Coll & Workforce Dvlpmnt, Dept of All Expenditures Other Funds Federal Funds Total Expenditures

137,636,049 158,865,478 749,472,214

16,674,093 136,278,415 578,586,556

Reversions Ending Balance Lottery Funds Other Funds Federal Funds Department of Post-Secondary Education Beginning Balance Adjustment Lottery Funds Other Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Business Lic and Fees Charges for Services Admin and Service Charges Interest Income Donations Other Revenues Federal Funds Transfers In Lottery Funds

(6,440)

138,588 1,350,885 1,409,569

893,100 -

298,141 6,645,705 1,361,783,209

48,549 1,233,436 2,073,444 1,562,076 81,636 15,621,297 1,238,701 127,329,427

38,561,051

2013-15 Governor's Balanced Budget

N-23

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Department of Post-Secondary Education Transfers In Other Funds Transfers Out Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures Ending Balance Lottery Funds Other Funds Education, Dept of Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Lottery Funds Interest Income

37,927,736 (942,016) (270,000) 1,593,192,392

1,361,783,209 38,588,459 59,768,192 127,059,427 1,587,199,287

270,733 5,722,372

74,000 15,108,179 379,007 5,115,903,082

(3,148,747) 13,449,125 379,007 7,814,378 5,501,587,079

4,857,461 17,887,479 25,627,416 (4,286,361) (1,083,838) 477,685 6,279,776,509

814,224

509,719

2013-15 Governor's Balanced Budget

N-24

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Education, Dept of Other Funds Revenues Business Lic and Fees Charges for Services Admin and Service Charges Rents and Royalties Refunding Bonds Cert of Participation Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

664,017 5,859,905 191,153 1,351,778 3,351,634 85,501 2,399,403 10,596,341 1,661,069,921

1,054,216 8,681,742 2,326,740 130,000 65,000 36,493,067 1,208,659,299

1,509,791 7,758,739 55,915 310,846 16,000,000 348,719 28,868 2,680,685 19,412,993 1,356,262,608

663,548,622 188,098,807 (81,999) (37,099,188) (4,913,081) 7,627,401,306

607,843,345 132,039,155 (6,046,860) (5,676,113) 7,506,160,152

356,697,987 176,923,114 (8,408,400) (6,909,090) 8,245,929,126

5,094,144,402 664,354,241 163,648,602 1,626,839,674 7,548,986,919

5,501,587,079 608,161,234 170,304,706 1,177,734,777 7,457,787,796

6,279,776,509 357,005,149 205,823,189 1,337,689,731 8,180,294,578

2013-15 Governor's Balanced Budget

N-25

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Education, Dept of

Reversions Ending Balance Lottery Funds Other Funds Federal Funds Oregon Education Investment Board

(21,758,680)

606 26,958,928 29,696,173

4,857,461 17,887,479 25,627,416

263,938 27,601,722 37,768,888

General Fund Appropriation

7,248,832

All Funds Available for Exp All Expenditures General Fund Total Expenditures

7,248,832

7,248,832 7,248,832

Oregon Health and Science University Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues General Fund Obligation Bonds Refunding Bonds Interest Income

214,600 4,315,796 77,012,354

214,600 4,315,796 (214,600) (4,315,796) 66,041,261

66,435,465 2,011,386

69,307,022 -

2013-15 Governor's Balanced Budget

N-26

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Oregon Health and Science University Transfers In Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures Ending Balance Other Funds Federal Funds Oregon University System Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Lottery Funds Other Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Federal Revenues Tuition and Fees - Hi Ed Fee Remissions - Hi Ed Aux Ent and Serv Fees - Hi Ed Sales and Service Fees - Hi Ed Rents and Royalties

28,509,000 178,498,601

31,634,760 166,983,043

77,012,354 96,955,851 173,968,205

66,041,261 100,941,782 166,983,043

214,600 4,315,796

3,892,168 337,561,128 (65,297) (52,667,033) 729,654,860

853,069 369,985,800 (157,719) 54,920,413 668,264,553

(27,617) 521,068,155 27,617 (521,068,155) -

847,310 832,832,280 1,741,080,821 (123,013,899) 492,801,356 319,915,434 13,952,014

897,057,579 2,135,524,731 (168,547,863) 547,065,787 328,699,340 -

2013-15 Governor's Balanced Budget

N-27

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Oregon University System Other Funds Revenues General Fund Obligation Bonds Dedicated Fund Oblig Bonds Lottery Bonds Cert of Participation Interest Income Donations Grants (Non-Fed) Other Revenues Loan Proceeds Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures Ending Balance Lottery Funds Other Funds

91,662,000 281,817,470 22,355,000 43,209,002 66,414,630 248,221,796 245,418,705 314,853,029 34,787,000 70,823,654

89,877,501 112,479,000 8,185,000 38,865,749 188,185,577 275,038,364 196,700,405 4,922,075

19,906,234 658,920,759 (635,018,970) 5,760,161,451

22,263,786 529,541,961 (520,077,905) 5,779,647,203

729,654,860 23,096,954 4,379,634,416 70,823,654 5,203,209,884

668,264,553 22,986,753 4,562,433,284 4,922,075 5,258,606,665

1,483,461 555,468,106

(27,617) 521,068,155

2013-15 Governor's Balanced Budget

N-28

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Student Access Comm, Oregon Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Lottery Funds Other Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Charges for Services Admin and Service Charges Interest Income Donations Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

3,190,383 5,256,477 87,773,980

(33,887) 4,476,145 2,262,516 (205,686) 99,891,570

4,877,570 (4,877,570) -

69,637 703,642 60,000 97,601 12,841,470 14,672 917,968

56,549 611,197 79,464 18,597,526 24,980 -

5,998,657 5,308,892 (1,983,285) 120,250,094

401,543 5,051,993 (2,357,172) 128,856,738

87,759,413 6,632,734 17,784,415 917,968 113,094,530

99,891,570 2,630,172 21,457,426 123,979,168

2013-15 Governor's Balanced Budget

N-29

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Student Access Comm, Oregon

Reversions Ending Balance Lottery Funds Other Funds Teacher Standards & Practices Comm Beginning Balance Other Funds Other Funds Revenues Business Lic and Fees Admin and Service Charges Interest Income Federal Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Federal Funds Total Expenditures Ending Balance Other Funds

(14,567)

2,556,306 4,584,691

4,877,570

1,895,701 4,424,528 692,973 316 -

1,313,158 4,416,682 777,168 85,455

1,062,396 4,043,712 432,570 35,000

(346,000) 6,667,518

6,592,463

5,573,678

5,311,522 5,311,522

5,444,612 85,455 5,530,067

4,951,441 35,000 4,986,441

1,355,996

1,062,396

587,237

2013-15 Governor's Balanced Budget

N-30

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Blind Commission Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Charges for Services Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures Ending Balance Other Funds Federal Funds

1,375,966 12,836 1,339,094

1,498,897 12,835 (839,148) 1,148,037

166,846 41,279 1,064,347

302,345 1,664,415 10,695,664

283,536 33,840 329,888 367,398 1,439,294 11,561,430

381,599 1,200 329,888 392,060 2,112,686 10,873,067

543,744 (543,744) 15,390,320

1,460,492 (1,460,492) 15,836,007

730,073 (730,073) 15,362,972

1,339,094 2,672,035 10,708,500 14,719,629

1,148,037 2,946,859 11,532,986 15,627,882

1,064,347 3,077,800 10,685,997 14,828,144

670,691 -

166,846 41,279

306,479 228,349

2013-15 Governor's Balanced Budget

N-31

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Children and Families, State Comm on Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Donations Grants (Non-Fed) Other Revenues Federal Funds Transfers In Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

1,030,849 580,178 46,235,047

(100,876) (283,184) 1,366,245 880,901 21,713,999

373,354 318,174 3,033,487

262,839 67,500 789,045

14,699,429 66,270,518

7,309,093 32,005,562

46,231,324 15,167,777 3,150,868 64,549,969

21,713,999 8,317,073 909,077 30,940,149

Reversions Ending Balance Other Funds Federal Funds

(3,723)

1,254,029 462,797

587,728 477,685

2013-15 Governor's Balanced Budget

N-32

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Human Services, Dept. of Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Lottery Funds Other Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Other Selective Taxes Business Lic and Fees Non-business Lic. and Fees Charges for Services Care of State Wards Fines and Forfeitures General Fund Obligation Bonds Cert of Participation Interest Income Sales Income Donations Loan Repayments Other Revenues Federal Funds Transfers In Other Funds Transfers Out Lottery Funds Other Funds Federal Funds

1,791,324,518

(411,680) 105,550,291 482,490 (15,780,580) 2,140,339,883

21,531,856 (18,691,137) 2,332,119,386

199,930 80,287,317 2,108,197 13,019 92,234 34,203,893 194,426 14,118,543 1,078,348 101,915 1,037,206 414,173 102,111,490 5,704,851,416

82,981,045 2,495,442 15,838,658 236,591,899 5,808,944,740

102,380,750 2,502,328 15,209,636 14,360,000 245,389,477 6,180,861,130

212,481,653 (94,598,033) (2,766,950)

131,188,264 (70,810) (84,770,939) (2,440,643)

108,667,857 (1,425,251) (2,440,643)

2013-15 Governor's Balanced Budget

N-33

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Human Services, Dept. of

All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

7,847,253,295

8,420,938,060

9,000,465,389

1,791,286,691 334,595,591 5,702,084,466 7,827,966,748

2,140,339,883 452,562,224 5,806,504,097 8,399,406,204

2,332,119,386 483,658,454 6,178,420,487 8,994,198,327

Reversions Ending Balance Other Funds Long Term Care Ombudsman Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Donations Transfers In Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds

(37,827)

19,248,720

21,531,856

6,267,062

79,009 293 1,084,316

173,543 1,753,933

146,326 (77,481) 1,977,698

50 1,714,319 2,877,987

555,904 2,483,380

613,523 2,660,066

1,084,316 1,708,288

1,753,933 583,121

1,977,698 665,965

2013-15 Governor's Balanced Budget

N-34

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Long Term Care Ombudsman

Total Expenditures Ending Balance Other Funds Oregon Health Authority Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Other Selective Taxes Business Lic and Fees Non-business Lic. and Fees Charges for Services Admin and Service Charges Care of State Wards Fines and Forfeitures Rents and Royalties General Fund Obligation Bonds Cert of Participation Interest Income Sales Income Donations Grants (Non-Fed)

2,792,604

2,337,054

2,643,663

85,383

146,326

16,403

1,443,402,168

1,500,000 1,697,058,124

765,978 303,854,078 184,602 (765,978) 55,449,876 2,043,789,882

351,622,108 8,001,758 3,905,370 20,923,430 27,456,883 15,502,529 578,940 7,744 11,220,698 1,637,556 5,375,334 2,202,355 -

502,230 875,067,981 11,213,135 9,541,247 24,819,498 2,836,220,659 3,311,019 67,950,170 7,321,320 8,825,024 1,544,728 1,102,161

7,338 842,261,875 7,379,041 16,139,349 29,868,474 3,358,597,870 2,618,417 86,860,000 4,606,276 8,116,332 7,922,898 283,030 1,188,283

2013-15 Governor's Balanced Budget

N-35

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Oregon Health Authority Other Funds Revenues Loan Repayments Insurance Premiums Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

85,715 878,552,417 4,534,726,124

223,896,897 649,038,802 5,182,670,194

116,712,922 941,498,979 8,268,404,178

9,587,187 3,030,719,083 824,649 (76,429,997) (65,117,386) 10,204,784,665

10,678,759 903,106,145 (26,397) (16,270,157) (45,158,163) 12,453,913,376

10,533,827 508,503,370 (7,660,757) (14,966,755) 16,592,153,385

1,443,369,071 9,587,187 3,890,542,814 4,470,433,387 9,813,932,459

1,697,058,124 10,388,614 5,302,834,551 5,137,327,429 12,147,608,718

2,048,424,832 10,541,165 5,940,798,852 8,244,204,239 16,243,969,088

Reversions Ending Balance General Fund Lottery Funds Other Funds Federal Funds

(33,097)

390,819,109 -

765,978 305,354,078 184,602

(4,634,950) 343,401,461 9,417,786

2013-15 Governor's Balanced Budget

N-36

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Psychiatric Security Review Board Beginning Balance Other Funds General Fund Appropriation Other Funds Revenues Donations Transfers In Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

9,666 1,263,622

7,610 2,105,264

5,554 2,558,862

86,251 1,359,539

174,000 2,286,874

2,564,416

1,214,966 85,133 1,300,099

2,105,264 176,056 2,281,320

2,558,862 2,105 2,560,967

Reversions Ending Balance Other Funds

(48,656)

10,784

5,554

3,449

PROGRAM AREA: PUBLIC SAFETY


Corrections, Dept of Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds

13,931,313 52,563 21,063,332 (38,540)

14,710,428 52,563 (9,802,516) -

7,667,835 4,080 (391,781) (4,080)

2013-15 Governor's Balanced Budget

N-37

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Corrections, Dept of

General Fund Appropriation Other Funds Revenues Federal Revenues Charges for Services Admin and Service Charges Fines and Forfeitures Rents and Royalties General Fund Obligation Bonds Refunding Bonds Cert of Participation Interest Income Sales Income Donations Grants (Non-Fed) Loan Repayments Other Revenues Federal Funds Transfers In Other Funds Transfers Out General Fund Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds

1,208,328,818

1,362,844,564

1,485,510,100

296,200 10,549,041 229,535 308,113 375,563 190,780,334 45,588,186 11,462 2,415,061 10,470 900,000 1,047,470 115,577,439

509,982 12,597,039 371,808 266,341 5,806,551 52,852 1,388,399 9,030,525

108,800 11,826,742 3,290 234,287 239,339 5,050,000 17,672 2,034,830 1,721 33,556 3,194,370 8,179,236

16,263,653 (72,915) (7,282,050) 1,620,335,048

23,005,366 (9,940,011) 1,410,893,891

24,282,616 (9,787,477) 1,538,205,136

1,206,075,833 285,509,619 111,944,790

1,362,844,564 31,298,404 9,079,008

1,485,510,100 38,767,828 8,024,382

2013-15 Governor's Balanced Budget

N-38

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Corrections, Dept of

Total Expenditures

1,603,530,242

1,403,221,976

1,532,302,310

Reversions Ending Balance Other Funds Federal Funds Criminal Justice Comm, Oregon Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Fines and Forfeitures Interest Income Other Revenues Federal Funds Transfers Out Federal Funds All Funds Available for Exp All Expenditures General Fund Other Funds

(2,180,070)

10,978,064 3,646,672

7,667,835 4,080

5,747,972 154,854

95,109 4,954,312

16,092 13,037,566 (11,592) 4,761,327

5,500 8,033,497 197,862 (2,418,557) 13,668,122

292,134 341 27,077,855

299,950 1,000 14,495,121

299,950 1,000 3,611,269

(968,331) 31,451,420

32,599,464

23,398,643

4,945,096 185,220

4,761,327 299,950

13,668,122 283,422

2013-15 Governor's Balanced Budget

N-39

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Criminal Justice Comm, Oregon All Expenditures Federal Funds Total Expenditures

10,110,865 15,241,181

19,499,190 24,560,467

7,135,887 21,087,431

Reversions Ending Balance Other Funds Federal Funds District Attorneys and their Deputies

(9,216)

202,364 15,998,659

5,500 8,033,497

220,890 2,090,322

General Fund Appropriation

10,415,578

10,339,261

10,439,473

All Funds Available for Exp All Expenditures General Fund Total Expenditures

10,415,578

10,339,261

10,439,473

10,381,113 10,381,113

10,339,261 10,339,261

10,439,473 10,439,473

Reversions

(34,465)

Justice, Dept of Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds

61,139,048 261,057 (25,010) (200)

50,312,697 147,603 477,761 -

34,793,432 17,993,207 -

2013-15 Governor's Balanced Budget

N-40

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Justice, Dept of

General Fund Appropriation Other Funds Revenues General Fund Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Admin and Service Charges Fines and Forfeitures General Fund Obligation Bonds Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

51,826,586

53,831,443

64,428,072

69,180 5,170,411 131,185,693 23,804,355 6,314,588 47,391 70,378 38,020 38,180,302 119,338,774

56,200,000 5,001,390 328,703 155,179,547 4,144,933 43,400 20,300 45,000 39,501,868 122,310,521

56,200,000 5,387,900 329,671 171,625,230 1,551,040 14,410,000 29,350 20,000 41,000 54,552,715 154,908,400

30,620,013 (16,147,863) 451,892,723

23,578,066 (64,517,726) 446,605,506

23,346,711 (64,106,517) 535,510,211

51,826,581 222,595,522 118,839,865 393,261,968

53,831,443 235,522,507 122,458,124 411,812,074

64,428,072 274,524,910 154,908,400 493,861,382

Reversions

(5)

2013-15 Governor's Balanced Budget

N-41

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Justice, Dept of Ending Balance Other Funds Federal Funds Military Dept, Oregon Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Federal Revenues Charges for Services Rents and Royalties General Fund Obligation Bonds Dedicated Fund Oblig Bonds Refunding Bonds Cert of Participation Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Other Funds Federal Funds Transfers Out Other Funds Federal Funds

57,870,984 759,766

34,793,432 -

41,648,829 -

1,894,936 22,901,757

724,266 31,031,752 28,412,492

9,538,581 10,060,475 21,209,237

264,502 465 2,879,520 22,724,271 1,172,023 2,386,594 140,841 4,774 1,500 3,157,730 208,955,264

725,000 3,212,257 7,614,000 4,055,010 20,000 3,093,277 290,040,905

750,000 3,082,800 7,595,000 5,300 226,171 2,294,600 283,804,732

118,917,977 291,341 (41,704,191) (1,284,877)

89,578,381 (400,496) (1,662,967)

84,732,320 (359,530) (1,694,963)

2013-15 Governor's Balanced Budget

N-42

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Military Dept, Oregon

All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

342,704,427

456,443,877

421,244,723

22,898,158 88,865,130 207,961,728 319,725,016

28,412,492 130,114,866 288,377,938 446,905,296

21,209,237 101,303,932 280,784,135 403,297,304

Reversions Ending Balance Other Funds Federal Funds Oregon Youth Authority Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Non-business Lic. and Fees Charges for Services Care of State Wards Rents and Royalties General Fund Obligation Bonds Sales Income Donations Other Revenues

(3,599)

22,975,812 -

9,538,581 -

16,621,785 1,325,634

729,604 254,140,592

856,931 256,050,831

456,029 63,215 272,802,423

6,300 27,597 6,089,686 28,965 26,353 698,430 107,770 569,074

173,890 5,702,375 25,280 905,000 103,580 2,947,831

177,841 6,715,610 25,280 5,165,000 905,000 103,580 3,178,624

2013-15 Governor's Balanced Budget

N-43

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Oregon Youth Authority

Federal Funds Transfers In Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

28,624,903

31,107,232

36,702,391

2,654,336 293,703,610

2,914,855 300,787,805

2,914,855 329,209,848

251,231,118 10,625,938 28,624,903 290,481,959

256,050,831 13,173,713 31,107,232 300,331,776

272,802,423 19,120,131 36,702,391 328,624,945

Reversions Ending Balance Other Funds Parole & Post Prison Supervision, State Board of Beginning Balance Other Funds General Fund Appropriation Other Funds Revenues Charges for Services Fines and Forfeitures Sales Income All Funds Available for Exp

(2,909,474)

312,177

456,029

584,903

18,966 3,742,600

18,932 3,641,093

18,657 3,964,912

2,153 5,391 2,860 3,771,970

5,072 4,942 3,670,039

5,072 4,942 3,993,583

2013-15 Governor's Balanced Budget

N-44

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Parole & Post Prison Supervision, State Board of All Expenditures General Fund Other Funds Total Expenditures

3,695,294 6,280 3,701,574

3,641,093 10,289 3,651,382

3,964,912 10,536 3,975,448

Reversions Ending Balance Other Funds Police, Dept of State Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Fire Marshal Fees Charges for Services Fines and Forfeitures Rents and Royalties Cert of Participation Interest Income Sales Income

(47,306)

23,090

18,657

18,135

978,159 20,552,922 2,787,228 65,899 216,671,712

352,269 15,311,919 3,152,333 550,264 2,566,417 (869,679) 221,721,695

12,677 13,590,233 1,668,025 100,000 (477,701) (813,489) 238,147,884

370,633 1,053,967 1,550,957 23,590,753 223,997 585,726 1,315,898 41,068 98,443

321,480 1,077,240 1,551,160 26,807,151 435,318 652,642 68,401

200,469 1,010,085 1,815,768 27,272,076 489,600 548,711 181,049

2013-15 Governor's Balanced Budget

N-45

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Police, Dept of State Other Funds Revenues Donations Grants (Non-Fed) Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

24,141 2,256,940 6,955,979

44,509 3,399,602 1,390,548 9,029,468

24,368 66,678 1,894,144 9,228,807

11,372,276 82,197,159 184,866 (5,021,815) (35,817,481) (776,785) 331,262,642

5,965,774 79,985,427 (26,144,920) 347,369,018

5,071,487 86,747,911 224,241 (27,562,957) (224,241) 359,215,825

216,286,946 6,511,667 82,597,416 7,627,721 313,023,750

221,721,695 6,855,630 93,876,661 9,644,097 332,098,083

238,147,884 4,924,882 91,310,297 9,158,454 343,541,517

Reversions Ending Balance Lottery Funds Other Funds Federal Funds

(384,766)

882,852 15,447,707 1,523,567

12,677 13,590,233 1,668,025

259,282 14,490,137 924,889

2013-15 Governor's Balanced Budget

N-46

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Public Safety Standards & Training, Dept of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Business Lic and Fees Charges for Services Admin and Service Charges Fines and Forfeitures Rents and Royalties Interest Income Donations Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

4,799,551 11,360,288

5,605,006 1,794,469 11,283,810

3,638,533 2,111,105 10,136,429

1,913,808 138,137 19,507 31,153 729,329 6,064 300 29,340 52,524

2,128,064 418,221 21,708 20,000 740,000 5,000 1,500 10,300 57,513

2,184,020 182,304 21,000 30,000 763,500 3,000 2,000 5,500 58,893

34,098,452 (1,142,579) 52,035,874

26,810,564 (954,000) 47,942,155

29,171,134 (784,500) 47,522,918

11,360,288 31,047,286 52,524 42,460,098

11,283,810 32,962,299 57,513 44,303,622

10,136,429 33,566,260 58,893 43,761,582

2013-15 Governor's Balanced Budget

N-47

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Public Safety Standards & Training, Dept of Ending Balance Other Funds

9,575,776

3,638,533

3,761,336

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Employment Dept Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Employment Taxes Business Lic and Fees Federal Revenues Charges for Services Fines and Forfeitures Interest Income Donations Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund

1,474,124,003 2,756,283

63,672,298 (1,117,919) 3,234,080

72,062,619 1,382,737,603 -

1,797,952,157 758,162 31,365,134 3,645,270 74,564,442 1,509,380 96,904,070 3,332,073,829

2,020,663,852 978,454 1,393,072 38,366,226 3,311,482 50,398,006 1,333,332 111,848,096 1,296,595,387

2,118,539,128 788,031 35,286,968 3,360,000 102,769,068 65,887,799 266,568,665

2,558,156,016 (2,560,957,498) 6,812,851,248

2,256,107,926 (2,270,099,412) 3,576,684,880

1,828,711,566 (1,842,822,396) 4,033,889,051

2,756,233

3,234,080

2013-15 Governor's Balanced Budget

N-48

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Employment Dept All Expenditures Other Funds Federal Funds Total Expenditures

2,503,262,272 3,332,073,829 5,838,092,334

2,204,792,794 1,296,595,387 3,504,622,261

1,771,109,998 266,568,665 2,037,678,663

Reversions Ending Balance Other Funds Housing & Community Svcs Dept Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Lottery Funds Other Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Non-business Lic. and Fees Public Utilities Fees Charges for Services Admin and Service Charges Fines and Forfeitures Dedicated Fund Oblig Bonds Lottery Bonds Revenue Bonds Refunding Bonds

(50)

974,758,864

72,062,619

1,996,210,388

331,013 346,921,217 9,524,010

289,803 307,003,308 (31,236) 10,879,062 11,462,436

143,225 331,130,868 (17,280) 10,879,062 7,760,573

28,826 10,179,922 55,336,681 2,508,057 7,293,033 497,315 20,028,999 346,570,000 374,443

7,700,223 58,331,095 9,492,622 4,800,000 130,000 10,000,000 5,120,943 220,000,000 -

7,753,493 56,043,325 2,961,549 7,696,839 40,000 10,000,000 230,000,000 -

2013-15 Governor's Balanced Budget

N-49

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Housing & Community Svcs Dept Other Funds Revenues Interest Income Donations Housing Div Loan Repayments Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures Ending Balance Lottery Funds Other Funds Federal Funds

161,901,766 205,958 225,747,024 1,675,966 368,368,816

174,861,575 151,725 213,664,618 154,940 307,523,640

162,624,713 152,000 222,176,258 307,628 261,748,724

8,499,439 673,644,244 9,518,813 (201,693) (650,058,020) (829,035) 1,598,066,794

10,349,343 450,028,659 4,745,782 (411,086,121) 1,395,572,417

10,165,579 701,975,606 1,200,000 (168,936) (674,938,443) 1,349,634,783

9,524,010 8,454,527 855,562,067 377,058,594 1,250,599,198

11,462,436 10,464,685 730,101,781 312,269,422 1,064,298,324

7,760,573 10,010,599 514,308,563 131,332,216 663,411,951

203,058 347,264,538 -

143,225 331,130,868 -

111,989 554,494,335 131,616,508

2013-15 Governor's Balanced Budget

N-50

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Oregon Business Development Department Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Business Lic and Fees Charges for Services Rents and Royalties General Fund Obligation Bonds Lottery Bonds Revenue Bonds Refunding Bonds Cert of Participation Interest Income Donations Grants (Non-Fed) Loan Repayments Other Revenues Federal Funds Transfers In Lottery Funds Other Funds

11,387,372 219,059,954 389,481 686,190 (705,985) 8,926,280

299,884 220,334,115 344,496 3,177,554 (35,311,961) (23,747) 3,842,479

3,888 89,761,907 5,819,939 81,606,406 9,111,887 9,226,734

81,196 2,172 586,957 6,885 40,026,294 11,298,723 42,720,767 8,390,833 104,061,393 1,079,783 35,581,206

120,000 14,500 1,590,978 10,106,207 33,031,774 42,819,746 8,500,000 460,000 54,824,551 1,301,773 53,597,682

9,500 1,462,650 30,000,000 92,818,000 33,031,774 10,235,000 41,536,218 8,100,000 460,000 55,922,683 2,745,252 39,372,021

164,683,042 234,505,490

135,083,678 113,180,733

128,962,813 81,514,581

2013-15 Governor's Balanced Budget

N-51

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Oregon Business Development Department Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

(65,382,183) (168,538,827) (6,653,090) 642,193,933

(75,190,351) (3,745,782) 568,358,309

(53,043,381) (200,000) 668,457,872

8,926,180 106,424,887 238,270,078 28,428,854 382,049,999

3,842,479 138,677,228 285,900,158 50,172,649 478,592,514

9,226,734 134,786,640 380,777,279 38,527,951 563,318,604

Reversions Ending Balance Lottery Funds Other Funds Federal Funds Veterans' Affairs, Oregon Dept of Beginning Balance Other Funds General Fund Appropriation Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Admin and Service Charges

(100)

5,030,730 254,224,361 888,743

3,888 89,761,907 -

95,383,311 9,755,957

555,765,950 5,898,200

596,114,104 6,562,195

362,648,037 7,791,637

204,000 62,889 1,879,815 27,076,143

300,000 40,000 30,215,842 1,500,000

300,000 40,000 30,215,842 1,500,000

2013-15 Governor's Balanced Budget

N-52

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Veterans' Affairs, Oregon Dept of Other Funds Revenues Rents and Royalties Dedicated Fund Oblig Bonds Interest Income Sales Income Donations Loan Repayments Veterans Loan Repayments Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

1,332,188 83,150,000 38,800,080 1,899 558,300 477,256 78,377,015 493,943 1,970,508

1,400,000 100,000,000 55,075,000 25,000 300,000 75,000,000 1,000,000 19,362,748

1,400,000 100,000,000 55,075,000 25,000 300,000 75,000,000 1,000,000 -

482,845,621 (482,751,448) 796,142,359

389,419,374 (389,328,459) 886,985,804

202,405,007 (202,287,675) 635,412,848

5,887,682 536,633,176 1,970,508 544,491,366

6,562,195 498,412,824 19,362,748 524,337,767

7,791,637 379,004,888 386,796,525

Reversions Ending Balance Other Funds

(10,518)

251,640,475

362,648,037

248,616,323

2013-15 Governor's Balanced Budget

N-53

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Agriculture, Oregon Dept of Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Business Lic and Fees Federal Revenues - Svc Contracts Charges for Services Admin and Service Charges Fines and Forfeitures Rents and Royalties Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Lottery Funds Other Funds Federal Funds

782,569 20,596,094 321,194 13,012,720

556,220 17,164,421 321,194 919,356 1,474,423 12,108,804

2,443 15,990,677 321,194 281,788 2,688,771 (321,193) 18,685,836

25,406,522 1,509,931 16,518,121 79,828 322,204 8,682 278,502 15,692 350 130,506 11,082,099

25,088,215 1,965,110 16,217,283 297,359 172,461 308,253 1,000 532,030 14,154,365

25,553,862 1,769,552 17,546,283 120,359 239,461 249,253 37,000 205,030 18,093,133

10,664,404 11,395,973 (1,139,244) (9,132,740) (1,391,053)

6,354,210 13,684,510 (8,773,886) (2,209,496)

5,536,007 11,687,374 (8,147,505) (2,863,227)

2013-15 Governor's Balanced Budget

N-54

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Agriculture, Oregon Dept of

All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

100,462,354

100,335,832

107,676,098

12,998,069 8,709,513 45,564,865 9,796,616 77,069,063

12,108,804 7,827,343 52,140,502 11,944,869 84,021,518

18,685,836 5,820,238 53,360,846 15,148,657 93,015,577

Reversions Ending Balance Lottery Funds Other Funds Federal Funds Columbia River Gorge Comm

(14,651)

1,598,216 21,564,800 215,624

2,443 15,990,677 321,194

14,579,271 81,250

General Fund Appropriation Other Funds Revenues Donations Other Revenues All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

818,084

814,846

1,075,598

2,377 820,461

5,000 819,846

5,140 1,080,738

813,817 2,377 816,194

814,846 5,000 819,846

1,075,598 5,140 1,080,738

2013-15 Governor's Balanced Budget

N-55

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Columbia River Gorge Comm

Reversions

(4,267)

Energy, Dept of Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Business Lic and Fees Charges for Services Admin and Service Charges Fines and Forfeitures General Fund Obligation Bonds Dedicated Fund Oblig Bonds Lottery Bonds Revenue Bonds Interest Income Loan Repayments Other Revenues Federal Funds

47,964,665 -

1 51,710,832 13,639 9,186 6,083,427 (3,869) -

3,990 123,485,268 508,161 3,118 (81,147,627) (508,161) 500,000

3,916 9,048,803 3,789,006 10,844,530 145,533 127,312,625 5,472,107 18,291,509 28,264,499 59,646 28,793,085

12,084,251 6,675,286 10,544,686 50,000 150,000,000 55,000,000 13,225,398 24,495,967 231,103 38,451,783

10,400,791 4,060,777 13,583,174 250,740 107,080,000 10,148,364 20,167,846 31,214,003 3,125,000 4,185,224

2013-15 Governor's Balanced Budget

N-56

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Energy, Dept of Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures Ending Balance Lottery Funds Other Funds Federal Funds Environmental Quality, Dept of Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds

516,587 59,787,195 (60,787,195) 279,506,511

2,158,988 57,217,057 (56,190,668) (1,107,557) 370,649,510

3,434,606 81,599,566 143,439 (80,943,966) (799,039) 250,495,274

516,894 196,551,776 28,793,085 225,861,755

2,164,185 207,642,071 36,845,835 246,652,091

500,000 3,437,724 223,327,790 2,980,934 230,246,448

3,609 53,641,147 -

3,990 123,485,268 508,161

3,990 19,696,146 548,690

82,329 66,732,906 821,228 -

217,856 73,063,450 821,228 (217,856) 10,275,416 (821,228)

856 78,014,663 238,218 135,551,031 -

2013-15 Governor's Balanced Budget

N-57

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Environmental Quality, Dept of

General Fund Appropriation Other Funds Revenues General Fund Revenues Business Lic and Fees Non-business Lic. and Fees Federal Revenues Federal Revenues - Svc Contracts Charges for Services Admin and Service Charges Fines and Forfeitures General Fund Obligation Bonds Interest Income Loan Repayments Other Revenues Loan Proceeds Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds

30,807,725

25,011,536

31,169,735

1,146,991 56,245,883 26,431,784 70,290,992 17,950,197 3,645,341 285,172 9,999,529 29,766,420 116,790,276 1,570,761 290,000 37,160,178

1,000,000 59,621,852 43,365,025 30,000,000 116,102 4,175,704 2,681,683 105,900 16,740,000 32,333,244 62,000,000 798,582 34,174,161

1,000,000 61,588,303 28,084,292 30,000,000 116,102 21,384,443 3,120,014 190,000 10,000,000 32,483,060 62,000,000 757,055 31,426,904

5,354,398 51,468,849 (10,505) (42,593,863) (3,795,596) 480,440,995

4,503,053 47,855,576 (40,225,167) (3,446,046) 404,150,071

3,710,822 48,482,539 (39,504,248) (3,286,745) 536,527,044

30,796,820 5,415,717 236,328,939

25,011,536 4,502,197 265,892,704

31,169,735 3,899,218 271,692,916

2013-15 Governor's Balanced Budget

N-58

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Environmental Quality, Dept of All Expenditures Federal Funds Total Expenditures

33,043,015 305,584,491

30,728,115 326,134,552

27,911,636 334,673,505

Reversions Ending Balance Lottery Funds Other Funds Federal Funds Fish & Wildlife, Oregon Dept of Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Non-business Lic. and Fees Hunter and Angler Licenses Commercial Fish Lic and Fees Park User Fees Charges for Services Fines and Forfeitures Rents and Royalties Lottery Bonds

(10,905)

10,505 173,692,299 1,142,795

856 78,014,663 -

50,678 201,574,338 228,523

806,940 46,450,506 129,940 13,284,543

280,972 44,962,084 2,953,913 (280,972) 547,240 (2,953,913) 6,779,844

33,252,355 438,632 2,201,845 17,950,899

202 88,624,232 7,388,205 474,693 9,814,210 781,833 563,973 -

102,518,844 7,718,630 16,014,304 114,815 797,365 -

99,028,713 7,921,936 26,239,602 431,314 1,647,034

2013-15 Governor's Balanced Budget

N-59

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Fish & Wildlife, Oregon Dept of Other Funds Revenues Cert of Participation Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

438,257 1,619,105 38,261 11,901,647 112,994,421

16,000,000 771,428 2,970,510 314,500 1,786,669 130,312,532

402,225 3,013,129 1,080,000 148,970,207

5,382,609 28,814,485 49,433 (3,066,521) (17,255,913) 309,235,061

5,824,398 91,754,522 (55,454,484) (20,378,046) 353,355,155

5,119,319 69,004,696 (435,346) (62,116,309) (20,000,000) 334,150,251

13,225,857 5,801,126 148,567,890 95,917,881 263,512,754

6,779,844 5,824,398 197,564,072 109,934,486 320,102,800

17,950,899 5,010,442 158,284,745 127,213,605 308,459,691

Reversions Ending Balance Lottery Funds Other Funds

(58,686)

388,423 45,275,198

33,252,355

112,163 23,821,795

2013-15 Governor's Balanced Budget

N-60

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Fish & Wildlife, Oregon Dept of Ending Balance Federal Funds Forestry, Dept of Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues General Fund Revenues Forest Protection Taxes Business Lic and Fees Non-business Lic. and Fees Charges for Services Rents and Royalties General Fund Obligation Bonds Lottery Bonds Refunding Bonds Cert of Participation Interest Income Sales Income State Forest Lands Sales Common School Lands Sales Donations

1,756,602

34,560,665 1,005,979 43,202,509

1 5,072,847 (1,298,638) 12,813 2,932,725 1,298,638 50,181,631

15,597,077 3,010 55,829,977

12,758 39,371 27,726,216 799,227 25,717,466 2,568,497 845,000 17,186,224 6,446,038 1,148,605 203,567 19,662 135,334,092 18,794,031 169,487

27,519,148 1,034,895 36,354,991 3,610,524 965,000 3,347,343 121,258,234 38,494,000 270,493

43,567,824 150,857 1,035,123 31,407,615 4,762,771 7,600,000 5,100,000 175,979 2,072,755 137,278,242 38,582,000 276,985

2013-15 Governor's Balanced Budget

N-61

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Forestry, Dept of Other Funds Revenues Loan Repayments Other Revenues Loan Proceeds Federal Funds Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

24,346 1,931,739 27,795,713

1,497,899 53,581,923 6,434,609 44,278,675

1,560,039 49,732,044 31,352,528

1,370,183 68,315,339 82,220 (139,673,348) (809,429) 274,816,157

2,529,510 56,816,537 (10) (145,738,424) 310,455,364

3,316,986 48,846,897 (145,737,468) 332,511,241

42,924,304 1,374,136 177,228,140 28,074,483 249,601,063

50,181,631 2,542,314 197,855,667 44,278,675 294,858,287

55,829,977 3,319,996 224,372,889 30,800,762 314,323,624

Reversions Ending Balance Lottery Funds Other Funds Federal Funds

(278,205)

8,805 24,928,084 -

15,597,077 -

17,635,851 551,766

2013-15 Governor's Balanced Budget

N-62

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Geology & Mineral Industries, Dept of Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Non-business Lic. and Fees Charges for Services Sales Income Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds

776 681,526 6,490 2,675,265

(1) 673,982 6,490 1 28,589 (6,490) 2,464,702

524,107 1 28,589 (6,490) 2,575,953

2,060,871 4,989,104 205,328 78,239 3,844,105

2,042,223 5,711,666 330,000 5,691,685

2,255,434 4,835,494 200,000 4,737,978

499,223 961,269 (262,778) (351,491) 15,387,927

1,225,846 (453,335) (423,396) 17,291,962

1,298,291 (600,635) (423,396) 15,425,326

2,675,269 499,999 7,733,956 3,492,611

2,464,702 9,034,864 5,268,289

2,575,953 7,848,295 4,308,092

2013-15 Governor's Balanced Budget

N-63

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Geology & Mineral Industries, Dept of

Total Expenditures

14,401,835

16,767,855

14,732,340

Reversions Ending Balance Lottery Funds Other Funds Federal Funds Land Conservation & Development, Dept of Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Business Lic and Fees Charges for Services Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Other Funds Federal Funds

979,603 6,493

524,107 -

1 692,985 -

251,820 15,509,125

272,454 249,804 (95,568) 11,132,225

237,012 384 (384) 12,769,089

155,298 970 10,446 50,000 65,261 4,913,604

429,001 28,000 12,000 336 5,607,861

62,500 28,000 12,000 6,100,788

1,041,376 553,326

1,048,362 -

1,112,957 -

2013-15 Governor's Balanced Budget

N-64

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Land Conservation & Development, Dept of Transfers Out Federal Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

(553,326) 21,997,900

18,684,475

20,322,346

15,258,551 1,309,575 4,790,276 21,358,402

11,132,225 1,457,573 5,857,281 18,447,079

12,769,089 1,190,188 6,100,788 20,060,065

Reversions Ending Balance Other Funds Federal Funds Land Use Board of Appeals Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Sales Income Other Revenues Transfers Out Other Funds

(250,574)

265,596 123,328

237,012 384

262,281 -

42,703 1,414,047

26,575 1,295,278

6,830 9,080 1,442,194

63,825 54,850 525 (63,825)

80,150 63,875 (80,150)

80,150 72,955 (80,150)

2013-15 Governor's Balanced Budget

N-65

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Land Use Board of Appeals

All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

1,512,125

1,385,728

1,531,059

1,412,424 64,014 1,476,438

1,295,278 83,620 1,378,898

1,442,194 85,384 1,527,578

Reversions Ending Balance Other Funds Lands, Dept of State Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Federal Revenues Charges for Services Admin and Service Charges Fines and Forfeitures Rents and Royalties Interest Income

(1,623)

34,064

6,830

3,481

1,068,549,803 294,947 2,441,534

1,123,476,937 1,683,457 681,266

1,149,393,841 2,319,509 (10) (24) -

3,000 1,426,779 115,509 149,447 189,670 181,179 7,229,885 61,454,663

3,162,273 849,754 450,000 180,000 5,470,000 140,458,855

3,162,273 849,754 450,000 180,000 5,470,000 140,458,855

2013-15 Governor's Balanced Budget

N-66

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Lands, Dept of State Other Funds Revenues Sales Income Common School Lands Sales Donations Grants (Non-Fed) Loan Repayments Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

104,739 156,300 17,786 1,668,245 3,812,804 3,473,176

103,750 12,000 142,069 240,000 4,196,277 6,735,966

103,750 12,000 142,027 240,000 1,938,937 1,437,082

1,053,495,018 (1,143,600,754) 1,061,163,730

175,152,499 (247,894,452) 1,215,100,651

175,430,602 (248,201,352) 1,233,387,244

1,934,790 30,430,351 3,497,375 35,862,516

681,266 56,606,121 6,099,914 63,387,301

37,019,591 1,565,323 38,584,914

Reversions Ending Balance Other Funds Federal Funds Marine Board, Oregon State Beginning Balance Other Funds Federal Funds

(506,744)

1,024,523,722 270,748

1,149,393,841 2,319,509

1,192,611,086 2,191,244

4,197,635 -

2,139,202 (119)

3,241,226 -

2013-15 Governor's Balanced Budget

N-67

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Marine Board, Oregon State Beginning Balance Adjustment Other Funds Other Funds Revenues Non-business Lic. and Fees Fines and Forfeitures Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Federal Funds Total Expenditures Ending Balance Other Funds Federal Funds Parks & Recreation Dept Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Lottery Funds

12,040,914 103,675 89,448 12,956 161,651 6,188,391

6,907,324 12,141,660 103,800 62,400 137,600 6,683,513

5,308,029 12,173,777 95,187 122,840 12,000 200 167,800 7,444,986

26,823,528 (17,683,483) 31,934,715

26,101,602 (15,993,950) 38,283,032

28,237,220 (17,787,945) 39,015,320

22,201,108 6,188,391 28,389,499

23,287,102 6,683,394 29,970,496

26,028,371 7,443,149 33,471,520

3,545,216 -

8,312,536 -

5,541,963 1,837

18,619,104 19,662,238 1,477,217

9,332,982 22,545,166 1,477,959

14,033,542 30,923,493 1,711,378

2013-15 Governor's Balanced Budget

N-68

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Parks & Recreation Dept Beginning Balance Adjustment Other Funds Lottery Funds Interest Income Other Funds Revenues Non-business Lic. and Fees Park User Fees Charges for Services Rents and Royalties Lottery Bonds Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Lottery Funds Other Funds All Funds Available for Exp All Expenditures Lottery Funds Other Funds Federal Funds Total Expenditures

303,141 2,149,693 37,736,277 8,028,071 4,340,164 415,547 3,170,542 849,641 1,546,267 6,734,753

(730,843) 147,000 2,287,347 42,810,388 10,013,340 2,217,703 493,042 2,600,000 6,855,362 15,785,886

(394,785) 142,622 2,301,178 42,026,683 9,580,659 1,431,498 5,093,547 339,313 2,233,670 8,063,350 9,987,264

81,456,970 48,864,472 1,905,097 (14,820,828) 222,438,366

85,933,152 55,418,662 (1,310,986) (14,358,516) 241,517,644

83,028,717 50,445,761 (48,236) (12,639,961) 248,259,693

86,441,978 86,786,404 8,639,850 181,868,232

81,546,565 99,228,158 15,785,886 196,560,609

88,155,577 112,859,681 9,978,541 210,993,799

2013-15 Governor's Balanced Budget

N-69

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Parks & Recreation Dept Ending Balance Lottery Funds Other Funds Federal Funds Water Resources Dept Beginning Balance Lottery Funds Other Funds Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Non-business Lic. and Fees Power and Water Fees Federal Revenues Charges for Services Admin and Service Charges Fines and Forfeitures Dedicated Fund Oblig Bonds Lottery Bonds Interest Income Sales Income Loan Repayments Other Revenues

15,414,454 25,155,680 -

14,033,542 30,923,493 -

10,712,446 26,544,725 8,723

3,721,518 19,268,371

1 2,808,460 (44,535) 2,281 (1,251,455) 44,535 20,359,297

1,599,792 22 695 341,572 (22) 25,109,984

2,324 250 6,626,347 108,978 1,146,388 20,095 3,500,000 52,219 683 53,393 5,747

8,641,221 2,147,859 150,000 15,355,000 1,448,893 1,481,042 5,000 365,906 1,550,000

11,202,303 2,486,197 100,000 20,477,513 890,976 1,921,036 1,364,872 1,550,000

2013-15 Governor's Balanced Budget

N-70

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Water Resources Dept

Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures Ending Balance Lottery Funds Other Funds Federal Funds Watershed Enhancement Board, Oregon Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Lottery Funds Other Funds Lottery Funds Interest Income Other Funds Revenues Charges for Services

646,093

1,195,501

1,277,040

347,610 2,448,146 (4,245,304) 33,702,858

730,102 2,257,138 (4,197,107) 53,049,139

1,622,331 1,496,976 (3,778,568) 67,662,719

19,268,371 348,455 9,560,735 646,093 29,823,654

20,359,297 732,384 29,162,165 1,195,479 51,449,325

25,109,984 1,623,026 37,963,256 1,275,645 65,971,911

1,479 3,877,725 -

1,599,792 22

1,689,413 1,395

8,229,531 490,029 648,305 51

(4,315,571) (84,152) 9,690,571 384,152 480,000 -

3,836,020 410 (3,836,020) 420,000 -

2013-15 Governor's Balanced Budget

N-71

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Watershed Enhancement Board, Oregon Other Funds Revenues Sales Income Donations Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Lottery Funds Other Funds All Funds Available for Exp All Expenditures Lottery Funds Other Funds Federal Funds Total Expenditures Ending Balance Lottery Funds Other Funds

45 1,016,693 214 20,911,187

973,568 30,603 45,479,276

1,316,089 30,603 32,748,762

168,449,222 587,867 (113,803,135) (33,518) 86,496,491

86,697,167 469,773 (24,704,081) 115,101,306

84,342,535 694,542 (24,424,125) (187,304) 94,941,512

59,881,320 1,833,021 20,911,187 82,625,528

64,012,066 1,773,534 45,479,276 111,264,876

58,189,608 1,852,731 32,748,762 92,791,101

3,642,603 228,360

3,836,020 410

2,148,802 1,609

PROGRAM AREA: TRANSPORTATION


Aviation, Dept of Beginning Balance Other Funds Federal Funds

1,357,099 12,160

2,371,110 12,160

1,932,131 31,160

2013-15 Governor's Balanced Budget

N-72

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: TRANSPORTATION


Aviation, Dept of Beginning Balance Adjustment Other Funds Federal Funds Other Funds Revenues Motor Fuels Taxes Non-business Lic. and Fees Fines and Forfeitures Rents and Royalties Donations Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Federal Funds Total Expenditures Ending Balance Other Funds Federal Funds Transportation, Oregon Dept of Beginning Balance Lottery Funds Other Funds

1,329 987,367 482,041 13,664 1,029,285 3,699,521

(1,063,039) 19,000 2,400 628,924 2,664 556,495 1,330,663 3,508,055

452,335 (31,160) 766 903,969 480,481 578,041 4,774,000

7,423,876 (931,517) 14,074,825

4,195,599 (414,320) 11,149,711

5,090,065 (719,776) 13,492,012

7,320,330 3,711,681 11,032,011

5,676,565 3,472,055 9,148,620

6,098,002 4,769,741 10,867,743

3,042,814 -

1,933,931 67,160

2,620,010 4,259

793,677,728

(522,924) 286,977,631

258,136,983

2013-15 Governor's Balanced Budget

N-73

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: TRANSPORTATION


Transportation, Oregon Dept of Beginning Balance Federal Funds Beginning Balance Adjustment Lottery Funds Other Funds Federal Funds General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues Gross Receipts Business Taxes/Fees Motor Fuels Taxes Weight-Mile Taxes Other Taxes Business Lic and Fees Non-business Lic. and Fees Vehicle Licenses Drivers Licenses Transportation Lic and Fees Federal Revenues Charges for Services Admin and Service Charges Fines and Forfeitures Rents and Royalties Lottery Bonds Revenue Bonds Refunding Bonds Cert of Participation Interest Income Sales Income Loan Repayments

567,268 (164,901,813) 18,860,253

(811,671) 1,012,806 270,546,124 19,111,671 2,000,010

91,995 22,841,981 2,570,579 2,757,944

813,485 3,156,554 886,843,055 454,146,776 68,864 8,291,649 3,342 517,673,388 63,913,322 79,609,243 1,255,255,775 11,089,535 911,797 8,461,193 5,760,340 104,656,776 589,476,326 11,520,931 141,309,413 16,327,728 21,677,326 7,651,301

3,500,000 1,105,855,826 610,756,359 5,259,642 387,872 604,702,401 71,882,076 96,613,799 879,089,339 6,166,198 1,243,369 2,502,343 1,156,019 40,503,912 600,000,000 19,497,501 16,722,306 7,972,361

3,500,000 1,066,192,460 593,105,782 4,994,288 395,505 577,929,662 77,763,237 121,129,257 670,770,244 7,685,099 1,857,842 2,211,053 1,161,958 22,335,529 1,296,690,000 53,740,000 20,249,536 10,708,503 6,429,176

2013-15 Governor's Balanced Budget

N-74

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: TRANSPORTATION


Transportation, Oregon Dept of Other Funds Revenues Other Revenues Loan Proceeds Federal Funds Transfers In Lottery Funds Other Funds Federal Funds Transfers Out Other Funds Federal Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

14,493,343 10,836,198 116,526,258

8,285,225 120,466,726

57,623,508 120,744,699

79,058,568 3,247,997,103 591,919 (3,895,386,822) (891,006) 4,410,047,116

72,125,048 3,185,899,537 (3,955,289,416) 4,083,612,090

95,169,421 3,290,353,970 (3,899,928,319) 4,489,211,892

16,912,732 80,439,321 3,638,124,689 115,635,252 3,851,111,994

2,000,010 72,614,930 3,612,093,441 138,766,726 3,825,475,107

2,757,944 95,261,416 3,856,037,449 123,236,003 4,077,292,812

Reversions Ending Balance Other Funds Federal Funds

(1,947,521)

556,395,682 591,919

258,136,983 -

411,839,805 79,275

2013-15 Governor's Balanced Budget

N-75

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Accountancy, Board of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Fines and Forfeitures Interest Income Sales Income Other Revenues All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Chiropractic Examiners, State Board of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Fines and Forfeitures Sales Income Other Revenues

1,221,261 1,695,322 176,413 5,249 1,414 3,802 3,103,461

1,085,147 1,829,357 151,449 5,065 3,071,018

1,022,446 460,833 1,931,679 129,113 2,246 2,003 4,268 3,552,588

1,557,481 1,557,481

2,048,572 2,048,572

1,924,185 1,924,185

1,545,980

1,022,446

1,628,403

339,114 18,110 1,137,377 475 78,083 4,525 4,565

285,992 19,568 1,163,333 6,428 25,000 4,930 5,000

248,990 74,271 18,110 1,394,925 475 80,533 4,525 12,491

2013-15 Governor's Balanced Budget

N-76

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Chiropractic Examiners, State Board of

All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Construction Contractors Board Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues General Fund Revenues Business Lic and Fees Charges for Services Fines and Forfeitures Interest Income Sales Income Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds

1,582,249

1,510,251

1,834,320

1,221,987 1,221,987

1,261,261 1,261,261

1,475,711 1,475,711

360,262

248,990

358,609

4,313,065 1,056,299 12,638,284 269,206 12 81,710 50 (1,056,349) 17,302,277

2,411,883 (49,921) 1,152,000 12,969,632 300,000 288,000 45,600 1,082,200 (1,152,000) 17,047,394

1,909,951 1,126,653 1,080,000 13,500,300 195,960 338,640 240 10,500 1,390,600 (1,080,000) 18,472,844

13,799,101

15,137,443

15,944,713

2013-15 Governor's Balanced Budget

N-77

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Construction Contractors Board

Total Expenditures Ending Balance Other Funds Consumer and Business Svcs, Dept of Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds Other Funds Revenues General Fund Revenues Workers Comp Insurance Taxes Other Employer -Employee Taxes Insurance Taxes Business Lic and Fees Fire Marshal Fees Federal Revenues Charges for Services Admin and Service Charges Fines and Forfeitures Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Other Funds

13,799,101

15,137,443

15,944,713

3,503,176

1,909,951

2,528,131

258,217,482 113,055,799 62,043,193 137,721,073 72,758,115 66,730,615 16,767,656 15,084,501 1,860,898 2,922,635 6,795,914 17,728,294 726 211,960 7,364,586 610,545

213,401,962 (21,332,774) 117,966,781 104,637,732 143,128,938 103,295,285 72,137,968 18,361,186 13,402,447 2,109,306 3,720,451 8,920,146 12,472,199 140 11,903,009 3,190,140

138,615,617 2,438 2,949,793 (2,438) 130,506,876 112,638,003 149,133,351 27,696,980 71,893,845 19,689,606 14,047,311 2,093,030 3,314,246 7,699,370 9,416,994 1,865,685 1,606,737

99,630,426

55,908,763

46,512,140

2013-15 Governor's Balanced Budget

N-78

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Consumer and Business Svcs, Dept of Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Federal Funds Total Expenditures Ending Balance Other Funds Federal Funds Health Related Licensing Boards Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Fines and Forfeitures Interest Income Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp

(312,011,003) 567,493,415

(323,122,798) 540,100,881

(225,185,498) 514,494,086

384,164,640 610,545 384,775,185

398,295,124 3,187,699 401,482,823

410,761,704 984,618 411,746,322

182,718,230 -

138,615,617 2,441

102,125,645 622,119

1,529,806 (105,339) 3,178,580 807,571 2,094 106,100 21,833 13,837 (41,438) 5,513,044

1,389,731 165,252 3,008,049 3,000 1,542 65,364 56,800 20,156 862,876 (174,815) 5,397,955

1,259,161 826,263 3,496,832 3,000 1,542 65,364 56,800 20,156 910,000 (44,450) 6,594,668

2013-15 Governor's Balanced Budget

N-79

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Health Related Licensing Boards All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Labor & Industries, Bureau of Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Business Lic and Fees Charges for Services Fines and Forfeitures Interest Income Sales Income Other Revenues Federal Funds Transfers In Other Funds Federal Funds Transfers Out Other Funds

3,465,186 3,465,186

4,138,794 4,138,794

4,621,315 4,621,315

2,047,858

1,259,161

1,973,353

6,689,072 36,661 11,927,913

5,911,878 141,343 11,068,996

6,141,192 162,916 1,868,122 6,180 11,838,237

242,667 3,689,929 672,427 41,883 25,340 487,901 1,484,744 1,202,560

3,045,000 805,000 50,000 45,000 467,000 1,740,000 1,377,200

3,457,700 850,000 46,000 65,000 530,000 1,740,000 1,565,000

6,071,340 132,618 (3,993,610)

7,669,066 227,014 (2,609,346)

8,374,468 227,356 (3,229,411)

2013-15 Governor's Balanced Budget

N-80

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Labor & Industries, Bureau of Transfers Out Federal Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

(132,618) 28,578,827

(227,014) 29,711,137

(227,356) 33,415,404

11,832,787 8,346,180 1,065,281 21,244,248

11,068,996 10,982,406 1,355,627 23,407,029

11,827,236 11,119,453 1,498,766 24,445,455

Reversions Ending Balance General Fund Other Funds Federal Funds Licensed Prof Counselors and Therapists, Board of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Fines and Forfeitures Other Revenues All Funds Available for Exp

(95,126)

7,065,513 173,940

6,141,192 162,916

11,001 8,723,618 235,330

249,311 607,346 253,607 3,561 13,372 506 1,127,703

333,062 (136,750) 929,750 13,445 5,000 15,000 1,159,507

226,998 15,895 749,424 300,922 5,800 18,254 1,317,293

2013-15 Governor's Balanced Budget

N-81

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Licensed Prof Counselors and Therapists, Board of All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Licensed Social Workers, Board of Beginning Balance Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Fines and Forfeitures Interest Income Sales Income Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds

903,449 903,449

932,509 932,509

1,110,188 1,110,188

224,254

226,998

207,105

173,023 985,591 43,283 15,214 1,392 1,520 195,977 (236,977) 1,179,023

191,638 1,193,500 22,325 5,000 1,500 24,500 1,438,463

193,495 1,284,950 25,000 25,000 2,000 3,000 1,533,445

1,013,929 1,013,929

1,244,968 1,244,968

1,359,094 1,359,094

165,094

193,495

174,351

2013-15 Governor's Balanced Budget

N-82

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Nursing, Board of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Fines and Forfeitures Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Oregon Board of Dentistry Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Fines and Forfeitures Interest Income

905,014 10,814,387 29,256 972,338 197,171 3,445,434 (2,154,812) 14,208,788

2,445,432 75,000 11,743,571 52,500 1,574,070 48,000 3,064,034 (1,961,783) 17,040,824

3,052,619 (495,912) 12,396,865 43,000 1,593,108 160,000 2,924,034 (1,907,269) 17,766,445

12,184,268 12,184,268

13,988,205 13,988,205

14,655,274 14,655,274

2,024,520

3,052,619

3,111,171

803,486 2,027,688 16,850 38,500 9,985

577,462 2,327,200 40,000 5,000 50,000 10,000

324,618 11,612 2,405,500 40,000 5,000 75,000 10,000

2013-15 Governor's Balanced Budget

N-83

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Oregon Board of Dentistry Other Funds Revenues Other Revenues Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Oregon Health Licensing Agency Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Corporation Fees Charges for Services Fines and Forfeitures Interest Income Sales Income Other Revenues Transfers In Other Funds Transfers Out Other Funds

25,301 (173,139) 2,748,671

25,000 (208,000) 2,826,662

25,305 (215,500) 2,681,535

2,159,597 2,159,597

2,502,044 2,502,044

2,614,968 2,614,968

589,074

324,618

66,567

1,277,579 105,339 4,593,793 1,790,158 78 2,150 109,634 1,703 3,681 696 186,189 (85,095)

1,739,229 (460,251) 5,262,067 1,466,557 1,725 98,269 2,253 156,398 -

1,674,432 77,768 5,637,259 1,496,412 2,109 105,105 401 352 8,400 -

2013-15 Governor's Balanced Budget

N-84

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Oregon Health Licensing Agency

All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Oregon Medical Board Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Charges for Services Fines and Forfeitures Sales Income Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds

7,985,905

8,266,247

9,002,238

6,433,623 6,433,623

6,591,815 6,591,815

7,657,718 7,657,718

1,552,282

1,674,432

1,344,520

4,622,580 9,166,175 73,523 109,887 46,935 1,066,806 (1,939,134) 13,146,772

3,320,496 351,831 10,435,877 75,422 68,388 43,800 57,850 (971,552) 13,382,112

3,353,562 11,288,573 73,053 72,351 47,435 (1,033,103) 13,801,871

9,373,666 9,373,666

10,028,550 10,028,550

10,625,050 10,625,050

3,773,106

3,353,562

3,176,821

2013-15 Governor's Balanced Budget

N-85

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Pharmacy, Board of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Non-business Lic. and Fees Fines and Forfeitures Interest Income Other Revenues Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Psychologist Examiners, State Board of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Business Lic and Fees Charges for Services Fines and Forfeitures Sales Income

1,673,222 4,230,875 94,119 471,718 20,551 44,195 (264,409) 6,270,271

945,936 (423,475) 5,132,360 319,240 280,000 20,000 43,800 (284,390) 6,033,471

921,868 1,268,830 7,038,568 377,630 260,000 20,000 22,400 (319,775) 9,589,521

4,478,980 4,478,980

5,111,603 5,111,603

5,817,527 5,817,527

1,791,291

921,868

3,771,994

192,763 1,123,182 9,743 13,000 127

233,368 1,024,875 8,000 40,000 250

340,831 222,214 1,148,241 13,595 20,920 150

2013-15 Governor's Balanced Budget

N-86

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Psychologist Examiners, State Board of

All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Public Utility Commission Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Other Selective Taxes Business Lic and Fees Public Utilities Fees Charges for Services Fines and Forfeitures Interest Income Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds Federal Funds

1,338,815

1,306,493

1,745,951

883,233 883,233

965,662 965,662

1,024,920 1,024,920

455,582

340,831

721,031

46,390,097 11,971,697 309,516 97,413,624 100,811 113,928 344,347 87,897 2,284,465

42,737,118 14,258 (2,462,216) 11,968,139 311,112 92,629,571 99,678 86,301 353,197 5,000 4,874,153

31,187,251 37,937 11,968,139 311,112 105,852,751 99,678 86,301 353,197 5,000 2,463,075

11,118,400 (12,831,249) (61,979)

12,050,874 (11,914,033) (36,549)

12,976,084 (12,914,033) (36,549)

2013-15 Governor's Balanced Budget

N-87

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Public Utility Commission

All Funds Available for Exp All Expenditures Other Funds Federal Funds Total Expenditures Ending Balance Other Funds Federal Funds Real Estate Agency Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues General Fund Revenues Business Lic and Fees Charges for Services Fines and Forfeitures Sales Income Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures

157,241,554

150,716,603

152,389,943

119,657,557 2,222,486 121,880,043

114,677,490 4,813,925 119,491,415

119,164,283 2,444,367 121,608,650

35,361,511 -

31,187,251 37,937

30,761,197 20,096

4,164,252 65,228 5,575,878 27,907 65,462 7,358 (65,228) 9,840,857

3,160,366 112,179 5,809,037 176,787 187,713 (112,179) 9,333,903

1,872,473 612,164 66,381 5,466,968 24,933 65,413 (66,381) 8,041,951

6,772,329 6,772,329

7,461,430 7,461,430

7,121,715 7,121,715

2013-15 Governor's Balanced Budget

N-88

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Real Estate Agency Ending Balance Other Funds Tax Practitioners, State Board of Beginning Balance Other Funds Other Funds Revenues Business Lic and Fees Fines and Forfeitures Interest Income Other Revenues Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds

3,068,528

1,872,473

920,236

719,906 1,082,620 34,447 2,910 79,631 (430,000) 1,489,514

431,523 1,010,592 60,000 79,408 1,581,523

482,877 1,010,592 60,000 79,408 1,632,877

1,013,888 1,013,888

1,098,646 1,098,646

1,164,493 1,164,493

475,626

482,877

468,384

PROGRAM AREA: ADMINISTRATION


Administrative Svcs, Dept of Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Lottery Funds Other Funds

95,316,094 490,221,846 891,471 (150,361,294)

288,131,702 454,043,283 (96,317,319) 44,230,073

231,360,997 249,396,443 (178,553,496) 46,809,164

2013-15 Governor's Balanced Budget

N-89

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Administrative Svcs, Dept of

General Fund Appropriation Lottery Funds Interest Income Other Funds Revenues General Fund Revenues Non-business Lic. and Fees Charges for Services Admin and Service Charges Fines and Forfeitures Rents and Royalties Lottery Bonds Revenue Bonds Refunding Bonds Cert of Participation Interest Income Sales Income Cost of Goods Sold Loan Repayments Other Revenues Federal Funds Transfers In Lottery Funds Other Funds Transfers Out Lottery Funds Other Funds Federal Funds All Funds Available for Exp

13,337,523

8,411,014

10,591,310

1,295,385 8,174,585 3,072,716 399,036,132 89,224,931 25,645 94,337,334 46,151,795 18,600,049 5,110,000 7,405,668 17,045,313 1,987,834 54,612 437,015,885 47,000

2,706,173 11,151,513 347,968,505 389,939,606 18,400 77,009,575 3,940,550 19,514,631 6,521,818 18,537,148 237,934,110 323,765,351

3,280,713 13,844,011 437,816,497 389,622,782 18,400 94,615,433 42,321,625 5,850,175 6,511,597 155,358,756 331,535,719

1,471,134,674 446,280,444 (1,475,563,798) (504,413,191) 1,515,428,653

1,516,139,302 335,456,164 (1,467,225,333) (678,707,445) (323,765,350) 1,519,403,471

1,408,677,981 248,643,268 (1,209,856,525) (312,122,633) (331,535,719) 1,644,186,498

2013-15 Governor's Balanced Budget

N-90

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Administrative Svcs, Dept of All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures

13,199,411 8,203,164 1,023,991,813 47,000 1,045,441,388

8,411,014 12,073,528 1,018,161,488 1 1,038,646,031

10,591,310 12,546,578 1,004,135,575 1,027,273,463

Reversions Ending Balance Lottery Funds Other Funds Citizens Initiative Review Commission Other Funds Revenues Other Revenues All Funds Available for Exp All Expenditures Other Funds Total Expenditures

(138,112)

84,870,662 384,978,491

231,360,997 249,396,443

242,363,092 374,549,943

1 1

16,401 16,401

1 1

16,401 16,401

Employment Relations Board Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation

302,467 1,623,327

368,522 323,443 1,932,803

604,419 27,463 2,058,918

2013-15 Governor's Balanced Budget

N-91

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Employment Relations Board Other Funds Revenues Business Lic and Fees Charges for Services Admin and Service Charges Sales Income All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

77,100 123,330 1,667,118 17,229 3,810,571

74,850 160,400 1,535,400 4,500 4,399,918

90,100 156,000 1,504,800 4,905 4,446,605

1,621,408 1,471,941 3,093,349

1,932,803 1,862,696 3,795,499

2,058,918 2,092,888 4,151,806

Reversions Ending Balance Other Funds Governor, Office of the Beginning Balance Lottery Funds Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Non-business Lic. and Fees Admin and Service Charges Donations Grants (Non-Fed) Other Revenues

(1,919)

715,303

604,419

294,799

52,849 495,638 10,071,418

84,902 725,001 195,056 31,157,883

84,902 1,065,938 (67,991) 10,304,037

78,890 1,556,274 42,950 96,205

75,000 140,001 309,780 82,500

75,000 40,001 -

2013-15 Governor's Balanced Budget

N-92

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Governor, Office of the

Federal Funds Transfers In Lottery Funds Other Funds All Funds Available for Exp All Expenditures General Fund Lottery Funds Other Funds Federal Funds Total Expenditures Ending Balance Lottery Funds Other Funds Oregon Advocacy Commissions Office Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Donations All Funds Available for Exp

4,189,590

1,973,963 2,419,897 16,788,084

1,855,731 12,184,912 51,000,356

2,358,947 2,664,672 16,525,506

10,071,418 1,941,910 3,768,185 15,781,513

31,157,883 1,855,731 12,646,312 4,189,590 49,849,516

10,304,037 2,365,253 2,812,433 15,481,723

84,902 921,669

84,902 1,065,938

78,596 965,187

7,062 387,791

12,062 368,932

15,262 (6,554) 415,026

21,273 416,126

43,200 424,194

40,960 464,694

2013-15 Governor's Balanced Budget

N-93

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Oregon Advocacy Commissions Office All Expenditures General Fund Other Funds Total Expenditures

366,193 18,125 384,318

368,932 40,000 408,932

415,026 40,960 455,986

Reversions Ending Balance Other Funds Oregon Government Ethics Commission Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Admin and Service Charges Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds

(21,598)

10,210

15,262

8,708

36 162,912

418,337 (200,000) -

202,481 328,573 -

41,855 885,897 5,382 900,000 (41,855) 1,954,227

75,000 800,000 800,000 (75,000) 1,818,337

30,000 1,300,000 1,300,000 (30,000) 3,131,054

162,912 1,244,405

1,615,856

2,376,564

2013-15 Governor's Balanced Budget

N-94

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Oregon Government Ethics Commission

Total Expenditures Ending Balance Other Funds Oregon Liquor Control Comm Beginning Balance Other Funds Other Funds Revenues General Fund Revenues Privilege Taxes Business Lic and Fees Charges for Services Fines and Forfeitures Sales Income Liquor Sales Liquor Cost of Goods Sold Cost of Goods Sold Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds

1,407,317

1,615,856

2,376,564

546,910

202,481

754,490

1,500,000 198,570,000 32,957,892 8,216,151 5,720 1,078,769 699,144 670,698,547 (423,055,087) (10,843,921) 26,602 128,101,562 (478,353,817) 129,601,562

1,500,000 217,341,170 27,557,520 2,608,640 6,000 1,100,000 575,000 719,489,743 (437,108,812) (12,398,190) 25,000 134,176,446 (519,196,071) 135,676,446

1,500,000 250,169,346 26,303,120 3,183,880 6,000 1,042,000 650,000 837,652,654 (511,678,841) (14,430,880) 25,000 146,863,648 (587,700,278) 153,585,649

128,101,562 128,101,562

134,176,446 134,176,446

151,855,824 151,855,824

1,500,000

1,500,000

1,729,825

2013-15 Governor's Balanced Budget

N-95

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Public Employees Retirement System, Oregon Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues Charges for Services Interest Income Retirement System Contribution Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Racing Commission, Oregon Beginning Balance Other Funds Beginning Balance Adjustment Other Funds Other Funds Revenues General Fund Revenues Business Lic and Fees Charges for Services Fines and Forfeitures Pari-Mutuel Receipts

46,116,854,988 12,587,362,730 2,048,535 7,768,291,062 2,257,180,716 1,163,927 77,301,141 (77,380,645) 68,732,822,454

48,904,338,621 2,562,928 7,128,971,400 3,074,179,800 1,023,500 73,165,179 (73,244,679) 59,110,996,749

51,598,305,019 12,587,362,730 429,669,100 13,132,948,250 2,410,280,000 1,167,500 83,948,051 (84,018,051) 80,159,662,599

6,809,664,129 6,809,664,129

7,512,691,730 7,512,691,730

9,361,799,206 9,361,799,206

61,923,158,325

51,598,305,019

70,797,863,393

697,511 1,236,766 1,554,083 357,335 24,450 3,258,980

937,738 (216,886) 1,053,752 1,736,600 396,000 15,000 3,009,800

685,623 108,626 1,228,906 1,641,000 350,000 15,000 3,347,965

2013-15 Governor's Balanced Budget

N-96

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Racing Commission, Oregon Other Funds Revenues Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds Revenue, Dept of Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Personal Income Taxes Corp Excise and Income Taxes Other Employer -Employee Taxes Cigarette Taxes Other Tobacco Products Taxes Amusement Taxes Inheritance Taxes Eastern Oregon Severance Taxes

13,519 74,153 (1,310,919) 5,905,878

(1,053,752) 5,878,252

(1,228,906) 6,148,214

5,076,400 5,076,400

5,192,629 5,192,629

5,386,187 5,386,187

829,478

685,623

762,027

6,259,618 6,843,951 143,053,692

26,522,670 145,198,243

32,116,894 160,293,628

11,680,842,819 15,786,709 32,700,815 471,058,204 335,054,274 40,527,301 3,656,178 5,695,727 14,590

13,474,313,068 477,493,000 323,976,000 50,229,000 3,280,000 -

14,843,978,616 477,493,000 299,679,791 50,897,983 3,280,000 -

2013-15 Governor's Balanced Budget

N-97

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Revenue, Dept of Other Funds Revenues Western Oregon Severance Taxes Other Severance Taxes Other Taxes Business Lic and Fees Admin and Service Charges Fines and Forfeitures Interest Income Donations Sr Citizen Prop Tax Repayments Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

522,199 171,443,401 7,118,917 30,384,624 24,275,096 120,403 1,990,709 31,574,599 3,610,290 149,641,718 (12,942,615,080) 219,560,754

562,400 237,000 151,516,116 8,865,254 34,269,083 13,229,657 1,657,000 38,497,653 34,197,353 48,826,841 (14,619,380,107) 213,490,231

562,400 237,000 151,516,116 6,329,430 37,540,216 16,014,678 1,292,000 38,497,653 21,902,110 53,808,590 (15,955,593,903) 239,846,202

140,240,842 30,918,670 171,159,512

145,198,243 36,175,094 181,373,337

160,293,628 38,371,508 198,665,136

Reversions Ending Balance Other Funds Secretary of State Beginning Balance Other Funds Federal Funds

(2,812,850)

45,588,392

32,116,894

41,181,066

6,308,194 16,772,315

7,725,237 9,286,380

8,215,412 2,391,397

2013-15 Governor's Balanced Budget

N-98

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Secretary of State Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Business Lic and Fees Non-business Lic. and Fees Charges for Services Interest Income Sales Income Loan Repayments Other Revenues Loan Proceeds Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

13,386,882

11,906,971

2,042,527 7,361,291 8,846,089

43,028,797 14,570,307 2,467,953 21,718,569 11,175 245,828 150,000 1,234 150,000 2,398,533

27,388,553 15,447,050 26,940,274 201,877 664,419

27,388,553 15,447,050 32,040,153 201,877 3,006,348

14,305,845 (57,334,642) 78,180,990

14,326,018 (41,714,571) 72,172,208

14,326,018 (41,714,571) 79,552,144

13,154,574 34,795,709 5,632,259 53,582,542

11,906,971 42,099,026 7,559,402 61,565,399

8,846,089 50,770,080 7,715,111 67,331,280

2013-15 Governor's Balanced Budget

N-99

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Secretary of State

Reversions Ending Balance Other Funds Federal Funds State Library Beginning Balance Other Funds Federal Funds General Fund Appropriation Other Funds Revenues Charges for Services Rents and Royalties Interest Income Sales Income Donations Other Revenues Federal Funds Transfers In Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds

(232,308)

10,827,551 13,538,589

8,215,412 2,391,397

7,176,939 5,043,925

1,961,186 3,128,064

2,225,151 2,868,303

1,937,052 140,765 1,679,265

1,815 9,226 3,464 3,956 177,726 33,146 8,898,824

161,500 12,000 33,390 6,350 420,661 18,200 4,888,461

161,500 12,000 33,390 6,350 420,661 18,200 4,753,167

6,009,510 20,226,917

5,385,331 16,019,347

5,349,662 14,512,012

3,128,064 5,904,640 4,475,725

2,868,303 6,325,531 4,747,696

1,679,265 3,093,964 2,463,398

2013-15 Governor's Balanced Budget

N-100

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


State Library

Total Expenditures Ending Balance Other Funds Federal Funds Treasury, Oregon State Beginning Balance Other Funds Other Funds Revenues Charges for Services Interest Income Grants (Non-Fed) Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures Other Funds Total Expenditures Ending Balance Other Funds

13,508,429

13,941,530

7,236,627

2,295,389 4,423,099

1,937,052 140,765

4,844,851 2,430,534

5,285,309 38,575,784 25,180 1,598 5,075,709 (5,075,709) 43,887,871

6,306,929 33,750,062 24,000 250,000 4,189,000 5,182,920 (5,182,920) 44,519,991

5,771,307 48,410,550 24,000 500,000 5,389,000 27,283,103 (27,283,103) 60,094,857

35,450,602 35,450,602

38,748,684 38,748,684

51,529,247 51,529,247

8,437,269

5,771,307

8,565,610

2013-15 Governor's Balanced Budget

N-101

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: LEGISLATIVE BRANCH


Indian Svcs, Comm on Beginning Balance Other Funds General Fund Appropriation Other Funds Revenues Other Revenues All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

1,051 413,427

961 414,602

720 459,293

1,435 415,913

6,190 421,753

6,190 466,203

367,645 1,841 369,486

414,602 6,431 421,033

459,293 6,586 465,879

Reversions Ending Balance Other Funds Legislative Administration Committee Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Charges for Services Fines and Forfeitures Rents and Royalties Sales Income

(45,782)

645

720

324

2,369,122 24,472,822

(31,258) 1,968,344 28,749,433

171,936 730,000 28,765,826

2,864 1,483,265 793,770

2,792 1,200 1,446,345 1,395,535

2,792 1,200 1,101,913 1,211,691

2013-15 Governor's Balanced Budget

N-102

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: LEGISLATIVE BRANCH


Legislative Administration Committee Other Funds Revenues Donations Other Revenues Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

8,831 1,094,599 2,911,256 (2,650,000) 30,486,529

8,500 87,095 33,627,986

9,017 147,283 32,141,658

24,027,383 5,148,441 29,175,824

28,749,433 4,706,617 33,456,050

28,765,826 3,193,248 31,959,074

Reversions Ending Balance Other Funds Legislative Assembly Beginning Balance Other Funds General Fund Appropriation Other Funds Revenues Sales Income Other Revenues All Funds Available for Exp

(445,439)

865,266

171,936

182,584

273,998 32,350,832

222,323 37,132,538

138,438 40,410,379

98,241 32,910 32,755,981

230,309 46,136 37,631,306

257,617 47,467 40,853,901

2013-15 Governor's Balanced Budget

N-103

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: LEGISLATIVE BRANCH


Legislative Assembly All Expenditures General Fund Other Funds Total Expenditures

30,840,594 157,296 30,997,890

37,132,538 360,330 37,492,868

40,410,379 371,490 40,781,869

Reversions Ending Balance Other Funds Legislative Counsel Committee Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Other Funds Revenues Charges for Services Sales Income Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds

(1,510,238)

247,853

138,438

72,032

1,077,040 7,794,245

752,621 8,528,744

735,502 186,962 9,865,811

325,266 1,959,542 1,928,574 (1,654,552) 11,430,115

150,000 1,917,500 1,898,352 (1,890,835) 11,356,382

200,000 1,748,125 2,305,235 (2,305,235) 12,736,400

7,793,217 2,905,630

8,528,744 2,092,136

9,865,811 2,221,116

2013-15 Governor's Balanced Budget

N-104

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: LEGISLATIVE BRANCH


Legislative Counsel Committee

Total Expenditures

10,698,847

10,620,880

12,086,927

Reversions Ending Balance Other Funds Legislative Fiscal Officer

(1,028)

730,240

735,502

649,473

General Fund Appropriation Transfers In Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

5,760,680

5,871,135

6,640,263

100,000 5,860,680

5,871,135

6,640,263

5,516,076 97,516 5,613,592

5,871,135 5,871,135

6,640,263 6,640,263

Reversions Ending Balance Other Funds Legislative Revenue Officer

(244,604)

2,484

General Fund Appropriation

2,084,888

1,996,569

2,318,123

2013-15 Governor's Balanced Budget

N-105

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: LEGISLATIVE BRANCH


Legislative Revenue Officer

All Funds Available for Exp All Expenditures General Fund Total Expenditures

2,084,888

1,996,569

2,318,123

1,977,774 1,977,774

1,996,569 1,996,569

2,318,123 2,318,123

Reversions

(107,114)

PROGRAM AREA: JUDICIAL BRANCH


Judicial Dept Beginning Balance Other Funds Federal Funds Beginning Balance Adjustment Other Funds Federal Funds General Fund Appropriation Other Funds Revenues General Fund Revenues Business Lic and Fees Non-business Lic. and Fees State Court Fees Federal Revenues Charges for Services Fines and Forfeitures General Fund Obligation Bonds Cert of Participation

18,848,057 284,351,512

42,017,588 188,228 (25,319,140) 366,868,202

6,719,737 385,006 (1,770,048) (385,006) 388,828,593

50,481,181 94,955 64,549,804 44,748,062 371,015 4,168,636 106,992,836 5,420,000 12,925,000

122,577,475 61,567 16,323,143 3,451,771 137,804,285 22,026,592 -

118,240,505 80,000 5,567,072 3,617,022 122,982,566 52,268,294 -

2013-15 Governor's Balanced Budget

N-106

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: JUDICIAL BRANCH


Judicial Dept Other Funds Revenues Interest Income Sales Income Donations Grants (Non-Fed) Other Revenues Federal Funds Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Federal Funds Total Expenditures

174,966 1,071,958 1,627,006 8,444,340 1,156,901

1,026,000 486,400 281,084 2,480,124 1,047,391

650,000 500,610 1,247,546 1,490,080

54,171,575 (253,567,191) 406,030,613

22,889,330 (283,541,652) 430,668,388

31,580,232 (258,448,369) 473,553,840

284,107,992 80,904,659 1,099,450 366,112,101

366,868,202 55,844,830 850,613 423,563,645

388,828,593 79,287,816 883,540 468,999,949

Reversions Ending Balance Other Funds Federal Funds Judicial Fitness and Disability, Comm on

(243,520)

39,617,541 57,451

6,719,737 385,006

3,947,351 606,540

General Fund Appropriation

157,988

178,470

199,670

2013-15 Governor's Balanced Budget

N-107

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: JUDICIAL BRANCH


Judicial Fitness and Disability, Comm on

All Funds Available for Exp All Expenditures General Fund Total Expenditures

157,988

178,470

199,670

156,451 156,451

178,470 178,470

199,670 199,670

Reversions

(1,537)

Public Defense Svcs Comm Beginning Balance Other Funds Beginning Balance Adjustment Other Funds General Fund Appropriation Transfers In Other Funds Transfers Out Other Funds All Funds Available for Exp All Expenditures General Fund Other Funds Total Expenditures

855,461 211,391,731

2,715,398 (1,676,107) 222,541,855

704,552 (21,467) 243,961,605

15,314,288 (2,702,967) 224,858,513

6,941,791 (3,446,475) 227,076,462

7,155,518 (2,722,500) 249,077,708

211,374,802 12,144,671 223,519,473

222,541,855 3,830,055 226,371,910

243,961,605 3,207,042 247,168,647

Reversions

(16,929)

2013-15 Governor's Balanced Budget

N-108

Revenue

SCHEDULE IV
SUMMARY OF DETAIL REVENUES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: JUDICIAL BRANCH


Public Defense Svcs Comm Ending Balance Other Funds

1,322,111

704,552

1,909,061

PROGRAM AREA: MISCELLANEOUS PROGRAMS


Emergency Board

General Fund Appropriation

109,364,149

130,762,767

All Funds Available for Exp All Expenditures General Fund Total Expenditures

109,364,149

130,762,767

109,364,149 109,364,149

130,762,767 130,762,767

2013-15 Governor's Balanced Budget

N-109

Revenue

Statewide Summary of 2013-15 Biennium Budget


Governor's Printed Budget
Positions ALL FUNDS General Fund Full-Time Equivalent (FTE) Lottery Funds
1,056,300,380 6,703,657 250,541,858 376,956,137

2013-15 Biennium
Other Funds Federal Funds Nonlimited Other Funds

Description
58,293 16 58,309 50,524.11 58,812,668,209 13,702,055,659 9.05 1,055,438,655 179,810,525 50,515.06 57,757,229,554 13,522,245,134

Nonlimited Federal Funds


3,945,922,488

2011-13 Leg Adopted Budget

11,609,311,043 10,468,995,561 17,154,454,948 111,062,684

2011-13 Emergency Boards

130,363,794 4,076,286,282

2011-13 Leg Approved Budget

1,063,004,037 11,859,852,901 10,845,951,698 17,265,517,632

2013-15 Base Budget Adjustments

Net Cost of Position Actions (3,631) 15,421,569 (492,966,607) (975,380,698) (474,205,658) 54,678 47,571.06 57,483,683,183 14,049,836,981 4,266,392 (4,414,138) 14,241,995 1,152,556 (72,795,965) (441,070,990) (2,953.05) 598,146,368 329,272,935 5,137,187 189,706,321 74,029,925 27,018 (33,134,668) (415,772,472) (150,593,143) (4,250,424) (824,787,555) 3,247,248,303

Administrative Biennialized E-Board, Phase-Out

Estimated Cost of Merit Increase

Base Debt Service Adjustment

Base Nonlimited Adjustment

Capital Construction

Subtotal 2013-15 Base Budget

1,063,727,086 11,536,844,823 10,886,873,973 16,699,152,017

Essential Packages

010 - Non-PICS Pers Svc/Vacancy Factor (1,675) (1,675) (1,441.18) 87,168,806 (1,441.18) 42,132,560 26,129,926 56,218,148 45,036,246 30,088,222 184,578 538,578 723,156 13,915,185 10,168,478 24,083,663 848,261 5,231,535 6,079,796 64,043 64,043 -

Vacancy Factor (Increase)/Decrease

Non-PICS Personal Service (Increase)/Decrease

Subtotal

020 - Phase In / Out Pgm & One-time Cost 119 (14,193) (14,074) (9,090.54) (4,314,916,709) (8,992.38) (3,932,702,209) 98.16 382,214,500 288,823,113 (54,924,581) 233,898,532 8,299,157 (37,201,226) 122,293,456 (80,131,429) (3,157,455,283) (1,021,497,439) (71,832,272) (3,194,656,509) (899,203,983) (907,976) (907,976) (1) (1)

021 - Phase-in

022 - Phase-out Pgm & One-time Costs

Subtotal

030 - Inflation & Price List Adjustments 1,529,653,687 61,665,752 1,591,319,439 822,512,484 12,211,431 834,723,915 70,902,313 (67,586) 70,834,727 227,517,007 37,013,511 264,530,518 408,632,878 12,586,907 421,219,785 89,005 (78,511) 10,494 -

Cost of Goods & Services Increase/(Decrease)

State Gov''t & Services Charges Increase/(Decrease)

Subtotal

040 - Mandated Caseload

2013-15 Governor's Balanced Budget

O-1

Expenditure

Statewide Summary of 2013-15 Biennium Budget


Governor's Printed Budget
Positions ALL FUNDS General Fund Full-Time Equivalent (FTE) Lottery Funds
5,523,281 20,369,402 2,314,426,821

2013-15 Biennium
Other Funds Federal Funds Nonlimited Other Funds
-

Description
390 275.05 2,716,436,850 376,117,346

Nonlimited Federal Funds


-

040 - Mandated Caseload

050 - Fundshifts and Revenue Reductions (1) (1.00) (167,268,025) 802,414,726 (239,273,707) (645,401,213) (85,007,831) -

050 - Fundshifts

060 - Technical Adjustments (2) 39,316 37,409.09 57,770,640,049 16,360,214,548 829,654,037 (2.46) (7,997,995) 7,004,900 (48,234) (23,442,315) 8,157,943 329,711 3,247,248,302

060 - Technical Adjustments

Subtotal: 2013-15 Current Service Level

7,982,328,369 12,652,546,504 16,698,648,289

2013-15 Governor's Balanced Budget

O-2

Expenditure

Statewide Summary of 2013-15 Biennium Budget


Governor's Printed Budget
Positions ALL FUNDS General Fund Full-Time Equivalent (FTE) Lottery Funds
829,654,037

2013-15 Biennium
Other Funds Federal Funds Nonlimited Other Funds

Description
39,316 37,409.09 57,770,640,049 16,360,214,548

Nonlimited Federal Funds


3,247,248,302

Subtotal: 2013-15 Current Service Level

7,982,328,369 12,652,546,504 16,698,648,289

070 - Revenue Reductions/Shortfall (165) 39,151 37,245.55 57,691,570,599 16,360,214,687 824,267,614 (163.54) (79,069,450) 139 (5,386,423) (36,054,753) (35,261,698) (2,366,715) 3,247,248,302

070 - Revenue Shortfalls

Modified 2013-15 Current Service Level

7,946,273,616 12,617,284,806 16,696,281,574

080 - E-Boards (156) (156) 1,489 994.89 2,510,605,800 (935,681,750) 11,206,488 (153.41) (14,196,655) (16,398,618) 11,868 5,046,759 2,221,517,687 (153.41) (14,196,655) (16,398,618) 11,868 5,046,759 (2,856,664) (2,856,664) 1,435,091,250 (167,527,874) (54,000,001)

081 - May 2012 E-Board

082 - September 2012 E-Board

083 - December 2012 E-Board

Subtotal Emergency Board Packages

Subtotal Policy Packages

Total 2013-15 Governor's Budget

40,484

38,087.03 60,187,979,744 15,408,134,319

835,485,970 10,172,838,062 14,049,519,392 16,528,753,700

3,193,248,301

Percentage Change From 2011-13 Leg Approved Budget 3.00% 1.80% 4.20%

-30.60%

-24.60%

2.30%

12.50% -5.80%

-21.40% 0.70%

-14.20% 27.40%

29.50% 11.00%

-4.30% -1.00%

-21.70% -1.70%

Percentage Change From 2013-15 Current Service Level

2013-15 Governor's Balanced Budget

O-3

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Community Coll & Workforce Dvlpmnt, Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 444,663,139 8,307,548 137,636,049 158,865,478 749,472,214 418,489,968 7,144,080 16,674,093 136,278,415 578,586,556 -

Department of Post-Secondary Education General Fund Lottery Funds Other Funds Federal Funds All Funds 1,361,783,209 38,588,459 59,768,192 127,059,427 1,587,199,287

Education, Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 5,094,144,402 664,354,241 163,648,602 1,626,839,674 7,548,986,919 5,501,587,079 608,161,234 170,304,706 1,177,734,777 7,457,787,796 6,279,776,509 357,005,149 205,823,189 1,337,689,731 8,180,294,578

Oregon Education Investment Board General Fund All Funds 7,248,832 7,248,832

Oregon Health and Science University General Fund Other Funds All Funds 77,012,354 96,955,851 173,968,205 66,041,261 100,941,782 166,983,043 -

Oregon University System General Fund 729,654,860 668,264,553 -

2013-15 Governor's Balanced Budget

O-4

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: EDUCATION


Oregon University System Lottery Funds Other Funds Federal Funds All Funds 23,096,954 4,379,634,416 70,823,654 5,203,209,884 22,986,753 4,562,433,284 4,922,075 5,258,606,665 -

Student Access Comm, Oregon General Fund Lottery Funds Other Funds Federal Funds All Funds 87,759,413 6,632,734 17,784,415 917,968 113,094,530 99,891,570 2,630,172 21,457,426 123,979,168 -

Teacher Standards & Practices Comm Other Funds Federal Funds All Funds 5,311,522 5,311,522 5,444,612 85,455 5,530,067 4,951,441 35,000 4,986,441

Education Total General Fund Lottery Funds Other Funds Federal Funds All Funds 6,433,234,168 702,391,477 4,800,970,855 1,857,446,774 $13,794,043,274 6,754,274,431 640,922,239 4,877,255,903 1,319,020,722 $13,591,473,295 7,648,808,550 395,593,608 270,542,822 1,464,784,158 $9,779,729,138

PROGRAM AREA: HUMAN SERVICES


Blind Commission General Fund Other Funds Federal Funds All Funds 1,339,094 2,672,035 10,708,500 14,719,629 1,148,037 2,946,859 11,532,986 15,627,882 1,064,347 3,077,800 10,685,997 14,828,144

2013-15 Governor's Balanced Budget

O-5

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: HUMAN SERVICES


Human Services, Dept. of General Fund Other Funds Federal Funds All Funds 1,791,286,691 334,595,591 5,702,084,466 7,827,966,748 2,140,339,883 452,562,224 5,806,504,097 8,399,406,204 2,332,119,386 483,658,454 6,178,420,487 8,994,198,327

Long Term Care Ombudsman General Fund Other Funds All Funds 1,084,316 1,708,288 2,792,604 1,753,933 583,121 2,337,054 1,977,698 665,965 2,643,663

Oregon Health Authority General Fund Lottery Funds Other Funds Federal Funds All Funds 1,443,369,071 9,587,187 3,890,542,814 4,470,433,387 9,813,932,459 1,697,058,124 10,388,614 5,302,834,551 5,137,327,429 12,147,608,718 2,048,424,832 10,541,165 5,940,798,852 8,244,204,239 16,243,969,088

Psychiatric Security Review Board General Fund Other Funds All Funds 1,214,966 85,133 1,300,099 2,105,264 176,056 2,281,320 2,558,862 2,105 2,560,967

Human Services Total General Fund Lottery Funds Other Funds Federal Funds All Funds 3,238,294,138 9,587,187 4,229,603,861 10,183,226,353 $17,660,711,539 3,842,405,241 10,388,614 5,759,102,811 10,955,364,512 $20,567,261,178 4,386,145,125 10,541,165 6,428,203,176 14,433,310,723 $25,258,200,189

2013-15 Governor's Balanced Budget

O-6

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Corrections, Dept of General Fund Other Funds Federal Funds All Funds 1,206,075,833 285,509,619 111,944,790 1,603,530,242 1,362,844,564 31,298,404 9,079,008 1,403,221,976 1,485,510,100 38,767,828 8,024,382 1,532,302,310

Criminal Justice Comm, Oregon General Fund Other Funds Federal Funds All Funds 4,945,096 185,220 10,110,865 15,241,181 4,761,327 299,950 19,499,190 24,560,467 13,668,122 283,422 7,135,887 21,087,431

District Attorneys and their Deputies General Fund All Funds 10,381,113 10,381,113 10,339,261 10,339,261 10,439,473 10,439,473

Justice, Dept of General Fund Other Funds Federal Funds All Funds 51,826,581 222,595,522 118,839,865 393,261,968 53,831,443 235,522,507 122,458,124 411,812,074 64,428,072 274,524,910 154,908,400 493,861,382

Military Dept, Oregon General Fund Other Funds Federal Funds All Funds 22,898,158 88,865,130 207,961,728 319,725,016 28,412,492 130,114,866 288,377,938 446,905,296 21,209,237 101,303,932 280,784,135 403,297,304

Oregon Youth Authority General Fund Other Funds Federal Funds 251,231,118 10,625,938 28,624,903 256,050,831 13,173,713 31,107,232 272,802,423 19,120,131 36,702,391

2013-15 Governor's Balanced Budget

O-7

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: PUBLIC SAFETY


Oregon Youth Authority All Funds 290,481,959 300,331,776 328,624,945

Parole & Post Prison Supervision, State Board of General Fund Other Funds All Funds 3,695,294 6,280 3,701,574 3,641,093 10,289 3,651,382 3,964,912 10,536 3,975,448

Police, Dept of State General Fund Lottery Funds Other Funds Federal Funds All Funds 216,286,946 6,511,667 82,597,416 7,627,721 313,023,750 221,721,695 6,855,630 93,876,661 9,644,097 332,098,083 238,147,884 4,924,882 91,310,297 9,158,454 343,541,517

Public Safety Standards & Training, Dept of General Fund Other Funds Federal Funds All Funds 11,360,288 31,047,286 52,524 42,460,098 11,283,810 32,962,299 57,513 44,303,622 10,136,429 33,566,260 58,893 43,761,582

Public Safety Total General Fund Lottery Funds Other Funds Federal Funds All Funds 1,778,700,427 6,511,667 721,432,411 485,162,396 $2,991,806,901 1,952,886,516 6,855,630 537,258,689 480,223,102 $2,977,223,937 2,120,306,652 4,924,882 558,887,316 496,772,542 $3,180,891,392

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Employment Dept General Fund Other Funds 2,756,233 2,503,262,272 3,234,080 2,204,792,794 1,771,109,998

2013-15 Governor's Balanced Budget

O-8

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ECONOMIC & COMMUNITY DEVELOPMENT


Employment Dept Federal Funds All Funds 3,332,073,829 5,838,092,334 1,296,595,387 3,504,622,261 266,568,665 2,037,678,663

Housing & Community Svcs Dept General Fund Lottery Funds Other Funds Federal Funds All Funds 9,524,010 8,454,527 855,562,067 377,058,594 1,250,599,198 11,462,436 10,464,685 730,101,781 312,269,422 1,064,298,324 7,760,573 10,010,599 514,308,563 131,332,216 663,411,951

Oregon Business Development Department General Fund Lottery Funds Other Funds Federal Funds All Funds 8,926,180 106,424,887 238,270,078 28,428,854 382,049,999 3,842,479 138,677,228 285,900,158 50,172,649 478,592,514 9,226,734 134,786,640 380,777,279 38,527,951 563,318,604

Veterans' Affairs, Oregon Dept of General Fund Other Funds Federal Funds All Funds 5,887,682 536,633,176 1,970,508 544,491,366 6,562,195 498,412,824 19,362,748 524,337,767 7,791,637 379,004,888 386,796,525

Economic & Community Development Total General Fund Lottery Funds Other Funds Federal Funds All Funds 27,094,105 114,879,414 4,133,727,593 3,739,531,785 $8,015,232,897 25,101,190 149,141,913 3,719,207,557 1,678,400,206 $5,571,850,866 24,778,944 144,797,239 3,045,200,728 436,428,832 $3,651,205,743

2013-15 Governor's Balanced Budget

O-9

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Agriculture, Oregon Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 12,998,069 8,709,513 45,564,865 9,796,616 77,069,063 12,108,804 7,827,343 52,140,502 11,944,869 84,021,518 18,685,836 5,820,238 53,360,846 15,148,657 93,015,577

Columbia River Gorge Comm General Fund Other Funds All Funds 813,817 2,377 816,194 814,846 5,000 819,846 1,075,598 5,140 1,080,738

Energy, Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 516,894 196,551,776 28,793,085 225,861,755 2,164,185 207,642,071 36,845,835 246,652,091 500,000 3,437,724 223,327,790 2,980,934 230,246,448

Environmental Quality, Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 30,796,820 5,415,717 236,328,939 33,043,015 305,584,491 25,011,536 4,502,197 265,892,704 30,728,115 326,134,552 31,169,735 3,899,218 271,692,916 27,911,636 334,673,505

Fish & Wildlife, Oregon Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 13,225,857 5,801,126 148,567,890 95,917,881 263,512,754 6,779,844 5,824,398 197,564,072 109,934,486 320,102,800 17,950,899 5,010,442 158,284,745 127,213,605 308,459,691

2013-15 Governor's Balanced Budget

O-10

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Forestry, Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 42,924,304 1,374,136 177,228,140 28,074,483 249,601,063 50,181,631 2,542,314 197,855,667 44,278,675 294,858,287 55,829,977 3,319,996 224,372,889 30,800,762 314,323,624

Geology & Mineral Industries, Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 2,675,269 499,999 7,733,956 3,492,611 14,401,835 2,464,702 9,034,864 5,268,289 16,767,855 2,575,953 7,848,295 4,308,092 14,732,340

Land Conservation & Development, Dept of General Fund Other Funds Federal Funds All Funds 15,258,551 1,309,575 4,790,276 21,358,402 11,132,225 1,457,573 5,857,281 18,447,079 12,769,089 1,190,188 6,100,788 20,060,065

Land Use Board of Appeals General Fund Other Funds All Funds 1,412,424 64,014 1,476,438 1,295,278 83,620 1,378,898 1,442,194 85,384 1,527,578

Lands, Dept of State General Fund Other Funds Federal Funds All Funds 1,934,790 30,430,351 3,497,375 35,862,516 681,266 56,606,121 6,099,914 63,387,301 37,019,591 1,565,323 38,584,914

2013-15 Governor's Balanced Budget

O-11

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: NATURAL RESOURCES


Marine Board, Oregon State Other Funds Federal Funds All Funds 22,201,108 6,188,391 28,389,499 23,287,102 6,683,394 29,970,496 26,028,371 7,443,149 33,471,520

Parks & Recreation Dept Lottery Funds Other Funds Federal Funds All Funds 86,441,978 86,786,404 8,639,850 181,868,232 81,546,565 99,228,158 15,785,886 196,560,609 88,155,577 112,859,681 9,978,541 210,993,799

Water Resources Dept General Fund Lottery Funds Other Funds Federal Funds All Funds 19,268,371 348,455 9,560,735 646,093 29,823,654 20,359,297 732,384 29,162,165 1,195,479 51,449,325 25,109,984 1,623,026 37,963,256 1,275,645 65,971,911

Watershed Enhancement Board, Oregon Lottery Funds Other Funds Federal Funds All Funds 59,881,320 1,833,021 20,911,187 82,625,528 64,012,066 1,773,534 45,479,276 111,264,876 58,189,608 1,852,731 32,748,762 92,791,101

Natural Resources Total General Fund Lottery Funds Other Funds Federal Funds All Funds 141,308,272 168,989,138 964,163,151 243,790,863 $1,518,251,424 130,829,429 169,151,452 1,141,733,153 320,101,499 $1,761,815,533 167,109,265 169,455,829 1,155,891,823 267,475,894 $1,759,932,811

2013-15 Governor's Balanced Budget

O-12

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: TRANSPORTATION


Aviation, Dept of Other Funds Federal Funds All Funds 7,320,330 3,711,681 11,032,011 5,676,565 3,472,055 9,148,620 6,098,002 4,769,741 10,867,743

Transportation, Oregon Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 16,912,732 80,439,321 3,638,124,689 115,635,252 3,851,111,994 2,000,010 72,614,930 3,612,093,441 138,766,726 3,825,475,107 2,757,944 95,261,416 3,856,037,449 123,236,003 4,077,292,812

Transportation Total General Fund Lottery Funds Other Funds Federal Funds All Funds 16,912,732 80,439,321 3,645,445,019 119,346,933 $3,862,144,005 2,000,010 72,614,930 3,617,770,006 142,238,781 $3,834,623,727 2,757,944 95,261,416 3,862,135,451 128,005,744 $4,088,160,555

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Accountancy, Board of Other Funds All Funds 1,557,481 1,557,481 2,048,572 2,048,572 1,924,185 1,924,185

Chiropractic Examiners, State Board of Other Funds All Funds 1,221,987 1,221,987 1,261,261 1,261,261 1,475,711 1,475,711

Construction Contractors Board Other Funds All Funds 13,799,101 13,799,101 15,137,443 15,137,443 15,944,713 15,944,713

2013-15 Governor's Balanced Budget

O-13

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Consumer and Business Svcs, Dept of Other Funds Federal Funds All Funds 384,164,640 610,545 384,775,185 398,295,124 3,187,699 401,482,823 410,761,704 984,618 411,746,322

Health Related Licensing Boards Medical Imaging - OF Mortuary Board - OF Naturopathic Medicine - OF Occupational Therapists - OF Speech-Language Path. and Audio. - OF Veterinary Medical Examiners - OF All Boards 589,631 1,160,298 518,818 286,131 362,046 548,262 3,465,186 749,594 1,320,994 598,123 363,959 404,495 701,629 4,138,794 838,505 1,412,605 633,011 368,816 625,070 743,308 4,621,315

Labor & Industries, Bureau of General Fund Other Funds Federal Funds All Funds 11,832,787 8,346,180 1,065,281 21,244,248 11,068,996 10,982,406 1,355,627 23,407,029 11,827,236 11,119,453 1,498,766 24,445,455

Licensed Prof Counselors and Therapists, Board of Other Funds All Funds 903,449 903,449 932,509 932,509 1,110,188 1,110,188

Licensed Social Workers, Board of Other Funds All Funds 1,013,929 1,013,929 1,244,968 1,244,968 1,359,094 1,359,094

Nursing, Board of Other Funds All Funds 12,184,268 12,184,268 13,988,205 13,988,205 14,655,274 14,655,274

2013-15 Governor's Balanced Budget

O-14

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Oregon Board of Dentistry Other Funds All Funds 2,159,597 2,159,597 2,502,044 2,502,044 2,614,968 2,614,968

Oregon Health Licensing Agency Other Funds All Funds 6,433,623 6,433,623 6,591,815 6,591,815 7,657,718 7,657,718

Oregon Medical Board Other Funds All Funds 9,373,666 9,373,666 10,028,550 10,028,550 10,625,050 10,625,050

Pharmacy, Board of Other Funds All Funds 4,478,980 4,478,980 5,111,603 5,111,603 5,817,527 5,817,527

Psychologist Examiners, State Board of Other Funds All Funds 883,233 883,233 965,662 965,662 1,024,920 1,024,920

Public Utility Commission Other Funds Federal Funds All Funds 119,657,557 2,222,486 121,880,043 114,677,490 4,813,925 119,491,415 119,164,283 2,444,367 121,608,650

Real Estate Agency Other Funds All Funds 6,772,329 6,772,329 7,461,430 7,461,430 7,121,715 7,121,715

Tax Practitioners, State Board of Other Funds 1,013,888 1,098,646 1,164,493

2013-15 Governor's Balanced Budget

O-15

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: CONSUMER & BUSINESS SERVICES


Tax Practitioners, State Board of All Funds 1,013,888 1,098,646 1,164,493

Consumer & Business Services Total General Fund Other Funds Federal Funds All Funds 11,832,787 577,429,094 3,898,312 $593,160,193 11,068,996 596,466,522 9,357,251 $616,892,769 11,827,236 618,162,311 4,927,751 $634,917,298

PROGRAM AREA: ADMINISTRATION


Administrative Svcs, Dept of General Fund Lottery Funds Other Funds Federal Funds All Funds 13,199,411 8,203,164 1,023,991,813 47,000 1,045,441,388 8,411,014 12,073,528 1,018,161,488 1 1,038,646,031 10,591,310 12,546,578 1,004,135,575 1,027,273,463

Citizens Initiative Review Commission Other Funds All Funds 1 1 16,401 16,401

Employment Relations Board General Fund Other Funds All Funds 1,621,408 1,471,941 3,093,349 1,932,803 1,862,696 3,795,499 2,058,918 2,092,888 4,151,806

Governor, Office of the General Fund Lottery Funds Other Funds Federal Funds 10,071,418 1,941,910 3,768,185 31,157,883 1,855,731 12,646,312 4,189,590 10,304,037 2,365,253 2,812,433 -

2013-15 Governor's Balanced Budget

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Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Governor, Office of the All Funds 15,781,513 49,849,516 15,481,723

Oregon Advocacy Commissions Office General Fund Other Funds All Funds 366,193 18,125 384,318 368,932 40,000 408,932 415,026 40,960 455,986

Oregon Government Ethics Commission General Fund Other Funds All Funds 162,912 1,244,405 1,407,317 1,615,856 1,615,856 2,376,564 2,376,564

Oregon Liquor Control Comm Other Funds All Funds 128,101,562 128,101,562 134,176,446 134,176,446 151,855,824 151,855,824

Public Employees Retirement System, Oregon Other Funds All Funds 6,809,664,129 6,809,664,129 7,512,691,730 7,512,691,730 9,361,799,206 9,361,799,206

Racing Commission, Oregon Other Funds All Funds 5,076,400 5,076,400 5,192,629 5,192,629 5,386,187 5,386,187

Revenue, Dept of General Fund Other Funds All Funds 140,240,842 30,918,670 171,159,512 145,198,243 36,175,094 181,373,337 160,293,628 38,371,508 198,665,136

Secretary of State General Fund 13,154,574 11,906,971 8,846,089

2013-15 Governor's Balanced Budget

O-17

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ADMINISTRATION


Secretary of State Other Funds Federal Funds All Funds 34,795,709 5,632,259 53,582,542 42,099,026 7,559,402 61,565,399 50,770,080 7,715,111 67,331,280

State Library General Fund Other Funds Federal Funds All Funds 3,128,064 5,904,640 4,475,725 13,508,429 2,868,303 6,325,531 4,747,696 13,941,530 1,679,265 3,093,964 2,463,398 7,236,627

Treasury, Oregon State Other Funds All Funds 35,450,602 35,450,602 38,748,684 38,748,684 51,529,247 51,529,247

Administration Total General Fund Lottery Funds Other Funds Federal Funds All Funds 181,944,822 10,145,074 8,080,406,181 10,154,984 $8,282,651,061 201,844,149 13,929,259 8,809,735,493 16,496,689 $9,042,005,590 194,188,273 14,911,831 10,674,280,837 10,178,509 $10,893,559,450

PROGRAM AREA: LEGISLATIVE BRANCH


Indian Svcs, Comm on General Fund Other Funds All Funds 367,645 1,841 369,486 414,602 6,431 421,033 459,293 6,586 465,879

Legislative Administration Committee General Fund Other Funds 24,027,383 5,148,441 28,749,433 4,706,617 28,765,826 3,193,248

2013-15 Governor's Balanced Budget

O-18

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: LEGISLATIVE BRANCH


Legislative Administration Committee All Funds 29,175,824 33,456,050 31,959,074

Legislative Assembly General Fund Other Funds All Funds 30,840,594 157,296 30,997,890 37,132,538 360,330 37,492,868 40,410,379 371,490 40,781,869

Legislative Counsel Committee General Fund Other Funds All Funds 7,793,217 2,905,630 10,698,847 8,528,744 2,092,136 10,620,880 9,865,811 2,221,116 12,086,927

Legislative Fiscal Officer General Fund Other Funds All Funds 5,516,076 97,516 5,613,592 5,871,135 5,871,135 6,640,263 6,640,263

Legislative Revenue Officer General Fund All Funds 1,977,774 1,977,774 1,996,569 1,996,569 2,318,123 2,318,123

Legislative Branch Total General Fund Other Funds All Funds 70,522,689 8,310,724 $78,833,413 82,693,021 7,165,514 $89,858,535 88,459,695 5,792,440 $94,252,135

PROGRAM AREA: JUDICIAL BRANCH


Judicial Dept General Fund Other Funds Federal Funds 284,107,992 80,904,659 1,099,450 366,868,202 55,844,830 850,613 388,828,593 79,287,816 883,540

2013-15 Governor's Balanced Budget

O-19

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: JUDICIAL BRANCH


Judicial Dept All Funds 366,112,101 423,563,645 468,999,949

Judicial Fitness and Disability, Comm on General Fund All Funds 156,451 156,451 178,470 178,470 199,670 199,670

Public Defense Svcs Comm General Fund Other Funds All Funds 211,374,802 12,144,671 223,519,473 222,541,855 3,830,055 226,371,910 243,961,605 3,207,042 247,168,647

Judicial Branch Total General Fund Other Funds Federal Funds All Funds 495,639,245 93,049,330 1,099,450 $589,788,025 589,588,527 59,674,885 850,613 $650,114,025 632,989,868 82,494,858 883,540 $716,368,266

PROGRAM AREA: MISCELLANEOUS PROGRAMS


Emergency Board General Fund All Funds 109,364,149 109,364,149 130,762,767 130,762,767

Miscellaneous Programs Total General Fund All Funds 109,364,149 $109,364,149 130,762,767 $130,762,767

PROGRAM AREA: ALL PROGRAM AREAS


All Agencies General Fund Lottery Funds Other Funds 12,395,483,385 1,092,943,278 27,254,538,219 13,702,055,659 1,063,004,037 29,125,370,533 15,408,134,319 835,485,970 26,701,591,762

2013-15 Governor's Balanced Budget

O-20

Expenditure

SCHEDULE V
SUMMARY OF TOTAL EXPENDITURES BY PROGRAM AREA, BY AGENCY, BY FUND 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

PROGRAM AREA: ALL PROGRAM AREAS


All Agencies Federal Funds All Funds 16,643,657,850 $57,386,622,732 14,922,053,375 $58,812,483,604 17,242,767,693 $60,187,979,744

NON-ADD EXPENDITURES ** INCLUDED IN TOTAL EXPENDITURES Administrative Svcs, Dept of Employment Dept Justice, Dept of Oregon Health Authority Secretary of State Treasury, Oregon State All Funds $59,489,337 $27,790,876 $134,729,411 $916,628,846 $14,630,399 $35,450,602 $1,188,719,471 $71,060,913 $27,535,638 $141,315,545 $1,413,956,621 $16,949,422 $38,748,684 $1,709,566,823 $87,243,049 $25,501,985 $175,979,919 $1,761,489,735 $18,183,958 $51,529,247 $2,119,927,893

* See agency narrative section for complete Agency Request information. ** FOR INFORMATION ONLY - Total expenditures represent the expenditure limitation agencies require to execute their budget. Non-add expenditures, which are a part of Total Expenditures, are generally intra-agency transfers that fund administrative functions and are paid for by agency programs.

2013-15 Governor's Balanced Budget

O-21

Expenditure

SCHEDULE VI
SUMMARY OF EXPENDITURES BY CATEGORY BY FUND Fund 2009-11 Actuals 2011-13 Leg Approved Budget
2,963,852,689 74,367,850 (209,430,993) 4,430,632,935 1,043,181,565 $8,512,035,039 1,058,504,501 50,544,597 4,650,792,331 (1,462,788,357) 682,711,979 $6,442,553,408 28,699,161 1,844,303 730,788,125 (835,491) 66,642,881 $827,974,470 9,280,424,393 677,191,805 (36,511,982) 15,629,799,416 13,097,336,106 $38,684,751,720 370,574,915 259,055,482 1,973,790,903 32,180,844 $2,635,602,144 13,702,055,659 1,063,004,037 27,415,803,710 (1,709,566,823) 14,922,053,375 $57,102,916,781

2013-15 Governor's Budget


2,784,841,863 75,264,026 (237,825,560) 2,350,192,240 1,139,207,248 $6,349,505,377 1,112,559,114 44,628,322 3,616,262,896 (1,849,474,562) 726,557,709 $5,500,008,041 16,620,469 1,613,282 311,868,522 (15,830,421) 38,844,381 $368,946,654 11,111,622,898 449,440,234 (16,797,350) 16,752,027,699 15,310,227,936 $43,623,318,767 382,489,975 264,540,106 1,551,312,512 27,930,419 $2,226,273,012 15,408,134,319 835,485,970 24,581,663,869 (2,119,927,893) 17,242,767,693 $58,068,051,851

Personal Services

General Fund Lottery Funds Other Funds - NA Other Funds Federal Funds Total

2,489,220,687 64,400,703 (195,779,932) 3,914,710,466 1,190,595,899 $7,658,927,755 1,071,095,270 47,558,159 4,224,209,552 (967,803,107) 543,806,347 $5,886,669,328 16,854,819 19,892,117 882,588,072 (1,499,599) 63,210,662 $982,545,670 8,527,503,281 712,926,908 (23,636,833) 14,517,988,862 14,831,453,215 $38,589,872,266 290,809,328 248,165,391 2,526,321,796 14,591,727 $3,079,888,242 12,395,483,385 1,092,943,278 26,065,818,748 (1,188,719,471) 16,643,657,850 $56,197,903,261

Services & Supplies

General Fund Lottery Funds Other Funds Other Funds - NA Federal Funds Total

Capital Outlay

General Fund Lottery Funds Other Funds Other Funds - NA Federal Funds Total

Special Payments

General Fund Lottery Funds Other Funds - NA Other Funds Federal Funds Total

Debt Service

General Fund Lottery Funds Other Funds - NA Other Funds Federal Funds Total

Total - All Expenditures

General Fund Lottery Funds Other Funds Other Funds - NA Federal Funds Total

( ) Non-add expenditures displayed for information only; not included in totals.

2013-15 Governor's Balanced Budget

O-22

Expenditure

SCHEDULE VII
NUMBER OF FULL-TIME EQUIVALENT POSITIONS BY PROGRAM AREA, BY AGENCY 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

EDUCATION Community Coll & Workforce Dvlpmnt, Dept of Department of Post-Secondary Education Education, Dept of Oregon Education Investment Board Oregon University System Student Access Comm, Oregon Teacher Standards & Practices Comm EDUCATION TOTAL 60.58 381.74 12,898.40 27.00 25.00 13,392.72 61.45 357.79 13,015.02 26.33 24.00 13,484.59 98.37 448.26 19.00 19.25 584.88

HUMAN SERVICES Blind Commission Human Services, Dept. of Long Term Care Ombudsman Oregon Health Authority Psychiatric Security Review Board HUMAN SERVICES TOTAL 47.73 7,494.32 10.50 3,665.65 6.89 11,225.09 44.60 7,311.44 10.75 3,980.27 11.76 11,358.82 40.23 7,675.10 10.75 4,137.31 12.00 11,875.39

PUBLIC SAFETY Corrections, Dept of Criminal Justice Comm, Oregon District Attorneys and their Deputies Justice, Dept of Military Dept, Oregon Oregon Youth Authority Parole & Post Prison Supervision, State Board of Police, Dept of State Public Safety Standards & Training, Dept of PUBLIC SAFETY TOTAL 4,531.55 9.50 36.00 1,326.62 490.62 1,120.51 15.00 1,292.35 145.63 8,967.78 4,414.55 9.00 36.00 1,268.55 448.30 979.76 14.00 1,216.63 132.04 8,518.83 4,471.88 7.50 36.00 1,278.15 461.01 992.58 14.00 1,245.75 127.54 8,634.41

ECONOMIC & COMMUNITY DEVELOPMENT Employment Dept Housing & Community Svcs Dept Oregon Business Development Department 1,608.46 160.48 125.72 1,450.95 184.39 129.87 1,297.20 71.18 131.50

2013-15 Governor's Balanced Budget

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Expenditure

SCHEDULE VII
NUMBER OF FULL-TIME EQUIVALENT POSITIONS BY PROGRAM AREA, BY AGENCY 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

ECONOMIC & COMMUNITY DEVELOPMENT Veterans' Affairs, Oregon Dept of ECONOMIC & COMMUNITY DEVELOPMENT TOTAL 106.79 2,001.45 94.00 1,859.21 81.20 1,581.08

NATURAL RESOURCES Agriculture, Oregon Dept of Energy, Dept of Environmental Quality, Dept of Fish & Wildlife, Oregon Dept of Forestry, Dept of Geology & Mineral Industries, Dept of Land Conservation & Development, Dept of Land Use Board of Appeals Lands, Dept of State Marine Board, Oregon State Parks & Recreation Dept Water Resources Dept Watershed Enhancement Board, Oregon NATURAL RESOURCES TOTAL 357.08 120.08 790.13 1,201.96 868.31 40.74 80.57 6.00 107.46 41.38 603.07 146.26 31.00 4,394.04 343.29 118.73 710.92 1,225.99 852.19 48.57 55.11 5.00 106.42 39.50 603.03 144.59 31.50 4,284.84 349.02 114.18 707.90 1,257.91 873.48 49.20 58.16 5.00 105.00 39.50 599.31 159.42 31.00 4,349.08

TRANSPORTATION Aviation, Dept of Transportation, Oregon Dept of TRANSPORTATION TOTAL 16.38 4,547.06 4,563.44 11.50 4,521.79 4,533.29 12.50 4,455.13 4,467.63

CONSUMER & BUSINESS SERVICES Accountancy, Board of Chiropractic Examiners, State Board of Construction Contractors Board Consumer and Business Svcs, Dept of Health Related Licensing Boards Mortuary Board Naturopathic Medicine Occupational Therapists 6.34 2.33 1.25 5.71 2.50 1.25 5.71 2.50 1.25 7.00 4.50 76.50 1,051.06 7.00 4.50 76.00 922.40 7.00 4.88 75.00 919.47

2013-15 Governor's Balanced Budget

O-24

Expenditure

SCHEDULE VII
NUMBER OF FULL-TIME EQUIVALENT POSITIONS BY PROGRAM AREA, BY AGENCY 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

CONSUMER & BUSINESS SERVICES Medical Imaging Speech-Language Path. and Audio. Veterinary Medical Examiners Labor & Industries, Bureau of Licensed Prof Counselors and Therapists, Board of Licensed Social Workers, Board of Nursing, Board of Oregon Board of Dentistry Oregon Health Licensing Agency Oregon Medical Board Pharmacy, Board of Psychologist Examiners, State Board of Public Utility Commission Real Estate Agency Tax Practitioners, State Board of CONSUMER & BUSINESS SERVICES TOTAL 3.00 1.63 2.75 106.38 3.25 4.18 48.75 7.00 34.25 40.46 19.00 4.00 129.08 31.24 4.00 1,587.95 3.25 1.40 2.75 101.00 3.50 5.45 46.75 7.00 33.00 38.79 17.75 3.50 128.75 30.00 4.00 1,446.25 3.00 2.50 2.75 98.50 3.50 6.00 47.80 7.00 35.00 38.79 19.00 3.50 127.75 30.00 4.00 1,444.90

ADMINISTRATION Administrative Svcs, Dept of Employment Relations Board Governor, Office of the Oregon Advocacy Commissions Office Oregon Government Ethics Commission Oregon Liquor Control Comm Public Employees Retirement System, Oregon Racing Commission, Oregon Revenue, Dept of Secretary of State State Library Treasury, Oregon State ADMINISTRATION TOTAL 812.34 12.50 70.00 2.00 8.00 230.18 361.80 14.52 1,016.10 197.30 42.26 83.10 2,850.10 769.67 13.00 69.75 2.00 8.00 231.72 364.08 13.27 990.84 195.69 41.26 83.48 2,782.76 798.92 13.00 53.50 2.00 7.00 227.63 370.00 13.27 962.49 204.37 19.63 111.10 2,782.91

2013-15 Governor's Balanced Budget

O-25

Expenditure

SCHEDULE VII
NUMBER OF FULL-TIME EQUIVALENT POSITIONS BY PROGRAM AREA, BY AGENCY 2009-11 Actuals 2011-13 Leg Approved Budget 2013-15 Governor's Budget

LEGISLATIVE BRANCH Indian Svcs, Comm on Legislative Administration Committee Legislative Assembly Legislative Counsel Committee Legislative Fiscal Officer Legislative Revenue Officer LEGISLATIVE BRANCH TOTAL 2.00 99.01 207.36 45.28 20.50 7.00 381.15 2.00 100.79 251.39 45.28 20.50 7.00 426.96 2.00 108.47 251.27 45.28 20.50 7.00 434.52

JUDICIAL BRANCH Judicial Dept Judicial Fitness and Disability, Comm on Public Defense Svcs Comm JUDICIAL BRANCH TOTAL STATE OF OREGON TOTAL FTE POSITIONS 1,904.08 0.50 68.96 1,973.54 51,337.26 1,752.66 0.50 75.40 1,828.56 50,524.11 1,855.94 0.50 75.79 1,932.23 38,087.03

Per ORS 291.216 (9)(b) and (c), 4,281 positions were vacant on July 1, 2012. The vacancy rate on that date was 11.15 percent. Oregon University System data is not included.
Per ORS 291.216 (9)(b) and (c), 4,281 positions were vacant on July 1, 2012. The vacancy rate on that date was 11.15 percent. Oregon University System data is not included.

2013-15 Governor's Balanced Budget

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Expenditure

Expenditure

STATUTORY LIMITS
Revenues in Excess of Estimate (ORS 291.349)
This law was passed in 1979. It directs the state to give credits to taxpayers if certain conditions are met. Personal income taxpayers receive a credit if all other General Fund revenue is more than two percent above forecast. This is commonly known as the kicker. In November 2000, voters passed Measure 86 which places the kicker in the Oregon Constitution. The calculation is based on the forecast that is issued at the end of each legislative session. Actual receipts collected for the two-year period are compared with this forecast. If revenue is two percent or more above the forecast, a credit is due to taxpayers. The Department of Administrative Services (DAS) certifies the amount of any credit in September of odd-numbered years. Individual taxpayers receive their credits in the form of a refund against the prior tax year. The Department of Revenue manages this process. Refund checks are mailed out by December 1 following the end of the biennium. The Governors Balanced Budget proposal for the next two years is based on the December 2012 revenue forecast. This forecast does not anticipate a kicker credit for individual taxpayers for 2011-13.

Appropriations Limit (ORS 291.357)


The 2001 Legislature passed House Bill 3997 that set a new limit on state appropriations. It replaced ORS 391.355 that set limits only on the General Fund. The law places limits on all governmental activities as defined by the Governmental Accounting Standards Board. The budget cannot exceed eight percent of the projected personal income in Oregon. The income data comes from the U.S. Department of Commerce and is printed by the Oregon Department of Administrative Services. The law states that the final comparison shall be based on the last forecast before the Legislature adjourns. Personal income. The December 2012 revenue forecast projects Oregons total personal income for the next biennium to be $328.62 billion. Based on that figure, the 8.0 percent limit is $26.29 billion. Subject appropriations. By definition, certain activities are exempt from the statute. Fiduciary activities (retirement, unemployment, benefit funds, etc.) and business activities (loan programs, enterprise programs, etc.) are excluded.

For 2013-15, the Governors Balanced Budget, when adjusted a