2013 legislative summary

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AFT-Oregon 2013 Regular and Special Session Scorecard

Summary of Major Legislation The following is a summary of major pieces of legislation central to the priorities of AFT-Oregon members.

Retirement Security SB 822 (PERS Reform) applies a new formula to retirees’ cost-of-living adjustment (COLA) increases. Previously, all retirees received an annual 2% COLA. Under SB 822, retirees will now receive the 2% increase on their first $20,000 of retirement income. At that point, the COLA then gradually decreases: retirees will receive 1.5% on any retirement income between $20,001 and $40,000, 1% on retirement income from $40,001 to $60,000 and 0.25% on all retirement income above $60,000. Frank Goulard, Local 2277 (PCCFFAP) president testified how the COLA would affect AFT-Oregon members. Unfortunately, this bill passed the House and Senate and was signed into law. The COLA was intended to help retirees on a fixed income keep up with inflation and we believe these changes constitute a breach of contract. AFT-Oregon, along with members of the PERS Coalition, are pursuing litigation to overturn SB 822.

2013 Special Session A Special Session of the Oregon Legislature, called by Governor Kitzhaber, convened on September 20, 2013. While the intent was for the session to last only one day, lawmakers considered five pieces of legislation over an extended three day period. Two of the three pieces of legislation considered were to make further cuts to the Public Employees Retirement System (PERS). Unfortunately both PERS bills passed during the Special Session. It is also important to note that through the work AFT-Oregon members did emailing, calling and meeting with their legislators we were able to once again fight back any attacks on so-called “inactive” PERS members. These PERS bills were paired with three other pieces of legislation: a bad tax bill that included a cigarette tax as well as tax cut for the wealthiest Oregonians; a bill that limits local government’s ability regulate genetically modified plants; and a bill appropriating the PERS and revenue funds to Oregon’s schools.

Further Cuts to PERS Cost-of Living (SB 861)

AFT-Oregon: Oppose Status: Signed by the Governor This legislation cut the cost-of-living for current and future PERS retirees to 1.25% on annual benefits up to $60,000 and 0.15% on benefits greater than $60,000. Additionally the bill requires a 0.25% supplement payment to retirees earning less than $20,000.

PERS Fixes Bill (SB 862)

AFT-Oregon: Neutral Status: Signed by the Governor This bill made a few fixes to PERS, including an exclusion for future legislators who are not already members to join PERS and preventing some convicted felons from receiving benefits.

Special Session Revenue Bill (HB 3601)

AFT-Oregon: Opposed Status: Signed by the Governor Our hopes for a real, progressive revenue bill were dashed during legislative negotiations. The bill eventually included a cigarette tax to fund mental health, an adjustment to the senior medical deduction and tax cuts for some wealthy business owners. The tax cuts will effectively cancel almost all of the $189 million that is to be raised.

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AFT-Oregon 2013 Regular and Special Session Scorecard

The Grand Bargain The so-called “grand bargain” was a package of two separate bills. One raised revenue, which AFT-Oregon supported. And the other made further cuts to the cost of living adjustment to PERS retirees and cuts to the money match for “inactive” PERS members, which AFT-Oregon strongly opposed. HB 2456, the revenue bill would have raised $200 million, with $100 million going to K-12, $40 million to colleges and universities, and the rest to senior services and mental health services. The revenue bill would have been funded mainly by increasing corporate taxes, increasing personal deductions on income for the wealthy, changing eligibility for senior medical expenses, and raising tobacco taxes. During the process AFT-Oregon President Rives testified in opposition to the PERS bill, highlighting the stories of AFT-Oregon “inactive” members, and submitting written testimony of members’ stories for the Daniel Holder, Danny Ritter, Ashley Bromley and Eric Coker were among record. the Local 6069 (CGE) members to join CAUSA for Immigrant Spring in OrThe revenue bill needed to receive the three-fifths egon on Wednesday, May 1, at the state capitol. Immigrants, labor unions, supermajority to pass, but died in a 15 to 15 vote. businesses, students, members of LGBT communities, women, children, Because the Senate could not pass the revenue package, Latinos, and allies called for driver’s license access for residents. PERS reform was not brought to the floor for a vote. AFT-Oregon opposed the grand-bargain because the cuts to PERS far outweighed the amount raised by taxing corporations and the wealthy. While we agree that Oregon needs more revenue, we do not believe it should come mainly Tuition Equity Law making a from public employees.

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K-12 Education K-12 State School Funding (SB 5519)

AFT-Oregon: Support Status: Passed and signed into law by the Governor The legislature passed a budget of $6.55 billion. While this is a larger allocation than in years past, it still falls short of the $8.75 billion needed under the Quality Education Model.

Contracting Out (SB 805)

AFT-Oregon: Support Status: Not voted on this session SB 805 would have changed the laws surrounding contracting out of public sector jobs. This legislation would have required accountability and sound fiscal responsibility before contracting out public sector work. While OSEA and AFTOregon fought to give this legislation a fair hearing, legislators from both parties didn’t allow this bill to come up for a vote. OSEA and AFT-Oregon are commited to reviving this legislation up in future sessions.

Injury Reporting (HB 2585)

AFT-Oregon: Support Status: Passed and signed into law by the Governor HB 2585 directs the Department of Education to investigate complaints submitted about incidents involving the use of physical restraint or seclusion in schools.

Legislators passed a law in the 2013 session which gives in-state tuition to immigrant students previously charged the out-of-state rate. Governor Kitzhaber signed the Tuition Equity bill into law. AFT-Oregon President David Rives praised the new law and members’ role in its passage. “This will help some of the brightest, hardestworking students in our colleges and universities who have been unnecessarily penalized for circumstances that were beyond their control as young children. AFT-Oregon members have advocated for many years for tuition equity and we are excited to see this finally becoming a reality. This is a great victory in our efforts to offer an affordable, accessible education to all,” said President Rives. “Tuition Equity” grants in-state tuition to students entering the Oregon University System if they attended elementary or secondary schools in the United States for at least five years immediately prior to receiving a high school diploma, graduated from an Oregon high school, and are actively working toward U.S. citizenship. The law took effect in the 2013-2014 school year.

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