ODVA 2017-19 Legislatively Adopted Budget by Oregon Department of Veterans' Affairs

2017-19 LEGISLATIVELY ADOPTED BUDGET

Agency LEGISLATIVE ACTION SB 140 Establishes Veteran Services Fund HB 5006 End of Session Budget Adjustments HB 5039 ODVA Budget Bill HB 5505 Bonding Bill HB 5506 Capital Construction Agency Summary Agency Charts and Graphs Mission Statement and Statutory Authority Agency Strategic Plans Agency Initiatives and Accomplishments Agency Programs Environmental Factors Agency Short-term Plans Criteria for 2017-19 Budget Development Summary of 2017-19 Budget (Agency-wide and Program Unit Levels ORBITS) Program Prioritization for 2017-19 (107BF23) Key Performance Measures 2015-17 Organization Chart 2017-19 Organization Chart Revenues Revenue Forecast Narrative Detail of Lottery Funds, Other Funds, and Federal Funds Revenue (Agency-wide)

Veteran Services Program Organization Charts Executive Summary Narrative and Charts Essential Packages Policy Option Package 101 Policy Option Package 102 Policy Option Package 104 Home Loan Program Organization Charts Executive Summary Narrative and Charts Essential Packages Policy Option Package 101 Policy Option Package 102 Policy Option Package 103 Veteransâ&#x20AC;&#x2122; Home Program Organization Charts Executive Summary Narrative and Charts Essential Packages Policy Option Package 102 NonLimited Expenditures Narrative Detail of Lottery Funds, Other Funds, and Federal Funds Revenue

Capital Budgeting Detail of Lottery Funds, Other Funds, and Federal Funds Revenue Policy Option Package 105 Major Construction/Acquisition Narrative (107BF02 and 107BF11) Major Construction/Acquisition Ten-Year Plan (107BF13) Capital Financing Six-Year Forecast Summary Detail of Lottery Funds, Other Funds, and Federal Funds Revenue Facilities Maintenance Narrative (107BF02) Facilities Maintenance Summary Report (107BF16a) Facilities Operations and Deferred Maintenance Report (107BF16b) Special Reports Information Technology-Related Projects/Initiatives Affirmative Action Report BSU003A – Summary Cross Reference Listing and Packages BSU004A – Policy Package List by Priority BDV103A – Budget Support – Detailed Revenues and Expenditures (Agency wide and SCR) ANA100A – Version/Column Comparison – Detail (Base Budget by SCR) ANA101A – Package Comparison – Detail (Essential and Policy Packages by SCR) PPDPLBUDCL PPDPLAGYCL PPDPLWSBUD PPDPLAUDIT1 PPDPFISCAL

SB 140 A

79th Oregon Legislative Assembly – 2017 Regular Session

STAFF MEASURE SUMMARY

Joint Committee On Ways and Means

Carrier: Rep. Meek

Action Date: 06/16/17 Action: Do Pass the A-Eng bill. House Vote Yeas: 11 - Gomberg, Holvey, Huffman, McLane, Nathanson, Rayfield, Smith G, Smith Warner, Stark, Whisnant, Williamson Senate Vote Yeas: 12 - DeBoer, Devlin, Frederick, Girod, Hansell, Johnson, Manning Jr, Monroe, Roblan, Steiner Hayward, Thomsen, Winters Fiscal: No fiscal impact Revenue: No revenue impact Prepared By: Steve Bender, Budget Analyst WHAT THE MEASURE DOES: The bill establishes the Veterans’ Services Fund, and creates other statutory provisions needed to implement and operate Ballot Measure 96. Ballot Measure 96, approved by voters in the November 2016 general election, dedicates 1.5% of net lottery proceeds to services for the benefit of veterans. The statutory provisions in the bill establish the Veterans' Services Fund, direct the Department of Administrative Services to deposit the required amount of net lottery proceeds into this Fund, and continuously appropriate the moneys in the Fund to provide services for the benefit of veterans. The bill directs that moneys that were allocated from the Fund to support agency programs revert to the Fund, if they remain unspent and uncommitted at the end of a biennium. SB 140 establishes new funds for the Department of Veterans' Affairs and the Housing and Community Services Department, to allow the Legislature to allocate Measure 96 Lottery Funds to those departments to support veterans services. The bill includes an emergency clause, and takes effect on July 1, 2017.

ISSUES DISCUSSED:  Ballot Measure 96 requirements  Need for statutory changes to implement the ballot measure  Purpose for establishing new funds to segregate the Ballot Measure 96 dedicated Lottery Funds from other moneys Allocations from the Veterans' Services Fund Provisions to prevent Ballot Measure 96 moneys from being diverted to other purposes Establishment of Ballot Measure 96 funds for the Department of Veterans' Affairs and Housing and Community Services Department   

EFFECT OF AMENDMENT: No amendment. BACKGROUND: Voters approved Ballot Measure 96 in the November 2016 general election. This measure amended the Oregon Constitution to dedicate 1.5% of net lottery proceeds to services for the benefit of veterans. The constitutional amendment also directed the Legislature to establish a Veterans’ Services Fund, to segregate the Lottery Funds dedicated to veterans’ services by the ballot measure, so they would not be used for any other purposes.

1 of 2

SB 140 enacts statutory provisions to implement the ballot measure. The bill does not authorize Lottery Funds for any specific programs; instead it establishes restricted funds that will allow the Legislature to distribute lottery moneys and meet the requirements of ballot measure. The first Lottery Funds dedicated to veterans' services under This Summary has not been adopted or officially endorsed by action of the committee.

SB 140 A

STAFF MEASURE SUMMARY

the ballot measure will be available in July 2017. The Office of Economic Analysis forecasts that approximately $18.7 million of Lottery Funds will be dedicated to veterans' services in the 2017-19 biennium.

2 of 2

The Legislature will approve allocations from the Veteransâ&#x20AC;&#x2122; Services Fund to state agencies, in each biennium budget, to support specific veteransâ&#x20AC;&#x2122; programs. This session, those allocations will be included in SB 5529.

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

79th Oregon Legislative Assembly â&#x20AC;&#x201C; 2017 Regular Session

HB 5006 A BUDGET REPORT and MEASURE SUMMARY

Carrier: Sen. Devlin

Joint Committee On Ways and Means Action Date: Action: Senate Vote Yeas: Nays: House Vote Yeas: Nays: Exc: Prepared By: Reviewed By:

07/03/17 Do pass the A-Eng bill. 11 - DeBoer, Devlin, Frederick, Girod, Hansell, Johnson, Manning Jr, Monroe, Roblan, Steiner Hayward, Winters 1 - Thomsen 7 - Gomberg, Holvey, Huffman, Nathanson, Rayfield, Smith Warner, Williamson 1 - McLane 3 - Smith G, Stark, Whisnant Laurie Byerly and Gregory Jolivette, Legislative Fiscal Office Paul Siebert, Legislative Fiscal Office

Emergency Board 2017-19 Various Agencies 2015-17

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

HB 5006 A 1 of 41

Budget Summary* Emergency Board General Fund - General Purpose General Fund - Special Purpose Appropriations State Agencies for state employee compensation State Agencies for non-state worker compensation Reduction to SB 505 special purpose appropriation

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

50,000,000

$ $ $

100,000,000 10,000,000 (600,000)

$ $ $

100,000,000 10,000,000 (600,000)

Department of Administrative Services General Fund General Fund Debt Service Lottery Funds Lottery Funds Debt Service Other Funds Other Funds Debt Service

$ $ $ $ $ $

9,091,000 (4,962,907) 180,000 (2,317,505) 23,939,750 1,080,828

$ $ $ $ $ $

9,091,000 (4,962,907) 180,000 (2,317,505) 23,939,750 1,080,828

Advocacy Commissions Office General Fund

10,471

Employment Relations Board General Fund Other Funds

$ $

(29,574) (16,497)

$ $

(29,574) (16,497)

Oregon Government Ethics Commission Other Funds

(28,614)

Office of the Governor General Fund Lottery Funds Other Funds

$ $ $

(525,236) (138,447) (110,630)

$ $ $

(525,236) (138,447) (110,630)

Oregon Liquor Control Commission Other Funds

(1,458,427)

ADMINISTRATION PROGRAM AREA

HB 5006 A 2 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

Public Employees Retirement System, Other Funds

(2,508,616)

Racing Commission Other Funds

(89,929)

Department of Revenue General Fund General Fund Debt Service Other Funds

$ $ $

(5,581,902) (6,870,670) 7,676,661

$ $ $

(5,581,902) (6,870,670) 7,676,661

Secretary of State General Fund Other Funds Federal Funds

$ $

(346,704) (1,030,747) (472,720)

$ $ $

(346,704) (1,030,747) (472,720)

State Library General Fund Other Funds Federal Funds

$ $ $

128,123 (137,871) (1,625)

$ $ $

128,123 (137,871) (1,625)

State Treasurer General Fund Other Funds

$ $

1,013,497 (1,557,357)

$ $

1,013,497 (1,557,357)

State Board of Accountancy Other Funds

(56,046)

Chiropractic Examiners Board Other Funds

(51,085)

CONSUMER AND BUSINESS SERVICES PROGRAM AREA

HB 5006 A 3 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

Consumer and Business Services Other Funds Federal Funds

$ $

(5,252,286) (475,260)

$ $

(5,252,286) (475,260)

Construction Contractors Board Other Funds

(461,875)

Board of Dentistry Other Funds

(38,848)

Health Related Licensing Boards Other Funds

(83,199)

Bureau of Labor and Industries General Fund Other Funds Federal Funds

$ $ $

(127,909) (278,736) (960)

$ $ $

(127,909) (278,736) (960)

Licensed Professional Counselors and Therapists. Board of Other Funds

(24,871)

Licensed Social Workers, Board of Other Funds

(25,841)

Medical Board Other Funds

(345,981)

Board of Nursing Other Funds

(450,604)

Board of Pharmacy Other Funds

(261,147)

HB 5006 A 4 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

Psychologist Examiners Board Other Funds

(26,589)

Public Utility Commission Other Funds Federal Funds

$ $

(1,156,876) (6,858)

$ $

(1,156,876) (6,858)

Real Estate Agency Other Funds

(276,826)

Tax Practitioners Board Other Funds

(18,835)

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

$ $ $ $ $ $ $

3,628,465 (1,481,045) (247,934) (1,410,613) 151,174,323 30,000,000 (13,232)

$ $ $ $ $ $ $

3,628,465 (1,481,045) (247,934) (1,410,613) 151,174,323 30,000,000 (13,232)

Employment Department Other Funds Federal Funds

$ $

(3,490,798) (4,403,080)

$ $

(3,490,798) (4,403,080)

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

$ $ $ $ $

21,433,916 2,640,239 350,000 25,972,449 (7,227,385)

$ $ $ $ $

21,433,916 2,640,239 350,000 25,972,449 (7,227,385)

ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAM AREA

HB 5006 A 5 of 41

Budget Summary* Department of Veterans' Affairs General Fund Lottery Funds Other Funds Federal Funds

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

$ $ $ $

(136,724) (140,617) -

$ $ $ $

(136,724) (140,617) -

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

$ $ $ $

(1,685,086) (1,587,898) 270,433,393 (957,295)

$ $ $ $

(1,685,086) (1,587,898) 270,433,393 (957,295)

State School Fund General Fund Lottery Funds Other Funds

$ $ $

(30,372,945) 12,465,745 17,907,200

$ $ $

(30,372,945) 12,465,745 17,907,200

Higher Education Coordinating Commission General Fund General Fund Debt Service Lottery Funds Debt Service Other Funds Federal Funds

$ $ $ $ $

8,532,950 (13,840,783) (73,975) 6,614,787 (430,293)

$ $ $ $ $

8,532,950 (13,840,783) (73,975) 6,614,787 (430,293)

Chief Education Office General Fund

(369,306)

Teacher Standards and Practices Other Funds

(214,668)

EDUCATION PROGRAM AREA

HB 5006 A 6 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

HUMAN SERVICES PROGRAM AREA Commission for the Blind General Fund Other Funds Federal Funds

$ $ $

(41,304) (11,467) (157,969)

$ $ $

(41,304) (11,467) (157,969)

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

$ $ $ $ $

(59,956,387) 4,001 (4,617) 71,374,612 (9,456,614)

$ $ $ $ $

(59,956,387) 4,001 (4,617) 71,374,612 (9,456,614)

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

$ $ $ $

(8,487,786) 10,521,010 45,175,634 138,153,153

$ $ $ $

(8,487,786) 10,521,010 45,175,634 138,153,153

Long Term Care Ombudsman General Fund Other Funds

$ $

(272,509) (2,593)

$ $

(272,509) (2,593)

Psychiatric Security Review Board General Fund

(33,233)

$ $ $

(7,171,498) (2,555,411) 195,971,790

$ $ $

(7,171,498) (2,555,411) 195,971,790

JUDICIAL BRANCH Judicial Department General Fund General Fund Debt Service Other Funds

HB 5006 A 7 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

Commission on Judicial Fitness and Disability General Fund

(577)

Public Defense Services Commission General Fund

1,060,699

Legislative Administration Committee General Fund General Fund Debt Service Other Funds Other Funds Debt Service

$ $ $ $

4,109,449 (445,481) 239,358 (28,305)

$ $ $ $

4,109,449 (445,481) 239,358 (28,305)

Legislative Assembly General Fund

(1,324,394)

Legislative Commission on Indian Services General Fund

(1,750)

Legislative Counsel General Fund Other Funds

$ $

(232,754) (59,154)

$ $

(232,754) (59,154)

Legislative Fiscal Office General Fund Other Funds

$ $

(183,583) (124,420)

$ $

(183,583) (124,420)

Legislative Revenue Office General Fund

(18,516)

Legislative Policy and Research Office General Fund

(45,374)

LEGISLATIVE BRANCH

HB 5006 A 8 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

NATURAL RESOURCES PROGRAM AREA State Department of Agriculture General Fund Lottery Funds Other Funds Federal Funds

$ $ $ $

Columbia River Gorge Commission General Fund

State Department of Energy Other Funds Federal Funds

Department of Environmental Quality General Fund Lottery Funds Other Funds Federal Funds

(1,066,655) (231,617) (2,054,053) (388,340)

$ $ $ $

(1,066,655) (231,617) (2,054,053) (388,340)

24,081

$ $

(538,561) (72,012)

$ $

(538,561) (72,012)

$ $ $ $

(352,190) (77,348) (3,614,762) (461,243)

$ $ $ $

(352,190) (77,348) (3,614,762) (461,243)

State Department of Fish and Wildlife General Fund Lottery Funds Other Funds Federal Funds

$ $ $ $

182,646 (167,378) (3,153,172) (3,058,576)

$ $ $ $

182,646 (167,378) (3,153,172) (3,058,576)

Department of Forestry General Fund General Fund Debt Service Lottery Funds Debt Service Other Funds Other Funds Debt Service Federal Funds

$ $ $ $ $ $

(1,201,103) (410,919) (5,594) 96,885,643 79,996 (495,371)

$ $ $ $ $ $

(1,201,103) (410,919) (5,594) 96,885,643 79,996 (495,371)

HB 5006 A 9 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

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

$ $ $

(104,725) (141,422) (65,496)

$ $ $

(104,725) (141,422) (65,496)

Department of Land Conservation and Development General Fund Other Funds Federal Funds

$ $ $

(395,929) (1,373) (108,803)

$ $ $

(395,929) (1,373) (108,803)

Land Use Board of Appeals General Fund

266

Oregon Marine Board Other Funds Federal Funds

$ $

(335,800) (1,373)

$ $

(335,800) (1,373)

Department of Parks and Recreation Lottery Funds Lottery Funds Debt Service Other Funds Federal Funds

$ $ $ $

(1,881,005) (895,019) 3,232,341 (7,925)

$ $ $ $

(1,881,005) (895,019) 3,232,341 (7,925)

Department of State Lands General Fund Other Funds Federal Funds

$ $ $

5,000,000 11,149,657 (3,183)

$ $ $

5,000,000 11,149,657 (3,183)

Water Resources Department General Fund Lottery Funds Debt Service Other Funds Federal Funds

$ $ $ $

(748,813) (2,078,875) 21,943,095 -

$ $ $ $

(748,813) (2,078,875) 21,943,095 -

266

HB 5006 A 10 of 41

Budget Summary* Watershed Enhancement Board Lottery Funds Federal Funds

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

$ $

(205,451) (1,136)

$ $

(205,451) (1,136)

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

$ $ $ $

(23,762,896) 1,268,059 272,630 (10,323)

$ $ $ $

(23,762,896) 1,268,059 272,630 (10,323)

Oregon Criminal Justice Commission General Fund Other Funds Federal Funds

$ $ $

(87,794) (1,137) (3,503)

$ $ $

(87,794) (1,137) (3,503)

District Attorneys and their Deputies General Fund

(23,359)

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

$ $ $ $

(3,386,309) 3,235,629 15,825,892 29,064,361

$ $ $ $

(3,386,309) 3,235,629 15,825,892 29,064,361

Oregon Military Department General Fund General Fund Debt Service Other Funds Federal Funds

$ $ $ $

932,333 (802,765) 5,245,172 (1,156,392)

$ $ $ $

932,333 (802,765) 5,245,172 (1,156,392)

PUBLIC SAFETY PROGRAM AREA

HB 5006 A 11 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Oregon Board of Parole General Fund

(340,944)

Oregon State Police General Fund Lottery Funds Other Funds Federal Funds

$ $ $ $

(2,667,382) (240,268) (26,542) (142,526)

$ $ $ $

(2,667,382) (240,268) (26,542) (142,526)

Department of Public Safety Standards and Training Other Funds Federal Funds

$ $

(1,183,157) 464,466

$ $

(1,183,157) 464,466

Oregon Youth Authority General Fund General Fund Debt Service Other Funds Federal Funds

$ $ $ $

(4,902,061) 1,925,787 567,980 (218,984)

$ $ $ $

(4,902,061) 1,925,787 567,980 (218,984)

Department of Aviation Other Funds Federal Funds

$ $

(39,973) (1,538)

$ $

(39,973) (1,538)

Department of Transportation General Fund General Fund Debt Service Lottery Funds Debt Service Other Funds Other Funds Debt Service Federal Funds

$ $ $ $ $ $

(389,942) (1,037,553) (6,039,258) (1,415,838) 10 (227,030)

$ $ $ $ $ $

(389,942) (1,037,553) (6,039,258) (1,415,838) 10 (227,030)

Committee Change

TRANSPORTATION PROGRAM AREA

HB 5006 A 12 of 41

Budget Summary*

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

$ $ $ $ $ $ $ $

2017-19 Budget Summary General Fund Total General Fund Debt Service Lottery Funds Total Lottery Funds Debt Service Other Funds Total Other Funds Debt Service Other Funds Nonlimited Federal Funds Total

58,172,743 (14,400,707) 9,801,680 (12,820,839) 939,304,527 1,132,529 30,000,000 137,654,935

* Excludes Capital Construction

2015-17 Legislatively Approved Budget

2015-17 Committee Recommendation

Committee Change

2015-17 Supplemental Appropriations Commission on Judicial Fitness and Disability General Fund

35,000

Department of Transportation Other Funds Federal Funds

$ $

45,500,000 8,100,000

$ $

45,500,000 8,100,000

HB 5006 A 13 of 41

2017-19 Position Summary

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

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

6 6.00

Public Employees Retirement System Authorized Positions Full-time Equivalent (FTE) positions

1 0.92

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

33 9.00

State Treasurer Authorized Positions Full-time Equivalent (FTE) positions

2 2.34

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

11 9.68

Bureau of Labor and Industries Authorized Positions Full-time Equivalent (FTE) positions

3 2.50

3 0.75

CONSUMER AND BUSINESS SERVICES PROGRAM AREA

ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAM AREA Housing and Community Services Department Authorized Positions Full-time Equivalent (FTE) positions

HB 5006 A 14 of 41

2015-17 Legislatively Approved Budget

2017-19 Committee Recommendation

Committee Change

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

63 51.46

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

113 74.33

4 2.00

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

(1) (1.00)

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

6 5.33

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

4 3.50

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

1 1.00

2017-19 Position Summary HUMAN SERVICES PROGRAM AREA

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

NATURAL RESOURCES PROGRAM AREA

HB 5006 A 15 of 41

2017-19 Position Summary

2015-17 Legislatively Approved Budget

Water Resources Department Authorized Positions Full-time Equivalent (FTE) positions

2017-19 Committee Recommendation

Committee Change

1 1.00

68 54.99

2 2.00

27 25.32

PUBLIC SAFETY PROGRAM AREA Department of Justice Authorized Positions Full-time Equivalent (FTE) positions Oregon Military Department Authorized Positions Full-time Equivalent (FTE) positions

Oregon State Police Authorized Positions Full-time Equivalent (FTE) positions

Summary of Revenue Changes The General Fund appropriations made in the bill are within resources available as projected in the May 2017 economic and revenue forecast by the Department of Administrative Services, Office of Economic Analysis, supplemented by transfers from various agency accounts to the General Fund for general governmental purposes as authorized in HB 3470, plus other actions to reduce state agency expenditures.

Summary of Capital Construction Subcommittee Action HB 5006 appropriates General Fund to the Emergency Board for general purpose and targeted special purpose appropriations, and makes other adjustments to individual agency budgets and position authority as described below. HB 5006 A 16 of 41

Emergency Board The Emergency Board allocates General Fund and provides Lottery Funds, Other Funds, and Federal Funds expenditure limitation to state agencies for unanticipated needs in approved agency budgets when the Legislature is not in session. The Subcommittee appropriated $50 million General Fund to the Emergency Board for general purposes. HB 5006 makes two special purpose appropriations to the Emergency Board, totaling $110 million General Fund; the bill also adjusts a special purpose appropriation already approved in a different bill: 

$100 million General Fund for state employee compensation changes.



$10 million General Fund for allocation to state agencies for compensation changes driven by collective bargaining for workers who are not state employees.



Reduces the special purpose appropriation made by SB 505 for costs associated with the requirement to record grand jury proceedings, by $600,000 General Fund. The budget for the Judicial Department is increased by this amount.

If these special purpose appropriations are not allocated by the Emergency Board before December 1, 2018, any remaining funds become available to the Emergency Board for general purposes.

Adjustments to Approved 2017-19 Agency Budgets STATEWIDE ADJUSTMENTS Statewide adjustments reflect budget changes in multiple agencies based on reductions in Department of Administrative Services assessments and charges for services, Attorney General rates, certain services and supplies, and additional vacancy savings expected as a result of a hiring slowdown. Statewide adjustments also reflect net reductions to debt service realized through interest rate savings on bond sales and refunding of outstanding general obligation and lottery revenue bonds. Total savings are $135.8 million General Fund, $16.7 million Lottery Funds, $105.5 million Other Funds, and $35.6 million Federal Funds. Specific adjustments include $126 million total funds savings from implementing a hiring slowdown implemented across all three branches of government; $25 million in General Fund and Lottery Funds savings from eliminating most inflation on services and supplies implemented across all three branches of government; $9.3 million total funds from a 10% reduction to travel in Executive Branch agencies to implement the Governor’s previously announced cost containment effort; $68 million total funds reduction from lower Department of Administrative Services assessments and service rates; and $13 million total funds from lower Attorney General rates.

HB 5006 A 17 of 41

Section 145 of the budget bill reflects the changes, as described above, for each agency. These adjustments are not addressed in the individual agency narratives, although they are included in the table at the beginning of the budget report. ADMINISTRATION Department of Administrative Services The Subcommittee approved various one-time General Fund appropriations to the Department of Administrative Services (DAS) for the following purposes:               

$1,895,000 for disbursement to the Rogue River Valley Irrigation District for the Bradshaw Drop Irrigation Canal project to pipe over three miles of irrigation canal to conserve water and provide pressurized water to district patrons. $1,836,000 for disbursement to the City of John Day to extend a fiber optic line along US 395 from US 20 to John Day. $1,000,000 for disbursement to the JPR Foundation, Inc. for the Holly Theater restoration project in Medford. $1,000,000 for disbursement to the Deschutes Rim Clinic Foundation for the Rim Health Clinic in Maupin to supplement capacity at the current facility. $750,000 for disbursement to the Medford Youth Baseball Society for improvements at Harry and David Baseball Park. $500,000 for disbursement to the City of Mosier for a joint use facility, encompassing a city hall, main fire station, and multi-use community space to be built on land donated by Union Pacific Railroad. $500,000 for disbursement to the Oregon Wine Board for marketing and increasing the market access of Oregon produced wine. $420,000 for disbursement to the City of John Day for operations of a public safety answering point through the 2017-19 biennium. $400,000 for disbursement to the Greater Portland YWCA for the Family Preservation Project. $250,000 for disbursement to the Southern Oregon Veterans Benefit organization for construction of a replica of the Vietnam Memorial Traveling Wall. $200,000 for disbursement to the Mid-Columbia Health Foundation for a hospital modernization and expansion project involving a regional rural community hospital in The Dalles that was built in 1859. $50,000 for disbursement to the World of Speed organization as transition funding for the High School Automotive Career Technical Education program as the organization seeks other support for the program. $50,000 for disbursement to the Family YMCA of Marion and Polk Counties for the YMCA Youth and Government program. $50,000 for disbursement to the Bag and Baggage Productions, a professional theater located in Hillsboro, for its Cultural Innovation Project involving the purchase and installation of a 360 degree digitally immersive projection system. $40,000 for disbursement to the Cities of Turner, Aumsville, and Salem, for use as flood mitigation planning match.

A total of $28,177,202 Other Funds expenditure limitation was added by the Subcommittee for the one-time cost of issuance and special payments associated with the disbursement of proceeds from Lottery Bond sales; projects are detailed below and approved in SB 5530. Cost of issuance for these projects totals $707,200. There is no debt service allocated in the 2017-19 biennium, as the bonds will not be sold until the HB 5006 A 18 of 41

spring of 2019. Total debt service on all the projects described below is estimated at a total of $4,743,599 Lottery Funds for the 2017-19 biennium and $47,153,969 over the life of the bonds.          

$12,235,018 Other Funds for disbursement to the YMCA of Marion and Polk counties for construction of a new YMCA facility in Salem. $6,125,396 Other Funds for disbursement to the Eugene Civic Alliance to redevelop the site of the former Civic Stadium into a community sports and recreation complex. $2,050,587 Other Funds for disbursement to the Gresham Redevelopment Commission for the construction of an innovation and workforce training center in the Rockwood neighborhood in Gresham. $2,050,587 Other Funds for disbursement to the Family Nurturing Center (Rogue Valley Children’s Relief Nursery) to purchase and rehabilitate affordable housing adjacent to the Center’s campus. $1,042,655 Other Funds for disbursement to the Cascade AIDS Project for the acquisition and renovation of a primary care and mental health center for the lesbian, gay, bisexual, transgender, queer, and other minority gender identities and sexual orientation community. $1,041,303 Other Funds for disbursement to the City of Independence for the Independence Landing Revitalization Project. $1,041,303 Other Funds for disbursement to Klamath County for construction of the Klamath Youth Inspiration Program residential treatment center in Klamath Falls. $1,041,303 Other Funds for disbursement to the City of Woodburn to develop a community center in Woodburn. $784,922 Other Funds for disbursement to The Dalles Civic Auditorium Preservation Commission to continue reconstruction of The Dalles Civic Auditorium theater. $764,128 Other Funds for disbursement to the City of Spray to construct a public safety and emergency services center, which includes fire protection and emergency medical services.

The Subcommittee approved two one-time increases to existing subsidy programs funded through the DAS budget: $150,000 General Fund was added to the special payments made to the Oregon Historical Society, increasing its total state support in 2017-19 to $900,000 General Fund. The Subcommittee also approved increasing the 2017-19 special payments to county fairs by $180,000 Lottery Funds, which provides county fairs with a total of $3,828,000 Lottery Funds in 2017-19. To complete projects approved in SB 5506, the capital construction bill, the Subcommittee approved the establishment of five limited duration Project Manager 2 positions (5.00 FTE) and one limited duration Project Manager 3 position (1.00 FTE) within the DAS Planning and Construction Management program. This is position establishment authority only, as all position costs will be charged against project funding. The Subcommittee approved $1,080,818 in additional Other Funds Debt Service to support repayment of Article XI-Q General Obligation bond proceeds approved in SB 5505 for renovations at the Portland State Office Building, and an Other Funds expenditure limitation increase of $214,000 for the cost of issuance of the bonds.

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Public Employees Retirement System An Other Funds expenditure limitation increase of $209,443 was approved by the Subcommittee, which supports one permanent full-time Principal Executive Manager G (0.92 FTE) to serve as the agencyâ&#x20AC;&#x2122;s Chief Financial Officer, with the understanding that the agency competitively recruit for, and hire, a Certified Public Accountant for this position. Department of Revenue The Subcommittee approved funding for the final project phase to replace most of the agency's core information technology systems (Core Systems Replacement project). The final phase includes: Timber tax; electrical cooperative tax; rail car tax; gas and oil production tax; County Assessment Funding Assistance; Green Light; Non-profit homes; court fines and assessments; and revenue accounting. The scheduled implementation date is November 13, 2017. The Subcommittee approved $8,383,109 of Other Funds expenditure limitation and the establishment of 32 limited duration positions (8.00 FTE), which is to be mostly financed with Article XI-Q bonds approved in SB 5505 ($4,781,944). Project revenues also include an estimated $3,501,165 in bond proceeds that were authorized and issued during the 2015-17 biennium, but remained unexpended, and $100,000 of state marijuana tax revenue. The Department of Administrative Services is directed to unschedule $276,599 of Other Funds expenditure limitation associated with the Core Systems Replacement project, which may be rescheduled upon the approval of the Legislative Fiscal Office. The Subcommittee appropriated $1,000,000 General Fund for vendor contract maintenance costs to support the ongoing maintenance of the vendor product after installation and $60,000 General Fund for non-bondable expenditures related to the project; these are one-time costs that should be phased out for 2019-21. To support repayment of Article XI-Q General Obligation bond proceeds approved in SB 5505 for the project, the Subcommittee appropriated $796,311 in additional General Fund Debt Service and added $73,056 Other Funds expenditure limitation for the cost of issuance of the bonds. The Subcommittee increased the General Fund appropriation by $276,906 and Other Funds expenditure limitation by $24,079 for one permanent full-time Principal Executive Manager F position (1.00 FTE) to restore funding for the agencyâ&#x20AC;&#x2122;s Finance Manager position, a long-term vacancy that was eliminated in SB 5535, with the understanding that the agency competitively recruit for, and fill, this position. To balance available revenues with Other Funds expenditure limitation, the Subcommittee decreased Other Funds expenditure limitation by $187,277 for services and supplies in the Property Tax Division. The Subcommittee increased Other Funds expenditure limitation by $244,058 for services and supplies in the Marijuana Program. Of the increase, $200,000 is for a remodel of the cash transaction space in the Salem headquarters building. This will bring the total estimated project HB 5006 A 20 of 41

costs to $1.33 million, of which $1 million will be funded during the 2017-19 biennium. This is a one-time expense. The remaining $44,058 is for services and supplies approved by the Emergency Board in May of 2016. Oregon Advocacy Commissions Office To restore a reduction in services and supplies included in the budget bill for the Oregon Advocacy Commissions Office (SB 5501), the Subcommittee approved $17,000 General Fund. State Library The Subcommittee approved a $197,488 General Fund appropriation to restore a reduction to the Ready to Read Grant program included in the budget bill for the State Library (HB 5018). The Ready to Read Grant program provides grants to public libraries for early literacy services and summer reading programs. State Treasurer For the Oregon Retirement Savings Board, the Subcommittee increased General Fund by $1,056,224 and established three permanent full-time positons (2.84 FTE) for additional implementation work. The positons are: one permanent full-time Operations and Policy Analyst 4 to serve as a Public Engagement Manager (1.00 FTE); one permanent full-time Operations and Policy Analyst 3 to serve as a Compliance Manager (0.92 FTE); and one permanent full-time Executive Support Special 1 (0.92 FTE). The Subcommittee abolished one permanent part-time Program Analyst 1 position, a long-term vacant position (-0.50 FTE). A General Fund appropriation is required to fund the Boardâ&#x20AC;&#x2122;s operating expenses until the Retirement Savings Plan Administrative Fund has sufficient revenue to support the Board. General Fund expenditures are to be repaid with future administrative fees. CONSUMER AND BUSINESS SERVICES Department of Consumer and Business Services The Subcommittee approved an increase in Other Funds expenditure limitation of $154,056 for the Department of Consumer and Business Services (DCBS), Division of Financial Regulation and authorized the establishment of a limited duration Operation and Policy Analyst 3 position (0.88 FTE). This position will support work required by the passage of HB 2391, which requires DCBS to establish a reinsurance program for individual and group health insurance policies. The position will assist existing staff at the agency with the additional rulemaking process required to establish the reinsurance program and with the application to the US Department of Health and Human Services for a 1332 waiver to implement the Oregon Reinsurance Program. The Subcommittee approved an increase in Other Funds expenditure limitation of $1,748,149 for the DCBS Building Codes Division and the establishment of 10 positions (8.80 FTE). Three of the positions, two Operations and Policy Analyst 3 and a Professional Engineer 2, are for building code development. These positions will provide policy and technical research, analysis, and subject matter expertise related to developing statewide standards, and provide support on special projects related to statewide consistency and uniformity within the building HB 5006 A 21 of 41

code. Two Administrative Specialist 2 positions will support analysts, engineers, and subject matter experts in the process of statewide code development, and facilitate and coordinate on special projects, permit services, and project tracking. Two Plans Examiner 2 positions will provide technical expertise and support to special projects, by reviewing plans and specifications for those projects and providing additional support to operational programs in the Pendleton and Coos Bay field offices. One Structural and Mechanical Inspector, a Plumbing Inspector, and one Electrical Inspector will provide field support for site-built construction in the Pendleton and Coos Bay field offices. Bureau of Labor and Industries General Fund in the amount of $413,787 is added to the budget of the Bureau of Labor and Industries for anticipated investigatory and enforcement provisions related to the passage of SB 828. The funding supports a permanent Civil Rights Field Representative (0.75 FTE), and a Permanent Compliance Specialist (0.75 FTE). In addition, funding to support a limited duration Training and Development Specialist 2 position (1.00 FTE) is also included; this position will develop notice materials for posting in the work place, and provide employer training opportunities on the new requirements. ECONOMIC AND COMMUNITY DEVELOPMENT Oregon Business Development Department The Subcommittee established a one-time $1,650,000 General Fund appropriation for the Arts Commission to distribute grants to the following cultural institutions in the following amounts:       

APANO Cultural Center - $300,000 Benton County Historical Society & Museum - Corvallis Museum - $500,000 Cottage Theatre Expansion - $125,000 High Desert Museum - By Hand Through Memory Exhibit - $125,000 Liberty Theatre Foundation - Theatre Restoration in La Grande - $200,000 Oregon Coast Council for the Arts - Newport Performing Arts Center - $300,000 Portland Institute of Contemporary Art - Capital Campaign NE Hancock $100,000

The Subcommittee established a one-time $2,000,000 General Fund appropriation for a grant to the Crescent Sanitary District to support a sewer system/wastewater treatment facility project. To supplement support for the Regional Accelerator Innovation Network (RAIN), the Subcommittee increased the one-time Lottery Funds expenditure limitation by $500,000. With the expenditure increase in this bill, total support in the budget for RAIN will total $1,000,000. The Subcommittee also established a one-time Other Funds expenditure limitation of $3,000,000 to support operating and research expenses of the Oregon Manufacturing Innovation Center (OMIC). The source of these funds are moneys transferred from the Connect Oregon Fund in the Department of Transportation. With the expenditure increase in this bill, support in the Oregon Business Development Department budget for OMIC operations will total $6.6 million of combined Lottery Funds and Other Funds expenditures. HB 5006 A 22 of 41

The Subcommittee increased Other Funds expenditures for distribution of bond proceeds authorized in SB 5505 and SB 5530, and HB 2278 (2015 Session). These expenditures include expenditures for the following projects for the following amounts:         

Seismic Rehabilitation Grants - $120 million total, including $100 million for school facilities and $20 million for emergency services facilities. Port of Coos Bay - Channel Deepening Project - $15,000,000 Oregon Manufacturing Innovation Center Roads - $3,390,000 City of Sweet Home - Wastewater Treatment Plant Upgrade - $2,000,000 Crescent Sanitary District Sewer System - $3,000,000 Portland Art Museum 0 Connection Campaign - $1,000,000 Eugene Ballet Company - Midtown Arts Center - $700,000 Friends of the Oregon Caves & Chateau - Balcony Restoration Project - $750,000 Regional Solutions - $1

Regarding Regional Solutions, SB 5530 authorizes $4 million of lottery bond proceeds for the Regional Infrastructure Fund for Regional Solutions projects. After the Department presents a funding request with identified Regional Solutions projects, the Legislature or Emergency Board will increase the Other Funds expenditure limitation to allow funding of the approved projects. The expenditure limitation applies solely to lottery bond proceeds received in the 2017-19 biennium. Proceeds from previously issued bonds that have been transferred to the Regional Infrastructure Fund, and any earnings in the Fund, are not subject to the $1 expenditure limitation. The Subcommittee also increased Nonlimited Other Funds expenditures by $30 million for distribution of lottery bond proceeds authorized for the Special Public Works Fund. The $30 million include $20 million for adding capital to the base Fund, and $10 million restricted to levee projects. Other Funds expenditures are increased by a total of $2,746,249 to pay costs of issuing the general obligation and lottery revenue bonds authorized for the above projects. Proceeds of bonds are used to finance these costs. Finally, the General Fund appropriation for debt service is increased by $2,836,985 to pay 2017-19 biennium debt service costs for approved Seismic Rehabilitation Grant bonds. This supports debt service costs for $25 million of seismic school bonds, and $10 million of seismic emergency services facility bonds, issued in spring 2018. The remaining seismic bonds, and all lottery bonds authorized for projects in this budget, will be issued in spring 2019, and related debt service will not be paid until the 2019-21 biennium.

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Housing and Community Services Department The Housing and Community Services Department budget is adjusted by the Subcommittee as follows: Local Innovation and Fast Track (LIFT) housing program - Other Funds expenditure limitation is increased by $1,090,000 attributable to the cost of issuance for $80 million in Article XI-Q Bonds for affordable housing development; the housing developed with the bonds will be targeted to low income individuals and families. It is assumed that this investment will result in an additional 1,200 - 1,500 units of new housing, depending on economic factors and the extent to which the program is modified (specifically, to include single family home ownership). Expenditure limitation for a period of six years for the project amount ($80 million) is in SB 5506. Administration of the $80 million in additional bond proceeds drives the need for additional expenditure limitation and General Fund support in the 2017-19 biennium, as follows: Two limited duration Loan Specialist positions (0.75 FTE) and two permanent Compliance Specialist positions (1.00 FTE) are authorized to add appropriate underwriting and project monitoring for affordable housing units developed through the LIFT housing program, as authorized by the 2017 Legislative Assembly. The compliance specialist positions are funded through fees charged to the projects, while the loan specialists are supported by General Fund. Finally, General Fund of $3.4 million is appropriated for debt service, assuming half of the total authorized amount ($40 million) is issued in the spring of 2018. Preservation of Affordable Housing - Other Funds expenditure limitation in the amount of $25,395,235 is included to enable the Housing and Community Services Department (HCSD) to expend lottery bond proceeds for preservation of affordable housing. Of this amount, $25 million is attributable to project costs, and $395,235 is related to cost of issuance. Eligible projects for which these funds can be expended will be defined by HCSD and include activities such as: multi-family rental properties where at least 25% of the units are subsidized by a project-based rental assistance contract through the USDA Rural Development or the US Department of Housing and Urban Development; existing manufactured housing communities and affordable housing units to be acquired by a mission-based non-profit organization, resident cooperative, tenants' association, housing authority, or local government; existing multifamily projects with affordability restrictions in need of rehabilitation and contract renewal; and public housing projects undergoing a preservation transaction which involves a comprehensive recapitalization and which will secure ongoing rental subsidies. Oregon Foreclosure Avoidance Program - General Fund of $1.3 million is included for the program. This 2017-19 funding is intended to be the final installment for the program, with the expectation that HCSD will cease administration and payment reimbursement by June 30, 2019, or the time at which funds are fully expended, whichever comes first. Emergency Housing Account and State Homeless Assistance Program - An additional $13,200,000 General Fund is added to the Emergency Housing Account (EHA) program, and an additional $6,800,000 General Fund is included for the State Homeless Assistance Program (SHAP). These are one-time enhancements that bring the total 2017-19 budget for EHA to $27,893,832 (a 93% increase over the 2015-17 legislatively approved budget) and SHAP to $12,226,228 (a 129% increase over the 2015-17 legislatively approved budget).

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Oregon Commission for Voluntary Action and Service - Federal Funds expenditure limitation is reduced by $7.1 million and one position (1.00 FTE) to reflect funding associated with transfer of administration of the Commission from HCSD to the Office of the Governor. The statutory changes to accomplish the transfer of the program are included in HB 3470. Measure 96 Lottery Funds Allocation - Lottery Funds expenditure limitation, attributable to the 2016 passage of Measure 96, in the amount of $350,000 is added for emergency housing assistance to veterans, as provided through the Emergency Housing Account program. The funds are allocated to the Department in SB 140. A budget note in HB 5012 (the HCSD budget bill) directs HCSD and the Department of Veterans’ Affairs to report back to the Joint Committee on Ways and Means in February 2018 with advice on strategic investments of available funds that will result in long-term housing stability for veterans. Oregon Department of Veterans’ Affairs The Subcommittee approved increasing Other Funds expenditure limitation by $310,000 for costs of issuance on Article XI-Q general obligation bonds authorized in SB 5505 for a parking lot at the Lebanon Veterans' Home, an educational and daycare facility at The Dalles Veterans' Home, and a new veterans' home in Roseburg. Costs of issuance will be paid with bond proceeds. Bonds are scheduled to be sold in spring 2019, with debt service of $2.2 million General Fund in the 2019-21 biennium. Due to the shortage of nurses and medical technicians in the City of Roseburg and Douglas County that would be required to staff the approved Veterans' Home, the Subcommittee adopted the following budget note: Budget Note: The Oregon Department of Veterans’ Affairs, in collaboration with the Oregon Health Authority and the Oregon State Board of Nursing, is directed to convene a rural medical training facilities workgroup that will investigate issues related to alleviating a shortage of skilled and experienced nurses and medical technicians in the City of Roseburg and in Douglas County. Representatives from the City of Roseburg, Douglas County, local hospital or medical facilities, including the Roseburg VA Medical Center, and local medical practitioners with experience in training nursing and medical technician students should be included in the workgroup membership. The workgroup should consider issues related to establishing a medical training facility in partnership with local academic programs and methods of reintegrating veterans who are transitioning out of military service into society through higher education and career training. The Department shall report the results of the workgroup and recommendations to the Legislature by September 15, 2018.

EDUCATION State School Fund The Subcommittee approved a decrease of $30,372,945 General Fund and an increase of $12,465,745 Lottery Funds for the State School Fund, which reflects the balancing of available Lottery Funds across the entire state budget. In addition, Other Funds expenditure limitation was HB 5006 A 25 of 41

increased by $17,907,200 to account for the total amount of Marijuana revenues dedicated to the State School Fund. Overall, the net change to the State School Fund is zero from the $8.2 billion included in SB 5517, the State School Fund budget bill. Department of Education The Subcommittee approved $480,517 General Fund for debt service on Article XI-Q bonds sold for deferred maintenance projects at the Oregon School for the Deaf. The bond proceeds will be used to address long standing deferred maintenance issues including replacement or repair of roofs ($2.5 million) and various improvements ($1.8 million) to address accessibility issues at the facility necessary to comply with the Americans with Disabilities Act (ADA). For the sale of Article XI-P bonds for the Oregon School Capital Improvement Matching program, $100 million Other Funds expenditure limitation is included. The XI-P bonds will be sold later in the biennium, so no debt service is required. For both the sale of XI-Q bonds for the Oregon School for the Deaf and the Article XI-P bonds for school district facilities, an increase of $1,052,442 in Other Funds expenditure limitation is included for the issuance costs of the bonds. An Other Funds expenditure limitation of $170.0 million is included for payments to school districts under Ballot Measure 98. A $170 million General Fund appropriation was made in SB 5516, the budget bill for the Oregon Department of Education, but payments out of the new High School Graduation and College and Career Readiness Fund must be budgeted as an Other Funds expenditure under the language of Ballot Measure 98 and for accounting practices. Higher Education Coordinating Commission The Subcommittee approved an increase of $6,831,534 in Other Funds expenditure limitation for the Higher Education Coordinating Commission (HECC) for the issuance costs of general obligation bonds sold for public universities and community colleges. These include both Article XI-G and XI-Q bonds for the seven public universities and Article XI-G bonds for community colleges. A General Fund appropriation of $1.2 million was approved for a one-time grant to Eastern Oregon University for the construction of a new dedicated technology infrastructure equipment facility. This facility will be the campus hub for communications and network infrastructure. Also approved was $490,000 General Fund for a one-time grant to Oregon State University for the renovation of the Graduate and Research Center at the Cascades Campus in Bend. This will create office space for teaching and research at the campus as it offers new programs and courses. An additional $5.3 million General Fund was approved for the Oregon Promise program which provides financial assistance to recent high school graduates with tuition waivers or subsidies at a community college. The increase, along with $34.7 million General Fund included in the HECC budget bill (SB 5524), brings 2017-19 funding for this program to $40 million General Fund. At this funding level, the Commission will need to implement policies limiting participation, including restricting program eligibility based on Earned Family Contribution. The intent is to â&#x20AC;&#x153;grandfatherâ&#x20AC;? in the first yearâ&#x20AC;&#x2122;s students who started in the program during the 2016-17 academic year under the former requirements and implement any changes for those students who start during or after the fall quarter of the 2017-18 academic year. SB 1032 will include authority for HECC to limit the number of Oregon Promise participants by setting a maximum Earned Family Contribution for program eligibility. HB 5006 A 26 of 41

The Subcommittee also approved a budget note related to community colleges: Budget Note: The Higher Education Coordinating Commission shall convene a workgroup to develop recommendations for enabling community colleges to offer an associateâ&#x20AC;&#x2122;s degree that is completed in coordination with credits earned in registered apprenticeship or training programs that are at least four years long. The commission shall report their findings and recommendations to the appropriate legislative interim committee. For College Possible, the Subcommittee approved a one-time $350,000 General Fund appropriation to HECC for a one-time grant to the organization. This program provides mentoring, coaching, and other assistance to low income students to encourage them to go to college and help them apply for college and financial aid. One-time funding for two Agricultural Experiment Station positions are added in this bill. One is located at the Hermiston Agricultural Research and Extension Center for potato research and one is at the North Willamette Research and Extension Center. The costs are $260,000 and $120,000 General Fund, respectively. Funding for the Renewable Energy Center at the Oregon Institute of Technology was approved in the amount of $500,000 General Fund. The Subcommittee approved one-time funding for two projects through Oregon State University resulting, in part, from the work of the Oregon Shellfish Task Force. The first is $570,000 General Fund for the Molluscan Broodstock program at the Hatfield Marine Science Center in conjunction with the Whiskey Creek Shellfish Hatchery. The second project is $280,000 General Fund for monitoring the effects of ocean acidification and conducting ocean acidification research at the Whiskey Creek Shellfish Hatchery. HUMAN SERVICES Oregon Health Authority HB 5006 includes $10,000,000 General Fund for costs related to treating Hepatitis C - Stage 2 for members of the Oregon Health Plan (OHP). Coverage is already included for Stages 3 and 4. It is estimated that roughly 3,200 OHP members have Hepatitis C at Stage 2, and if all these members pursue treatment, the 2017-19 estimated cost is about $21.6 million General Fund. The agency will include data on current treatment patterns and costs in its first 2017-19 rebalance, and may need to request additional funding during the 2018 legislative session. A portion of this funding is expected to be one-time, as the existing OHP population is treated and only new cases will need treatment in the following biennium. The Subcommittee approved $200,000 General Fund for providing fresh Oregon-grown fruits, vegetables, and cut herbs from farmersâ&#x20AC;&#x2122; markets and roadside stands to eligible low-income seniors under the Senior Farm Direct Nutrition Program. Another $1,000,000 General Fund was HB 5006 A 27 of 41

added for the same purpose for eligible individuals through the Women, Infants and Children Program. Both program enhancements are onetime. Additional one-time Tobacco Master Settlement Agreement (TMSA) resources of $63,250,000 are available because of a series of legal settlements. Other Funds expenditure limitation is increased for OHP by $63,250,000, and General Fund is reduced by a like amount. Other TMSA resources in the OHP budget include funding that had previously been used for tobacco prevention and cessation programs. The Subcommittee approved the following budget note: Budget Note: The Oregon Health Authority, in collaboration with the Tobacco Reduction Advisory Committee, shall make recommendations to the Public Health Advisory Board on reductions to the Tobacco Prevention and Education Program, based on the loss of Tobacco Master Settlement Agreement (TMSA) funding, that reflects best practices for tobacco control, to minimize programmatic disruption. The Oregon Health Authority shall report to the Legislature the impact of the loss of TMSA funding to tobacco prevention in Oregon, across state and local programs, health communications, tobacco cessation, and data and evaluation. In order to balance to the final revenue forecast, an additional $375,000 of recreational marijuana proceeds are expected to be distributed to the Oregon Health Authority (OHA) for alcohol and drug prevention and treatment programs. Other Funds expenditure limitation is increased by $375,000 and General Fund is reduced by that same amount. HB 5006 reduces General Fund by $401,413 for the Oregon State Hospital, and reduces one FTE. SB 65 consolidates all persons found guilty except for insanity of a felony and committed to the Oregon State Hospital, under the jurisdiction of the Psychiatric Security Review Board. As a result, the State Hospital Review Panel (SHRP) will no longer be needed after June 30, 2018. The Subcommittee approved $3,226,060 General Fund for rural provider incentive programs. This is funding that was mistakenly taken out of the current service level at Governor’s Budget. HB 5006 increases General Fund by $10,000 to make the necessary changes to the Medicaid Management Information System (MMIS) to ensure that children who are placed in substitute care are enrolled in a coordinated care organization (CCO). This would apply to children in the legal custody of the Department of Human Services, and eligible for medical assistance. The new MMIS coding would allow a child who changes placement to remain in the original CCO until the transition of the child’s care to another CCO has been completed. The bill includes $196,111 Other Funds expenditure limitation and one position (0.75 FTE) to implement HB 3440, which will open up the Prescription Drug Monitoring Program to out-of-state practitioners. This will create additional workload as the program will need to implement and manage a process of auditing out-of-state users’ credentials and use of the system. To support the ongoing DHS effort to develop and implement an integrated eligibility system, now called the ONE Integrated Eligibility and Medicaid Eligibility (ONE IE & ME), the Subcommittee approved $322,233 General Fund, $13,595,873 Other Funds expenditure limitation, HB 5006 A 28 of 41

$1,306,605 Federal Funds expenditure limitation, and 62 positions (51.71 FTE); 41 of the positions are limited duration. The 21 permanent positions are associated with a core need for legacy system integration, as well as system maintenance and operations. Department of Human Services The Subcommittee approved $1,300,000 General Fund, on a one-time basis, to increase funding for the Oregon Hunger Response Fund, which is a 26.2% increase from the 2015-17 funding level. This additional support will help the Oregon Food Bank, through its 20 regional food banks, acquire and distribute a higher volume of food to over 950 local agencies. Another adjustment in the Self Sufficiency program is a change to a budget reduction included in SB 5526, the primary budget bill for the Department of Human Services (DHS). Instead of a $3.4 million General Fund reduction in the Temporary Assistance for Needy Families (TANF) program, which affected households with a Non-Needy Caretaker Relative, the Subcommittee decreased funding in the Employment Related Day Care program by $3.4 million General Fund, which reduces the caseload by about 200 cases. Regarding TANF, the DHS budget approved in SB 5526, assumes $22.2 million in General Fund cost avoidance related to program restrictions that have been in place since the 2009-11 biennium; this requires statutory date changes that are included in HB 3470. In addition, $60.0 million General Fund in TANF program caseload savings was used to help balance the agency-wide budget. These savings were due to the projected 2017-19 caseload decreasing by more than 3,000 families between the fall 2016 and spring 2017 caseload forecasts. The Subcommittee noted that, ideally, TANF savings would be retained within the TANF program to help improve services to families and client outcomes. To help institute this practice, the Subcommittee approved the budget note set out below. Budget Note: During the 2017-19 biennium, after each biannual caseload forecast, the Department of Human Services is directed to calculate any General Fund or Federal Funds savings resulting from a decrease in the TANF caseload below the level assumed in the 2017-19 legislatively adopted budget. As part of its first rebalance report to or request of the Legislature following that calculation, the agency will present a proposal for directing any savings to either increase the TANF grant amount or invest in the JOBS program. For the Intellectual and Developmental Disabilities (IDD) program, the Subcommittee discussed the need to ensure individuals with IDD receive information about all service setting options. Accordingly, DHS is directed to present to all adults with IDD the option to receive in-home services as described in ORS 427.101(3)b. The Subcommittee also approved the following budget note related to IDD group homes: Budget Note: The Department of Human Services will convene a workgroup to review rules and statutes regarding substantiated abuse findings, fines, and enforcement for Intellectual and Developmental Disability (IDD) group homes. The workgroup shall include representation from IDD providers, clients served in the IDD system, employees working in IDD group homes, and other stakeholders. The workgroup shall report HB 5006 A 29 of 41

their findings and recommended statutory changes to the appropriate legislative interim policy committees no later than February 1, 2018. The workgroup shall discuss and report on:   

Recommendations for rule or statutory changes to abuse definitions and substantiated abuse findings. A review of current enforcement statutes and recommended changes that result in consistent applications of fines across the IDD group home system. Recommendations for mandatory minimum fines for substantiated abuse.

The Subcommittee approved funding for the continued development and implementation of an integrated eligibility system, now called the ONE Integrated Eligibility and Medicaid Eligibility (ONE IE & ME) project. This effort will integrate eligibility determinations for DHS programs; Non-MAGI Medicaid, Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Employment Related Day Care (ERDC); into the OregonONEligibility (ONE) system used by OHA. While a 2017-19 funding request was always expected, the 2017-19 cost estimate for the project has increased over the budget development timeframe; the current project estimate and approved amount for 2017-19 is $203,272,716 total funds. (The former estimate for 2017-19 spending was $132.0 million total funds). This budget includes: state staff costs of $42.3 million; $128.2 million for contracted information technology services; $21.0 million for software costs and hosting charges; $2.2 million for training; and $9.5 million for debt service. Cost allocation, contingencies, legacy system integration work, and payments to OHA for its project work are accounted for in these estimates. The state staffing component consists of 113 positions (74.33 FTE) and primarily supports business analytics and training activities; 88 positions (50.83 FTE) are limited duration. The bulk of the project budget, at $146.3 million or 72% of 2017-19 costs, is supported by Federal Funds; this is due to enhanced federal funding for the project. Some of that higher match expires on December 31, 2018, but the Medicaid portion at a 90% federal/10% state share does not have a set end date. The current project timeline and updated budget estimates account for these match rates. General Fund supports $11.5 million of project costs and debt service; the bulk of the state share will be covered by $45.0 million in proceeds from Article XI-Q bonds. In SB 5505, the Joint Ways and Means Subcommittee on Capital Construction approved $34,045,000 Article XI-Q bonds to finance $33,523,000 of project costs and $522,000 for costs of issuing the bonds. The Subcommittee also approved additional funding of $11,477,000 for this project through the repurposing of bond proceeds originally issued for the Oregon Military Department (OMD). The Joint Legislative Committee on Information Management and Technology (JLCIMT) reviewed the project on May 25, 2017, and recommended incremental, conditional approval of the project and set out detailed next steps in its recommendation, which was adopted. In addition to completion of 26 specific actions, the recommendation requires a minimum of two progress reports to JLCIMT; one in September 2017 and another in February 2018. The agency will also work closely with and regularly report project status to the Office of the State Chief Information Officer (OSCIO) and the Legislative Fiscal Office (LFO) throughout the project’s lifecycle. It is likely additional formal reporting may HB 5006 A 30 of 41

be required by JCLIMT or interim budget committees, depending on agency progress and any need to address project or budget issues flagged by LFO or OSCIO. The Subcommittee approved the project with the understanding that the funding will be unscheduled until LFO and the Chief Financial Office of the Department of Administrative Services approve rescheduling; agency compliance with the JLCIMT recommendations will be key to making funding available. Since this project will result in eligibility determinations for multiple programs in both OHA and DHS being done through one system, to perform these determinations most efficiently, eligibility functions (responsibility for the work and staffing) from both agencies will be centralized at DHS. The following budget note was approved by the Subcommittee: Budget Note: The Department of Human Services and the Oregon Health Authority are currently planning to centralize eligibility processing at DHS in the fall of 2017. DHS has begun an assessment of current processes and will need 9-12 months to complete a comprehensive assessment and business plan that meets Medicaid requirements. DHS will report to the Interim Joint Committee on Ways and Means by June 30, 2018, and will include in its report a plan to increase jobs in rural Oregon including the option of outsourcing, in order to provide the highest quality, most efficient and cost effective Medicaid enrollment services to Oregonians. JUDICIAL BRANCH Judicial Department The Subcommittee increased General Fund for the Judicial Department by $600,000, and established four full-time positions (2.00 FTE) for additional workloads associated with an increased number of preliminary hearings anticipated as a result of SB 505. SB 505 requires grand jury proceeding to be recorded. A special purpose appropriation in SB 505 to the Emergency Board for additional costs associated with the measure was reduced by the same amount. The Subcommittee also established a $1,200,000 General Fund appropriation to provide a grant to Clackamas County for planning costs associated with a project to replace the countyâ&#x20AC;&#x2122;s courthouse. The county must spend at least an equal amount of matching funds for planning costs. The provision of this support does not establish a commitment or expectation for any additional state support for the capital project. The Subcommittee added Other Funds expenditures to the budget associated with the authorization, in SB 5505, of Article XI-Q bonds for grants and capital construction projects. This limitation will allow the Judicial Department to provide grants to counties for courthouse capital construction projects through the Oregon Courthouse Capital Construction and Improvement Fund (OCCCIF), and pay costs associated with issuing the bonds for both the OCCCIF grants, and for capital construction projects approved in SB 5506. A $195.2 million Other Funds limitation is established for the OCCCIF, for transfer of $97.6 million of Article XI-Q proceeds, and an equal amount of county matching funds, for the following two county courthouse replacement projects: HB 5006 A 31 of 41

ď&#x201A;ˇ

Multnomah County Courthouse - $185.2 million (including $92.6 million of bond proceeds) for the Multnomah County Courthouse replacement project. The funds will permit the county to complete construction of the courthouse project. With these moneys, the state will have provided a total of $125 million of bond proceeds for the project over a three-biennium period.

ď&#x201A;ˇ

Lane County Courthouse - $10 million (including $5 million of bond proceeds) for the Lane County Courthouse replacement project. These funds will provide support for planning and development of the project. With these moneys, the state will have provided a total of $6.4 million of bond proceeds for the project over a two-biennium period. The provision of this support does not establish a commitment or expectation for any additional state support for the capital project.

Other Funds expenditures were increased by $1,235,000 for costs of issuing Article XI-Q bonds for the OCCCIF-supported projects, and for two capital construction projects approved in SB 5506. Proceeds of bonds are used to finance these costs. Finally, the Subcommittee established a distinct Other Funds expenditure limitation for the State Court Technology Fund (SCTF), and transferred $17,942,354 from the Operations expenditure limitation to the newly established SCTF expenditure limitation. The SCTF receives revenues from court filing fees, charges for technology services, and the Criminal Fine Account, and its use is restricted to providing support state court electronic systems. Public Defense Services Commission The Subcommittee approved a $1,800,000 increase in General Fund for the Professional Services Account. This appropriation brings total General Fund support for the program to the current service level. The Professional Services Account finances the costs of all trial-level and certain appellate-level public defense services. LEGISLATIVE BRANCH Legislative Administration Committee General Fund of $5,145,277 for Legislative Administration was approved by the Subcommittee for security enhancements to the Oregon State Capitol. The increased funds include: $20,000 for a mass communication system, $528,000 for third party monitoring services, and $4,597,277 for security cameras and networks, independent distribution facility (network closet) upgrade, safety film installation, garage gate replacement, and other security needs. The Subcommittee also approved $906,053 General Fund for debt service on Article XI-Q bonds sold for the Capitol Accessibility, Maintenance, and Safety project. Bonds are scheduled to be sold in spring 2018. In addition, Other Funds expenditure limitation was increased by $239,358 for costs of issuance on the bonds, which will be paid with bond proceeds.

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NATURAL RESOURCES Department of Agriculture In the Agricultural Development and Marketing program, the Subcommittee reduced General Fund by $250,000 due to elimination of a marketing position. This action eliminates one of three permanent full-time positions added to the program during the 2011-13 biennium to increase economic activity in the agriculture sector. Columbia River Gorge Commission The Subcommittee added $24,081 General Fund to the Columbia River Gorge Commission budget to match the amount provided by the State of Washington as required by interstate compact; $14,686 of the increase is provided for the Joint Expenses Program and the remaining $9,395 is for Commissioner Expenses. Department of Environmental Quality The Subcommittee approved a $500,000 one-time General Fund appropriation to complete an inventory of non-road diesel engines with the expectation that DEQ would use a third-party contractor to conduct a state-wide and multi-sector inventory of non-road diesel engines currently in use by private and public fleets for the purposes of informing and refining air quality models. This inventory is expected to be completed no later than May 1, 2019. To ensure the survey results are representative of the statewide inventory, data collection shall be conducted using a mix of sampling techniques, including, but not limited to whole fleet inventories (census style counts), representative sampling of fleets by fleetsize, and industry surveying. Results and assumptions should be verified using existing relevant and complementary data, such as fuel use and business asset data collected by county tax assessors. The Department is to consult with interested stakeholders during various phases of the inventory work including, but not limited to, prior to releasing the inventory request-for-proposal and upon the development of preliminary results. The Department shall make the results of this inventory available to interested stakeholders but only in aggregate form. Department of Fish and Wildlife The Subcommittee approved three General Fund increases for the Department of Fish and Wildlife (ODFW) totaling $1,325,000 for several program changes. First, $425,000 General Fund was added to fund a permanent Natural Resources Specialist 5 position to serve as the Departmentâ&#x20AC;&#x2122;s Sage Grouse Mitigation Program Coordinator. Approximately $175,000 of the $425,000 is for professional services contracts to assist in implementation of the sage grouse mitigation program. Next, $250,000 General Fund was added to restore and make permanent two positions (1.67 FTE) to work on the Integrated Water Resources Strategy involving water flows necessary to maintain fish habitat and in-stream water rights consultations. In addition, it is expected that the positions would also examine the need for a sediment study of the lower Rogue River. Finally, $650,000 General Fund was added to restore three of the five permanent full-time positions eliminated from the Western Oregon Stream Program as part of the General Fund reductions taken in HB 5018, the ODFW budget bill. The three positions that were restored work in Clackamas, Roseburg, and Tillamook. Along with the funding for position costs, $40,839 was added for services and supplies.

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The Subcommittee also established a one-time Other Funds expenditure limitation of $215,000 for the cost of issuance of Article XI-Q General Obligation bonds approved in SB 5505 for repairs and capital improvements at ODFW facilities. Department of Forestry The Subcommittee approved a $57,568 increase in the General Fund appropriation made to the Oregon Department of Forestry (ODF) for the payment of debt service on General Obligation bonds issued for the replacement of a shared facility at Toledo. The Subcommittee also approved an increase in Other Funds expenditure limitation of $1,114,991 to accommodate the payment of $79,991 for debt service and $50,000 in bond issuance costs related to bonds issued for the Toledo facility; the remaining $985,000 is for the cost of issuance of Certificates of Participation related to the Elliott State Forest. In addition, the Subcommittee approved the establishment of an Other Funds expenditure limitation for ODF, in the amount of $100 million, for the payment, from the net proceeds from the sale of Certificates of Participation, of monies to finance the release of all or a portion of the Elliott forest from restrictions resulting from ownership of that forest by the Common School Fund, or to compensate the Common School Fund for the preservation of non-economic benefits of the forest through the imposition, transfer, or sale of restrictions such as easements, use requirements or restrictions, or other methods that preserve non-economic benefits of the forest for the public such as recreation, aesthetics, wildlife or habitat preservation, or other environmental and quality of life considerations. For the initial work required for the development of a federal Habitat Conservation Plan (HCP), the Subcommittee approved a $300,000 increase in Other Funds expenditure limitation pursuant to an agreement with the Department of State Lands for the development of the plan. ODF will use this funding to establish four limited duration positions (3.50 FTE) including a project leader, a HCP coordinator, a threatened and endangered species coordinator, and a data manager/analyst to work with federal agencies to develop a Request for Proposal to complete all the technical work needed for completing the HCP. The Department is also expected to apply for a federal grant to help with the cost of developing the Environmental Impact Statement required for completion of the HCP. It is anticipated that the agency will seek additional expenditure limitation once the remaining project costs are better known. Land Use Board of Appeals For the Land Use Board of Appeals, the Subcommittee added $11,650 General Fund to reclassify a position from Executive Support Specialist I to Executive Support Specialist II. Department of Parks and Recreation The Subcommittee approved an increase in the Other Funds expenditure limitation for the Oregon Department of Parks and Recreation of $5,111,682 for the expenditure of lottery bond proceeds for the Oregon Main Street Revitalization program. The funding will be used to provide competitive grants to organizations participating in the Oregon Main Street Network. The program focuses on projects that acquire, rehabilitate, and construct buildings on properties in designated downtown areas and facilitate community revitalization leading to additional private HB 5006 A 34 of 41

investment, job creation or retention, expansion or establishment of viable businesses, or creating a stronger tax base. The expenditure limitation increase includes $111,682 for bond issuance costs. Department of State Lands For work related to the Elliott State Forest, the Subcommittee established an Other Funds expenditure limitation of $3,985,377 and the establishment of a Project Manager 3 position (1.0 FTE). Specifically, $1,608,930 of the total is for paying costs associated with a custodial forest management contract for the Elliott State Forest. Under the contract, the manager will be responsible for four primary tasks: maintaining road systems for safe public access and fire protection activities; ensuring compliance with all applicable laws; conducting reforestation activities to comply with Oregonâ&#x20AC;&#x2122;s Forest Practices Act; and providing general forest management and oversight. The manager will be the first point of contact for any questions; responsible for identifying problems specific to the property and coordinating with local officials and DSL as necessary; and manage access to the property and coordinate proper disposal of trash and removal of abandoned property. Other components include $608,000 for estimated cost of fire patrol assessments to be paid to the Oregon Department of Forestry (ODF) for wildfire protection, $268,447 for a Project Manager 3 position (1.00 FTE) that will provide general coordination for the Elliott Forest as well as providing project management for the Portland Harbor Superfund Site and Goble cleanup site. Also included is $1,500,000 for development of a federal Habitat Conservation Plan (HCP) and an Environmental Impact Statement (EIS). The HCP development will be via an agreement with ODF; that agency will lead the collaborative work with other state, federal, and private entities. The initial ODF work is anticipated to cost $300,000, the remaining $1,200,000 is to be administratively unscheduled until a better estimate of the total cost to develop the HCP and EIS can be established. ODF anticipates that it will apply for federal grant funding for at least a portion of the cost to develop the EIS. The Subcommittee approved $5,000,000 General Fund for the Department of State Lands to deposit into the Portland Harbor Cleanup Fund established in SB 5530; after deposit (payment), the money is available to be spent as Other Funds. In SB 5530, $3,000,000 in lottery bond proceeds is also allocated for deposit into the Cleanup Fund. To spend the $8,000,000 total subsequently available, a new $8,000,000 Other Funds expenditure limitation is established. To pay costs associated with the issuance of the lottery bonds, the Subcommittee approved an increase in Other Funds expenditure limitation of $57,587. Monies in the Cleanup Fund are for the coordination and participation in any contracts or agreements relating to or arising out of the Portland Harbor Superfund Site that may include investigation of baseline conditions, investigation of key sediment sites, potential infrastructure needs related to contaminated sediments, development and administration of a comprehensive data management system for the site, satisfaction of obligations under any settlement or administrative order, work required by the United States Environmental Protection Agency in connection with the site, and other activities directly related to minimizing the stateâ&#x20AC;&#x2122;s liability for costs related to the Portland Harbor Superfund Site. Water Resources Department The Subcommittee approved a General Fund appropriation of $333,677 for the Water Resources Department (WRD) to fund two Assistant Watermaster positions and an Office Specialist position in Umatilla County, in the Pendleton and Milton-Freewater offices. The former Umatilla HB 5006 A 35 of 41

County positions were authorized in the agency’s primary budget bill (SB 5542) using Other Funds expenditure limitation of $433,677. This action assumed Umatilla County would be covering the cost of the positions via contract with WRD. However, available county resources are projected to be able to provide only $100,000 of this amount, so General Fund will cover the remaining cost. To complete the fundshift, the Subcommittee also approved a $333,677 reduction in Other Funds expenditure limitation. To support pilot programs in several locations throughout the state, the Subcommittee approved an increase of $203,870 General Fund and the establishment of a limited duration, Natural Resource Specialist 4 position (1.00 FTE). The Department was allocated $750,000 in lottery bond proceeds during the 2015-17 biennium to make grants and provide technical assistance to local governments to establish place-based water resource planning pilot programs. Of that grant funding, $600,000 is carried forward into the 2017-19 biennium; $56,000 of that amount remains unobligated. The position authorized by the Subcommittee is a continuation of the limited duration position that was established in the prior biennium to assist in the administration of the program and the distribution of the grant funding. The Subcommittee approved an increase of $1,547,235 Other Funds expenditure limitation for making grants, loans, or providing technical assistance for feasibility studies, and for the payment of bond issuance costs from lottery bond sale proceeds deposited into the Water Conservation, Reuse, and Storage Investment Fund. Of the amount allocated to the Fund, $47,235 is for the payment of bond issuance costs. For water supply projects, the Subcommittee approved a total increase of $21,075,301 Other Funds expenditure limitation for making grants, loans, and paying the cost of bond issuance from lottery bond proceeds deposited into the Water Supply Development Fund established under section 3, chapter 784, Oregon Laws 2013. At $15,000,000, the bulk of the additional limitation provided for the expenditure of net bond proceeds allocated to the fund is for Water Supply Development grants and loans to evaluate, plan, and develop in-stream and out-of-stream water development projects that repair or replace infrastructure to increase the efficiency of water use; provide new or expanded water storage; improve or alter operations of existing water storage facilities in connection with newly developed water; create new, expanded, improved, or altered water distribution, conveyance, or delivery systems in connection with newly developed water; allocate federally stored water; promote water reuse or conservation; provide streamflow protection or restoration; provide for water management or measurement in connection with newly developed water; and, determine seasonally varying flows in connection with newly developed water. To pay for bond issuance costs, $375,301 Other Funds expenditure limitation is needed. The remaining expenditure limitation approved by the Subcommittee is for three specific projects that, while comporting to the other requirements of grants made from the Water Supply Development Fund, are not subject to any application process, public benefit scoring, or ranking. The projects and amounts are:   

City of Carlton, Panther Creek Reservoir sediment reduction and water storage capacity increase project - $2,500,000 City of Carlton, Finished water supply line loss reduction project - $2,000,000 Santiam Water Control District, Mill Creek Corporate Center irrigation conversion and efficiency project - $1,200,000 HB 5006 A 36 of 41

PUBLIC SAFETY Department of Corrections To purchase two new transport buses to replace vehicles at the end of their service life, the Subcommittee approved a one-time appropriation of $708,788 General Fund in the Department of Corrections’ Operations Division. The Subcommittee approved an increase in Other Funds expenditure limitation of $721,466 for cost of issuance of $39,215,000 in Article XI-Q bonds authorized in SB 5506 for the Department of Corrections’ deferred maintenance program and for technology infrastructure upgrades. Bonds will be issued in May 2018 and in March 2019. The agency’s General Fund appropriation for debt service was increased by $1,926,252 for new debt service estimated to be paid in 2017-19. Debt service for bonds issued in 2017-19 is estimated to be $7,616,448 General Fund in 2019-21. Oregon Department of Justice The Subcommittee approved $16,573,792 Other Funds expenditure limitation for project costs, which is to be financed with $16,267,633 of Article XI-Q bonds approved in SB 5505 and $306,159 in bond proceeds that were authorized and issued during the 2015-17 biennium but remained unexpended. The Subcommittee also approved $32,136,210 Federal Funds expenditure limitation and the establishment of 32 permanent full-time positions (23.81 FTE). This includes personal services of $5.8 million and services and supplies of $43.0 million. The amount for services and supplies includes $35.8 million total funds of contractor payments for: project management, including organization change management services; implementation; independent quality assurance; and independent verification and validation. Unless otherwise approved by the Legislature or the Emergency Board, the positions budgeted for the project are established as permanent fulltime under the following conditions: (a) the positions will be abolished on or before the completion of the project; (b) the positions are to remain in the CSEAS program (i.e., CSEAS summary cross reference) and may not be transferred to any other program or used for any purpose other than the development of the CSEAS project; and (c) the positions may not be included in any permanent finance plan action. Other Funds expenditure limitation of $317,367 is included for the cost of issuance of the bonds. The Subcommittee appropriated $3,391,920 in additional General Fund Debt Service to support repayment of Article XI-Q General Obligation bond proceeds approved in SB 5505. The Subcommittee approved $6,916,041 Other Funds expenditure limitation and 35 permanent full-time positions (30.80 FTE) for the Civil Enforcement Division - Child Advocacy Section to represent Child Welfare caseworkers in court and provide full access to legal representation, legal counsel, legal advice, litigation support, and training. The revenue to support this package was approved in SB 5526, the primary budget bill for the Department of Human Services (DHS). DHS will be billed by DOJ no more than $6.9 million for the increase in juvenile dependency workload using DOJ’s traditional fee-for-service billing model. DOJ will also provide DHS with a monthly billing summary of the legal work performed. DOJ has committed to tracking quality assurance measures, including outcome measures. HB 5006 A 37 of 41

Statewide implementation will be through a three-phase approach across all 36 counties: Phase-I will be completed by January 1, 2018 for: Benton; Coos; Gilliam; Grant; Hood River; Josephine; Lane; Lincoln; Linn; Morrow; Polk; Sherman; Tillamook; Wasco; and Wheeler Counties. Phase-II will be completed by July 1, 2018 for: Columbia; Crook; Deschutes; Douglas; Harney; Jackson; Jefferson; Klamath, Lake; Malheur; Umatilla; and Yamhill counties. Phase-III will be completed by January 1, 2019 for: Baker; Clackamas; Clatsop; Curry; Marion; Multnomah; Union; Washington; and Wallowa counties. The final implementation schedule, however, may change depending upon the needs of a specific county. Both DOJ and DHS will work collaboratively with county District Attorneys to ensure juvenile dependency cases are handled in a consistent and coordinated manner with as much continuity as possible throughout the legal proceedings. This investment in legal services was, in part, the result of work completed by the Task Force on Legal Representation in Childhood Dependency, which was established by SB 222 (2015). While, due to limited General Fund resources, the Legislature was unable to fund most Task Force recommendations, the affected state agencies and legal partners are committed to continuing to work on system improvements. In recognition of this commitment, the Subcommittee approved the following budget note: Budget Note: The Department of Human Services, Department of Justice, Oregon Judicial Department, and Public Defense Services Commission shall work collaboratively, at both the state and local levels, to solicit input on, develop, and implement strategies to improve the effectiveness and efficiency of Oregonâ&#x20AC;&#x2122;s juvenile dependency systems and to determine the appropriate level of legal services. Potential strategies should include standardizing forms, streamlining processes, conforming practices, and adopting administrative or court rules. The agencies are expected to identify and begin implementing strategies no later than July 1, 2018. Options for providing more effective and cost-efficient legal and other services should also be reviewed and analyzed. The agencies will submit a joint report on the progress of these efforts to the Interim Joint Committee on Ways and Means or the Emergency Board by October 2018. In addition, each agency shall include an update, in its budget presentation to the Joint Committee on Ways and Means during the 2019 session, on its specific roles, activities, strategies, and costs to improve the effectiveness and efficiency of Oregonâ&#x20AC;&#x2122;s juvenile dependency system. In addition, the Legislature, under separate legislation (HB 3470), extended the sunset on the provision authorizing DHS to appear as a party in a juvenile court proceeding without appearance of an Attorney General from June 30, 2018 to June 30, 2020 to accommodate the planned implementation schedule. The Department of Administrative Services is directed to unschedule $4.0 million of the General Fund in the DHS budget and $4.0 million of the Other Funds expenditure limitation in the DOJ budget pending demonstration to the Legislative Fiscal Office that the work performed, billing, reporting, and communication between the agencies is consistent with the budget cap, implementation schedule, and service level expectations for the caseworker legal representation program.

HB 5006 A 38 of 41

For SB 243, the Subcommittee approved implementation costs of $123,932 Other Funds and established one permanent part-time Assistant Attorney General position (0.38 FTE) in DOJâ&#x20AC;&#x2122;s Civil Enforcement Division. The Division provides services to train caseworkers and certifiers on the new legal standard of abuse, advises Department of Human Services (DHS) in the preparation and adoption of administrative rules, as well as child protective services investigations, confidentiality laws, and release of records. The Division also provides advice and legal representation to DHS in all administrative appeals of those investigations and related certification actions for certified foster homes. The revenue source to fund this expense is legal service charges billed to DHS. The roll-up costs are estimated to be $89,084 Other Funds and one position (0.25 FTE) for the 2019-21 biennium. The Subcommittee approved $500,000 General Fund to support Community Assessment Centers, as a one-time increase, in order to provide child abuse medical assessments. The funding will be administered through the Oregon Department of Justice, Crime Victims Services Division, as pass through funds distributed to the statewide Community Assessment Centers network association, which will ensure equitable distribution. To support the Oregon Crime Victims Law Center, the Subcommittee also appropriated $175,000 General Fund as a one-time increase. This will bring total funding for the Law Center from the Department of Justice to $554,559, including $504,599 General Fund and $50,000 Other Funds; the latter is from the renewal of a state grant funded from punitive damage awards. Oregon Military Department The Subcommittee approved an increase in Other Funds expenditure limitation of $448,244 for cost of issuance of $23,730,000 in Article XI-Q bonds authorized in SB 5506 for three Regional Armory Emergency Enhancement projects in Salem, Newport, and Coos Bay; an Armory Service Life Extension project at the Grants Pass armory; and to re-issue bonds for the Regional Training Institute and Youth Challenge capital construction projects in 2017-19. Bonds are planned to be issued in October 2017, and in March 2019. The agencyâ&#x20AC;&#x2122;s General Fund appropriation for debt service was decreased by $378,344 for debt service estimated to be paid in 2017-19 due to anticipated debt service savings. Debt service in 2019-21 for bonds issued in 2017-19 is estimated to be $4,305,134 General Funds. The Subcommittee approved a one-time appropriation of $1,000,000 General Fund for construction of or repairs to the Oregon Military Museum at Camp Withycombe in Clackamas, Oregon. To operationalize the provisions of HB 2687, the Subcommittee increased Other Funds expenditure limitation in the Oregon Military Department, Office of Emergency Management by $5,000,000 to capitalize the Resiliency Grant Fund, and increased Other Funds expenditure limitation by $70,000 to pay for the cost of bond issuance. Other Funds limitation is funded by the sale of Article XI-Q bonds authorized in SB 5506. The Subcommittee added $181,178 General Fund and increased Federal Funds expenditure limitation by $181,178 and approved two permanent positions (2.00 FTE) to administer the program and the grant-making process. HB 5006 A 39 of 41

Department of Public Safety Standards and Training The Department of Public Safety Standards and Training’s Federal Funds expenditure limitation was increased by $469,566 to allow the expenditure of grant funds from the federal Assistance to Firefighters grant program on a new mobile fire training unit, to replace equipment at the end of its service life. Oregon State Police The Subcommittee increased Other Funds expenditure limitation in the Patrol Division by $2,521,711 to support the addition of six troopers and one sergeant (7.00 FTE) in the Capitol Mall Security Unit. The Subcommittee approved $6,230,000 General Fund and established twenty sworn positions (18.32 FTE) to increase highway patrol coverage statewide, and to provide additional drug enforcement detectives in central and southern Oregon counties. Oregon Youth Authority To continue the installation of video monitoring systems to supplement the Oregon Youth Authority’s sexual abuse prevention, detection, and response efforts for adherence to the US Prison Rape Elimination Act of 2003 (PREA), the Subcommittee approved a one-time appropriation of $771,000 General Fund. The Subcommittee approved an increase in Other Funds expenditure limitation of $676,086 for cost of issuance of $39,995,000 in Article XI-Q bonds authorized in SB 5506 to remodel five living unit cottages at the MacLaren Youth Correctional Facility, to remodel two dormitory spaces at the Rogue Valley Youth Correctional Facility, and to undertake deferred maintenance projects in 2017-19. Bonds are planned to be issued in May 2018 and in March 2019. The agency’s General Fund appropriation for debt service was increased by $1,695,236 for new debt service estimated to be paid in 2017-19. Debt service for bonds issued in 2017-19 is estimated to be $6,104,546 General Fund in 2019-21. TRANSPORTATION Department of Transportation Other Funds expenditure limitation for the Oregon Department of Transportation (ODOT) for the 2017-19 biennium is decreased by $406,813 as an adjustment to Central Services to account for the transfer of positions from ODOT to the Office of the State Chief Information Officer. The Subcommittee approved an increase in Other Funds expenditure limitation in ODOT’s Transportation Program Development section of $30 million in lottery bond proceeds for ConnectOregon VII. In addition, the Other Funds expenditure limitation is increased by $433,693 for cost of issuance expenses. There is no debt service in the 2017-19 biennium as the bonds will not be sold until the spring of 2019. HB 5006 A 40 of 41

The Subcommittee approved an increase in Other Funds expenditure limitation in ODOT’s Public Transit Program of $5 million in lottery bond proceeds for the Lane Transit District’s expansion of the EmX Bus Rapid Transit network. In addition, the limitation is increased by $119,541 for cost of issuance expenses. There is no debt service in the 2017-19 biennium as the bonds will not be sold until the spring of 2019. The Subcommittee approved an increase in Other Funds expenditure limitation in ODOT’s Local Government Program of $2 million in lottery bond proceeds for City of Portland SW Capitol Highway safety improvements. In addition, the Other Funds expenditure limitation is increased by $50,587 for cost of issuance expenses. There is no debt service in the 2017-19 biennium as the bonds will not be sold until the spring of 2019.

Adjustments to 2015-17 Budgets Commission on Judicial Fitness and Disability The Subcommittee increased the 2015-17 biennium General Fund appropriation for extraordinary expenses by $35,000 to fund costs incurred for the investigation and prosecution of cases of judicial misconduct. Oregon Department of Transportation Other Funds expenditure limitation for the Oregon Department of Transportation for the 2015-17 biennium was increased by $45.5 million for Highway Division programs for costs associated with winter storms, implementation of an ADA-related settlement agreement, and for increased project payout. Federal Funds expenditure limitation for the Oregon Department of Transportation for the 2015-17 biennium was increased by $8.1 million to complete commitments carried over from the 2013-15 biennium.

HB 5006 A 41 of 41

79th Oregon Legislative Assembly – 2017 Regular Session

HB 5039 A BUDGET REPORT and MEASURE SUMMARY

Carrier: Sen. Johnson

Joint Committee On Ways and Means Action Date: Action: Senate Vote Yeas: House Vote Yeas: Nays: Prepared By: Reviewed By:

06/21/17 Do pass the A-Eng bill. 12 - DeBoer, Devlin, Frederick, Girod, Hansell, Johnson, Manning Jr, Monroe, Roblan, Steiner Hayward, Thomsen, Winters 10 - Gomberg, Holvey, Huffman, McLane, Nathanson, Rayfield, Smith G, Smith Warner, Stark, Williamson 1 - Whisnant Tamara Brickman, Department of Administrative Services Amanda Beitel, Legislative Fiscal Office

Department of Veterans’ Affairs 2017-19

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

HB 5039 A 1 of 10

Budget Summary*

General Fund General Fund Debt Service Lottery Funds Other Funds Limited Other Funds Nonlimited Other Funds Debt Service Nonlimited Federal Funds Limited Total

2015-17 Legislatively Approved Budget(1)

$ $ $ $ $ $ $ $

10,389,026 2,618,940 82,929,644 175,525,000 167,808,710 1,150,000 440,421,320

2017-19 Committee Recommendation

2017-19 Current Service Level $ $ $ $ $ $ $ $

10,049,290 1,017,323 86,784,284 168,025,000 219,521,159 485,397,056

$ $ $ $ $ $ $ $

7,500,000 1,017,323 12,868,322 100,457,558 168,025,000 219,521,159 500,000 509,889,362

Committee Change from 2015-17 Leg. Approved $ $ $ $ $ $ $ $

$ Change (2,889,026) (1,601,617) 12,868,322 17,527,914 (7,500,000) 51,712,449 (650,000) 69,468,042

% Change (27.8%) (61.2%) 100.0% 21.1% (4.3%) 30.8% (56.5%) 15.8%

Position Summary Authorized Positions Full-time Equivalent (FTE) positions

88 87.76

88 88.00

94 94.00

6 6.24

(1)

Includes adjustments through December 2016 Excludes Capital Construction expenditures

Summary of Revenue Changes The Oregon Department of Veterans’ Affairs (ODVA) funds its programs with a mix of General Fund (1.7 percent), Lottery Funds (2.5 percent), and Other Funds (95.7 percent). The department also receives Federal Funds for certain U.S. Department of Veterans’ Affairs (USDVA) grants. The most significant Other Funds sources are: veteran home loan repayments; dedicated fund general obligation bond proceeds; fees from the conservatorship program and loan-related services; rent from leasing space within the Veterans’ building; Veterans’ Homes resident payments, including funds from the USDVA, Medicare and Medicaid reimbursements, insurance companies, and private payers; and investment earnings. With the passage of Measure 96 (2016), funding for the Oregon Department of Veterans’ Affairs increased overall, due to the addition of Lottery Funds. Measure 96 directed 1.5 percent of net lottery proceeds into a Veterans’ Services Fund to provide services for the benefit of veterans. Total lottery revenue dedicated to veterans’ services is projected to be $18.7 million for the 2017-19 biennium. Lottery Funds will be allocated to ODVA for budgeted Lottery Funds expenditures. The Veterans’ Loan Program funds have been used for many years to fund both the Loan Program and the Veterans’ Services Program. The department has sufficient Other Funds revenue to maintain the operations of the department during the biennium. The use of resources from the HB 5039 A 2 of 10

loan program to support the Veteran Services Program has contributed to a decline in funding for the loan program. The department received General Fund in the 2013-15 and 2015-17 biennia, to restore funding for most Veterans’ Services positions paid with loan program monies. Additionally, the 2017-19 budget shifts the remaining Veterans’ Services costs supported with home loan revenues to Lottery Funds, eliminating subsidization of veterans’ services activities and stabilizing the loan program.

Summary of Transportation and Economic Development Subcommittee Action ODVA has four major operational functions: veterans’ services, the veteran home loan program, the two veteran homes (The Dalles and Lebanon) and core operations supporting and enhancing other functions. ODVA recognizes the need to maximize the current veteran benefits that federal, state, local governments and nonprofits provide and is working to develop and deepen fully engaged partnerships. The Subcommittee approved a budget of $509,889,362 total funds and 94 positions (94.00 FTE). This is a 15.8 percent increase from the 2015-17 Legislatively Approved Budget and an additional six positions (6.24 FTE). Loan Program In 1945, Oregon citizens voted to create a Veterans’ Home Loan program, established in Article XI-A in the Oregon Constitution. The Home Loan Program provides low-interest rate mortgages on single family, owner-occupied homes to qualified veterans. Oregon is one of five states in the nation grandfathered under federal tax law to offer a state veteran home loan program; the other four states are Alaska, California, Texas, and Wisconsin. Historically, this enhanced housing benefit has generally resulted in significantly lower home loan interest rates than are normally available in the marketplace, which have been achieved through the issuance of tax-free, state general obligation bonds called Qualified Veteran Mortgage Bonds (QVMB). QVMB’s have limitations on how they can be used, most notably, borrowers must apply for a loan within 25 years of discharge from military service and funds cannot be used for refinancing. The Home Loan Program has limited amounts of less restrictive bond monies from which it can also make loans to veterans who apply for a loan after 25 years from date of discharge (Measure 70 loans). It is this money being used to finance loans made to Oregon veterans, made eligible as a result of the passage of Measure 70 in 2010. The program offers financing up to the Fannie Mae limit, currently $424,100. The Loan Program is entirely Other Funds limitation. The revenues are derived from loan and contract repayments, proceeds from bond sales (both of which are constitutionally dedicated for certain veteran programs), fee and rental income, and investment earnings. In addition to being constitutionally dedicated, Loan Program funds are restricted in their use by federal tax law, bond covenants, standby bond purchase agreements and liquidity provider agreements. The Subcommittee approved a budget of $16,849,771 Other Funds limitation and 46 positions (46.00 FTE). This is a 6.0 percent increase from the 2015-17 Legislatively Approved Budget.

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The Subcommittee approved Package 101, 21st Century Service Delivery. The package increases Other Funds limitation by $250,000 to purchase and install an "end-to-end" home loan system. An "end-to-end" loan system combines an origination and a servicing system, which carries loan information entered during the initial application and loan origination phase through to the loan servicing process, creating efficiencies and reducing errors. The new software system will also allow veterans to review home loan information online. The Subcommittee approved Package 102, Target Veteran Services. The package decreases Other Funds limitation by $1,666,406 and reduces the Home Loan Program by six positions (6.10 FTE). A corresponding increase in Lottery Funds limitation and positions is included in the Veterans' Services Program. Home Loan Program revenues have historically been used to supplement veterans' services costs; however, this practice has led to losses and a decrease in the overall net position of the Home Loan Program over the last six years. This packages shifts funding for six veterans' services positions and associated Services and Supplies expenditures from Other Funds, supported by home loan revenues, to Lottery Funds in the Veterans' Services Program. Eliminating the subsidization of veterans' services program activities will strengthen, stabilize, and sustain the Home Loan Program for future generations of veterans. The Subcommittee approved Package 103, Strengthen Veteran Home Loan Program. The package increases Other Funds limitation by $1,134,692 and one position (1.00 FTE) to strengthen and improve compliance in the Home Loan Program and "refresh" the ODVA state office building. An Operations and Policy Analyst 2 position is established to serve as a Quality Assurance and Compliance Coordinator (QA/CC) in the Home Loan Program to maintain oversight and compliance with federal and state regulations, including new Consumer Financial Protection Bureau (CFPB) rules. Funding is also provided to reclassify two existing Loan Specialist 1 positions to Loan Specialist 2 positions, due to the increased responsibilities of these positions to comply with the new Dodd-Frank and CFPB regulations for loan origination. Included in this limitation increase is one-time funding of $933,333, provided to "refresh" the ODVA state office building, including replacing the carpet, painting the walls and updating signage on the exterior and interior of the building to improve readability. Veterans’ Services Program The Veterans’ Services Program is responsible for providing advocacy and benefits to veterans, their dependents and survivors. The program provides benefits counseling, claims and appellate representation, certification and training for counties and national service organizations, conservatorship services, educational assistance, emergency financial assistance, and other service delivery partnerships across the state. Veterans’ services programs include: Statewide Veterans Services, County Veteran Service Officers (CVSOs), National Service Organizations (NSO), Aging Veteran Services and Conservatorship and the Emergency Financial Assistance Program. Prior to the 2017-19 biennium, Veterans’ Services Programs received primarily General Fund, but also utilized various Other Funds resources. The Conservatorship program charges fees on the income and assets of persons under conservatorship. With the passage of Measure 96 (2016), this program will also receive Lottery Funds for providing services to veterans across Oregon.

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The Subcommittee approved a budget of $7,500,000 General Fund, $12,868,322 Lottery Funds, $107,623 Other Funds limitation, $500,000 Federal Funds limitation and 43 positions (43.00 FTE). The total funds budget of $20,975,945 is a 68.2 percent increase from the 2015-17 Legislatively Approved Budget and an additional 11 positions (11.34 FTE). The Subcommittee approved Package 090, Analyst Adjustments. The package decreases General Fund by $2,549,290 and increases Lottery Funds by $2,549,290 to fund a portion of the Department's current service level budget with Lottery Funds. Pass-through funding for the CVSOs is shifted from General Fund to Lottery Funds. Targeted General Fund reductions, due to budget constraints, are offset with Lottery Funds available through the passage of Measure 96. Package 90 does not eliminate funding for programs in ODVA’s current service level budget, including $103,700 General Fund for the Emergency Financial Assistance Program, which provides one-time grants to veterans who have emergency needs. Finally, the package also provides $1 Federal Funds limitation as a placeholder for anticipated Federal grant awards. The Subcommittee approved Package 101, 21st Century Service Delivery. The package increases Lottery Funds limitation by $600,000 to replace the department's conservatorship system. The conservatorship system enables court-appointed ODVA conservators and trust officers to deliver conservatorship and representative payee services. The current legacy system is outdated and supported by the original retired developer on contract with the department, two days a week. The package provides funding for one-time development, implementation, and training costs of $400,000 and ongoing software licensing and maintenance costs of $200,000, which will allow ODVA to proceed with a Request for Proposal (RFP) to replace the conservatorship system with a new, effective and efficient application. The Subcommittee approved Package 102, Target Veteran Services. The package increases Lottery Funds limitation by $9,369,032 (allocated from the lottery dollars dedicated by Measure 96), decreases Other Funds limitation by $920,464 and adds 11 positions (11.10 FTE) in the Veterans’ Services Program, to expand access to services for the underserved veteran community by strengthening the County and National Service Organizations, expanding services to aging veterans and stabilizing the Home Loan program by reducing the subsidization of Veterans' Services Program activities by loan program revenues. 

Within this package, the CVSO program is enhanced by $4,354,861, for total CVSO funding of $8,709,722, and the National Service Organizations (NSO) program is enhanced by $118,156, for total NSO funding of $236,312. This increase in CVSO and NSO funding is intended to enhance existing state and county funding, helping to serve more veterans, increase the number of claims filed and bring more federal dollars to the state.



$390,256 Lottery Funds is included in the package to establish two positions (2.00 FTE) to accommodate the increased statewide support services workload anticipated with the additional CVSO funding. A trainer position (Program Analyst 2) in the Salem office is established to provide essential training and certification for county veteran service officers; and an administrative specialist position (Office Specialist 2) is established to process the increased number of claims and appeals expected to be filed through the Portland ODVA office.



The package also includes $380,548 Lottery Funds to establish two positions (2.00 FTE) within the Aging Services Program. A Representative Payee (Administrative Specialist 2) position is added to accommodate the representative payee caseload. An Aging HB 5039 A 5 of 10

Veterans' Outreach Specialist (Program Analyst 2) position is added to serve as a veteran service officer (VSO) with expertise in veterans' benefits and complex aging health care issues. ď&#x201A;ˇ

Finally, the package includes a decrease in Other Funds limitation by $920,464 and increases Lottery Fund expenditures by $2,139,011 to shift the Other Funds portion of 10 positions in the Veterans' Services Program to Lottery Funds ($920,464) as well as to pay for the Veterans' Services Program share of support services costs ($1,218,547). To reduce the subsidization of this program with Home Loan funds, the package increases Lottery Funds for the corresponding Other Funds reductions of $1,666,406 (6.10 FTE) in the Home Loan Program and $319,794 (1.00 FTE) in the Veterans' Home Program.

The Subcommittee approved Package 104, Mobilize Partnerships. The package increases Lottery Funds limitation by $350,000 (allocated from the lottery dollars dedicated by Measure 96) in the Veteransâ&#x20AC;&#x2122; Services Program to support a veterans' crisis and suicide prevention hotline that offers free, anonymous assistance, 24-hours a day, to active-duty service members, veterans and their families. To avoid duplication of services and in order to provide delivery of the most efficient services, coordination should ensure that the contract for suicide crisis intervention services is with a provider that has contractual affiliation with the National Suicide Prevention Line and the National Veteranâ&#x20AC;&#x2122;s Crisis Line. This package also reserves $1.5 million in Measure 96 Lottery Funds to be allocated to address veterans' homelessness and housing issues, pending ODVA and the Housing and Community Services Department reporting to the Joint Committee on Ways and Means in February 2018. Budget Note The Housing and Community Services Department and the Oregon Department of Veterans' Affairs are directed to work in concert to develop a plan to advise the Legislature on strategic investments of Measure 96 lottery dollars for veterans' homelessness and housing issues that will result in long-term housing stability for veterans. The Oregon Department of Veterans' Affairs and the Housing and Community Services Department will report back to the Joint Committee on Ways and Means in February 2018 with a proposal that includes a key performance measure to quantify progress toward this goal. The report shall include, but need not be limited to the following: information on best practices and programs in other states that have shown efficacy; the amount and source of resources intended to be utilized for each option presented; other partners or cooperation necessary from state of local entities; the number of veterans that can be assisted with each proposal at the suggested level of support; and whether changes to statute would be needed to implement the plan. The Subcommittee approved Package 801, LFO Analyst Adjustments. The package increases Federal Funds limitation by $499,999, with the understanding that the Department of Administrative Services will un-schedule the limitation increase until ODVA has received Legislative approval to apply for a federal grant and has been notified that its application for the grant has been successful. ODVA expects to receive notice of a Transportation of Veterans in Highly Rural Areas renewal grant opportunity in July, after the close of the 2017 session. ODVA will submit a 10-day notification letter of its intent to submit an application to legislative leadership and seek retroactive approval to apply, during September 2017 Legislative days. Typically, Federal Funds limitation would not be increased until the February 2018 Session, which would delay distribution HB 5039 A 6 of 10

of the grant funds to counties. This package allows federal limitation to be scheduled once ODVA is notified that its application is successful. ODVA has applied and received the annual Highly Rural Transportation Grant since the grant program was established in 2014. Oregon Veterans Home Program The Oregon Veterans Home Program provides the state’s most vulnerable veterans and their families with skilled nursing, Alzheimer’s and memory-related and rehabilitative care in an environment understanding the unique needs of the men and women who served our country in uniform. Currently, there are two facilities located in Oregon, one in The Dalles and the second in Lebanon. Care at the Oregon Veteran’s Homes is an earned benefit available to veterans, their spouses and parents who had a child die while serving in the United States Armed Forces. The ODVA contracts with Veterans Care Centers of Oregon (VCCO), a non-profit organization, for the day-to-day operation of the facility. The contract with VCCO followed the state’s competitive procurement process and has resulted in the delivery of award-winning high quality care to veterans. The Oregon Veterans Home Program operational funding is derived entirely from Other Funds limitation. Operational funds come primarily from resident care-related payments, including the U.S. Department of Veterans' Affairs, which provides a daily per diem rate for qualifying residents, Medicare and Medicaid payments, and private pay for certain residents. The program also receives donated monies used to enhance the quality of life of residents at the homes. General Fund is appropriated for debt service on Article XI-Q Bonds, issued in November 2013, used as a portion of the local/state match to construct the Veterans’ Home in Lebanon. The Subcommittee approved a budget of $1,107,323 General Fund, $83,500,164 Other Funds limitation and five positions (5.00 FTE). The total funds budget of $84,517,487 is a 23.0 percent increase from the 2015-17 Legislatively Approved Budget. The Subcommittee approved Package 090, Analyst Adjustments. The package increases Other Funds limitation by $14,946,166 to address the Lebanon Veterans' Home operating at a higher census and occupancy level sooner than was originally anticipated, in addition to a higher than anticipated census at The Dalles Veterans' Home. This package also includes updated projections for minimum wage costs. These dollars are expended as professional services under a contract with Veterans Care Centers of Oregon (VCCO), a non-profit organization, for the day-to-day operations of each facility. Operational expenditures are covered through payments received by ODVA for resident care. The Subcommittee approved Package 102, Target Veteran Services. The package decreases Other Funds limitation by $70,714 in the Veterans' Home Program, which is the net impact of transferring the Aging Services Director from this program to the Veterans’ Services Program and establishing an Assistant Director for Aging Services (Principal/Executive Manager D) within this program. The Assistant Director for Aging Services will help direct and manage the day-to-day operations of the division, including the two Oregon Veterans' Homes program directors and contractors who manage the homes. The Aging Services Director is responsible for coordinating the statewide effort related to aging veterans' services. This results in a net zero add of positions within the Veterans' Home Program. The Director’s position being transferred to the Veterans’ Services Program is funded with Lottery Funds. HB 5039 A 7 of 10

Nonlimited This program unit includes two types of expenditures: 

Loan and Bond Nonlimited expenditures consist of loan-related expenditures including loans made, payment of property taxes, hazard insurance, foreclosure and state-owned property costs and other costs incurred to protect the State’s interest in property used to secure a loan. Additionally, bond-related costs for the planning for and issuing of bonds, including bond counsel and attorney fees, State Treasury bond fees and fees relating to preparing bond disclosure documents are Nonlimited.



Debt Service Nonlimited expenditures are the principal and interest payments due on bond sales and any net interest, rate swap payments made to swap counterparties.

Revenue for the Nonlimited program comes from bond proceeds, loan repayments and investment earnings. The Subcommittee approved a budget of $387,546,159 Other Funds Nonlimited. This is a 12.9 percent increase from the 2015-17 Legislatively Approved Budget. This increase is largely due to an increase in debt service payments expected in 2017-19.

Summary of Performance Measure Action See attached Legislatively Adopted 2017-19 Key Performance Measures form.

HB 5039 A 8 of 10

DETAIL OF JOINT COMMITTEE ON WAYS AND MEANS ACTION Oregon Department of Veterans' Affairs Tamara Brickman - (503) 378-4709 OTHER FUNDS GENERAL FUND

DESCRIPTION

LOTTERY FUNDS

LIMITED

FEDERAL FUNDS

NONLIMITED

LIMITED

TOTAL ALL FUNDS

NONLIMITED

POS

2015-17 Legislatively Approved Budget at Dec 2016 * 2017-19 Current Service Level (CSL)*

$ $

13,007,966 11,066,613

$ $

82,929,644 86,784,284

$ $

343,333,710 387,546,159

$ $

1,150,000 -

$ $

440,421,320 485,397,056

SUBCOMMITTEE ADJUSTMENTS (from CSL) SCR 001 - Loan Program Package 101: 21st Century Service Delivery Capital Outlay

250,000

Package 102: Target Veteran Services Personal Services Services and Supplies

$ $

(1,163,226) $ (503,180) $

$ $

Package 103: Strengthen Veteran Home Loan Program Personal Services Services and Supplies

$ $

183,526 951,166

$ $

183,526 951,166

SCR 002 - Veterans' Services Program Package 090: Analyst Adjustments Special Payments (Dist. to Counties)

(2,549,290) $

2,549,290

Package 101: 21st Century Services Delivery Capital Outlay

600,000

Package 102: Target Veteran Services Personal Services Services and Supplies Special Payments (Dist to Counties) Special Payments (Dist to Non-Gov't Units)

$ $ $ $

2,980,058 1,915,957 4,354,861 118,156

$ $ $ $

2,059,594 1,915,957 4,354,861 118,156

Package 104: Mobilize Partnerships Services and Supplies

350,000

Package 801: LFO Analyst Adjustments Special Payments (Dist to Counties)

499,999

SCR 003 - Oregon Veterans Home Program Package 090: Analyst Adjustments Services and Supplies

14,946,166

Package 102: Target Veteran Services Personal Services Services and Supplies

$ $

(118,364) $ 47,650 $

$ $

TOTAL ADJUSTMENTS

(2,549,290) $

12,868,322

13,673,274

500,000

SUBCOMMITTEE RECOMMENDATION *

12,868,322

100,457,558

387,546,159

500,000

% Change from 2015-17 Leg Approved Budget % Change from 2017-19 Current Service Level

8,517,323

(34.5%) (23.0%)

100.0% 100.0%

(920,464) -

21.1% 15.8%

12.9% 0.0%

(56.5%) 100.0%

0.0% 0.0%

FTE 88 88

87.76 88.00

(6)

(6.10)

1.00

11.10

0.00

24,492,306

6.00

509,889,362

94.00

6.8% 6.8%

7.1% 6.8%

(1,163,226) (503,180)

(118,364) 47,650

15.8% 5.0%

*Excludes Capital Construction Expenditures

HB 5039 A 9 of 10

Legislatively Approved 2017 - 2019 Key Performance Measures Published: 6/18/2017 12:38:21 PM Agency: Veterans' Affairs, Department of Mission Statement:

The Oregon Department of Veterans' Affairs (ODVA), serves and honors veterans through our leadership, advocacy and strong partnerships. Legislatively Approved KPMs

Metrics

Agency Request

1. b. Loan Program - Loan Origination. Increase the loan origination volume to $35 million or more in new loans per year. 1. a. Loan Program - Delinquent Accounts - Percentage of Oregon Department of Veterans' Affairs home loan accounts that are delinquent. 2. a. Oregon Veterans Homes - Maintain an occupancy rate of at least 80% for licensed beds in both Veteran Homes. 2. b. Oregon Veterans Homes - Maintain below-market veteran private pay rates. 3. Veteran Services - Disability Compensation and Pension Benefits Amount of average U.S. Department of Veterans Affairs (federal VA) disability and pension compensation received per Oregon Veteran who receives these benefits. 4. Veteran Services - Power of Attorney (POA) - Number of powers of attorney granted by veterans to veteran service officers and the Department. 5. Customer Satisfaction - Percentage of customers rating their satisfaction with the Oregon Department of Veterans' Affairs customer service as "good" Timeliness or "excellent": overall, timeliness, accuracy, helpfulness, expertise, and availability of information. Accuracy Availability of Information Expertise Overall Helpfulness 6. Best Practices - Percent of total applicable best practices met by the Board.

Last Reported Result

Target 2018

Target 2019

Approved

$62.30

$35.00

Approved

0.80%

1.50%

Approved

77%

80%

Approved

$205.00

$321.00

$340.00

Approved

$15,225.00

$15,787.00

$16,324.00

Approved

11,842

12,000

13,200

Approved

88%

90%

88% 80% 88% 93% 91%

90% 90% 90% 90% 90%

100%

Approved

LFO Recommendation:

The Legislative Fiscal Office recommends approval of the proposed Key Performance Measures and targets. SubCommittee Action:

The Transportation and Economic Development Subcommittee approved the Legislative Fiscal Office recommendations.

HB 5039 A 10 of 10

79th Oregon Legislative Assembly â&#x20AC;&#x201C; 2017 Regular Session

SB 5505 A BUDGET REPORT and MEASURE SUMMARY

Carrier: Rep. Holvey

Joint Committee On Ways and Means Action Date: Action: House Vote Yeas: Exc: Senate Vote Yeas: Nays: Prepared By: Reviewed By:

07/03/17 Do Pass the A-Eng bill. 8 - Gomberg, Holvey, Huffman, McLane, Nathanson, Rayfield, Smith Warner, Williamson 3 - Smith G, Stark, Whisnant 11 - DeBoer, Devlin, Frederick, Girod, Hansell, Johnson, Manning Jr, Monroe, Roblan, Steiner Hayward, Winters 1 - Thomsen Jean Gabriel, Department of Administrative Services Amanda Beitel, Legislative Fiscal Office

Various 2017-19

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

SB 5505 A 1 of 18

Budget Summary None.

Summary of Capital Construction Subcommittee Action Senate Bill 5505 limits the maximum amount of bonds and third party financing agreements state agencies may issue and the amount of revenue state agencies may raise from such issuance. The proceeds from the issuance of bonds are included as revenues in agency budgets. This bill also allocates the federal tax-exempt private activity bond volume cap allowed under the Internal Revenue Code of 1986, as amended, to certain state agencies and the Private Activity Bond Committee established in ORS 286A.615. The Subcommittee reviewed amendments to Senate Bill 5505 for the following purposes: General Fund Obligations 1. The Subcommittee approved Article XI-G general obligation bond authority of $204,570,000 to fund grants to Public Universities and Community Colleges to finance seven new capital projects for Public Universities, 12 new capital projects for Community Colleges, and three reauthorized capital projects approved during previous legislative sessions for Community Colleges. The proceeds of the bonds will be used to provide grants through grant programs administered by the Higher Education Coordinating Commission (HECC). Projects are described later in this report. 2. The Subcommittee approved Article XI-M general obligation bond authority of $101,180,000, which includes net proceeds of $100,000,000 and $1,180,000 for costs of issuing bonds and approved Article XI-N general obligation bond authority of $20,430,000, which includes net proceeds of $20,000,000 and $430,000 for costs of issuing bonds. The proceeds of the Article XI-M bonds will be used to provide grants for Seismic Rehabilitation of Public Education Buildings, and the proceeds of the Article XI-N bonds will be used to provide grants for Seismic Rehabilitation of Emergency Services Buildings through grant programs administered by the Oregon Business Development Department. 3. The Subcommittee approved Article XI-P general obligation bond authority of $100,985,000, which includes $100,000,000 in net proceeds and $985,000 for costs of issuing bonds, to fund matching grants to school districts for capital costs including construction, improvement, or remodel of facilities and acquisition of equipment through a grant program administered by the Oregon Department of Education.

SB 5505 A 2 of 18

4. The Subcommittee approved General Fund supported Article XI-Q general obligation bond authority of $563,839,225 to finance the capital costs of projects for real or personal property owned or operated by the state. The projects and agencies are listed below, with the exception of HECC; projects funded by grants from the HECC to Public Universities are described later in this report. 

Department of Human Services, ONE Integrated Eligibility and Medicaid Eligibility System: approved $34,045,000 Article XI-Q bonds to finance $33,523,000 of project costs and $522,000 for costs of issuing the bonds. The project is to implement an IT system to integrate the determination of client eligibility for multiple programs into one system, including eligibility for TANF, ERDC, SNAP, and to expand Medicaid eligibility to include non-MAGI Medicaid populations. The Subcommittee also approved additional funding of $11,477,000 for this project through the repurpose of $6,500,000 of bond proceeds originally issued for the Oregon Military Department (OMD) Regional Training Institute and $4,977,000 of bond proceeds originally issued for the OMD Youth Challenge project.



Department of Justice, Child Support Enforcement Automated System: approved $16,585,000 Article XI-Q bonds to finance $16,267,633 of project costs and $317,367 for costs of issuing the bonds. The project is to develop and implement a new automated system for the Oregon Child Support Program that will function as a case management system, an accounting and distribution system, and a data exchange system which interfaces with multiple agencies within Oregon and nationwide.



Department of Revenue, Core Tax Revenue Systems Replacement: approved $4,855,000 Article XI-Q bonds to finance $4,781,944 of project costs and $73,056 for costs of issuing the bonds. The project is to implement an IT system to replace outdated and disparate systems into one integrated system for improved tracking and reporting of tax revenues. This funding will complete implementation of the system in 2017-19.



Legislative Administration Committee, Capitol Accessibility, Maintenance, and Safety: approved $13,960,000 Article XI-Q bonds to finance $13,720,642 of project costs and $239,358 for costs of issuing the bonds. The project is to make capital improvements to the State Capitol Building, including improvements to ADA accessibility and safety.



Oregon Judicial Department, Multnomah County Courthouse: approved $102,495,000 Article XI-Q bonds to finance $101,500,000 of project costs and $995,000 for costs of issuing the bonds. Project costs of $92,600,000 will be the final state matching funds to complete the construction of a new courthouse in Multnomah County. The remaining $8,900,000 will be used to purchase stateowned furnishings and equipment.



Oregon Judicial Department, Lane County Courthouse: approved $5,115,000 Article XI-Q bonds to finance $5,000,000 of project costs and $115,000 for costs of issuing the bonds. The project is to support replacement of the Lane County Courthouse, including making improvements to the new courthouse site to prepare it for construction. SB 5505 A 3 of 18

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Oregon Judicial Department, Oregon Supreme Court Building Renovation: approved $6,125,000 Article XI-Q bonds to finance $6,000,000 of project costs and $125,000 for costs of issuing the bonds. The project is to renovate the Oregon Supreme Court building, including seismic updates, energy efficiency improvements, and various systems and safety code upgrades.



Oregon Military Department, Regional Armory Emergency Enhancement: approved $8,675,000 Article XI-Q bonds to finance $8,534,400 of project costs and $140,600 for costs of issuing the bonds. The project involves making structural improvements to bring the following three facilities to essential facility standards for seismic events: Coos Bay Armory, Newport Armory, and the Anderson Readiness Center in Salem.



Oregon Military Department, Grants Pass Armory Service Life Extension: approved $3,330,000 Article XI-Q bonds to finance $3,270,356 of project costs and $59,644 for costs of issuing the bonds. The project is for design and construction of additions and alterations to the Grants Pass Armory to bring the building into conformance with current building code.



Oregon Military Department, Resiliency Grant Fund: approved $5,070,000 Article XI-Q bonds to finance $5,000,000 of project costs and $70,000 for costs of issuing the bonds. The proceeds will be used to purchase emergency preparedness equipment, which will be owned by OMD and distributed to local governments and other federal tax-exempt qualified recipients.



Oregon Military Department, Regional Training Institute: approved $6,630,000 Article XI-Q bonds to finance $6,500,000 of project costs and $130,000 for costs of issuing the bonds. The project is to refurbish existing buildings in Umatilla to serve as the new Regional Training Institute. Article XI-Q bonds were authorized and issued for this project in 2015-17; however, it was subsequently determined that tax-exempt bond proceeds could not be used to finance the project. Thus, this project is being reapproved to issue taxable bonds in 2017-19.



Oregon Military Department, Youth Challenge Armory: approved $5,095,000 Article XI-Q bonds to finance $4,977,000 of project costs and $118,000 for costs of issuing the bonds. The project is for expansion and renovation of the existing facility in Bend to increase capacity for at-risk youths participating in the Youth Challenge Program. Article XI-Q bonds were authorized and issued for this project in 2015-17; however, it was subsequently determined that tax-exempt bond proceeds could not be used to finance the project. Thus, this project is being reapproved to issue taxable bonds in 2017-19.



Oregon Department of Veterans’ Affairs, The Dalles Veterans’ Home Capital Improvements: approved $1,195,000 Article XI-Q bonds to finance $1,150,000 of project costs and $45,000 for costs of issuing the bonds. The project involves construction of a new educational building and daycare building, upgrades to wireless infrastructure, and phone system replacement.

SB 5505 A 4 of 18



Oregon Department of Veterans’ Affairs, Lebanon Veterans’ Home Parking Lot: approved $1,345,000 Article XI-Q bonds to finance $1,300,000 of project costs and $45,000 for costs of issuing the bonds. The project is to build a new parking lot at the veteran’s home in Lebanon.



Oregon Department of Veterans’ Affairs, Roseburg Veterans’ Home: approved $10,720,000 Article XI-Q bonds to finance $10,500,000 of project costs and $220,000 for costs of issuing the bonds. The project is to design and construct a new veterans’ home in Roseburg.



Department of Corrections, Capital Improvements and Renewal: approved $26,770,000 Article XI-Q bonds to finance $26,293,534 of project costs and $476,466 for costs of issuing the bonds. The project involves facility improvements in several facilities including electrical systems, water systems, roofs, HVAC, surveillance, fire systems and infrastructure improvements to address needs identified in the Facility Condition Assessment completed on the department’s facilities.



Department of Corrections, Technology Infrastructure: approved $12,445,000 Article XI-Q bonds to finance $12,200,000 of project costs and $245,000 for costs of issuing the bonds. The project is to upgrade and install technology infrastructure that will support a voice-over-internet protocol telephony system.



Oregon Youth Authority, Capital Improvements: approved $17,450,000 Article XI-Q bonds to finance $17,168,249 of project costs and $281,751 for costs of issuing the bonds. The project involves capital improvements to permanent structures and fixtures to address needs identified by the Facility Condition Assessment completed on OYA facilities.



Oregon Youth Authority, MacLaren West Cottages Renovation, Phase 1: approved $15,450,000 Article XI-Q bonds to finance $15,177,200 of project costs and $272,800 for costs of issuing the bonds. Phase 1 of the project involves capital improvements to renovate and remodel five of the seven living units on the west side of the campus at MacLaren Youth Correctional Facility.

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Oregon Youth Authority, Rogue Valley Facility Improvements, Phase 1: approved $7,095,000 Article XI-Q bonds to finance $6,973,465 of project costs and $121,535 for costs of issuing the bonds. Phase 1 of the project involves capital improvements to renovate and remodel two of the four living units at the Rogue Valley Youth Correctional Facility.

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Oregon Department of Education, Oregon School for the Deaf Facility Improvements: approved $4,365,000 Article XI-Q bonds to finance $4,297,558 of project costs and $67,442 for costs of issuing the bonds. The project is to make capital improvements to the Oregon School for the Deaf facility which includes roof replacements at six campus buildings and ADA compliance to address accessibility of campus restrooms in eight facilities.

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Oregon Department of Forestry, Toledo Facility Replacement: approved $774,225 Article XI-Q general obligation bonds to finance $753,300 of project costs and $20,925 for costs of issuing the bonds. The project is to replace the Unit Office Facilities Compound located in Toledo and relocate it to a more centrally located area that will be outside of the mapped tsunami inundation zone, a project which is expected to be part of a larger co-locate project with the Oregon Department of Transportation (ODOT).

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Oregon Department of Fish and Wildlife, Deferred Maintenance: approved $10,215,000 Article XI-Q general obligation bonds to finance $10,000,000 of project costs and $215,000 for costs of issuing the bonds. The project involves addressing deferred maintenance needs in multiple facilities owned by the department.

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Oregon Housing and Community Services, Local Innovation and Fast Track (LIFT) Housing Program: approved $81,090,000 Article XI-Q general obligation bonds to finance $80,000,000 of project costs and $1,090,000 for costs of issuing the bonds. The bond proceeds will be used to acquire, construct, remodel, repair, equip or furnish real property in which the department will take an operational or ownership interest to provide affordable housing for low income citizens.

5. The Subcommittee approved Article XI-H general obligation bond authority of $10,300,000, which includes $10,000,000 in net proceeds and $300,000 for costs of issuing the bonds, for the Department of Environmental Quality (DEQ) to finance pollution control facilities or related activities. Net proceeds will replenish DEQ’s Orphan Site Account, which is used to investigate and cleanup highly contaminated sites. 6. The Subcommittee approved Certificates of Participation (COP) authority of $100,985,000, which includes $100,000,000 in net proceeds and $985,000 for costs of issuing the bonds, for the Department of Forestry to finance the release of a portion of the Elliott Forest from restrictions from ownership of the common school fund to preserve non-economic benefits of the forest for the public such as recreation, wildlife and habitat preservations, and other environmental considerations. Dedicated Fund Obligations 7. The Subcommittee approved a $120,000,000 authorization to the Department of Veterans’ Affairs for issuance of Article XI-A general obligation bonds to finance farm and home loans to veterans. 8. The Subcommittee approved Article XI-F(1) general obligation bond authority of $86,570,000 to fund loans to Public Universities through the HECC to finance four new capital projects and two reauthorized capital projects approved during prior legislative sessions. Projects are described later in this report.

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9. The Subcommittee approved a $10,000,000 authorization to the Department of Environmental Quality for issuance of Article XI-H general obligation bonds to finance pollution control facilities or related activities. Bond proceeds provide match for federal Clean Water State Revolving Fund (CWSRF) capitalization grants. 10. The Subcommittee approved a $25,000,000 authorization to the Housing and Community Services Department for issuance of Article XI-I (2) general obligation bonds to provide financing for multi-family housing for the elderly and for disabled persons. 11. The Subcommittee approved Article XI-Q general obligation bond authority of $14,435,775 to finance a portion of the following projects: ď&#x201A;ˇ

Department of Administrative Services, Portland State Office Building Capital Improvements: approved $13,360,000 Article XI-Q bonds to finance $13,146,000 of project costs and $214,000 for costs of issuing the bonds. The project is to renovate the building exterior, including replacement of the windows and roof; upgrade security, electrical and HVAC systems; painting; and renovating restrooms. Debt service on the bonds will be paid using agency resources (Other Funds).

ď&#x201A;ˇ

Oregon Department of Forestry, Toledo Facility Replacement: approved $1,075,775 Article XI-Q bonds to finance $1,046,700 of project costs and $29,075 for costs of issuing the bonds. The project is to replace the Unit Office Facilities Compound located in Toledo and relocate it to a more centrally located area that will be outside of the mapped tsunami inundation zone, a project which is expected to be part of a larger co-locate project with the Oregon Department of Transportation (ODOT). Debt service on the bonds will be paid using agency resources (Other Funds).

12. The Subcommittee approved Certificates of Participation (COP) authority of $10,000,000 for issuance of other financing agreements (capital leases) for the Department of Administrative Services. Revenue Bonds 13. The Subcommittee approved the Housing and Community Services Department direct revenue bond authority of $300,000,000 and passthrough revenue bond authority of $325,000,000. 14. The Subcommittee approved the Oregon Business Development Department direct revenue bond authority of $30,000,000 for the Oregon Infrastructure Finance Authority Bond Bank Program. Pass-through revenue bond authority of $400,000,000 for Industrial Development bonds and $10,000,000 for the Beginning and Expanding Farmer Loan Program was also approved. 15. The Subcommittee approved Department of Administrative Services, Lottery Revenue Bond limit of $199,860,000. This amount provides funding for 31 projects authorized in Senate Bill 5530 and one project authorized in House Bill 2278 (2015). A complete list of Lottery Revenue Bond projects can be found in SB 5530. SB 5505 A 7 of 18

16. The Subcommittee approved pass-through revenue bond authority of $1,350,000,000 for the Oregon Facilities Authority. Other Legislative Changes The Subcommittee approved statutory changes to ORS chapter 286A related to the administration of the stateâ&#x20AC;&#x2122;s bond programs. Amendments clarify the Department of Administrative Servicesâ&#x20AC;&#x2122; role as the bond program administrator for the Article XI-F Higher Education general obligation bond program, including specifying the department is responsible to request bonds to be issued. The Subcommittee also approved an amendment to ORS 283.085 to authorize the use of Certificates of Participation to finance: (i) the release of all or a portion of the Elliott Forest from restrictions resulting from ownership of that forest by the common school fund, or (ii) compensation paid to the common school fund for the preservation of non-economic benefits of the forest through the imposition, transfer or sale of restrictions such as easements, use requirements or other methods that preserve non-economic benefits of the forest for the public such as recreation, aesthetics, wildlife or habitat preservation, or other environmental and quality of life considerations. The Subcommittee approved a project scope change for the Higher Education Coordinating Commission, University of Oregon Klamath Hall Renovation, originally approved in HB 5005 (2015), to allow the use of the Article XI-Q and Article XI-G bond proceeds to renovate Klamath Hall, an academic and research building, to bring research facilities up-to-date and accommodate increased enrollment in chemistry and other sciences. The original project plan included the renovation of one floor and construction of an additional floor that would be used to house office space and classrooms displaced due to the renovation. However, due to increased construction costs, it is more cost effective to renovate the one floor as originally proposed, but use existing facilities for the displaced functions rather than adding a new floor.

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Detail of projects authorized for the Higher Education Coordinating Commission through bond financing is included below. Higher Education Coordinating Commission HECC - Public Universities The Subcommittee approved 17 new capital projects and reauthorized two projects approved in prior biennia for public universities to finance total project costs of $345,856,225. The projects are included in the budget for the Higher Education Coordinating Commission (HECC). The proceeds of Article XI-G and Article XI-Q bonds will be used to provide grants from HECC to the applicable public university, and the debt service on these bonds will be paid with General Fund. Each university must provide the constitutionally required match for the Article XI-G bonds before the bonds can be issued. The proceeds of Article XI-F(1) bonds will be used to provide loans from HECC to the applicable public university, and the debt service on the Article XI-F(1) bonds will be paid by HECC with Other Funds using loan repayments received from the applicable university made with university resources. The approved projects are listed below. All Public Universities The Subcommittee approved the following project for the seven public universities, to be allocated to each individual university by HECC: 

Capital Improvement and Renewal: approved $50,620,000 Article XI-Q general obligation bonds to finance $50,000,000 of project costs and $620,000 for costs of issuing the bonds. The capital improvement projects will address deferred maintenance, code compliance, safety issues, and Americans with Disabilities Act (ADA) accessibility improvements for campus facilities. The projects will not involve: acquisition of buildings, structures, or land; classroom or lab modernization; or improvements to auxiliary facilities, which are typically self-supporting.

Eastern Oregon University 

Loso Hall Renovation, Phase 1: approved $5,575,000 Article XI-Q general obligation bonds to finance $5,500,000 of project costs and $75,000 for costs of issuing the bonds. The project is to renovate Loso Hall and will improve or replace theater department performance and practice spaces, stages and support spaces, equipment, lighting and staging systems. The project will also make ADA accessibility improvements in theater seating and building access.

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Track and Field Facilities Restoration: approved $790,000 Article XI-F(1) general obligation bonds to finance $750,000 of project costs and $40,000 for costs of issuing the bonds. The project will include removal of the existing track and field athletic surfaces and associated asphalt and concrete underlayment and installation of a new rock base and drainage system with a permeable asphalt base surface. New permeable track and field competition athletic surfaces will be installed over the asphalt base. The project will also include a scorer’s station at the track finish line, restroom facilities, and guest seating. The university expects to support loan repayments to HECC for debt service on the bonds through tuition and fee revenues. SB 5505 A 9 of 18

Oregon Institute of Technology 

Center for Excellence in Engineering and Technology / Cornett Hall Renovation, Phase 2: approved $38,475,000 Article XI-Q general obligation bonds to finance $38,000,000 of project costs and $475,000 for costs of issuing the bonds and $2,050,000 Article XI-G general obligation bonds to finance $2,000,000 of project costs and $50,000 for costs of issuing the bonds. The Center for Excellence in Engineering and Technology (CEET) will feature classrooms, laboratory, office, and project spaces focused on applied research and teaching in advanced engineering, manufacturing and sustainable systems. The project will also complete the renovation, building envelope and ADA accessibility improvements to Cornett Hall. The university will provide the constitutionally required match for the Article XI-G bonds.

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Oregon Manufacturing Innovation Center (OMIC) Research and Development Facility: approved $3,940,000 Article XI-Q general obligation bonds to finance $3,875,000 of project costs and $65,000 for costs of issuing the bonds. The project is to renovate the OMIC Research and Development facility, providing industrial levels of electrical infrastructure, internal temperature controls and systems, storage and management facilities for specialty gas, manufacturing support equipment, structural modifications to support heavy equipment, testing equipment, and ADA compliance.

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Student Recreation Center: approved $5,115,000 Article XI-F(1) general obligation bonds to finance $5,000,000 of project costs and $115,000 for costs of issuing the bonds. The project will re-use existing Athletics Facilities, updating, expanding, and restoring fitness facilities on campus. The university expects to support loan repayments to HECC for debt service on the bonds through building fees assessed to all students enrolled on the Klamath Falls campus.

Oregon State University 

Cordley Hall Renovation, Phase 1: approved $15,250,000 Article XI-Q general obligation bonds to finance $15,000,000 of project costs and $250,000 for costs of issuing the bonds. The renovation project will replace mechanical and electrical systems as well as upgrade fire and life safety systems, including a fire suppression system and modern fire alarms for the approximately 236,000 GSF research building.

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Fairbanks Hall Renovation: approved $11,220,000 Article XI-Q general obligation bonds to finance $11,000,000 of project costs and $220,000 for costs of issuing the bonds. The renovation project will create critically needed space in the currently unutilized fourth floor and make the building fully accessible. The project includes improvements to the building’s all-wood structure, plumbing, and ventilation systems, expansion of fire protection systems, and improved fire and life safety egress.

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Gilkey Hall Renovation: approved $1,045,000 Article XI-Q general obligation bonds to finance $1,000,000 of project costs and $45,000 for costs of issuing the bonds and $2,050,000 Article XI-G bonds to finance $2,000,000 of project costs and $50,000 for costs of issuing the bonds. The renovation project will provide a general interior space renewal for the academic directors for undergraduate studies, the SB 5505 A 10 of 18

academic success center, the writing center, computer lab, and international programs. The project also includes upgrades to fire and life safety, plumbing, and HVAC systems. The university will provide the constitutionally required match for the Article XI-G bonds. 

Quality Foods and Beverage Center: approved $9,100,000 Article XI-G general obligation bonds to finance $9,000,000 of project costs and $100,000 for costs of issuing the bonds. The project is to construct a 28,500 GSF building which will include three new research and learning pilot facilities for brewing science, wine science, and dairy science. The university will provide the constitutionally required match for the Article XI-G bonds.

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Cascades Expansion – Site Reclamation: approved $9,145,000 Article XI-Q general obligation bonds to finance $9,000,000 of project costs and $145,000 for costs of issuing the bonds. The site restoration project will include partial fill and compaction of a pumice mine to bring the site to a condition ready for infrastructure development. The property, a 46-acre pumice mine site, is adjacent to the 10-acre Cascades Campus and is near downtown Bend.

Portland State University 

Graduate School of Education Facility: approved $9,145,000 Article XI-Q general obligation bonds to finance $9,000,000 of project costs and $145,000 for costs of issuing the bonds, $36,485,000 Article XI-G general obligation bonds to finance $36,000,000 of project costs and $485,000 for costs of issuing the bonds, and $6,080,000 Article XI-F(1) bonds to finance $6,000,000 of project costs and $80,000 for costs of issuing the bonds. The project involves construction of a new Graduate School of Education located at 4 th and Montgomery Streets in Portland. The facility will be a seven to ten story mixed use building with approximately 205,000 GSF of space. The project includes acquisition of land and the design and construction of the new building, including equipment and furnishings. The project involves partnership commitments from Portland Community College, City of Portland, and Oregon Health and Sciences University. The university will use partnership contributions and other funds legally available to the university for the constitutionally required match for the Article XI-G bonds. The university expects to support loan repayments to HECC for debt service on the bonds with retail lease income.

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Corbett Building Purchase: reauthorized $5,100,000 Article XI-F(1) bonds originally authorized in 2015-17 to finance $5,031,225 of project costs and $68,775 for costs of issuing the bonds. The project is to purchase the Corbett Building, at 2828 SW Corbett Avenue in Portland, which is currently leased by PSU for its Business Accelerator program. The building is owned by the PSU Foundation through a subsidiary. The university expects to support loan repayments to HECC for debt service on the bonds through savings from lease payments that will no longer be incurred.

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Residence Hall at 12th & Market: approved $54,225,000 Article XI-F(1) general obligation bonds to finance $53,500,000 of project costs and $725,000 for costs of issuing the bonds. The project will involves construction of a new six story housing building on the corner of SW 12th and Market in Portland. The building will be approximately 144,000 GSF of space and result in 201 units and 11,000 GSF for dining services. The university expects to support loan repayments to HECC for debt service on the bonds through student housing revenue. SB 5505 A 11 of 18

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Land Acquisition for University Center Building: reauthorized $10,220,000 Article XI-F(1) bonds originally authorized in 2013-15 and reauthorized in 2015-17, and authorized an additional $5,040,000 Article XI-F(1) bonds to finance $15,000,000 of project costs and $260,000 for costs of issuing the bonds. The project is to purchase land under the university-owned University Center building. The university expects to support loan repayments to HECC for debt service on the bonds through savings from lease payments that will no longer be incurred.

Southern Oregon University 

Central Hall Capital Improvements: approved $6,125,000 Article XI-Q general obligation bonds to finance $6,000,000 of project costs and $125,000 for costs of issuing the bonds. The project includes replacing the HVAC system and electrical systems, upgrading the fire alarm system to meet current code requirements, and addressing water penetration of the exterior concrete façade. The project scope also includes ADA accessibility improvements.

University of Oregon 

Campus for Accelerating Scientific Impact, Phase 1: approved $50,620,000 Article XI-G general obligation bonds to finance $50,000,000 of project costs and $620,000 for costs of issuing the bonds. The project includes construction of the initial phase of the Campus which includes new science lab facilities located north of Franklin Boulevard and other construction, improvements, or acquisitions to support the Campus. The new science lab facilities are expected to be two research structures totaling approximately 150,000 GSF and will house core shared scientific facilities as well as labs. The project is expected to include construction of a sky bridge to connect the science campus to the main campus for safe crossing of Franklin Boulevard. This is phase one of a $100 million project expected to be completed by June 2020. The university will provide the constitutionally required match for the Article XI-G bonds.

Western Oregon University 

Information Technology Center Renovation, Phase 3: approved $5,070,000 Article XI-Q bonds to finance $5,000,000 of project costs and $70,000 for costs of issuing the bonds and approved $540,000 Article XI-G bonds to finance $500,000 of project costs and $40,000 for costs of issuing the bonds. The project includes seismic improvements to the building structure and replacement of mechanical, electrical and plumbing systems. The first two floors will be remodeled to maximize function, improve access, and comply with current building codes. The university will provide the constitutionally required match for the Article XI-G bonds.

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Oregon Military Building Renovation, Phase 2: approved $7,335,000 Article XI-Q bonds to finance $7,200,000 of project costs and $135,000 for costs of issuing the bonds and approved $540,000 Article XI-G bonds to finance $500,000 of project costs and $40,000 for costs of issuing the bonds. The project includes a redesign and repurpose of the existing military training facility, located within the north perimeter of the SB 5505 A 12 of 18

campus, for year-round academic program use, improve ADA accessibility throughout the facility and upgrade mechanical, electrical and plumbing systems. The university will provide the constitutionally required match for the Article XI-G bonds. HECC - Community Colleges The Subcommittee approved 12 new capital projects and reauthorized three capital projects approved in prior biennia for community colleges to finance total project costs of $101,397,241. The projects are included in the budget for the Higher Education Coordinating Commission (HECC). The proceeds of Article XI-G bonds will be used to provide grants from HECC to the applicable community college, and the debt service on the bonds will be paid with General Fund. Each community college must provide the constitutionally required match for the Article XI-G bonds before the bonds can be issued. Match funds may come from a variety of sources including grants, donations, partnership contributions, local bond levies, or some combination of sources. The approved projects are listed below. 

Blue Mountain Community College – Facility for Agricultural Resource Management (FARM) Phase 2: approved $5,115,000 Article XI-G bonds to finance $5,000,000 of project costs and $115,000 for costs of issuing the bonds. The project is to design and construct a new facility to support animal science programs, including veterinary assistant/technician, equine and the livestock judging and rodeo teams. The community college will provide the constitutionally required match for the Article XI-G bonds through various possible revenues.

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Chemeketa Community College – Agricultural Complex: approved $6,125,000 Article XI-G bonds to finance $6,000,000 of project costs and $125,000 for costs of issuing the bonds. The project is to construct a new agricultural complex on the main Salem campus. The complex will include a classroom and office building, storage space, a greenhouse, hoop houses, learning and research gardens, and an incubator farm. The community college will provide the constitutionally required match for the Article XI-G bonds with their Capital Development Reserve Funds.

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Clackamas Community College – DeJardin Building Addition: approved $8,140,000 Article XI-G bonds to finance $8,000,000 of project costs and $140,000 for costs of issuing the bonds. The project is to construct an 18,500 sq. ft. addition to the DeJardin building to house state-ofthe-art science laboratories for chemistry, biology, and microbiology along with informal learning space lab support/shared preparation space for staff efficiency and general purpose classroom. The project scope also includes renovation and repurpose of approximately 20,000 sq. ft. of lab space in Pauling, which will be vacated after the DeJardin addition is complete, to support other STEM programs such as engineering. The community college will provide the constitutionally required match for the Article XI-G bonds with funds from 2017 tax supported bonds approved by voters in 2014.

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Clackamas Community College – Student Services and Community Commons: approved $8,140,000 Article XI-G bonds to finance $8,000,000 of project costs and $140,000 for costs of issuing the bonds. The project includes replacement of the current community center with a new building that will provide approximately 54,500 sq. ft., doubling the current square footage for programs and services. The Student Services and Community Commons will house community common event space; multi-purpose meetings rooms and classrooms; informal learning and study lounges; student support services offices; student government and student organizations offices; and consolidation of the SB 5505 A 13 of 18

bookstore and dining facilities. The community college will provide the constitutionally required match for the Article XI-G bonds with funds from 2017 tax supported bonds approved by voters in 2014. 

Clatsop Community College - Marine Science Center Renovation and Expansion: approved $8,135,000 in Article XI-G bonds to finance $7,996,994 of projects costs and $138,006 for costs of issuing the bonds. The project is to renovate and expand the Marine Science Center building on the Marine and Environmental Research Training Station (MERTS) campus, including the addition of a second floor, labs, and expanded faculty and support space. The project scope also includes updated infrastructure throughout and in support of the new building and programs space. The community college will provide the constitutionally required match for the Article XI-G bonds through various funding options, including bonds and a capital campaign.

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Columbia Gorge Community College – Middle College Prototype Facility: reauthorized $7,400,000 in Article XI-G bonds to finance $7,320,000 of project costs and $80,000 for costs of issuing the bonds. This project was approved as a scope change in HB 5202 (2016) to the originally approved Advanced Technology Center project, which was authorized in SB 5507 (2013) and reauthorized in HB 5005 (2015). The project is to construct a Middle College Prototype facility to be used by the college and the North Wasco School District to focus on grades 11 through 14 and the transition between high school and post-secondary education. The project involves: a Treaty Oak Regional Skills Center, which will include a high-bay skills center, portable equipment stations, CTE training and business incubator; equipment bay for the fire science training program; fitness facilities and a track/soccer field; and on-campus workforce housing for CGCC enrollees, Mid-Col. Fire & Rescue District response personnel and trainees. The community college will provide the constitutionally required match for the Article XI-G bonds through a combination of direct private and public investment.

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Lane Community College – Health Care Village Facility: approved $8,140,000 Article XI-G bonds to finance $8,000,000 of project costs and $140,000 for costs of issuing the bonds. The project is to construct a new facility on the main campus for the dental clinic, dental lab, medical office assistant, faculty offices, and support spaces. This facility is expected to provide sufficient space for program consolidation, sterilization, student workspace, and modern equipment/technology for the dental programs. The community college will to provide the constitutionally required match for the Article XI-G bonds through a local bond levy and/or private fundraising.

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Linn-Benton Community College – Student Advising and Campus Safety Center: approved $7,635,000 Article XI-G bonds to finance $7,500,000 of project costs and $135,000 for costs of issuing the bonds. The project involves renovation of the student affairs and campus safety spaces, including creation of a new Student Advising Center and expanding space for public safety and disability services. This project also includes renovation of the career technical center and classroom space. The community college will provide the constitutionally required match for the Article XI-G bonds with proceeds from a 2014 bond issuance.

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Mt. Hood Community College – Maywood Park Center: approved $8,140,000 Article XI-G bonds to finance $8,000,000 of project costs and $140,000 for costs of issuing the bonds. The project is to construct a new 60,000 sq. ft. building, the Maywood Park Center, to replace the current Maywood Park building. The new facility will provide space for classrooms, student services, workforce support, administration, SB 5505 A 14 of 18

community meetings, and building support space. The building will house the college’s western district workforce training, certificate and degree programs. The community college will provide the constitutionally required match for the Article XI-G bonds through various possible revenue sources which may include grants, donations, partnership contributions, a local bond levy, or some combination of sources. 

Oregon Coast Community College – Workforce Education and Resiliency Center: approved $8,140,000 Article XI-G bonds to finance $8,000,000 of project costs and $140,000 for costs of issuing the bonds. The project is to construct a new 30,000 sq. ft., two story building to provide space for workforce development academic programs, student study areas, as well as administrative and faculty offices. The community college will provide the constitutionally required match for the Article XI-G bonds through various revenues, including a local bond levy and a capital construction campaign.

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Portland Community College – Health Technology Building Renovation: approved $8,140,000 Article XI-G bonds to finance $8,000,000 of project costs and $140,000 for costs of issuing the bonds. The renovation project is to demolish the 55,800 sq. ft. interior space, reconstruct instructional spaces, replace restroom fixtures and locker rooms, incorporate seismic standards, and replace non code compliant mechanical, electrical and plumbing systems. The community college will provide the constitutionally required match for the Article XI-G bonds with proceeds from a 2008 bond levy and a 2017 bond levy (if approved).

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Rogue Community College – Elk Building Science Facility Renovation and Expansion: approved $6,125,000 Article XI-G bonds to finance $6,000,000 of project costs and $125,000 for costs of issuing the bonds. The project includes renovation of the existing 10,086 sq. ft. Elk Building science facility and adding 16,000 sq. ft. of space to provide the nursing and allied health programs with a more modern science facility. The project will increase instructional capacity, redesign lab spaces, and expand infrastructure to meet current and future academic needs. The community college will provide the constitutionally required match for the Article XI-G bonds with proceeds from a May 2016 bond.

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Southwestern Oregon Community College – Dellwood Hall Remodel and Expansion: approved $2,805,000 Article XI-G bonds to finance $2,749,997 of project costs and $55,003 for costs of issuing the bonds. The project is to remodel Dellwood Hall including construction of a 12,100 sq. ft. second floor onto the existing one story building. The project will integrate all student services into one building to create a comprehensive Student Services Center. The community college will provide the constitutionally required match for the Article XI-G bonds with private funds, grants, and possibly a bond levy.

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Treasure Valley Community College – Workforce Vocational Center: reauthorized $2,865,000 in Article XI-G bonds to finance $2,830,250 of project costs and $34,750 for costs of issuing the bonds. This project was originally approved in SB 5507 (2013) and was reauthorized in HB 5005 (2015). The project involves construction of a new facility to expand space for welding training and to house natural resource, renewable energy, wild land fire, construction trades, and waste water management programs. The community college will provide the constitutionally required match for the Article XI-G bonds with grants, fundraising, and/or a district bond levy. SB 5505 A 15 of 18

ď&#x201A;ˇ

Umpqua Community College â&#x20AC;&#x201C; Industrial Technology Building: reauthorized $8,140,000 in Article XI-G bonds to finance $8,000,000 of project costs and $140,000 for costs of issuing the bonds. This project was originally approved in SB 5507 (2013) and was reauthorized in HB 5005 (2015). The project is to construct a new two-story, 68,000 sq. ft. building that will bring together automotive, welding/fabrication, and manufacturing programs into one facility. The project includes a 20-bay automotive service shop, tools room, auto classroom, lab, small lobby, and four faculty offices. The community college will provide the constitutionally required match for the Article XI-G bonds with a bond levy and/or fundraising.

SB 5505 A 16 of 18

Senate Bill 5505, SECTIONS 1 - 3. 2015-17 Legislatively Approved

Program Designation

2017-19 Governor's Budget

2017-19 Committee Recommendations

Changes from Governor's Budget

GENERAL OBLIGATION BONDS General Fund Obligations Higher Education Coordinating Comm. - PU (Art. XI-G) Higher Education Coordinating Comm. - CC (Art. XI-G) Oregon Health and Science University (Art. XI-G) Dept of Environmental Quality (Art. XI-H) Oregon Business Development Dept. (Art. XI-M) Oregon Business Development Dept. (Art. XI-N) Oregon Department of Education (Art. XI-P) Department of Administrative Services (Art. XI-Q) Oregon Department of Transportation (Art. XI, Sec. 7)

$ $ $ $ $ $ $ $ $

92,450,000 58,401,600 200,035,000 176,870,000 30,440,000 126,210,000 433,460,000 35,475,000

Dedicated Fund Obligations Department of Veterans' Affairs (Art. XI-A) Higher Education Coordinating Comm. (Art. XI-F(1)) Dept of Environmental Quality (Art. XI-H) Water Resources Department (Art. XI-I(1)) Housing and Community Services Dept (Art. XI-I(2)) Department of Energy/OBDD (Art. XI-J) Department of Administrative Services (Art. XI-Q) Total General Obligation Bonds

$ $ $ $ $ $ $ $

100,000,000 74,225,000 10,000,000 30,520,000 25,000,000 25,000,000 17,275,000 1,435,361,600

$ $ $ $ $ $ $ $ $

121,690,000 102,795,250 10,300,000 161,680,000 40,580,000 120,065,000 411,752,389 -

$ 120,000,000 $ 81,470,000 $ 10,000,000 $ $ 25,000,000 $ $ 2,607,611 $ 1,207,940,250

$ $ $ $ $ $ $ $ $

101,385,000 103,185,000 10,300,000 101,180,000 20,430,000 100,985,000 563,839,225 -

$ $ $ $ $ $ $ $ $

(20,305,000) 389,750 (60,500,000) (20,150,000) (19,080,000) 152,086,836 -

$ 120,000,000 $ 86,570,000 $ 10,000,000 $ $ 25,000,000 $ $ 14,435,775 $ 1,257,310,000

$ $ $ $ $ $ $ $

5,100,000 11,828,164 49,369,750

REVENUE BONDS Direct Revenue Bonds Housing and Community Services Department Department of Transportation Highway User Tax Oregon Business Development Department Department of Administrative Services Lottery Revenue Bonds Total Direct Revenue Bonds

300,000,000 $

300,000,000

300,000,000 $

$ $

393,160,000 $ 30,000,000 $

30,000,000

$ $

$ 30,000,000 $

$ $

213,125,000 $ 936,285,000 $

219,915,000 549,915,000

$ $

199,860,000 $ 529,860,000 $

(20,055,000) (20,055,000)

SB 5505 A 17 of 18

Pass Through Revenue Bonds Oregon Business Development Department Industrial Development Bonds Beginning and Expanding Farmer Loan Program Oregon Facilities Authority Housing and Community Services Department Total Pass Through Revenue Bonds Total Revenue Bonds

$ $ $ $ $ $

200,000,000 10,000,000 950,000,000 250,000,000 1,410,000,000 2,346,285,000

$ 400,000,000 $ 10,000,000 $ 1,350,000,000 $ 250,000,000 $ 2,010,000,000 $ 2,559,915,000

$ 400,000,000 $ $ 10,000,000 $ $ 1,350,000,000 $ $ 325,000,000 $ $ 2,085,000,000 $ $ 2,614,860,000 $

75,000,000 75,000,000 54,945,000

OTHER FINANCING AGREEMENTS Department of Administrative Services

46,500,000 $

10,000,000

110,985,000 $

100,985,000

Senate Bill 5505, SECTION 4 Private Activity Bond Allocation for Calendar Years 2018 and 2019 2015-17 Legislatively Approved Budget Allocation For:

2017-19 Committee Recommendations

2016 Calendar 2017 Calendar 2018 Calendar 2019 Calendar Year Year Year Year

Oregon Business Development Department, Industrial Development Bonds $ 40,000,000 $ 40,000,000 $ 40,000,000 $ 40,000,000 Oregon Business Development Department, Beginning and Expanding Farmer Loan Program

Oregon Housing & Community Services Department

$ 125,000,000 $ 125,000,000 $ 125,000,000 $ 125,000,000

State Department of Energy

Private Activity Bond Committee

$ 222,023,900 $ 222,023,900 $ 239,346,500 $ 239,346,500

Totals

$ 397,023,900 $ 397,023,900 $ 409,346,500 $ 409,346,500

5,000,000 $

5,000,000

SB 5505 A 18 of 18

79th Oregon Legislative Assembly – 2017 Regular Session

SB 5506 A BUDGET REPORT and MEASURE SUMMARY

Carrier: Rep. Smith G

Joint Committee On Ways and Means Action Date: Action: House Vote Yeas: Exc: Senate Vote Yeas: Nays: Prepared By: Reviewed By:

Capital Construction – Various Agencies 2017-19 Capital Construction – Department of Administrative Services 2015-17 Capital Construction – Department of Veterans’ Affairs 2015-17 Capital Construction – Department of Transportation 2013-15

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

SB 5506 A 1 of 12

Budget Summary 2015-17 Legislatively (1) Approved Budget

2017-19 Committee Recommendation

Committee Change from 2015-17 Leg. Approved

$ $ $

738,319,541 4,792,500 743,112,041

$ $ $

$ Change 158,563,589 (30,095,804) 128,467,785

2015-17 Supplemental Expenditure Limitation Adjustments Department of Administrative Services Capital and Tenant Improvements for 550 Building (Other Funds)

1,400,000

Oregon Department of Veterans' Affairs The Dalles Veterans' Home Renovation (Other Funds) The Dalles Veterans' Home Renovation (Federal Funds)

$ $

965,429 497,588

$ $

965,429 497,588

2013-15 Supplemental Expenditure Limitation Adjustments Department of Transportation Salem Baggage Depot Renovation (Other Funds) Salem Baggage Depot Renovation (Federal Funds)

$ $

94,483 825,517

$ $

94,483 825,517

Other Funds Capital Construction Federal Funds Capital Construction Total

(1)

$ $ $

579,755,952 34,888,304 614,644,256

% Change 27.4% -86.3% 20.9%

Includes adjustments through December 2016

Revenue Summary Other Fund revenues include proceeds from the issuance of general obligation bonds authorized under Article XI-Q, XI-G, and XI-F (1) of Oregon’s Constitution, the depreciation component of the Uniform Rent program and other deposits in the Department of Administrative Services Capital Projects Fund established by ORS 276.005, reserves of the Veterans’ Home Program, Oregon Military Department Capital Construction Account (surplus property sale proceeds), aircraft registration fees assessed in accordance with ORS 837.040 and 837.045, donations, and state gasoline tax and driver and vehicle related fees. Federal Funds revenues are from the U.S. Department of Veterans’ Affairs construction grant program, the Federal Transit Administration grant program, the Federal Aviation Administration’s General Aviation Entitlement Program, and the Federal Airport Improvement Program.

SB 5506 A 2 of 12

Summary of Capital Construction Subcommittee Action SB 5506 provides six-year expenditure limitation for capital construction projects. Projects in excess of $1.0 million for the acquisition of land and the acquisition, planning, constructing, altering, repairing, furnishing, and equipping of building and facilities are categorized as capital construction projects. In addition, SB 5506 extends the six-year expiration dates and expenditure limitations for specified projects. Oregon Department of Administrative Services Mission Critical Facility Yellow Lot Building: $4,579,431 Other Funds (Capital Projects Fund) is approved for planning for a seismically resilient facility to be located on the yellow lot to protect critical state government operations in the event of an earthquake. Department of Human Services Building Upgrades: $3,743,000 Other Funds (Capital Projects Fund) is approved to upgrade the electrical and plumbing systems, replace lights with LEDâ&#x20AC;&#x2122;s and new controls, and replace water heaters. Employment Building Upgrades: $6,236,000 Other Funds (Capital Projects Fund) is approved to upgrade the electrical system, roof and restrooms and replace the plumbing, flooring, chillers, cooling tower, and air conditioning units. Electrical Upgrades and Replacements: $3,890,000 Other Funds (Capital Projects Fund) is approved to upgrade electrical panels, increase electrical capacity, and replace lights with LEDâ&#x20AC;&#x2122;s and new controls in several state buildings. Capitol Mall Parking Structure Study and Upgrades: $2,926,000 Other Funds (Capital Projects Fund) is approved for a study, replacing the membrane on the parking structure roof, an engineering assessment, and renovation of concrete spalling and rebar damage. Planning: $500,000 Other Funds (Capital Projects Fund) is approved to contract with various architects, engineers, and other specialists to develop feasibility analysis and reliable cost information; to prepare preliminary design for small to medium-sized projects; and to evaluate options to address maintenance problems. Boiler and Heating Upgrades: $1,234,000 Other Funds (Capital Projects Fund) is approved to replace and upgrade hot water heaters and boilers in several state buildings. Portland Crime Lab Upgrade: $1,162,000 Other Funds (Capital Projects Fund) is approved to upgrade the chiller, pumps, and cooling tower to increase the cooling HVAC systems capacity. Parking Lot Upgrades: $3,500,000 Other Funds (Capital Projects Fund) is approved to install EV charging stations and perform surface replacement and upgrades in multiple state-owned parking lots. SB 5506 A 3 of 12

Portland State Office Building Renovation: $13,146,000 Other Funds (Article XI-Q Bonds) is approved to renovate the building exterior, including replacement of the windows and roof; upgrade security, electrical and HVAC systems; painting; and renovating restrooms. State Data Center Power Upgrades: $11,000,000 Other Funds (State Information Technology Operating Fund) is approved to upgrade power and increase capacity of the data center. Elected Official Staff Relocation: $6,300,000 Other Funds (Capital Projects Fund) is approved to renovate the historic State Library building for relocation of the Office of the Governorâ&#x20AC;&#x2122;s staff from the Oregon State Capitol. The work is scheduled to occur in three phases beginning in July 2017. Capital and Tenant Improvements for 550 Building: $1,400,000 Other Funds (Capital Projects Fund) is approved as an increase to the 2015-17 capital construction limitation for capital and tenant improvements that exceed the $4,000,000 established for the project by the May 2016 Emergency Board. The Subcommittee approved the extension of the project expiration date and expenditure limitation for Department of Environmental Quality and Public Health Laboratory Roof Replacement (Other Funds) to June 30, 2018 and Capital and Tenant Improvements for 550 Building (Other Funds) to June 30, 2018. Oregon Military Department Regional Armory Emergency Enhancement: $8,534,400 Other Funds (Article XI-Q Bonds) is approved for making structural improvements to bring the following three facilities to essential facility standards for seismic events: Coos Bay Armory, Newport Armory, and the Anderson Readiness Center in Salem. The project includes seismic structural upgrades, backup power and water systems, and emergency equipment and fuel storage for the three facilities. Grants Pass Armory Service Life Extension: $3,270,356 Other Funds (Article XI-Q Bonds) is approved for a service life extension project to renovate the facility. The project is for design and construction of additions and alterations to the Grants Pass Armory to bring the building into conformance with current building code. The project will upgrade mechanical, electrical and plumbing systems; remodel the existing classrooms, administrative space, latrines and showers, equipment storage areas, kitchen, and assembly hall areas; replace failed paving areas; and replace existing site lighting, landscaping and fencing. Future Readiness Center Sites: $1,730,000 Other Funds (Capital Construction Account) is approved for the purchase of two parcels of land necessary to construct two new Readiness Centers as replacements for the Hillsboro and Redmond Armories. One property is located in Washington County and the other is located in Deschutes County.

SB 5506 A 4 of 12

The Subcommittee approved the extension of the project expiration date and expenditure limitation for The Dalles Readiness Center (Other Funds) to June 30, 2018 and The Dalles Readiness Center (Federal Funds) to June 30, 2018. The Subcommittee also approved the proposal from the Oregon Military Department, as required by ORS 396.515 (4), for the sale of the Burns Armory and 40 acres of land in La Grande. Oregon Youth Authority Capital Improvements: $17,168,249 Other Funds (Article XI-Q Bonds) is approved for capital improvements to permanent structures and fixtures to address needs identified by the Facility Condition Assessment completed on the department’s facilities. MacLaren West 7 Cottages Renovation: $21,177,200 Other Funds (Article XI-Q Bonds) is approved for capital improvements to renovate and remodel seven living units on the west side of the campus at MacLaren Youth Correctional Facility. Article XI-Q bonds have been approved in SB 5505 to finance Phase 1 of this project with $15,177,200 of bond proceeds in 2017-19. Rogue Valley Facility Improvements: $10,973,465 Other Funds (Article XI-Q Bonds) is approved for capital improvements to renovate and remodel four living units at the Rogue Valley Youth Correctional Facility. Article XI-Q bonds have been approved in SB 5505 to finance Phase 1 of this project with $6,973,465 of bond proceeds in 2017-19. Department of Corrections Capital Improvements and Renewal: $26,293,534 Other Funds (Article XI-Q bonds) is approved to make improvements in several facilities including roofs, HVAC, surveillance, and infrastructure improvements to address needs identified in the Facility Condition Assessment completed on the department’s facilities. Technology Infrastructure: $12,200,000 Other Funds (Article XI-Q bonds) is approved for the VOIP Telephony Upgrade and Install project to upgrade and install technology infrastructure that will support a voice-over-internet protocol telephone system. Oregon Department of Veterans’ Affairs Roseburg Veterans’ Home: $10,500,000 Other Funds (Article XI-Q Bonds) is approved to build a new Veterans’ home in Roseburg. Oregon Veterans’ Home Capital Improvements: $2,450,000 Other Funds (Article XI-Q Bonds) is approved to fund the following two projects: The Dalles Veterans’ Home Capital Improvements: $1,150,000 Other Funds is approved for construction of a new educational building and daycare building, upgrades to wireless and security infrastructure, and phone system replacement; and Lebanon Veterans’ Home Parking Lot: $1,300,000 Other Funds is approved to build a new parking lot at the veteran’s home in Lebanon.

SB 5506 A 5 of 12

The Dalles Veterans’ Home Renovation: $497,588 Federal Funds (U.S. Department of Veterans’ Affairs construction grant) and $965,429 Other Funds (Veterans’ Home Program reserves) are approved as increases to 2015-17 capital construction limitation for major renovations to the state veterans’ home located in The Dalles. Federal Funds capital construction limitation is increased from $2,805,303 to $3,302,891 and Other Funds capital construction limitation is increased from $1,510,547 to $2,475,976 to accommodate higher construction costs. Department of Transportation Toledo Maintenance Station Phase I: $6,300,000 Other Funds (fee revenue) is approved to fund Phase 1 of the project for a new maintenance station in the Toledo area to replace the Ona Beach maintenance station. Phase 1 includes land acquisition, site preparation, design, and construction of buildings that will be shared by the Oregon Department of Forestry. Salem Baggage Depot Renovation: $94,483 Other Funds (donation) and $825,517 Federal Funds (Federal Transit Administration grant) are approved as increases to 2013-15 capital construction limitations established by the May 2014 Emergency Board for renovations to the Salem Baggage Depot. Other Funds capital construction limitation is increased from $278,841 to $373,324 and Federal Funds capital construction limitation is increased from $1,590,307 to $2,415,824. The Subcommittee approved the extension of the project expiration date and expenditure limitation for the Salem Baggage Depot Renovations (Other Funds) to June 30, 2019 and the Salem Baggage Depot Renovations (Federal Funds) to June 30, 2019. Department of Aviation Bandon Electrical, Gate, Obstruction Removal: $1,732,500 Federal Funds (Federal Aviation Administration) and $192,500 Other Funds (aircraft registration fees) is approved to conduct renovations at the Bandon State Airport. This project includes removing trees on both ends of the runway that have encroached upon the approach slope, replacing the precision approach indicators and the medium intensity runway lights, and installing a vehicle automated gate for safety. McDermitt State Airport Runway and Taxi: $1,080,000 Federal Funds (Federal Aviation Administration) and $120,000 Other Funds (aircraft registration fees) is approved to conduct rehabilitation at the McDermitt State Airport. This project includes rehabilitating the runway and replacing lighting and the beacon tower, which are needed to meet federal standards for safe operating conditions. The project also includes pavement work for the taxiways, apron and the safety area as well as adding an edge drain system and new lighted signs. Chiloquin Taxi and Fencing: $990,000 Federal Funds (Federal Aviation Administration) and $110,000 Other Funds (aircraft registration fees) is approved to conduct rehabilitation at the Chiloquin State Airport. This project includes rehabilitation of the taxiway and installation of a complete perimeter fence, which are needed to meet federal standards for safe operating conditions.

SB 5506 A 6 of 12

Lebanon Taxi and Apron Rehabilitation: $990,000 Federal Funds (Federal Aviation Administration) and $110,000 Other Funds (aircraft registration fees) is approved to conduct rehabilitation at the Lebanon State Airport. This project includes rehabilitation of the taxiway and apron, which are needed to meet federal standards for safe operating conditions. Oregon Department of Fish and Wildlife Deferred Maintenance: $10,000,000 Other Funds (Article XI-Q bonds) is approved to make capital improvements to address deferred maintenance or replacement of multiple facilities, including hatcheries. The Subcommittee approved the extension of the project expiration date and expenditure limitation for the Ruby Pipeline (Other Funds) to June 30, 2019. Oregon Department of Forestry Toledo Facility Replacement: $3,832,965 Other Funds (Article XI-Q bonds) is approved to replace the Unit Office Facilities Compound located in Toledo and relocate it to a more centrally located area that will be outside of the mapped tsunami inundation zone, a project which is expected to be part of a larger co-locate project with the Oregon Department of Transportation. Article XI-Q bonds have been approved in SB 5505 to finance a portion of this project with $1,800,000 of bond proceeds in 2017-19. Oregon Housing and Community Services Family Affordable Housing: $80,000,000 Other Funds (Article XI-Q Bonds) is approved to acquire, construct, remodel, equip or furnish real property in which the department will take either an ownership or operational interest to provide affordable housing for low-income Oregonians, as well as citizens in historically underserved communities and communities of color. This may include providing zero percent loans to eligible applicants through the Local Innovation and Fast Track (LIFT) Housing Program. Oregon Department of Education Oregon School for the Deaf Facility Improvements: $4,297,558 Other Funds (Article XI-Q bonds) is approved for capital improvements to the Oregon School for the Deaf facility which includes roof replacements at six campus buildings and ADA compliance to address accessibility of campus restrooms in eight facilities. Legislative Administration Committee Capitol Accessibility, Maintenance, and Safety: $13,720,642 Other Funds (Article XI-Q bonds) is approved to finance capital improvements to the State Capitol Building. Oregon Judicial Department Multnomah County Courthouse Furnishings and Equipment: $8,900,000 Other Funds (Article XI-Q bonds) is approved to acquire equipment and furnishings for the Multnomah County Courthouse. SB 5506 A 7 of 12

Oregon Supreme Court Building Renovation: $6,000,000 Other Funds (Article XI-Q bonds) is approved to renovate the Oregon Supreme Court building, including seismic updates, energy efficiency improvements, and various systems and safety code upgrades. Higher Education Coordinating Commission (HECC) HECC - Public Universities The Subcommittee approved a $330,825,000 Other Funds Capital Construction six-year expenditure limitation for the Higher Education Coordinating Commission for distribution of general obligation bond proceeds to public universities. This amount corresponds to the total project amounts for the 17 new university projects authorized and an increase in one project reauthorized in SB 5505. Projects are funded with proceeds from the issuance of Article XI-G bonds, Article XI-Q bonds, and Article XI-F (1) bonds and will be disbursed as grants or loans, as applicable, pursuant to grant contracts and loan agreements between HECC and each university. Project descriptions are included in SB 5505. The expenditure limitation expires June 30, 2023. HECC - Community Colleges The Subcommittee approved a $101,397,241 Other Funds Capital Construction six-year expenditure limitation for the Higher Education Coordinating Commission for distribution of Article XI-G general obligation bond proceeds to community colleges. This amount corresponds to the total project amounts for the 12 new community college projects and three carryover projects authorized in SB 5505. Projects are funded with proceeds from the issuance of Article XI-G bonds and will be disbursed as grants pursuant to grant agreements between HECC and each community college. Project descriptions are included in SB 5505. The expenditure limitation expires June 30, 2023. The Subcommittee also approved the extension of the project expiration dates and existing Other Funds Capital Construction expenditure limitations for the following community college projects. All projects are funded with proceeds from the issuance of Article XI-G bonds: 

Lane Community College Science, Technology, Engineering and Math Classrooms and Labs through June 30, 2018;



Rogue Community College Manufacturing and Fabrication Flex Lab through June 30, 2018;



Umpqua Community College Roseburg Regional Health Occupations Training Center through June 30, 2018; and



Portland Community College Health Professions Center through June 30, 2021.

SB 5506 A 8 of 12

DETAIL OF JOINT COMMITTEE ON WAYS AND MEANS ACTION

SB 5506-A

Various Agencies Jean Gabriel 503-378-3107

DESCRIPTION

GENERAL LOTTERY FUND FUNDS

OTHER FUNDS

FEDERAL FUNDS

TOTAL FUNDS

POS

FTE

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

COMMITTEE AUTHORIZATIONS EDUCATION PROGRAM AREA Higher Education Coordinating Commission All - Capital Improvement and Renewal EOU - Loso Hall Renovation Phase 1 EOU - Track and Field Facilities Restoration OIT - Ctr for Exc in Engineering & Tech/Cornett Hall Ph 2 OIT - Student Recreation Center OIT - Oregon Manufacturing Innovation Center R&D Facility OSU - Cordley Hall Renovation Phase 1 OSU - Fairbanks Hall Renovation OSU - Gilkey Hall Renovation OSU - Cascades Expansion - Site Reclamation OSU - Quality Foods and Beverages Center PSU - Graduate School of Education Facility PSU - Residence Hall at 12th & Market PSU - Land Acquisition for University Center Building SOU - Central Hall Capital Improvements UO - Campus for Accelerating Scientific Impact Phase 1 WOU - Information Technology Center Renovation Phase 3 WOU - Oregon Military Building Renovation Phase 2 BMCC - Facility for Agricultural Resource Management, Ph 2 Chemeketa CC - Agricultural Complex Clackamas CC - DeJardin Building Addition Clackamas CC - Student Services & Community Commons Clatsop CC - Marine Science Center Renovation & Expansion CGCC - Middle College Prototype Facility 15-17 reauthorize LCC - Health Care Village Facility

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

50,000,000 5,500,000 750,000 40,000,000 5,000,000 3,875,000 15,000,000 11,000,000 3,000,000 9,000,000 9,000,000 51,000,000 53,500,000 5,000,000 6,000,000 50,000,000 5,500,000 7,700,000 5,000,000 6,000,000 8,000,000 8,000,000 7,996,994 7,320,000 8,000,000

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

SB 5506 A 9 of 12

LBCC - Student Advising and Campus Safety Center Mt Hood CC - Maywood Park Center OCCC - Workforce Education and Resiliency Center PCC - Health Technology Building Renovation RCC - Elk Building Science Facility Renovation & Expansion SWOCC - Dellwood Hall Remodel and Expansion TVCC - Workforce Vocational Center 15-17 reauthorize UCC - Industrial Technology Building 15-17 reauthorize

$ $ $ $ $ $ $ $

7,500,000 8,000,000 8,000,000 8,000,000 6,000,000 2,749,997 2,830,250 8,000,000

$ $ $ $ $ $ $ $

7,500,000 8,000,000 8,000,000 8,000,000 6,000,000 2,749,997 2,830,250 8,000,000

0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4,297,558 $

4,297,558

0.00

$ $ $ $ $ $ $ $ $ $ $ $

4,579,431 3,743,000 6,236,000 3,890,000 2,926,000 500,000 1,234,000 1,162,000 3,500,000 13,146,000 11,000,000 6,300,000

0 0 0 0 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Oregon Military Department Regional Armory Emergency Enhancement Grants Pass Armory Service Life Extension Future Readiness Center Sites

$ $ $

8,534,400 $ 3,270,356 $ 1,730,000 $

$ $ $

8,534,400 3,270,356 1,730,000

0 0 0

0.00 0.00 0.00

Oregon Youth Authority Capital Improvements MacLaren West Cottages Renovation Rogue Valley Facility Improvements

$ $ $

17,168,249 $ 21,177,200 $ 10,973,465 $

$ $ $

17,168,249 21,177,200 10,973,465

0 0 0

0.00 0.00 0.00

Oregon Department of Education Oregon School for the Deaf Facility Improvements ADMINISTRATION PROGRAM AREA Department of Administrative Services Mission Critical Facility Yellow Lot Building Human Services Building Upgrades Employment Building Upgrades Electrical Upgrades and Replacements Capitol Mall Parking Structure Study and Upgrades Planning Boiler and Heating Upgrades Portland Crime Lab Upgrade Parking Lot Upgrades Portland State Office Building Renovation State Data Center Power Upgrades Elected Official Staff Relocation

4,579,431 3,743,000 6,236,000 3,890,000 2,926,000 500,000 1,234,000 1,162,000 3,500,000 13,146,000 11,000,000 6,300,000

PUBLIC SAFETY PROGRAM AREA

SB 5506 A 10 of 12

Department of Corrections Capital Improvements and Renewal Technology Infrastructure

$ $

26,293,534 $ 12,200,000 $

$ $

26,293,534 12,200,000

0 0

0.00 0.00

Oregon Housing and Community Services Family Affordable Housing

80,000,000 $

80,000,000

0.00

Oregon Department of Veterans' Affairs Veterans' Home Capital Improvements Roseburg Veterans' Home

$ $

2,450,000 $ 10,500,000 $

$ $

2,450,000 10,500,000

0 0

0.00 0.00

Department of Transportation Toledo Maintenance Station Phase I

6,300,000 $

6,300,000

0.00

Department of Aviation Bandon Electrical, Gate, Obstruction Removal McDermitt State Airport Runway and Taxi Chiloquin State Airport Taxi and Fencing Lebanon State Airport Taxi and Apron Rehabilitation

$ $ $ $

192,500 120,000 110,000 110,000

$ $ $ $

1,925,000 1,200,000 1,100,000 1,100,000

0 0 0 0

0.00 0.00 0.00 0.00

Oregon Department of Fish and Wildlife Deferred Maintenance

10,000,000 $

10,000,000

0.00

Oregon Department of Foresty Toledo Facility Replacement

3,832,965 $

3,832,965

0.00

$ $

6,000,000 $ 8,900,000 $

$ $

6,000,000 8,900,000

0 0

0.00 0.00

ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAM AREA

TRANSPORTATION PROGRAM AREA

$ 1,732,500 $ 1,080,000 $ 990,000 $ 990,000

NATURAL RESOURCES PROGRAM AREA

JUDICIAL PROGRAM AREA Oregon Judicial Department Oregon Supreme Court Building Renovations Multnomah County Courthouse Equipment & Furnishings

SB 5506 A 11 of 12

LEGISLATIVE PROGRAM AREA Legislative Administration Committee Capitol Accessibility, Maintenance, and Safety

TOTAL

Department of Administrative Services Capital and Tenant Improvements for 550 Building

1,400,000 $

Oregon Department of Veterans' Affairs The Dalles Veterans' Home Renovation

965,429 $

94,483 $

13,720,642 $

13,720,642

0.00

743,112,041

0.00

1,400,000

0.00

497,588

1,463,017

0.00

825,517

920,000

0.00

738,319,541 $ 4,792,500

2015-17 Supplemental Expenditure Limitation Adjustments

2013-15 Supplemental Expenditure Limitation Adjustments Department of Transportation Salem Baggage Depot Renovation

SB 5506 A 12 of 12

79th Oregon Legislative Assembly – 2017 Regular Session

SB 5506 A BUDGET REPORT and MEASURE SUMMARY

Carrier: Rep. Smith G

Joint Committee On Ways and Means Action Date: Action: House Vote Yeas: Exc: Senate Vote Yeas: Nays: Prepared By: Reviewed By:

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

SB 5506 A 1 of 12

Budget Summary 2015-17 Legislatively (1) Approved Budget

2017-19 Committee Recommendation

Committee Change from 2015-17 Leg. Approved

$ $ $

738,319,541 4,792,500 743,112,041

$ $ $

$ Change 158,563,589 (30,095,804) 128,467,785

2015-17 Supplemental Expenditure Limitation Adjustments Department of Administrative Services Capital and Tenant Improvements for 550 Building (Other Funds)

1,400,000

Oregon Department of Veterans' Affairs The Dalles Veterans' Home Renovation (Other Funds) The Dalles Veterans' Home Renovation (Federal Funds)

$ $

965,429 497,588

$ $

965,429 497,588

2013-15 Supplemental Expenditure Limitation Adjustments Department of Transportation Salem Baggage Depot Renovation (Other Funds) Salem Baggage Depot Renovation (Federal Funds)

$ $

94,483 825,517

$ $

94,483 825,517

Other Funds Capital Construction Federal Funds Capital Construction Total

(1)

$ $ $

579,755,952 34,888,304 614,644,256

% Change 27.4% -86.3% 20.9%

Includes adjustments through December 2016

SB 5506 A 2 of 12

SB 5506 A 4 of 12

SB 5506 A 5 of 12

SB 5506 A 6 of 12

Lane Community College Science, Technology, Engineering and Math Classrooms and Labs through June 30, 2018;



Rogue Community College Manufacturing and Fabrication Flex Lab through June 30, 2018;



Umpqua Community College Roseburg Regional Health Occupations Training Center through June 30, 2018; and



Portland Community College Health Professions Center through June 30, 2021.

SB 5506 A 8 of 12

DETAIL OF JOINT COMMITTEE ON WAYS AND MEANS ACTION

SB 5506-A

Various Agencies Jean Gabriel 503-378-3107

DESCRIPTION

GENERAL LOTTERY FUND FUNDS

OTHER FUNDS

FEDERAL FUNDS

TOTAL FUNDS

POS

FTE

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

SB 5506 A 9 of 12

$ $ $ $ $ $ $ $

7,500,000 8,000,000 8,000,000 8,000,000 6,000,000 2,749,997 2,830,250 8,000,000

$ $ $ $ $ $ $ $

7,500,000 8,000,000 8,000,000 8,000,000 6,000,000 2,749,997 2,830,250 8,000,000

0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4,297,558 $

4,297,558

0.00

$ $ $ $ $ $ $ $ $ $ $ $

4,579,431 3,743,000 6,236,000 3,890,000 2,926,000 500,000 1,234,000 1,162,000 3,500,000 13,146,000 11,000,000 6,300,000

0 0 0 0 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Oregon Military Department Regional Armory Emergency Enhancement Grants Pass Armory Service Life Extension Future Readiness Center Sites

$ $ $

8,534,400 $ 3,270,356 $ 1,730,000 $

$ $ $

8,534,400 3,270,356 1,730,000

0 0 0

0.00 0.00 0.00

Oregon Youth Authority Capital Improvements MacLaren West Cottages Renovation Rogue Valley Facility Improvements

$ $ $

17,168,249 $ 21,177,200 $ 10,973,465 $

$ $ $

17,168,249 21,177,200 10,973,465

0 0 0

0.00 0.00 0.00

4,579,431 3,743,000 6,236,000 3,890,000 2,926,000 500,000 1,234,000 1,162,000 3,500,000 13,146,000 11,000,000 6,300,000

PUBLIC SAFETY PROGRAM AREA

SB 5506 A 10 of 12

Department of Corrections Capital Improvements and Renewal Technology Infrastructure

$ $

26,293,534 $ 12,200,000 $

$ $

26,293,534 12,200,000

0 0

0.00 0.00

Oregon Housing and Community Services Family Affordable Housing

80,000,000 $

80,000,000

0.00

Oregon Department of Veterans' Affairs Veterans' Home Capital Improvements Roseburg Veterans' Home

$ $

2,450,000 $ 10,500,000 $

$ $

2,450,000 10,500,000

0 0

0.00 0.00

Department of Transportation Toledo Maintenance Station Phase I

6,300,000 $

6,300,000

0.00

$ $ $ $

192,500 120,000 110,000 110,000

$ $ $ $

1,925,000 1,200,000 1,100,000 1,100,000

0 0 0 0

0.00 0.00 0.00 0.00

Oregon Department of Fish and Wildlife Deferred Maintenance

10,000,000 $

10,000,000

0.00

Oregon Department of Foresty Toledo Facility Replacement

3,832,965 $

3,832,965

0.00

$ $

6,000,000 $ 8,900,000 $

$ $

6,000,000 8,900,000

0 0

0.00 0.00

ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAM AREA

TRANSPORTATION PROGRAM AREA

$ 1,732,500 $ 1,080,000 $ 990,000 $ 990,000

NATURAL RESOURCES PROGRAM AREA

JUDICIAL PROGRAM AREA Oregon Judicial Department Oregon Supreme Court Building Renovations Multnomah County Courthouse Equipment & Furnishings

SB 5506 A 11 of 12

LEGISLATIVE PROGRAM AREA Legislative Administration Committee Capitol Accessibility, Maintenance, and Safety

TOTAL

Department of Administrative Services Capital and Tenant Improvements for 550 Building

1,400,000 $

Oregon Department of Veterans' Affairs The Dalles Veterans' Home Renovation

965,429 $

94,483 $

13,720,642 $

13,720,642

0.00

743,112,041

0.00

1,400,000

0.00

497,588

1,463,017

0.00

825,517

920,000

0.00

738,319,541 $ 4,792,500

2015-17 Supplemental Expenditure Limitation Adjustments

2013-15 Supplemental Expenditure Limitation Adjustments Department of Transportation Salem Baggage Depot Renovation

SB 5506 A 12 of 12

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Note: The foundation of the Oregon Department of Veterans’ Affairs (ODVA) 2017-19 Legislatively Adopted Budget was the 2017-19 Governor’s Budget (GB). ODVA has elected to preserve the historical perspective and reasoning behind the development of the GB and the GB Policy Option Packages by including this information in the Legislatively Adopted Budget (LAB). The narrative sections that were part of the GB, but are no longer applicable or were not adopted by the Legislature, are grayed out.

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

policy option packages: proposed packages and Legislative action ODVA submitted five Policy Option Packages, numbered 101 through 105. The following is outlined for each package: the proposed Governor’s Budget (GB) package narrative summary, the financial package request and the legislative action taken on the package. POLICY OPTION PACKAGE 101 This package proposed using smart technology to better protect and serve veterans by: • •

Replacing outdated and inadequate applications with effective, efficient platforms designed for modern day needs; and Improving services by laying a service foundation for the 21st century.

Package Request: $600,000 LF $250,000 OF $850,000 Total

Conservatorship Program Home Loan Program

Legislative Action: Approved POLICY OPTION PACKAGE 102 This packaged proposed the following to expand services to veterans and align funding within the Department’s program areas: • • •

Increasing County and National Service Organization pass-through monies; Developing Aging Veteran Service outreach programs; and Stabilizing the Home Loan Program.

Package Request: AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

County and National Service Org. $1,500,000 LF County Pass-through (special payments) $ 57,000 LF National Service Org. Pass-through (special payments) $1,557,000 LF Total Aging Veteran Services $ 126,795 LF $ 168,613 LF $ 85,140 LF $ 380,548 LF

Representative Payee; Admin Spec. 2 (personal services) Aging Veteran Outreach Specialist; Program Analyst 2 (personal services) Services and Supplies Total

$ 201,430 $ 47,650 $ 249,080

Asst. Director of Aging; Principal Exec/Manager D (personal services) Services and Supplies Total

OF OF OF

Stabilization and Funding Alignment The following positions are fully or partially funded with Other Funds and are proposed to be paid from Lottery Funds: $ $ $ $ $ $ $ $ $ $ $ $ $ $

103,089 50,071 36,601 112,553 151,347 108,083 120,925 125,720 81,762 90,035 79,186 237,393 181,841 168,613

LF LF LF LF LF LF LF LF LF LF LF LF LF LF

Veteran Services Administrator; Principal Exec/Manager E (personal services) Veteran Services Administrative Assistant; Administrative Specialist 2 (personal services) Veteran Services Benefits/Receptionist; Public Service Representative 2 (personal services) Veteran Services Benefits/Receptionist; Office Specialist 2 (personal services) Conservatorship Manager; Principal Exec/Manager C (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Conservatorship Secretary; Administrative Specialist 1 (personal services) Public Affairs Manager; Principal Exec/Manager D (personal services) Public Affairs Specialist 2; Public Affairs Specialist 2 (personal services) Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

$ 156,265 $ 280,732 $ 319,794 $ 1,721,727 $ 4,125,737

LF LF LF LF LF

Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) Senior Policy Advisor; OPS/Policy Analyst 4 (personal services) Aging Veteran Services Director; Principal Exec/Manager F (personal services) Services & supplies including pro-rata portion of shared service support costs (services and supplies) TOTAL (Personal services of $2,404,010; services & supplies of $1,721,727)

Because the following costs (other than the $1,218,547 of shared service support costs) will be shifted from Other Funds to Lottery Funds, this package also requests a reduction of Other Funds as shown below. ($ 2,083,690) OF ($ 503,180) OF ($ 2,586,870) OF

Personal services (amount includes a Veteransâ&#x20AC;&#x2122; Home PS adjustment) Service and supplies Total OF reduction for personal services and services and supplies

GRAND TOTALS $ 1,557,000 $ 2,699,418 $ 1,806,867 $ 6,063,285

LF LF LF LF

TOTAL Special Payments TOTAL Personal Services TOTAL Services and Supplies TOTAL Combined

($1,882,260) ($ 455,530) ($2,337,790)

OF OF OF

TOTAL Personal Services Reduction TOTAL Services and Supplies Reduction TOTAL Combined Reduction

Legislative Action: Approved with revisions The following REVISED package was approved: County and National Service Org. $4,354,861 LF County Pass-through (special payments) $ 118,156 LF National Service Org. Pass-through (special payments) $4,473,017 LF Total

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Statewide Veteran Services $ 168,615 LF Training Position; Program Analyst 2 (personal services) $ 112,555 LF Claims Assistant; Office Specialist 2 (personal services) $ 22,410 LF Services and Supplies $ 303,580 LF Total Aging Veteran Services $ 126,795 LF $ 168,083 LF $ 171,820 LF $ 466,698 LF

Representative Payee; Admin Spec. 2 (personal services) Aging Veteran Outreach Specialist; Program Analyst 2 (personal services) Services and Supplies Total – Conservatorship

$ 201,430 $ 47,650 $ 249,080

Asst. Director of Aging; Principal Exec/Manager D (personal services) Services and Supplies Total – Veterans’ Home Program

OF OF OF

Stabilization and Funding Alignment The following positions were fully or partially funded with Other Funds and are paid from Lottery Funds: $ $ $ $ $ $ $ $ $ $ $ $

103,089 50,071 36,601 112,553 151,347 108,083 120,925 125,720 81,762 90,035 79,186 237,393

LF LF LF LF LF LF LF LF LF LF LF LF

Veteran Services Administrator; Principal Exec/Manager E (personal services) Veteran Services Administrative Assistant; Administrative Specialist 2 (personal services) Veteran Services Benefits/Receptionist; Public Service Representative 2 (personal services) Veteran Services Benefits/Receptionist; Office Specialist 2 (personal services) Conservatorship Manager; Principal Exec/Manager C (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Conservatorship Secretary; Administrative Specialist 1 (personal services) Public Affairs Manager; Principal Exec/Manager D (personal services) AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

$ 181,841 $ 168,613 $ 156,265 $ 280,732 $ 319,794 $ 1,721,727 $ 4,125,737

LF LF LF LF LF LF LF

Public Affairs Specialist 2; Public Affairs Specialist 2 (personal services) Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) Senior Policy Advisor; OPS/Policy Analyst 4 (personal services) Aging Veteran Services Director; Principal Exec/Manager F (personal services) Services & supplies including pro-rata portion of shared service support costs (services and supplies) TOTAL (Personal services of $2,404,010; services & supplies of $1,721,727)

OF OF OF OF OF

Personal services (Loan Program) Personal services (Statewide Veteran Services - Conservatorship) Personal services (Veteransâ&#x20AC;&#x2122; Home Program) Services and Supplies (Loan Program) Total OF reduction for personal services and services and supplies

$ 4,473,017 $ 2,980,058 $ 1,915,957 $ 9,369,032

LF LF LF LF

TOTAL Special Payments TOTAL Personal Services TOTAL Services and Supplies TOTAL Combined

$ 201,430 $ 47,650 $ 249,080

OF OF OF

TOTAL Personal Services TOTAL Services and Supplies TOTAL Combined

($2,403,484) ($ 503,180) ($2,906,664)

OF OF OF

TOTAL Personal Services Reduction TOTAL Services and Supplies Reduction TOTAL Combined Reduction

GRAND TOTALS

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

POLICY OPTION PACKAGE 103 This packaged proposed the following: • Strengthening the Loan Program, including a Loan Origination Compliance position; and • Implementing a refresh of the ODVA state office building. Package Request: $ $ $ $

168,614 14,912 17,833 201,359

OF OF OF OF

Operations and Policy Analyst 2 (personal services) Reclass two Loan Specialist 1 positions to Loan Specialist 2 (personal services) Services and Supplies for one new position Loan Program Compliance

$ 933,333

Building refresh: Services and Supplies

$1,134,692

Total

Legislative Action: Approved POLICY OPTION PACKAGE 104 This package proposed mobilizing ODVA’s partnerships with state and local governments and non-profits in three targeted priority areas for veterans: 1. Oregon University and Community College Veterans: Campus Veteran Programs and Campus Veteran Coordinators 2. Homeless Veterans: Oregon Housing and Community Services Emergency Housing Account Enhancement 3. Veterans’ Health and Mental Health Care: Health Care Access and Peer Delivered Services for Mental Health Package Request: $ $ $

1,250,000 LF 875,000 LF 875,000 LF

Pass through grants to community colleges and state universities (special payments) Pass through to OHCS EHA (special payments) Pass through to OHA for peer delivered services (special payments) AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

$ 3,000,000 LF

TOTAL (special payments)

Legislative Action: Approved in part The following REVISED package was approved: $ 350,000

Pass through to Suicide Prevention Hotline (services and supplies)

Note: See Senate Bill 143 below, which provided $1,000,000 for grants to community colleges and state universities. POLICY OPTION PACKAGE 105 This package proposed funding capital projects for the Oregon Veterans’ Home Program. Package Request: $ $ $

1,150,000 LF 1,300,000 LF 2,450,000 LF

The Dalles Veterans’ Home (capital project) Lebanon Veterans’ Home (capital project) TOTAL (capital project)

Legislative Action: Approved with revisions The following REVISED package was approved: $ 1,150,000 LF $ 1,300,000 LF $ 10,500,000 LF $ 12,950,000 LF

The Dalles Veterans’ Home (capital project) Lebanon Veterans’ Home (capital project) Future Roseburg Veterans’ Home (capital project) TOTAL (capital project)

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

OTHER BILLS WITH FISCAL IMPACT, statutory change AND/or PROGRAM RESPONSIBILITY House Bill 2908 – Creates a veteran volunteer coordinator within ODVA. Chapter 665, Oregon Laws 2017. Eff. 8/8/2017. Senate Bill 79 – Technical statutory fix for ODVA home loan program. Chapter 236, Oregon Laws 2017. Eff: 6/6/2017. Senate Bill 80 – ODVA to provide aid and assistance to Oregon Indian tribes and tribal veteran representatives. Chapter 311, Oregon Laws 2017. Eff. 1/1/2018. ODVA bill. Senate Bill 81 – ODVA to provide expertise, and advocacy and assistance to veterans navigating health/mental health care. Chapter 478, Oregon Laws 2017. Eff. 1/1/2018. ODVA bill. Bills that Impact Veterans Affairs Advisory Committee Senate Bill 129 – Veterans Affairs Advisory Committee to consider and report whether legislature should create a task force on PTSD. Chapter 481, Oregon Laws 2017. Eff: 10/6/2017. Senate Bill 476 – Veterans Affairs Advisory Committee to consider and report whether service-connected disabled vets should be added to Oregon’s Preferred Worker Program administered by Workers’ Compensation. Chapter 455, Oregon Laws 2017. Eff: 10/6/2017. Senate Bill 832 – Veterans Affairs Advisory Committee to review, consider, report to legislative committees by 2/1/2018 on grant program for nonprofits in rural areas for veteran services. Chapter 470, Oregon Laws 2017. Eff: 10/6/2017. Grants House Bill 2891 - Establishes $550,000 Veteran Services Grant Fund for grants from $25,000 to $250,000 for veteran services. Chapter 664, Oregon Laws 2017. Eff. 8/8/2017. Senate Bill 143 - ODVA $1 million grant program for campus veterans resource centers/coordinators. Chapter 731, Oregon Laws 2017. Eff. 8/15/2017. Budget Senate Bill 140 – Establish Veteran Services Fund at DAS, ODVA and OHCS. Chapter 731, Oregon Laws 2017. Eff. 8/16/2017 AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

House Bill 5006 – End of Session Budget Adjustments (impacts ODVA’s 2017-19 biennial operating budget) House Bill 5039 – ODVA budget bill. Chapter 585, Oregon Laws 2017. Eff. 7/19/2017 Senate Bill 5505 – Bonding Bill – establishes the amount of authorized Article XI-A bonds that ODVA can issue for its Home Loan Program and authorized amounts for Article XI-Q bonds for projects at The Dalles Veterans Home, The Lebanon Veterans’ Home and potentially for a future Roseburg Veterans’ Home during the 2017-19 biennium. Senate Bill 5506 – Capital Construction - provides six year capital construction expenditure authority for approved projects at The Dalles Veterans’ Home, The Lebanon Veterans’ Home and potentially a future Roseburg Veterans’ Home. Other House Bill 5012 – OHCS budget bill. Chapter 574, Oregon Laws 2017. Eff. 7/19/2017. Directs Oregon Department of Veterans' Affairs and OHCS to work to develop plan to advise legislature on investments of funds to veterans homelessness and housing issues by February 2018. House Bill 5026 – Budget Note. Chapter 545, Oregon Laws 2017. Eff. 7/3/2017. Budget note on tobacco tax revenue increase to fund mental health programs: $2.5M for veterans’ behavioral health services. OHA will work with ODVA and other stakeholders to identify a process to fund programs and services which improve behavioral health outcomes for Oregon’s veterans. OHA will distribute funds, report to 2019 Legislature.

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

2017-19 LEGISLATIVELY ADOPTED BUDGET: PROGRAM EXPENDITURES FOR ALL PROGRAMS OR ACTIVITIEs VETERANS’ HOME LOAN

Other Funds

$16,417,830

VETERAN SERVICES

Lottery Funds General Funds Other Funds Federal Funds TOTAL FUNDS

13%

VETERANS' HOME LOAN

19%

68%

VETERANS' HOMES [THE DALLES AND LEBANON]

VETERAN SERVICES

$14,856,025 $ 7,363,276 $ 107,623 $ 500,000 $22,826,924

VETERANS’ HOMES

Other Funds

$83,791,488

TOTAL PROGRAM EXPENDITURES

Lottery Funds General Funds Other Funds Federal Funds TOTAL FUNDS

$ 14,856,025 $ 7,363,276 $100,316,941 $ 500,000 $123,036,242

*Excludes Debt Service, Capital Construction and Nonlimited Expenditures Veterans Loan Program Nonlimited $387,546,159 (OF) Veterans’ Home Program Debt Service $1,017,323 (GF) Veterans’ Home Capital Construction $12,950,000 (OF)

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // ALL PROGRAMS EXPENDITURES CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

2017-19 LEGISLATIVELY ADOPTED BUDGET: historical operating budget distribution by fund type - all programs

$140,000,000

$120,000,000

$100,000,000

$80,000,000

$60,000,000

$40,000,000 Note 1: Lottery Funds were a result of voterpassage of Measure 96 in November 2016.

$20,000,000

$Federal Funds Other Funds

2007-09 LAB

2009-11 LAB

2011-13 LAB

2013-15 LAB

2015-17 LAB

2017-19 LAB

$500,000

$39,941,371

$46,403,160

$44,891,342

$43,788,902

$82,257,619

$100,316,941

Lottery Funds

$14,856,025

General Funds

$6,034,088

$6,168,915

$6,469,659

$8,945,967

$10,129,411

$7,363,276

Note 2: Significant increase in Other Funds for 2015-17 and 2017-19 are the result of the new Veteransâ&#x20AC;&#x2122; Home in Lebanon that opened in Fall 2014.

LAB. = Legislatively Adopted Budget; **Excludes Debt Service, Capital Construction and Nonlimited Expenditures

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // DISTRIBUTION BY FUND TYPE CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

2017-19 LEGISLATIVELY ADOPTED BUDGET: comparison to 2015-17 LEGISLATIVELY ADOPTED BUDGET $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $-

2015-17 LAB

2017-19 LAB

Statewide Veteran Services

Pass-Through Other Funds

2015-17 LAB

2017-19 LAB

Veterans Home Loans

2015-17 LAB

2017-19 LAB

Veterans' Homes

$873,803

$107,623

$15,477,065

$16,417,830

$65,906,751

$83,791,488

General Funds

$4,813,420

$1,923,727

$5,315,991

$5,439,549

Federal Funds

$500,000

Lottery Funds

$9,114,501

$5,741,524

Notes: Pass-through includes funds to counties and National Service Organizations for Veteransâ&#x20AC;&#x2122; Services and Partnerships. Excludes Debt Service and issuance costs, Capital Construction and Nonlimited Expenditures.

AGENCY SUMMARY // AGENCY CHARTS AND GRAPHS // 15-17 LAB TO 17-19 GB COMPARISON CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Mission Statement AND Statutory Authority In 1945, Oregonians committed to stand up and serve returning veterans. Today, the Oregon Department of Veterans’ Affairs (ODVA) continues to carry on this essential support for the veteran community that was envisioned at our founding. World War I veterans established the voice needed to better coordinate the sea of goodwill for veterans across all levels of government and community partners like national service organizations, colleges and universities, non-profits, faith-based organizations and private sector employers. They recognized that returning veterans gained great strength from their service, but also faced challenges reintegrating home. These priorities, over seventy years old, could just as easily have been written today to describe the current veteran landscape. This is not to suggest that progress has not been made, rather, the nature of military service across all era’s results in challenges for veterans in their civilian life. ODVA has an incredibly broad mission in serving a diverse veterans’ community in key areas of health, education and economic opportunity. Today’s veteran services system has been challenged in the last decade to keep up with the unprecedented demand for services from four generations of veterans. The combined breadth of the veterans’ population served and their diverse needs has required a cohesive vision and mission supported by a long-term strategic approach to veteran services by the agency.

Our vision

Veterans and their families thrive in Oregon.

Our mission

ODVA serves and honors veterans through our leadership, advocacy and strong partnerships.

Our values

Respect, Integrity, Stewardship and Excellence.

Statutory Authority Article XI-A of the Oregon Constitution mandates the over-arching duties of the Department. Oregon Revised Statutes Chapters 406 through 408 and Oregon Administrative Rules contained in Chapter 274 are the primary laws and rules governing the Department.

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // MISSION STATEMENT AND STATUTORY AUTHORITY

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Agency Strategic Plan: Five-year Strategic Plan 2014-2019 The Oregon Department of Veterans’ Affairs (ODVA) developed a new strategic plan for the agency in early 2014. With fresh eyes, the team developed a fiveyear strategic plan to make a series of course corrections that would create a more robust agency focused on serving Oregon veterans and their families for future generations. Overview ODVA has four major program functions: statewide veteran services, aging veteran services, the veteran home loan program, and core operations that support and enhance other functions. The development of the strategic plan included careful consideration of existing operations and potential strategies to use limited resources to positively impact the greatest number of veterans. While no single agency or organization can wholly address the needs of veterans, ODVA is well-positioned to reach veterans when they need resources and benefits. As the leader and expert on veteran’s issues in Oregon, ODVA recognizes the need to maximize the current veteran benefits that federal, state, local governments and nonprofits provide and has begun to develop and deepen fully-engaged partnerships. ODVA Five-Year Strategic Goals and Objectives for 2014-2019 ODVA developed four strategic goals: target veteran services, mobilize partnerships, drive veteran engagement and invigorate core operations. Goal:

Target Veteran Services Objective: To serve more veterans and serve them better Strategies: • Invest in a 21st century veteran services system • Ensure veteran service officers across Oregon are well-staffed and resourced • Focus statewide veteran services on training, claims review, advocacy, and support • Better connect veterans to community resources

Goal:

Mobilize Partnerships Objective: To leverage all resources available to veterans AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // AGENCY STRATEGIC PLANS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Strategies: • Maximize up-front, preventative resources to reduce expensive, back-end safety net systems • Bring the veterans’ lens to key outcome areas in health/wellness and education/economic opportunity • Collaborate to create, connect and support statewide networks for veterans and family resources • Partner across federal, tribal, state and local governments • Engage private, non-profit and philanthropic sectors Goal:

Drive Veteran Engagement Objective: To amplify awareness of resources and build the Oregon veteran brand Strategies: • Deepen the connection with the veteran community • Promote a positive image of veterans and their families • Build the Oregon veterans brand • Ensure a seamless and positive experience by veterans seeking services

Goal:

Invigorate Core Operations Objective: To build a better, stronger and more durable department for future generations through our responsible, resourceful and creative management Strategies: • Reenergize the Veterans’ Home Loan program • Provide the best in care at the Oregon Veterans’ Homes • Support 21st century veterans’ services through integrated information technology • Maintain fiscal integrity and sustainability of the Department’s programs • Infuse a culture of service that champions our values and vision through leadership, training, communication and accountability

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // AGENCY STRATEGIC PLANS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Agency initiatives and accomplishments (2015-17 biennium) Target Veteran Services • • • • • • • • •

Continued the additional $1 million in funds above base budget to support County Veteran Service Offices. Increased new Power of Attorneys (POA’s) by 30% from FY 12-14 (16,270) to FY 14-16 (21,094). Increased new claims filings by 58% from FY 12-14 (14,960) to FY 14-16 (23,661). Increased Federal VA Disability Compensation and Pension dollars received by Oregon veterans by $357 million from FY 12 to FY 15. Doubled the agency’s training capacity for veteran service officers (from one trainer to two) and certified 30 new veteran service officers between FY 14 and FY 16. Established an Aging Veteran Services Director to lead efforts relating to aging veteran issues along with benefits and resources unique to this demographic that makes up more than 50% of the Oregon veteran community. Began providing Fiduciary and Representative Payee Services to veterans. Held Tribal Veteran Representative (TVR) training on May, 2016 at the Umatilla Tribal Center for 27 TVR’s. Participants were from 12 different tribal nations and came as far away as Oklahoma. Worked with Polk County to establish a Veteran Services Office, which opened in January 2017.

Mobilize Partnerships • • • • • • •

Partnered with DHS and OHA to allow ODVA to receive the PARIS match list to identify Oregon veterans who are receiving state human services benefits that could possibly be better served through Federal VA benefits. Worked with Oregon Housing Authority to create dedicated funding for veterans in need of gap housing assistance and barrier removal funds in five areas of Oregon. Worked with agency partners to implement certification for preference in public contracting for service disabled veteran owned businesses Gained priority enrollment for veterans at Oregon’s community colleges and universities. Conducted a women veteran health care study regarding health care and medical services for women veterans. Gained authorization for ODVA and the counties to appoint volunteer veterans' guides to provide support services and assistance to veterans. Received a Federal VA transportation grant of $500,000 for highly rural counties in Oregon. These counties include Baker, Gilliam, Grant, Malheur, Morrow, Sherman, Wallowa, Lake, Harney, and Wheeler. AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // AGENCY INITIATIVES AND ACCOMPLISHMENTS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

• •

Received $350,000 to support a dedicated suicide prevention and crisis resource line for military, veterans and their families. Continued to build partnerships with third party home loan originators to expand program reach of the ODVA Home Loan.

Drive Veteran Engagement • • • •

• • •

Established partnership with Department of Defense (DoD) to begin receiving electronic military discharge documents for outreach purposes. Implemented data sharing with Oregon Health Authority to provide ODVA with names and addresses of veterans who agree to be contacted by ODVA. Added a Women’s Veterans Coordinator to improve outreach to women veterans, the fastest growing demographic in our veterans’ community. Added a Lesbian, Gay, Bisexual, Transgender, Queer (LGBTQ) Veteran Coordinator to conduct outreach to and provide assistance designed for the unique needs of LGBTQ veterans, as well as their spouses and families and help veterans apply to upgrade their status if they were discharged under less-than-honorable conditions under the Department of Defense “Don’t Ask, Don’t Tell” policy. Dedicated staff to partner with organizations within the corrections community to develop an incarcerated veteran program aimed at increasing the successful reintegration to society and reduce recidivism among the veteran community. Exempted veterans' personal information held by ODVA from public records disclosure requirements. Held first ever Veteran Benefits Expo that partners state, federal and community veteran service providers to deliver benefit and resource information.

Invigorate Core Operations • • •

•

Increased home loan originations to more than $71 million in calendar year 2015, the highest production level in the past 18 years. Received Gold Star from the state controller’s office for the 21st year in a row. Opened the second Oregon Veterans’ Home in Lebanon. This newest facility in the state is beautiful and built in the small home model to make it truly more like a home. With Medicaid and Medicare certification, as well as the Federal VA per diem revenue, we can offer the best in skilled nursing care for veterans and their spouses at below market rates. Implemented a new home loan product that targets the more recently discharged veterans, offering a 97% Loan-to-Value product. Veteran home buyers can now obtain a home loan with as little as 3% down payment, and in some situations, the 3% can be in a form of a gift, essentially allowing for minimal out of pocket costs for an Oregon veteran to obtain home ownership. Oregon Veterans’ Home in The Dalles received the Gold Award for Quality Achievement form the American Health Care Association (AHCA) and the National Center for Assisted Living (NCAL). To date, the Home is one of approximately 31 skilled nursing care facilities in the nation – and one of only two state veterans’ homes – to achieve this level of recognition.

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // AGENCY INITIATIVES AND ACCOMPLISHMENTS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Initiatives Policy Option Package 101:

21st Century Delivery of Core Programs Smart technology to better serve and protect veterans. • •

Policy Option Package 102:

Replace outdated and inadequate applications with effective, efficient platforms designed for modern day needs. Leverage technology to improve services and lay foundation to build a 21st century ODVA.

Target Veteran Services Expanded access to services for the underserved veteran community. • • • •

Policy Option Package 103:

Greatly increases availability of veteran services in local communities across the state. Prioritizes resources and services for aging veterans who represent more than half of Oregon’s veterans population. Corrects unsustainable funding distribution and sets the agency on strategic course for a sustainable future. Builds on strong return on investment results seen over last two biennia and continues to draw down Federal VA dollars and preserve state resources.

Strengthen Home Loans Home Loan program compliance with federal law and over-due building maintenance. • •

Policy Option Package 104:

Expert oversight and critical risk mitigation for state home loan program. Replacement of interior carpet, paint and signage in staff, public and leased areas of ODVA building pursuant to timeline recommended by Department of Administrative Services (DAS).

Mobilize Partnerships

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // AGENCY INITIATIVES AND ACCOMPLISHMENTS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Leverages existing state programs and local providers to expand and enhance direct service to veterans across education, health and mental health, and housing and homelessness. • • •

Policy Option Package 105:

Maximize up-front, preventative resources to reduce expensive, back-end safety net systems within health and mental health care. Invest in established statewide networks to connect veterans and their families to resources. Bring the veterans’ lens to key state outcomes in higher education.

Veterans’ Homes Capital Projects A secure and safe environment for Oregon’s more vulnerable veterans. • • •

Focus resources to recruit and retain medical staffing at The Dalles Oregon Veterans’ Home. Upgrade wireless infrastructure to maintain efficient use of the electronic health records system, installation of additional security cameras and equipment and replace 20 year old phone system with VOIP at The Dalles Oregon Veterans’ Home. Expand parking capacity at the Veterans’ Home in Lebanon to accommodate space for staff, family, community visitors, volunteers and overflow for special events.

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // AGENCY INITIATIVES AND ACCOMPLISHMENTS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Agency programs The Oregon Department of Veterans’ Affairs has three primary program areas and are supported by the agency’s core operations: •

•

Veteran Services Program o Statewide Veteran Services o Certification and Training o County Veteran Service Offices o National Veteran Service Offices o Emergency Financial Assistance Aging Veteran Services Program o Aging Veteran Services o Conservatorship/Representative Payee Services o Oregon Veterans’ Homes  The Dalles and Lebanon Home Loan Program o Origination o Servicing Core Operations o Director’s Office o Policy o Financial Services o Communications o Information Services o Human Resources o Facility Services o Records and Information Management

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // AGENCY PROGRAMS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Statewide Veteran Services Program The Veteran Services Program is responsible for providing advocacy and benefits to veterans, their dependents, and survivors. The program provides benefits counseling, claims and appellate representation, certification and training for counties and national service organizations, emergency financial assistance, and other service delivery partnerships across the state. The division is the front line for all veteran benefits, ensuring that veterans obtain all the benefits to which they are entitled as a result of their military service. Within the Veteran Services Division, there are five sub-program areas: Statewide Veteran Services Purpose: The United States Department of Veterans Affairs (Federal VA) benefit system is a legal system. In order to qualify for benefits, veterans must file a claim against the United States proving they are eligible for these benefits through the submission of legal, military, and medical evidence. ODVA employs federally accredited and state certified Veteran Service Officers (VSO’s) located in Salem and Portland, who are subject matter experts in Federal VA law (Chapter 38 United States Code and Chapter 38 Code of Federal Regulations) and are allowed to represent veterans who grant the VSO a power of attorney. These VSO’s represent veterans, their dependents, and survivors before the Federal VA in their claims and appeals. With its County Veteran Service Officer and National Service Officer partners, ODVA provides claims advocacy and representation to Oregon’s 326,000 veterans, resulting in more than 19,750 new claims and more than 79,000 total claims filed during fiscal year 2015. Currently, ODVA holds power of attorney for nearly 101,000 Oregon veterans. The Statewide Veteran Service office in Portland submits all claims under ODVA’s power of attorney for 35 counties and state VSO’s to the Federal VA. This office inputs, catalogs, provides quality assurance and liaisons with the Federal VA. This office also represents veterans on county and ODVA claims during various stages of appeals. The Statewide Veteran Service office in Salem presently handles direct claims for veterans for Marion and Polk Counties, and sensitive claims on a statewide basis. The office also works on a few statewide special advocacy veteran issues in a limited capacity. These statewide issues include veterans in justice involved situations (corrections, veteran’s courts, etc.), LGBTQ and women veterans issues. The first goal is that the office only handle claims that are sensitive, highprofile or very challenging and focus the counties on local veteran claims. A second goal is to increase the breadth and depth of statewide direct service veteran’s issues the office will handle. In addition to working active claims and appeals cases, state VSO’s from the Salem office provide county veteran services when a county elects not to fund a county veteran service office or has a temporary vacancy.

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // AGENCY PROGRAMS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Statewide Veteran Services is also responsible for the training, certification, and accreditation of all county and state veteran service officers. The agency holds initial onsite training for all new veteran service officers, one annual conference and will be developing online learning. Training is conducted on the latest Federal VA legal, medical and process information. ODVA trains and accredits VSO’s to file defensible claims for disability, benefit and pension compensation on behalf of veterans. Claims are filed through ODVA’s Power of Attorney (POA) or a national service organization’s POA, as the claims are legal documents reviewed and adjudicated by the U.S. Department of Veterans’ Affairs. It takes approximately 18 months for a new VSO to achieve accreditation. VSO’s must understand the intricacies of veteran status, types of military discharges, privacy laws under HIPAA, Federal VA organization and structure, and state and local information resources available to veterans. One of the more challenging hurdles for new VSO’s is learning to interpret and manage existing claims with complex case files and long histories. VSO’s also need to be trained in laws and procedures specific to the appeals process. ODVA provides 40 hours of intensive one-on-one class room training for new VSO’s to go over this information initially, along with mock interviews, full practice claims, and training on the automated case management data system. Fully-accredited VSO’s need continuing education to keep pace with new procedures and directives coming from the federal Veterans’ Administration. Training needs for fully-accredited VSO’s include developing curricula and hosting an annual conference with specific workshop tracks and general sessions. Advanced training includes a deeper dive into the Code of Federal Regulation Title 38 governing veterans’ benefits, analysis of federal claims and appeals decisions, legal research, and outreach best practices. County Veteran Service Officers (CVSO’s) Program Purpose: ODVA’s statewide partnership with counties began when the legislature appropriated money to aid counties in an effort to promote services to veterans on a local level. It is an effective network of trained County Veteran Service Officers (CVSO) in 35 of the 36 counties. CVSO’s are not supervised by ODVA; however, the agency provides training, certification, accreditation, counsel, and outreach to the CVSO’s. The vast majority of CVSO appeal cases also are handled by the Statewide Veteran Service office in Portland. National Service Organizations (NSO) Purpose: ODVA partners with national veteran service organizations in Oregon. National veteran service officers provide the same veteran benefit and claims representation as state and county veteran service officers. Currently, the Disabled American Veterans, Veterans of Foreign Wars, Military Order of the Purple Heart, and National Association of Black Veterans participate in this funding.

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // AGENCY PROGRAMS

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Emergency Financial Assistance Program Purpose: Emergency Aid offers a one-time grant to veterans who have emergency needs. Examples include a veteran whose car needs repair and without this repair cannot work or a homeless veteran who obtains a job, but needs help with rent and deposits for a place to stay. The key is sustainability; the veteran must be able to sustain their finances after receiving the bridge funding via this grant. Partnerships Purpose: ODVA has an incredibly broad mission in serving a diverse veterans’ community in key areas of health, education and economic opportunity. Today’s veteran services system has been challenged in the last decade to keep up with the unprecedented demand for services from four generations of veterans across five major wars. The combined breadth of the veterans’ population served and their diverse needs requires a cohesive long-term strategic approach to the delivery of veteran services, which includes statewide partnerships. ODVA partners with other key state and federal agencies and leverages existing services for our veterans’ health, education and economic opportunity.

Aging Veteran Services Program Aging Veteran Services Purpose The Aging Veteran Services Division is a new program area within the agency that was established to address the needs and concerns of our rapidly aging veteran demographic and their families. Currently more than 50% of Oregon veterans served during WWII, Korea and Vietnam eras and nationally, more than 12.4 million veterans are age 65 or older. Long-term care needs for older Americans is a national concern. For the foreseeable future, older veterans and their families will increasingly need access to long-term care, adult foster care, home and community based services, as well as access to prosthetics, mental health care, health care, dental and hearing aids, and prescription medication. According to the Oregon Office of Economic Analysis, the population of adults 65 years and older will grow at a pace of 4% annually, and will comprise 22% of all Oregonians by 2040. This division strengthens collaboration with all state, federal and community partners to ensure our veterans, their families, and caregivers receive the best advocacy and services available as they age. The Aging Veteran Services Division is the front line for connecting all aging veteran related benefits and resources. Currently, the division incorporates the operational management of the two Oregon Veterans’ Homes and Conservatorship program. AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // AGENCY PROGRAMS

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Conservatorship and Representative Payee Purpose: When veterans are deemed to be incompetent by a county circuit court or the Federal VA to manage their own finances, the court or the Federal VA may appoint ODVA to provide financial management services. The court may appoint ODVA to act as conservator, which includes managing all income and assets for the veteran. Federal VA may appoint ODVA to act as a Representative Payee for a veteran, in which the Agency acts in a limited capacity to pay the bills and act as an advocate for these veterans. Oregon Veterans’ Homes Purpose: The purpose of the Oregon Veterans’ Homes is to provide veterans and families with access to high-quality nursing home care at affordable rates as a state and federal benefit for veterans. Residents receive 24-hour, long-term skilled nursing, Alzheimer’s and other memory-related, and rehabilitative care by a nursing staff whose skills and understanding meet the unique and special needs of veterans. The nursing staff is complemented by physical, occupational, and speech therapists that provide specific physician-ordered services to help residents meet their maximum rehabilitative potential.

Home Loan Program Purpose: Wanting to provide a benefit to World War II veterans returning home, Oregon citizens voted in 1945 to create a Veterans’ Home Loan Program, establishing it in Article XI-A of the Oregon Constitution. Identified as the Home Loan Program (ORVET), this historically self-sufficient program provides lowinterest rate mortgages on single-family, owner-occupied homes to qualified veterans. Through this program, veteran borrows can generally save between $15,000 to $50,000 by obtaining a 30-year ODVA Home Loan compared to similar products available in the conventional market. Oregon is one of only five states in the nation that has been grandfathered under federal tax law to offer a state veteran home loan program; the other four grandfathered states include Alaska, California, Texas, and Wisconsin. The concept behind the veteran home loan program is that these states want to provide an enhanced housing benefit to their veterans for their past service and sacrifice. Historically, this enhanced housing benefit has generally resulted in significantly lower home loan rates than are normally available in the marketplace through the issuance of tax-free, state general obligation bonds called Qualified Veteran Mortgage Bonds (QVMB). QVMB’s have limitations on how they can be used; most notably, borrowers must apply for a loan within 25 years of discharge from military service, and funds cannot be used for refinancing. ORVET also has access to limited amounts of less restrictive bond monies from which it can also make loans to veterans who apply for a loan after 25 years from date of discharge. It is this money that is being used to finance loans made to Oregon’s veterans that were made eligible as a result of the passage of Measure 70 in 2010. The ORVET program offers financing up to the Federal Housing Finance Authority (FHFA) limit, currently $424,100.

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // AGENCY PROGRAMS

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environmental factors A number of factors that will affect ODVA’s work in the 2017-19 biennium and future sustainability include: Sustainable Funding In the 1980’s, the ODVA Home Loan Program was one of the largest lenders in Oregon, producing more than $7.9 billion in home loans for more than 335,000 veterans in Oregon over the lifetime of the program. While the program was robust, a majority of the agency’s operational costs were solely dependent on the subsidies from this program for funding. In 2010, the agency began incurring losses due to the decline of portfolio home loans combined with veteran support services funding. In the last six years, the program has experienced a $13 million reduction to its Net Position. This funding distribution is not sustainable for the long-term viability of the agency or the home loan program and seeks funding alternatives to correct this course. In 2016, the Legislature unanimously passed House Joint Resolution 202 that referred a ballot measure to dedicate 1.5 percent of net lottery proceeds to better serve Oregon’s veterans. Oregonians showed their strong and bipartisan support of Measure 96 in the November general election with a historic 84 percent voting in favor. With broad understanding of the needs across the veteran community, ODVA made a series of recommendations through the Governor’s Budget process that helps align funding with the underserved veteran community needs in Oregon. Funding recommendations are aimed to solidify existing programs and expand veteran services, and leverage state program resources across health and mental health, education, and housing and homelessness. Increase in the number of veterans filing claims and continuously changing veteran demographics From WWII to the most current conflict in Afghanistan, veterans are seeking benefits, services and resources at unprecedented rates. In the last decade alone, the total dollars being received by Oregon veterans has more than doubled from $924 million (2003) to $2.5 billion (2015). According to the Federal VA’s FY15 Geographic Distribution of VA Expenditures Report, Oregon veterans received nearly $1.3 billion in Compensation and Pension Payments (approximately $106 million per month), nearly $146 million in Education and Readjustment benefit, and more than $1.1 billion in Health Care. Federal VA spending increases align with the increase in Power of Attorney (POAs) and new claims being file in Oregon. In the last 4 years, ODVA has seen an increase of 58% in new claims being filed and a 30% increase in the number of new POA’s. Yet, only three in ten veterans are receiving federal veteran’s benefits, leaving 70% of Oregon veterans who may be eligible for state or federal resources, benefits and services. Continued demand for services and a majority of veterans not yet engaged in services will drive the need for investments in essential support functions across claims, appeals, training and certification of VSO’s, and outreach. ODVA has recently prioritized resources to address the needs and concerns of our rapidly aging veteran demographic and their families. Currently more than 50% of Oregon veterans served during WWII, Korea and Vietnam eras and nationally, more than 12.4 million veterans are age 65 or older. Long-term care needs AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // ENVIRONMENTAL FACTORS

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for older Americans is a national concern. For the foreseeable future, older veterans and their families will increasingly need access to long-term care, adult foster care, home and community based services, as well as access to prosthetics, mental health care, health care, dental and hearing aids, and prescription medication. According to the Oregon Office of Economic Analysis, the population of adults 65 years and older will grow at a pace of 4% annually, and will comprise 22% of all Oregonians by 2040. Today, there are an estimated 326,338 veterans in Oregon whose service ranges from World War II (4.7 %), Korea (7.8%), Vietnam (36.2%), the Gulf War (16.3%), Iraq/Afghanistan (9.6%) and the intervening peacetime operations (25.4%). Nearly three quarters of this population served during a war or major conflict. Nearly 9% of our veterans are women, 8% are minorities and 1% is Native American. Dedicated funding to support programs and resources across the diverse needs of the Oregon veteran population will continue to have great influence on the agencies initiatives and work. Home loan market Interest rates, home prices and general economic conditions can help or hinder ODVA’s home loan program. While interest rates are at historic lows, other issues facing the market play into production levels. Both the Oregon and national housing markets have rebounded from the housing crisis that lingered from the 2007 and 2008 economic conditions. Many property values have reached pre-crash levels. With the improvement in housing prices come other factors affecting the ODVA home loan program. Two main concerns are prevalent in our local markets: the shortage of available inventory and prices rising faster than incomes. In many Oregon communities, available inventory for prospective purchasers is extremely low. Often, there are less than 2 months available inventory to meet the needs of home purchasers. What this means is that if no additional homes were listed for sale, the current inventory would sell out in less than 2 months. This creates a bidding war for homes, escalating values rapidly, often with multiple offers on the same house. Sellers no longer accept offers that are not accompanied by lender pre-approval letters. Additionally, with the rapid increase in housing prices, many homebuyers have been priced out of the market, their incomes no longer meet required levels to afford these houses, and are having a negative effect on loan qualifications. This success of this program is especially critical due to the agency’s dependency on it for core operational funding. Inability to Refinance Loans or Lend to Veterans Discharged More Than 25 Years – In the face of historic mortgage interest rate lows, ODVA is left out of the market due to program limitations of offering a refinance loan opportunity for existing homeowners, including our own portfolio. With these low rates, a significant amount of our customer interaction involves requests for a refinance product. Qualified Veterans Mortgage Bonds (QVMB) are taxAGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // ENVIRONMENTAL FACTORS

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free, state general obligation bonds and may not be used to refinance homes. This is the type of money generally used to fund the majority of veteran Home Loans in Oregon. Currently, federal law limits the use of this money to purchase only loans and does not allow loans to be made to veterans who are 25 years past discharge from military service. Home Values â&#x20AC;&#x201C; As mentioned above, home values have rebounded significantly and have reached pre-crisis levels. This has resulted in a new set of challenges for our program. ODVA continues to reach out to new third-party originator sources to continue to serve the home financing needs of Oregon veterans in areas that we previously had not reached. Sources â&#x20AC;&#x201C; With changes in the lending industry brought about by the housing crisis, ODVA is seeking new and additional sources of third-party originators. Because ODVA does not have retail loan officers in the marketplace, we rely on mortgage bankers and mortgage brokers in our communities to provide a supply of loans for our servicing portfolio. Some changes mandated in the 2010 Dodd-Frank Financial Regulatory Reform Bill have shifted loan originations away from the traditional mortgage broker over to mortgage bankers. The ODVA program historically has received 80% of our loan submissions from mortgage brokers, with 20% coming from mortgage bankers. We are now undergoing a transition to attract more submissions from mortgage bankers, with recent volume splits at 75% brokers/25% bankers. Our emphasis in the biennium is to increase originations with mortgage bankers, while maintaining a vibrant business relationship with our mortgage brokers.

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // ENVIRONMENTAL FACTORS

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Agency short-term plans The key agency initiatives the department will address in its 2017-19 budget are the policy option packages that help implement the department’s five-year strategic plan. Each policy option package supports one or more of the four strategic goals and underlying objectives. The four goals and the policy option packages that support the goal are outlined below. Each policy package is carefully designed to implement the objectives for each of the four strategic goals and improve existing processes or create a new process. Goal:

Target Veteran Services Objective: To serve more veterans and serve them better. Strategies: • Invest in a 21st century veterans’ services system (Policy Option Package 101) • Ensure veterans service offices across Oregon are well-staffed and resourced (Policy Option Package 102) • Focus statewide veteran services on training, claims review, advocacy, and support (Policy Option Package 102) • Better connect veterans to community resources (Policy Option Package 102 and 104)

Goal:

Mobilize Partnerships Objective: To leverage all resources available to veterans Strategies: • Maximize up-front, preventative resources to reduce expensive, back-end safety net systems (Policy Option Package 102 and 104) • Bring the veterans’ lens to key outcome areas in health/wellness and education/economic opportunity (Policy Option Package 104) • Collaborate to create, connect and support statewide networks for veterans and family resources (Policy Option Package 104) • Partner across federal, tribal, state and local governments (Policy Option Package 104) • Engage private, non-profit and philanthropic sectors (Policy Option Package 104)

Goal:

Drive Veteran Engagement Objective: To amplify awareness of resources and build the Oregon veteran brand. Strategies: • Deepen the connection with the veteran community (Policy Option Package 102 and 104) AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // AGENCY INITIATIVES

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• • • Goal:

Promote a positive image of veterans and their families (Policy Option Package 101, 102 and 104) Build the Oregon veterans brand (Policy Option Package 102) Ensure a seamless and positive experience by veterans seeking services (Policy Option Package 101, 102 and 104)

Invigorate Core Operations Objective: To build a better, stronger and more durable department for future generations through our responsible, resourceful and creative management. Strategies: • Reenergize the Veterans’ Home Loan program (Policy Option Package 101 and 103) • Provide the best in care at the Oregon Veterans’ Homes (Policy Option Package 102 and 105) • Support 21st century veterans’ services through integrated information technology (Policy Option Package 101) • Maintain fiscal integrity and sustainability of the Department’s programs (Policy Option Package 101 and 102) • Infuse a culture of service that champions our values and vision through leadership, training, communication and accountability (Policy Option Package 101, 102 and 103)

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // 17-19 SHORT-TERM PLANS // AGENCY INITIATIVES

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criteria for 2017-19 budget development The criteria the Oregon Department of Veterans’ Affairs used for the development of the 2017-19 Governor’s Budget was based on the department’s five-year strategic plan that was developed in early 2014. Each budgeting decision was based on whether the proposal met the department’s vision, mission, goals and objectives. Only proposals that strongly aligned, supported and advanced the strategic plan were considered. Within the context of the required budget development guidelines, each proposal was judged by the following criteria: •

Programmatic Criteria o Will the proposal support one or more of the agencies four goals, objectives and strategies? o Will the initiative lead to better outcomes for veterans? o Will the proposal address critical barriers to accessing benefits and resources?

•

Operational Cost Criteria o Will the proposal increase the capacity or quality of current operations? o Is the proposal responsible management and stewardship of state dollars? o Does the proposal maintain fiscal integrity and sustainability of the department’s programs? o Does the initiative provide proper resources to produce desired outcomes?

•

Overall Criteria: o Will the program leverage other public and private resources? o Can the outcomes of the program be sustained if state funding is reduced or eliminated? o Is this a necessary ask to mitigate risk or advance an initiative? o Does the program develop long-term capacity as well as short-term outcomes?

AGENCY SUMMARY // AGENCY SUMMARY NARRATIVE (107BF02) // CRITERIA FOR 17-19 BUDGET DEVELOPMENT

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // SUMMARY OF 2017-19 BUDGET (AGENCY-WIDE AND PROGRAM UNIT LEVELS) // ORBITS

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AGENCY SUMMARY // PROGRAM PRIORITIZATION FOR 2017-19 // FORM 107BF23

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AGENCY SUMMARY // KEY PERFORMANCE MEASURES

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AGENCY SUMMARY // KEY PERFORMANCE MEASURES

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2015-17 agency organization chart GOVERNOR ADVISORY COMMITTEE ADMINISTRATION 15/17 = 4 POSITIONS (4.0 FTE)

LOAN PROGRAM

FINANCIAL SERVICES

HUMAN RESOURCES

COMMUNICATIONS AND INFORMATION SERVICES

FACILITY AND CONSTRUCTION MANAGEMENT

STATEWIDE VETERAN SERVICES

VETERANSâ&#x20AC;&#x2122; HOMES

15/17 = 10 POSITIONS (10.0 FTE)

15/17 = 2 POSITIONS (2.0 FTE)

15/17 = 17 POSITIONS (17.0 FTE)

15/17 = 7 POSITIONS (7.0 FTE)

15/17 = 32 POSITIONS (31.66 FTE)

15/17 = 5 POSITIONS (5.0 FTE)

Total 2015-17 Agency Positions 88 Positions (87.76 FTE)

AGENCY SUMMARY // 2015-17 ORGANIZATION CHART

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2017-19 agency organization chart

GOVERNOR ADVISORY COMMITTEE ADMINISTRATION 17/19 = 3 POSITIONS (3.0 FTE)

LOAN PROGRAM

FINANCIAL SERVICES

HUMAN RESOURCES

COMMUNICATIONS AND INFORMATION SERVICES

FACILITY AND CONSTRUCTION MANAGEMENT

STATEWIDE VETERAN SERVICES

VETERANSâ&#x20AC;&#x2122; HOMES

17/19 = 11 POSITIONS (11.0 FTE)

17/19 = 10 POSITIONS (10.0 FTE)

17/19 = 2 POSITIONS (2.0 FTE)

17/19 = 13 POSITIONS (13.0 FTE)

17/19 = 7 POSITIONS (7.0 FTE)

17/19 = 45 POSITIONS (44.84 FTE)

17/19 = 5 POSITIONS (5.0 FTE)

Total 2017-19 Agency Positions 96 Positions (95.84 FTE)

Summary of Position Changes New Positions and Funding Realignment

Position/FTE

Shift From

Position/FTE

New

Loan Program (OF)

Ops/Policy Analyst 2 (1.0 FTE)

Home Program (OF)

Statewide Vet Services (LF)

PEM F (1.0 FTE)

New

Statewide Vet Services (LF)

Ops/Policy Analyst 3 (0.24 FTE)

Loan Program (OF)

Statewide Vet Services (LF)

PEM E (0.1 FTE)

New

Statewide Vet Services (LF)

Program Analyst 2 (3.84 FTE)

Loan Program (OF)

Statewide Vet Services (LF)

Office Spec. 2 (1.0 FTE)

New

Home Program (OF)

PEM D (1.0 FTE)

Loan Program (OF)

Statewide Vet Services (LF)

Ops/Policy Analyst 4 (1.0 FTE)

New

Statewide Vet Services (LF)

Admin. Spec 2 (1.0 FTE)

Loan Program (OF)

Statewide Vet Services (LF)

PEM D (1.0 FTE)

New

Statewide Vet Services (LF)

Office Spec 2 (1.0 FTE)

Loan Program (OF)

Statewide Vet Services (LF)

PA Spec. 2 (1.0 FTE)

Loan Program (OF)

Statewide Vet Services (LF)

PA Spec. 1 (2.0 FTE)

AGENCY SUMMARY // 2017-19 ORGANIZATION CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUE FORECAST NARRATIVE Total Estimated Revenues Projected revenues supporting the Oregon Department of Veterans’ Affairs (ODVA) programs during the 2017-2019 biennium are expected to consist of Other Fund, General Fund, Lottery Fund and Federal Fund monies. The vast majority of these revenues will consist of Other Funds with a small portion of program funding coming from State General Funds and Federal Funds. The Veterans’ Loan Program is expected to derive 100% of its revenue from Other Fund sources. The Veterans’ Home Program is expected to derive 100% of its funding for operations from Other Funds, but would also utilize both Other Funds and Federal Funds for any significant construction or improvements needed at the two existing Oregon Veterans Homes. The Veteran Services Program revenue sources are expected to consist of a combination of Other Fund, Lottery Fund and General Fund monies with the possibility of some Federal Funds revenue arising from legislatively approved federal grant requests (eg. Veterans’ Rural Transportation Grant). Lottery Funds for ODVA in the 2017-2019 biennium will be a new revenue source. The 2016 Legislative Assembly passed House Joint Resolution 202 (HJR 202) that referred a ballot measure to amend the Oregon Constitution to voters for the November 2016 General Election. In November, 84% of voters approved passage of Ballot Measure 96, which requires 1.5% of the net State Lottery proceeds to be deposited into a veterans services fund to provide services for the benefit of veterans. For the 2017-2019 biennium, 1.5% of the net lottery proceeds is currently projected to be approximately $18.5 million. Major Policy Issue Monies from the Veterans’ Home Loan Program have been used for many years to fund both the Home Loan Program and to provide significant support to the Veteran Services Program. At one time the Home Loan Program revenues were considered sufficient to provide this level of support for Veteran Service activities; however, this level of support is no longer feasible. The Home Loan Program has lost money the past six consecutive years because it is significantly subsidizing Veteran Services, and it will continue losing money for the foreseeable future unless the unsustainable subsidy level is addressed. The diversion of resources from the Home Loan Program to the Veteran Services Program is the major contributor to the ongoing financial losses being sustained by the Home Loan Program. If the policy goals of the State are to have both a financially stable, sustainable and well-secured Loan Program, and to have a sustainable Veteran Services Program, then the level of monies diverted from the Home Loan Program to the Veteran Services Program will need to be significantly reduced or eliminated. Primary Other Fund Revenue Sources ODVA has a number of individual Other Fund revenue sources, but the four largest and most significant revenue sources are: REVENUES // REVENUE FORECAST NARRATIVE

2017-2019 LEGISLATIVELY ADOPTED BUDGET

1. Veteran Loan Repayments (supports the Veterans’ Home Loan Program) These revenues consist of payments received by ODVA from loan and contract borrowers repaying their home loans. There are no required matching funds involved and the revenues are used for the support of the Veterans’ Home Loan program. Article XI-A of the Oregon Constitution, applicable federal tax laws, and bond-related covenants, place restrictions on the use of these Department’s funds and do not permit these monies to be used for general government purposes. The Oregon War Veterans’ Fund, a constitutionally-dedicated fund, receives nearly all of the Department’s revenues except for General Fund monies and the Veterans’ Home revenues. Article XI-A of the Oregon Constitution permits monies held in the Oregon War Veterans’ Fund, subject to applicable federal tax and bond covenant restrictions, to be used for the following purposes: •

Making home loans to veterans

•

Payment of debt service on State of Oregon Veterans’ Bonds

•

Aiding war veterans’ organizations in connection with their programs of service to war veterans

•

Training service officers appointed by the counties to give aid, as provided by law, to veterans and their dependents and survivors

•

Aiding the counties in connection with programs of service to war veterans

•

The duties of the Director of Veterans’ Affairs as conservator of the estates of Federal VA beneficiaries

•

The duties of the Director of Veterans’ Affairs in providing services to war veterans, their dependents and survivors

•

The payment of the Department’s administrative expenses

The major issues involved with this revenue source are the projected levels of unemployment (and underemployment) in the State, household income levels, the availability of housing stock, real estate values and borrowers that have negative equity in their homes as a result of the Great Recession. These trends have improved resulting in lower levels of delinquencies, foreclosures and write-offs in ODVA’s loan portfolio compared to recent years. Projected revenues take into account a number of factors, including: the size of the loan portfolio, anticipated prepayment levels, loans originated, delinquent and non-performing loan levels. These revenues are used to support the Veterans’ Home Loan Program. The projected trend on this revenue source through 2021 is expected to be generally flat or modestly increasing compared to current levels. 2. Dedicated Fund General Obligation Bond Proceeds (supports the Veterans’ Home Loan Program) General obligation bond proceeds as a revenue source consists of monies received by ODVA from its sale of State of Oregon, general obligation bonds (and any interim draws from short-term revolving lines of credit as appropriate) to provide funding for making below-market rate veteran home loans. There are no required matching funds involved and the proceeds are used to support the Veterans’ Home Loan program. The general limits on the use of these funds REVENUES // REVENUE FORECAST NARRATIVE

2017-2019 LEGISLATIVELY ADOPTED BUDGET

include making home loans to veterans, payment of debt service on State of Oregon Veterans’ Bonds, and selected ancillary costs associated with bond issuance. The major issues with this revenue source are the impact on demand for veteran home loans due to economic uncertainties, employment, availability of housing stock, industry accepted underwriting criteria and mortgage-related federal regulations. Loans funded by ODVA have increased in recent years and future loan demand will directly affect the dollar amount of bonds issued. Projected revenues take into account a number of factors, including: projected loan demand, amount of bonds that can be refunded, size and number of draws from the revolving lines of credit, and market interest rates. These revenues are used to support the Veterans’ Home Loan Program. The projected trend on this revenue source projected through 2021 is expected to be generally flat to modestly higher compared to current levels. 3. Charges for Services (supports the Veterans’ Home Loan Program, the Veterans’ Home Program and the Veteran Services Program) Charges for services as a revenue source consists of monies received by ODVA from individuals or entities in exchange for specific services provided. For example, the Veterans’ Loan Program may receive monies for processing a transfer of ownership of a property, processing of an NSF check from a borrower, or monies from a loan origination fee charged to a borrower. The Veterans’ Home Program may receive monies from private parties, Medicaid, Medicare and the United States Department of Veterans’ Affairs for providing daily skilled nursing care. The Veteran Services Program may receive monies from funds belonging to protected persons, who are deemed by the court to be incapable of managing their own money, for providing conservatorship services or financial management services. There are no required matching fund requirements on this revenue source. The major issues with this revenue source are census levels and census mix at the Veterans’ Homes, and the impact on long-term care of federal and state health care initiatives on the Veterans’ Home Program. The revenues received are used to support their respective program area, as appropriate. The projected trend for this revenue source through 2021 is expected to be generally flat or modestly higher for the Veterans’ Loan Program, higher for the Veterans’ Home Program (due to a higher census at the Lebanon Veterans’ Home) and modestly higher for the Veterans Services Program when compared to current levels.

4. Interest and Investment Income (supports the Veterans’ Home Loan and Veterans’ Home Programs) Interest and investment income as a revenue source consists of monies received from invested program monies. There are no required matching funds. Earnings from the Oregon War Veterans’ Fund are used to support the Veterans’ Home Loan program and earnings from the Oregon Veterans’ Home

REVENUES // REVENUE FORECAST NARRATIVE

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Account are used to support the Veterans’ Home program. The Office of the Oregon State Treasury manages these investments and earnings vary, depending on the type of investments and the rate of return. The major issues relating to this revenue source are the external interest rate environment and federal programs or policies designed to influence these rates. Projected revenues take into account a number of factors, including: projected interest rate levels, the amount of monies that can be invested and the length of time monies can be invested. These revenues are used to support both the Veterans’ Home Loan Program and the Veterans’ Home Program as appropriate. The projected trend on this revenue source projected out through 2021 is expected to be modestly higher than in recent years because the Federal Reserve has indicated it anticipates increasing short-term interest rates over the next several years.

Potential Fee Increase Impacting the Veterans’ Services Program (Conservatorship) ODVA will be evaluating a potential increase or restructuring of the fees it charges to manage the finances of protected persons in the Conservatorship Program. The current fee is 7% of the protected person’s income for ordinary services provided. Revenue from existing fees does not fully cover the costs of providing these services.

REVENUES // REVENUE FORECAST NARRATIVE

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUES // DETAIL OF LOTTERY FUNDS, OTHER FUNDS, AND FEDERAL FUNDS REVENUE (BPR012)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUES // DETAIL OF LOTTERY FUNDS, OTHER FUNDS, AND FEDERAL FUNDS REVENUE (BPR012)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUES // DETAIL OF LOTTERY FUNDS, OTHER FUNDS, AND FEDERAL FUNDS REVENUE (BPR012)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUES // DETAIL OF LOTTERY FUNDS, OTHER FUNDS, AND FEDERAL FUNDS REVENUE (BPR012)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUES // DETAIL OF LOTTERY FUNDS, OTHER FUNDS, AND FEDERAL FUNDS REVENUE (BPR012)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUES // DETAIL OF LOTTERY FUNDS, OTHER FUNDS, AND FEDERAL FUNDS REVENUE (BPR012)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

REVENUES // DETAIL OF LOTTERY FUNDS, OTHER FUNDS, AND FEDERAL FUNDS REVENUE (BPR012)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

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PROGRAM UNITS // VETERAN SERVICES // 15-17 ORGANIZATION CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

2015-17 VETERAN SERVICES PROGRAM ORGANIZATION CHART

ADMINISTRATION

VETERAN SERVICES

15/17 = 5 POSITIONS (4.71 FTE)

STATEWIDE VETERAN SERVICES (SALEM)

STATEWIDE VETERAN SERVICES (PORTLAND)

15/17 = 8 POSITIONS (7.0 FTE)

15/17 = 12 POSITIONS (11.5 FTE)

CONSERVATORSHIP

15/17 = 7 POSITIONS (8.45 FTE)

Total 2015-17 Veterans Services Program Positions 32 Positions (31.66 FTE)

PROGRAM UNITS // VETERAN SERVICES // 15-17 ORGANIZATION CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

2017-19 veteran services program organization chart

ADMINISTRATION

6 Position Shifts (6.05 FTE) PEM E (0.55 FTE) AS 2 (0.5 FTE) Ops/Policy Analyst 4 (1.0 FTE) PEM D (1.0 FTE) PA 2 (1.0 FTE) 2 PA 1 (2.0 FTE) Package 102

VETERAN SERVICES

17/19 =11 POSITIONS (11.0 FTE)

Total 2017-19 Veteran Services Program Positions 45 Positions (44.84 FTE)

STATEWIDE VETERAN SERVICES (SALEM)

STATEWIDE VETERAN SERVICES (PORTLAND)

17/19 = 10 POSITIONS (9.92 FTE)

17/19 = 13 POSITIONS (13.0 FTE)

0 Position Shifts (1.0 FTE) OS2 (1.0 FTE) Package 102

0 Position Shift (0.5 FTE) PSR 2 (0.5 FTE) Package 102

2 New Positions (2.0 FTE) Program Analyst 2 (1.92 FTE)

1 New Position (1.0 FTE) OS2 (1.0 FTE)

CONSERVATORSHIP

0 New Positions (0.24 FTE) 2 Ops/Policy 3 (0.24 FTE) Package 102

17/19 = 11 POSITIONS (10.92 FTE)

4 Position Shifts PEM F AS 2 (-0.5 FTE) PEM E (-0.45 FTE) PSR 2 (-0.5 FTE) 4 New Positions (3.92 FTE) Program Analyst 2 (1.0 FTE) AS 2 (1.0 FTE) Package 102 Program Analyst 2 (1.92 FTE) PROGRAM UNITS // VETERAN SERVICES // 17-19 ORGANIZATION CHART

2017-2019 LEGISLATIVELY ADOPTED BUDGET

VETERAN SERVICES EXECUTIVE SUMMARY Focus Area:

Thriving Statewide Economy

Program Contact:

Mitch Sparks / 503-373-2090

Veterans' Services Claims/Counseling & Other Services General Fund

Other Funds

Federal Funds

Lottery Funds

All Claims Submitted 90,000

$30,000,000

70,000 $20,000,000

60,000 50,000

$15,000,000

40,000

$10,000,000

30,000 $5,000,000

20,000

10,000 2005-07

2007-09

2009-11

2011-13

2013-15

2015-17

2017-19

2019-21

Number of Claims Submitted

80,000

$25,000,000

Total Expenditures - All Funds

Note 1: Lottery Funds were a result of voter-passage of Measure 96 in November 2016.

Note 2: The United States Department of Veterans Affairs announced on October 13, 2009 that hairy cell Leukemia, B-Cell Leukemia, Parkinsonâ&#x20AC;&#x2122;s disease and ischemic heart disease were being added to the presumptive list of diseases, recognized by the VA, to be related to exposure to herbicides during Vietnam service. In addition to the new presumptive conditions the court readdressed Nehmer and determined that additional compensation could be awarded on certain Agent Orange ratings. These announcements caused an influx of claims beginning from the end of 2009 to 2012 from Oregon Vietnam veterans and Vietnam veterans nationwide. These claims peaked in 2011 and claims submission returned to normal rates in 2012.

2021-23

PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Program Overview The Veteran Services Program is responsible for providing advocacy and benefits to veterans, their dependents, and survivors. The program provides benefits counseling, claims and appellate representation, certification and training for counties and national service organizations, conservatorship services, emergency financial assistance, and other service delivery partnerships across the state. The division is the front line for all veteran benefits, ensuring that veterans obtain all the benefits to which they are entitled as a result of their military service.

Program Funding Request The budget proposal for the next three biennia is as follows: Biennium 2017-2019 2019-2021 2021-2023

General Funds $ 2,000,000 $ 2,076,000 $ 2,161,116

$ $ $

Lottery Funds 17,698,065 18,370,591 19,123,786

Other Funds $ 105,139 $ $ -

Federal Funds $ $ $

1 -

Total Funds $ 19,803,205 $ 20,446,591 $ 21,284,902

Other Funds revenue is primarily generated from fees paid by conservatorship clients for services rendered by the Department. The 2017-19 Legislatively Adopted Budget (LAB) proposal was developed in conjunction with the department’s strategic plan, which emphasizes coordination and partnership with federal, tribal, state and local agencies as well as community partners. Program Description The Veteran Services Program encompasses six major program areas: Statewide Veteran Services - The United States Department of Veterans Affairs (Federal VA) benefit system is a legal system. In order to qualify for benefits, veterans must file a claim with the United States proving they are eligible for these benefits through the submission of legal, military and medical evidence. ODVA employs federally accredited and state certified veteran service officers (VSO’s) who are subject matter experts in Federal VA law (Chapter 38 United States Code and Chapter 38 Code of Federal Regulations) and are allowed to practice by taking power of attorney for veterans seeking benefits. These VSO’s PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

represent veterans, their dependents and survivors before the Federal VA in their claims and appeals. With its county veteran service officer and national service officer partners, ODVA provides claims and counseling advocacy and representation to Oregon’s 326,338 veterans, resulting in more than 19,750 new claims and more than 79,000 total claims filed during fiscal years 2015 and 2016. Currently, ODVA holds power of attorney for nearly 101,000 Oregon veterans. ODVA’s Portland office submits all claims under ODVA’s power of attorney for 35 counties and ODVA’s VSO’s to the Federal VA. This office inputs, catalogs, provides quality assurance and liaisons with the Federal VA on all claims, as well as represents veterans during various stages of appeal hearings. The Salem office is responsible for assuring veterans have access to claims representation. When a county elects not to fund a county veteran service office or has a temporary vacancy, ODVA must provide that service. As ODVA concentrates its efforts on providing services on a statewide basis, the department will work with the counties to focus on direct claims. ODVA is responsible for the training, certification, and accreditation of all county and state veteran service officers. The agency holds initial onsite training for all new veteran service officers, one annual conference and will be developing online learning. Training is conducted on the latest Federal VA legal, medical and process information. ODVA trains and accredits veteran service officers (VSO) to file defensible claims for disability, benefit and pension compensation on behalf of veterans. Claims are filed through ODVA’s power of attorney (POA) or a national service organization’s POA, as the claims are legal documents reviewed and adjudicated by the U.S. Department of Veterans’ Affairs. It takes approximately 18 months for a new VSO to achieve accreditation. VSO’s must understand the intricacies of veteran status, types of military discharges, privacy laws under HIPAA, Federal VA organization and structure, and state and local information resources available to veterans. One of the more daunting hurdles for new VSO’s is learning to interpret and manage existing claims with complex case files and long histories. VSO’s also need to be trained in laws and procedures specific to the appeals process. ODVA provides 40 hours of intensive one-on-one class room training for new VSO’s to go over this information initially, along with mock interviews, full practice claims, and training on the automated case management data system, VetraSpec. After this initial intensive introduction, the VSO returns to their home county, and begins interviewing veterans and compiling claims under remote supervision; for the next eighteen months, ODVA provides intensive coaching via phone and email, and will arrange for a site visit to the Portland claims office and the Federal VA, and will also periodically go to a CVSO’s county to work with them in their home environment. Fully-accredited VSO’s need continuing education to keep pace with new procedures and directives coming from the Federal VA. Training needs for fullyaccredited VSO’s include developing curricula and hosting an annual conference with specific workshop tracks and general sessions. Advanced training includes a deeper dive into the Code of Federal Regulation Title 38 governing veterans’ benefits, analysis of federal claims and appeals decisions, legal research, and outreach best practices. PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Cost drivers for the program are based on the demand for services, which is anticipated to continue to increase in the next 20 years as the more than 30,000 Oregonians who have served in Iraq and Afghanistan seek their benefits and as the 120,000 Vietnam veterans in Oregon retire and begin seeking benefits for their combat wounds for the first time in more than 40 years. County Veteran Service Officers Program (CVSO’s) – ODVA’s statewide partnership with counties began when the legislature appropriated money to aid counties in an effort to promote services to veterans on a local level. It is an effective network of trained county veteran service officer (CVSO) in 35 of the 36 counties. ODVA anticipates Polk county standing up a County Veteran Service Office in January 2017. CVSO’s are not supervised by ODVA; however, the agency provides training, certification, accreditation, counsel, and outreach to the CVSO’s. The vast majority of CVSO appeal cases also are handled by the Statewide Veteran Service office in Portland. CVSO’s perform the same function as state VSO’s, ensuring veterans have access to benefits across the state. Cost drivers for the CVSO program are dependent on the number of counties opting to provide veteran benefit services in their county. The CVSO program is funded with State pass-through monies provided to ODVA. ODVA does not receive any monies to administer this program. National Service Organizations (NSO) – ODVA partners with national veteran service organizations in Oregon. National veteran service officers provide the same veteran benefit and claims representation as state and county veteran service officers. Currently, the Disabled American Veterans, Veterans of Foreign Wars, Military Order of the Purple Heart, and National Association of Black Veterans participate in this funding. Cost drivers for the program are determined by the number of organizations opting to provide benefit and claims representation to their member base. ODVA does not receive any monies to administer this program. Veterans’ Emergency Financial Assistance Program - Emergency Aid offers a one-time grant to veterans who have emergency needs. Examples include a veteran whose car needs repair and without this repair cannot work or a homeless veteran who obtains a job, but needs help with rent and deposits for a place to stay. The key is sustainability; the veteran must be able to sustain their finances after receiving the bridge funding via this grant. The department receives applications for emergency assistance statewide through its network with the county veterans’ service officers, local veterans’ employment representatives, disabled veterans’ outreach program representatives, tribal veterans’ representatives and veterans’ service organizations. As of June 30, 2015, approximately 1,754 veterans and their families have been assisted through use of this program. This program routinely assists veterans with a one-time grant to help relieve health and welfare emergencies, such as rent, mortgages, utilities, medical care, food, homelessness prevention and other needs to help a veteran maintain the basic necessities of life.

PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

This program has a demand for services that exceeds funding. In 2015, total grant applications received were 278 while funding allowed for only 129 of those applications to be granted. Partnerships - ODVA has an incredibly broad mission in serving a diverse veterans’ community in key areas of health, education and economic opportunity. Today’s veteran services system has been challenged in the last decade to keep up with the unprecedented demand for services from four generations of veterans across five major wars. The combined breadth of the veterans’ population served and their diverse needs requires a cohesive long-term strategic approach to the delivery of veteran services, which includes statewide partnerships. ODVA partners with other key state and federal agencies and leverages existing services for our veterans’ health, education and economic opportunity.

Aging Veteran Services The Aging Veteran Services Division is a new program area within the agency that was established to address the needs and concerns of our rapidly aging veteran demographic and their families. Currently more than 50% of Oregon veterans served during WWII, Korea and Vietnam eras and nationally, more than 12.4 million veterans are age 65 or older. Long-term care needs for older Americans is a national concern. For the foreseeable future, older veterans and their families will increasingly need access to long-term care, adult foster care, home and community based services, as well as access to prosthetics, mental health care, health care, dental and hearing aids, and prescription medication. According to the Oregon Office of Economic Analysis, the population of adults 65 years and older will grow at a pace of 4% annually, and will comprise 22% of all Oregonians by 2040. This division strengthens collaborate with all state, federal and community partners to ensure our veterans, their families, and caregivers receive the best advocacy and services available as they age. The Aging Veteran Services Division is the front line for connecting all aging veteran related benefits and resources. Currently, the division incorporates the operational management of the two Oregon Veterans’ Homes and Conservatorship program. Conservatorship - When veterans are deemed to be incompetent by the court or the Federal VA to manage their own finances, the court or the Federal VA may appoint ODVA to provide conservatorship or representative payee services, which include managing all assets for the veteran as fiduciary. In 2013, ODVA began representing new clients as a Representative Payee, in which the Agency acts in a limited capacity to pay the bills and act as an advocate for these veterans.

PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Cost drivers for this program vary, depending on the number of conservatorship and representative payee clients. Although this program charges a fee for services, the rate is much lower than the cost for similar services provided in the private sector and does not completely pay for the administrative costs associated with this highly specialized work. Program Justification and Link to Focus Areas ODVAâ&#x20AC;&#x2122;s veteran services programs impacts across multiple State focus areas, but particularly Healthy/Safe Oregonians and Thriving State Economy. As demand for veteran services increase, so does the amount of federal dollars that are delivered back into Oregonâ&#x20AC;&#x2122;s economy. The Federal VA dollars that returned to the state were approximately $1.28 billion in direct cash benefits to veterans in 2015, and more than $2.5 billion in total Federal VA benefits across disability compensation, healthcare and education. 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. Federal VA health care ensures veterans will not need to use state resources, like the Oregon Health Plan. Education benefits increases the number of college graduates and vocationally trained people in the work force. Severely disabled veterans receive significant compensation, which ensures they will not need unemployment, food stamps, Medicaid or other state programs. Although Federal VA dollars do not go directly to the state in the form of revenue, they are just as an important economic factor in communities where veterans, their dependents and survivors use these benefits to buy goods and services locally.

PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

New Power of Attorneys

Program Performance

12,000

New Power of Attorneys New POA’s for FY 2015-16 totaled 11,786. This is a 26% percent increase over FY 2014-15 in new POA’s across Oregon. This number is significant since it is a direct reflection of the outreach efforts and increase of veterans and family members seeking veteran related benefit services through County, State Veteran Service Officers working under the ODVA’s POA.

10,000 8,000 6,000 4,000 2,000 0 FY 2012-13

FY 2013-14

FY 2014-15

FY 2015-16

New Claims Filed New Claims Filed The increase in new claims filed for 2015-2016 is in direct proportion of the increase of new Power of Attorney’s filed for the same time period. As more Oregon veterans and family members seek services from ODVA we are accomplishing our goal of serving more veterans and serving them better.

14,000 12,000 10,000 8,000 6,000 4,000 2,000 FY 2012-13

FY 2013-14

FY 2014-15

FY 2015-16

PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Federal Dollars Total VA Expenditure Compensation and Pension benefits for Oregon Veterans in FY 2015 was 1.28 billion dollars. These federal dollars are not only a financial benefit to the state but it also means that federal dollars rather that state safety net dollars are used to help veterans and their families.

$3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000

2013 2014

$1,000,000,000

2015

$500,000,000 $Disability Compensation and Pension

Healthcare

Education

Total VA Expenditures

Enabling Legislation/Program Authorization The programs included in Statewide Veteran Services are established in ORS Chapters 406 and 408. Authority for veteransâ&#x20AC;&#x2122; services also is found in 38 United State Code Chapter 59. Funding Streams The revenue source for:

PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

• • •

County and National Service Organizations program and Service Delivery Partnerships is Lottery Funds; Statewide Veteran Services is General Funds and Lottery Funds; and Conservatorship program is General Funds, Lottery Funds and Other Funds. Conservatorship Other Fund revenues include fees charged on the income of persons under conservatorship.

In the 2017-19 Legislatively Adopted Budget, approximately 49% of the State support (General Funds and Lottery Funds) received by ODVA for Veteran Services were for direct pass-through to the county and national service organizations program and service delivery partnerships. 2017-19 Funding Proposal The 2017-19 Legislatively Adopted Budget includes the Lottery Fund monies dedicated by Measure 96 and seeks to improve and maximize services to veterans statewide.

PROGRAM UNITS // VETERAN SERVICES // EXECUTIVE SUMMARY (107BF02)

2017-2019 LEGISLATIVELY ADOPTED BUDGET

2017-19 Legislatively Adopted Budget VETERAN SERVICES program expenditures

Lottery Funds

$2,092,194

Service Delivery Partnerships

Statewide Veteran Services

35%

General Funds Lottery Funds Federal Funds Total

$1,923,727 $7,022,307 $ 500,000 $9,446,034

Pass-Through to Counties and National Service Orgs

General Funds Lottery Funds Total

$ 4,714,091 $ 3,188,534 $ 7,902,625

41%

Aging Veteran Services/ Conservatorship

15%

General Funds Lottery Funds Other Funds Federal Funds TOTAL FUNDS

General Funds Lottery Funds Other Funds Total

$ 725,458 $ 2,552,990 $ 107,623 $ 3,386,071

$ 7,363,276 $ 14,856,025 $ 107,623 $ 500,000 $22,826,924

PROGRAM UNITS // VETERAN SERVICES // NARRATIVE (107BF02)

100

2017-2019 LEGISLATIVELY ADOPTED BUDGET

veteran SERVICES PROGRAM historical operating budget comparison $25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

2007-09 LAB

2009-11 LAB

2011-13 LAB

2013-15 LAB

2015-17 LAB

2017-19 LAB

Federal Fund

$500,000

Lottery Fund

$14,856,025

General Fund

$6,034,088

$6,168,915

$6,469,659

$8,945,967

$10,129,411

$7,363,276

Other Fund

$2,067,605

$2,628,884

$2,170,196

$865,498

$873,803

$107,623

PROGRAM UNITS // VETERAN SERVICES // NARRATIVE (107BF02)

101

2017-2019 LEGISLATIVELY ADOPTED BUDGET

VETERAN SERVICES PROGRAM NARRATIVE Veteran Services Program Environmental Factors and Trends Increase in the number of veterans filing claims and continuously changing veteran demographics From WWII to the most current conflict in Afghanistan, veterans are seeking benefits, services and resources at unprecedented rates. Since the beginning of the Iraq and Afghanistan conflicts, the total dollars being received by Oregon veterans has more than doubled from $924 million (2003) to $2.5 billion (2015). According to the Federal VA’s FY15 Geographic Distribution of VA Expenditures Report, Oregon veterans received more than $1.28 billion in Compensation and Pension Payments (approximately $106 million per month), $145 million in Education and Readjustment benefits, and more than $1.1 billion in Health Care. In the last decade, veteran benefits and compensation received by veterans in Oregon has more than doubled. More veterans are filing claims, seeking and receiving healthcare and using their earned education benefits, however the Federal VA’s system has experienced a significant bottleneck in the rating and awarding these benefits. Oregon Veteran Demographics and Trends Today, there are an estimated 326,338 veterans in Oregon whose service ranges from World War II (4.7%), Korea (7.8%), Vietnam (36.2%), the Gulf War (16.3%), Iraq/Afghanistan (9.6%) and the intervening peacetime operations (25.4%). Nearly three quarters of this population served during a war or major conflict. Nearly 9% of our veterans are women, 8% are minorities and 1% is Native American. For our veterans’ population, 50% are over the age of 65, reflecting the growing aging WWII, Korean War and Vietnam generations, when a large percentage of citizens served in war efforts. Demographics for the younger generation are much lower with only 7.5% of 18-34 year olds obtaining a veteran status. Fewer people are serving in the military today, but those who do, are having to endure multiple in-theater deployments overseas. Seven out of ten veterans are not accessing or utilizing federal veterans benefits One of ODVA’s key strategic goals is to target veteran services in order to serve more veterans and serve them better. Only three in ten veterans are receiving federal veteran’s benefits; therefore, 70% of Oregon veterans are not receiving these federal benefits such as education, health care, disability compensation or pension benefits. Increasing the number of veterans who receive the benefits they have earned is a challenging undertaking. ODVA is approaching this issue on three fronts. First, by investing in a 21st century veteran services system, ensuring veteran services offices are well-staffed and resourced, and focusing ODVA statewide veteran services on training, claims review, advocacy and support. Second, ODVA’s goal is to develop intentional and strategic relationships with state, local, federal and tribal agencies, non-profits and others across systems to increase veterans’ access and utilization of existing resources. Finally, ODVA’s goal is to drive veteran engagement through a robust and sustainable outreach to veterans and the veteran community.

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Program Details The Veteran Services Program is responsible for providing advocacy and benefits to veterans, their dependents, and survivors. The program provides benefits counseling, claims and appellate representation, certification and training for counties and national service organizations, conservatorship and representative payee services, emergency financial assistance, and other service delivery partnerships across the state. The division is the front line for all veteran benefits, ensuring that veterans obtain all the benefits to which they are entitled as a result of their military service. Statewide Veteran Services Caseload: ODVA, in partnership with the County Veteran Service Offices provides claims and counseling advocacy and representation to Oregon’s 326,000 veterans, resulting in more than 12,200 new claims on their behalf during fiscal year 2015. In that same time, as part of appeals work, 1,322 Notice of Disagreements (NOD), and 486 Form 9’s (continuation of the NOD process) were filed for veterans through ODVA’s Statewide Veteran Service offices. Currently, ODVA holds power of attorney for nearly 101,000 Oregon veterans. The Statewide Veteran Service office in Salem presently handles direct claims for veterans for Marion and Polk Counties, and sensitive claims on a statewide basis. The office also works on a few statewide special advocacy veteran issues in a limited capacity. These statewide issues include veterans in justice involved situations (corrections, veteran’s courts, etc.), LGBTQ and women veterans issues. The first goal is that the office only handle claims that are sensitive, high-profile or very challenging and focus the counties on local veteran claims. A second goal is to increase the breadth and depth of statewide direct service veteran’s issues the office will handle. In addition to working active claims and appeals cases, state VSO’s from the Salem office provide county veteran services when a county elects not to fund a county veteran service office or has a temporary vacancy. Statewide Veteran Services is also responsible for the training, certification, and accreditation of all county and state veteran service officers. The agency holds initial onsite training for all new veteran service officers, one annual conference and will be developing online learning. Training is conducted on the latest Federal VA legal, medical and process information. Customers: This division has the responsibility to provide services to more than 326,000 veterans in Oregon, their family members who may qualify for benefits, as well as the county and national veteran service offices and service provider organizations across Oregon. Other customers include federal, state, local and non-profit organizations who offer benefits and services (employment, homelessness resources, mental health, etc.). Source of Funding: Lottery Fund and General Fund dollars pay for most direct Veteran Services Program personnel cost and a portion of the program’s services and supplies. The remainder of direct services and supplies and indirect personnel costs are funded through Other Fund Loan Program dollars. Expenditures: $7,902,625 ($3,188,534 Lottery Funds and $4,714,091 General Funds).

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Positions and FTE: 2017-19 Legislatively Adopted Budget funds 28 Statewide Veteran Services positions (28.0 FTE) and 5 Administration positions (5.0 FTE) related to Public Information and Policy, whose primary duties are veteran-service related.

County Veteran Service Officers (CVSOâ&#x20AC;&#x2122;s) Program Workload: ODVA provides support to the County Veteran Service Offices (CVSO) through training, guidance, claims review and appellate representation; advocacy for our veterans, dependents and /or survivors in pursuit of benefits; and interoperability with the U.S. Department of Veterans Portland Regional Office. ODVA provides general fund pass through dollars to counties to support enhancement and expansion of CVSO operations. The administration of these monies requires counties that provide veterans services to file an annual application to receive funding and then submit quarterly reports of activities and expenditures in order to receive payment. ODVA also administers a Highly Rural Transportation Grant from the Federal VA â&#x20AC;&#x201C; of which 10 counties receive grants up to $50,000 annually for transportation of veterans to medical appointments. Customers: County Veteran Service Offices. Source of Funding: General Funds, Lottery Funds and Federal Funds. Expenditures: $9,446,034 ($1,805,571 General Funds, $6,904,151 Lottery Funds and $500,000 Federal Funds). Positions and FTE: 2017-19 Legislatively Adopted Budget funds 0 positions (0 FTE).

National Service Organizations (NSO) Workload: The NSOs submit an annual request for funding to ODVA and this is reviewed and processed by the department for approval and budgeting. The monies are then distributed on a quarterly basis following the review and processing of NSO quarterly reports of expenditure and activities. Customers: National Service Organizations. Source of Funding: General Funds and Lottery Funds. Expenditures: $236,312 ($118,156 General Funds and $118,156 Lottery Funds).

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Positions and FTE: 2017-19 Legislatively Adopted Budget level funds 0 positions (0 FTE).

Partnerships Workload: The Partnership efforts would include leveraging existing state programs to expand and enhance direct service to veterans, maximize upfront, preventative resources to reduce expensive, back-end safety net systems and bring the veteransâ&#x20AC;&#x2122; lens to key state outcome areas. Partnerships funded for the 2017-19 biennium include: Campus Veteran Resource Grant Program, Community Grant Program and a Suicide Prevention Hotline. Customers: State and Non-profit organizations. Source of Funding: Lottery Funds. Expenditures: $2,092,194 Lottery Funds. Positions and FTE: 2017-19 Legislatively Adopted Budget level funds 1 position (0.92 FTE) to administer the Campus Veteran Resource Grant Program.

Aging Veteran Services / Conservatorship Workload: As of June 30, 2016 ODVA had 140 Conservatorship clients and 131 Representative Payee clients in the Conservatorship program. Customers: Program customers include: veterans, Federal VA, courts, guardians, case managers, family members, residential care facilities, foster homes, nursing homes, doctors, pharmacies, hospitals, utilities companies, attorneys, insurance companies, accountants, Defense Finance and Accounting Service, Social Security Administration, realtors, state, county, and federal agencies, Department of Justice, probation officers, police departments, investigators, vendors such as rental companies, yard maintenance, veterinarian offices, personal assistant escorts, travel agents, airlines, hotels, etc. Source of Funding: Lottery Funds, General Funds and Other Funds. Other Funds are generated by fees charge to client accounts under Conservatorship and Representative Payee Program. Expenditures: $2,552,990 Lottery Funds, $725,458 General Funds and $107,623 Other Funds.

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Positions and FTE: 2017-19 Legislatively Adopted Budget funds 11 positions (10.92 FTE).

Emergency Financial Assistance Program Workload: In fiscal year 2016, total grant applications received were 202 while funding allowed for only 55 of those applications to be granted. Customers: Veterans, private and public institutions where a veteran may hold a debt or need to make payments to receive a service. Source of Funding: N/A Expenditures: $103,700 General Funds. Positions and FTE: 2017-19 Legislatively Adopted Budget funded 0 positions (0 FTE).

Revenue Sources/Proposed Revenue Changes Revenue Sources - The base budget revenue source for the Veteran Services Program is from General Funds and Lottery Funds, with the exception of the conservatorship program that includes Lottery Funds, General Funds and Other Funds. Conservatorship Other Fund revenues are generated from fees charged on the income of individuals served by the program. There are no matching funds available for use in the Veteransâ&#x20AC;&#x2122; Services programs. Basis for Estimates - The basis for the estimates of Other Fund revenues generated from fees in the conservatorship program is historical information relating to veteransâ&#x20AC;&#x2122; assets under management, projected income and the expected number of protected persons served.

Proposed Legislation SB 80: Honor and Serve Oregon Tribal Veterans

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In recognition and honor of the service and sacrifice of Native American veterans, statutorily authorize ODVA to aid Oregon Indian Tribes in connection with their programs of service to veterans and aid assist the Tribes with accreditation of Tribal Veteran Service Representatives by the United States Department of Veterans Affairs.

SB 81: Veterans Health Care The Director of Veterans Affairs, in recognition and honor of the service and sacrifice of Oregon veterans and the challenges and barriers to accessing and utilizing health care and mental health care from the United Stated Department of Veterans Affairs, state, and local community resources, shall provide statewide expertise, advocacy, and assistance in navigating the complex health care systems for these veterans.

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VETERAN SERVICES POLICY OPTION PACKAGE 101 21st Century Service Delivery – Package 101 (Agency priority # 1) Purpose One of ODVA’s five-year goals and its objectives to better serve Oregon veterans is to “invigorate core operations” and “build a better, stronger and more durable department for future generations.” Using smart technology to better protect and serve veterans, ODVA needs to: • •

replace outdated and inadequate applications with effective, efficient platforms designed for modern day needs; and improve services laying a service foundation for the 21st century.

This policy option package invigorates ODVA core operations by modernizing service delivery for two key program areas: Conservatorship and Home Loans. Conservatorship Program Over the last five years, ODVA has lost more than 100 years of programming and application support experience through staff retirements. Given the small size of the agency, the loss of this experience has adversely impacted ODVA’s ability to support multiple custom applications. The most critical of those applications is the ODVA Conservatorship System. This application enables court-appointed ODVA conservators and trust officers to deliver critical conservatorship and representative payee services to the state’s most vulnerable veterans. These veterans rely on ODVA and the Conservatorship System to manage and care for all of their financial needs, which total almost $30 million in client assets. Currently, the Conservatorship System is supported by the original, retired developer who is on contract with ODVA two days a week. This uniquely skilled individual is crucial to both the ongoing support and maintenance of the legacy Conservatorship System and to a cost-efficient transition to a new, modern application.

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Home Loan Program The Home Loan Program originates and services home loans for veterans. However, the antiquated loan origination and servicing applications are two, individually unique and custom applications. These applications contain a significant amount of redundant information about the veteran borrower and loan detail. Because the applications are separate, they are inefficient and susceptible to multiple data entry errors. Early in the current biennium, ODVA leveraged a short-term, stop-gap software solution to meet new federally-mandated home loan compliance requirements (Dodd-Frank). This short-term solution still requires duplicate entry of information into ODVA’s separate loan applications, and is incapable of generating quality analysis and sufficient reporting required to properly monitor the loan portfolio. How Achieved: Conservatorship Program: During the 2013-15 biennium, ODVA began looking for a Conservatorship System replacement and originally believed that a commercial off the shelf (COTS) system had the potential to work. However, after exhaustive inquiries and research, ODVA determined that the best approach was to go through a request for proposal (RFP) process for application development services to replace the existing system. Home Loan Program: An “end-to-end” home loan system combines an origination and a servicing system. The purchase and installation of an “end-to-end” home loan system that carries the loan information entered during the initial application and loan origination phase through to the loan servicing pro cess will create great efficiencies, reduce errors, eliminate dual entry, and provide a robust system that can scale with anticipated growth of loan production. In addition, this new software system will significantly improve the veterans’ customer service experience by allowing veterans to review their home loan information online. The approval of this policy option package will provide funding to allow ODVA to proceed with the Conservatorship System RFP and application development process, as well as obtain a consolidated home loan origination and servicing system. Staffing Impact: There is no direct staffing impact for this package. Quantifying Results: Conservatorship Program Expected Outcomes PROGRAM UNITS // VETERAN SERVICES // POLICY OPTION PACKAGE 101

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1. Significant risk mitigation by eliminating the current dependencies on: a. A single, contracted application developer b. Legacy and largely unsupported application language and platform 2. Improved staff efficiency and accuracy through: a. Automated workflow processes b. Graphical and user-friendly interface c. Reduced IT overhead 3. Compliance with ODVA strategic plan to build a better, stronger and more durable department for future generations 4. Long-term support and sustainability for the ODVA Conservatorship Program and System application 5. Integration of the Conservatorship System into other existing and future ODVA core program applications a. Business intelligence b. Improved customer service models 6. Application extensibility is retained to meet potential changes to the business needs of the ODVA Conservatorship Program 7. Number of types of reports that may be generated that will ultimately improve operations 8. Increased ODVA Conservatorship Program capacity. Results of developing a replacement for the legacy Conservatorship System will be measured by the following: 1. The number of Conservatorship System support requests 2. Case file data entry and processing time 3. Application user satisfaction Home Loan Program Expected Outcomes 1. Allow ODVA to better control the three stages of the home loan lending life cycle a. New business origination b. Loan servicing c. Default management 2. Enable customer-focused experiences 3. Maximize staff efficiency PROGRAM UNITS // VETERAN SERVICES // POLICY OPTION PACKAGE 101

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4. Minimize data input errors 5. Satisfy federal regulatory compliance 6. Allow ODVA to provide enhanced information to veterans. The results of installing an end-to-end loan origination and servicing system for the Home Loan Program will be measured by the following: 1. 2. 3. 4.

Loan file data entry time and processing time Number of regulatory events and negative audit findings Borrower satisfaction Application user satisfaction

Revenue Source Conservatorship Program: The Legislatively Adopted Budget proposes $600,000 (LF) to replace the Conservatorship system. The amount is based on Request for Information (RFI) vendor evaluations performed in 2014. RFIs requested one-time development and software cost associated with set up, implementation, training, purchasing, and conversion/migration. Home Loan Program: The Legislatively Adopted Budget proposes $250,000 (OF) to replace the Loan Program system. The amount is based on comparable application suites, and previous and existing application costs, including the recent short-term compliance solution.

$600,000

Conservatorship Program

$250,000

Home Loan Program

$850,000

TOTAL ALL REVENUE SOURCES

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VETERAN SERVICES POLICY OPTION PACKAGE 102 Target Veteran Services – Package 102 (Agency priority # 2) Introduction ODVA’s vision for veterans, stated in its five-year strategic plan, is that “Veterans and their families thrive in Oregon.” One of the goals and its objective that supports that vision is to “Target veteran services: Serve more veterans and serve them better.” This package targets services for veterans and supports the objective of serving more veterans and serving them better. Background. The purpose of this package is to expand access to services for the underserved veteran community. Currently, only three in ten Oregon veterans access the federal benefits they have earned. ODVA wants to increase the number of veterans receiving earned benefits. The County Veteran Service Officers (CVSO’s), who are supported on a statewide basis by ODVA, are the local and direct services link to veterans and help veterans understand, access, and utilize the many benefits and resources available to them. ODVA considered another key factor when it developed this package: the veteran population in Oregon is aging. More than half of Oregon veterans are over 65 years of age and ODVA is committed to focusing on the needs of these veterans. Finally, in order to sustain the Veteran Services Program and Home Loan Program for Oregon’s current and future generation of veterans, ODVA must stabilize ODVA’s financial condition by aligning revenue sources with appropriate program areas. The package components are grouped into three major categories: 1. Statewide Veteran Services: County and National Service Organization pass-through monies o County pass-through monies for county veteran service activities o National Service Organization (NSO) pass-through monies for NSO veteran service activities 2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers o Target the most vulnerable veterans through a robust conservator and representative payee programs for veterans who are unable to manage their finances o Provide veteran services to aging veterans in the Veteran Homes and in the conservator and representative payee programs o Develop specialized aging veteran outreach and research to better target needs and services for aging veterans

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3. Home Loan Program: Program Stabilization and Funding Alignment o Financially stabilize the Home Loan Program for future generations o Align revenue sources with program areas

Statewide Veteran Services: County and National Service Organization Pass-through Monies

Purpose The County Veteran Service Officers (CVSO’s), that are supported on a statewide basis by ODVA, are the direct link to veterans to help them understand, access, and utilize the many benefits and resources available to them. Currently, CVSO’s are stretched beyond their capacity. This package requests additional funding for the counties, which will allow them to hire additional CVSO’s or support staff in order to reach more veterans. One of the most important services the CVSO’s provide is filing federal claims on behalf of veterans. In 2015, federal disability compensation and pension benefits claims alone provided more than $1.28 billion in direct cash payments to Oregon veterans. These federal dollars are not only a financial benefit to the state, but it means that federal dollars rather than state safety net dollars are used to help these veterans. Increasing county veterans services through additional pass-through dollars will help serve more veterans, increase the number of claims filed, and ultimately bring in more federal dollars to the state. With the recent addition of Polk County, during the 2015-17 biennium, 35 counties will have a veteran service office. In addition to the counties, National Service Organizations (NSOs) play an important role in reaching out to veterans and filing claims. Additional pass through dollars to the counties and to NSOs greatly increases the availability of veteran services in local communities and builds on a strong return on investment results seen over the last two biennia.

How Achieved The Legislatively Adopted Budget proposes an additional $1,500,000 LF (special payments) to be distributed to 35 counties for CVSO’s, support staff and operations. An additional amount of $57,000 LF (special payments) is proposed for distribution to NSOs. The total proposed budget for County and NSO passthrough for the 2017-2019 biennium is $6,030,017 LF ($5,854,861 for counties and $175,156 for NSOs).

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Staffing Impact There is no direct staffing impact. Quantifying Results ODVA anticipates that the additional resources available to the counties and to the NSOs will increase both the number of new powers of attorney granted to ODVA in order to represent veterans on federal claims and an increase in the number of new claims filed for veterans. For the 2017-19 biennium, ODVA anticipates that number of new powers of attorney granted to ODVA will increase by 15% and the number of new federal claims filed will increase by 10%. These estimates take into consideration the ramp-up of additional CVSOâ&#x20AC;&#x2122;s and support staff.

2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers ODVA is committed to prioritizing resources and services for aging veterans who represent more than half of Oregonâ&#x20AC;&#x2122;s veteran population. More than half of all Oregon veterans are 65 years of age or older. Veterans make up almost 26% of all the seniors in Oregon. Of the 634,700 seniors in Oregon in 2015, about 164,500 were veterans. Conservatorship and Representative Payee Programs. One key Aging Veteran Services program is the Conservatorship and Representative Payee program. This program provides financial and case-management services to the most vulnerable Oregon veterans who are unable to manage their own finances. The demand for conservators and representative payees is growing quickly because of the increase in the aging veteran population and the forced shutdown of payee companies in the private sector. The influx of aging veterans is already overwhelming existing services. One of the greatest benefits of these programs is that it prevents the institutionalization of these senior veterans with significant costs on state general fund. Currently, two trust officers serve as conservators for 140 veteran clients and as representative payee for 110 clients. The combined conservatorship caseload averages 65-70 cases per trust officer. The American Bar Association standards for attorneys acting as conservators and representative payees are that caseloads should not exceed 25-30 cases per attorney. Despite growing demands, ODVA has been forced to limit new conservatorship and or representative payee cases because current caseloads are so high. The Legislatively Adopted Budget proposes one new Representative Payee position for these programs.

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Aging Veterans Outreach Specialist. ODVA needs to mobilize its partnerships with state agencies that work with aging veterans in order to coordinate efforts and help provide them with the benefits and services they have earned. A veteran service officer (VSO) with the expertise in veteran benefits, expertise in the complex aging health care programs (Medicare, Medicaid, CCOs etc.), and working knowledge of the needs of aging veterans would be able to accomplish three specific goals. First, the VSO would obtain Powers of Attorney and file claims for roughly 560 of Oregon’s most vulnerable veterans, including veterans in two Oregon Veterans’ Homes, conservatorship clients and representative payee clients. Second, the VSO would work with the eight Aging Disability Resource Centers (ADRCs, part of the Department of Human Service Seniors and People with Disabilities). ADRCs have trained professional staff members who can help individuals with immediate or future needs and provide information about local public and privately paid options for long-term services and support. The VSO would train staff at the ADRCs to know and understand aging and disabled veterans’ issues and available state and federal benefits. The VSO would serve as a liaison to ADRCs to connect veterans to county service officers who would assist veterans in filing Federal VA claims for disability compensation and pension benefits. Third, the VSO would initiate and implement an “Aging Veterans PARIS Project.” PARIS is the Public Assistance Reporting Information System that identifies certain veterans who receive State of Oregon safety net services. This position would implement a “PARIS Project” and work with DHS, using PARIS to identify veterans who may be able to voluntarily shift to benefits provided by the Federal VA. The VSO would identify veterans who are on Medicare/Medicaid and living in long-term care settings, including assisted living, adult foster care and skilled nursing facilities. The VSO would work with these facilities, the veteran and their family, and the CVSO to file appropriate disability compensation and pension claims on behalf of the veteran. If claims are successful, they would eliminate the state costs for medical long-term care, and safety net services for these veterans, which would be replaced by federal benefits. Note that not all veterans will be able to qualify. The Governors’ Budget proposes a Program Analyst 2 position who would serve as a veteran service officer and Aging Veteran Outreach Specialist to be the subject matter expert on veteran benefits and issues effecting these unique aging veteran populations. Assistant Director for Aging Veteran Services. The complex operations and issues with the two Oregon Veteran Homes in The Dalles and Lebanon, the Conservatorship and the Representative Payee programs, and serving the needs of the aging veteran population requires an individual who can assist in management of the day-to-day operations of these programs. The position will help manage and direct the day-to-day business operations of the programs within the division, manage the subordinate managers for Conservatorship/Representative Payee program, the two Oregon Veterans’ Homes program directors, work with the contractors who manage the Homes, evaluate the quality of service provides, measure outcomes and improve processes and services.

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The Legislatively Adopted Budget proposes a Principal Executive Manager D position, Assistant Director for Aging Veteran Services who would manage the dayto-day operations of Aging Veteran Services.

How Achieved The addition of one new Representative Payee ($126,795 LF) position would allow the agency to continue to serve the 131 veterans currently being served in the representative payee program. An Aging Veteran Outreach Specialist ($168,613 LF), who is also a veteran service officer, will fill a critical need in helping Oregon’s most vulnerable aging veterans file claims for federal benefits. In addition, this position would work with Aging Disability Resource Centers and the PARIS project (described above). A new Assistant Director for Aging Veteran Services ($201,430 OF) would assist in the management and direction of the day-to-day business operations of the programs within the division, manage the subordinate managers for Conservatorship/Representative Payee program, the two Oregon Veterans’ Homes directors, work with the contractors who manage the Homes, evaluate the quality of service provided, measure outcomes and improve processes and services. The position will be a liaison between ODVA and the Federal VA and serves as fiduciary designee for the Conservatorship program. The Legislatively Adopted Budget also proposes Services and Supplies relating to these positions and for travel, training, research, veteran outreach, etc. ($85,140 LF and $47,650 OF) for a total request for the 2017-2019 biennium of $132,790. Staffing Impact • Establish one Representative Payee (Administrative Specialist 2) • Establish one Aging Veteran Outreach Specialist (Program Analyst 2) • Establish one Aging Veteran Services Assistant Director (Principal Exec/Manager D)

Quantifying Results •

The Representative Payee position will enable the department to continue to serve representative payee clients, and allow ODVA to take on new clients.

•

Using the PARIS list and incarcerated veteran outreach program, statewide veteran services will expand the number of Oregon veterans using federal benefits and reducing the amount of veterans who are currently accessing state benefits such as Oregon Health plan, SSI (Supplemental Security Income) PROGRAM UNITS // VETERAN SERVICES // POLICY OPTION PACKAGE 102

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SNAP (Supplemental Nutrition Assistance Program). As of July 2016, there are approximately 11,000 veterans on the Oregon PARIS list. It is projected that 30% (3,300) veterans be eligible for federally funded benefit programs as a result of this initiative, which would remove them from the rolls of some or all of the state benefit programs. •

Aging Veteran Outreach Specialist (Veteran Service Officer) - After the six month accreditation training and testing period is completed, the new VSO will file claims for veterans in both Oregon Veteran Homes and the Conservatorship and Representative Payee program. This position will also increase outreach efforts to veterans in assisted living and skilled nursing facilities.

•

Aging Veteran Services Assistant Director - The new Assistant Director will help direct the day-to-day operations and supervise the activities of the existing and new staff members of the Oregon Veterans’ Homes, conservatorship and representative payee, volunteer and, aging outreach programs, which will improve outcomes and efficiencies.

3. Home Loan Program: Program Stabilization and Funding Alignment This component of the policy option package helps correct the unsustainable funding distribution and sets the agency on strategic course for a sustainable future. This plan financially stabilizes the Home Loan Program by helping eliminate the diversion of Home Loan funds to other program areas and aligning agency program costs to more appropriate revenue sources. This component supports ODVA’s strategic goal of “Invigorating Core Operations” and the objective of “maintaining fiscal integrity and sustainability of ODVA’s program areas.” Historically, Other Funds generated by the Home Loan Program have been used to fund not only the program costs of the Loan Program, but to support nonLoan Program activities of the Veteran Services Program. Veteran Services Program activities currently funded through the Loan Program total approximately $4 million on a biennial basis and include the program’s proportional share of support services costs, such as accounting, budgeting, human resources, facilities use, communications, and information technology. This continued diversion of Other Funds to support Veteran Services Program activities is unsustainable. In fiscal year 2016, the Home Loan Program lost over $3.5 million. Over the past six years, the program has experienced a decline in its overall Net Position of more than $13 million; primarily because funds generated by the program have been used to pay for non-Loan Program agency activities. These losses will continue to grow in severity unless ODVA takes prudent and fiscally responsible corrective action. The financial strength and self-supporting nature of the Home Loan Program is ultimately at stake, as well as the ability to continue providing below market rate home loans to future generations of deserving Oregon veterans. ODVA and the state have a unique opportunity to take advantage of additional funding to take the corrective action needed to strengthen, stabilize and sustain the Home Loan Program for future generations of veterans. (See below under “How Achieved”).

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How Achieved This plan corrects the unsustainable funding distribution and sets the agency on strategic course for a sustainable future; it strengthens, stabilizes and sustains the Home Loan Program for future generations of veterans and eliminates the diversion of Other Funds from the Home Loan Program Other Funds to non-Loan Program activities. The Legislatively Adopted Budget proposes Lottery Funds to pay for the costs of the Veteran Services Program activities (includes the Conservatorship Program, outreach, and benefit-related information via multiple media channels and the program’s share of support services costs) and pay for the costs of the Aging Veteran Services Director. $3,805,943 LF $ 319,794 LF $4,125,737 LF

Veteran Services Program Aging Veteran Services Director Total cost for the 2017-2019 biennium (Personal services of $2,404,010; services & supplies of $1,721,727)

Because the following costs (other than the $1,218,547 of shared service support costs) will be shifted from Other Funds to Lottery Funds, this package also proposes a reduction of Other Funds as shown below. ($2,083,690) OF ( 503,180) OF ($2,586,870) OF

Personal services Service and supplies Total OF reduction for personal services and services and supplies

In November 2016, Oregonians passed Measure 96 to amend the Oregon Constitution. Measure 96 requires 1.5% of the net State Lottery proceeds be deposited into a veterans services fund to provide services for the benefit of veterans. The ballot measure is projected to generate approximately $18.5 million for the 2017-19 biennium. With the passage of Measure 96, the State and ODVA will have a unique opportunity to use these Lottery Funds to fund Veterans Services Program activities and to strengthen, stabilize and preserve the Home Loan Program for future generations of veterans. Staffing Impact No new additional staffing is requested. Note: this package would shift the funding from Other Funds to Lottery Funds for the following positions that are currently either fully or partially funded through Other Funds. • • •

Veteran Services Administrator (Principal Exec/Manager E) Veteran Services Administrative Assistant (Administrative Specialist 2) Veteran Services Benefits/Receptionist (Public Service Representative 2) PROGRAM UNITS // VETERAN SERVICES // POLICY OPTION PACKAGE 102

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Veteran Services Benefits/Receptionist (Office Specialist 2) Conservatorship Manager (Principal Exec/Manager C) Trust Officer (Veteran Trust Officer) Trust Officer (Veteran Trust Officer) Trust Officer (Veteran Trust Officer) Trust Officer Assistant (Administrative Specialist 1) Trust Officer Assistant (Administrative Specialist 1) Conservatorship Secretary (Administrative Specialist 1) Public Affairs Manager (Principal Exec/Manager D) Public Affairs Specialist 2 (Public Affairs Specialist 2) Public Affairs Specialist 1 (Public Affairs Specialist 1) Public Affairs Specialist 1 (Public Affairs Specialist 1) Senior Policy Advisor (OPS/Policy Analyst 4) Aging Veteran Services Director (Principal Exec/Manager F)

Quantifying Results • Results would be quantified and measured using the operating results of the annual Home Loan Program’s audited financial statements. • Financial statement losses would be eliminated or substantially reduced.

Revenue Sources: 1. Statewide Veterans Services: County and National Service Organization Pass-through Monies $ 1,500,000 $ 57,000

LF LF

County pass-through monies (special payments) NSO pass-through monies (special payments)

$1,557,000

TOTAL Special Payments

2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers

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$ 126,795 $ 168,613 $ 85,140

LF LF LF

Administrative Specialist 2; Representative Payee (personal services) Program Analyst 2; Aging Veteran Outreach Specialist (personal services) Services & supplies for new positions, travel, training, research, and veteran outreach, etc. (services and supplies)

$ 380,548

TOTAL (personal services $295,408 and services and supplies $85,140)

$ 201,430 $ 47,650

OF OF

Principal/Exec Manager D; Aging Veteran Services Assistant Director (personal services) Services & supplies for new positions, travel, training, research, and veteran outreach, etc. (services and supplies)

$ 249,080

TOTAL (personal services $201,430 and services and supplies $47,650)

Home Loan Program - Program Stabilization and Funding Alignment The following positions are not new positions. They are existing positions that are fully or partially funded with Other Funds and are proposed to be paid from Lottery Funds. $ $ $ $ $ $ $ $ $ $ $ $ $

103,089 50,071 36,601 112,553 151,347 108,083 120,925 125,720 81,762 90,035 79,186 237,393 181,841

LF LF LF LF LF LF LF LF LF LF LF LF LF

Veteran Services Administrator; Principal Exec/Manager E (personal services) Veteran Services Administrative Assistant; Administrative Specialist 2 (personal services) Veteran Services Benefits/Receptionist; Public Service Representative 2 (personal services) Veteran Services Benefits/Receptionist; Office Specialist 2 (personal services) Conservatorship Manager; Principal Exec/Manager C (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Conservatorship Secretary; Administrative Specialist 1 (personal services) Public Affairs Manager; Principal Exec/Manager D (personal services) Public Affairs Specialist 2; Public Affairs Specialist 2 (personal services) PROGRAM UNITS // VETERAN SERVICES // POLICY OPTION PACKAGE 102

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$ 168,613 $ 156,265 $ 280,732 $ 319,794 $ 1,721,727 $ 4,125,737

LF LF LF LF LF LF

Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) Senior Policy Advisor; OPS/Policy Analyst 4 (personal services) Aging Veteran Services Director; Principal Exec/Manager F (personal services) Services & supplies including pro-rata portion of shared service support costs (services and supplies) TOTAL (Personal services of $2,404,010; services & supplies of $1,721,727)

Personal services (amount includes a Veteransâ&#x20AC;&#x2122; Home PS adjustment) Service and supplies Total OF reduction for personal services and services and supplies

GRAND TOTALS $ 1,557,000 $ 2,699,418 $ 1,806,867 $ 6,063,285

LF LF LF LF

TOTAL Special Payments TOTAL Personal Services TOTAL Services and Supplies TOTAL Combined

($1,882,260) ($ 455,530) ($2,337,790)

OF OF OF

TOTAL Personal Services Reduction TOTAL Services and Supplies Reduction TOTAL Combined Reduction

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VETERAN SERVICES POLICY OPTION PACKAGE 104 Mobilize Partnerships – Package 104 (Agency priority #4) Introduction One of ODVA’s four strategic plan goals and its objective is to “Mobilize Partnerships” in order to “leverage all resources available to veterans.” ODVA forges and mobilizes partnerships with other state, county, local and federal governmental agencies and non-profits that have subject matter expertise and delivery systems. Working with these partnerships, ODVA provides expertise on the critical needs and special issues facing veterans. Through these partnerships, ODVA is able to achieve another strategic goal and its objective: to “Target Veteran Services” and “serve more veterans and serve them better. ODVA’s purpose is to leverage existing state resources to expand and enhance direct service to veterans in areas of education, health and mental health, and homelessness. Leveraging resources will: • • •

Maximize up-front, preventative resources to reduce expensive, back-end state safety net systems, Enhance collaboration to create, connect and support statewide networks for veterans and family resources, and Bring the veterans’ focus to key state outcome areas

This package mobilizes ODVA’s partnerships with state and local governments and non-profits in three targeted priority areas for veterans: 4. Oregon University and Community College Veterans: Campus Veteran Programs and Campus Veteran Coordinators 5. Homeless Veterans: Oregon Housing and Community Services Emergency Housing Account Enhancement 6. Veterans’ Health and Mental Health Care: Health Care Access and Peer Delivered Services for Mental Health 1.

Oregon University and Community College Veterans: Campus Veteran Programs and Campus Veteran Coordinators

Purpose The purpose of mobilizing a partnership between ODVA and Oregon’s 17 community colleges and seven state universities is to help Oregon veterans successfully transition from military service to college life, complete their education, and then transition from college to the workforce and community. The success of these transitions for a veteran can be enhanced through campus veteran resource centers and campus veteran coordinators. Veteran resource centers are located on a community college or state university campus and provide a place for veterans to connect with other veterans, study, relax, connect with local, state, county and federal resources, and obtain help and support from veteran coordinators. Campus veteran coordinators, who are usually part of the Student Affairs, PROGRAM UNITS // VETERAN SERVICES // PACKAGES (107BF02) // POLICY OPTION PACKAGE 104

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provide advocacy, understanding and resource connections for Oregon veterans, including referring campus veterans to local county veteran service officers for federal and state benefits. Campus veteran resource centers and veteran coordinators provide a benefit to both the veteran and the community college. In 2015, almost 13,500 Oregon veterans received more than $146 million in Federal VA education benefits. These educational benefits include financial resources in support of attending community colleges, universities, and certification and training programs. A strong veterans program can help attract and retain veterans, resulting in increasing and retaining these federal funds. Campus veteran coordinators serve as a resource to administration and staff, providing an understanding and appreciation of the strengths of veterans and the veteran’s unique challenges and needs. Currently there are campus veteran resource centers and campus veteran coordinators at Portland Community College, Portland State University, Chemeketa Community College, Western Oregon University and Oregon State University. Some community colleges and universities, like Clackamas Community College and University of Oregon have only a meeting space for veterans. The profile of a typical student veteran is an individual who is highly motivated to achieve educational goals, appreciates the value of the educational experience, is older and more mature than most first-time students, brings leadership, maturity, and life skills that are a basis for success as students and these veterans often have families. Because a veteran has served in the military, he or she has a wealth of work experience, a solid work ethic and discipline. The veteran also faces a lot of challenges, including adjusting to civilian life, transitioning from a structured military life to a college environment, the loss of support systems, stresses of family, finances, and sometimes health and mental health issues. A campus veteran resource program, which includes a resource center and a coordinator, aligns with one of the priorities in Oregon's Higher Education Coordinating Commission (HECC) 2016-20 Strategic Plan: “focus on outcomes that promote life successes.” The campus veteran program supports this goal by providing the resources to help the veteran transition from the military into the community college experience, complete their certificate or degree program, and transition into the workforce and community. How Achieved The goals are to establish campus veteran resource centers and campus veteran coordinators at community colleges and state universities (“colleges”) using best practices models from existing programs. ODVA will provide training, support and facilitate networking between veteran coordinators. These goals would be achieved through a pass through distribution of grant funds from ODVA to community colleges and universities.

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ODVA would provide coordination, training, grant administration and technical support for implementation of the program. The majority of the funds would be distributed to community colleges and universities (“colleges”) for two purposes of grants. One purpose would be for colleges that had an existing veteran resource center and a veteran coordinator to expand and enhance the existing program. For example, funds could be used for administrative assistance; veteran events; education, training and networking for a veteran coordinator; outreach efforts; establish a mentoring program; innovative projects; and recordkeeping and data collection. Another purpose would be to help establish a veteran resource coordinator position and a resource center on a campus. The coordinator position and resource center would be set up using the best practices found in Oregon and on campuses in other states. This program would be implemented through $1,250,000 LF as pass through grants to community colleges and state universities (special payments). Staffing Impact: There is no direct staffing impact for this package. Quantifying Results: Results of the program would be quantified using the following measures: 1. Number of veterans served 2. Demographics of veteran: age, gender, geographical area 3. Types of services provided 4. Innovation in type or delivery of service 5. Nature of problem to be addressed 2.

Homeless Veterans: Oregon Housing and Community Services Emergency Housing Account Enhancement

Purpose The purpose of mobilizing a partnership between ODVA and the Oregon Housing and Community Service Department (OHCS) is to provide additional funds and enhance an existing program to assist homeless veterans and veterans who are at risk of becoming homeless. These funds would go through the existing structures and distribution processes that are already in place for this purpose through the OHCS’ Emergency Housing Account and distributed to localities

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across Oregon through the 17 community action agencies. The program would support two of ODVA’s goals and their objectives: to “Target Veteran Services by serving more veterans and serving them better” and to “Mobilize Partnerships by leveraging all resources available to veterans.” According to the U.S. Department of Housing and Urban Development, the point-in-time count for homeless veterans was 1,462 in 2015, which includes 769 unsheltered veterans and 695 sheltered veterans. This number only includes “homeless” veterans and does not include the significant number of veterans who are “at risk of becoming homeless.” Background. Oregon House Bill 2417 (2013) increased the state document recording fee by $5 and dedicated these funds to meeting the range of housing needs of Oregon veterans. These fees are administered by OHCS. One-fourth of the revenues from these fees are dedicated to the OHCS Emergency Housing Account “to assist homeless persons and those persons who are at risk of becoming homeless.” OHCS makes these Emergency Housing Account funds available to the 17 community action agencies in localities across the state. These lead agencies are responsible for coordinating the distribution of funds to serve their communities. For the first three quarters of the 2015-17 biennium (July 1, 2015 through March 31, 2016), OHCS distributed $371,053 from the Emergency Housing Account (EHA) to community action agencies for veterans who are homeless or who are at risk of becoming homeless. If this revenue stream remains constant, the total funds available in the EHA for the 2015-17 biennium will be approximately $989,474. From July 1, 2015 through March 31, 2016, the veterans program served 403 individuals and 239 households. It is estimated that the program will serve approximately 1,000 veterans over the 2015-17 biennium. How Achieved The purpose of this program would be achieved by providing $875,000 to OHCS through the Emergency Housing Account. The funds would be Lottery Funds that would be a pass through from ODVA to OHCS (special payments) and would substantially increase the impact of the program for homeless veterans. Staffing Impact: There is no direct staffing impact for this package. PROGRAM UNITS // VETERAN SERVICES // PACKAGES (107BF02) // POLICY OPTION PACKAGE 104

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Quantifying Results: Results of the program would be quantified using the following measures: 1. 2. 3. 4.

Number of veterans served Demographics of veteran: age, gender, geographical area Types of services provided Innovation in type or delivery of service

3. Veterans’ Mental Health Care: Peer Delivered Services for Mental Health Purpose The purpose of this program is to provide funds to the Oregon Health Authority (OHA), Peer Delivered Services, to create and administer a grant program to provide peer delivered services to veterans with mental health conditions or substance abuse disorders. Background. “Peer delivered services” are services provided by “peer support specialists” (PSS) who are certified by the State of Oregon. Peer support specialists must have “shared life experiences” with those individuals they serve. PSS work for non-profits (that are often contracted by counties or CCOs) or for a county (typically, smaller counties). Peer support specialists (“PSS”) are individuals in recovery from mental illness and/or addiction who are employed by behavioral health care providers. People who have achieved and sustained recovery from mental health and substance abuse conditions are powerful supports for individuals seeking their own path to recovery because a PSS must have shared life experiences with those individuals they serve. Peer support specialists help individuals in recovery with “recovery needs,” including: respect, support and trust; finding recovery communities; dealing with everyday stress; self-esteem and positive connections; and understanding from having similar experiences in life. Peer support specialists also help individuals in recovery with basic needs, including: help with treatment, bus transportation, food stamps, and other services; identification and birth certificates; job searches; transportation and support with probation officer or state agencies; and housing resources. Peer support specialists are certified through the Office of Equity and Inclusion. Certification includes successful completion of a 40 hour training course approved by the Oregon Health Authority (OHA) and a criminal background check through OHA.

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How Achieved The purpose of this program is to provide funds to the Oregon Health Authority (OHA), Peer Delivered Services, to create and administer a grant program to provide peer delivered services to veterans. The grants would focus on peer delivered services to veterans with mental health or substance abuse conditions and some of the grants would be specifically for services to veterans transitioning from county jails or the state prison to the community. The program would provide a total of $875,000 LF pass through (special payments) to the Oregon Health Authority for grants and for grant administration. Staffing Impact: There is no direct staffing impact for this package. Quantifying Results: Results of the programs would be quantified using the following measures: 1. 2. 3. 4. 5.

Number of veterans served Demographics of veteran: age, gender, geographical area Types of services provided Innovation in type or delivery of service Nature of problem to be addressed

Revenue Source 1. Oregon University and Community College Veterans: Campus Veteran Programs and Campus Veteran Coordinators $

1,250,000 LF

Pass through grants to community colleges and state universities (special payments)

2. Homeless Veterans: Oregon Housing and Community Services Emergency Housing Account Enhancement $

875,000

Pass through to OHCS EHA (special payments)

3. Veteransâ&#x20AC;&#x2122; Health and Mental Health Care: Health Care Access and Peer Delivered Services for Mental Health $

875,000

$ 3,000,000 LF

Pass through to Oregon Health Authority for peer delivered services through grants and grant administration (special payments) TOTAL (special payments) PROGRAM UNITS // VETERAN SERVICES // PACKAGES (107BF02) // POLICY OPTION PACKAGE 104

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2015-17 VETERANS’ home loan PROGRAM organizational chart

ADMINISTRATION 15/17 = 5 POSITIONS (5.1 FTE)

HOME LOAN SECTION

FINANCIAL SERVICES DIVISION

HUMAN RESOURCES

15/17 = 10 POSITIONS (10.0 FTE)

15/17 = 2 POSITIONS (2.0 FTE)

COMMUNICATIONS AND INFORMATION SERVICES PUBLIC INFORMATION RECORDS & INFO MGT INFO SERVICES

FACILITY AND CONSTRUCTION MANAGEMENT 15/17 = 7 POSITIONS (7.0 FTE)

15/17 = 17 POSITIONS (17.0 FTE)

Total 2015-17 Veterans’ Home Loan Program Positions 51 Positions (51.1 FTE)

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2017-19 VETERANS’ home loan PROGRAM organizational chart ADMINISTRATION 17/19 = 3 POSITIONS (3.0 FTE)

-2 Position Shifts (2.1 FTE) Ops/Policy Analyst 4 (1.0 FTE) Office Specialist 2 (1.0 FTE) PEM E (0.1 FTE) Package 102

HOME LOAN SECTION

FINANCIAL SERVICES DIVISION

HUMAN RESOURCES

17/19 = 11 POSITIONS (11.0 FTE)

17/19 = 10 POSITIONS (10.0 FTE)

17/19 = 2 POSITIONS (2.0 FTE)

1 New Position (1.0 FTE) Ops/Policy Analyst 2 Package 103

Total 2017-19 Veterans’ Home Loan Program Positions 46 Positions (46.0 FTE)

COMMUNICATIONS AND INFORMATION SERVICES PUBLIC INFORMATION RECORDS & INFO MGT INFO SERVICES

FACILITY AND CONSTRUCTION MANAGEMENT 17/19 = 7 POSITIONS (7.0 FTE)

17/19 = 13 POSITIONS (13.0 FTE)

-4 Position Shifts (4.0 FTE) PEM/D PA Spec. 2 PA Spec. 1 PA Spec. 1 Package 102

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HOME LOAN PROGRAM EXECUTIVE SUMMARY Focus Area:

Thriving Statewide Economy and Healthy Safe Oregonians

Program Contact:

Cody Cox / 503-373-2170

Veterans' Home Loan Program ORVET Loan Portfolio

$20,000,000

7,500

$16,000,000

6,000

$12,000,000

4,500

$8,000,000

3,000

$4,000,000

1,500

Number of Home Loans

Total Expenditures - Other Funds

Other Funds

$2005-07

2007-09

2009-11

2011-13

2013-15

2015-17

2017-19

2019-2021

2021-2023

Note: 2013-15 and prior are Actuals, 2015-17 is LAB, future biennia is GB and projected thereafter on inflation basis.

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Executive Summary Wanting to provide a benefit to World War II veterans returning home, Oregon citizens voted in 1945 to create a Veteransâ&#x20AC;&#x2122; Home Loan program, establishing it in Article XI-A of the Oregon Constitution. Identified as the Home Loan program, this historically self-sufficient program provides low-interest rate mortgages on single-family owner-occupied homes to qualified veterans. Program Funding Request The budget proposal for the next three biennia are as follows: Biennium

Other Funds

2017-19

$16,788,430

2019-21

$17,426,390

2021-23

$18,140,872

The program is funded primarily by revenues derived from mortgage loan and contract repayments, proceeds from bond sales, fee and rental income and investment earnings. The 2017-19 Legislatively Adopted Budget will provide the ability to originate and service loans for the Home Loan Program, and the necessary core operations of the department. The proposed amount of Other Funds for the 2017-19 biennium has increased from the prior biennium due primarily to facility project costs related to a refresh of the Veterans building in Salem and replacement of the Loan Program IT system. Proposals for future biennia currently include inflation factors; however, at the end of each biennia the Department will evaluate current operational and staffing needs and will make adjustments accordingly. Program Description Oregon is one of only five states in the nation that have been grandfathered under federal tax law to offer a state veteran home loan program; the other four states include Alaska, California, Texas, and Wisconsin. The concept behind the veteran home loan programs is that these states want to provide an enhanced housing benefit to their veterans for their past service and sacrifice. Historically, this enhanced housing benefit has generally resulted in significantly lower PROGRAM UNITS // HOME LOAN PROGRAM // EXECUTIVE SUMMARY (107BF02)

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home loan interest rates than are normally available in the marketplace, which have been achieved through the issuance of tax-free, state general obligation bonds called Qualified Veteran Mortgage Bonds (QVMB). Through this program, veteran borrows can generally save between $15,000 to $50,000 by obtaining a 30-year ODVA Home Loan compared to similar products available in the conventional market. QVMB’s have limitations on how they can be used, most notably, borrowers must apply for a loan within 25 years of discharge from military service and funds cannot be used for refinancing. The Home Loan Program also has access to limited amounts of less restrictive bond monies from which it can also make loans to veterans who apply for a loan after 25 years from date of discharge. It is this money that is being used to finance loans made to Oregon’s veterans that were made eligible as a result of the passage of Measure 70 in 2010. The program offers financing up to the Fannie Mae limit, currently $424,100. Partnering with private mortgage brokers and lenders across the state in a unique public-private partnership allows veterans anywhere in the state to access the benefit which they have earned. These partnerships allow the Home Loan program access to every community, while minimizing the need for individual field offices throughout the state. Since 1945, the program has provided more than $7.9 billion of low-interest loans to more than 335,000 veterans and at one time, the Oregon Department of Veterans’ Affairs (ODVA) was one of the largest lenders in the state with a portfolio of more than 140,000 loans. In addition to originating loans, the program currently services all of its loans. The benefit to the veteran of ODVA servicing its own loans, is the enhanced customer service provided to the veterans and their families, as well as the flexibility and ability to restructure loans if the veteran borrower experiences financial hardship. The program has been most robust when large numbers of veterans returned to Oregon, such as after World War II, the Korean War, and the Vietnam War. However, since those conflicts, warfare has changed and large “draft” armies are not being deployed, which means large numbers of veterans are not returning to Oregon seeking loans. In recent years, that fact, coupled with the current housing market recession, high unemployment and underemployment, low conventional mortgage rates, and the inability to use QVMB monies for refinancing, has resulted in a significant portfolio reduction in this program. The portfolio as of June 30, 2016 was approximately 1,865 loans totaling $262 million. Cost Drivers – The largest cost drivers for the program are bond interest costs, personnel costs and operational services and supplies costs. As of June 30, 2016, ODVA had approximately $300 million in bond indebtedness, with approximately 46% of the portfolio in variable rate bonds and 54% fixed rate. In the recent low interest rate environment, the variable rate debt has been extremely beneficial to be able to offer a low interest rate on mortgage loan product. Personnel costs include direct loan program staff and support staff. Operational services and supplies costs include expenses related to the program and certain Veteran Services expenses unaffiliated with the loan program.

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Program Justification and Link to Focus Areas ODVA’s home loan program impacts across multiple State focus areas, but particularly Healthy/Safe Oregonians and Thriving State Economy. The connection between home ownership and the local economy includes 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, to the title company employees and bank employees who fund the loans, to 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. Additionally, local governments are funded through property tax revenues and communities strengthened when homeowners have a vested interest in their neighborhood. Home ownership has always been a key factor in economic recovery. Throughout the state’s economic cycles, the Home Loan has consistently been an attractive product for the state’s 326,000 veterans. Through strict attention to quality underwriting, accurate loan servicing and lower delinquent rates, the Home Loan provides Oregon’s veterans a home loan program with fiscal integrity and an opportunity for home ownership with historically low interest rates, earned through their service in the United States Armed Forces.

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Federal VA

Conventional (Prime)

ODVA

Program Performance

Percent Delinquent

6.00%

Low Delinquency Rate The Home Loan program has a consistent record of having significantly lower delinquency rates than comparable Federal VA or Conventional loan products. Quality underwriting, avoidance of adjustable rate mortgages and a willingness to work with delinquent borrowers on modified repayment plans all contribute to delinquency rates of less than half of comparable products.

4.50% 3.00% 1.50% 0.00%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

June 30 *Data for 2016 is through March 31

Number of ORVET Home Loans by County Statewide Loans - Committed to providing service to veterans wherever they live in the state, the Home Loan program partners with mortgage brokers and lenders in communities statewide. From large banks to single-person mortgage broker offices, the program continually seeks to maintain and expand its partnerships. Over the past five years, 99% of loan originations have come through broker and lender partners.

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Enabling Legislation/Program Authorization The Home Loan program is established in Article XI-A of the Oregon Constitution and has statutory authority via ORS Chapter 407. Funding Streams The Home Loan program is a self-supporting program, using Other Funds only. These Other Funds monies are Constitutionally-dedicated for certain veteran programs. Revenues are derived from loan and contract repayments, proceeds from bond sales, fee and rental income and investment earnings. No General Fund monies are used in its operations. In addition to being Constitutionally-dedicated, Loan Program funds are restricted in their use by federal tax law, bond covenants, standby bond purchase agreements and liquidity provider agreements. 2017-19 Funding Proposal The 2017-19 Legislatively Adopted Budget for the Home Loan Program maintains the program at current service level. Major budget components include realignment of positions to applicable program area and funding source, and capital projects related to building refresh and modernization of IT systems.

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veterans’ home loan PROGRAM historical operating budget comparison $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $OPERATING BUDGET

2007-09 L.A.B.

2009-11 L.A.B.

2011-13 L.A.B.

2013-15 L.A.B.

2015-17 L.A.B.

2017-19 L.A.B.

$16,799,002

$18,468,530

$16,064,672

$15,245,709

$15,477,065

$16,417,830

L.A.B. – Legislatively Adopted Budget **Includes all Packages but excludes Nonlimited and Capital Construction Expenditures.

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HOME LOAN PROGRAM NARRATIVE Home Loan Program Environmental Factors and Trends Limited Funding Sources and Product – Due to a change in federal tax law, there are limited sources of funding available for those veterans that apply for a home loan more than 25 years after they have left active duty service. In November 2010, Oregon voters overwhelmingly passed Ballot Measure 70 allowing an amendment to the Oregon Constitution which now makes the Oregon Veterans’ Home Loan program a lifetime benefit. Monies derived from pre-Ullman bond refunding’s (general obligation bonds originally issued prior to 1981) are available to continue to fund these loans. However, these funding sources are limited, and while some funds will be available during the 2017-2019 biennium, the availability of these monies in future periods will decline. Qualified Veterans Mortgage Bonds (QVMB) are tax-free, state general obligation bonds. This is the type of money generally used to fund the majority of veteran Home Loans in Oregon. Currently, federal law limits the use of this money to purchase only loans and does not allow loans to be made to veterans who are 25 years past discharge from military service. Inability to Refinance Loans or Lend to Veterans Discharged More Than 25 Years - Because of the uncertain economic conditions, a predominate amount our customer interaction involves requests for a refinance product. Qualified Veterans Mortgage Bonds (QVMB) are tax-free, state general obligation bonds and may not be used to refinance homes. This is the type of money generally used to fund the majority of veteran Home Loans in Oregon. Currently, federal law limits the use of this money to purchase only loans and does not allow loans to be made to veterans who are 25 years past discharge from military service. Home Loan Market -Interest rates, home prices and general economic conditions can help or hinder ODVA’s home loan program. Both the Oregon and national economy is gradually improving. Consumers continue to be cautious with discretionary expenditures thereby resulting in flat or slow growth in several key industry areas. Banks suffered billions of dollars in real estate related write-downs thereby leading them to tighten down on their credit underwriting. Until the well-being of the consumer and financial institutions improve markedly, economic growth likely will continue to be limited. Home Values – As the effects of the housing crisis diminish, a new set of challenges are encountered. In the face of historically low home interest rates, housing prices have increased substantially, returning to pre-crisis levels. This rapid increase has created an shortage of available inventory creating a seller’s market. Many prospective home purchasers are either priced out of the market or unsuccessful in winning bidding wars. Fewer Investment Banks in the Tax-Exempt Housing Business – As a result of the turmoil occurring during 2007 and 2008, a number of investment banks that previously were involved with structuring and marketing of tax-exempt housing bonds have exited the business. This trend may make it more difficult to structure and market Department bonds as effectively as in the past.

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Nonperforming Assets - Close monitoring of nonperforming assets and early intervention with borrowers who become delinquent will continue to be an important issue. The Loan Program – The loan program is projected to incur operating losses and further reduce the loan fund in the 2017-2019 biennium due to smaller size of the loan program, low interest rates and the significant use of the loan program funds to subsidize veteran service programs and administrative support. Program Supplementing Other Department Expenditures - Beginning in the 1991-93 biennium, the Oregon Legislature responded to a general fund shortfall by requesting that ODVA utilize ORVET program dollars to supplement Veteran Services funding – with the understanding that the Veteran Services funding would be fully restored to general fund during the next budget cycle. For the 2013-15 biennium, general funds were finally restored for these Veterans’ Services positions that were being paid with loan program monies. While the reinstatement of general funds for Veterans’ Services positions resulted in eliminating a portion of the subsidy of direct personnel costs, general funds remain unrestored for the services and supplies costs of the Veterans’ Services program. As the loan portfolio has declined, the ability to continue to fund non-affiliated Loan Program expenses has been compromised. Currently, the ORVET Home Loan program subsidizes approximately $4 million a biennium of Veteran Services’ costs consisting of personal services, services and supplies and its share of costs relating to accounting, budgeting, information services, space and utilities, public information services and the like. These program subsidies were a major contributor to the Loan program’s losses over the last six fiscal years. Over the past 15 years, ODVA has had two significant layoffs – in 2004 and 2012 – attempting to realign costs with reduced revenue.

Program Details Oregon is one of only five states in the nation that have been grandfathered under federal tax law to offer a state veteran home loan program. Historically, this state housing benefit has resulted in significantly lower home loan interest rates than are normally available in the marketplace. The program offers financing up to the Fannie Mae limit, currently $424,100. Customers: Home Loan customers include veterans, private-sector mortgage lenders, realtors, mortgage brokers, appraisers, title companies, insurance companies, and credit reporting agencies. The Department also has partnered in the past with Oregon Housing and Community Services (OHCS) to make taxexempt funds available through OHCSD for low- and moderate-income housing. Source of Funding: Other Funds. Primary sources of revenue consist of loan and contract-related repayments, investment earnings, fee and rental income, and proceeds from bond sales.

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Expenditures: $16,417,830 Other Funds. Loan Program dollars continue to subsidize a portion of non-loan program related functions for services and supplies and certain direct and indirect personnel costs. Positions and FTE: 2017-19 Legislatively Adopted Budget funds 11 positions (11.0 FTE) for Direct Loan Services and 35 (35.0 FTE) other agency operational positions, for a total of 46 (46.0 FTE) positions. Workload: The Home Loan Program has been most robust when large numbers of veterans returned to Oregon, such as after World War II, the Korean War, and the Vietnam War. However, warfare has changed and large “draft” armies are not being deployed; which means large numbers of veterans are not returning to Oregon seeking loans. In recent years, fewer veterans, coupled with the housing market recession, high unemployment, low conventional mortgage rates, and the inability to use QVMB monies for refinancing, has resulted in a significant portfolio reduction of home loans. As of June 30, 2016, the portfolio included approximately 1,865 loans totaling more than $262 million.

Expected Results The Legislatively Adopted Budget would provide spending authority to the Veterans’ Home Loan program that will assist the Department with meeting the following goals: •

Maintain the fiscal integrity of the Veterans’ Home Loan program The Department is responsible for the repayment of approximately $300 million of the state’s outstanding general obligation debt as of June 30, 2016. When available and appropriate, early bond calls and special redemptions will be utilized to reduce payments for debt service. Through strict attention to quality underwriting, accurate loan servicing, and when necessary, timely collection activities, the successful operation of the Veterans’ Home Loan program will continue. State-owned (foreclosed) properties will continue to be closely monitored in order to maximize returns. Delinquencies and non-performing assets will continue to be closely monitored, and early intervention will be employed to assist borrowers and to protect the Department’s interests. During the biennium, the Department will strive to keep its delinquent accounts (90 or more days delinquent and active foreclosures) to 1.5 percent or less of all outstanding accounts.

•

Provide more Oregon veterans with an opportunity for home ownership The Department will continue to use the proceeds arising from the sale of tax-exempt Qualified Veterans’ Mortgage Bonds to fund home loans. With Oregon National Guard units serving in the Middle East, the Department anticipates that the pool of post-1976 eligible veterans will grow in time. The Department will continue its outreach efforts to this new group of veterans, ensuring that they are fully informed of the benefits available PROGRAM UNITS // HOME LOAN PROGRAM // NARRATIVE (107BF02)

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to them and the potential savings in housing costs available to them, generally ranging between $15,000 to $50,000. •

Improve service delivery through additional business partners The Department will continue to expand its statewide network of mortgage lenders and brokers who originate ODVA home loans. By providing local access to ODVA home loans via ODVA-approved lenders and brokers, additional veterans may be served in their local communities.

•

Enhance efficiency and customer service by replacing two separate antiquated systems with an end-to-end loan origination and servicing system.

•

Further use of web-based tools to assist veteran borrowers and Loan Program partners.

Revenue Sources/Proposed Revenue Changes Revenue Sources - The Veterans' Home Loan program operates solely on Other Funds. These Other Fund monies consist of loan and contract repayments, proceeds from bond sales, fee and rental income, and investment earnings. No General Fund monies are used in its operations. The Veterans’ Home Loan program requires no matching funds. Limits on Use of Revenue - Limitations on revenue usage exist since these funds are derived from tax-exempt debt issued by the State of Oregon. Thus, the use of these revenues must be compatible with federal tax laws and Oregon's constitutional and statutory authority. A listing of constitutionally authorized uses, (subject to applicable federal tax restrictions) is provided in the Revenues portion of this document. Basis for Estimates - A variety of factors were used to produce the estimate for the 2017-2019 base budget. Included were estimates of loan and contractrelated repayments, investment earnings, fee and rental income, and proceeds from bond sales. Loan and contract related repayments consist of payments received by the Department from its mortgagors and contracts for principal, interest, taxes and insurance. Historical payment patterns were used to help make the projections. Historical earnings performance was also used, along with projected earning rates, estimates of the size and type of investments, and projected investment terms to forecast the Department’s investment earnings. Fee and rental income consists of payments received from the Department’s mortgagors for a variety of loan-related services, and for the leasing of space in the Veterans’ Building. Historical payment trends and projections relevant to the increase/decrease of fee-based transactions and rental and leasing activities were utilized to produce an estimate for the biennium. Changes in Revenue Sources - There are no proposed revenue source changes.

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Proposed Legislation SB 79: Technical Amendment to Foreclosure Procedures Senate Bill 251 (2015) amended ORS 86.726 (part of the Residential Foreclosure Avoidance Mediation Program; “RFAMP”) and exempted ODVA from the requirement to request and participate in a resolution conference with a veteran borrower prior to foreclosure. Unfortunately, the exemption was not extended to requirements of 86.752(4) or 88.010(2)(a), which require ODVA to record or file a certificate of compliance with RFAMP. Because ODVA is exempt, it cannot record or file such a document. This concept is a technical/housekeeping amendment suggested by the Attorney General’s Office.

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Home loan POLICY OPTION PACKAGE 101 21st Century Service Delivery – Package 101 (Agency priority # 1) Purpose One of ODVA’s five-year goals and its objectives to better serve Oregon veterans is to “invigorate core operations” and “build a better, stronger and more durable department for future generations.” Using smart technology to better protect and serve veterans, ODVA needs to: • •

replace outdated and inadequate applications with effective, efficient platforms designed for modern day needs; and improve services laying a service foundation for the 21st century.

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Home Loan Program The Home Loan Program originates and services home loans for veterans. However, the antiquated loan origination and servicing applications are two, individually unique and custom applications. These applications contain a significant amount of redundant information about the veteran borrower and loan detail. Because the applications are separate, they are inefficient and susceptible to multiple data entry errors. Early in the current biennium, ODVA leveraged a short-term, stop-gap software solution to meet new federally-mandated home loan compliance requirements (Dodd-Frank). This short-term solution still requires duplicate entry of information into ODVA’s separate loan applications, and is incapable of generating quality analysis and sufficient reporting required to properly monitor the loan portfolio. How Achieved: Conservatorship Program: During the 2013-15 biennium, ODVA began looking for a Conservatorship System replacement and originally believed that a commercial off the shelf (COTS) system had the potential to work. However, after exhaustive inquiries and research, ODVA determined that the best approach was to go through a request for proposal (RFP) process for application development services to replace the existing system. Home Loan Program: An “end-to-end” home loan system combines an origination and a servicing system. The purchase and installation of an “end-to-end” home loan system that carries the loan information entered during the initial application and loan origination phase through to the loan servicing process will create great efficiencies, reduce errors, eliminate dual entry, and provide a robust system that can scale with anticipated growth of loan production. In addition, this new software system will significantly improve the veterans’ customer service experience by allowing veterans to review their home loan information online. The approval of this policy option package will provide funding to allow ODVA to proceed with the Conservatorship System RFP and application development process, as well as obtain a consolidated home loan origination and servicing system. Staffing Impact: There is no direct staffing impact for this package. Quantifying Results: Conservatorship Program Expected Outcomes PROGRAM UNITS // HOME LOAN PROGRAM // PACKAGES (107BF02) // POLICY OPTION PACKAGE 101

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Loan file data entry time and processing time Number of regulatory events and negative audit findings Borrower satisfaction Application user satisfaction

$600,000

Conservatorship Program

$250,000

Home Loan Program

$850,000

TOTAL ALL REVENUE SOURCES

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Home Loan POLICY OPTION PACKAGE 102 Target Veteran Services – Package 102 (Agency priority # 2) Introduction ODVA’s vision for veterans, stated in its five-year strategic plan, is that “Veterans and their families thrive in Oregon.” One of the goals and its objective that supports that vision is to “Target veteran services: Serve more veterans and serve them better.” This package targets services for veterans and supports the objective of serving more veterans and serving them better. Background. The purpose of this package is to expand access to services for the underserved veteran community. Currently, only three in ten Oregon veterans access the federal benefits they have earned. ODVA wants to increase the number of veterans receiving earned benefits. The County Veteran Service Officers (CVSO’s), who are supported on a statewide basis by ODVA, are the local and direct services link to veterans and help veterans understand, access, and utilize the many benefits and resources available to them. ODVA considered another key factor when it developed this package: the veteran population in Oregon is aging. More than half of Oregon veterans are over 65 years of age and ODVA is committed to focusing on the needs of these veterans. Finally, in order to sustain the Veteran Services Program and Home Loan Program for Oregon’s current and future generation of veterans, ODVA must stabilize ODVA’s financial condition by aligning revenue sources with appropriate program areas. The package components are grouped into three major categories: 1. Statewide Veteran Services: County and National Service Organization pass-through monies o County pass-through monies for county veteran service activities o National Service Organization (NSO) pass-through monies for NSO veteran service activities 2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers o Target the most vulnerable veterans through a robust conservator and representative payee programs for veterans who are unable to manage their finances o Provide veteran services to aging veterans in the Veteran Homes and in the conservator and representative payee programs o Develop specialized aging veteran outreach and research to better target needs and services for aging veterans

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3. Home Loan Program: Program Stabilization and Funding Alignment o Financially stabilize the Home Loan Program for future generations o Align revenue sources with program areas

Statewide Veteran Services: County and National Service Organization Pass-through Monies

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The Legislatively Adopted Budget proposes a Principal Executive Manager D position, Assistant Director for Aging Veteran Services who would manage the dayto-day operations of Aging Veteran Services.

Quantifying Results •

The Representative Payee position will enable the department to continue to serve representative payee clients, and allow ODVA to take on new clients.

•

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•

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Veteran Services Program Aging Veteran Services Director Total cost for the 2017-2019 biennium (Personal services of $2,404,010; services & supplies of $1,721,727)

Personal services Service and supplies Total OF reduction for personal services and services and supplies

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2017-2019 LEGISLATIVELY ADOPTED BUDGET • • • • • • • • • • • • • •

Revenue Sources: 1. Statewide Veterans Services: County and National Service Organization Pass-through Monies $ 1,500,000 $ 57,000

LF LF

County pass-through monies (special payments) NSO pass-through monies (special payments)

$1,557,000

TOTAL Special Payments

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2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers $ 126,795 $ 168,613 $ 85,140

LF LF LF

$ 380,548

TOTAL (personal services $295,408 and services and supplies $85,140)

$ 201,430 $ 47,650

OF OF

$ 249,080

TOTAL (personal services $201,430 and services and supplies $47,650)

3. Home Loan Program - Program Stabilization and Funding Alignment The following positions are not new positions. They are existing positions that are fully or partially funded with Other Funds and are proposed to be paid from Lottery Funds. $ $ $ $ $ $ $ $ $ $ $

103,089 50,071 36,601 112,553 151,347 108,083 120,925 125,720 81,762 90,035 79,186

LF LF LF LF LF LF LF LF LF LF LF

Veteran Services Administrator; Principal Exec/Manager E (personal services) Veteran Services Administrative Assistant; Administrative Specialist 2 (personal services) Veteran Services Benefits/Receptionist; Public Service Representative 2 (personal services) Veteran Services Benefits/Receptionist; Office Specialist 2 (personal services) Conservatorship Manager; Principal Exec/Manager C (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Conservatorship Secretary; Administrative Specialist 1 (personal services) PROGRAM UNITS // HOME LOAN PROGRAM // POLICY OPTION PACKAGE 102

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$ 237,393 $ 181,841 $ 168,613 $ 156,265 $ 280,732 $ 319,794 $ 1,721,727 $ 4,125,737

LF LF LF LF LF LF LF LF

Public Affairs Manager; Principal Exec/Manager D (personal services) Public Affairs Specialist 2; Public Affairs Specialist 2 (personal services) Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) Public Affairs Specialist 1; Public Affairs Specialist 1 (personal services) Senior Policy Advisor; OPS/Policy Analyst 4 (personal services) Aging Veteran Services Director; Principal Exec/Manager F (personal services) Services & supplies including pro-rata portion of shared service support costs (services and supplies) TOTAL (Personal services of $2,404,010; services & supplies of $1,721,727)

Personal services (amount includes a Veteransâ&#x20AC;&#x2122; Home PS adjustment) Service and supplies Total OF reduction for personal services and services and supplies

GRAND TOTALS $ 1,557,000 $ 2,699,418 $ 1,806,867 $ 6,063,285

LF LF LF LF

TOTAL Special Payments TOTAL Personal Services TOTAL Services and Supplies TOTAL Combined

($1,882,260) ($ 455,530) ($2,337,790)

OF OF OF

TOTAL Personal Services Reduction TOTAL Services and Supplies Reduction TOTAL Combined Reduction

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HOME LOAN PROGRAM POLICY OPTION PACKAGE 103 Strengthen Veterans’ Home Loans – Package 103 (Agency priority #3) Purpose An important ODVA five-year objective to better serve Oregon veterans is to “build a better, stronger and more durable department for future generations.” This policy option package invigorates ODVA’s core operations by strengthening the Home Loan Program to improve required compliance with federal DoddFrank regulations and align staff functions with critical loan origination functions. A second component to this package is to implement a long-overdue refresh of the ODVA state office building. Home Loan Program: Loan Origination Compliance ODVA originates and services home loans for veterans and is regulated as a “creditor” by the federal government. The recently-enacted federal Dodd-Frank Wall Street Reform and Consumer Protection Act and the creation of the Consumer Financial Protection Bureau (CFPB) required the mortgage industry to make significant changes to their practices, including new requirements and compliance standards for creditors. In response to the need to implement the significant compliance standards, ODVA created a quality assurance and compliance coordinator (QA/CC) in the Home Loan Program in 2015, using an existing Loan Specialist 1 position, with the understanding that the position requires the skills and functions of an Operations and Policy Analyst 2. The QA/CC position was critical due to the new CFPB regulations with wide-ranging changes and ongoing scrutiny for mortgage lending. in November 2013, CFPB integrated the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations into one process named TRID (TILA-RESPA Integrated Disclosure Rule), also known as the “know before you owe” rule. CFPB originally mandated the TRID implementation for August 2015. The TRID mandate was subsequently deferred to October 2015 due to the complexity of the changes and the lack of preparation by the industry. Establishing the Operations and Policy Analyst 2 position in this policy option package will allow ODVA to utilize the Loan Specialist 1 position to coordinate loan purchase functions and perform certain post-closing lending activities. Because ODVA established these functions within a QA/CC position, it was able to implement and have in place all the required changes by the federal deadline. Oversight and management of compliance-related origination functions and loan servicing functions will continue to be critical due to their highly visibility, the high degree of diligence needed, and the significant risk to the agency of non-compliance.

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Home Loan Program: ODVA Building Refresh The Department of Administrative Services recommends a refresh of state building interiors every ten years as part of certain lease agreements with lessees. It has been more than ten years since the interior of ODVAâ&#x20AC;&#x2122;s building was painted and new carpet was installed. How Achieved: Home Loan Program: Loan Origination Compliance Establishing a new QA/CC as an Operations and Policy Analyst 2 position will allow ODVA to maintain oversight and compliance with federal and state regulations, including TRID, HMDA, Regulation Z, Regulation X, and other major CFPB compliance mandates. The Loan Specialist 1 position used for these functions was a position in loan origination within the Home Loan Program and needs to remain in Home Loans and filled. This package will also reclassify two Loan Specialist 1 positions in the loan origination section to Loan Specialist 2. These reclassifications are needed based on the increased responsibilities and skill level to comply with the new Dodd-Frank and the CFPB regulations for loan origination, including TRID, HMDA (Home Mortgage Disclosure Act), Regulation Z, Regulation X, and other major CFPB compliance mandates. Loan originations achieved record production levels in 2014 and 2015. Home Loan Program: ODVA Building Refresh ODVA plans to replace all the carpet beginning with the first floor and proceeding to the second and third floors respectively. Concurrent with the carpet replacement, all walls will be painted in staff and public areas. In addition, signage on the exterior and interior of the building will be updated to improve readability. The refresh process will require a schedule that provides for the removal of old carpet, painting of all walls and installation of new carpet. First the systems furniture would be removed in selected area, the area would be painted and then the carpet would be installed. This project will require dividing each tenant area into sections for remodel, and emphasizing the need to accommodate continuous operations in each agency. The painting of all wall surfaces will be completed and coordinated with the carpet contractor and signage will be installed as remodeled areas are completed. In recognition of individual agencies operational requirements work will generally be performed after hours and on weekends where and when feasible.

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Staffing Impact: Home Loan Program: Loan Origination Compliance Establish one (1) Operations and Policy Analyst 2. Reclass two Loan Specialist 1 positions to Loan Specialist 2 positions. Home Loan Program: ODVA Building Refresh No staffing requirements. Quantifying Results: Home Loan Program: Loan Origination Compliance Results of the new QA/CC Operations and Policy analyst positions will be measured by: 1. Compliance mandates consistently achieved and maintained. 2. Rewrite and implementation of the following manuals and documents based on new federal regulations: a. ODVA Loan Origination Guides b. ODVA desk manuals c. Broker and lender agreements d. Required disclosures based on implementation of enhanced HMDA (Home Mortgage Disclosure Act) standards in January 2017 3. Increased volume levels through the Lender Delivery Channel with the proper realignment of the LS1 position back to Loan Originations Home Loan Program: ODVA Building Refresh Results of the refresh of the ODVA building will be measured by completion of the installation of carpeting, new paint and updated signage.

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Revenue Source Home Loan Program: Loan Origination Compliance $ 168,614

Operations and Policy Analyst 2 (personal services)

$ 14,912

Reclass two Loan Specialist 1 positions to Loan Specialist 2 (personal services)

$ 17,833

Services and Supplies for one new position

$ 201,359

Total for Home Loan Program

Home Loan Program: ODVA Building Refresh $ 933,333

Building refresh: Services and Supplies

TOTAL REVENUE SOURCE $1,134,692

Home Loan Program

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2015-17 oregon VETERANS’ home PROGRAM organization chart

ADMINISTRATION

OREGON VETERANS’ HOME 15/17 = 5 POSITIONS (5.0 FTE)

DIRECT CARE AND OPERATIONS 15/17 = 0 POSITIONS (0.0 FTE) (CONTRACTED OUT)

Total 2015-17 Oregon Veterans’ Home Program Positions 5 Positions (5.0 FTE)

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2017-19 oregon VETERANS’ home PROGRAM organization chart

ADMINISTRATION

OREGON VETERANS’ HOME 17/19 = 5 POSITIONS (5.0 FTE)

DIRECT CARE AND OPERATIONS

-1 Position Shift (1.0 FTE) PEM F Package 102 1 New Position (1.0 FTE) PEM D Package 102

17/19 = 0 POSITIONS (0.0 FTE) (CONTRACTED OUT)

Total 2017-19 Oregon Veterans’ Home Program Positions 5 Positions (5.0 FTE)

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OREGON VETERAN HOMES PROGRAM EXECUTIVE SUMMARY Focus Area: Program Contact:

Healthy and Safe Oregonians Mary Jaeger / 503-508-1905

Oregon Veterans' Home Skilled Nursing Care (SNF) Other Funds

General Fund

Lottery Funds

Residents 350

$100,000,000

300

$80,000,000 $70,000,000

250

$60,000,000 200

$50,000,000 $40,000,000

150

$30,000,000 $20,000,000

Avg. Number of Residents

Total Expenditures - Other Funds

$90,000,000

100

$10,000,000 50

$2005-07

2007-09

2009-11

2011-13

2013-15

2015-17

2017-19

2019-2021

2021-2023

PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // EXECUTIVE SUMMARY (107BF02)

207

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Program Overview The Oregon Veterans’ Homes provide the state’s qualified veterans and their families skilled nursing, Alzheimer’s and memory-related, and rehabilitative care in an environment that understands the unique needs of the men and women who served our country in uniform. There are two Veterans’ Homes in Oregon, one is located in The Dalles and a second in Lebanon. The Oregon Veterans’ Home program is a self-sustaining program offering superior care at a lower cost to veterans and their families. Program Funding Request The budget proposal for the next three biennia is as follows:

Biennium 2017-2019 2019-2021 2021-2023

$ $ $

Other Funds 83,810,663 87,888,052 92,436,258

Other Funds Debt Issuance Costs $ 90,000 $ $ -

General Funds $ 1,344,281 $ $ -

Total Funds $ 85,244,944 $ 87,888,052 $ 92,436,258

Other Funds revenue is primarily generated from resident-related income to cover the cost of care. Income sources typically include funds from the U.S. Department of Veterans Affairs (Federal VA), Medicare, Medicaid, insurance companies and private payers. General Fund monies are related to debt service on Article XI-Q Bonds that were issued in November 2013 and used as a portion of the local/state match to construct the Lebanon Veterans’ Home due to construction changes mandated by the Federal VA. The 2017-19 Legislatively Adopted Budget will provide the ability to maintain superior care for residents at the current Oregon Veterans’ Homes. Program Description Eligibility/Care Level/Services - Care at the Oregon Veteran’s Homes is an “earned benefit” available to veterans, their spouses and parents who had a child die while serving in the United States Armed Forces. To be eligible for this benefit, qualifying veterans must have served as defined by the Federal VA and received an honorable discharge from their branch of service. Residents receive 24-hour, long-term skilled nursing, Alzheimer’s and other memory-related, and rehabilitative care by a skilled nursing staff whose skills and understanding have been enhanced to meet the unique and special needs of veterans. The Home’s nursing team is complemented by physical, occupational and speech therapists who provide specific physician ordered services to help residents meet their maximum rehabilitative potential. PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // EXECUTIVE SUMMARY (107BF02)

208

2017-2019 LEGISLATIVELY ADOPTED BUDGET

In addition, the facility offers residents engaging daily activities, transportation to and from community outings and doctor’s appointments, customized nutrition based on individual resident needs by a dietitian, high quality meals prepared by the facility’s full-time chef, and an environment that honors and remembers veterans. Most importantly, the Veterans’ Homes enable what most veterans desire – a home where they are understood and among other veterans. The Federal VA’s Community Based Outpatient Clinic (CBOC) is located adjacent to The Dalles Veterans’ Home on the Home’s property. CBOC’s provide primary care to veterans by Federal VA doctors who are knowledgeable about veterans’ issues and needs, including health complications that are the result of servicerelated disabilities. Partners – The Federal VA and local counties partnered in funding the original construction of the facilities with a combination of federal and local funds; grant funds are subject to repayment if the facility closes before 20 years of continuous operation after receipt of the federal grant funds. Additionally, the Federal VA provides a daily per diem for veteran residents to offset their cost of care and federal legislation allows veterans who are disabled due to their military service (with a service-connected disability rating of 70% or more) to have their full daily cost of care at State Veterans’ Homes paid for by the Federal VA. As both Veterans’ Homes are Medicare and Medicaid certified, the relationship with Aging and People with Disabilities is an important partner for the long-term and short-term care placement of veterans in need of this high level of care. The Oregon Department of Veterans’ Affairs contracts with Veterans Care Centers of Oregon (VCCO), a non-profit organization, for the day-to-day operation of the facility. The contract with VCCO followed the state’s competitive procurement process and has resulted in the delivery of award-winning, high quality care to veterans. Recruiting for qualified medical personnel remains a challenge in rural Oregon. Whenever possible, the Veterans’ Homes partner with local community colleges to help meet its qualified nursing staffing needs and create valuable internship opportunities for the nursing program students. The local hospitals also provide hospital related services when it is not in the resident’s best interest to travel to a VA Medical Center to receive these services. Other partnerships that are necessary for the continued success of the Veterans’ Homes include veterans’ services organizations that support the Homes with donations of monies, tangible items for residents, sponsorship of special events and thousands of volunteer hours. Cost Drivers – The Oregon Department of Veterans’ Affairs maintains the self-sufficient Oregon Veterans’ Home program by continually reviewing costs. The most significant cost driver is staffing/personnel costs, which is more than 70% of the total operating expenses. Minimum nursing staff ratios are mandated by the Oregon Department of Human Services (Oregon Administrative Rule 411-086-0100).

PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // EXECUTIVE SUMMARY (107BF02)

209

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Program Justification and Link to Focus Areas ODVA’s Oregon Veterans’ Home program impacts the Healthy and Safe Oregonians focus area. The Oregon Veterans’ Homes maximize the opportunity to bring federal funding for care of seniors into Oregon. Through our nation’s promise to care for its veterans, the Oregon Veterans’ Home program offers a veteran benefit that not only costs significantly less than other private nursing care facilities but, also allows 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. In recent years, attention has increasingly turned to ways to improve clinical decision making, patient safety and quality of care. The Dalles Veterans’ Home recently implemented an electronic health records system and installed a memory-care garden and a wandering patient management system for the memorycare unit. These upgrades reduced medication errors, better monitor diseases and other health risks and ensure a safe and secure environment for residents that also allows maximum freedom. Additionally, in Fiscal Year 2015 the Lebanon Veterans’ Home was opened and it has become a national model for delivery of services in a “small-home” model.

PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // EXECUTIVE SUMMARY (107BF02)

210

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Higher Customer Satisfaction Overall Quality Satisfaction

Industry Avg.

Program Performance

OVH

100%

Higher Quality - In 2014, the Home was awarded the Step III Award (now called the Gold Award) for Quality Achievement from the American Health Care Association (AHCA) and the National Center for Assisted Living (NCAL). To date, the Home is one of approximately 31 care facilities in the nation – and one of only two state veterans’ homes – to achieve this level of recognition.

90% 80% 70% 60% 2012

2013

2014

2015

2016

Additionally, the Home regularly receives higher customer satisfaction rankings from residents and family members on the overall quality of care.

Fiscal Year Source: Pinnacle Quality Insight

Lower Resident Private Pay Rates Avg. Private & Semi-Private Room Daily Rate

National Avg.

Oregon Avg.

Lower Cost to Residents – Health care costs nationally and in Oregon continue to rise and the Home is no exception. However, over the past five years, the Home has become more affordable than the average skilled nursing facility. In 2007, the Home charged $66 less for resident private pay daily rates than the average Oregon skilled nursing facility. In 2016, the differential increased to $81, which would save a resident approximately $29,565 annually. In addition, since the resident’s financial resources last longer for individuals in the Oregon Veterans’ Home compared to other nursing facilities, the Oregon Veterans’ Home helps preserve State Medicaid long term care dollars.

OVH

$285 $245 $205 $165 $125 2012

2013

Source: Genworth Financial Reports; ODVA

2014

2015

2016

Fiscal Year

PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // EXECUTIVE SUMMARY (107BF02)

211

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Higher Occupancy – Over the past five years, occupancy rates at the Home have been significantly higher than the average for Oregon skilled nursing facilities. In Fiscal Year 2014, the Veterans’ Home in The Dalles averaged a 92% occupancy, while Oregon had the lowest nursing home occupancy rate in the country averaging 61% statewide (Oregon Health Care Association). In Fiscal Year 2015, a second Veterans’ Home in Lebanon was opened, resulting in lower combined average occupancy levels for the Homes as residents began admitting to the Lebanon Home. As of June 30, 2016, occupancy at the Lebanon and The Dalles Home were 90% and 94% respectively. Additionally, demand for the memory-care unit has often required waiting lists.

Higher Occupancy Rate Occupancy of Licensed Beds

Oregon Avg.

OVH

100% 90% 80% 70% 60% 50% 40% 2012

2013

2014

Fiscal Year

2015

2016

Higher occupancy at the Home is attributable to the commitment to providing the highest quality of care at lower costs to residents, all in an honoring environment where veteran residents are able to share their past experiences.

Source: Office for Oregon Health Policy & Research; Oregon Health Care Association; ODVA

Enabling Legislation/Program Authorization Oregon Revised Statute 408.360 and 408.368 authorized the Oregon Department of Veterans’ Affairs to construct and operate a state Veterans’ Home. Funding Streams The current revenues supporting the Home operations are entirely Other Fund. Unlike most other states’ veterans’ home programs, no General funds have been provided to date for operating the Oregon Veterans’ Home. Operational funds come primarily from resident care-related payments, including the Federal VA, which provides a daily per diem rate for qualifying residents, Medicare and Medicaid payments and private pay for certain residents. The Home also receives donated monies that are used to enhance the quality of life of residents at the Home. These donations often come from Oregon residents or their estates, local community groups, veteran organizations, or businesses. Recently, donated funds were used to help construct a Community Center at the Home, where residents and family members can enjoy spending time together. 2017-19 Funding Proposals The 2017-19 Legislatively Adopted Budget for the Veterans’ Home increases the current service level, due to the increasing medical costs, including personnel costs associated with operating two skilled nursing facilities. PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // EXECUTIVE SUMMARY (107BF02)

212

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Oregon veterans’ home PROGRAM historical operating budget comparison $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 OPERATING BUDGET

2007-09 L.A.B.

2009-11 L.A.B.

2011-13 L.A.B.

2013-15 L.A.B.

2015-17 L.A.B.

2017-19 L.A.B.

$21,074,764

$26,472,893

$26,656,474

$27,677,695

$65,906,751

$83,791,488

**Includes all Packages but excludes Debt Service, Debt Issuance costs and Capital Construction Expenditures. Note: Significant increase in Other Funds for 2015-17 and 2017-2019 are the result of the new Veterans’ Home in Lebanon opening in Fall 2014.

PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // NARRATIVE (107BF02)

213

2017-2019 LEGISLATIVELY ADOPTED BUDGET

OREGON veterans’ HOME PROGRAM NARRATIVE Veterans’ Home Program Environmental Factors and Trends Challenge to Retain Affordability – Retaining affordability of care for veterans residing at the Veterans’ Home continues to be a concern. The rate at which medical costs are increasing continues to outpace the cost of living adjustments to Federal VA pensions and Social Security, two primary sources of revenue used by residents to pay for their cost of care. When it became apparent that Federal VA pension and average Social Security income would fall short of covering a resident’s cost of care and that this segment of the veteran population would be in danger of being unable to afford to reside in the Home built especially for them, the Department sought and received Medicaid certification for the Veterans’ Home. Medical inflation is likely to remain high for the foreseeable future. In addition to the medical inflation challenge, some additional costs result from Federal VA regulations, which are more stringent than state regulations governing nursing homes. Affordability will continue to be an issue during the 2017-2019 biennium and going forward. Need for Facility Maintenance – The 2017-2019 biennium will find The Dalles Oregon Veterans’ Home in its 20th year of operations in 2017. Located on a hillside overlooking the Columbia River in The Dalles, this approximately $20 million state-owned facility located on 15 acres is exposed to extreme climatic conditions. These conditions include high wind, intense sunshine, and winter storms. These conditions, coupled with around-the-clock operation of the facility, impose severe stresses on the physical facility and its equipment. Along with the aging of the Home has come the expiration of warranties associated with the facility and its equipment, as well as the end of life cycles for some equipment. Facility maintenance is required to safeguard this valuable state-owned asset and to prevent further deterioration and higher future repair costs. Additionally, facility maintenance is required to avoid interruption of services to residents. An interruption of services to this vulnerable population could result in negative health consequences to residents and have negative financial consequences to the state. In April 2015, the agency submitted a grant application to the Federal VA related to The Dalles building refresh. The grant request has received conditional approval from the Federal VA. Once formally approved, the Federal VA will pay up to 65% of the $4.3 million refresh cost. Resident Occupancy Levels – A sufficient occupancy level will be necessary during the 2017-2019 biennium to maintain operating efficiencies for the Home, which contribute to the Department’s ability to retain affordability. The successful rehabilitation of residents and their resulting discharges to their homes or less care-intensive settings contributes to occupancy turnovers. Continuous admissions are necessary to maintain an adequate occupancy level and to maintain operating efficiencies. For some prospective residents, the Home’s rural location presents a challenge to their family’s ability to visit them and sometimes results in their not selecting the Veterans’ Home for their nursing care needs. Business Partner Support – Continued program support by the Federal VA is necessary for the Veterans’ Home program to continue as currently operated. Medicare and Medicaid certification of the Home, along with the relationship with the Department of Human Services’ Aging and People with Disabilities Program will continue to be an important support mechanism for the Home. The relationship with the contract operator of the Home is important in that it PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // NARRATIVE (107BF02)

214

2017-2019 LEGISLATIVELY ADOPTED BUDGET

preserves the high quality of life for the veteran residents of the Home through the direct care they receive and the enhancements to their quality of life that result from the volunteer program managed by the contract operator. Other partnerships include veterans’ service organizations that continue to support the Homes with donations of funds, tangible items, sponsorship of special events, and thousands of volunteer hours. Another important relationship exists with the local community colleges which helps the Homes with its qualified nursing staff needs and at the same time creates a valuable opportunity for nursing program participants. Continued support by business partners will contribute to the quality of life of residents of the Homes. Medicare/Medicaid – Potential significant reductions in Medicare/Medicaid rates will adversely affect private pay rates at the Home. Federal VA Reimbursements – The Federal VA allows for veterans rated 70 percent service connected disabled or more to receive reimbursement for the cost of their care at state Veterans’ Homes. The reimbursement rate, however, does not always fully cover their cost of care. Increased Demand for Care – As veterans continue to age, the demand for residential nursing care facilities, will increase. The Federal VA has estimated that Oregon will need up to 907 veteran home, nursing home and domiciliary beds for veterans based on projected demand. Medical Inflation – The cost of medical care has continued to outpace increases in Federal VA pensions and Social Security income. Aging Veteran Population – For the 2017-2019 biennium, it is anticipated that the most rapid population growth in the state will occur among seniors. A significant number of these will be veterans, which will include the aging Korean and Vietnam era veterans. Maintenance and Repair Needs - Because of its location in an extreme environment, The Dalles Veterans’ Home will continue to require regular maintenance and repair to the physical plant and grounds. The nature of the Home’s 24 hour, seven-day-per-week operation will continue to place extreme stress on equipment and furniture, necessitating frequent repairs and replacement. In addition, due to its age, (the Home enters its 20th year of operation in 2017) is beginning to experience the failure of original equipment and structures, necessitating their repair or replacement. Given the factors outlined above, we have applied and are on the Federal VA priority list for a refresh of the interiors of the The Dalles Home. This will include new flooring, paint wallpaper and ceiling tile throughout the facility, a remodel to the nurse stations, an upgrade of all resident rooms (paint, wallpaper, ceiling tile), a remodel of the production kitchen (new kitchen equipment, RFP the walls, new ceiling tile), remodel of nutrition centers at all 4 wings, remodel of rehab and therapy area and replacement of related equipment. In addition, we would replace the majority of the furniture in the facility as it is old and worn. Also, we would add a storage building to the facility.

PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // NARRATIVE (107BF02)

215

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Resident Cost – For many residents of the Home, the main source of income is a pension from the Federal VA and/or a monthly check from Social Security. The gap between the monthly cost to many residents and their Federal VA pension and Social Security income continues to widen. Many veterans in both Veterans’ Home facilities are utilizing Medicaid to contribute to the cost of their skilled nursing care. Complex Medical Needs – Veterans typically have more complex medical needs than non-veterans. An increase in occupancy could increase the normal demand for staffing to meet these complex medical and geriatric requirements. Also, as the wars in Iraq and Afghanistan produce more veterans who survive injuries, the Home has seen the need of rehabilitative care increase. Male to Female Resident Ratio – It is anticipated that additional females will become residents as a result of admission eligibility being extended to spouses of veteran. A larger percentage of spouses of veterans are female than male. However, even with expanded eligibility, it is expected the vast majority of resident population at the Home will continue to be male. Health and Safety Requirements - In recent years, attention has increasingly turned to ways to improve clinical decision making, patient safety and quality of care. The Dalles Veterans’ Home implemented an electronic health records system, installed a memory-care garden, and installed a wandering patient management system for the memory-care unit. These upgrades will reduce medication errors, improve documentation compliances, better monitor diseases and other health risks and ensure a safe and secure environment for residents that also allows maximum freedom. In the future, these upgrades may require repair or replacement. Expected Results Deliver high-quality care to residents and retain affordability. 

Through the Veterans’ Home program, the Department will continue to ensure that high quality care is provided to residents of the Veterans’ Homes in a safe, home-like environment. Residents will continue to receive rehabilitative and skilled medical services to attain the highest level of functionality and independence possible given their unique individual circumstances. The Department will continue to have on-site employees, as required, to administer the contract for operation of both of the Veterans’ Homes.



Maintain high occupancy levels at the Veterans’ Homes, thereby continuing operational and programmatic efficiencies.



Maintain The Dalles and Lebanon Veterans’ Homes, an approximately $60 million state-owned facilities within budgetary limitations.



Continue to closely monitor the Lebanon Veterans’ Home facility needs to ensure that any unexpected developments for the new buildings are efficiently and effectively resolved within budgetary limitations. PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // NARRATIVE (107BF02)

216

2017-2019 LEGISLATIVELY ADOPTED BUDGET



Partnerships with business partners will continue, with resulting benefits to residents. Business partners include county veterans’ service officers, veterans’ service organizations, local community college and universities, county citizens, and numerous others. Residents’ quality of life will continue to be enhanced as a result of these important relationships.



Donations will continue to be sought through existing mechanisms including direct solicitations to individuals and organizations, applications for grants and awards, Oregon Charitable Check Off and the Veteran License Plate program. Sources for new donation possibilities will continue to be explored.

Program Details The Oregon Veterans’ Homes provide the state’s most vulnerable veterans and their families skilled nursing, Alzheimer’s and memory-related, and rehabilitative care in an environment that understands the unique needs of the men and women who served our country in uniform. Currently there are two facilities located in The Dalles and Lebanon. The Oregon Veterans’ Home program is a self-sustaining program that offers superior care at a lower cost to veterans and their families. Customers: Care at the Oregon Veterans’ Homes is an earned benefit available to veterans, their spouses, and parents who had a child die while serving in the United States Armed Forces. To be eligible for this benefit, qualifying veterans must have served as defined by the U.S. Department of Veterans Affairs (Federal VA) and received an honorable discharge from their branch of service. Source of Funding: Operating revenues are primarily comprised of monies received from residents of the facility, Medicare and Medicaid reimbursements, and grant per diem received directly from the Federal VA. The facility also receives donations to the Veterans’ Home Trust Fund, as well as monies from the sale of Veterans License Plates through the Department of Motor Vehicles, and money from the Charitable Check Off program. The newest facility in Lebanon received 65 percent Federal VA Grant funds and 35 percent local match funding (Linn County levy) for construction. In 2013, the state provided additional funds to make up a short fall in the local match due to construction changes mandated by the Federal VA. Expenditures: $83,791,488 Other Funds. $1,017,323 General Funds Debt Service and $90,000 Other Funds Debt Issuance costs. No General Funds have been provided for Veterans’ Homes operational costs. Positions and FTE: 2017-19 Legislatively Adopted Budget funds five positions (5.0 FTE). Workload: The Agency contracts with an operator to manage the operations of the Oregon Veterans’ Homes. PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // NARRATIVE (107BF02)

217

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Revenue Sources/Proposed Revenue Changes The current revenues supporting the Veterans’ Homes’ operations are entirely Other Funds. Unlike most other states’ veterans’ home programs, no General funds have been provided to date for operational costs for the Veterans’ Home program in Oregon. Operational funds come primarily from monies available to residents, Medicare and Medicaid payments, and the Federal VA, which provides a daily per diem rate through its State Home Per Diem program. The majority of the Homes’ residents’ pay for a portion of the cost of their care by using their Federal VA pension or disability compensation benefits and their Social Security income. These funds must be used for resident care. Trust Fund Nonlimited Expenditures These expenditures represent disbursements of monies previously donated to the Department to be used for the benefit of Oregon’s veterans, their dependents and survivors. The level of expenditures will not exceed the amount of donated monies received and any interest generated on these funds. New Legislation None.

PROGRAM UNITS // OREGON VETERANS HOMES PROGRAM // NARRATIVE (107BF02)

218

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

219

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

220

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

221

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

222

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

223

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

224

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

225

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

226

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // PACKAGES (107BF02) // ESSENTIAL PACKAGES

227

2017-2019 LEGISLATIVELY ADOPTED BUDGET

VETERANS hOME POLICY OPTION PACKAGE 102 Target Veteran Services – Package 102 (Agency priority # 2) Introduction ODVA’s vision for veterans, stated in its five-year strategic plan, is that “Veterans and their families thrive in Oregon.” One of the goals and its objective that supports that vision is to “Target veteran services: Serve more veterans and serve them better.” This package targets services for veterans and supports the objective of serving more veterans and serving them better. Background. The purpose of this package is to expand access to services for the underserved veteran community. Currently, only three in ten Oregon veterans access the federal benefits they have earned. ODVA wants to increase the number of veterans receiving earned benefits. The County Veteran Service Officers (CVSO’s), who are supported on a statewide basis by ODVA, are the local and direct services link to veterans and help veterans understand, access, and utilize the many benefits and resources available to them. ODVA considered another key factor when it developed this package: the veteran population in Oregon is aging. More than half of Oregon veterans are over 65 years of age and ODVA is committed to focusing on the needs of these veterans. Finally, in order to sustain the Veteran Services Program and Home Loan Program for Oregon’s current and future generation of veterans, ODVA must stabilize ODVA’s financial condition by aligning revenue sources with appropriate program areas. The package components are grouped into three major categories: 1. Statewide Veteran Services: County and National Service Organization pass-through monies o County pass-through monies for county veteran service activities o National Service Organization (NSO) pass-through monies for NSO veteran service activities 2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers o Target the most vulnerable veterans through a robust conservator and representative payee programs for veterans who are unable to manage their finances o Provide veteran services to aging veterans in the Veteran Homes and in the conservator and representative payee programs o Develop specialized aging veteran outreach and research to better target needs and services for aging veterans

PROGRAM UNITS // OREGON VETERANS’ HOMES PROGRAM // POLICY OPTION PACKAGE102

228

2017-2019 LEGISLATIVELY ADOPTED BUDGET

3. Home Loan Program: Program Stabilization and Funding Alignment o Financially stabilize the Home Loan Program for future generations o Align revenue sources with program areas

Statewide Veteran Services: County and National Service Organization Pass-through Monies

PROGRAM UNITS // OREGON VETERANS’ HOMES PROGRAM // POLICY OPTION PACKAGE102

229

2017-2019 LEGISLATIVELY ADOPTED BUDGET

2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers ODVA is committed to prioritizing resources and services for aging veterans who represent more than half of Oregon’s veteran population. More than half of all Oregon veterans are 65 years of age or older. Veterans make up almost 26% of all the seniors in Oregon. Of the 634,700 seniors in Oregon in 2015, about 164,500 were veterans. Conservatorship and Representative Payee Programs. One key Aging Veteran Services program is the Conservatorship and Representative Payee program. This program provides financial and case-management services to the most vulnerable Oregon veterans who are unable to manage their own finances. The demand for conservators and representative payees is growing quickly because of the increase in the aging veteran population and the forced shutdown of payee companies in the private sector. The influx of aging veterans is already overwhelming existing services. One of the greatest benefits of these programs is that it prevents the institutionalization of these senior veterans with significant costs on state general fund. Currently, two trust officers serve as conservators for 140 veteran clients and as representative payee for 110 clients. The combined conservatorship caseload averages 65-70 cases per trust officer. The American Bar Association standards for attorneys acting as conservators and representative payees are that caseloads should not exceed 25-30 cases per attorney. Despite growing demands, ODVA has been forced to limit new conservatorship and or representative payee cases because current caseloads are so high. The Legislatively Adopted Budget proposes one new Representative Payee position for these programs.

PROGRAM UNITS // OREGON VETERANS’ HOMES PROGRAM // POLICY OPTION PACKAGE102

230

2017-2019 LEGISLATIVELY ADOPTED BUDGET

PROGRAM UNITS // OREGON VETERANS’ HOMES PROGRAM // POLICY OPTION PACKAGE102

231

2017-2019 LEGISLATIVELY ADOPTED BUDGET

The Legislatively Adopted Budget proposes a Principal Executive Manager D position, Assistant Director for Aging Veteran Services who would manage the dayto-day operations of Aging Veteran Services.

Quantifying Results •

The Representative Payee position will enable the department to continue to serve representative payee clients, and allow ODVA to take on new clients.

•

232

2017-2019 LEGISLATIVELY ADOPTED BUDGET

•

PROGRAM UNITS // OREGON VETERANS’ HOMES PROGRAM // POLICY OPTION PACKAGE102

233

2017-2019 LEGISLATIVELY ADOPTED BUDGET

Veteran Services Program Aging Veteran Services Director Total cost for the 2017-2019 biennium (Personal services of $2,404,010; services & supplies of $1,721,727)

Personal services Service and supplies Total OF reduction for personal services and services and supplies

234

2017-2019 LEGISLATIVELY ADOPTED BUDGET • • • • • • • • • • • • • •

Revenue Sources: 1. Statewide Veterans Services: County and National Service Organization Pass-through Monies $ 1,500,000 $ 57,000

LF LF

County pass-through monies (special payments) NSO pass-through monies (special payments)

$1,557,000

TOTAL Special Payments

2. Aging Veteran Services: Conservatorship, representative payee, veteran volunteers

PROGRAM UNITS // OREGON VETERANS’ HOMES PROGRAM // POLICY OPTION PACKAGE102

235

2017-2019 LEGISLATIVELY ADOPTED BUDGET

$ 126,795 $ 168,613 $ 85,140

LF LF LF

$ 380,548

TOTAL (personal services $295,408 and services and supplies $85,140)

$ 201,430 $ 47,650

OF OF

$ 249,080

TOTAL (personal services $201,430 and services and supplies $47,650)

103,089 50,071 36,601 112,553 151,347 108,083 120,925 125,720 81,762 90,035 79,186 237,393 181,841

LF LF LF LF LF LF LF LF LF LF LF LF LF

Veteran Services Administrator; Principal Exec/Manager E (personal services) Veteran Services Administrative Assistant; Administrative Specialist 2 (personal services) Veteran Services Benefits/Receptionist; Public Service Representative 2 (personal services) Veteran Services Benefits/Receptionist; Office Specialist 2 (personal services) Conservatorship Manager; Principal Exec/Manager C (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer; Veteran Trust Officer (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Trust Officer Assistant; Administrative Specialist 1 (personal services) Conservatorship Secretary; Administrative Specialist 1 (personal services) Public Affairs Manager; Principal Exec/Manager D (personal services) Public Affairs Specialist 2; Public Affairs Specialist 2 (personal services) PROGRAM UNITS // OREGON VETERANSâ&#x20AC;&#x2122; HOMES PROGRAM // POLICY OPTION PACKAGE102

236

2017-2019 LEGISLATIVELY ADOPTED BUDGET

$ 168,613 $ 156,265 $ 280,732 $ 319,794 $ 1,721,727 $ 4,125,737

LF LF LF LF LF LF

Personal services (amount includes a Veterans’ Home PS adjustment) Service and supplies Total OF reduction for personal services and services and supplies

GRAND TOTALS $ 1,557,000 $ 2,699,418 $ 1,806,867 $ 6,063,285

LF LF LF LF

TOTAL Special Payments TOTAL Personal Services TOTAL Services and Supplies TOTAL Combined

($1,882,260) ($ 455,530) ($2,337,790)

OF OF OF

TOTAL Personal Services Reduction TOTAL Services and Supplies Reduction TOTAL Combined Reduction

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nonlimited expenditures The Department uses two primary types of nonlimited expenditures in carrying out its programs for veterans. These are described below. Loan And Bond Nonlimited Expenditures The loan-related expenditures in this category are those that are charged back to the loan balances and eventually collected. Typical expenditures are property taxes, hazard insurance, foreclosure and state-owned property costs, and other costs incurred to protect the Stateâ&#x20AC;&#x2122;s interest in property used to secure a loan. Also included in this expenditure category are loans made to veterans. The bond-related expenditures in this category are incurred in planning for and issuing bonds. Typical costs involve bond counsel and attorney fees, State Treasury bond fees, and fees relating to preparing bond disclosure documents. These costs are directly tied to the number of issues and the size of each issue. Debt Service Nonlimited Expenditures These expenditures relate to the principal and interest payments due to those who invested in Department bonds and any net interest rate swap payments made to swap counterparties.

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capital construction POLICY OPTION PACKAGE 105 Veterans’ Home Capital Projects – Package 105 (Agency priority # 5) Purpose An important ODVA five-year objective to better serve Oregon veterans is to “build a better, stronger and more durable department for future generations.” This policy option package invigorates ODVA’s core operations through capital projects at the Oregon Veterans’ Home in The Dalles and at the Oregon Veterans’ Home in Lebanon that strengthen the Veterans’ Homes and ultimately, the skilled nursing care ODVA provides to Oregon veterans. ODVA strives to create a secure and safe environment for the state’s more vulnerable veterans. Three key initiatives in this package support this plan. First, ODVA will focus resources to recruit and retain licensed nursing staff and certified nursing assistants at The Dalles Oregon Veterans’ Home. Second, it will upgrade the wireless infrastructure to maintain efficient use of the electronic health records system, installation of additional security cameras and equipment and replace the 20-year old phone system with VOIP (voice over internet protocol, a form of technology that allows for speech communication via the Internet) at The Dalles. Third, it will expand parking capacity at the Oregon Veterans’ Home in Lebanon to accommodate space for staff, family, community visitors, volunteers and overflow for special events. How Achieved: The Dalles Veterans’ Home – Capital Projects Staff Recruitment and Retention. Recruiting and retaining certified nursing assistants (CNAs), for any skilled nursing facility is a challenge. The Veteran’s Home in The Dalles faces even more recruitment challenges because it is in a rural community with a limited candidate pool, and because of the competition for candidates from other facilities or other job opportunities, and the limited availability of training and certification opportunities from the local community college. In addition, the lack of daycare options for staff adds to the recruitment, retention and absenteeism challenges. The Dalles Home has faced recruitment and retention problems for a number of years. Over the years, the Veterans’ Home has made numerous, but unsuccessful, attempts to partner with the local community college to provide timely and effective training and certification for the certified nursing assistants (CNAs).

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Rules and regulations require a skilled nursing facility to maintain a nursing staff that is “sufficient in quantity and quality to provide nursing services for each resident as needed.” The regulations specify the ratio of CNAs to the total census. The result of the recruitment and retention problems in The Dalles are serious. A significant amount of money is spent on overtime or premium pay for the limited number of CNAs and the lack of a consistent pool of trained staff impacts the daily lives of veterans and the quality of their 24- hour care. The purpose of this request is to enhance the recruitment and retention of CNAs that will ultimately result in better 24-hour care now and in preparation for a new generation of veterans to come, especially baby boomers and veterans from more current conflicts. To solve this problem, ODVA proposes a classroom building and a daycare building on the property. •

Classroom Building. Constructing an on-site classroom, where training would be conducted by qualified existing Veteran’s Home staff, would provide space for training of certified nursing assistants and to provide continuing medical education (CME) for all staff. The ability to provide on-site training will significantly enhance the recruitment and retention of critical staff at the Veterans’ Home.

•

Daycare Building. Constructing an on-site daycare building would provide childcare options for Veteran Home staff, with the goal to reduce staff absenteeism due to daycare issues or sick children.

Phone, Wireless Infrastructure and Security Upgrades. The existing phone system and the wireless infrastructure at the Veterans’ Home need to be replaced with 21st century technology. As technology has evolved, The Dalles Veterans’ Home has continued to provide the highest quality of care to veterans, in a secure, safe environment. However, replacing the nearly 20-year old phone system with a modernized VOIP (voice over internet protocol) system is critical to reliable and efficient communication at the Veterans’ Home. The existing wireless infrastructure must also be upgraded in order to use electronic health records. Additionally, the Veterans’ Home requires security upgrades including expanded security cameras, which would enhance safety for residents, staff and visitors. Lebanon Veterans’ Home – Capital Project Parking at the Lebanon Veterans’ Home has reached maximum capacity. In 2015, ODVA purchased an adjoining property in anticipation of addressing facility parking. The master plan for the adjoining property is to construct a 120-space parking lot, which would connect via a walking bridge to the west side of the Veterans’ Home. This additional area would provide parking space for staff, volunteers’ and overflow for special events. CAPITAL BUDGETING // PACKAGES (107BF02) // POLICY OPTION PACKAGE 105

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Staffing Impact: No staffing impact. Quantifying Results: The Dalles Veterans’ Home – Capital Projects Staffing for The Dalles Veterans’ Home remains a challenge. Over the past year, the Home has had an average of 3 Licensed Practical Nurse/Registered Nurse (LPN/RN) and 11 Certified Nursing Assistants (CNA) positions remain open each due to lack of qualified applicants. Additionally, in 2016, the Home has had to pay more than $25,000 in bonus shift payments in order to maintain adequate coverage. Construction of the educational and daycare buildings is expected to reduce the number of open positions, decrease employee turnover – which would be less costly in the long-run and provide a higher quality of care. Lebanon Veterans’ Home – Capital Project There are currently 128 parking spaces currently available at the Lebanon Veterans’ Home. The proposed additional 120-space parking lot would nearly double the number of existing spaces and provide adequate capacity to meet the demand for parking space for staff, volunteers’ and overflow for special events. Revenue Source The Dalles Veterans’ Home – Capital Projects $1,150,000 Sale of Bonds One classroom building, one daycare building, telephone system, wireless and security upgrades Lebanon Veterans’ Home – Capital Project $1,300,000

Sale of Bonds

120-space parking lot

TOTAL REVENUE SOURCE $2,450,000

Sale of Bonds

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Affirmative Action Report In accordance with Executive Order No. EO 08-18 the department has reviewed its Affirmative Action Policy and programs, and with this report, is advising the Governor of the results and status of the policy and programs. The Department’s Affirmative Action Plan and goals are routinely reviewed and discussed by the senior staff several times a year. The Department has reduced staff from a high of 612 in 1980 to 79 as of June 30, 2016. All vacancies are carefully evaluated to determine if it is necessary to fill them or if the agency can absorb the workload through increased efficiencies. Since the department’s last biennial Affirmative Action Budget Report (6/30/14), total staff has increased by 9% percent (from 72 to 79 employees). Currently, 57% of agency employees are women. Seven out of the 20 management staff are women. Employees with disabilities, who chose to disclose this voluntary information, currently comprise 10% of the Agency workforce. 6% of Agency employees are persons of color. The agency continues to strive to meet goals in all job categories through ongoing training and information to agency staff on affirmative action plans and goals. The agency conducts ongoing reviews of recruitment efforts to identify any barriers that exclude or discourage a diverse candidate pool, with emphasis placed on identification of resources to increase outreach and advertising efforts including informal networking, personal contact, employee cross-training, developmental opportunities, and wide-spread notification—both internal and external. All department managers are to ensure that open recruitments are comprised of a diverse and representative pool of applicants; and will work with employees to enhance opportunities for upward mobility so all employees are prepared for advancement. The Director of the Oregon Department of Veterans’ Affairs is a strong advocate of persons with disabilities as is evidenced both by outstanding service to the public in this area and in opportunities for employment. The Agency continues as a training site for the U.S. Department of Veterans’ Affairs work-study program serving the disabled veteran community. The department will continue to provide any reasonable accommodation necessary to allow an employee with a disability full participation in the work force. The director continues to work with senior staff on succession management planning. Through these efforts it is realized that achieving parity is difficult in a small agency with limited openings each year, but we remain truly committed to achieving and retaining a representative and diverse work force.

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2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

417

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

418

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

419

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

420

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

421

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

422

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

423

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

424

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

425

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

426

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

427

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

428

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

429

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

430

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

431

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

432

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

433

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // ANA101A

434

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

435

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

436

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

437

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

438

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

439

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

440

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

441

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

442

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

443

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLBUDCL

444

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAGYCL

445

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAGYCL

446

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAGYCL

447

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

448

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

449

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

450

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

451

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

452

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

453

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

454

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLWSBUD

455

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

456

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

457

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

458

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

459

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

460

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

461

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

462

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

463

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

464

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

465

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

466

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

467

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

468

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPLAUDIT1

469

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPFISCAL

470

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPFISCAL

471

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPFISCAL

472

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPFISCAL

473

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPFISCAL

474

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPFISCAL

475

2017-2019 LEGISLATIVELY ADOPTED BUDGET

SPECIAL REPORTS // PPDPFISCAL

476