OLCC Lowers County Liquor Revenue Projections by $12.9 Million

OLCC Lowers County Liquor Revenue Projections by $12.9 Million

In a February presentation to a legislative budget subcommittee, the Oregon Liquor and Cannabis Commission (OLCC) revealed that recent liquor sales trends have not kept pace with expectations, and associated revenue projections are being revised downward. 

According to the commission, sales of distilled spirits in Oregon grew steadily over the past couple of decades, and then sped up significantly between 2019 and 2021. Experts anticipated those accelerated growth trends would continue through 2023-25. However, as 2023-25 data has become available, the projected growth has not materialized. Rather, growth trends seem to be flattening. OLCC notes that flattening trends in alcohol consumption in Oregon align with national trends. 

Slower liquor sales will translate into significantly lower county revenues for 2023-25, the OLCC said. Their prior forecast anticipated counties would receive $64.2 million for the biennium, but their new forecast indicates counties should expect only $51.3 million.

It isn’t known whether flattening sales trends reflect lower alcohol consumption, or whether consumers are just choosing less expensive spirits. However, the fact that alcohol consumption surged during the pandemic was widely reported, so the recent flattening trend could indicate that overall sales trends are returning to normal.

Contributed by: Michael Burdick | legislative affairs manager

Counties Could Bring in More PILT Funding from New SRS Road Districts Law

Counties Could Bring in More PILT Funding from New SRS Road Districts Law

The Oregon Department of Administrative Services (DAS) has begun implementation of an innovative policy to support increased revenue for public lands counties. 

Under House Bill 2174 (2021), upon request of a county, DAS is required to credit forest reserve funds that would otherwise be credited to a county road program, to a separate public entity created by the county.

This policy, developed by the Association of Oregon Counties (AOC) in partnership with Representative Mark Owens (R-Crane), provides flexibility for county governments to increase federal dollars from Payment-in-Lieu-of-Taxes (PILT) to support critical needs in rural communities by diverting the 75 percent of U.S. Forest Service (USFS) Secure Rural Schools (SRS) Title I payment to a separate public entity. 

Funding credited to a public body under the new law is to be used in the same manner and subject to the same restrictions that would have applied to the funding under the previous distribution model, including, but not limited to, the statutory requirements related to a county road fund.

Counties may now submit requests to DAS by emailing DAS.Distributions@das.oregon.gov with the below information. The deadline for submission to DAS is March 1, and DAS expects disbursements from the federal government in April.

Information Needed:

  • W9 – Include the TIN
  • LGIP for new agency
  • Memo to DAS, asking to add the LGIP account to the vendor profile
  • County Ordinance declaring the road agency
  • County Intergovernmental Agreement

DAS Staff Contact:
Laura Burnett
971-719-3183
DAS.Distributions@das.oregon.gov

Eligible public entities include:

  • An intergovernmental entity created by agreement under ORS 190.003 to 190.130,
  • A county road district formed under ORS 371.055 to 371.110, or
  • A service district for roads established under ORS Chapter 451.

Jefferson County and Klamath County have passed local ordinances in accordance with HB 2174. These counties have offered to share their county ordinances and intergovernmental agreements (see links below) to serve as a reference for other countries exploring the new law. 

Additional resources and information on road district formation are available in the AOC County Road Manual (Chapter 3: Road Revenue, 3.150 County Service District, 3.170 Intergovernmental Transportation Agreements, and Chapter 12: Districting for Road Purpose). 

As an important note, SRS payments and PILT payments fall at different times on the calendar, and SRS payments must be allocated to a road district before increases in PILT can be realized. Once a road district is set up, and DAS is notified, they will set up a new vendor profile for the new district, as the payee, changing the payout from the county to the new district. DAS accounting staff will ensure the apportionment among counties of money received from federal government forest reserves is amended in the distribution formula pursuant to ORS 293.560 and ORS 294.060.

Contributed by: Jordan Cole | AOC County Road Program analyst

AOC/LOC Transportation Funding Forum Update 

AOC/LOC Transportation Funding Forum Update 

The Association of Oregon Counties (AOC) and League of Oregon Cities (LOC) continued the Transportation Funding Forum meeting series in January (watch recording), featuring presentations from Governor Kotek’s transportation policy staff and transportation stakeholders in the construction industry, the environmental community, transit, and freight carriers. The discussion explored the range of interests and priorities in the future of Oregon’s shared transportation system.

The forum series will continue through 2024 to further coordination, collaboration, and shared understanding of local government interests in the future of Oregon’s transportation funding system and increase transparent, partnership-oriented communication with state agencies, stakeholders, and the legislature. Upcoming forums will take deep dives into national trends in the future of transportation funding, explore local revenue options, more specific needs related to safety, bridges, and the multimodal system.

The kickoff forum meeting in August (watch recording) provided a detailed overview of federal, state, and local funding mechanisms and how these revenue tools work together to fund the current system. The October meeting (watch recording) featured presentations from city and county road departments to demonstrate the range of local jurisdiction transportation budgets and varied regional project priorities.

Contributed by: Mallorie Roberts | AOC legislative affairs director

AOC Priorities for the 2024 Legislative Session

AOC Priorities for the 2024 Legislative Session

The 82nd Oregon Legislative Assembly will convene on Monday, Feb. 5, for a 35-day session. Legislators will return to the Oregon State Capitol, still under major construction, with the historic wings remaining closed. Association of Oregon Counties (AOC) members are encouraged to join policy steering committee meetings on Feb. 2, and Feb. 5, to learn about and weigh in on legislative concepts impacting counties. Members can expect email communications from AOC’s legislative affairs department with timely updates and action alerts related to high priority bills.  

The AOC legislative affairs department and membership will focus their advocacy during the 5-week session on the following top policy priorities identified by the AOC Legislative Committee.

Community Development

  • Advocate for a fast-track process for limited urban growth boundary expansions that significantly increase affordable and workforce housing in all communities experiencing shortages of buildable land. (LC 19 – Governor Kotek’s housing bill)

    Contact: Legislative Affairs Manager Branden Pursinger, Natural Resources and Land Use,
    bpursinger@oreogncounties.org

Governance and Revenue

  • Address problems arising out of the U.S. Supreme Court’s decision in Tyler v. Hennepin County  — limit county legal liability and create a standard process for how foreclosure surplus claims are handled. (HB 4056 – introduced by Representative Conrad)

    Contact: Legislative Affairs Manager Michael Burdick, Governance and Revenue,
    mburdick@oregoncounties.org

Health and Human Services

  • Establish a statutory process and schedule for a cost study of core behavioral health services (local services required in statute). (LC 115 – introduced by Representative Nosse)
  • Mitigate liability risk shift to counties and local system providers for mandated populations (aid and assist, civil commitment, and guilty except for insanity).

    Contact: Legislative Affairs Manager Jessica Pratt, Health and Human Services,
    jpratt@oregoncounties.org

Natural Resources

  • Protect and enhance county authority, funding, and flexibility to support management policies and locally focused policy making processes across the Natural Resources portfolio.

    Contact: Legislative Affairs Manager Branden Pursinger, Natural Resources and Land Use,
    bpursinger@oreogncounties.org

Public Safety

  • Increase state investment in community corrections funding for the remainder of the 23-25 biennium.
  • Elevate the county voice in Measure 110 reform, supporting policy modifications that prioritize engagement in substance abuse treatment, provide sufficient funding for county services, and strengthen tools the criminal justice system can use to fight illegal drug use and sales.

    Contact: Legislative Affairs Manager Jen Lewis-Goff, Public Safety and Veterans,
    jlewisgoff@oregoncounties.org

Transportation

  • Advocate for the statutory authority for counties to charge cost-recovery fees for permits issued to utilities for work in the county road right of way. (SB 1566 – Joint Committee on Transportation committee bill)

Contact: Legislative Affairs Director Mallorie Roberts, Transportation, mroberts@oregoncounties.org

 

Counties Inform Legislature on Foreclosure Process

Counties Inform Legislature on Foreclosure Process

Among AOC’s priorities for 2024 is a bill to be known as HB 4056 that will create an orderly process to get refunds to property owners in cases where a foreclosure sale generates proceeds that exceed the property’s tax debt, penalties, and costs related to foreclosing. The bill solves logistical problems counties face in the wake of Tyler v. Hennepin County, a recent U.S. Supreme Court decision that invalidated Oregon law dictating how counties handle such cases. 

Most Oregonians are unfamiliar with the foreclosure process, and it has been years since the legislature made major changes to laws governing the process. Getting a bill about such a complicated topic over the finish line in a short session will be a heavy lift. For HB 4056 to win passage, dozens of legislators will need to have a solid understanding of how foreclosure works in Oregon and counties’ responsibilities surrounding it.

AOC was happy to secure time at the joint meeting of the Interim House and Senate Judiciary Committees on Jan. 12, to boost lawmakers’ understanding of the foreclosure process. AOC arranged for county subject-matter experts to present to lawmakers about what state law requires counties to do when people fail to pay their property tax on time, who tends to get caught up in foreclosure proceedings and why, what sorts of property tends to be involved, and the many ways counties work toward positive outcomes under sometimes very difficult circumstances. Marion County Assistant Legal Counsel Scott Norris, Josephine County Assistant Legal Counsel Stephanie Nuttall, Lane County Assistant County Counsel Emily Vario, Lane County Property Manager Kellie Hancock, and Deschutes County Property Manager Kristie Bollinger presented at the meeting and answered questions from lawmakers. 

Their presentation is available for download here, and a video of the meeting can be viewed here (the presentation begins at the 48 minute mark).

January “Legislative Days” (Jan. 10-12) was the last opportunity to communicate with lawmakers on-the-record before Oregon’s “short” legislative session begins on Feb. 5, setting off a mad dash to move legislation before the final gavel falls a few short weeks later (March 10, at the latest). 

While many of the bills to be introduced are still under wraps, some are starting to trickle out. AOC legislative staff have been furiously preparing for the sprint ahead, working to pin down details of lawmakers’ plans, and doing our best to ensure AOC priority legislation is in the best possible position to find favor with lawmakers. 

Contributed by: Michael Burdick | AOC legislative affairs manager

Joann Hendrix Retires After 30 Years of Service to AOC

Joann Hendrix Retires After 30 Years of Service to AOC

Integrity. Grace. Humor. These are the traits described by current and former staff about their long-time coworker, Joann Hendrix.

After 30 years of dedicated service to AOC, Joann is retiring at the end of the year. Joann joined AOC in 1994 as a management assistant, supporting the County Road Program and the Oregon Association of County Engineers and Surveyors (OACES), in addition to daily office activities and special projects at AOC.  

Former County Road Program Manager Pat Ehrlich was on the hiring team when she joined AOC. According to Ehrlich, she learned fast and routinely anticipated the department’s needs. “She truly helped me do my work more efficiently as she could proceed without lots of direction.  She was well respected by those in the counties our program worked with.”

During her tenure at AOC, Joann worked in different capacities at AOC, serving as management assistant for several years, before settling into her most recent position as senior administrative manager focusing on event planning and travel for the organization. In this role, Joann supported a broad array of association activities and events — planning conferences, meetings, special events, and travel for AOC staff, the AOC Board of Directors, and affiliate and associate member organizations. She also worked as the OACES administrative manager overseeing the OACES membership, bookkeeping, budget, and facilitation of all meetings and conferences. 

Executive Director Gina Nikkel has had the privilege of working with Joann for the last thirty years as a county commissioner, AOC staff, and now the executive director. “When I came back to AOC as the executive director, I was thrilled that Joann was still here serving our members with professionalism, grace, and dedication,” Nikkel said. “It’s hard to lose a long-term employee that has served AOC so well, and I wish her well in her retirement.”

In all her positions and throughout her career at AOC, she was widely known to be attentive, reliable, and conscientious. Whether it was remembering a guest who preferred hot chocolate over coffee in the morning, or which restaurant in Washington D.C. had the best steak, to leaving small treats for members and staff in their rooms, Joann always made sure everyone was taken care of at events. 

“There wasn’t a problem she couldn’t solve. Her vast knowledge of the state, where to stay, where to eat, and renting cars was invaluable,” said former AOC staff member Eric Schmidt. “Getting us back and forth from Washington, D.C. during the forest payment days and getting us to NACo conferences was quite the task and Joann always came through.” 

Joann’s favorite aspect of her job was planning meetings and the annual conference. She liked ensuring members were taken care of and having a good time. Staff will miss Joann’s stories from her time with AOC over the years. From the beginning days of product tasting held in various hotel rooms down a hallway at the Red Lion Hotel Pendleton, to the AOC “band” —  consisting of county elected officials, county staff, and even some AOC staff – performing once a year during the annual conference, Joann has seen it all.  

“AOC has been like a family,” Joann said. “I will miss the camaraderie, teamwork, and the friendships I’ve made over the years.”

In true Joann fashion, she said her retirement plans include “learning how to be retired.” Judging from her past work, she will excel at it just like everything else. 

Contributed by: Erin Good | AOC communications coordinator