Oregon Government Spending Limit and Excess Revenue for Unfunded Pension Liability Initiative (2018)
| Oregon Government Spending Limit and Excess Revenue for Unfunded Pension Liability Initiative | |
|---|---|
 | |
| Election date November 6, 2018 | |
| Topic State and local government budgets, spending and finance and Pension | |
| Status Not on the ballot | |
| Type Constitutional amendment | Origin Citizens |
The Oregon Government Spending Limit and Excess Revenue for Unfunded Pension Liability Initiative (#36) was not on the ballot in Oregon as an initiated constitutional amendment on November 6, 2018.
The measure was withdrawn by its petitioners on June 4, 2018.[1]
The measure would have established a government spending limit for public bodies, including the state and local governments, and require that revenue raised in excess of the limit be spent on reducing the state's unfunded pension liability if the unfunded liability is more than $1 billion.[2] As of 2017, Oregon had around $22 billion in unfunded pension liability.[3]
The measure's government spending limit would have been based on two factors—population growth and inflation. The formula for determining the spending limit would have been as follows:[2]
- (the public body's per capita government expenditures in the current budget × the public body's population for the coming budget period) × percentage change in the Consumer Price Index for All Urban Consumers.
Supporters of the initiative also supported the Definition of Raising Revenue for Three-Fifths Vote Requirement Initiative.[4]
Text of measure
Constitutional changes
- See also: Article IX, Oregon Constitution
The measure would have added a Section 16 to Article IX of the Oregon Constitution. The following text would be added:[2]
Note: Hover over the text and scroll to see the full text.
Annual Assessment of Unfunded Pension Liability
(1) By February 1 of each year, the State Treasurer shall determine and announce the unfunded pension liability, if any, of the state public employee pension system.
Annual Assessment Of Government Revenue
(2) If the State Treasurer announces that the unfunded pension liability is $1 billion or more, by March 31 of each year preceding the beginning of a budget period, a public body in this state shall determine and announce general government revenues available for expenditure in the coming budget period.
Population Plus Inflation Spending Limit Determination
(3) A public body shall determine the general government revenues available for expenditure in the coming budget period and adjust for growth using the factors of population and inflation.
Surplus Revenue Dedicated to Unfunded Pension Liability
(4) All general government revenues as of the end of the budget period collected in excess of the limits in Section 3 of this act shall be remitted to the State Treasure for the purposes of reducing the unfunded pension liability under the following conditions:
- (a) If the State Treasurer announces that the aggregate unfunded pension liability is $1 billion or more;
- (b) A public body shall make any remittance required by this section within 90 days of the end of the budget period.
Definitions
(5) As used in this section:
- (a) “General government revenue” means revenue other than revenue the expenditure of which is dedicated or restricted to certain purposes by a constitutional provision, charter or other law.
- (b) “Population and inflation” means a public body shall determine the general government revenues available for expenditure by multiplying the per capita expenditures of general government revenues in the current budget period by the population of the public body for the coming budget period, then adjusting the total by the percentage change in the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau of Labor Statistics of the United States Department of Labor or successor index from January 1 of the preceding year to January 1 of the current year. For the first budget period after the federal decennial census is available, the public body shall use as the population of the public body the population of the public body in the federal decennial census.
- (c) “Public body” means any entity in this state the employees of which are members of the state public employee pension system except for an entity that is a school district.
- (d) “Unfunded pension liability” means the aggregate unfunded actuarial accrued pension liability, if any, of the state public employee pension system using the actuarial cost allocation method and assuming a rate of return on investments of pension assets of no more than the average rate of return for the previous ten years.[5]
Support
Former Rep. John Davis (R-26) is a spokesperson for the effort to get this initiative and the Definition of Raising Revenue for Three-Fifths Vote Requirement Initiative certified for the ballot. In September 2017, Davis said a "pretty broad coalition of business groups, individuals and interest groups throughout the state that are concerned about tax increases" was working on the initiatives.[6] He said the groups involved are "not going to be a surprise to anyone."[4]
Opposition
Our Oregon, an organization that describes its mission as "fighting for economic and social fairness for all Oregonians," stated, "IPs 31 and 32 appear to attempt to permanently etch into the state constitution that large and out-of-state corporations will never pay their fair share and instead, as usual, big business will use public servants as their scapegoat. This is bad policy, and it’s insulting to the students, seniors, and Oregon families who have been waiting decades for real investment."[4]
Path to the ballot
On September 25, 2017, Juanita P. Lint and Michael G. Cosgrove filed the ballot initiative. Oregon requires that 1,000 signatures be submitted before a ballot title is drafted.[7] Lint and Cosgrove filed a similar version of this measure, Initiative 32, on September 12, 2017. That measure was withdrawn and refiled as the current measure, Initiative 36. The only differences between the two versions were technical changes that do not impact what the measure is designed to do if approved.
On February 6, 2018, the initiative was cleared for circulation following the submission of the initial 1,000 signatures required.[7]
Petitioners were required to collect 117,578 valid signatures to get their initiative on the ballot. Signatures for initiatives needed to be submitted four months prior to the election on November 6, 2018, which was July 6, 2018.
On June 4, 2018, the measure was withdrawn by its petitioners.[1]
See also
External links
Footnotes
- ↑ 1.0 1.1 Oregon Secretary of State, "Initiative 36," accessed June 2, 2018
- ↑ 2.0 2.1 2.2 Oregon Secretary of State, "Initiative 36," accessed October 3, 2017
- ↑ The Oregonian, "Governor appoints task force to cut pension deficit," May 31, 2017
- ↑ 4.0 4.1 4.2 The Register-Guard, "Business groups file initiative petitions to curb Oregon government spending," September 14, 2017
- ↑ Note: This text is quoted verbatim from the original source.
- ↑ The Oregonian, "Business interests file initiatives to limit tax increases, reduce pension shortfall," September 13, 2017
- ↑ 7.0 7.1 Oregon Secretary of State, "Initiative 36 Overview," accessed October 3, 2017
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