Tom Henderson//May 31, 2013//
Hearing Room H-178 has been a busy place at the State Capitol Building in Salem lately. People from around the state have trooped before the Joint Ways and Means’ Capital Construction Subcommittee with PowerPoint presentations, witnesses and written testimonies.
They all want millions of dollars in state money for construction projects that they assure lawmakers are critically important.
State Sen. Fred Girod, R-Stayton, co-chairman of the subcommittee, said he has no reason to doubt these people. However, there’s a problem.
“We have twice as many projects before us as we have money to fund,” Girod said.
From Coos Bay to Ontario, he said, everybody wants a big slice of a dwindling amount of pie. With everyone making a persuasive case for each project, deciding where the money goes requires a certain amount of wisdom … among other things, according to state Sen. Betsy Johnson, D-Scappoose, who serves as co-vice chairwoman of the Ways and Means Committee.
“It’s a little bit of politics,” she said. “It’s a little bit of personal relationships. It’s a bit of good policy. It’s a little bit of momentum building. It’s a little bit of a lot of stuff. I don’t know what the tenor of the committee is this session. It’s all pretty orchestrated. Most of the decisions are made by the time a project gets to the committee.”
Dale Stowell, the director of institutional advancement at Linn-Benton Community College, balked at Johnson’s suggestion that funding decisions have already been made behind closed doors.
His community college is being considered for $8 million in state money to help build a new center for training nurses and other health care professionals. When campus representatives came from Albany to make a presentation before the subcommittee, Stowell said, they took nothing for granted.
“It was definitely a process and not a done deal,” he said. “We’re waiting like everyone else.”
Linn-Benton’s proposal is one of the big-ticket items on a list of 10 community college capital construction projects endorsed by Gov. John Kitzhaber. The governor’s list also includes 22 projects at Oregon’s other colleges and universities. The entire list carries a $242 million price tag.
However, Stowell said simply being on the list doesn’t mean funding is automatic.
“Being on the governor’s list puts us in a strong position,” he said. “If you’re not on the list, you’re going to struggle to have your project approved. However, the legislators pass the capital budget, so when those hearings occur, we want to do our part to mark sure our voices are heard. It’s not rhetorical.”
Legislators are definitely not showing their cards. House Majority Leader Val Hoyle, D-Eugene, and Reps. John Huffman, R-The Dalles, and Nancy Nathanson, D-Eugene, and Greg Smith, R-Heppner, sit on the subcommittee along with Senate President Peter Courtney, D-Salem, and Sen. Richard Devlin, D-Tualatin.
None would comment on how the subcommittee makes its decisions when there are more projects than money.
House Speaker Tina Kotek, D-Portland, is co-chairwoman of the subcommittee. She also declined to be interviewed, but issued a formal written statement.
“There are a number of important projects up for consideration,” Kotek said. “We’re looking for every opportunity to fund projects that will put people to work while strengthening our infrastructure for long-term economic growth. We also will prioritize projects that maximize our ability to help more Oregon students access a community college or university education.”
A report issued by Oregon University System officials stated that the $242 million worth of higher education projects advocated by the governor represent potentially 5,472 new jobs and $1.3 billion in economic output as well as $852 million in increased earnings.
However, universities and community colleges are not the only entities looking for construction money.
Kitzhaber proposes more than $1 billion for infrastructure improvements and other construction-related projects.
Under the governor’s proposed budget, there is $79 million for human services projects, $18 million for public safety projects, $11.7 million for natural resources-related projects, $26.8 million for judicial system-related projects and $16.8 million for administration-related projects.
Capital construction projects are presented in appropriation bills separate from agencies’ budget bills for ongoing operations. “Major construction” projects are distinguished from “capital improvements” based on a cost in excess of $1 million and must receive approval by the Legislature before the money is spent.
Capital improvements costing less than $1 million do not require legislative approval and are included in an agency’s operating budget.
Recommended major construction projects are included in one appropriation bill. Because of legislation passed in the 2011 session, individual Oregon University System construction projects no longer require separate approval by the governor and Legislature.
In his budget message, Kitzhaber stressed that the legislators would provide community colleges, universities and other organizations seeking construction money with matching funds. In other words, state taxpayers would not foot the entire bill. The individual entities would have to raise an equal amount of money on their own through private fundraising efforts.
Kitzhaber said the overarching priorities of his capital construction budget include:
• Improving Oregon University System and local community college facilities.
• Providing construction money for new state hospital facilities in Junction City.
• Making improvements to state office buildings, including establishment of a new statewide infrastructure fund that will be available to address deferred maintenance needs.
Although construction projects for roads and bridges do not require approval in the capital construction bill, bonding authority for the proposed Columbia River Crossing between Portland and Vancouver is authorized in the governor’s budget.