Editor's note: This is the first of a multipart series on HB 5202, the budget bill for the 2022 Legislative Session.

To the average Oregonian, there just isn’t enough time to scour through a 100-page bill and decipher if your interests are being protected. HB 5202 was the Emergency Board and budget reconciliation bill for the 2022 short session. The 100-page omnibus bill -- from the Joint Committee on Ways and Means, co-Chaired by Elizabeth Steiner Hayward -- makes changes to the 2021-23 legislatively adopted budget and implements 2022 budgetary decisions. The bill contains an 81 page summary of adjustments and rebalancing of agency budgets.

Overall, HB 5202 includes additional spending of $1.4 billion General Funds, $82.1 million Lottery Funds, $2.1 billion Other Funds, and $2.2 billion Federal Funds for a total of $5.8 billion. The bill makes various appropriations, dis-appropriations, and expenditure limitations. It also appropriates General Funds to the Emergency Board for six new special purpose appropriations and adjusts 12 previously approved special purpose appropriations in the amount of $419,778,807.

The state seems to be flush with money, but citizens aren’t feeling it and inflation is having an additional impact. While the increase in salaries for legislators stalled out, the emergency special purpose appropriations for state employees released $198.8 million to cover the union negotiated increase of 6.95% for 2021-22 biennium.

How flush the state is evident by approximately 164 projects funded with one-time payments from General Funds. But maybe what is more concerning are the programs that received additional funding that will increase the annual budget at a higher level.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

Voters should research the fiscal impact to the General Fund when passing a ballot measure. The Psilocybin Program was established by Ballot Measure 109 in 2020. The program was funded by a one-time General Fund of $4.1 million plus 10 positions to fund the second year of costs. This increase is in addition to first year funding of $2.2 million General Fund and 14 positions. That is a biennium budget going forward of over $10 million. Program services take effect January 1, 2023, at which time it will start collecting Other Fund revenues from licensing fees and tax revenue from the sale of psilocybin products. Just as cannabis has grown into a massive agency, psilocybin is headed toward the same outcome.

Likewise, Ballot Measure 110 passed by voters in 2020 deals with the use of illegal drugs that received funding for 77 additional positions for the behavioral health program appropriating an additional $130.2 million. Some additional funding comes from Other Funds, which only means the cost is collected from the public in less transparent ways outside of taxing. Removing criminal penalties for low-level drug possession has increased the need for a behavioral health program.

Remember the lottery incentives the Governor offered to get people to get vaccinated? Apparently, she didn’t follow through on funding payments. The bill uses $12.4 million in federal Coronavirus Relief Funds unspent by the Health Systems Division in 2019-21 to pay for one-time expenses related to the agency’s response to the COVID-19 pandemic. These expenses include $3 million for vaccine incentives and lottery payments, which were announced in summer 2021; $9 million for incentives; largely hiring and retention bonuses, for the behavioral health workforce; and $0.4 million for health equity grants. These funds were transferred to OHA and are budgeted as Other Funds.

There is a lot to dig through so watch for part 2.


--Donna Bleiler

Post Date: 2022-03-11 10:21:02

Last Update: 2022-03-11 10:44:03