Dear Friends,

Thanks to all of you who took the time to answer my survey last week. If you haven’t had a chance to fill it out, I hope you will do so now. While many of the budgetary questions were decided this week, I appreciate your comments and directions in setting my 2009 priorities.

Join Rep. Carolyn Tomei and Speaker of the House Jeff Merkley for a Legislative Review, Monday, March 24, 7:00 – 8:30pm at Milwaukie City Hall, 10722 SE Main Street, Milwaukie. Learn about the accomplishments of the 2008 Supplemental Session and provide input into priorities for 2009.

Because we were fiscally cautious last session, the lower economic forecast has NOT resulted in massive cuts. We are able to withstand the downturn in state revenues, make some additional targeted investments, and leave a healthy $32 million ending fund balance. Highlights of the budget revision include:

• $12.2 million for senior citizens programs including adult foster care, assisted living centers and Oregon Project Independence (which allows seniors to remain in their own homes);
• $7.3 million for additional child welfare workers to address the foster care crisis in Oregon;
• $6.6 million for the Oregon State Hospital;
• $2.5 million for water supply infrastructure;
• $2 million to protect affordable housing;
• $500,000 to help local governments pay interest on federal disaster relief loans; and
• $485,000 for 39 additional state troopers bringing us to 24/7 state trooper coverage.

These budget additions focus on the immediate needs of Oregon’s most vulnerable children and seniors while also looking toward long-term economic growth.

Many of you identified protecting affordable housing as a top priority for this 2008 legislative session. I’m pleased to report that we DID provide additional resources for affordable housing and those dollars will be augmented even more through matching funds. With $1 million in General Funds and $1 million from the Department of Housing and Community Services, we established the Housing Acquisition Fund, a revolving loan fund to provide financing to maintain existing rent-subsidized housing. It is estimated that this $2 million investment will leverage an additional $26 - $46 million in private, philanthropic and local public funds. In addition, we also expanded the Affordable Housing Tax Credit, creating new capacity for state tax credits to encourage long term affordable housing finance. Both measures received bipartisan support and work together to help low-income Oregonians in all parts of the state.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Â

This week the House passed HB 3603A which increases mortgage protections for homeowners. HB 3603A restricts prepayment penalties on subprime mortgages and requires fuller disclosure in the mortgage market.  Prepayment penalties often catch families in a mortgage trap. Once their interest rate resets, they can’t afford to make their mortgage payment, but they also can’t afford the prepayment penalty to get out of the loan. Foreclosure becomes the only option. HB 3603A also requires mortgage brokers to disclose if they receive payment for steering borrowers into a specific loan. Many mortgage applicants have no idea that they are not getting the best rate as a result of this common practice. This bill does NOT answer all the concerns of vulnerable borrowers, but it does provide significant protections. The bill now moves to the Senate for their consideration.

One of the advantages of holding this Supplemental Session is having time for informational hearings about creative new programs. During our Transportation Committee meetings, we heard from the Department of Transportation’s Sustainability Program. In keeping with Oregon’s sustainability goals, ODOT is developing two energy related, first-of its-kind, public partnerships.Â

The Solar Highway Initiative proposes to secure private investment, installation and operation of photovoltaic solar panels along our roads and highways to fuel electricity requirements with green energy. They estimate that this public private partnership along 120 miles of highway will be sufficient to provide the 45 million kilowatt hours annually needed to light Oregon’s highways, providing renewable clean energy at no additional cost to taxpayers.

ODOT is also pursuing an Alternative Fuels Corridor.  In order for motorists to embrace alternative fuels and vehicles, fueling stations must be readily available. The Alternative Fuels Corridor Initiative will give a boost to the development of an alternative fuels distribution network. The department proposes to use public private partnerships to build evenly spaced alternative fuel stations, every 40 miles or so, on ODOT property close to I-5. Having a reliable source of fuel will give consumers the assurances they need to switch to greener vehicles; and, as demand for alternative fuels grows, natural market activity will increase suppliers.Â

These two new programs, the Solar Highway Initiative and the Alternative Fuels Corridor, are keeping Oregon in the national eye as a cutting edge state for sustainability. For more information, click here.

If you are receiving this weekly update for the first time, it is because I continue to build my database to reach constituents. I add the e-mail addresses of many constituents who contact me electronically or otherwise. I will update you on activities both in Salem and in our district. I also post these notices on my website at http://www.leg.state.or.us/tomei/home.htm.Â

Please e-mail me at rep.carolyntomei@state.or.us if you have questions, wish to express concerns or share issues important to you, or if you would like to be removed from the mailing list.

As always, thank you for your interest and continued involvement in our communities and the legislative process.