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

Digging through the 100-page HB 5202 omnibus budget bill from the Joint Committee on Ways and Means -- co-Chaired by Representative Dan Rayfield -- and the changes to the 2021-23 legislatively adopted budget, one thing stood out. State School Fund shows a negative $97,592,219 of General Funds.

Adjustments to the State School Fund is offset to align with SB 5703, the lottery revenue forecast for 2021-23. Oregon State Lottery funds are projected for the biennium and SB 5703 adjusts lottery accounts with a 5.3% increase. That amounts to an increase of $60,982,219 Lottery funds for the State School Fund.

Other Funds make up the difference of $36,610,000. They come from adjustments in the most recent forecast of the Corporate Activities Tax, and Marijuana related revenue. Taken together, the State School Fund is unchanged for the 2021-23 biennium. This shifting of funds uses the remaining available Lottery Funds.

The biggest impact is the sale of Elliott State Forest, authorized by, which establishes the Elliott State Research Forest removing it from the Common School Fund. The Common School Fund consist of state-owned unclaimed properties and the Elliot Forest, and resources are to be used to the benefit of schools. HB 5202 appropriates a one-time General Fund payment of $121,000,000 for the Elliott Forest. It is intended to satisfy the financial obligations to the Common School Fund appraised in 2016 at a value of $221 million. In 2019, $100 million was paid to the Common School Fund from the proceeds of certificates of participation that were authorized for issuance. Based on this appraisal, decoupling the Forest from the Common School Fund is estimated to cost $121 million. Once separated, the Elliot State Forest will transfer oversight to the newly established Elliott State Research Forest Authority as provided in HB 1546.

Satisfying the financial obligations to the Common School Fund is one of the tasks that must be completed prior to that HB 1546 becoming operative on January 1, 2024. The Common School Fund was projected to produce $133,059,086 for biennium 2021-23. It’s hard to visualize how $221 million investment will return over 50% in interest.

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

OSU currently estimates that they will need an initial investment of approximately $23 million for 2024-2026 for research equipment and the operational costs associated with starting up the research and operations programs. Federal funds are targeted for these costs, but if federal funds aren’t received, it is not known what entity would pay these costs. Additionally, OSU requests $17 million in capital costs for research and administrative facilities.

Up front, the Elliott State Research Forest has all the makings of another money guzzling department that will cost taxpayers a lot more than continuing it under the Common School Fund. It remains to be seen if OSU can make it productive, and whether the school fund investment will turn a profit.


--Donna Bleiler

Post Date: 2022-03-12 06:37:07

Last Update: 2022-03-14 10:42:23