Panel approves LFO budget for Oregon Board of Dentistry, endorses large anesthesia fee increases

The Joint Committee on Ways and Means Education Subcommittee approved the LFO recommended 2025-27 budget for the Oregon Board of Dentistry, endorsing fee increases and other cost-cutting measures meant to address a projected revenue shortfall.

The LFO recommended budget of $4,690,136 in other funds and 7 positions (7.0 FTE) was presented to the subcommittee and adopted as the dash 1 amendment. The proposal includes eliminating a 0.62 FTE part-time health-care investigator, raising multiple licensing and anesthesia-permit fees, and a one-time $100,000 professional services increase to retain an independent contractor investigator.

The LFO analyst summarized the recommendation: "The 2527 LFO recommended budget for the Oregon Board of Dentistry is $4,690,136 other funds and includes 7 positions and 7 FTE. The LFO recommended budget represents a decrease of $327,033 or 6.5% below the current service level." The presentation listed several adjustment packages, including a revenue package to increase renewal and anesthesia-permitting fees.

Most of the fee changes were detailed by the LFO analyst: "The dental specialty renewal fee will increase from $436 to $486. The dental therapy renewal fee will increase from $251 to $275. The dental hygiene renewal fee will increase from $251 to $275. The anesthesia permit deep sedation fee will increase from $75 to $400. The anesthesia permit general anesthesia fee will increase from $140 to $400. And lastly, the anesthesia permit moderate fee will increase from $75 to $200." The analyst said the fee increases, ranging from 9.5% to 433%, are projected to raise an additional $409,320 in other-fund fee revenue for the 2025-27 biennium and that anesthesia permitting fees had not been increased since 1999.

The package that reduced expenditure limitation noted a revenue shortfall and eliminated the part-time investigator position; to partially replace investigative capacity the LFO recommended a one-time $100,000 increase to professional services to hire an independent contractor investigator. The presentation also included a package to transfer HR and payroll services to the Department of Administrative Services shared financial services and a package to add a gov-delivery listserv upgrade estimated at $4,127 one-time and $20,696 ongoing per biennium.

Representative Wright expressed opposition to the fee increases during the motion and vote: "I think we're we're costing our businesses out of business. So at this point because of that I will be a no." The committee then adopted the dash 1 amendment and moved SB 5512, as amended, to the full Ways and Means Committee with a "do pass" recommendation; the clerk recorded a roll-call that included recorded yes votes and Representative Wrightopposing. The motion carried.

The LFO also recommended adjustments to two key performance measure targets tied to the board: increasing KPM Number 2 from 7 months to 8 months (reflecting the investigator reduction) and raising KPM Number 4 from 85% to 90% based on prior performance. The committee approved the KPM changes.

Context: LFO materials presented to the subcommittee compared the recommended budget to the 2023-25 legislatively approved budget and the current service level, and the analyst warned that without growth in the number of licensees the board may need another fee increase in the 2027-29 biennium.

The committee closed the work session on SB 5512 after adopting the LFO recommendations and moving the bill to the full committee.