71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2300
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for Office of the Governor)
CHAPTER ................
AN ACT
Relating to school district local option equalization;
appropriating money; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + The Legislative Assembly declares that it is
the policy of this state to provide substantial equity in
opportunity among school districts in which electors support
local option taxes for primary and secondary education. This
policy will be accomplished by providing grant supplements to
those districts that enact local option taxes and that have lower
property wealth per student. + }
SECTION 2. { + (1) As used in this section:
(a) 'Extended ADMw' means the district extended weighted
average daily membership computed under ORS 327.013 (6).
(b) 'Local option tax rate' means the amount of local option
taxes imposed by the school district for the current fiscal year,
after compression under ORS 310.150 and after subtraction of the
amount of school district local option taxes that are distributed
to an urban renewal agency pursuant to ORS 457.440, divided by
the assessed value of the school district.
(c) 'School district' means a common or union high school
district.
(d) 'Target district' means the school district that, for the
fiscal year prior to the year for which grants are being
determined, had a total assessed value of taxable property per
district extended ADMw that was greater than all but 25 percent
of the school districts in this state for that prior fiscal year.
The Department of Education shall determine which school district
is the target district for a fiscal year, based on the total
assessed values of school districts reported to the Department of
Education by the Department of Revenue for the fiscal year prior
to the year for which grants are being determined under this
section.
(2) A school district shall receive a local option equalization
grant for a fiscal year:
(a) In which the school district imposes local option taxes
pursuant to ORS 280.040 to 280.145; and
(b) For which the total assessed value of taxable property per
extended ADMw of the school district for the prior fiscal year
does not exceed the total assessed value of taxable property per
extended ADMw of the target district for the prior fiscal year.
Enrolled House Bill 2300 (HB 2300-B) Page 1
(3) The amount of the local option equalization grant shall
equal the lesser of:
(a) The product of the local option tax rate of the school
district for the current fiscal year X (total assessed value per
extended ADMw of the target district for the prior fiscal
year - total assessed value per extended ADMw of the school
district for the prior fiscal year) X the extended ADMw of the
school district for the prior fiscal year; or
(b) The amount obtained by subtracting the local option tax
imposed by the school district for the current fiscal year, after
compression under ORS 310.150, from the lesser of:
(A) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the school district for the current fiscal
year; or
(B) $500 multiplied by the extended ADMw of the school district
for the current fiscal year.
(4) If the amount computed under subsection (3)(b) of this
section is zero or less, a local option equalization grant may
not be made to the school district for the fiscal year.
(5) As soon as is practicable after school districts have
certified property taxes to the assessor under ORS 310.060, the
Department of Revenue shall report to the Department of Education
a list of school districts certifying local option taxes for the
current fiscal year and the local option tax rates for those
districts. The amount of each local option equalization grant
shall be calculated by the Department of Education.
(6) If the election authorizing the imposition of a local
option tax is held after the start of a biennium in which the
local option tax is to be imposed, the local option equalization
grant for a fiscal year of that biennium shall be determined as
otherwise prescribed in this section, but may not be paid to the
school district until the first fiscal year of the next
succeeding biennium. + }
SECTION 3. { + (1) The Local Option Equalization Grants
Account is created in the General Fund.
(2) From the biennial legislative appropriation to the Local
Option Equalization Grants Account to fund the local option
equalization grant program described in section 2 of this 2001
Act, amounts necessary to make the grant payments are
continuously appropriated to the Department of Education for the
purpose of making these payments.
(3) The department shall make estimated local option
equalization grant payments to school districts entitled to such
payments under section 2 of this 2001 Act on or before March 31
of each fiscal year.
(4) If the estimated local option equalization grant payment
does not equal the actual local option equalization grant to
which a school district is entitled under section 2 of this 2001
Act, the department shall determine the increase or decrease
needed to correct the amount of the grant and may incorporate the
correction into a state school fund grant made to the district.
The correction may be made in any state school fund grant made
during the fiscal year in which the estimated grant payment was
made or in the next succeeding fiscal year.
(5) If the amount of moneys available in the Local Option
Equalization Grants Account is insufficient to make the payments
required under section 2 of this 2001 Act and this section, the
payments shall be proportionally reduced so that the state does
not accrue a debt in making these payments. + }
Enrolled House Bill 2300 (HB 2300-B) Page 2
SECTION 4. { + Sections 2 and 3 of this 2001 Act apply to
fiscal years beginning on or after July 1, 2001. + }
SECTION 5. { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Local Option
Equalization Grants Account, for the biennium beginning July 1,
2001, out of the General Fund, the amount of $600,000, which may
be expended by the Department of Education for the purposes of
sections 2 and 3 of this 2001 Act. + }
SECTION 6. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
----------
Passed by House July 4, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate July 5, 2001
...........................................................
President of Senate
Enrolled House Bill 2300 (HB 2300-B) Page 3
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2300 (HB 2300-B) Page 4