71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 519
Sponsored by COMMITTEE ON REVENUE
CHAPTER ................
AN ACT
Relating to school finance; creating new provisions; amending ORS
327.013; appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 8 of this 2001 Act are added to
and made a part of ORS 327.006 to 327.081. + }
SECTION 2. { + (1) There is transferred to the Small School
District Supplement Fund from the State School Fund, for the
fiscal year beginning July 1, 2001, the amount of $4.5 million.
(2) There is transferred to the Small School District
Supplement Fund from the State School Fund, for the fiscal year
beginning July 1, 2002, the amount of $4.5 million. + }
SECTION 3. { + (1) There is established the Small School
District Supplement Fund, separate and distinct from the General
Fund.
(2) The moneys in the Small School District Supplement Fund are
appropriated continuously to the Department of Education for
purposes of the grant program created by section 5 of this 2001
Act. + }
SECTION 4. { + As used in sections 4 to 6 of this 2001 Act:
(1)(a) 'Small high school' means a public school that is
operated by a small school district and that has students in:
(A) Grades 9 through 12, with an ADM of less than 350 in grades
9 through 12; or
(B) Grades 10 through 12 only, with an ADM of less than 267.
(b) 'Small high school' does not include an alternative
education program or a public charter school.
(2) 'Small school district' means a school district with a
weighted average daily membership (ADMw) of less than 8,500. + }
SECTION 5. { + (1) In addition to those moneys distributed
through the State School Fund, for the fiscal years beginning
July 1, 2001, and July 1, 2002, the Department of Education shall
award grants to small school districts with one or more small
high schools from moneys appropriated to the department from the
Small School District Supplement Fund in the following order of
priorities:
(a) First priority, base grants as determined under subsection
(2) of this section.
(b) Second priority, needs grants as determined under
subsection (3) of this section.
(c) Third priority, any moneys remaining after awarding base
grants and needs grants under paragraphs (a) and (b) of this
subsection shall be divided per ADM among all small school
Enrolled Senate Bill 519 (SB 519-A) Page 1
districts with small high schools and added to the amount of each
small school district's base grant. Amounts distributed under
this paragraph shall be in addition to the amount of the base
grant specified in subsection (2) of this section.
(2) Each fiscal year, the department shall award a base grant
to each small school district with one or more small high schools
that is equal to $200 per ADM of each small high school in the
small school district.
(3) Each fiscal year, the department may award a needs grant to
each small school district with one or more small high schools
based on the financial needs of the district. The needs grants
shall be awarded through an application process. The criteria for
determining the financial needs of the district shall include,
but not be limited to:
(a) The size of the small school district;
(b) Whether enrollment in the small school district is
declining and the degree to which the enrollment is declining;
(c) The ratio of staff to students in the small school
district;
(d) The balance of funds available to the small school district
at the end of the prior fiscal year; and
(e) The resources available to the small school district from
an education service district.
(4) The State Board of Education shall adopt any rules
necessary for the administration of this section. + }
SECTION 6. { + (1) The Department of Education shall conduct a
study on the relationship between the size of Oregon's small
school districts and the cost of and need for programs. Based on
the study, the department shall develop recommendations about
small school districts.
(2) Prior to October 1, 2002, the department shall report to
the appropriate interim legislative committees about the study
and the recommendations. + }
SECTION 7. { + (1) For the fiscal year beginning July 1, 2001,
the Department of Education may spend up to $100,000 from the
State School Fund for purposes of conducting the review under
section 8 of this 2001 Act.
(2) For the fiscal year beginning July 1, 2002, the Department
of Education may spend up to $50,000 from the State School Fund
for purposes of conducting the review under section 8 of this
2001 Act. + }
SECTION 8. { + (1) The Department of Education shall conduct a
review of the funding of programs and services currently provided
for Oregon's children with disabilities. The review shall include
all programs and services that are funded through school
districts, education service districts and the Department of
Education. Based on the review, the department shall develop
recommendations about the funding of programs and services for
children with disabilities.
(2) Prior to October 1, 2002, the department shall report to
the appropriate interim legislative committees about the review
and the recommendations. + }
SECTION 9. { + Sections 1 to 8 of this 2001 Act are repealed
on June 30, 2003. + }
SECTION 10. ORS 327.013 is amended to read:
327.013. The State School Fund distributions shall be computed
as follows:
(1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
Enrolled Senate Bill 519 (SB 519-A) Page 2
(2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
(3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
(4) Statewide Target per ADMw Grant = $4,500.
(5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}. ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
(6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
(7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
(A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
(B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a Second Language program under
ORS 336.079.
(C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
(D) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade 6
or kindergarten through grade 8 or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade 8.
(E) 0.25 times the sum of the following:
(i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education
{ + based on the most recent federal decennial census + }, as
adjusted by the school district's proportion of students in the
county receiving free or reduced price lunches under the United
States Department of Agriculture's current Income Eligibility
Guidelines if the number is higher than the number determined
from census data and only if the school district had an average
daily membership of 2,500 or less for the 1995-1996 school year,
and as further adjusted by the number of students in average
daily membership in June of the year of distribution divided by
number of students in average daily membership in the district,
or its predecessors, in June { - 1990 - } { + of the year of
the most recent federal decennial census + };
(ii) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the federal Department of Education, 'Annual Statistical Report
on Children in Foster Homes and Children in Families Receiving
AFDC Payments in Excess of the Poverty Income Level,' or its
successor, for October 31 of the year prior to the year of
distribution; and
(iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
Enrolled Senate Bill 519 (SB 519-A) Page 3
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
(F)(i) An additional amount as determined by ORS 327.077 (1997
Edition) shall be added to the ADMw for each remote small school
in the district.
(ii) An additional amount as determined by section 23, chapter
1066, Oregon Laws 1999, for each small high school in the
district that is equal to the small high school additional
weighting amount.
(G) All numbers of children used for the computation in this
section must reflect any district consolidations that have
occurred since the numbers were compiled.
(b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
(8) Transportation Grant = 70 percent of Approved
Transportation Costs.
(9) Local Revenues are the total of the following:
(a) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
(b) The amount of property taxes actually received by the
district including penalties and interest on taxes;
(c) The amount of revenue received by the district from the
Common School Fund under ORS 327.403 to 327.415;
(d) The amount of revenue received by the district from the
county school fund;
(e) The amount of revenue received by the district from the 25
percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
(f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
(g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
(h) Moneys received in lieu of property taxes;
(i) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable; and
(j) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district, based on the
rate certified pursuant to ORS 310.060, from the amount that
would have been imposed by the district if the district had
certified the maximum rate of operating property taxes allowed by
law.
(10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
(a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
(b) If a school district imposes local option taxes pursuant to
ORS 280.040 to 280.145, an amount equal to the lesser of:
(A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
Enrolled Senate Bill 519 (SB 519-A) Page 4
(B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
(C) $500 per district extended ADMw.
(11)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
(c) As used in this subsection:
(A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
(B) 'Construction costs' does not include costs for land
acquisition.
SECTION 11. { + The amendments to ORS 327.013 by section 10 of
this 2001 Act affect State School Fund distributions commencing
with the 2001-2002 distribution. + }
SECTION 12. ORS 327.013, as amended by section 30, chapter
1066, Oregon Laws 1999, is amended to read:
327.013. The State School Fund distributions shall be computed
as follows:
(1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
(2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
(3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
(4) Statewide Target per ADMw Grant = $4,500.
(5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}. ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
(6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
(7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
(A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
(B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a Second Language program under
ORS 336.079.
(C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
(D) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade 6
or kindergarten through grade 8 or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade 8.
(E) 0.25 times the sum of the following:
Enrolled Senate Bill 519 (SB 519-A) Page 5
(i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education
{ + based on the most recent federal decennial census + }, as
adjusted by the school district's proportion of students in the
county receiving free or reduced price lunches under the United
States Department of Agriculture's current Income Eligibility
Guidelines if the number is higher than the number determined
from census data and only if the school district had an average
daily membership of 2,500 or less for the 1995-1996 school year,
and as further adjusted by the number of students in average
daily membership in June of the year of distribution divided by
number of students in average daily membership in the district,
or its predecessors, in June { - 1990 - } { + of the year of
the most recent federal decennial census + };
(ii) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the federal Department of Education, 'Annual Statistical Report
on Children in Foster Homes and Children in Families Receiving
AFDC Payments in Excess of the Poverty Income Level,' or its
successor, for October 31 of the year prior to the year of
distribution; and
(iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
(F) An additional amount as determined by ORS 327.077 shall be
added to the ADMw for each remote small elementary school and for
each small high school in the district.
(G) All numbers of children used for the computation in this
section must reflect any district consolidations that have
occurred since the numbers were compiled.
(b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
(8) Transportation Grant = 70 percent of Approved
Transportation Costs.
(9) Local Revenues are the total of the following:
(a) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
(b) The amount of property taxes actually received by the
district including penalties and interest on taxes;
(c) The amount of revenue received by the district from the
Common School Fund under ORS 327.403 to 327.415;
(d) The amount of revenue received by the district from the
county school fund;
(e) The amount of revenue received by the district from the 25
percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
(f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
(g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
(h) Moneys received in lieu of property taxes;
Enrolled Senate Bill 519 (SB 519-A) Page 6
(i) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable; and
(j) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district, based on the
rate certified pursuant to ORS 310.060, from the amount that
would have been imposed by the district if the district had
certified the maximum rate of operating property taxes allowed by
law.
(10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
(a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
(b) If a school district imposes local option taxes pursuant to
ORS 280.040 to 280.145, an amount equal to the lesser of:
(A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
(B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
(C) $500 per district extended ADMw.
(11)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
(c) As used in this subsection:
(A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
(B) 'Construction costs' does not include costs for land
acquisition.
SECTION 13. { + The amendments to ORS 327.013 by section 12 of
this 2001 Act become operative July 1, 2005. + }
SECTION 14. { + The amendments to ORS 327.013 by section 12 of
this 2001 Act affect State School Fund distributions commencing
with the 2005-2006 distribution. + }
SECTION 15. { + This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2001 Act takes effect on
its passage. + }
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Enrolled Senate Bill 519 (SB 519-A) Page 7
Passed by Senate April 18, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 15, 2001
...........................................................
Speaker of House
Enrolled Senate Bill 519 (SB 519-A) Page 8
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 519 (SB 519-A) Page 9