Chapter 96 Oregon Laws 2003

AN ACT

HB 2650

Relating to school finance; creating new provisions; amending section 6, chapter 4, Oregon Laws 2002, and sections 5 and 6, chapter 1, Oregon Laws 2002 (fourth special session); and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 5, chapter 1, Oregon Laws 2002 (fourth special session), is amended to read:

Sec. 5. (1) As used in this section “extended ADMw” means:

(a) For a school district the district extended ADMw as calculated under ORS 327.013.

(b) For an education service district the sum of the extended ADMw of the component school districts of the education service district.

[(1)] (2) Notwithstanding ORS 294.445, a school district or education service district that uses the accrual basis method of accounting may include as accrued revenues in the budget and financial statement of the school district or education service district, for any fiscal year, an amount from the next fiscal year that is to be received in the next fiscal year. The amount accrued under this section may not be greater than [9.1 percent of the amount the school district or education service district received as a State School Fund grant for the fiscal year for which the revenues are to be accrued.] the amount calculated under subsection (3)(b) or (c) of this section multiplied by the extended ADMw of the school district or education service district.

(3)(a) For each fiscal year, the Department of Education shall calculate the amount available in the State School Fund for grants and distributions to school districts and the amount available for grants and distributions to education service districts under ORS 327.008 and 327.013 and sections 2 to 7, chapter 695, Oregon Laws 2001, based on the appropriations and allocations made to the State School Fund for that fiscal year by the Legislative Assembly in regular session. The department may not include in the amount calculated to be available for school districts under this paragraph the amounts received by the Youth Corrections Education Program and the Juvenile Detention Education Program under ORS 327.026 from the State School Fund.

(b) The department shall calculate for school districts an amount equal to (the amount calculated under paragraph (a) of this subsection for school districts ¸ 12) ¸the total statewide extended ADMw of all school districts.

(c) The department shall calculate for education service districts an amount equal to (the amount calculated under paragraph (a) of this subsection for education service districts ¸ 12) ¸the total statewide extended ADMw of all education service districts.

(d) The department may adjust the calculations under this subsection based on current data for the factors used to calculate the State School Fund distribution to school districts and education service districts under ORS 327.008 and 327.013 and sections 2 to 7, chapter 695, Oregon Laws 2001.

(e) Notwithstanding paragraph (d) of this subsection, the department may not adjust the calculation under paragraph (a) of this subsection based on changes made to the appropriations or allocations to the State School Fund by the Legislative Assembly in special session or by rule of the Oregon Department of Administrative Services relating to allotting funds.

[(2)] (4) Notwithstanding ORS 294.445, a community college district or community college service district that uses the accrual basis method of accounting may include as accrued revenues in the budget and financial statement of the community college district or community college service district, for any fiscal year, an amount from the next fiscal year that is to be received in the next fiscal year. The amount accrued under this section may not be greater than 25 percent of the amount the community college district or community college service district received as a Community College Support Fund grant for the fiscal year for which the revenues are to be accrued.

SECTION 2. Section 5, chapter 1, Oregon Laws 2002 (fourth special session), as amended by section 1 of this 2003 Act, is amended to read:

Sec. 5. (1) As used in this section “extended ADMw” means:

(a) For a school district the district extended ADMw as calculated under ORS 327.013.

(b) For an education service district the sum of the extended ADMw of the component school districts of the education service district.

(2) Notwithstanding ORS 294.445, a school district or education service district that uses the accrual basis method of accounting may include as accrued revenues in the budget and financial statement of the school district or education service district, for any fiscal year, an amount from the next fiscal year that is to be received in the next fiscal year. The amount accrued under this section may not be greater than the amount calculated under subsection (3)(b) or (c) of this section multiplied by the extended ADMw of the school district or education service district.

(3)(a) For each fiscal year, the Department of Education shall calculate the amount available in the State School Fund for grants and distributions to school districts and the amount available for grants and distributions to education service districts under ORS 327.008 [and], 327.013 and [sections 2 to 7, chapter 695, Oregon Laws 2001,] 327.019 based on the appropriations and allocations made to the State School Fund for that fiscal year by the Legislative Assembly in regular session. The department may not include in the amount calculated to be available for school districts under this paragraph the amounts received by the Youth Corrections Education Program and the Juvenile Detention Education Program under ORS 327.026 from the State School Fund.

(b) The department shall calculate for school districts an amount equal to (the amount calculated under paragraph (a) of this subsection for school districts ¸ 12) ¸the total statewide extended ADMw of all school districts.

(c) The department shall calculate for education service districts an amount equal to (the amount calculated under paragraph (a) of this subsection for education service districts ¸ 12) ¸the total statewide extended ADMw of all education service districts.

(d) The department may adjust the calculations under this subsection based on current data for the factors used to calculate the State School Fund distribution to school districts and education service districts under ORS 327.008 [and], 327.013 and [sections 2 to 7, chapter 695, Oregon Laws 2001] 327.019.

(4) Notwithstanding ORS 294.445, a community college district or community college service district that uses the accrual basis method of accounting may include as accrued revenues in the budget and financial statement of the community college district or community college service district, for any fiscal year, an amount from the next fiscal year that is to be received in the next fiscal year. The amount accrued under this section may not be greater than 25 percent of the amount the community college district or community college service district received as a Community College Support Fund grant for the fiscal year for which the revenues are to be accrued.

SECTION 3. The amendments to section 5, chapter 1, Oregon Laws 2002 (fourth special session), by section 2 of this 2003 Act become operative on July 1, 2005.

SECTION 4. Section 6, chapter 1, Oregon Laws 2002 (fourth special session), is amended to read:

Sec. 6. (1) Notwithstanding ORS 294.445, a school district or education service district that uses the cash basis method of accounting may show a negative ending fund balance at the end of a fiscal year. The amount of the negative ending fund balance may not be greater than [9.1 percent:]

[(a) Of the sum of the amount for the fiscal year that the school district received as a State School Fund grant and as local revenues as described in ORS 327.013; or]

[(b) Of the sum of the amount for the fiscal year that the education service district received as a State School Fund grant and as local revenues as defined in section 2, chapter 695, Oregon Laws 2001.] the amount calculated under section 5 (3)(b) or (c), chapter 1, Oregon Laws 2002 (fourth special session), multiplied by the extended ADMw of the school district or education service district as defined in section 5, chapter 1, Oregon Laws 2002 (fourth special session).

(2) This section only applies to those school districts and education service districts that used the cash basis method of accounting on June 30, 2002.

SECTION 5. (1) Notwithstanding section 5 (2), chapter 1, Oregon Laws 2002 (fourth special session), for the 2002-2003 fiscal year, the amount accrued under section 5, chapter 1, Oregon Laws 2002 (fourth special session):

(a) For a school district may not be greater than $309 multiplied by the extended ADMw of the school district.

(b) For an education service district may not be greater than $12 multiplied by the extended ADMw of the education service district.

(2) Notwithstanding sections 5 and 6, chapter 1, Oregon Laws 2002 (fourth special session), for the 2002-2003 fiscal year, the amount of the negative ending fund balance allowed under section 6, chapter 1, Oregon Laws 2002 (fourth special session):

(a) For a school district may not be greater than $309 multiplied by the extended ADMw of the school district.

(b) For an education service district may not be greater than $12 multiplied by the extended ADMw of the education service district.

SECTION 6. Section 6, chapter 4, Oregon Laws 2002, as amended by section 3, chapter 12, Oregon Laws 2002 (third special session), is amended to read:

Sec. 6. (1) For the fiscal year beginning July 1, 2002, the Superintendent of Public Instruction shall calculate the distribution amount from the State School Fund to education service districts as described in sections 2 to 7, chapter 695, Oregon Laws 2001, based on the total amount of $97,800,000.

(2) For the fiscal year beginning July 1, 2002, the superintendent shall calculate an education service district grant adjustment for each education service district equal to (([$4,923,000 + {] $97,800,000 - the amount available for distribution to all education service districts under sections 12, 13 and 17, chapter 890, Oregon Laws 2001[}])¸the total education service district ADMw for all education service districts) ´education service district extended ADMw.

(3) For the fiscal year beginning July 1, 2002, notwithstanding section 7 (5)(a), chapter 695, Oregon Laws 2001, the superintendent shall, for each education service district, subtract the grant adjustment calculated under subsection (2) of this section from the amount calculated under section 7 (5)(a), chapter 695, Oregon Laws 2001.

SECTION 7. The General Fund appropriation to the Department of Education by section 2, chapter 890, Oregon Laws 2001, for the fiscal year beginning July 1, 2002, for the State School Fund is reduced by $150,000,000.

SECTION 8. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor May 24, 2003

Filed in the office of Secretary of State May 27, 2003

Effective date May 24, 2003

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