72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2875
House Bill 2863
Sponsored by Representative HASS; Representatives BARKER, BATES,
GREENLICK, KAFOURY, KITTS, MARCH, SCHAUFLER, TOMEI, Senators
RINGO, B STARR
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Allows Department of Education to award service equity grants
to school districts. Specifies method of calculating amount of
grant based on regional cost variations.
Establishes Service Equity Fund.
Appropriates moneys from General Fund to Department of
Education for fund.
Declares emergency, effective July 1, 2003.
A BILL FOR AN ACT
Relating to school finance; appropriating money; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 4 of this 2003 Act are added to
and made a part of ORS 327.006 to 327.133. + }
SECTION 2. { + (1) There is established the Service Equity
Fund, separate and distinct from the General Fund. Interest
earned by the Service Equity Fund shall be credited to the fund.
(2) The moneys in the fund are appropriated continuously to the
Department of Education for purposes of the service equity grant
program created by section 3 of this 2003 Act. + }
SECTION 3. { + (1) In addition to those moneys distributed
through the State School Fund, the Department of Education may
award service equity grants to school districts each fiscal year
based on regional cost variations in personnel and services and
supplies purchased by school districts. The purpose of the grants
is to adjust for cost variations experienced by school districts
in different regions of this state.
(2) The State Board of Education shall calculate for each
region in this state a cost variation adjustment. The cost
variation adjustment shall:
(a) Be based on the level of salaries and the price of services
and supplies in the private market in the region or be based on
the prices paid by school district employees in the region for
living costs, or both;
(b) Be based on data that as closely as practicable reflects
the characteristics of personnel employed by a school district
and services and supplies purchased by a school district;
(c) Be based on the best analysis of living costs that is
reasonably available for each region; and
(d) Not be based on the prices paid by a school district for
personnel, services and supplies.
(3)(a) A school district's service equity grant = the General
Purpose Grant of the school district X the percentage by which
the cost variation adjustment of the region in which the school
district is located exceeds the cost variation adjustment of the
lowest cost region in this state.
(b) The percentage used for the calculation under paragraph (a)
of this subsection may not exceed 10 percent. If one or more
regions would have been assigned a percentage that is more than
10 percent above the lowest cost region in this state, all
assigned percentages shall be adjusted accordingly so that the
percentages remain in the same proportion to each other.
(4) The Department of Education may prorate the amount of funds
available for the service equity grant program among those school
districts receiving a grant.
(5) The State Board of Education may adopt any rules necessary
for the administration of the service equity grant program. + }
SECTION 4. { + (1) Notwithstanding section 3 (2) of this 2003
Act, to determine the amount of each school district's service
equity grant for the 2003-2004 fiscal year, the Department of
Education shall use the regional cost variations identified for
each education region in Table 8 of the study titled 'Adjusting
Oregon Education Expenditures for Regional Cost Differences: A
Feasibility Study' prepared by Management Analysis and Planning
Associates, L.L.C., for the Confederation of Oregon School
Administrators and dated May 30, 1997.
(2) Notwithstanding section 3 (2) of this 2003 Act, the
department may continue to use the study described in subsection
(1) of this section until the department has adopted regional
cost variation adjustments under section 3 of this 2003 Act. + }
SECTION 5. { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Department of
Education for the Service Equity Fund, for the biennium beginning
July 1, 2003, out of the General Fund, the sum of $___, which may
be expended for the grant program created by section 3 of this
2003 Act. + }
SECTION 6. { + 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 July 1,
2003. + }
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