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 3558
 
                         House Bill 3619
 
Sponsored by COMMITTEE ON RULES AND PUBLIC AFFAIRS
 
 
                             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.
 
  Limits percentage of budget that school district or education
service district may expend on compensation for employees of
district.
  Allows Superintendent of Public Instruction to withhold State
School Fund moneys from districts that expend more than limit.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to school finance; creating new provisions; amending ORS
  327.103; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in this section and section 2 of this
2003 Act:
  (1)(a) 'Budget of the education service district' means the
total of all moneys received by the education service district
from:
  (A) The State School Fund under ORS 327.008;
  (B) Local revenues, as described in ORS 327.019;
  (C) Federal funds; and
  (D) Any grants received by an education service district from
state funds.
  (b) 'Budget of the education service district' does not include
any moneys received by the education service district through an
ad valorem tax on the property of the district if the moneys are
used to pay bonded indebtedness.
  (2)(a) 'Budget of the school district' means the total of all
moneys received by the school district from:
  (A) The State School Fund under ORS 327.008;
  (B) Local revenues, as described in ORS 327.013 (9);
  (C) Local revenues, as described in ORS 327.013 (10);
  (D) Federal funds;
  (E) Grants received under ORS 327.023;
  (F) School improvement grants under ORS 327.297;
  (G) Local option equalization grants under ORS 327.336 and
327.339;
  (H) English as a Second Language teacher grants under ORS
327.345; and
  (I) Any grant received by a school district from state funds.
  (b) 'Budget of the school district' does not include:
  (A) Any moneys paid to a public charter school under ORS
338.155 or 338.165.
  (B) Any moneys received by the school district through an ad
valorem tax on the property of the district if the moneys are
used to pay bonded indebtedness.
  (3) 'Compensation' means moneys expended by a school district
or education service district:
  (a) On salaries and includes any remuneration paid to an
employee in return for services, including but not limited to
remuneration paid for travel, living quarters, board, lodging,
fuel, laundry and other advantages furnished to the employee in
return for services;
  (b) On premiums for the benefit of an employee, spouse of an
employee, domestic partner of an employee or relative of an
employee for health insurance, dental insurance, vision
insurance, long term disability insurance, short term disability
insurance or life insurance;
  (c) On a deferred compensation plan;
  (d) On the Public Employees Retirement System;
  (e) As a lump sum payment for accumulated unused sick leave;
  (f) As an accelerated payment of an employment contract for a
future period or an advance against future wages;
  (g) As a retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment; and
  (h) As payment for periods of leave of absence, including but
not limited to sick leave and vacation leave.
  (4)(a) 'Employee' means:
  (A) A person employed by a school district or education service
district.
  (B) A person who provides services to a school district or
education service district pursuant to a personal service
contract or any other contract with a school district or
education service district.
  (b) 'Employee' does not include:
  (A) A person who is employed by a public charter school; or
  (B) A person who is employed by a school district and provides
services to a public charter school. + }
  SECTION 2.  { + (1) For any fiscal year, a school district may
not expend more than __ percent of the budget of the school
district for compensation of the school district employees.
  (2) For any fiscal year, an education service district may not
expend more than __ percent of the budget of the education
service district for compensation of education service district
employees.
  (3) If the Superintendent of Public Instruction finds that a
school district or education service district has violated this
section, the superintendent shall also find the district to be
deficient under ORS 327.103. + }
  SECTION 3.  { + (1) Section 2 of this 2003 Act first applies to
the 2003-2004 fiscal year.
  (2) Notwithstanding subsection (1) of this section, section 2
of this 2003 Act does not apply to expenditures for compensation
of employees of a school district or an education service
district made pursuant to a collective bargaining agreement or
contract entered into prior to the effective date of this 2003
Act. + }
  SECTION 4. ORS 327.103 is amended to read:
  327.103. (1) { + (a) + } All school districts are presumed to
maintain a standard school  { + or school district + } until the
school  { + or school district + } has been found to be deficient
by the Superintendent of Public Instruction, pursuant to
standards and rules of the State Board of Education.
   { +  (b) All education service districts are presumed to
maintain a standard education service district until the
education service district has been found to be deficient by the
Superintendent of Public Instruction, pursuant to standards and
rules of the State Board of Education. + }
 
  (2) If any deficiencies are not corrected before the beginning
of the school year next following the date of the finding of
deficiency and if an extension has not been granted under
subsection (3) of this section, the Superintendent of Public
Instruction may withhold portions of State School Fund moneys
otherwise allocated to the district for operating expenses until
such deficiencies are corrected unless the withholding would
create an undue hardship, as determined pursuant to rules of the
State Board of Education.
  (3) Within 90 days of the finding of deficiency, a
 { - school - } district found not to be in compliance shall
submit a plan, acceptable to the Superintendent of Public
Instruction, for meeting standardization requirements. A team of
Department of Education staff shall visit the   { - school - }
district and offer technical assistance, as needed, in the
preparation and implementation of the plan. When an acceptable
plan for meeting standardization requirements has been submitted,
the Superintendent of Public Instruction may allow an extension
of time, not to exceed 12 months, if the superintendent
determines that such deficiencies cannot be corrected or removed
before the beginning of the next school year. However, no
extension shall be granted if it is possible for a district to
correct the deficiency through merger. For the period of the
extension of time under this subsection, the school { +  or
district + } shall be considered a conditionally standard
school { +  or district + }.
  (4) Any district failing to submit a plan for meeting
standardization requirements within the time specified shall
receive no further State School Fund moneys until a plan
acceptable to the Superintendent of Public Instruction is
submitted irrespective of the district's being given one year in
which to comply.
  SECTION 5.  { + 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. + }
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