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 2841
 
                         Senate Bill 524
 
Sponsored by Senator HARPER
 
 
                             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.
 
  Establishes minimum funding amount required to be distributed
from State School Fund to education service districts with low
student populations.
  Declares emergency, effective July 1, 2003.
 
                        A BILL FOR AN ACT
Relating to education service district funding; creating new
  provisions; amending ORS 327.019 and section 7, chapter 695,
  Oregon Laws 2001; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. Section 7, chapter 695, Oregon Laws 2001, is amended
to read:
   { +  Sec. 7. + } (1) For each fiscal year, the Superintendent
of Public Instruction shall calculate a general services grant
for each education service district that is equal to:
  (a) For education service districts with a base amount that is
greater than the target amount, base amount - base adjustment.
  (b) For education service districts with a base amount that is
less than the target amount or equal to the target amount, base
amount + base adjustment.
  (2) Notwithstanding subsection (1) of this section, for each
education service district   { - that has a base amount that is
greater than the target amount or equal to the target amount
and - }  that has an education service district extended ADMw of
less than 2,500, the general services grant of the education
service district shall be equal to at least:
  (a) For the 2001-2002 fiscal year, $700,000.
  (b) For the 2002-2003 fiscal year, $750,000.
  (c) For the 2003-2004 fiscal year,   { - $800,000 - }  { +
$2.7 million + }.
  (d) For the 2004-2005 fiscal year,   { - $900,000 - }  { +
$2.7 million + }.
  (3)(a) Each fiscal year, subject to subsection (5) of this
section, each education service district shall receive a State
School Fund grant = general services grant - local revenues of
the education service district.
  (b) Notwithstanding paragraph (a) of this subsection and
subsection (5) of this section, the State School Fund grant of an
education service district may not be less than zero.
  (4) If the boundaries of an education service district change
after July 1, 2001, the Superintendent of Public Instruction
shall determine the amounts under subsections (1) to (3) of this
section as if the newly formed education service district existed
in the prior fiscal year.
  (5)(a) After completing the calculations under subsections (1)
to (4) of this section, the Superintendent of Public Instruction
shall apportion from the State School Fund to each education
service district an amount = (funding percentage X  general
services grant) - local revenues of the education service
district.
  (b) The funding percentage used in paragraph (a) of this
subsection shall be calculated by the superintendent to
distribute as nearly as practicable the total amount available
for distribution to education service districts from the State
School Fund for each fiscal year.
  SECTION 2.  { + The amendments to section 7, chapter 695,
Oregon Laws 2001, by section 1 of this 2003 Act apply to State
School Fund distributions commencing with the 2003-2004
distribution. + }
  SECTION 3. ORS 327.019 is amended to read:
  327.019. (1) As used in this section:
  (a) 'Education service district extended ADMw' means the sum of
the extended ADMw of the component school districts of the
education service district as computed under ORS 327.013.
  (b) 'Local revenues of an education service district' means 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
state-managed forestlands under ORS 530.115 (1)(b) and (c); and
  (D) 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.
  (2) Each fiscal year, the Superintendent of Public Instruction
shall calculate a State School Fund grant for each education
service district as provided in this section.
  (3)(a) Each fiscal year, the superintendent shall calculate the
total amount appropriated or allocated to the State School Fund
and available for distribution to school districts, education
service districts and programs + total amount of local revenues
of all school districts, computed as provided in ORS 327.013, +
total amount of local revenues of all education service
districts. The superintendent may not include in the calculation
under this paragraph amounts transferred from the State School
Fund to the Out-of-State Disabilities Placement Education Fund or
amounts recovered by the Department of Education from the State
School Fund under ORS 343.243.
  (b) The superintendent shall multiply the amount calculated
under paragraph (a) of this subsection by 95 percent.
  (c) Based on the amount calculated under paragraph (b) of this
subsection, the superintendent shall calculate a funding
percentage to distribute as nearly as practicable under ORS
327.006 to 327.133 the total amount calculated under paragraph
(b) of this subsection as school district general purpose grants,
facility grants and transportation grants to school districts.
  (d) Based on the funding percentage calculated under paragraph
(c) of this subsection, the superintendent shall calculate the
general purpose grant, facility grant and transportation grant
amounts for each school district.
  (4) { + (a) + } The general services grant for an education
service district  { + that has an education service district
extended ADMw of 2,500 or more + } shall equal the higher of:
    { - (a) - }  { +  (A) + } Total amount calculated under
subsection (3)(d) of this section for the component school
districts of the education service district X 5.263 percent; or
    { - (b) - }  { +  (B) + } $1 million.
   { +  (b) The general services grant for an education service
district that has an education service district extended ADMw of
less than 2,500 shall equal the higher of:
  (A) Total amount calculated under subsection (3)(d) of this
section for the component school districts of the education
service district X 5.263 percent; or
  (B) $2.7 million. + }
  (5) Subject to subsection (6) of this section, the State School
Fund grant for an education service district = general services
grant - local revenues of the education service district.
  (6)(a) After completing the calculations under subsections (2)
to (5) of this section, the Superintendent of Public Instruction
shall apportion from the State School Fund to each education
service district an amount = (funding percentage X  general
services grant) - local revenues of the education service
district.
  (b) The funding percentage used in paragraph (a) of this
subsection shall be calculated by the superintendent to
distribute as nearly as practicable the total amount available
for distribution to education service districts from the State
School Fund for each fiscal year.
  (7) Notwithstanding subsections (5) and (6) of this section,
the State School Fund grant of an education service district may
not be less than zero.
  (8) An education service district shall distribute to its
component school districts any amount of local revenues of the
education service district that is greater than the general
services grant. The amount that each component school district
receives under this subsection shall be prorated based on the
district extended ADMw of each school district.
  SECTION 4.  { + The amendments to ORS 327.019 by section 3 of
this 2003 Act apply to State School Fund distributions commencing
with the 2005-2006 distribution. + }
  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 July 1,
2003. + }
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