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 2897
B-Engrossed
Senate Bill 550
Ordered by the House August 21
Including Senate Amendments dated April 7 and House Amendments
dated August 21
Sponsored by COMMITTEE ON REVENUE
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.
Creates High Cost Disabilities Account within State School
Fund. Directs Department of Education to distribute moneys in
account to school districts as high cost disability grants.
Provides criteria for determining amount of high cost disability
grants.
Modifies distribution of transportation grants.
{ + Modifies portion of local option property tax revenues
not considered local revenues for purposes of State School Fund
distributions.
Establishes grant for small school districts with small high
schools. Allows continued weighting for first four fiscal years
for small high school that merges with another high school on or
after January 1, 2003.
Specifies that statutory rate limit on operating taxes of
certain school districts does not change after limit increases
based on constitutional provision.
Allows school district to divert state funds owed to district
for purpose of lease payments for public school facilities
located on reservation of Indian tribe. + }
Abolishes Out-of-State Disabilities Placement Education Fund on
January 1, 2004.
{ - Declares emergency, effective July 1, 2003. - }
{ + Takes effect on 91st day following adjournment sine
die. + }
A BILL FOR AN ACT
Relating to school finance; creating new provisions; amending ORS
327.008, 327.013, 327.019, 327.077, 327.099, 327.336 and
338.145 and section 4, chapter 695, Oregon Laws 2001; repealing
ORS 327.047 and 327.051; appropriating money; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2003 Act is added to and made
a part of ORS 327.006 to 327.081. + }
SECTION 2. { + (1) There is established within the State
School Fund a High Cost Disabilities Account.
(2) Each fiscal year, the Department of Education shall
distribute moneys from the account to school districts as high
cost disabilities grants. A school district may receive moneys
from the account if the school district has a resident pupil with
disabilities for whom the approved costs to the school district
of providing special education and related services, as
determined under subsection (4) of this section, exceed $25,000.
(3) The amount of moneys received by a school district under
this section for each resident pupil with disabilities shall
equal the approved costs, as determined under subsection (4) of
this section, incurred by the school district in providing
special education and related services to the pupil minus
$25,000.
(4) The department shall determine the approved costs incurred
by a school district in providing special education and related
services to a pupil with disabilities. The approved costs
incurred by a school district may include costs incurred by an
education service district of providing special education and
related services to the school district through the resolution
process described in ORS 334.175. In determining the approved
costs for which a school district may receive moneys under this
section, the department shall consider:
(a) How efficiently the special education and related services
are provided by the school district; and
(b) The use of available resources by the school district.
(5) If the total approved costs for which school districts are
seeking moneys from the account exceed the amount in the account
in any fiscal year, the department shall prorate the amount of
moneys available for distribution in the account among those
school districts that are eligible for moneys from the account.
(6) The department shall distribute any moneys in the account
that are not distributed under this section in any fiscal year to
school districts based on ORS 327.008 and 327.013.
(7) The State Board of Education may adopt any rules necessary
for the administration of this section. + }
SECTION 3. { + Section 2 of this 2003 Act is repealed on July
1, 2005. + }
SECTION 4. ORS 327.008, as amended by section 13, chapter 6,
Oregon Laws 2002 (third special session), is amended to read:
327.008. (1) There is established a State School Fund in the
General Fund. The fund shall consist of moneys appropriated by
the Legislative Assembly and moneys transferred from the
Education Stability Fund. The State School Fund is continuously
appropriated { + to the Department of Education + } for the
purposes of ORS 327.006 to 327.081, 327.095, 327.099, 327.101,
327.125, 327.137, 334.380, 336.575, 336.580, 336.635, 342.173,
343.243, 343.533 { - , - } { + and + } 343.961 { - and
461.543 - } .
(2) There shall be apportioned from the State School Fund to
each school district a State School Fund grant, consisting of the
positive amount equal to a general purpose grant and a facility
grant and a transportation grant { + and a high cost
disabilities grant + } minus local revenue, computed as provided
in ORS 327.013.
(3) There shall be apportioned from the State School Fund to
each education service district a State School Fund grant as
calculated under sections 2 to 7, chapter 695, Oregon Laws 2001.
(4) All figures used in the determination of the distribution
of the State School Fund shall be estimates for the same year as
the distribution occurs, unless otherwise specified.
(5) Numbers of students in average daily membership used in the
distribution formula shall be the numbers as of June of the year
of distribution.
(6) A school district may not use the portion of the State
School Fund grant that is attributable to the facility grant for
capital construction costs.
(7) The total amount of the State School Fund that is
distributed as facility grants { - shall - } { + may + } not
exceed $17.5 million in any biennium. If the total amount to be
distributed as facility grants exceeds this limitation, the
Department of Education shall prorate the amount of funds
available for facility grants among those school districts that
qualified for a facility grant.
{ + (8) Each fiscal year, the Department of Education shall
transfer the amount of $12 million from the State School Fund to
the High Cost Disabilities Account established in section 2 of
this 2003 Act. + }
SECTION 5. ORS 327.008, as amended by section 13, chapter 6,
Oregon Laws 2002 (third special session), and section 4 of this
2003 Act, is amended to read:
327.008. (1) There is established a State School Fund in the
General Fund. The fund shall consist of moneys appropriated by
the Legislative Assembly and moneys transferred from the
Education Stability Fund. The State School Fund is continuously
appropriated to the Department of Education for the purposes of
ORS 327.006 to 327.081, 327.095, 327.099, 327.101, 327.125,
327.137, { - 334.380, - } 336.575, 336.580, 336.635, 342.173,
343.243, 343.533 and 343.961.
(2) There shall be apportioned from the State School Fund to
each school district a State School Fund grant, consisting of the
positive amount equal to a general purpose grant and a facility
grant and a transportation grant { - and a high cost
disabilities grant - } minus local revenue, computed as provided
in ORS 327.013.
(3) There shall be apportioned from the State School Fund to
each education service district a State School Fund grant as
calculated under { - sections 2 to 7, chapter 695, Oregon Laws
2001 - } { + ORS 327.019 + }.
(4) All figures used in the determination of the distribution
of the State School Fund shall be estimates for the same year as
the distribution occurs, unless otherwise specified.
(5) Numbers of students in average daily membership used in the
distribution formula shall be the numbers as of June of the year
of distribution.
(6) A school district may not use the portion of the State
School Fund grant that is attributable to the facility grant for
capital construction costs.
(7) The total amount of the State School Fund that is
distributed as facility grants may not exceed $17.5 million in
any biennium. If the total amount to be distributed as facility
grants exceeds this limitation, the Department of Education shall
prorate the amount of funds available for facility grants among
those school districts that qualified for a facility grant.
{ - (8) Each fiscal year, the Department of Education shall
transfer the amount of $12 million from the State School Fund to
the High Cost Disabilities Account established in section 2 of
this 2003 Act. - }
SECTION 6. { + The amendments to ORS 327.008 by section 5 of
this 2003 Act become operative on July 1, 2005. + }
SECTION 7. ORS 327.008, as amended by section 13, chapter 695,
Oregon Laws 2001, and section 14, chapter 6, Oregon Laws 2002
(third special session), is amended to read:
327.008. (1) There is established a State School Fund in the
General Fund. The fund shall consist of moneys appropriated by
the Legislative Assembly and moneys transferred from the
Education Stability Fund. The State School Fund is continuously
appropriated { + to the Department of Education + } for the
purposes of ORS 327.006 to 327.081, 327.095, 327.099, 327.101,
327.125, 327.137, 336.575, 336.580, 336.635, 342.173, 343.243,
343.533 { - , - } { + and + } 343.961 { - and 461.543 - } .
(2) There shall be apportioned from the State School Fund to
each school district a State School Fund grant, consisting of the
positive amount equal to a general purpose grant and a facility
grant and a transportation grant minus local revenue, computed as
provided in ORS 327.013.
(3) There shall be apportioned from the State School Fund to
each education service district a State School Fund grant as
calculated under ORS 327.019.
(4) All figures used in the determination of the distribution
of the State School Fund shall be estimates for the same year as
the distribution occurs, unless otherwise specified.
(5) Numbers of students in average daily membership used in the
distribution formula shall be the numbers as of June of the year
of distribution.
(6) A school district may not use the portion of the State
School Fund grant that is attributable to the facility grant for
capital construction costs.
(7) The total amount of the State School Fund that is
distributed as facility grants { - shall - } { + may + } not
exceed $17.5 million in any biennium. If the total amount to be
distributed as facility grants exceeds this limitation, the
Department of Education shall prorate the amount of funds
available for facility grants among those school districts that
qualified for a facility grant.
SECTION 8. ORS 327.013, as amended by section 17, chapter 695,
Oregon Laws 2001, is amended to read:
327.013. The State School Fund distributions for school
districts 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 - } { + may + } 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 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)(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) High cost disabilities grant = the total amount
received by a school district under section 2 of this 2003 Act
for providing special education and related services to resident
pupils with disabilities. + }
{ - (8) - } { + (9)(a) + } Transportation grant { - = - }
{ + equals:
(A) + } 70 percent of approved transportation costs { + for
those school districts ranked below the 80th percentile under
paragraph (b) of this subsection.
(B) 80 percent of approved transportation costs for those
school districts ranked in or above the 80th percentile but below
the 90th percentile under paragraph (b) of this subsection.
(C) 90 percent of approved transportation costs for those
school districts ranked in or above the 90th percentile under
paragraph (b) of this subsection.
(b) Each fiscal year, the Department of Education shall rank
school districts based on the approved transportation costs per
ADM of each school district, ranking the school district with the
highest approved transportation costs per ADM at the top of the
order + }.
{ - (9) - } { + (10) + } 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) Moneys received in lieu of property taxes;
(h) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable;
(i) 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; and
(j) Any amount distributed to the district in the prior fiscal
year under section 4 (3), chapter 695, Oregon Laws 2001.
{ - (10) - } { + (11) + } Notwithstanding subsection
{ - (9) - } { + (10) + } of this section, Local Revenues do
not include:
(a) { + For those districts with a statutory rate limit on
operating taxes on July 1, 2003, that is greater than $4.50 per
$1,000 of assessed value, either:
(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); { + or
(B) The amount of property taxes actually received by the
district, including penalties and interest on taxes, that results
from an increase in the district's rate of ad valorem property
tax under section 11 (5)(d), Article XI of the Oregon
Constitution; + } 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 - } { + Fifteen + } percent of the combined
total for the school district of the general purpose grant, the
transportation grant { + , + } { - and - } the facility
grant { + and the high cost disabilities grant + } of the
district; or
(C) { - $500 - } { + $750 + } per district extended ADMw.
{ - (11)(a) - } { + (12)(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 9. { + The amendments to ORS 327.013 by section 8 of
this 2003 Act apply to State School Fund distributions commencing
with the 2003-2004 distribution. + }
SECTION 10. ORS 327.013, as amended by section 17, chapter 695,
Oregon Laws 2001, and section 8 of this 2003 Act, is amended to
read:
327.013. The State School Fund distributions for school
districts 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
may 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 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) { - (i) - } An additional amount as determined by ORS
327.077
{ - (1997 Edition) - } shall be added to the ADMw for each
remote small { + elementary school and for each small high + }
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) High cost disabilities grant = the total amount
received by a school district under section 2 of this 2003 Act
for providing special education and related services to resident
pupils with disabilities. - }
{ - (9)(a) - } { + (8)(a) + } Transportation grant equals:
(A) 70 percent of approved transportation costs for those
school districts ranked below the 80th percentile under paragraph
(b) of this subsection.
(B) 80 percent of approved transportation costs for those
school districts ranked in or above the 80th percentile but below
the 90th percentile under paragraph (b) of this subsection.
(C) 90 percent of approved transportation costs for those
school districts ranked in or above the 90th percentile under
paragraph (b) of this subsection.
(b) Each fiscal year, the Department of Education shall rank
school districts based on the approved transportation costs per
ADM of each school district, ranking the school district with the
highest approved transportation costs per ADM at the top of the
order.
{ - (10) - } { + (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) Moneys received in lieu of property taxes;
(h) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable;
(i) 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; and
(j) Any amount distributed to the district in the prior fiscal
year under section 4 (3), chapter 695, Oregon Laws 2001 { + , or
ORS 327.019 (8) + }.
{ - (11) - } { + (10) + } Notwithstanding subsection
{ - (10) - } { + (9) + } of this section, Local Revenues do
not include { - : - } { + , + }
{ - (a) For those districts with a statutory rate limit on
operating taxes on July 1, 2003, that is greater than $4.50 per
$1,000 of assessed value, either: - }
{ - (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); or - }
{ - (B) The amount of property taxes actually received by the
district, including penalties and interest on taxes, that results
from an increase in the district's rate of ad valorem property
tax under section 11 (5)(d), Article XI of the Oregon
Constitution; 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) - } { + (a) + } The amount of revenue actually
received by the district from local option taxes imposed pursuant
to ORS 280.040 to 280.145;
{ - (B) - } { + (b) + } Fifteen percent of the combined
total for the school district of the general purpose grant, the
transportation grant { - , - } { + and + } the facility grant
{ - and the high cost disabilities grant - } of the district;
or
{ - (C) - } { + (c) + } $750 per district extended ADMw.
{ - (12)(a) - } { + (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 2003 Act apply to State School Fund distributions commencing
with the 2005-2006 distribution. + }
SECTION 12. { + The amendments to ORS 327.013 by section 10 of
this 2003 Act become operative on July 1, 2005. + }
SECTION 13. ORS 327.013, as amended by section 30, chapter
1066, Oregon Laws 1999, section 12, chapter 670, Oregon Laws
2001, and sections 17, 20 and 23, chapter 695, Oregon Laws 2001,
is amended to read:
327.013. The State School Fund distributions for school
districts 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 - } { + may + } 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 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) { + (a) + } Transportation grant { - = - } { + equals:
(A) + } 70 percent of approved transportation costs { + for
those school districts ranked below the 80th percentile under
paragraph (b) of this subsection.
(B) 80 percent of approved transportation costs for those
school districts ranked in or above the 80th percentile but below
the 90th percentile under paragraph (b) of this subsection.
(C) 90 percent of approved transportation costs for those
school districts ranked in or above the 90th percentile under
paragraph (b) of this subsection.
(b) Each fiscal year, the Department of Education shall rank
school districts based on the approved transportation costs per
ADM of each school district, ranking the school district with the
highest approved transportation costs per ADM at the top of the
order + }.
(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) Moneys received in lieu of property taxes;
(h) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable;
(i) 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; and
(j) Any amount distributed to the district in the prior fiscal
year under section 4 (3), chapter 695, Oregon Laws 2001, or ORS
327.019 (8).
(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) - } { + (a) + } The amount of revenue actually
received by the district from local option taxes imposed pursuant
to ORS 280.040 to 280.145;
{ - (B) - } { + (b) + } { - Ten - } { + Fifteen + }
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) - } { + (c) + } { - $500 - } { + $750 + } 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 14. { + The amendments to ORS 327.013 by section 13 of
this 2003 Act apply to State School Fund distributions commencing
with the 2005-2006 distribution. + }
SECTION 15. { + The amendments to ORS 327.013 by section 13 of
this 2003 Act become operative on July 1, 2005. + }
SECTION 16. 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) The general services grant for an education service
district 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) $1 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 17. { + The amendments to ORS 327.019 by section 16 of
this 2003 Act apply to State School Fund distributions commencing
with the 2005-2006 distribution. + }
SECTION 18. { + The amendments to ORS 327.019 by section 16 of
this 2003 Act become operative on July 1, 2005. + }
SECTION 19. Section 4, chapter 695, Oregon Laws 2001, is
amended to read:
{ + Sec. 4. + } (1) For the 2001-2002, 2002-2003, 2003-2004
and 2004-2005 fiscal years, to calculate the target amount for
each education service district:
(a) The Superintendent of Public Instruction shall calculate
the total amount appropriated or allocated to the State School
Fund for a fiscal year 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:
(A) For the 2001-2002 fiscal year, 95.34 percent.
(B) For the 2002-2003 fiscal year, 95.36 percent.
(C) For the 2003-2004 fiscal year, 95.25 percent.
(D) For the 2004-2005 fiscal year, 95.15 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 for each fiscal
year under paragraph (b) of this subsection as school district
general purpose grants, facility grants { + , + } { - and - }
transportation grants { + and high cost disabilities 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.
(2) The target amount for each education service district is
equal to the following percent of the total of the education
service district's component school districts' general purpose
grants, facility grants and transportation grants, as calculated
under subsection (1)(d) of this section:
(a) For the 2001-2002 fiscal year, 4.888 percent.
(b) For the 2002-2003 fiscal year, 4.866 percent.
(c) For the 2003-2004 fiscal year, 4.987 percent.
(d) For the 2004-2005 fiscal year, 5.097 percent.
(3) For the 2003-2004 and 2004-2005 fiscal years, 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 of the
education service district for that fiscal year. 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 20. { + The amendments to section 4, chapter 695,
Oregon Laws 2001, by section 19 of this 2003 Act apply to State
School Fund distributions commencing with the 2003-2004
distribution. + }
SECTION 21. ORS 327.336 is amended to read:
327.336. (1) As used in this section:
(a) 'Extended ADMw' means the district extended weighted
average daily membership computed under ORS 327.013 (6).
(b) 'Local option tax rate' means the amount of local option
taxes imposed by the school district for the current fiscal year,
after compression under ORS 310.150 and after subtraction of the
amount of school district local option taxes that are distributed
to an urban renewal agency pursuant to ORS 457.440, divided by
the assessed value of the school district.
(c) 'School district' means a common or union high school
district.
(d) 'Target district' means the school district that, for the
fiscal year prior to the year for which grants are being
determined, had a total assessed value of taxable property per
district extended ADMw that was greater than all but 25 percent
of the school districts in this state for that prior fiscal year.
The Department of Education shall determine which school district
is the target district for a fiscal year, based on the total
assessed values of school districts reported to the Department of
Education by the Department of Revenue for the fiscal year prior
to the year for which grants are being determined under this
section.
(2) A school district shall receive a local option equalization
grant for a fiscal year:
(a) In which the school district imposes local option taxes
pursuant to ORS 280.040 to 280.145; and
(b) For which the total assessed value of taxable property per
extended ADMw of the school district for the prior fiscal year
does not exceed the total assessed value of taxable property per
extended ADMw of the target district for the prior fiscal year.
(3) The amount of the local option equalization grant shall
equal the lesser of:
(a) The product of the local option tax rate of the school
district for the current fiscal year X (total assessed value per
extended ADMw of the target district for the prior fiscal year -
total assessed value per extended ADMw of the school district for
the prior fiscal year) X the extended ADMw of the school district
for the prior fiscal year; or
(b) The amount obtained by subtracting the local option tax
imposed by the school district for the current fiscal year, after
compression under ORS 310.150, from the lesser of:
(A) { - Ten - } { + Fifteen + } percent of the combined
total for the school district of the general purpose grant, the
transportation grant { + , + } { - and - } the facility grant
{ + and the high cost disabilities grant + } of the school
district for the current fiscal year; or
(B) { - $500 - } { + $750 + } multiplied by the extended
ADMw of the school district for the current fiscal year.
(4) If the amount computed under subsection (3)(b) of this
section is zero or less, a local option equalization grant may
not be made to the school district for the fiscal year.
(5) As soon as is practicable after school districts have
certified property taxes to the assessor under ORS 310.060, the
Department of Revenue shall report to the Department of Education
a list of school districts certifying local option taxes for the
current fiscal year and the local option tax rates for those
districts. The amount of each local option equalization grant
shall be calculated by the Department of Education.
(6) If the election authorizing the imposition of a local
option tax is held after the start of a biennium in which the
local option tax is to be imposed, the local option equalization
grant for a fiscal year of that biennium shall be determined as
otherwise prescribed in this section, but may not be paid to the
school district until the first fiscal year of the next
succeeding biennium.
SECTION 21a. { + The amendments to ORS 327.336 by section 21
of this 2003 Act apply to local option equalization grants
awarded on or after the effective date of this 2003 Act. + }
SECTION 22. ORS 327.336, as amended by section 21 of this 2003
Act, is amended to read:
327.336. (1) As used in this section:
(a) 'Extended ADMw' means the district extended weighted
average daily membership computed under ORS 327.013 (6).
(b) 'Local option tax rate' means the amount of local option
taxes imposed by the school district for the current fiscal year,
after compression under ORS 310.150 and after subtraction of the
amount of school district local option taxes that are distributed
to an urban renewal agency pursuant to ORS 457.440, divided by
the assessed value of the school district.
(c) 'School district' means a common or union high school
district.
(d) 'Target district' means the school district that, for the
fiscal year prior to the year for which grants are being
determined, had a total assessed value of taxable property per
district extended ADMw that was greater than all but 25 percent
of the school districts in this state for that prior fiscal year.
The Department of Education shall determine which school district
is the target district for a fiscal year, based on the total
assessed values of school districts reported to the Department of
Education by the Department of Revenue for the fiscal year prior
to the year for which grants are being determined under this
section.
(2) A school district shall receive a local option equalization
grant for a fiscal year:
(a) In which the school district imposes local option taxes
pursuant to ORS 280.040 to 280.145; and
(b) For which the total assessed value of taxable property per
extended ADMw of the school district for the prior fiscal year
does not exceed the total assessed value of taxable property per
extended ADMw of the target district for the prior fiscal year.
(3) The amount of the local option equalization grant shall
equal the lesser of:
(a) The product of the local option tax rate of the school
district for the current fiscal year X (total assessed value per
extended ADMw of the target district for the prior fiscal year -
total assessed value per extended ADMw of the school district for
the prior fiscal year) X the extended ADMw of the school district
for the prior fiscal year; or
(b) The amount obtained by subtracting the local option tax
imposed by the school district for the current fiscal year, after
compression under ORS 310.150, from the lesser of:
(A) Fifteen percent of the combined total for the school
district of the general purpose grant, the transportation grant
{ - , - } { + and + } the facility grant { - and the high
cost disabilities grant - } of the school district for the
current fiscal year; or
(B) $750 multiplied by the extended ADMw of the school district
for the current fiscal year.
(4) If the amount computed under subsection (3)(b) of this
section is zero or less, a local option equalization grant may
not be made to the school district for the fiscal year.
(5) As soon as is practicable after school districts have
certified property taxes to the assessor under ORS 310.060, the
Department of Revenue shall report to the Department of Education
a list of school districts certifying local option taxes for the
current fiscal year and the local option tax rates for those
districts. The amount of each local option equalization grant
shall be calculated by the Department of Education.
(6) If the election authorizing the imposition of a local
option tax is held after the start of a biennium in which the
local option tax is to be imposed, the local option equalization
grant for a fiscal year of that biennium shall be determined as
otherwise prescribed in this section, but may not be paid to the
school district until the first fiscal year of the next
succeeding biennium.
SECTION 23. { + The amendments to ORS 327.336 by section 22 of
this 2003 Act become operative on July 1, 2005. + }
SECTION 23a. { + The amendments to ORS 327.336 by section 22
of this 2003 Act apply to local option equalization grants
awarded on or after July 1, 2005. + }
SECTION 24. ORS 327.099 is amended to read:
327.099. (1) The Department of Education shall adjust the
distribution to a school district to reflect the difference
between the estimated level of local revenues to the district
under ORS 327.013 { - (9) - } and the projected level of those
same local revenues used to calculate the State School Fund
apportionment to the district. The adjustment shall be
incorporated in the May 15 apportionment to the district in the
distribution year.
(2) The department shall adjust the May 15 apportionment to a
school district in the distribution year to reflect an ADMw of
the district equal to the higher of the ADMw of the prior year or
the adjusted ADMw for the December quarter. Adjusted ADMw for the
December quarter shall equal:
(a) ADMw as determined by the department from information
provided in the December quarterly report for the current
distribution year filed with the department under ORS 327.133;
(b) Multiplied by the lesser of 1.0 or the average of the
ratios for the preceding two years of the ADM for the year ending
June 30 to the ADM for the quarter ending December 31 for the
same school year as filed under ORS 327.133.
(3) The sum equal to the sum of all negative adjustments made
to the May 15 apportionment under subsection (1) of this section
is appropriated to the department for purposes of funding
positive adjustments required under subsection (1) of this
section and adjustments required under subsection (2) of this
section.
(4) The department shall also set aside an amount of the funds
appropriated to the State School Fund for the fiscal year to fund
any positive adjustments required under subsection (1) of this
section and adjustments required under subsection (2) of this
section in excess of the amount available under subsection (3) of
this section. The amount set aside shall be as determined by law.
(5) If the amounts available under subsections (3) and (4) of
this section are either not sufficient to fund the positive
adjustments or exceed the positive adjustments to districts
required under subsections (1) and (2) of this section and the
adjustments required under subsection (2) of this section, the
Superintendent of Public Instruction shall recalculate the
funding percentage in ORS 327.013 (2) to distribute as nearly as
practicable the total sum available for distribution.
SECTION 25. ORS 338.145 is amended to read:
338.145. (1) The public charter school shall be responsible for
providing transportation to students who reside within the school
district and who attend the public charter school. The public
charter school may negotiate with a school district for the
provision of transportation to students attending the public
charter school.
(2) Notwithstanding subsection (1) of this section, the school
district within which the public charter school is located shall
be responsible for the transportation of students attending the
public charter school pursuant to ORS 327.043 in the same manner
as students attending nonchartered public schools if the student
is a resident of the school district. However, a school district
may not be required to add or extend existing bus routes or other
transportation services pursuant to this subsection.
(3) Students who attend public charter schools and who reside
outside of the school district may use existing bus routes and
transportation services of the school district in which a public
charter school is located.
(4) Any transportation costs incurred by a school district
under this section shall be considered approved transportation
costs for purposes of ORS 327.013 { - (8) - } in the same
manner as transportation costs incurred by the school district
for transporting students who attend nonchartered public schools
are considered approved transportation costs for purposes of ORS
327.013 { - (8) - } .
SECTION 26. { + Sections 27 to 30 of this 2003 Act are added
to and made a part of ORS 327.006 to 327.081. + }
SECTION 27. { + (1) There is transferred to the Small School
District Supplement Fund from the State School Fund, for the
fiscal year beginning July 1, 2003, the amount of $2.5 million.
(2) There is transferred to the Small School District
Supplement Fund from the State School Fund, for the fiscal year
beginning July 1, 2004, the amount of $2.5 million. + }
SECTION 28. { + (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 30 of this 2003
Act. + }
SECTION 29. { + As used in this section and section 30 of this
2003 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 30. { + (1) In addition to those moneys distributed
through the State School Fund, 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.
(2) The amount of each grant = the small high school's ADM X
(the total amount available for the grants in each fiscal year :
the total ADM of all small high schools).
(3) A small school district shall receive a grant under this
section for each small high school operated by the school
district.
(4) The State Board of Education shall adopt any rules
necessary for the administration of this section. + }
SECTION 31. { + Sections 27 to 30 of this 2003 Act are
repealed on June 30, 2005. + }
SECTION 32. ORS 327.077 is amended to read:
327.077. (1) A school may qualify as a remote small elementary
school if the average daily membership in grades one through
eight for an elementary school teaching:
(a) Eight grades is below 224.
(b) Seven grades is below 196.
(c) Six grades is below 168.
(d) Five grades is below 140.
(e) Four grades is below 112.
(f) Three grades is below 84.
(g) Two grades is below 56.
(h) One grade is below 28.
(2) A school may qualify as a small high school if:
(a) The school is in a school district that has an ADMw of less
than 8,500; and
(b) The average daily membership in grades 9 through 12 for a
high school teaching:
(A) Four grades is below 350.
(B) Three grades is below 267.
(3) No elementary school shall qualify as a remote small
elementary school under subsection (1) of this section if it is
within eight miles by the nearest traveled road from another
elementary school unless there are physiographic conditions that
make transportation to another school not feasible.
(4)(a) If an elementary school in a school district qualifies
as a remote small elementary school, the district shall have an
additional amount added to the district's ADMw.
(b) The additional amount = {224 - (ADMa : (number of grades
in the school : eight))} X 0.0045 X ADMa X distance adjustment.
(5)(a) If a high school in a district qualifies as a small high
school, the district shall have an additional amount added to the
district's ADMw.
(b) The additional amount = {350 - (ADMa : (number of grades
in the school : four))} X 0.0029 X ADMa.
(6) The distance adjustment for an elementary school = 0.025
for each 10th of a mile more than eight miles that a school is
away from the nearest elementary school measured by the nearest
traveled road or 1.0, whichever is less.
(7)(a) A school may qualify as a remote small elementary school
under this section only if the location of the school has not
changed since January 1, 1995, and if the school qualified as a
remote small school on July 18, 1995.
(b) A school may qualify as a small high school under this
section only if the location of the school has not changed since
January 1, 1995, and if the school qualified as a small high
school on October 23, 1999.
(c) A public charter school as defined in ORS 338.005 may
qualify as a remote small elementary school under this section
only if the location of the school has not changed since January
1, 1995, and if the school qualified as a nonchartered public
remote small school on July 18, 1995.
(d) A public charter school as defined in ORS 338.005 may
qualify as a small high school under this section only if the
location of the school has not changed since January 1, 1995, and
if the school qualified as a nonchartered public remote small
school on July 18, 1995.
(e) The Superintendent of Public Instruction may waive the
requirements of paragraph (a), (b), (c) or (d) of this subsection
if the superintendent determines that exceptional circumstances
exist.
(f) An alternative education program as defined in ORS 336.615
may not qualify as a small high school under this section.
(8) The opening of a public charter school shall not disqualify
a school as a remote small elementary school under subsection (3)
of this section or change the distance adjustment for a school
under subsection (6) of this section.
{ + (9)(a) Notwithstanding subsections (2), (5) and (7)(b)
and (d) of this section, if two high schools merge and prior to
the merger at least one of the high schools qualified as a small
high school under this section, the Department of Education shall
continue to add an additional amount pursuant to subsection (5)
of this section to the ADMw of the school district in which the
new merged high school is located that is equal to the higher of:
(A) The additional amount the school district of each of the
former small high schools would have received under this section
for the small high school based on the ADMa of each of the high
schools prior to the merger; or
(B) In the case of a high school that remains qualified as a
small high school under subsection (2) of this section after a
merger, the ADMa of the merged small high school.
(b) The department shall add the additional amount under this
subsection only for the first four fiscal years after the merger
of the two high schools is final. If the merger of the two high
schools becomes final on or before September 1, for purposes of
this paragraph the merger shall be considered final in the prior
fiscal year. + }
{ - (9) - } { + (10) + } For purposes of this section:
(a) The 'adjusted average daily membership' or 'ADMa' for an
elementary school shall be the average daily membership for the
school, but no less than 25.
(b) The 'adjusted average daily membership' or 'ADMa' for a
high school shall be the average daily membership for the school,
but no less than 60.
SECTION 33. { + The amendments to ORS 327.077 by section 32 of
this 2003 Act apply to:
(1) State School Fund distributions commencing with the
2003-2004 distribution; and
(2) Small high schools for which the merger with another high
school became final on or after January 1, 2003. + }
SECTION 34. { + Section 35 of this 2003 Act is added to and
made a part of ORS 310.200 to 310.242. + }
SECTION 35. { + (1) If the permanent rate limit on operating
taxes of a school district is increased on or after the effective
date of this 2003 Act pursuant to section 11 (5)(d), Article XI
of the Oregon Constitution, the statutory rate limit on operating
taxes of the school district shall remain at the same rate as
before the increase in the permanent rate limit on operating
taxes of the district.
(2) This section applies only to school districts with a
statutory rate limit on operating taxes on July 1, 2003, that is
greater than $4.50 per $1,000 of assessed value. + }
SECTION 36. { + Section 35 of this 2003 Act applies to tax
years beginning on or after July 1, 2005. + }
SECTION 37. { + Section 38 of this 2003 Act is added to and
made a part of ORS chapter 328. + }
SECTION 38. { + (1) A school district may enter into a funds
diversion agreement with the Department of Education for the
purpose of making lease payments to an Indian tribe for the debt
service costs of capital improvements of public school facilities
on the reservation of the Indian tribe. A funds diversion
agreement entered into under this section must contain all of the
following provisions:
(a) Moneys payable to the school district by the department
from the State School Fund will be paid directly to a debt
service account in amounts equal to the debt service owed by the
school district.
(b) The department must pay the amounts required under the
funds diversion agreement to the debt service account agreed to
by the Indian tribe and the school district.
(c) The department must pay the amounts required under the
funds diversion agreement pursuant to the schedule specified in
the agreement before paying any other amounts to the school
district. The agreement may provide an exception for amounts
payable under a prior funds diversion agreement with the school
district.
(d) The agreement may not be revoked by the school district.
(e) The agreement will remain in effect until all payments
under the lease have been made.
(2) If the department is not able to pay moneys to a debt
service account as required by a funds diversion agreement, the
department shall give notice to the school district within 30
days after becoming aware that the moneys will not be paid
according to the agreement.
(3) Nothing in this section or in any funds diversion agreement
entered into under this section obligates the state or the
department to pay an amount to a school district that is more
than amounts the district is otherwise entitled to receive under
law. + }
SECTION 39. { + Section 38 of this 2003 Act is repealed on
June 30, 2029. + }
SECTION 40. { + On January 1, 2004, the Out-of-State
Disabilities Placement Education Fund is abolished. Any moneys in
the fund on January 1, 2004, shall be transferred to the State
School Fund. + }
SECTION 41. { + ORS 327.047 and 327.051 are repealed on
January 1, 2004. + }
SECTION 42. { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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