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 2403
A-Engrossed
Senate Bill 819
Ordered by the Senate April 28
Including Senate Amendments dated April 28
Sponsored by Senator DEVLIN, Representative MACPHERSON
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.
Modifies portion of local option property tax revenues not
considered local revenues for purposes of State School Fund
distributions.
Applies to State School Fund distributions occurring on or
after July 1, 2003.
{ + Allows continued weighting for first four fiscal years
for small high school that merges with another high school on or
after January 1, 2003. + }
Declares emergency, effective July 1, 2003.
A BILL FOR AN ACT
Relating to school finance; creating new provisions; amending ORS
327.013, 327.077 and 327.336; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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 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) Transportation Grant = 70 percent of Approved
Transportation Costs.
(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.
(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) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
(B) { - Ten - } { + 15 + } 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) { - $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 2. { + The amendments to ORS 327.013 by section 1 of
this 2003 Act apply to State School Fund distributions commencing
with the 2003-2004 distribution. + }
SECTION 3. 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 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) Transportation Grant = 70 percent of Approved
Transportation Costs.
(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) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
(B) { - Ten - } { + 15 + } 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) { - $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 4. { + The amendments to ORS 327.013 by section 3 of
this 2003 Act apply to State School Fund distributions commencing
with the 2005-2006 distribution. + }
SECTION 5. 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 - } { + 15 + } percent of the combined total
for the school district of the general purpose grant, the
transportation grant and the facility 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 6. 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 7. { + The amendments to ORS 327.077 by section 6 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 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 July 1,
2003. + }
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