74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
SA to A-Eng. HB 2040
LC 1578/HB 2040-A2
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2040
By COMMITTEE ON RULES
June 25
On page 1 of the printed A-engrossed bill, line 2, after the
semicolon insert 'creating new provisions; amending ORS 327.006,
327.008, 327.019, 327.125, 327.137, 339.129 and 340.045;
repealing ORS 327.355, 327.357 and 327.360;'.
On page 3, after line 28, insert:
' { + SECTION 8. + } 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 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 95.25 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, 327.348, 327.355, 327.357 and 327.360 the
total amount calculated under paragraph (b) of this subsection as
school district general purpose grants, facility grants, high
cost disabilities 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,
transportation grant and high cost disabilities grant amounts for
each school district.
' (4) The general services grant for an education service
district shall equal the higher of:
' (a) { + The + } total amount calculated under subsection
(3)(d) of this section for the component school districts of the
education service district X (4.75 : 95.25); or
' (b) { - $950,000 - } { + $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
{ - , - } { + :
' (a) + } The State School Fund grant of an education service
district may not be less than zero { + ; and
' (b) The State School Fund grant of an education service
district shall be in an amount that, when combined with the local
revenues of the education service district, equals $1 million or
more + }.
' (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 9. + } { + The amendments to ORS 327.019 by
section 8 of this 2007 Act apply to State School Fund
distributions commencing with the 2007-2008 distribution. + }
' { + SECTION 10. + } { + (1) During the 2007-2009 biennium,
the legislative interim committees on revenue shall conduct a
study of the adequacy of funding of small school districts and
small education service districts. The committees shall examine:
' (a) The relationship between small school districts and
education service districts;
' (b) Whether the additional amounts received by small school
districts that are attributable to the additional amount added to
the ADMw of those districts under ORS 327.013 (7)(a)(F) and
327.077 and the amount awarded as grants under ORS 327.357, when
combined with other funding, are adequate to provide sufficient
funding for those small school districts;
' (c) What types of small school districts are not being
provided adequate funding; and
' (d) The long term effects of not providing small school
districts and small education service districts with adequate
funding.
' (2) Based on the study, the legislative interim committees on
revenue shall make recommendations to the Seventy-fifth
Legislative Assembly and may presession file proposed legislation
that would implement the recommendations. + }
' { + SECTION 11. + } ORS 327.006 is amended to read:
' 327.006. As used in ORS 327.006 to 327.133, 327.348 { - ,
327.355, 327.357, 327.360 - } and 327.731:
' (1) 'Aggregate days membership' means the sum of days present
and absent, according to the rules of the State Board of
Education, of all resident pupils when school is actually in
session during a certain period. The aggregate days membership of
kindergarten pupils shall be calculated on the basis of a
half-day program.
' (2)(a) 'Approved transportation costs' means those costs as
defined by rule of the State Board of Education and is limited to
those costs attributable to transporting or room and board
provided in lieu of transporting:
' (A) Elementary school students who live at least one mile
from school;
' (B) Secondary school students who live at least 1.5 miles
from school;
' (C) Any student required to be transported for health or
safety reasons, according to supplemental plans from districts
that have been approved by the state board identifying students
who are required to be transported for health or safety reasons,
including special education;
' (D) Preschool children with disabilities requiring
transportation for early intervention services provided pursuant
to ORS 343.224 and 343.533;
' (E) Students who require payment of room and board in lieu of
transportation;
' (F) A student transported from one school or facility to
another school or facility when the student attends both schools
or facilities during the day or week; and
' (G) Students participating in school-sponsored field trips
that are extensions of classroom learning experiences.
' (b) 'Approved transportation costs' does not include the cost
of constructing boarding school facilities.
' (3) 'Average daily membership' or 'ADM' means the aggregate
days membership of a school during a certain period divided by
the number of days the school was actually in session during the
same period. However, if a district school board adopts a class
schedule that operates throughout the year for all or any schools
in the district, average daily membership shall be computed by
the Department of Education so that the resulting average daily
membership will not be higher or lower than if the board had not
adopted such schedule.
' (4) 'Consumer Price Index' means the Consumer Price Index for
All Urban Consumers of the Portland, Oregon, Standard
Metropolitan Statistical Area, as compiled by the United States
Department of Labor, Bureau of Labor Statistics.
' (5) 'Kindergarten' means a kindergarten program that conforms
to the standards and rules adopted by the State Board of
Education.
' (6) 'Net operating expenditures' means the sum of
expenditures of a school district in kindergarten through grade
12 for administration, instruction, attendance and health
services, operation of plant, maintenance of plant, fixed charges
and tuition for resident students attending in another district,
as determined in accordance with the rules of the State Board of
Education, but net operating expenditures does not include
transportation, food service, student body activities, community
services, capital outlay, debt service or expenses incurred for
nonresident students.
' (7)(a) 'Resident pupil' means any pupil:
' (A) Whose legal school residence is within the boundaries of
a school district reporting the pupil, if the district is legally
responsible for the education of the pupil, except that '
resident pupil' does not include a pupil who pays tuition or for
whom the parent pays tuition or for whom the district does not
pay tuition for placement outside the district; or
' (B) Whose legal residence is not within the boundaries of the
district reporting the pupil but attends school in the district
with the written consent of the affected school district boards.
' (b) A pupil shall not be considered to be a resident pupil
under paragraph (a)(A) of this subsection if the pupil is
attending school in another school district pursuant to a
contract under ORS 339.125 and in the prior year was considered
to be a resident pupil in another school district under paragraph
(a)(B) of this subsection. The pupil shall continue to be
considered a resident of another school district under paragraph
(a)(B) of this subsection.
' (c) A pupil shall not be considered to be a resident pupil
under paragraph (a)(B) of this subsection if the pupil is
attending school in a school district pursuant to an agreement
with another school district under ORS 339.133 and in the prior
year was considered to be a resident pupil under paragraph (a)(A)
of this subsection because the pupil was attending school in
another school district pursuant to a contract under ORS 339.125.
The pupil shall continue to be considered a resident pupil under
paragraph (a)(A) of this subsection.
' (d) 'Resident pupil' includes a pupil admitted to a school
district under ORS 339.115 (7).
' (8) 'Standard school' means a school meeting the standards
set by the rules of the State Board of Education.
' (9) 'Tax' and 'taxes' includes all taxes on property,
excluding exempt bonded indebtedness, as those terms are defined
in ORS 310.140.
' { + SECTION 12. + } ORS 327.008, as amended by section 6a,
chapter 803, Oregon Laws 2005, 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 327.077, 327.095, 327.099, 327.101, 327.125,
327.137, 327.348,
{ - 327.355, 327.357, 327.360, - } 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 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 $25 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 ORS 327.348.
' { - (9) Each fiscal year, the Department of Education shall
transfer the amount of $2.5 million from the State School Fund to
the Small School District Supplement Fund established in ORS
327.360. - }
' { + SECTION 13. + } ORS 327.019, as amended by section 8 of
this 2007 Act, 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 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 95.25 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 { - , - } { + and + } 327.348 { - ,
327.355, 327.357 and 327.360 - } the total amount calculated
under paragraph (b) of this subsection as school district general
purpose grants, facility grants, high cost disabilities 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,
transportation grant and high cost disabilities grant amounts for
each school district.
' (4) The general services grant for an education service
district shall equal the higher of:
' (a) The total amount calculated under subsection (3)(d) of
this section for the component school districts of the education
service district X (4.75 : 95.25); 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:
' (a) The State School Fund grant of an education service
district may not be less than zero; and
' (b) The State School Fund grant of an education service
district shall be in an amount that, when combined with the local
revenues of the education service district, equals $1 million or
more.
' (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 14. + } ORS 327.125 is amended to read:
' 327.125. The Superintendent of Public Instruction shall
administer the provisions of ORS 327.006 to 327.133, 327.348
{ - , 327.355, 327.357, 327.360 - } and 327.731. The State
Board of Education shall adopt all necessary rules not
inconsistent with ORS 327.006 to 327.133, 327.348 { - , 327.355,
327.357, 327.360 - } and 327.731 to carry into effect the
provisions of those statutes.
' { + SECTION 15. + } ORS 327.137 is amended to read:
' 327.137. Every common or union high school district shall
file a copy of its audit statement with the Department of
Education within six months of the end of the fiscal year for
which the audit is required. If the audit report, as submitted to
the district, fails to provide the detail necessary for the
computation required in the administration of ORS 327.006 to
327.133, 327.348, { - 327.355, 327.357, 327.360, - } 327.731,
328.542 and 530.115 and this section, the district shall submit
the necessary information on forms provided by the department
within the time prescribed for filing the audit in this section.
Any district failing to file a copy of its report under this
section or ORS 327.133 shall not receive any payments from the
State School Fund until such reports are filed.
' { + SECTION 16. + } ORS 339.129 is amended to read:
' 339.129. (1) A school district shall provide or cause to be
provided appropriate education for children placed in a local or
regional correctional facility located in the school district.
The education may be provided by the school district or an
education service district.
' (2) The school district may claim State School Fund
reimbursement under ORS 327.006 to 327.133, 327.348 { - ,
327.355, 327.357, 327.360 - } and 327.731 for each child who is
in a local or regional correctional facility.
' (3) A local or regional correctional facility shall notify
the school district within which the facility is located of the
name and date of birth of each school-age child placed in the
facility, including a child with a disability under the age of 22
years who may be eligible for special education. The notice shall
be in writing and shall be given within five business days of the
child's placement in the facility.
' (4) The local or regional correctional facility shall allow
the school district and education service district to have safe
and reasonable access to children placed in that facility for
whom the school district is required to provide education.
' (5) As used in this section:
' (a) 'Local correctional facility' means a local correctional
facility as defined in ORS 169.005.
' (b) 'Regional correctional facility' means a regional
correctional facility as defined in ORS 169.620.
' { + SECTION 17. + } ORS 340.045 is amended to read:
' 340.045. (1) An eligible student enrolled in an eligible
post-secondary course at an eligible post-secondary institution
pursuant to ORS 340.030 shall continue to be considered a
resident pupil of the student's school district for purposes of
calculation of the State School Fund grant under ORS 327.006 to
327.133, 327.348 { - , 327.355, 327.357, 327.360 - } and
327.731.
' (2) A school district shall negotiate a financial agreement
with any eligible post-secondary institution that accepts a
student for enrollment in an eligible post-secondary course
pursuant to ORS 340.030 for the payment of actual tuition, fees
and other required instructional costs associated with the
enrollment of the student in eligible post-secondary courses.
' (3)(a) The amount of each school district's general purpose
grant per extended ADMw as calculated under ORS 327.013 shall be
determined each fiscal year by the Department of Education and
made available to all school districts and, upon request, to any
eligible post-secondary institution.
' (b) Each fiscal year, a school district shall expend per
student participating in the Expanded Options Program a minimum
of 50 percent of the school district's general purpose grant per
extended ADMw. Expenditures that qualify under this paragraph
include amounts expended on tuition, fees, textbooks, equipment
and materials required for an eligible post-secondary course.
' (c) A school district may request a waiver from the
Superintendent of Public Instruction or the superintendent's
designee of the requirements of paragraph (b) of this subsection.
The superintendent or the superintendent's designee shall grant
the waiver if:
' (A) Compliance with the requirements of paragraph (b) of this
subsection would cause the school district extreme financial
distress; or
' (B) The school district offers dual credit technical
preparation programs, such as two-plus-two programs, advanced
placement or International Baccalaureate programs and other
accelerated college credit programs, and:
' (i) The programs offered by the school district serve all
qualified applicants; and
' (ii) There are no charges to at-risk students.
' (4) In addition to any financial agreement entered into under
subsection (2) of this section, the resident school district of
the eligible student shall enter into an agreement with an
eligible post-secondary institution that accepts a student for
enrollment in an eligible post-secondary course that is a
nontuition course or noncredit course pursuant to ORS 340.030 for
the payment of the actual instructional costs associated with the
student's attending the eligible post-secondary course at the
institution.
' (5) Nothing in this section shall prohibit an eligible
post-secondary institution from receiving additional state
funding that may be available under any other law.
' { + SECTION 18. + } { + ORS 327.355, 327.357 and 327.360
are repealed. + }
' { + SECTION 19. + } { + The amendments to ORS 327.006,
327.008, 327.019, 327.125, 327.137, 339.129 and 340.045 by
sections 11 to 17 of this 2007 Act and the repeal of ORS 327.355,
327.357 and 327.360 by section 18 of this 2007 Act become
operative on June 30, 2012. + } ' .
In line 29, delete '8' and insert '20'.
----------