75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1961
 
                         Senate Bill 555
 
Sponsored by Senator CARTER, Representative NOLAN
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Allows certain school districts to increase property tax rates.
Excludes amounts attributable to increase from local revenues of
school district for purposes of calculation of State School Fund
grants.
  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, 327.026, 327.061, 327.095, 327.099,
  327.101, 327.336, 338.157, 338.165 and 340.065; repealing ORS
  310.239 and section 1, chapter 4, Oregon Laws 2006; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2009 Act is added to and made
a part of ORS 327.006 to 327.133. + }
  SECTION 2.  { + For the purpose of State School Fund
distributions for school districts:
  (1) 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 327.410.
  (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 that 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. + }  { +
  (j) Any amount distributed to the district in the prior fiscal
year under ORS 327.019 (8).
  (2) Local Revenues do not include:
  (a) 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) Twenty percent of the total received by the school district
from the general purpose grant, the transportation grant, the
facility grant and the high cost disabilities grant of the
district, as those grants are calculated under ORS 327.013; or
  (C) $1,000 per district extended ADMw, as calculated under ORS
327.013, increased each fiscal year by three percent above the
amount allowed per district extended ADMw for the prior fiscal
year.
  (b) For a school district with a statutory rate limit on July
1, 2003, that is greater than $4.50 per $1,000 of assessed value,
the amount of property taxes actually received by the district,
including penalties and interest on taxes, that results from an
increase in the rate of ad valorem property tax of the district
allowed under section 11 (5)(d), Article XI of the Oregon
Constitution. + }
  SECTION 3. ORS 327.013, as amended by section 4, chapter 4,
Oregon Laws 2006, section 91, chapter 70, Oregon Laws 2007, and
section 6, chapter 778, Oregon Laws 2007, is amended to read:
  327.013. The State School Fund distributions for school
districts   { - shall be computed as follows: - }  { +  include
the following grants: + }
  (1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw. { +  For the purpose of the calculation
made under this subsection: + }
    { - (2) - }   { + (a) + } The funding percentage shall be
calculated by the Superintendent of Public Instruction to
distribute as nearly as practicable the total sum  { + of
money + } available for distribution   { - of money - } .
    { - (3) - }   { + (b) + } Target Grant = Statewide Target per
ADMw Grant + Teacher Experience Factor. { +  For the purpose of
the calculation made under this paragraph: + }
    { - (4) - }   { + (A) + } Statewide Target per ADMw Grant =
$4,500.
    { - (5) - }   { + (B) + } Teacher Experience Factor = $25 X
{District average teacher experience - statewide average teacher
experience}.  { + As used in this subparagraph, + } 'average
teacher experience' means the average, in years, of teaching
experience of   { - certified - }   { + licensed + } teachers as
reported to the Department of Education.
    { - (6) - }   { + (c) + } District extended ADMw = ADMw or
ADMw of the prior year, whichever is greater. { +  For the
purpose of this paragraph: + }
    { - (7)(a) - }   { + (A) + } Weighted average daily
membership or ADMw = average daily membership + an additional
amount computed as follows:
    { - (A) - }   { + (i) + } 1.0 for each student in average
daily membership eligible for special education as a child with a
disability under ORS 343.035,   { - applicable to not to - }
 { + which may not + } exceed 11 percent of the district's ADM
without review and approval   { - of - }   { + by + } 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 - }  { +  made under this
sub-subparagraph + }.
    { - (B) - }   { + (ii) + } 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) - }   { + (iii) + } 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) - }   { + (iv) + } -0.1 for each student in average
daily membership enrolled in an elementary district operating
kindergarten through grade   { - 6 - }   { + six + } or
kindergarten through grade
  { - 8 - }   { + eight + } or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade   { - 8 - }  { +
eight + }.
    { - (E) - }   { + (v) + } 0.25 times the sum of the
following:
    { - (i) - }   { + (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 - }   { + United States + } 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) - }   { + (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 - }
 { + United States + } 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) - }   { + (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) - }   { + (vi) + }   { - An additional amount as
determined by ORS 327.077 shall be added to the ADMw - }
 { + The amount determined under ORS 327.077 + } for each remote
small elementary school and for each small high school in the
district.
    { - (G) - }   { + (B) + } All numbers of children used for
the computation in this   { - section - }   { + paragraph + }
must reflect any district consolidations that have occurred since
the numbers were compiled.
    { - (b) - }   { + (C) + } 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) - }  { + subparagraph (A)(v) and (vi) + } of this
 { - subsection shall - }   { + paragraph may + } not exceed 2.0.
    { - (8) - }   { + (2) + } High cost disabilities grant = the
total amount received by a school district under ORS 327.348
 
 { - , - }  for providing special education and related services
to resident pupils with disabilities.
    { - (9)(a) - }   { + (3)(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) 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 327.410; - }
    { - (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) Notwithstanding subsection (10) of this section,
Local Revenues do not include, 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) Twenty percent of the combined total for the school
district of the general purpose grant, the transportation grant,
the facility grant and the high cost disabilities grant of the
district; or - }
    { - (c) $1,000 per district extended ADMw, increased each
fiscal year by three percent above the amount allowed per
district extended ADMw for the prior fiscal year. - }
    { - (12)(a) - }   { + (4)(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  { + added + } onto existing school
buildings and
  { - adding - }  premanufactured structures  { + added + } 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. ORS 327.008, as amended by section 1, chapter 39,
Oregon Laws 2008, 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 { +  and section 2 of this 2009 Act + }.
  (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 $18 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.
  (10) Each fiscal year, the Department of Education may expend
up to $550,000 from the State School Fund for the contract
described in ORS 329.488. The amount distributed to education
service districts from the State School Fund under this section
and ORS 327.019 shall be reduced by the amount expended by the
department under this subsection.
  (11) Each biennium, the Department of Education may expend up
to $800,000 from the State School Fund for the administration of
ORS 326.133 and 326.136.
  (12) Each biennium, the Department of Education may expend up
to $350,000 from the State School Fund to provide administration
of and support for the development of talented and gifted
education under ORS 343.404.
  (13) Each biennium, the Department of Education may expend up
to $150,000 from the State School Fund for the administration of
a program to increase the number of speech-language pathologists
and speech-language pathology assistants under ORS 348.394 to
348.406.
  SECTION 5. ORS 327.008, as amended by section 12, chapter 846,
Oregon Laws 2007, and section 2, chapter 39, Oregon Laws 2008, 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, 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 { +  and section 2 of this 2009 Act + }.
  (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 $18 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 may expend up
to $550,000 from the State School Fund for the contract described
in ORS 329.488. The amount distributed to education service
districts from the State School Fund under this section and ORS
327.019 shall be reduced by the amount expended by the department
under this subsection.
  (10) Each biennium, the Department of Education may expend up
to $800,000 from the State School Fund for the administration of
ORS 326.133 and 326.136.
  (11) Each biennium, the Department of Education may expend up
to $350,000 from the State School Fund to provide administration
of and support for the development of talented and gifted
education under ORS 343.404.
  (12) Each biennium, the Department of Education may expend up
to $150,000 from the State School Fund for the administration of
a program to increase the number of speech-language pathologists
and speech-language pathology assistants under ORS 348.394 to
348.406.
  SECTION 6. 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 - }  { +  section 2 of this 2009 Act + }, + 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) $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 7. ORS 327.019, as amended by section 13, chapter 846,
Oregon Laws 2007, 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 - }  { +  section 2 of this 2009 Act + }, + 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 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 8. ORS 327.026 is amended to read:
  327.026. (1) In order to accomplish the purpose described in
ORS 326.700, the State Board of Education shall adopt by rule
definitions and procedures to be applied to the computation of
the State School Fund allocations where necessary to make
students enrolled in the Youth Corrections Education Program, as
defined in ORS 326.695, and the Juvenile Detention Education
Program, as defined in ORS 326.695, equivalent to students
enrolled in common and union high school districts for purposes
of distribution of the fund.
  (2)(a) The Youth Corrections Education Program shall be
entitled to receive from the State School Fund for each school
year a special State School Fund grant, consisting of a general
purpose grant that is equal to the Youth Corrections Education
Program ADM multiplied by 2.0 multiplied by the additional per
student weight, as   { - defined - }   { + calculated + } in ORS
327.013   { - (7)(a)(A) - }  { +  (1)(c)(A)(i) + }, multiplied by
Funding Percentage and further multiplied by Statewide Target per
ADMw Grant.
  (b) Notwithstanding paragraph (a) of this subsection, the Youth
Corrections Education Program may not receive moneys under this
section from the State School Fund for any youth in the program
who:
  (A) Has received a high school diploma; or
  (B) Is 21 years of age or older.
  (3) The Juvenile Detention Education Program shall be entitled
to receive from the State School Fund for each school year a
special State School Fund grant, consisting of a general purpose
grant that is equal to the Juvenile Detention Education Program
ADM multiplied by 1.5 multiplied by Funding Percentage and
further multiplied by Statewide Target per ADMw Grant.
  (4) Funds allocated to the Youth Corrections Education Program
and the Juvenile Detention Education Program from the State
School Fund shall remain with the Department of Education and
shall be adjusted in the year following the distribution to
reflect the actual ADMw of students in the Youth Corrections
Education Program and the Juvenile Detention Education Program in
the same manner as for the school districts under ORS 327.101.
  SECTION 9. ORS 327.061 is amended to read:
  327.061. (1) Numbers of students in average daily membership
used in the distribution formula as specified in ORS 327.013
 { - (7) - }  { +  (1)(c) + }, shall be projections of the
average daily membership in the district for the school year
ending on June 30 of the distribution year. The Department of
Education shall verify all projections used for purposes of the
distribution formula.
  (2) The department shall use information from the Department of
Revenue under ORS 311.175 as the basis for determining projected
district property taxes. The department shall request relevant
information from the school districts to enable the department to
estimate the amount each school district shall receive from the
State School Fund. The department shall provide this estimate no
later than the first Monday in March of each year for the
distribution for the following fiscal year.
  (3) A school district may appeal to the department any
projection verified by the department under subsection (1) of
this section. The department shall rule on the appeal in a timely
manner and if necessary issue a revised estimate of the amount
each school district shall receive from the State School Fund no
later than the last Friday in March.
  (4) Notwithstanding subsection (3) of this section, no school
district may appeal any projection verified under subsection (1)
of this section if the district failed to provide information
requested by the department under subsection (2) of this section.
  SECTION 10. ORS 327.095 is amended to read:
  327.095. (1) Funds due school districts under ORS 327.008 and
327.013 shall be paid approximately 16-2/3 percent on July 15,
approximately eight and one-third percent on the 15th day of each
of the months of August, September, October, November, December,
January, February, March and April and the balance on May 15. An
equitable apportionment based on the most recent data available
shall be made on the installment dates prior to May 15. If such
payments are too high or too low, appropriate adjustments shall
be made in the May 15 payments. However, if the reports required
by ORS 327.133 have not been received from any district when due,
no further apportionments shall be made to such district until
such reports are filed.
  (2) If the combined estimated level of ADMw under ORS 327.013
  { - (7) - }   { + (1)(c) + } of all school districts is less
than the statewide projected level of ADMw, the Department of
Education may:
  (a) Adjust the distributions to school districts on the
installment dates to reflect the difference; and
  (b) Set aside an amount of the funds appropriated to the State
School Fund for the fiscal year until the May 15 distribution.
  SECTION 11. 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 - }   { + section 2 of this 2009 Act + }
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
shall be used by 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) - }   { + (1)(a) + }
to distribute as nearly as practicable the total sum available
for distribution.
  SECTION 12. ORS 327.101 is amended to read:
  327.101. (1) Each fiscal year, the distribution to a school
district under ORS 327.008 and 327.013 shall be adjusted to fully
reflect the difference between the apportionment due to the
district for the prior fiscal year under ORS 327.008 and 327.013,
and the amounts actually distributed to the district in the prior
fiscal year under ORS 327.008, 327.013 and 327.099. The
adjustment shall be made to the May 15 apportionment to the
district.
  (2) No consideration shall be made in the adjustment made under
subsection (1) of this section for any penalties, forfeitures or
additional receipts of State School Fund moneys, except when
expressly directed by law.
  (3) An amount of funds equal to the sum of all negative
adjustments made to the May 15 apportionment under subsection (1)
of this section shall be used by the Department of Education for
purposes of funding positive adjustments required under
subsection (1) of this section in the same fiscal year.
  (4) If the amounts available under subsection (3) of this
section are either not sufficient or exceed the adjustments to
districts required under subsection (1) of this section, the
Superintendent of Public Instruction shall recalculate the
funding percentage in ORS 327.013   { - (2) - }   { + (1)(a) + }
to distribute as nearly as practicable the total sum available
for distribution.
  SECTION 13. 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) - }
 { +  (1)(c) + }.
  (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) Twenty percent of the combined total for the school
district of the general purpose grant, the transportation grant,
the facility grant and the high cost disabilities grant of the
school district for the current fiscal year; or
  (B) $1,000 multiplied by the extended ADMw of the school
district for the current fiscal year. The amount multiplied by
the extended ADMw of the school district shall be increased each
fiscal year by three percent above the amount allowed for the
prior 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 14. ORS 338.157 is amended to read:
  338.157. For purposes of calculating the weighted average daily
membership (ADMw) of a public charter school, it shall be assumed
that the public charter school has the same percentage of
children in poverty families, as calculated under ORS 327.013
  { - (7)(a)(E)(i) - }  { +  (1)(c)(A)(v)(I) + }, as the school
district in which the public charter school is located. Based on
this percentage, an additional amount shall be added to the
average daily membership (ADM) of the public charter school.
  SECTION 15. ORS 338.165 is amended to read:
  338.165. (1) Notwithstanding ORS 338.155 (1), for purposes of
this section, the 'resident school district' of a student who is
eligible for special education and related services shall be the
school district in which the student's parent or guardian or
person in parental relationship to the student resides pursuant
to ORS 339.133 and 339.134.
  (2) For students who attend public charter schools and are
eligible for special education and related services:
  (a) The resident school district of the student shall be
responsible for providing any required special education and
related services to the student; and
  (b) Amounts from the State School Fund for those students shall
be distributed through the resident school district pursuant to
this section.
  (3) Notwithstanding ORS 338.155 (2), a resident school district
of a student who is eligible for special education and related
services shall contractually establish, with any public charter
school in which the student is enrolled, payment for provision of
special education and related services to the student. If a
student is enrolled in a public charter school and is eligible
for special education and related services an additional amount
shall be added to the ADM of the public charter school as
described in ORS 327.013   { - (7)(a)(A) - }  { +
(1)(c)(A)(i) + }. The payment per ADMw in the public charter
school that is attributable to the student who is eligible for
special education and related services shall equal an amount that
is at least equal to:
  (a) 40 percent of the amount of the school district's General
Purpose Grant per ADMw as calculated under ORS 327.013 for
students who are enrolled in kindergarten through grade eight;
and
  (b) 47.5 percent of the amount of the school district's General
Purpose Grant per ADMw as calculated under ORS 327.013 for
students who are enrolled in grades 9 through 12.
  (4) If the resident school district is not the sponsor of a
public charter school, the resident school district for each ADMw
that is attributable to a student enrolled in a public charter
school who is eligible for special education and related services
shall transfer five percent of the amount of the school
district's General Purpose Grant per ADMw as calculated under ORS
327.013 to the sponsor of the public charter school.
  (5) Notwithstanding subsection (3) of this section, a school
district and a public charter school may negotiate on a
case-by-case basis for an alternative distribution of funds other
than the distribution prescribed by subsection (3) of this
section.
  SECTION 16. ORS 340.065 is amended to read:
  340.065. (1) A resident school district may provide
transportation services to eligible students who attend eligible
post-secondary institutions within any education service district
boundaries of which the school district is a component school
district.
  (2) Any transportation costs incurred by a school district
under this section shall be considered approved transportation
costs for purposes of ORS 327.013   { - (9) - }  { +  (3) + }.
  SECTION 17.  { + Section 2 of this 2009 Act and the amendments
to ORS 327.008, 327.013, 327.019, 327.026, 327.061, 327.095,
327.099, 327.101, 327.336, 338.157, 338.165 and 340.065 by
sections 3 to 16 of this 2009 Act apply to State School Fund
distributions occurring in fiscal years beginning on or after
July 1, 2009. + }
  SECTION 18.  { + Notwithstanding ORS 327.095 (1), the
Department of Education shall adjust the distributions to school
districts made during the fiscal year beginning July 1, 2009, to
distribute any additional funds that may be available as the
result of the enactment of section 2 of this 2009 Act and the
amendments to ORS 327.008, 327.013, 327.019, 327.026, 327.061,
327.095, 327.099, 327.101, 327.336, 338.157, 338.165 and 340.065
by sections 3 to 16 of this 2009 Act. + }
  SECTION 19.  { + ORS 310.239 and section 1, chapter 4, Oregon
Laws 2006, are repealed. + }
  SECTION 20.  { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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