73rd OREGON LEGISLATIVE ASSEMBLY--2006 Special Session
Enrolled
Senate Bill 1106
Sponsored by JOINT SPECIAL SESSION COMMITTEE
CHAPTER ................
AN ACT
Relating to school finance; creating new provisions; amending ORS
327.013; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + ORS 310.239 does not apply to tax years
beginning on or after July 1, 2006, and before July 1, 2009. ORS
310.239 applies to tax years beginning on or after July 1,
2009. + }
SECTION 2. ORS 327.013 is amended to read:
327.013. The State School Fund distributions for school
districts shall be computed as follows:
(1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
(2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
(3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
(4) Statewide Target per ADMw Grant = $4,500.
(5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}. ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
(6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
(7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
(A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
may not be included in the calculation of the 11 percent.
(B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a second language program under
ORS 336.079.
(C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 1
(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) 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) 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
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 2
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 { - , - } { + :
(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) - } { + (A) + } The amount of revenue actually
received by the district from local option taxes imposed pursuant
to ORS 280.040 to 280.145;
{ - (b) - } { + (B) + } Fifteen percent of the combined
total for the school district of the general purpose grant, the
transportation grant, the facility grant and the high cost
disabilities grant of the district; or
{ - (c) - } { + (C) + } $750 per district extended
ADMw { + ; and
(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 + }.
(12)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
(c) As used in this subsection:
(A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 3
(B) 'Construction costs' does not include costs for land
acquisition.
{ + (13) Notwithstanding subsection (10)(i) of this section,
Local Revenues do not include any amount of operating property
tax authority of the district that is:
(a) Attributable to the suspension of ORS 310.239 by section 1
of this 2006 Act; and
(b) Not actually imposed by the district. + }
SECTION 3. { + The amendments to ORS 327.013 by section 2 of
this 2006 Act apply to State School Fund distributions occurring
in fiscal years beginning on or after July 1, 2006. + }
SECTION 4. ORS 327.013, as amended by section 2 of this 2006
Act, is amended to read:
327.013. The State School Fund distributions for school
districts shall be computed as follows:
(1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
(2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
(3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
(4) Statewide Target per ADMw Grant = $4,500.
(5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}. ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
(6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
(7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
(A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
may not be included in the calculation of the 11 percent.
(B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a second language program under
ORS 336.079.
(C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
(D) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade 6
or kindergarten through grade 8 or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade 8.
(E) 0.25 times the sum of the following:
(i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education
based on the most recent federal decennial census, as adjusted by
the school district's proportion of students in the county
receiving free or reduced price lunches under the United States
Department of Agriculture's current Income Eligibility Guidelines
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 4
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) 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) 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;
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 5
(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 { - : - } { + , + }
{ - (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) - } { + (a) + } The amount of revenue actually
received by the district from local option taxes imposed pursuant
to ORS 280.040 to 280.145;
{ - (B) - } { + (b) + } Fifteen percent of the combined
total for the school district of the general purpose grant, the
transportation grant, the facility grant and the high cost
disabilities grant of the district; or
{ - (C) - } { + (c) + } $750 per district extended
ADMw { + . + } { - ; and - }
{ - (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. - }
(12)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
(c) As used in this subsection:
(A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
(B) 'Construction costs' does not include costs for land
acquisition.
{ - (13) Notwithstanding subsection (10)(i) of this section,
Local Revenues do not include any amount of operating property
tax authority of the district that is: - }
{ - (a) Attributable to the suspension of ORS 310.239 by
section 1 of this 2006 Act; and - }
{ - (b) Not actually imposed by the district. - }
SECTION 5. { + The amendments to ORS 327.013 by section 4 of
this 2006 Act apply to State School Fund distributions occurring
in fiscal years beginning on or after July 1, 2009. + }
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 6
SECTION 6. { + This 2006 Act takes effect on the 91st day
after the date on which the special session of the Seventy-third
Legislative Assembly adjourns sine die. + }
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Passed by Senate April 20, 2006
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House April 20, 2006
...........................................................
Speaker of House
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 7
Received by Governor:
......M.,............., 2006
Approved:
......M.,............., 2006
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2006
...........................................................
Secretary of State
Enrolled Senate Bill 1106 (SB 1106-INTRO) Page 8