Bill Text: OR HB2424 | 2013 | Regular Session | Introduced

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Bill Title: Relating to local revenues for purposes of state school funding; prescribing an effective date.

Sponsorship: Partisan Bill (Democrat 5)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2424 Detail]

Download: Oregon-2013-HB2424-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 2084-1

                         House Bill 2424

Sponsored by Representative GELSER; Representatives BUCKLEY,
  DOHERTY, GARRETT, KENY-GUYER (Presession filed.)

                             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.

  Changes exclusion from local revenues for purposes of State
School Fund distributions and local option equalization grants.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to local revenues for purposes of state school funding;
  creating new provisions; amending ORS 327.011 and 327.336; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 327.011 is amended to read:
  327.011. 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 2.  { + The amendments to ORS 327.011 by section 1 of
this 2013 Act apply to State School Fund distributions commencing
with the 2013-2014 distribution. + }
  SECTION 3. ORS 327.011, as amended by section 1 of this 2013
Act, is amended to read:
  327.011. 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 the amount of revenue
actually received by the district { + :
  (a) + } From local option taxes imposed pursuant to ORS 280.040
to 280.145  { - . - }  { + ; or
  (b) Due to an increase in the district's permanent rate
pursuant to Article XI, section 11m, of the Oregon
Constitution. + }
  SECTION 4.  { + (1) The amendments to ORS 327.011 by section 3
of this 2013 Act do not become effective unless the amendment to
the Oregon Constitution proposed by House Joint Resolution 7
(2013) is approved by the people at the regular general election
held in November 2014. The amendments to ORS 327.011 by section 3
of this 2013 Act become effective on the effective date of that
amendment.
  (2) If the amendment to the Oregon Constitution proposed
by House Joint Resolution 7 (2013) is approved by the people, the
amendments to ORS 327.011 by section 3 of this 2013 Act apply to
State School Fund distributions commencing with the 2015-2016
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 (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) - }   { + (4) + } 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) - }   { + (5) + } 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.  { + The amendments to ORS 327.336 by section 5 of
this 2013 Act apply to local option equalization grants received
by a school district on or after July 1, 2014. + }
  SECTION 7.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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