Bill Text: OR SB227 | 2013 | Regular Session | Engrossed

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Bill Title: Relating to education service districts; declaring an emergency.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB227 Detail]

Download: Oregon-2013-SB227-Engrossed.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 988

                           A-Engrossed

                         Senate Bill 227
                 Ordered by the Senate March 27
           Including Senate Amendments dated March 27

Sponsored by Senator HASS; Representative READ (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.

    { - Establishes Task Force on Education Service
Districts. - }
    { - Sunsets task force on date of convening of 2015 regular
session of Legislative Assembly. - }
    { - Declares emergency, effective on passage. - }
   { +  Abolishes Office of Regional Educational Services and
abolishes Regional Educational Services Account.
  Modifies percentage of State School Fund moneys that is
distributed to education service districts through general
services grants.
  Modifies percentage of amounts received from State School Fund
and local revenues that education service district must expend on
services or programs that have been approved as local service
plan.
  Modifies percentage of School Improvement Fund moneys that is
distributed to education service districts.
  Declares emergency, effective July 1, 2013. + }

                        A BILL FOR AN ACT
Relating to education service districts; creating new provisions;
  amending ORS 294.383, 327.008, 327.019, 327.294, 329.488 and
  334.177; repealing ORS 327.009, 334.800 and 334.820; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + The Office of Regional Educational Services is
abolished. + }
  SECTION 2.  { + (1) The Regional Educational Services Account
is abolished.
  (2) Any moneys remaining in the Regional Educational Services
Account on the effective date of this 2013 Act that are
unexpended, unobligated and not subject to any conditions shall
revert to the General Fund. + }
  SECTION 3.  { + ORS 327.009, 334.800 and 334.820 are
repealed. + }
  SECTION 4. ORS 294.383 is amended to read:
  294.383. (1) As used in this section, 'extended ADMw ' means:

  (a) For a school district, the district extended ADMw as
calculated under ORS 327.013.
  (b) For an education service district, the sum of the extended
ADMw of the school districts located within the territory of the
education service district.
  (2) Notwithstanding ORS 294.333, a school district or education
service district that uses the accrual basis method of accounting
may include as accrued revenues in the budget and financial
statement of the school district or education service district,
for any fiscal year, an amount from the next fiscal year that is
to be received in the next fiscal year. The amount accrued under
this section may not be greater than the amount calculated under
subsection (3)(b) or (c) of this section multiplied by the
extended ADMw of the school district or education service
district.
  (3)(a) For each fiscal year, the Department of Education shall
calculate the amount available in the State School Fund for
grants and distributions to school districts and the amount
available for grants and distributions to education service
districts under ORS 327.008, 327.013 and 327.019 based on the
appropriations and allocations made to the State School Fund for
that fiscal year by the Legislative Assembly in regular session.
The department may not include in the amount calculated to be
available for school districts and education service districts
under this paragraph the amounts received by the Youth
Corrections Education Program and the Juvenile Detention
Education Program under ORS 327.026 from the State School Fund
 { - or amounts transferred to the Regional Educational Services
Account as provided by ORS 327.009 - } .
  (b) The department shall calculate for school districts an
amount equal to (the amount calculated under paragraph (a) of
this subsection for school districts : 12) : the total statewide
extended ADMw of all school districts.
  (c) The department shall calculate for education service
districts an amount equal to (the amount calculated under
paragraph (a) of this subsection for education service
districts : 12) : the total statewide extended ADMw of all
education service districts.
  (d) The department may adjust the calculations under this
subsection based on current data for the factors used to
calculate the State School Fund distribution to school districts
and education service districts under ORS 327.008, 327.013 and
327.019.
  (e) Notwithstanding paragraph (d) of this subsection, the
department may not adjust the calculation under paragraph (a) of
this subsection based on changes made to the appropriations or
allocations to the State School Fund by the Legislative Assembly
in special session or by rule of the Oregon Department of
Administrative Services relating to allotting funds.
  (4) Notwithstanding ORS 294.333, a community college district
or community college service district that uses the accrual basis
method of accounting may include as accrued revenues in the
budget and financial statement of the community college district
or community college service district, for any fiscal year, an
amount from the next fiscal year that is to be received in the
next fiscal year. The amount accrued under this section may not
be greater than 25 percent of the amount the community college
district or community college service district received as a
Community College Support Fund grant for the fiscal year for
which the revenues are to be accrued.
  SECTION 5. ORS 327.008, as amended by section 3, chapter 91,
Oregon Laws 2012, 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 327.011
and 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) There shall be apportioned from the State School Fund
the amount to be transferred to the Regional Educational Services
Account as calculated under ORS 327.009. - }
    { - (5) - }   { + (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.
    { - (6) - }   { + (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.
    { - (7) - }   { + (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.
    { - (8) - }   { + (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.
    { - (9) - }   { + (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.
    { - (10) - }   { + (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.
    { - (11) - }   { + (10) + } 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) - }   { + (11) + } 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 school districts located within the
territory 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   { - and the
Office of Regional Educational Services - }  + total amount of
local revenues of all school districts, computed as provided in
ORS 327.011, + total amount of local revenues of all education
service districts. The superintendent may not include in the
calculation under this paragraph amounts received 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   { - 95.5 - }  ___
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)(a) 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 school districts located within the territory of
the education service district X (  { - 4.5 - }  ___
: { - 95.5 - }  { +   ___ + } ); or
  (B) $1 million if the education service district received a
general services grant of $1 million for the 2010-2011 school
year.
  (b) Notwithstanding paragraph (a) of this subsection and only
for State School Fund distributions made for the first school
year after two or more education service districts join together,
if an education service district received a general services
grant as provided by paragraph (a)(B) of this subsection prior to
the education service district joining together with one or more
other education service districts to form a new education service
district:
  (A) The general services grant for the new education service
district shall be calculated for each component education service
district as though the component education service districts had
not joined together to form a new education service district; and
  (B) A component education service district that received $1
million as provided by paragraph (a)(B) of this subsection shall
be entitled to receive $1 million under the calculation provided
by this paragraph.
  (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 school
districts located within the territory of the education service
district any amount of local revenues of the education service
district that is greater than the general services grant. The
amount that each school district receives under this subsection
shall be prorated based on the district extended ADMw of the
school district as calculated under ORS 327.013.
  (9)(a) An education service district shall distribute to a
school district that is located within the territory of the
education service district but that has withdrawn from the
education service district as provided in ORS 334.015 the amounts
received by the education service district as a general services
grant and from the School Improvement Fund.
  (b) The amounts that a school district receives under this
subsection:
  (A) Shall be prorated based on the district extended ADMw of
the school district as calculated under ORS 327.013;
  (B) Shall equal   { - 90 - }  ___ percent of the school
district's prorated share, as calculated under subparagraph (A)
of this paragraph; and
  (C) May be used to pay for any expenses incurred in providing
services described in ORS 334.175 (2) to the students of the
school district by:
  (i) The school district;
  (ii) The education service district from which the school
district withdrew;
  (iii) An education service district that is not the education
service district from which the school district withdrew; or
  (iv) Any other public entity with which the school district has
entered into a contract to provide the services.
  SECTION 7.  { + The amendments to ORS 294.383, 327.008 and
327.019 by sections 4 to 6 of this 2013 Act and the repeal of ORS
327.009 by section 3 of this 2013 Act apply to State School Fund
distributions commencing with the 2013-2014 distributions. + }
  SECTION 8. ORS 334.177 is amended to read:
  334.177. (1) As used in this section, 'local revenues of an
education service district' has the meaning given that term in
ORS 327.019 but does not include any local revenues distributed
under ORS 327.019 (8).
  (2) An education service district board shall expend at least
  { - 90 - }  ___ percent of all amounts received from the State
School Fund and at least   { - 90 - }  ___ percent of all amounts
considered to be local revenues of an education service district
on services or programs that have been approved by the component
school districts of the education service district through the
resolution process described in ORS 334.175.
  (3) An education service district board shall expend 100
percent of all amounts received from the School Improvement Fund
on services or programs that have been approved by the component
school districts of the education service district through the
resolution process described in ORS 334.175.
  (4) The expenditure requirements of this section apply only to
amounts retained by the education service district after making
any distributions required under ORS 327.019 (9).
  SECTION 9.  { + The amendments to ORS 334.177 by section 8 of
this 2013 Act apply to expenditures made on or after July 1,
2013. + }
  SECTION 10. ORS 327.294 is amended to read:
  327.294. (1) There is established the School Improvement Fund,
separate and distinct from the General Fund. Interest earned by
the School Improvement Fund shall be credited to the fund.
  (2) The moneys in the fund are continuously appropriated to the
Department of Education for purposes of the grant program created
by ORS 327.297.
  (3) Each fiscal year, the department shall distribute:
  (a)   { - 95.25 - }  ___ percent of the moneys in the fund as
grants to school districts, the Youth Corrections Education
Program and the Juvenile Detention Education Program; and
  (b)   { - 4.75 - }  ___ percent of the moneys in the fund as
grants to education service districts.
  SECTION 11.  { + The amendments to ORS 327.294 by section 10 of
this 2013 Act apply to School Improvement Fund distributions
commencing with the 2013-2014 distributions. + }
  SECTION 12. ORS 329.488 is amended to read:
  329.488. (1) The Department of Education shall contract with a
nonprofit entity to administer a nationally normed assessment, in
collaboration with the department, to all students in grade 10
who are enrolled in a public school. The purpose of the
assessment is to predict the success of students on, and provide
practice for students taking, college entrance exams.
  (2) The department shall base the selection of the contractor
under subsection (1) of this section on all of the following
criteria:
  (a) The contractor must be able to provide to the department
statewide data containing the results of the assessment;
  (b) The contractor shall provide an assessment that:
  (A) Identifies students with high potential to excel in
advanced placement (AP) or other honors courses based on a
research-based correlation of scores on the grade 10 assessment
to advanced placement examinations;
  (B) Examines students in mathematics, reading and writing; and
  (C) Provides results that can be used by Oregon's higher
education institutions to recruit students to attend college;
  (c) The contractor must be able to supply schools with an
item-by-item analysis of student performance on the assessment;
and
  (d) The contractor must be able to make available to each
student taking the assessment a free career assessment and online
exploration of colleges and career opportunities.
  (3)(a) In lieu of using the contractor selected by the
department under subsection (1) of this section, a school
district may apply to the department for a waiver to allow the
district to enter into a contract with a different nonprofit
entity for the purpose of administering a nationally normed
assessment to all students in grade 10 who are enrolled in the
public schools operated by the district. The department shall
grant the waiver if:
  (A) The district had entered into a contract with the entity
for the 2007-2008 school year to administer a grade 10
assessment;
  (B) The entity, in coordination with the district, administered
a grade 10 assessment during the 2007-2008 school year;
  (C) For the most recent school year in which the entity
administered a grade 10 assessment, the entity met the criteria
set forth in subsection (2) of this section as in effect for the
school year in which the entity administered the assessment; and

  (D) The entity plans to meet the criteria set forth in
subsection (2) of this section as in effect for the school year
for which the school district seeks a waiver.
  (b) A waiver granted by the department under this subsection:
  (A) Is valid for one school year; and
  (B) May be renewed each school year.
  (c) The department shall reimburse a school district for the
cost of assessments allowed under this subsection from funds
available to the department under ORS 327.008   { - (10) - }
 { +  (9) + }.
  (4) Notwithstanding subsections (1) and (3) of this section:
  (a) The department may, under rules adopted by the State Board
of Education, waive the assessment for specific groups of
students; and
  (b) Upon request from a student who is enrolled in a public
school operated by a school district or the parent or guardian of
the student, the school district shall waive the assessment for
the student.
  SECTION 13.  { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect
July 1, 2013. + }
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