Chapter 327 — State Financing of Elementary and Secondary Education

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2001 EDITION

STATE SCHOOL FUND

327.005 [Repealed by 1957 c.612 §1 (327.006 enacted in lieu of 327.005)]

327.006 Definitions for ORS 327.006 to 327.133 and 327.731. As used in ORS 327.006 to 327.133 and 327.731:

(1) "Aggregate days membership" means the sum of days present and absent, according to the rules of the State Board of Education, of all resident pupils when school is actually in session during a certain period. The aggregate days membership of kindergarten pupils shall be calculated on the basis of a half-day program.

(2)(a) "Approved transportation costs" means those costs as defined by rule of the State Board of Education and is limited to those costs attributable to transporting or room and board provided in lieu of transporting:

(A) Elementary school students who live at least one mile from school;

(B) Secondary school students who live at least 1.5 miles from school;

(C) Any student required to be transported for health or safety reasons, according to supplemental plans from districts that have been approved by the state board identifying students who are required to be transported for health or safety reasons, including special education;

(D) Preschool children with disabilities requiring transportation for early intervention services provided pursuant to ORS 343.224 and 343.533;

(E) Students who require payment of room and board in lieu of transportation;

(F) A student transported from one school or facility to another school or facility when the student attends both schools or facilities during the day or week; and

(G) Students participating in school-sponsored field trips that are extensions of classroom learning experiences.

(b) "Approved transportation costs" does not include the cost of constructing boarding school facilities.

(3) "Average daily membership" or "ADM" means the aggregate days membership of a school during a certain period divided by the number of days the school was actually in session during the same period. However, if a district school board adopts a class schedule that operates throughout the year for all or any schools in the district, average daily membership shall be computed by the Department of Education so that the resulting average daily membership will not be higher or lower than if the board had not adopted such schedule.

(4) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers of the Portland, Oregon, Standard Metropolitan Statistical Area, as compiled by the United States Department of Labor, Bureau of Labor Statistics.

(5) "Kindergarten" means a kindergarten program that conforms to the standards and rules adopted by the State Board of Education.

(6) "Net operating expenditures" means the sum of expenditures of a school district in kindergarten through grade 12 for administration, instruction, attendance and health services, operation of plant, maintenance of plant, fixed charges and tuition for resident students attending in another district, as determined in accordance with the rules of the State Board of Education, but net operating expenditures does not include transportation, food service, student body activities, community services, capital outlay, debt service or expenses incurred for nonresident students.

(7)(a) "Resident pupil" means any pupil:

(A) Whose legal school residence is within the boundaries of a school district reporting the pupil, if the district is legally responsible for the education of the pupil, except that "resident pupil" does not include a pupil who pays tuition or for whom the parent pays tuition or for whom the district does not pay tuition for placement outside the district; or

(B) Whose legal residence is not within the boundaries of the district reporting the pupil but attends school in the district with the written consent of the affected school district boards.

(b) A pupil shall not be considered to be a resident pupil under paragraph (a)(A) of this subsection if the pupil is attending school in another school district pursuant to a contract under ORS 339.125 and in the prior year was considered to be a resident pupil in another school district under paragraph (a)(B) of this subsection. The pupil shall continue to be considered a resident of another school district under paragraph (a)(B) of this subsection.

(c) A pupil shall not be considered to be a resident pupil under paragraph (a)(B) of this subsection if the pupil is attending school in a school district pursuant to an agreement with another school district under ORS 339.133 and in the prior year was considered to be a resident pupil under paragraph (a)(A) of this subsection because the pupil was attending school in another school district pursuant to a contract under ORS 339.125. The pupil shall continue to be considered a resident pupil under paragraph (a)(A) of this subsection.

(d) "Resident pupil" includes a pupil admitted to a school district under ORS 339.115 (7).

(8) "Standard school" means a school meeting the standards set by the rules of the State Board of Education.

(9) "Tax" and "taxes" includes all taxes on property, excluding exempt bonded indebtedness, as those terms are defined in ORS 310.140. [1957 c.612 §2 (enacted in lieu of 327.005); 1957 c.708 §4; 1959 c.388 §1; 1963 c.142 §1; 1965 c.100 §14; 1971 c.395 §2; 1973 c.750 §16; 1973 c.827 §26; 1977 c.840 §1; 1979 c.259 §1; 1981 c.804 §95; 1989 c.215 §2; 1989 c.342 §1; 1991 c.693 §35; 1991 c.780 §2; 1995 c.660 §47; 1997 c.821 §11; 1999 c.961 §5; 1999 c.989 §30]

327.008 State School Fund; State School Fund grants. (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 appropriated from the Education Endowment Fund. The State School Fund is continuously appropriated for the purposes of ORS 327.006 to 327.081, 327.095, 327.099, 327.101, 327.125, 327.137, 334.380, 336.575, 336.580, 336.635, 342.173, 343.243, 343.533, 343.961 and 461.543.

(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 minus local revenue, computed as provided in ORS 327.013.

(3) There shall be apportioned from the State School Fund to each education service district a State School Fund grant as calculated under sections 2 to 7, chapter 695, Oregon Laws 2001.

(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 shall not exceed $17.5 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. [1991 c.780 §3; 1993 c.61 §4; 1997 c.524 §3; 1997 c.821 §13; 1999 c.1066 §10; 2001 c.695 §12]

Note: The amendments to 327.008 by section 13, chapter 695, Oregon Laws 2001, become operative July 1, 2005. See section 14, chapter 695, Oregon Laws 2001. The text that is operative on and after July 1, 2005, is set forth for the user’s convenience.

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 appropriated from the Education Endowment Fund. The State School Fund is continuously appropriated for the purposes of ORS 327.006 to 327.081, 327.095, 327.099, 327.101, 327.125, 327.137, 336.575, 336.580, 336.635, 342.173, 343.243, 343.533, 343.961 and 461.543.

(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.

Note: Sections 11 to 17, chapter 890, Oregon Laws 2001, provide:

Sec. 11. Amounts from State School Fund set aside for distribution to school districts and programs. (1) For the 2001-2002 fiscal year, the Department of Education shall set aside $2,329,700,000 from the State School Fund for distribution as grants to school districts and programs and for recovery by the Department of Education for special education programs under ORS 343.243.

(2) For the 2002-2003 fiscal year, the Department of Education shall set aside $2,439,744,142 from the State School Fund for distribution as grants to school districts and programs and for recovery by the Department of Education for special education programs under ORS 343.243. [2001 c.890 §11]

Sec. 12. Amounts from State School Fund set aside for distribution to education service districts. (1) For the 2001-2002 fiscal year, the Department of Education shall set aside $94,400,000 from the State School Fund for distribution as grants to education service districts.

(2) For the 2002-2003 fiscal year, the Department of Education shall set aside $97,800,000 from the State School Fund for distribution as grants to education service districts. [2001 c.890 §12]

Sec. 13. Distribution amounts may be reduced if insufficient funds available. Notwithstanding sections 11 and 12 of this 2001 Act, if the Department of Education determines that insufficient funds will be available in the State School Fund from the appropriations and allocations under sections 1 to 10 of this 2001 Act during the 2001-2002 or 2002-2003 fiscal year to meet the requirements of sections 11 and 12 of this 2001 Act, the department may prorate, based on the annual share of the total amount of funds in the State School Fund, the amounts under sections 11 and 12 of this 2001 Act available for distribution as grants to school districts and education service districts and available for recovery by the department for special education programs under ORS 343.243. [2001 c.890 §13]

Sec. 14. Distributions to school districts and programs from State School Fund and local revenues limited for fiscal year beginning July 1, 2001. (1) Notwithstanding ORS 327.008 and sections 1 to 13 of this 2001 Act, the Department of Education shall ensure that the total amount distributed from the State School Fund in grants to school districts and programs and recovered by the department for special education programs under ORS 343.243, when combined with the total amount of local revenues as described in ORS 327.013, as jointly determined by the Legislative Revenue Officer and the Department of Education, does not exceed $3,326,750,000 for the fiscal year beginning July 1, 2001.

(2) The distribution limitation established in subsection (1) of this section shall be adjusted for any actions taken by the Emergency Board.

(3) Notwithstanding ORS 327.008 and sections 1 to 13 of this 2001 Act, any amount that was appropriated or allocated to the State School Fund for the fiscal year beginning July 1, 2001, when combined with the total amount of local revenues, as jointly determined by the Legislative Revenue Officer and the Department of Education, that exceeds $3,326,750,000, shall remain available for distribution to school districts and programs in the fiscal year beginning July 1, 2002, if the amount that was appropriated or allocated to the State School Fund for the fiscal year beginning July 1, 2002, that is to be distributed from the State School Fund in grants to school districts and programs and recovered by the department for special education programs, when combined with the total amount of local revenues, as jointly determined by the Legislative Revenue Officer and the Department of Education, is less than $3,468,044,142. [2001 c.890 §14]

Sec. 15. Distributions to school districts and programs from State School Fund and local revenues limited for fiscal year beginning July 1, 2002. (1) Notwithstanding ORS 327.008 and sections 1 to 13 of this 2001 Act, the Department of Education shall ensure that the total amount distributed from the State School Fund in grants to school districts and programs and recovered by the department for special education programs under ORS 343.243, when combined with the total amount of local revenues as described in ORS 327.013, as jointly determined by the Legislative Revenue Officer and the Department of Education, does not exceed $3,488,610,142 for the fiscal year beginning July 1, 2002.

(2) The distribution limitation established in subsection (1) of this section shall be adjusted for any actions taken by the Emergency Board. [2001 c.890 §15]

Sec. 16. Distributions to education service districts from State School Fund and local revenues limited for fiscal year beginning July 1, 2001. (1) Notwithstanding ORS 327.008 and sections 1 to 13 of this 2001 Act, the Department of Education shall ensure that the total amount distributed from the State School Fund in grants to education service districts, when combined with the total amount of local revenues as defined in section 2, chapter 695, Oregon Laws 2001, as jointly determined by the Legislative Revenue Officer and the Department of Education, does not exceed $158,762,000 for the fiscal year beginning July 1, 2001.

(2) The distribution limitation established in subsection (1) of this section does not include local revenues transferred from the education service districts in Grant and Wallowa Counties to school districts pursuant to ORS 327.081.

(3) The distribution limitation established in subsection (1) of this section shall be adjusted for any actions taken by the Emergency Board.

(4) Notwithstanding ORS 327.008 and sections 1 to 13 of this 2001 Act, any amount that was appropriated or allocated to the State School Fund for the fiscal year beginning July 1, 2001, when combined with the total amount of local revenues, as jointly determined by the Legislative Revenue Officer and the Department of Education, that exceeds $158,762,000, shall remain available for distribution to education service districts in the fiscal year beginning July 1, 2002, if the amount that was appropriated or allocated to the State School Fund for the fiscal year beginning July 1, 2002, that is to be distributed from the State School Fund in grants to education service districts, when combined with the total amount of local revenues, as jointly determined by the Legislative Revenue Officer and the Department of Education, is less than $164,600,000. [2001 c.890 §16]

Sec. 17. Distributions to education service districts from State School Fund and local revenues limited for fiscal year beginning July 1, 2002. (1) Notwithstanding ORS 327.008 and sections 1 to 13 of this 2001 Act, the Department of Education shall ensure that the total amount distributed from the State School Fund in grants to education service districts, when combined with the total amount of local revenues as defined in section 2, chapter 695, Oregon Laws 2001, as jointly determined by the Legislative Revenue Officer and the Department of Education, does not exceed $165,936,000 for the fiscal year beginning July 1, 2002.

(3) The distribution limitation established in subsection (1) of this section shall be adjusted for any actions taken by the Emergency Board. [2001 c.890 §17]

327.010 [Amended by 1957 c.626 §2; 1963 c.570 §1; 1965 c.100 §15; 1979 c.277 §2; repealed by 1991 c.780 §30]

327.012 [Repealed by 1957 c.626 §1]

327.013 State School Fund distribution computations for school districts. The State School Fund distributions for school districts shall be computed as follows:

(1) General Purpose Grant = Funding Percentage ´ Target Grant ´ 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 ´ {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 shall 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 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)(i) An additional amount as determined by ORS 327.077 (1997 Edition) shall be added to the ADMw for each remote small school in the district.

(ii) An additional amount as determined by section 23, chapter 1066, Oregon Laws 1999, for each small high school in the district that is equal to the small high school additional weighting amount.

(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) Transportation Grant = 70 percent of Approved Transportation Costs.

(9) 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;

(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) The amount of revenue received under ORS 334.400 by a school district in an education service district that provides equalization under ORS 334.400;

(h) Moneys received in lieu of property taxes;

(i) Federal funds received without specific application by the school district and which are not deemed under federal law to be nonsupplantable; and

(j) 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.

(10) Notwithstanding subsection (9) of this section, Local Revenues do not include:

(a) The amount of revenue actually received by the district, including penalties and interest on taxes, that is used for payment of bonds issued to finance or refinance an unfunded obligation for prior service costs under a contract of integration pursuant to ORS 238.685 (2)(a); and

(b) 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) Ten percent of the combined total for the school district of the general purpose grant, the transportation grant and the facility grant of the district; or

(11)(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.

(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. [1991 c.780 §4; 1993 c.61 §5; 1993 c.690 §3; 1995 c.649 §4; 1996 c.19 §2; 1997 c.541 §§367,368,368a; 1997 c.804 §§1,2; 1999 c.186 §11; 1999 c.989 §31; 1999 c.1066 §§25,26; 1999 c.1094 §5; 2001 c.670 §10; 2001 c.695 §15]

Note 1: The amendments to 327.013 by section 17, chapter 695, Oregon Laws 2001, become operative July 1, 2003. See section 19, chapter 695, Oregon Laws 2001. The text that is operative from July 1, 2003, until July 1, 2005, is set forth for the user’s convenience.

327.013. The State School Fund distributions for school districts shall be computed as follows:

(1) General Purpose Grant = Funding Percentage ´ Target Grant ´ 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.

(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:

(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.

(E) 0.25 times the sum of the following:

(F)(i) An additional amount as determined by ORS 327.077 (1997 Edition) shall be added to the ADMw for each remote small school in the district.

(ii) An additional amount as determined by section 23, chapter 1066, Oregon Laws 1999, for each small high school in the district that is equal to the small high school additional weighting amount.

(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.

(8) Transportation Grant = 70 percent of Approved Transportation Costs.

(9) 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;

(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.

(10) Notwithstanding subsection (9) of this section, Local Revenues do not include:

(b) 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) Ten percent of the combined total for the school district of the general purpose grant, the transportation grant and the facility grant of the district; or

(11)(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.

(B) "Construction costs" does not include costs for land acquisition.

Note: Section 18, chapter 695, Oregon Laws 2001, provides:

Sec. 18. The amendments to ORS 327.013 by section 17 of this 2001 Act affect State School Fund distributions commencing with the 2003-2004 distribution. [2001 c.695 §18]

Note 2. The amendments to 327.013 by section 30, chapter 1066, Oregon Laws 1999, section 12, chapter 670, Oregon Laws 2001, and sections 20 and 23, chapter 695, Oregon Laws 2001, become operative July 1, 2005. See section 31, chapter 1066, Oregon Laws 1999, section 13, chapter 670, Oregon Laws 2001, and sections 21 and 25, chapter 695, Oregon Laws 2001. The text that is operative on and after July 1, 2005, is set forth for the user’s convenience.

327.013. The State School Fund distributions for school districts shall be computed as follows:

(1) General Purpose Grant = Funding Percentage ´ Target Grant ´ 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.

(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:

(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.

(E) 0.25 times the sum of the following:

(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.

(8) Transportation Grant = 70 percent of Approved Transportation Costs.

(9) 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;

(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;

(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).

(10) Notwithstanding subsection (9) of this section, Local Revenues do not include:

(b) 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) Ten percent of the combined total for the school district of the general purpose grant, the transportation grant and the facility grant of the district; or

(11)(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.

(B) "Construction costs" does not include costs for land acquisition.

Note: Section 32, chapter 1066, Oregon Laws 1999, provides:

Sec. 32. The amendments to ORS 327.013 by section 30 of this 1999 Act affect the State School Fund distribution commencing with the 2005-2006 distribution. [1999 c.1066 §32]

Note: Sections 22 and 24, chapter 695, Oregon Laws 2001, provide:

Sec. 22. The amendments to ORS 327.013 by section 20 of this 2001 Act affect State School Fund distributions commencing with the 2005-2006 distribution. [2001 c.695 §22]

Sec. 24. The amendments to ORS 327.013 by section 23 of this 2001 Act affect State School Fund distributions commencing with the 2005-2006 distribution. [2001 c.695 §24]

Note: Sections 15 and 16, chapter 821, Oregon Laws 1997, provide:

Sec. 15. Costs of voluntary desegregation plan not included in Local Revenues. (1) Notwithstanding ORS 327.013, Local Revenues for purposes of the State School Fund grant do not include the amount of revenue actually received by the school district, including penalties and interest on taxes, that is used as payment for the costs of a voluntary desegregation plan that existed on January 1, 1997, and has received approval from the federal government.

(2) In any distribution year, the amount of revenue not included in Local Revenues under subsection (1) of this section shall not exceed by more than three percent the amount of revenue the school district used as payment for the costs of a voluntary desegregation plan in the prior distribution year.

(3) Amounts that are used as payment of transportation costs of a voluntary desegregation plan described in subsection (1) of this section shall not be considered approved transportation costs for purposes of the transportation grant described in ORS 327.013. [1997 c.821 §15]

Sec. 16. Section 15 of this Act is repealed on July 1, 2005. [1997 c.821 §16]

327.014 [1953 c.547 §1; 1957 c.626 §3; 1957 s.s. c.2 §1; 1961 c.622 §1; 1963 c.570 §1a; 1965 c.100 §16; 1965 c.528 §1; 1969 c.625 §1; repealed by 1971 c.22 §4]

327.015 [Repealed by 1957 c.612 §18]

327.017 [1993 c.61 §13; repealed by 1995 c.649 §10]

327.018 [1957 c.612 §7 (enacted in lieu of 327.085); 1959 c.388 §2; 1965 c.100 §19; renumbered 327.059]

327.019 State School Fund distribution computations for education service districts. (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;

(D) Any positive amount obtained by subtracting the operating property taxes actually imposed by the district based on the rate certified pursuant to ORS 310.060 from the amount that would have been imposed by the district if the district had certified the maximum rate of operating property taxes allowed by law.

(2) Each fiscal year, the Superintendent of Public Instruction shall calculate a State School Fund grant for each education service district as provided in this section.

(3)(a) Each fiscal year, the superintendent shall calculate the total amount appropriated or allocated to the State School Fund and available for distribution to school districts, education service districts and programs + total amount of local revenues of all school districts, computed as provided in ORS 327.013, + total amount of local revenues of all education service districts. The superintendent may not include in the calculation under this paragraph amounts transferred from the State School Fund to the Out-of-State Disabilities Placement Education Fund or 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 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 the total amount calculated under paragraph (b) of this subsection as school district general purpose grants, facility 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 and transportation grant amounts for each school district.

(4) The general services grant for an education service district shall equal the higher of:

(a) Total amount calculated under subsection (3)(d) of this section for the component school districts of the education service district ´ 5.263 percent; 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 ´ 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, the State School Fund grant of an education service district may not be less than zero.

(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. [2001 c.695 §9]

Note: 327.019 becomes operative July 1, 2005. See section 10, chapter 695, Oregon Laws 2001.

Note: Sections 2 to 8, chapter 695, Oregon Laws 2001, provide:

Sec. 2. Definitions for distribution computations for education service districts. As used in sections 2 to 7 of this 2001 Act:

(1) "Base adjustment" means the base adjustment specified or calculated under section 6 of this 2001 Act.

(2) "Base amount" means the base amount specified or calculated under section 3 of this 2001 Act.

(3) "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.

(4) "General services grant" means the general services grant calculated under section 7 of this 2001 Act.

(5) "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;

(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.

(6) "Revenue gap" means the revenue gap calculated under section 5 of this 2001 Act.

(7) "Target amount" means the target amount calculated under section 4 of this 2001 Act. [2001 c.695 §2]

Sec. 3. Base amount. (1) For the 2001-2002 fiscal year, the base amount for an education service district shall equal the higher of:

(a) The amount that the education service district received for the 2000-2001 fiscal year, as calculated under section 2, chapter 1066, Oregon Laws 1999, as adjusted by the Emergency Board and as limited by section 7, chapter 914, Oregon Laws 1999, as an Education Service District Grant from the State School Fund + Education Service District Local Revenue; or

(b) The amount that is equal to {(the Education Service District Grant from the State School Fund + local revenues of the education service district for the 2000-2001 fiscal year) ¸ education service district extended ADMw from 2000-2001 fiscal year} ´ education service district extended ADMw for the 2001-2002 fiscal year. The base amount calculated under this paragraph shall be based on the amount that the education service district received for the 2000-2001 fiscal year, as calculated under section 2, chapter 1066, Oregon Laws 1999, as adjusted by the Emergency Board and as limited by section 7, chapter 914, Oregon Laws 1999.

(2) For the 2002-2003, 2003-2004 and 2004-2005 fiscal years, the base amount for an education service district shall equal the higher of:

(a) The amount that the education service district received for the prior fiscal year, as calculated under section 7 of this 2001 Act; or

(b) The amount that is equal to {(grant amount from the State School Fund for the prior fiscal year under section 7 of this 2001 Act + local revenues of the education service district for the prior fiscal year) ¸ education service district extended ADMw for the prior fiscal year} ´ education service district extended ADMw for the current fiscal year. [2001 c.695 §3]

Sec. 4. Target amount. (1) For the 2001-2002, 2002-2003, 2003-2004 and 2004-2005 fiscal years, to calculate the target amount for each education service district:

(a) The Superintendent of Public Instruction shall calculate the total amount appropriated or allocated to the State School Fund for a fiscal year and available for distribution to school districts, education service districts and programs + total amount of local revenues of all school districts, computed as provided in ORS 327.013, + total amount of local revenues of all education service districts. The superintendent may not include in the calculation under this paragraph amounts transferred from the State School Fund to the Out-of-State Disabilities Placement Education Fund or 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:

(A) For the 2001-2002 fiscal year, 95.34 percent.

(B) For the 2002-2003 fiscal year, 95.36 percent.

(D) For the 2004-2005 fiscal year, 95.15 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 the total amount calculated for each fiscal year under paragraph (b) of this subsection as school district general purpose grants, facility grants and transportation grants to school districts.

(2) The target amount for each education service district is equal to the following percent of the total of the education service district’s component school districts’ general purpose grants, facility grants and transportation grants, as calculated under subsection (1)(d) of this section:

(a) For the 2001-2002 fiscal year, 4.888 percent.

(b) For the 2002-2003 fiscal year, 4.866 percent.

(d) For the 2004-2005 fiscal year, 5.097 percent.

(3) For the 2003-2004 and 2004-2005 fiscal years, 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 of the education service district for that fiscal year. The amount that each component school district receives under this subsection shall be prorated based on the district extended ADMw of each school district. [2001 c.695 §4]

Sec. 5. Revenue gap. For the 2001-2002, 2002-2003, 2003-2004 and 2004-2005 fiscal years, the revenue gap for each education service district shall equal the absolute value of the difference between the target amount and the base amount. [2001 c.695 §5]

Sec. 6. Base adjustment. (1) For each education service district that has a base amount that is greater than the target amount and that has an education service district extended ADMw of greater than 2,500, the base adjustment shall equal:

(a) For the 2001-2002 fiscal year, the lower of 20 percent of the revenue gap or five percent of the base amount.

(b) For the 2002-2003 fiscal year, the lower of 25 percent of the revenue gap or five percent of the base amount.

(d) For the 2004-2005 fiscal year, 50 percent of the revenue gap.

(2) For each education service district that has a base amount that is greater than the target amount and that has an education service district extended ADMw of less than or equal to 2,500, the base adjustment shall equal:

(a) For the 2001-2002 fiscal year, the lower of four percent of the base amount or an amount that when subtracted from the base amount will equal the same amount per education service district extended ADMw that the education service district received in the prior fiscal year.

(b) For the 2002-2003 fiscal year, the lower of four percent of the base amount or an amount that when subtracted from the base amount will equal the same amount per education service district extended ADMw that the education service district received in the prior fiscal year.

(d) For the 2004-2005 fiscal year, 50 percent of the revenue gap.

(3) For each education service district that has a base amount that is less than the target amount or equal to the target amount, the base adjustment shall equal a percentage that when multiplied by the revenue gap of those education service districts and then added to the base amounts distributes as nearly as practicable the total sum available for distribution from the State School Fund to education service districts. [2001 c.695 §6]

Sec. 7. General services grant. (1) For each fiscal year, the Superintendent of Public Instruction shall calculate a general services grant for each education service district that is equal to:

(a) For education service districts with a base amount that is greater than the target amount, base amount – base adjustment.

(b) For education service districts with a base amount that is less than the target amount or equal to the target amount, base amount + base adjustment.

(2) Notwithstanding subsection (1) of this section, for each education service district that has a base amount that is greater than the target amount or equal to the target amount and that has an education service district extended ADMw of less than 2,500, the general services grant of the education service district shall be equal to at least:

(a) For the 2001-2002 fiscal year, $700,000.

(b) For the 2002-2003 fiscal year, $750,000.

(d) For the 2004-2005 fiscal year, $900,000.

(3)(a) Each fiscal year, subject to subsection (5) of this section, each education service district shall receive a State School Fund grant = general services grant – local revenues of the education service district.

(b) Notwithstanding paragraph (a) of this subsection and subsection (5) of this section, the State School Fund grant of an education service district may not be less than zero.

(4) If the boundaries of an education service district change after July 1, 2001, the Superintendent of Public Instruction shall determine the amounts under subsections (1) to (3) of this section as if the newly formed education service district existed in the prior fiscal year.

(5)(a) After completing the calculations under subsections (1) to (4) of this section, the Superintendent of Public Instruction shall apportion from the State School Fund to each education service district an amount = (funding percentage ´ general services grant) – local revenues of the education service district.

Sec. 8. Sections 2 to 7 of this 2001 Act are repealed on June 30, 2005. [2001 c.695 §8]

327.020 [Repealed by 1957 c.612 §8 (327.024 enacted in lieu of 327.020)]

327.021 Percentages and time of payment of apportionments to education service districts. (1) The Superintendent of Public Instruction shall distribute funds payable to education service districts from the State School Fund following the same percentages and dates specified for school districts under ORS 327.095.

(2) The Department of Education may require reports from education service districts of projected and estimated data necessary for the calculation of the State School Fund grant amount.

(3) The Department of Education may adjust distributions to an education service district to reflect the difference between the amount payable to the education service district and the amount actually distributed to the education service district based on audited data and data received from reports from education service districts. [2001 c.695 §11]

327.023 Grants for special and compensatory education programs. In addition to those moneys distributed through the State School Fund, the Department of Education shall provide from state funds appropriated therefor, grants in aid or support for special and compensatory education programs including:

(1) Special schools for children who are deaf or blind as defined in ORS 346.010.

(2) Medicaid match for administration efforts to secure Medicaid funds for services provided to children with disabilities.

(3) Hospital programs for education services to children who are hospitalized for extended periods of time or who require hospitalization due to severe disability as described in ORS 343.261.

(4) Private agency programs for education services to children who are placed by the state in long term care or treatment facilities as described in ORS 343.961.

(5) Regional services provided to children with low-incidence disabling conditions as described in ORS 343.236.

(6) Early childhood special education provided to preschool children with disabilities from age three until age of eligibility for kindergarten as described in ORS 339.185, 343.035, 343.041, 343.055, 343.065, 343.157 and 343.455 to 343.534.

(7) Early intervention services for preschool children from birth until age three as described in ORS 339.185, 343.035, 343.041, 343.055, 343.065, 343.157 and 343.455 to 343.534.

(8) Evaluation services for children with disabilities to determine program eligibility and needs as described in ORS 343.146.

(9) Education services to children residing at state hospitals.

(10) Disadvantaged children program under ORS 343.680.

(11) Early childhood education under ORS 329.215 to 329.235.

(12) Child development specialist under ORS 329.255.

(13) Youth care centers under ORS 420.885.

(14) Staff development and mentoring.

(15) Professional technical education grants.

(16) Special science education programs.

(17) Talented and Gifted children program under ORS 343.391 to 343.413. [1991 c.780 §5; 1993 c.45 §292; 1999 c.989 §33; 2001 c.900 §240]

327.024 [1957 c.612 §9 (enacted in lieu of 327.020); 1959 c.388 §3; 1965 c.100 §20; renumbered 327.063]

327.025 [Repealed by 1957 c.612 §3 (327.028 enacted in lieu of 327.025)]

327.026 State School Fund grant for programs; calculation; adjustment. (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) 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 in ORS 327.013 (7)(a)(A), multiplied by Funding Percentage and further multiplied by Statewide Target per ADMw Grant.

(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. [1995 c.649 §7; 1997 c.821 §17; 2001 c.681 §5]

Note: Section 7, chapter 681, Oregon Laws 2001, provides:

Sec. 7. Notwithstanding ORS 327.026 (3), for the 2001-2003 biennium, the Juvenile Detention Education Program may receive from the State School Fund for each school year a State School Fund grant for no more than 350 ADM. [2001 c.681 §7]

327.028 [1957 c.612 §4 (enacted in lieu of 327.025); 1957 c.708 §5; 1959 c.388 §4; 1965 c.100 §22; renumbered 327.075]

327.030 [Repealed by 1957 c.612 §18]

327.032 [Formerly 327.070; 1965 c.100 §28; renumbered 327.103]

327.033 Approved transportation costs. (1) Approved transportation costs shall be estimated for the year of distribution.

(2) Approved transportation costs shall include depreciation of original cost to the district of district-owned buses, not in excess of 10 percent per year.

(3) Districts are required to account separately for those funds received from the State School Fund attributable to the costs included under subsection (2) of this section, and expenditure of those funds shall be limited to the acquisition of new buses or transportation equipment. [1991 c.780 §7a]

327.035 [Amended by 1953 c.108 §3; 1957 c.612 §10; 1959 c.388 §5; 1963 c.142 §2; 1965 c.100 §17; 1965 c.323 §1; 1971 c.107 §1; repealed by 1991 c.780 §30]

327.038 [1957 s.s. c.2 §3; repealed by 1959 c.388 §15]

327.040 [Repealed by 1957 c.612 §18]

327.042 [1957 c.708 §§2, 3; 1959 c.388 §6; 1963 c.570 §1d; 1965 c.100 §18; 1969 c.625 §2; 1971 c.21 §1; 1971 c.107 §2; 1973 c.750 §4; 1977 c.840 §2; repealed by 1991 c.780 §30]

327.043 When district required to provide transportation; waiver. (1) A school district is required to provide transportation for elementary students who reside more than one mile from school and for secondary school students who reside more than 1.5 miles from school. A district is also required to provide transportation for any student identified in a supplemental plan approved by the State Board of Education.

(2) Notwithstanding subsection (1) of this section, the State Board of Education may waive the requirement to provide transportation for secondary school students who reside more than 1.5 miles from school. A district must present to the board a plan providing or identifying suitable and sufficient alternate modes of transporting secondary school students. [1991 c.780 §7]

327.045 [Repealed by 1957 c.626 §1]

327.046 [1961 c.502 §10; repealed by 1963 c.570 §33]

327.047 Out-of-State Disabilities Placement Education Fund. (1) There is established the Out-of-State Disabilities Placement Education Fund, separate and distinct from the General Fund. Interest earned by the Out-of-State Disabilities Placement Education Fund shall be credited to the fund. Any moneys in the fund that are not distributed by the Department of Education in any fiscal year shall be retained in the fund and may be distributed in the next fiscal year.

(2) The moneys in the fund are appropriated continuously to the Department of Education for purposes of the grant program created by ORS 327.051. [1997 c.821 §9]

327.048 [1961 c.502 §6; repealed by 1963 c.570 §33]

327.049 [1985 c.555 §9; repealed by 1991 c.780 §30]

327.050 [Amended by 1957 c.612 §11; repealed by 1963 c.570 §33]

327.051 Grants for school districts for out-of-state placement costs for children with disabilities. (1) In addition to those moneys distributed through the State School Fund, the Department of Education may award grants to school districts for the costs of children with disabilities who are placed out-of-state by a school district.

(2) The grants shall be limited to the actual placement costs incurred by the school district minus twice the portion of the general purpose grant the school district received for the child.

(3) The department shall prorate the amount of funds available for the grant program among those school districts that have applied for a grant prior to June 30 of each year.

(4) The State Board of Education may adopt any rules necessary for the administration of the grant program. [1997 c.821 §8]

327.052 [1961 c.408 §1; repealed by 1963 c.570 §33]

327.053 [1965 c.100 §18a; 1973 c.750 §5; 1977 c.840 §3; 1981 c.899 §1; 1985 c.555 §10; 1989 c.216 §2; repealed by 1991 c.780 §30]

327.055 [Repealed by 1963 c.570 §33]

327.056 [1977 c.840 §4; repealed by 1989 c.216 §1]

327.057 [1957 c.556 §11; repealed by 1963 c.570 §33]

327.058 [1959 c.528 §§4, 11; 1961 c.500 §1; repealed by 1963 c.570 §33]

327.059 [Formerly 327.018; 1969 c.625 §3; 1971 c.21 §2; 1973 c.750 §6; 1977 c.840 §5; 1981 c.899 §2; repealed by 1991 c.780 §30]

327.060 [Amended by 1955 c.766 §1; repealed by 1963 c.570 §33]

327.061 Computation of number of students in average daily membership. (1) Numbers of students in average daily membership used in the distribution formula as specified in ORS 327.013 (7), 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. [1991 c.780 §11; 1993 c.18 §88]

327.062 [1955 c.103 §2; repealed by 1963 c.570 §33]

327.063 [Formerly 327.024; 1969 c.270 §1; 1969 c.625 §4; 1971 c.107 §3; 1973 c.750 §7; 1977 c.840 §6; 1979 c.259 §2; 1981 c.804 §96; repealed by 1991 c.780 §30]

327.065 [Amended by 1953 c.444 §11; 1953 c.711 §4; 1955 c.766 §2; 1957 c.328 §1; 1959 c.397 §1; 1961 c.537 §1; repealed by 1963 c.570 §33]

327.067 [1957 c.219 §3; 1961 c.537 §2; repealed by 1963 c.570 §33]

327.068 [1957 c.642 §§4, 7; 1959 c.388 §7; repealed by 1963 c.570 §33]

327.069 [1957 c.620 §1; 1959 c.388 §8; 1961 c.625 §1; part renumbered 330.630; repealed by 1963 c.570 §33]

327.070 [Amended by 1957 c.658 §3; renumbered 327.032 and then 327.103]

327.071 [1977 c.840 §7a; repealed by 1983 c.610 §8]

327.072 [Amended by 1957 c.612 §12; 1963 c.570 §4; 1965 c.100 §21; 1969 c.625 §5; 1973 c.750 §8; repealed by 1991 c.780 §30]

327.074 [Amended by 1965 c.100 §26; renumbered 327.097]

327.075 [Formerly 327.028; amended by 1969 c.625 §6; 1977 c.840 §7; 1979 c.277 §7; 1991 c.780 §14; 1993 c.61 §6; repealed by 1993 c.690 §6]

327.076 [Repealed by 1965 c.100 §456]

327.077 Remote small elementary school and small high school determination; effect; waiver. (1) A school may qualify as a remote small elementary school if the average daily membership in grades one through eight for an elementary school teaching:

(a) Eight grades is below 224.

(b) Seven grades is below 196.

(d) Five grades is below 140.

(e) Four grades is below 112.

(f) Three grades is below 84.

(g) Two grades is below 56.

(h) One grade is below 28.

(2) A school may qualify as a small high school if:

(a) The school is in a school district that has an ADMw of less than 8,500; and

(b) The average daily membership in grades 9 through 12 for a high school teaching:

(A) Four grades is below 350.

(B) Three grades is below 267.

(3) No elementary school shall qualify as a remote small elementary school under subsection (1) of this section if it is within eight miles by the nearest traveled road from another elementary school unless there are physiographic conditions that make transportation to another school not feasible.

(4)(a) If an elementary school in a school district qualifies as a remote small elementary school, the district shall have an additional amount added to the district’s ADMw.

(b) The additional amount = {224 – (ADMa ¸ (number of grades in the school ¸ eight))} ´ .0045 ´ ADMa ´ distance adjustment.

(5)(a) If a high school in a district qualifies as a small high school, the district shall have an additional amount added to the district’s ADMw.

(b) The additional amount = {350 - (ADMa ¸ (number of grades in the school ¸ four))}´ .0029 ´ ADMa.

(6) The distance adjustment for an elementary school = .025 for each 10th of a mile more than eight miles that a school is away from the nearest elementary school measured by the nearest traveled road or 1.0, whichever is less.

(7)(a) A school may qualify as a remote small elementary school under this section only if the location of the school has not changed since January 1, 1995, and if the school qualified as a remote small school on July 18, 1995.

(b) A school may qualify as a small high school under this section only if the location of the school has not changed since January 1, 1995, and if the school qualified as a small high school on October 23, 1999.

(c) A public charter school as defined in ORS 338.005 may qualify as a remote small elementary school under this section only if the location of the school has not changed since January 1, 1995, and if the school qualified as a nonchartered public remote small school on July 18, 1995.

(d) A public charter school as defined in ORS 338.005 may qualify as a small high school under this section only if the location of the school has not changed since January 1, 1995, and if the school qualified as a nonchartered public remote small school on July 18, 1995.

(e) The Superintendent of Public Instruction may waive the requirements of paragraph (a), (b), (c) or (d) of this subsection if the superintendent determines that exceptional circumstances exist.

(f) An alternative education program as defined in ORS 336.615 may not qualify as a small high school under this section.

(8) The opening of a public charter school shall not disqualify a school as a remote small elementary school under subsection (3) of this section or change the distance adjustment for a school under subsection (6) of this section.

(9) For purposes of this section:

(a) The "adjusted average daily membership" or "ADMa" for an elementary school shall be the average daily membership for the school, but no less than 25.

(b) The "adjusted average daily membership" or "ADMa" for a high school shall be the average daily membership for the school, but no less than 60. [1995 c.649 §2; 1999 c.200 §27; 1999 c.1066 §22]

Note: Section 12, chapter 61, Oregon Laws 1993, provides:

Sec. 12. Effect of reopening remote small elementary school. The reopening of an existing school structure for use as a school in an adjoining school district does not prevent an elementary school from qualifying as a remote small elementary school if the elementary school otherwise meets the requirements set forth in ORS 327.075 (1993 Edition). [1993 c.61 §12; 1999 c.1066 §24]

Note: Section 23, chapter 1066, Oregon Laws 1999, provides:

Sec. 23. Small high school weighting phase-in. (1) For each of the 1999-2005 distribution years, the Department of Education shall calculate for each school district that has a high school that qualifies as a small high school under ORS 327.077 a positive amount that equals the difference between the additional weighting amount added to the district’s ADMw based on the calculation under ORS 327.077 for the distribution year and the additional weighting amount that would have been added to the district’s ADMw based on the calculation under ORS 327.077 (1997 Edition).

(2) For each of the 1999-2005 distribution years, the department shall add a small high school weight to each school district that has at least one small high school.

(3) The small high school weight for each school district = the small high school additional weighting amount ´ phase-in percentage.

(4) As used in this section:

(a) "Phase-in percentage" equals:

(A) 25 percent for the 1999-2000 and 2000-2001 distribution years.

(B) 50 percent for the 2001-2002 and 2002-2003 distribution years.

(b) "Small high school additional weighting amount" means the amount calculated under subsection (1) of this section. [1999 c.1066 §23]

327.080 [Amended by 1957 c.612 §13; 1963 c.570 §5; repealed by 1965 c.100 §456]

327.081 Minimum amount of distribution to school districts by education service districts. An education service district that provides equalization under ORS 334.350 to 334.400 shall distribute at least the same proportion of taxes, offsets and revenues received by the education service district from the State School Fund to school districts that it distributed in 1992-1993. [1993 c.61 §14; 1995 c.649 §5]

Note: 327.081 is repealed July 1, 2003. See section 38, chapter 695, Oregon Laws 2001.

327.082 Kindergarten apportionment. (1) School districts which operate kindergartens that conform to the standards and rules adopted by the State Board of Education shall be eligible for apportionments from the State School Fund on the basis of resident average daily membership in the kindergartens.

(2) The apportionments shall be paid in the same manner as other apportionments from the State School Fund are paid. Computation of the amounts due each district operating a kindergarten shall be made by the Superintendent of Public Instruction pursuant to rules of the State Board of Education. The rules shall establish a method of computation that is consistent with the method of computation of other apportionments from the State School Fund. [1973 c.707 §6]

327.085 [Repealed by 1957 c.612 §6 (327.018 enacted in lieu of 327.085)]

327.090 [Amended by 1959 c.388 §10; 1963 c.570 §6; 1965 c.100 §27; repealed by 1991 c.780 §30]

327.091 [1957 c.626 §8; repealed by 1963 c.570 §33]

327.092 [1957 c.626 §9; repealed by 1963 c.570 §33]

327.093 [1957 c.626 §10; repealed by 1963 c.570 §33]

327.094 [Subsections (1) and (2) enacted as 1957 c.626 §13; subsection (3) of 1957 Replacement Part enacted as 1957 s.s. c.2 §4 (3); 1959 c.388 §11; 1963 c.570 §7; 1965 c.100 §25; subsection (4) enacted as 1971 c.22 §3; 1989 c.456 §1; repealed by 1991 c.780 §30]

327.095 Percentages and time of payment of apportionments to school districts. (1) Except as provided in subsection (2) of this section, funds due school districts under ORS 327.008 and 327.013 shall be paid approximately 16-2/3 percent on August 15, approximately eight and one-third percent on the 15th day of each of the months of 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) A portion of the August 15 through January 15 payments due school districts that adopt a class schedule that operates throughout the year for all or any schools in the district shall, at the option of such district, be paid on July 15 and September 15. The portion of funds that are paid on July 15 and September 15 shall be in the same proportion that the average daily membership of the schools that operate throughout the year bears to the total average daily membership of the school district.

(3) Any school district that operates a school throughout the year and wants payments on July 15 and September 15 as provided in subsection (2) of this section shall apply to the Superintendent of Public Instruction prior to July 1 for such payment. The superintendent shall prescribe uniform application forms for such purpose.

(4) If the combined estimated level of ADMw under ORS 327.013 (7) 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. [Amended by 1953 c.108 §3; 1957 c.612 §14; 1959 c.388 §12; 1965 c.100 §24; 1975 c.196 §1; 1977 c.280 §1; 1977 c.840 §8; 1981 c.678 §9; 1983 c.610 §7; 1991 c.780 §16; 1997 c.821 §18]

327.097 Apportionment where district changed. Where any territorial or organizational change in a school district has occurred between the date of the report and the apportionment, the Superintendent of Public Instruction shall make the payment on an equitable basis to the districts the territory or organization of which has been changed. [Formerly 327.074]

327.099 Adjustment of distribution within fiscal year. (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 (9) 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 is appropriated to 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) to distribute as nearly as practicable the total sum available for distribution. [1991 c.780 §12; 1993 c.61 §7]

327.100 [Repealed by 1963 c.570 §33]

327.101 Adjustment of distribution between fiscal years. (1) For fiscal years beginning on or after July 1, 1993, 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 appropriated to 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) to distribute as nearly as practicable the total sum available for distribution. [1991 c.780 §13; 1993 c.61 §8]

327.103 Standard school presumed; correction of deficiencies. (1) All school districts are presumed to maintain a standard school until the school has been found to be deficient by the Superintendent of Public Instruction, pursuant to standards and rules of the State Board of Education.

(2) If any deficiencies are not corrected before the beginning of the school year next following the date of the finding of deficiency and if an extension has not been granted under subsection (3) of this section, the Superintendent of Public Instruction may withhold portions of State School Fund moneys otherwise allocated to the district for operating expenses until such deficiencies are corrected unless the withholding would create an undue hardship, as determined pursuant to rules of the State Board of Education.

(3) Within 90 days of the finding of deficiency, a school district found not to be in compliance shall submit a plan, acceptable to the Superintendent of Public Instruction, for meeting standardization requirements. A team of Department of Education staff shall visit the school district and offer technical assistance, as needed, in the preparation and implementation of the plan. When an acceptable plan for meeting standardization requirements has been submitted, the Superintendent of Public Instruction may allow an extension of time, not to exceed 12 months, if the superintendent determines that such deficiencies cannot be corrected or removed before the beginning of the next school year. However, no extension shall be granted if it is possible for a district to correct the deficiency through merger. For the period of the extension of time under this subsection, the school shall be considered a conditionally standard school.

(4) Any district failing to submit a plan for meeting standardization requirements within the time specified shall receive no further State School Fund moneys until a plan acceptable to the Superintendent of Public Instruction is submitted irrespective of the district’s being given one year in which to comply. [Formerly 327.032; 1989 c.491 §5; 1991 c.693 §32; 1995 c.660 §47a]

327.105 [Repealed by 1963 c.570 §33]

327.106 School districts required to offer kindergarten through grade 12; exceptions. (1) Any school district that does not offer education programs in kindergarten through grade 12 on and after July 1, 1997, shall be considered nonstandard under ORS 327.103.

(2) This section shall not apply to any school district not required to merge under section 2 (3) or (4), chapter 393, Oregon Laws 1991.

(3) Notwithstanding subsection (1) of this section, a school district shall not be considered to be nonstandard under ORS 327.103 if:

(a) The school district offered education programs in kindergarten through grade 12 on September 1, 1996;

(b) After September 1, 1996, a majority of the board of the school district voted not to offer education programs in grades 9 through 12; and

(c) The school district merges with a unified school district and the merger takes effect under ORS 330.103 within one year after the vote of the board under paragraph (b) of this subsection. [1991 c.393 §3; 1995 c.659 §2; 1997 c.521 §13]

Note: 327.106 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

327.109 Procedure if school district or charter school alleged to be involved in religious activity; complaint, investigation, finding; effect. (1) Upon receipt from a citizen of Oregon of a complaint that on its face is colorable that a school district or public charter school is a district or public charter school that sponsors, financially supports or is actively involved with religious activity, the Superintendent of Public Instruction or the superintendent’s designated representative shall undertake promptly a preliminary investigation of the facts alleged in the complaint.

(2) If, after the preliminary investigation, the superintendent finds that there is a substantial basis to believe that the school district or public charter school is a district or public charter school that sponsors, financially supports or is actively involved with religious activity, the superintendent shall:

(a) In the case of a school district:

(A) Notify the complainant and the school district;

(B) Withhold immediately all funds due the school district under ORS 327.095; and

(b) In the case of a public charter school:

(A) Notify the complainant, the public charter school, the school district in which the public charter school is located and the sponsor of the public charter school;

(B) Withhold immediately all funds for the public charter school that, pursuant to ORS 338.155, are due under ORS 327.095 to the school district in which the public charter school is located;

(C) Order the school district in which the public charter school is located to withhold immediately all funds due the public charter school under ORS 338.155; and

(D) Schedule a contested case hearing to be conducted in accordance with ORS 183.413 to 183.470.

(3)(a) In the case of a school district if, after the preliminary investigation, the superintendent finds that there is no substantial basis to believe that the school district is a district that sponsors, financially supports or is actively involved with religious activity, the superintendent shall notify the complainant and the district of that finding and shall not withhold funds due the district under ORS 327.095 or schedule a hearing.

(b) In the case of a public charter school if, after the preliminary investigation, the superintendent finds that there is no substantial basis to believe that the public charter school is a school that sponsors, financially supports or is actively involved with religious activity, the superintendent shall notify the complainant, the public charter school, the school district in which the public charter school is located and the sponsor of the public charter school of that finding and shall not schedule a hearing or withhold funds for the public charter school that, pursuant to ORS 338.155, are due under ORS 327.095 to the school district in which the public charter school is located. The superintendent shall also order the school district in which the public charter school is located not to withhold funds due the public charter school under ORS 338.155.

(4) During the preliminary investigation, the school district or public charter school shall cooperate to a reasonable degree with the superintendent and provide any and all evidence that the superintendent considers necessary for the investigation. If the school district or public charter school fails or refuses to cooperate to a reasonable degree with the superintendent during the investigation, the superintendent shall presume that there is a substantial basis to believe that the school district or public charter school is a school district or public charter school that sponsors, financially supports or is actively involved with religious activity and shall proceed as provided in subsection (2) of this section.

(5) If the superintendent makes a finding under subsection (2) or (4) of this section, the school district or public charter school shall receive no funds under ORS 327.095 or 338.155 from the date of the superintendent’s finding until the superintendent finds that the school district or public charter school is no longer sponsoring, financially supporting or actively involved with religious activity.

(6) The funds withheld under this section shall be held in an escrow account and shall be removed from that account only as follows:

(a) If the superintendent determines, after a contested case hearing, or a court on appeal rules, that the school district or public charter school never sponsored, financially supported or was actively involved with religious activity, the entire amount, including interest thereon, in the escrow account shall be released to the school district or public charter school.

(b) If the superintendent determines, after a contested case hearing, or a court on appeal rules, that the school district or public charter school sponsored, financially supported or was actively involved with religious activity in the past but has ceased to do so, that portion of the amount, including interest thereon, in the escrow account that accrued to the school district or public charter school after the school district or public charter school ceased the proscribed conduct shall be paid to the school district or public charter school. Any amount, including interest thereon, permanently withheld from the school district or public charter school shall revert to the State School Fund or to the General Fund, if the biennium has ended.

(c) If the school district or public charter school does not cease the proscribed conduct by the beginning of the next school year, the superintendent shall notify the State Treasurer who shall cause the amount in the escrow account, including interest thereon, to revert to the State School Fund or to the General Fund, if the biennium has ended.

(7) If the superintendent schedules a contested case hearing, as provided in subsection (2) of this section, the superintendent may conduct such further investigation of the facts relevant to the complaint as the superintendent considers necessary. In conducting the investigation, the superintendent shall have the power of subpoena to compel production of documents and attendance of witnesses at depositions and may do all things necessary to secure a full and thorough investigation.

(8) If a person or school district or public charter school fails to comply with any subpoena issued under subsection (7) of this section, a judge of the circuit court of any county, on application of the superintendent, shall compel obedience by proceedings for contempt as in the case of disobedience of the requirements of a subpoena issued from circuit court. [1985 c.584 §2; 1999 c.200 §28]

327.110 [Amended by 1955 c.537 §1; repealed by 1957 c.322 §1]

327.115 [Amended by 1955 c.385 §1; 1959 c.388 §13; repealed by 1963 c.570 §33]

327.120 Correction of errors in apportionments. The Superintendent of Public Instruction may correct, in a succeeding year, any errors in apportionment by the withholding of the amount of an overapportionment or by the payment of an underapportionment from funds to be apportioned.

327.125 Superintendent to administer ORS 327.006 to 327.133 and 327.731; board rules. The Superintendent of Public Instruction shall administer the provisions of ORS 327.006 to 327.133 and 327.731. The State Board of Education shall adopt all necessary rules not inconsistent with ORS 327.006 to 327.133 and 327.731 to carry into effect the provisions of those statutes. [Amended by 1963 c.570 §8; 1965 c.100 §29; 1989 c.491 §6; 1991 c.780 §17]

327.130 [Repealed by 1965 c.100 §456]

327.133 Reports by districts. (1) Each school district, other than an education service district, shall file with the Superintendent of Public Instruction:

(a) By July 15 of each year, an annual report covering the school year ending on the preceding June 30; and

(b) By January 15, of each year, a December quarterly report covering the quarter of the current school year commencing October 1 and ending December 31.

(2) Each such report shall show the average daily membership of resident pupils of the district for the period covered and shall also contain such other information as the Superintendent of Public Instruction may require. [Formerly 327.200; 1973 c.750 §9]

327.135 [Amended by 1955 c.660 §27; 1957 c.612 §15; repealed by 1963 c.570 §33]

327.137 Audit statements filed with department; effect of failure to file or insufficiency of statement. Every common or union high school district shall file a copy of its audit statement with the Department of Education within six months of the end of the fiscal year for which the audit is required. If the audit report, as submitted to the district, fails to provide the detail necessary for the computation required in the administration of ORS 327.006 to 327.133, 327.731, 328.542, 334.270, 530.115 and this section, the district shall submit the necessary information on forms provided by the department within the time prescribed for filing the audit in this section. Any district failing to file a copy of its report under this section or ORS 327.133 shall not receive any payments from the State School Fund until such reports are filed. [1965 c.199 §1; 1977 c.840 §9; 1989 c.491 §7; 1991 c.780 §18]

327.140 [Amended by 1955 c.314 §1; 1957 c.612 §17; repealed by 1963 c.570 §33]

327.145 [Amended by 1957 c.626 §4; repealed by 1963 c.570 §33]

327.147 Increased allocation when union high school district becomes common school district. (1) When a union high school district becomes a common school district, as described in ORS 335.505, the common school district shall be entitled to an increased allocation, based on the total average daily membership, as defined in ORS 327.006, of the new common school district as follows:

(a) An additional 15 percent in the first year of operation as a common school district;

(b) An additional 10 percent in the second year of operation as a common school district; and

(2) The amounts authorized by this section shall be computed based on the computation of the affected district’s allocation of moneys from the State School Fund but shall be payable from funds specifically appropriated for the purposes of this section. [1989 c.969 §1]

327.150 [Amended by 1955 c.314 §2; repealed by 1963 c.570 §33]

327.152 Increased allocation when certain merger occurs. (1) If a school district responsible for education in kindergarten through grade 12, that does not operate a high school, merges with a district providing education in kindergarten through grade 12, the district providing the education shall be entitled to an increased allocation, based on the average daily membership of the former district, as follows:

(a) An additional 15 percent in the first year of operation of the merged district;

(b) An additional 10 percent in the second year of operation of the merged district; and

327.155 [Repealed by 1955 c.314 §3]

327.157 Minimum apportionment to school districts affected or not affected by ORS 327.147 and 327.152. (1) Subject to the limits of funds appropriated for the implementation of ORS 327.147 and 327.152, a school district shall not be apportioned less for its average daily membership for any year subsequent to the 1989-1990 fiscal year than was estimated for the 1989-1990 fiscal year.

(2) If the funds appropriated for the implementation of ORS 327.147 and 327.152 are insufficient to meet the obligations incurred under ORS 327.147 and 327.152, each district eligible to receive funds under ORS 327.147 or 327.152 shall receive its pro rata share of the funds available for the implementation of ORS 327.147 and 327.152. [1989 c.969 §4]

327.160 [Repealed by 1963 c.570 §33]

327.200 [1957 c.612 §16; 1959 c.388 §14; 1965 c.100 §23; renumbered 327.133]

327.202 [1989 c.971 §1; repealed by 1991 c.459 §448]

327.205 [Repealed by 1957 c.626 §1]

327.207 [1989 c.971 §2; repealed by 1991 c.459 §448]

327.210 [Repealed by 1957 c.626 §1]

327.212 [1989 c.971 §3; repealed by 1991 c.459 §448]

327.215 [Repealed by 1957 c.626 §1]

327.217 [1989 c.971 §4; repealed by 1991 c.459 §448]

327.220 [Repealed by 1957 c.626 §1]

327.225 [Repealed by 1957 c.626 §1]

327.230 [Repealed by 1957 c.626 §1]

327.255 [Repealed by 1957 c.626 §1]

327.260 [Repealed by 1957 c.626 §1]

327.265 [Repealed by 1957 c.626 §1]

327.270 [Repealed by 1957 c.626 §1]

327.275 [Repealed by 1957 c.626 §1]

327.280 [Repealed by 1957 c.626 §1]

327.285 [Repealed by 1957 c.626 §1]

GRANTS TO SCHOOL DISTRICTS AND PROGRAMS

(School Improvement Grants)

327.290 Legislative findings relating to student achievement. The Legislative Assembly finds that:

(1) The state has an interest in ensuring that public resources for primary and secondary schools are used to achieve the outcomes established under the Oregon Educational Act for the 21st Century in ORS chapter 329.

(2) To achieve that purpose, the School Improvement Fund is established so the state may support activities directly related to increases in student achievement while still allowing school districts flexibility in determining the specific activities necessary to support students.

(3) It is the intent of the state in establishing the School Improvement Fund to link these activities to the recommendations of the Quality Education Commission established under Executive Order 99-16 and the recommendations of the Quality Education Commission established under ORS 327.500. [2001 c.794 §1; 2001 c.794 §1a]

327.294 School Improvement Fund. (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. Any moneys in the fund that are not distributed by the Department of Education in any fiscal year shall be retained in the fund and may be distributed in the next fiscal year.

(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. [2001 c.794 §2]

327.297 Grants for activities related to student achievement; evaluation of recipient progress; rules. (1) In addition to those moneys distributed through the State School Fund, the Department of Education shall award grants to school districts, the Youth Corrections Education Program and the Juvenile Detention Education Program for activities that relate to increases in student achievement, including:

(a) Class size reduction;

(b) Increases in instructional time;

(d) Remediation and alternative learning;

(e) Early childhood support;

(f) Services to at-risk youth;

(g) Additional instructional materials;

(h) Curriculum and instructional support;

(i) Services for English as a second language students; and

(j) Other activities approved by the State Board of Education that are shown to have a relationship to increasing student achievement.

(2) Each school district, the Youth Corrections Education Program and the Juvenile Detention Education Program may apply to the Department of Education for a grant. The department shall review and approve applications based on criteria established by the State Board of Education. In establishing the criteria, the State Board of Education shall consider the recommendations of the Quality Education Commission established under Executive Order 99-16 and the recommendations of the Quality Education Commission established under ORS 327.500. The applications shall include the activities to be funded and the goals of the school district or program for increases in student performance. The applications shall become part of the local district improvement plan described in ORS 329.095.

(3) The Department of Education shall evaluate the annual progress of each recipient of grant funds under this section toward the performance targets established by the Quality Education Commissions that have been funded by the Legislative Assembly. The evaluation shall become part of the requirements of the department for assessing the effectiveness of the district under ORS 329.085, 329.095 and 329.105. The department shall ensure school district and program accountability by providing appropriate assistance, intervening and establishing consequences in order to support progress toward the performance targets.

(4) Beginning with the 2003-2005 biennium, each biennium the Department of Education shall report to the Legislative Assembly on the grant program and the results of the grant program.

(5)(a) Notwithstanding ORS 338.155 (9), the Department of Education may not award a grant under this section directly to a public charter school.

(b) A school district that receives a grant under this section may transfer a portion of the grant to a public charter school based on the charter of the school or any other agreement between the school district and the public charter school.

(c) A public charter school that receives grant funds under this subsection shall use those funds for the activities specified in subsection (1) of this section.

(6)(a) The amount of each grant = the program’s or school district’s ADMw ´ (the total amount available for the grants in each distribution year ¸ the total statewide ADMw).

(b) As used in this subsection:

(A) "ADMw" means:

(i) For a school district, the extended weighted average daily membership as calculated under ORS 327.013, 338.155 (1) and 338.165 (2);

(ii) For the Youth Corrections Education Program, the average daily membership as defined in ORS 327.006 multiplied by 2.0; and

(iii) For the Juvenile Detention Education Program, the average daily membership as defined in ORS 327.006 multiplied by 1.5.

(B) "Total statewide ADMw" means the total extended ADMw of all school districts plus the ADMw of the Youth Corrections Education Program plus the ADMw of the Juvenile Detention Education Program.

(7) Each school district or program shall deposit the grant amounts it receives under this section in a separate account, and shall apply amounts in that account to pay for activities described in the district’s or program’s application.

(8) The State Board of Education may adopt any rules necessary for the administration of the grant program. [2001 c.794 §3; 2001 c.794 §3c]

Note: Section 4, chapter 794, Oregon Laws 2001, provides:

Sec. 4. (1) Notwithstanding section 3 (1) of this 2001 Act [327.297 (1)], for the 2001-2003 and 2003-2005 biennia the Department of Education shall award grants under section 3 of this 2001 Act [327.297] for activities that relate to improved student performance on third and fifth grade reading and mathematics assessments.

(2) Notwithstanding subsection (1) of this section, for the 2001-2003 and 2003-2005 biennia the department may award grants under section 3 of this 2001 Act for activities that relate to improved student performance other than those specified in subsection (1) of this section if the department determines that a school district or program:

(a) Has met the benchmarks established for third and fifth grade reading and mathematics; or

(b) Is making significant progress toward achieving the benchmarks established for third and fifth grade reading and mathematics. [2001 c.794 §4]

(Construction and Maintenance of Public School Facilities Grant)

327.300 Definitions for ORS 327.300 to 327.320. As used in ORS 327.300 to 327.320:

(1) "Construction" includes land acquisition, planning, design, construction, remodeling, altering, furnishing and equipping public school facilities.

(2) "Maintenance" includes repairing, replacement and other capital maintenance but does not include cleaning.

(3) "Public school facility" includes facilities used for classroom instruction, multipurpose activities, libraries or any other use associated with public education in preschool through grade 12, and includes facilities that may be used by more than one school district.

(4) "School district" means a common or union high school district, an education service district or any combination thereof. [1993 c.765 §120]

327.310 Legislative findings. The Legislative Assembly finds that:

(1) The construction and maintenance of public school facilities accomplish the purpose of creating jobs and furthering economic development in Oregon by, among other advantages:

(a) Furnishing an important element of the public school system that provides the basic framework for continuing and expanding economic activity in the state;

(b) Alleviating the congestion and crowding associated with, and reducing the burdens of expansion and maintenance of, existing public school facilities, as well as reducing energy consumption; and

(c) Creating employment opportunities through the funding of projects for the development and construction of public school facilities.

(2) Based on the legislative findings described in this section, the use of a portion of the net proceeds from the operation of the state lottery funds under section 4 (3), Article XV of the Oregon Constitution and ORS 461.510 creates jobs and furthers economic development. [1993 c.765 §121]

327.320 School Facility Improvement Fund. There is hereby created the School Facility Improvement Fund, separate and distinct from the General Fund. The fund shall be an investment fund for purposes of ORS 293.701 to 293.820. Moneys in the fund are appropriated continuously for the purpose of carrying out ORS 327.330. Interest earned by the fund shall be credited to the fund. [1993 c.765 §122]

327.330 Grants to school districts for construction and maintenance of public school facilities. (1) Subject to the rules of the State Board of Education, the Superintendent of Public Instruction shall make grants to school districts that apply therefor for the purpose of construction and maintenance of public school facilities.

(2) Grants shall not exceed $500,000 in any biennium to any school district. In addition, a combination of districts may submit a joint grant application in an amount not to exceed $500,000. However, a district or combination thereof may apply in subsequent bienniums for additional grants for the same facility. Grants must be matched at least one local dollar for four state dollars by the district or combination thereof.

(3) The state board by rule shall establish criteria for grant approval. Such criteria shall include but not be limited to:

(a) The age of public school facilities, the degree of overcrowding and the absence of facilities that are considered necessary to accomplish the educational goals of the district and this state; and

(b) Maintenance and reconstruction needs related to the deterioration of existing public school facilities, which deterioration has the potential of affecting the health and safety of students. [1993 c.765 §123]

(Small School District Grants)

Note: Sections 2 to 6, chapter 670, Oregon Laws 2001, are repealed June 30, 2003. See section 9, chapter 670, Oregon Laws 2001. Sections 2 to 6, chapter 670, Oregon Laws 2001, provide:

Sec. 2. (1) There is transferred to the Small School District Supplement Fund from the State School Fund, for the fiscal year beginning July 1, 2001, the amount of $4.5 million.

(2) There is transferred to the Small School District Supplement Fund from the State School Fund, for the fiscal year beginning July 1, 2002, the amount of $4.5 million. [2001 c.670 §2]

Sec. 3. (1) There is established the Small School District Supplement Fund, separate and distinct from the General Fund.

(2) The moneys in the Small School District Supplement Fund are appropriated continuously to the Department of Education for purposes of the grant program created by section 5 of this 2001 Act. [2001 c.670 §3]

Sec. 4. As used in sections 4 to 6 of this 2001 Act:

(1)(a) "Small high school" means a public school that is operated by a small school district and that has students in:

(A) Grades 9 through 12, with an ADM of less than 350 in grades 9 through 12; or

(B) Grades 10 through 12 only, with an ADM of less than 267.

(b) "Small high school" does not include an alternative education program or a public charter school.

(2) "Small school district" means a school district with a weighted average daily membership (ADMw) of less than 8,500. [2001 c.670 §4]

Sec. 5. (1) In addition to those moneys distributed through the State School Fund, for the fiscal years beginning July 1, 2001, and July 1, 2002, the Department of Education shall award grants to small school districts with one or more small high schools from moneys appropriated to the department from the Small School District Supplement Fund in the following order of priorities:

(a) First priority, base grants as determined under subsection (2) of this section.

(b) Second priority, needs grants as determined under subsection (3) of this section.

(c) Third priority, any moneys remaining after awarding base grants and needs grants under paragraphs (a) and (b) of this subsection shall be divided per ADM among all small school districts with small high schools and added to the amount of each small school district’s base grant. Amounts distributed under this paragraph shall be in addition to the amount of the base grant specified in subsection (2) of this section.

(2) Each fiscal year, the department shall award a base grant to each small school district with one or more small high schools that is equal to $200 per ADM of each small high school in the small school district.

(3) Each fiscal year, the department may award a needs grant to each small school district with one or more small high schools based on the financial needs of the district. The needs grants shall be awarded through an application process. The criteria for determining the financial needs of the district shall include, but not be limited to:

(a) The size of the small school district;

(b) Whether enrollment in the small school district is declining and the degree to which the enrollment is declining;

(d) The balance of funds available to the small school district at the end of the prior fiscal year; and

(e) The resources available to the small school district from an education service district.

(4) The State Board of Education shall adopt any rules necessary for the administration of this section. [2001 c.670 §5]

Sec. 6. (1) The Department of Education shall conduct a study on the relationship between the size of Oregon’s small school districts and the cost of and need for programs. Based on the study, the department shall develop recommendations about small school districts.

(2) Prior to October 1, 2002, the department shall report to the appropriate interim legislative committees about the study and the recommendations. [2001 c.670 §6]

(Local Option Equalization Grants)

327.333 Policy on provision of grants to school districts. The Legislative Assembly declares that it is the policy of this state to provide substantial equity in opportunity among school districts in which electors support local option taxes for primary and secondary education. This policy will be accomplished by providing grant supplements to those districts that enact local option taxes and that have lower property wealth per student. [2001 c.896 §1]

327.336 Qualifications for grant; grant amount. (1) As used in this section:

(a) "Extended ADMw" means the district extended weighted average daily membership computed under ORS 327.013 (6).

(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.

(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 ´ (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) ´ 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) Ten percent of the combined total for the school district of the general purpose grant, the transportation grant and the facility grant of the school district for the current fiscal year; or

(B) $500 multiplied by the extended ADMw of the school district for the current 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. [2001 c.896 §2]

327.339 Local Option Equalization Grants Account; grant payments. (1) The Local Option Equalization Grants Account is created in the General Fund.

(2) From the biennial legislative appropriation to the Local Option Equalization Grants Account to fund the local option equalization grant program described in ORS 327.336, amounts necessary to make the grant payments are continuously appropriated to the Department of Education for the purpose of making these payments.

(3) The department shall make estimated local option equalization grant payments to school districts entitled to such payments under ORS 327.336 on or before March 31 of each fiscal year.

(4) If the estimated local option equalization grant payment does not equal the actual local option equalization grant to which a school district is entitled under ORS 327.336, the department shall determine the increase or decrease needed to correct the amount of the grant and may incorporate the correction into a state school fund grant made to the district. The correction may be made in any state school fund grant made during the fiscal year in which the estimated grant payment was made or in the next succeeding fiscal year.

(5) If the amount of moneys available in the Local Option Equalization Grants Account is insufficient to make the payments required under ORS 327.336 and this section, the payments shall be proportionally reduced so that the state does not accrue a debt in making these payments. [2001 c.896 §3]

(English as Second Language Teacher Training Grants)

327.345 Grants for training English as Second Language teachers; qualifications; use; rules. (1) As used in this section, "ESL student" means a student who is eligible for and enrolled in an English as a Second Language program under ORS 336.079.

(2) In addition to distributing moneys through the State School Fund, the Department of Education may award grants to school districts for the costs of training English as a Second Language teachers.

(3) The grants shall be available to any school district:

(a) In which three percent or more of the students enrolled are ESL students;

(b) That serves ESL students or bilingual students within a large geographic area in the district;

(c) That has a high growth, as defined by rule of the State Board of Education, of ESL students or bilingual students in any school year; or

(d) That can demonstrate extraordinary need, as defined by rule of the board, for English as a Second Language teachers or training for English as a Second Language teachers.

(4) A school district that receives a grant under this section may use the grant to reimburse teachers for tuition costs associated with completing an English as a Second Language or a bilingual teaching program.

(5) The department may seek and accept gifts, grants and donations from any source and federal funds for the purpose of carrying out the grant program under this section.

(6) The board may adopt any rules necessary for the administration of the grant program. The rules adopted by the board shall include a method for determining the grant amount that a qualified school district may receive under this section. [2001 c.951 §1]

COMMON SCHOOL FUND

327.403 Definition for ORS 327.405 to 327.480. As used in ORS 327.405 to 327.480, unless the context requires otherwise, "administrative office for the county" means the administrative office of the education service district, the county school district, or any common school district which includes an entire county. [1965 c.100 §30; 1991 c.167 §2]

327.405 Common School Fund; composition and use. The Common School Fund shall be composed of the proceeds from the sales of the 16th and 36th sections of every township or of any lands selected in lieu thereof, all the moneys and clear proceeds of all property which may accrue to the state by escheat or forfeiture, the proceeds of all gifts, devises and bequests made by any person to the state for common school purposes, the proceeds of all property granted to the state when the purpose of such grant is not stated, all proceeds of the sale of submerged and submersible lands as described in ORS 274.005, all proceeds of the sale of the South Slough Estuarine Sanctuary as described in ORS 273.553 in the event such property is sold, and all proceeds of the sale of the 500,000 acres of land to which this state is entitled by an Act of Congress approved September 4, 1841, and of all lands selected for capitol building purposes under Act of Congress approved February 14, 1859. All such proceeds shall become a part of the Common School Fund. Except as otherwise provided by law, the income from the Common School Fund shall be applied exclusively to the support and maintenance of common schools in each school district. All lawful claims for repayment of moneys under the provisions of ORS 98.302 to 98.436 and 98.992, or out of escheated estates and for attorney fees and all other expenses in any suit or proceeding relating to escheated estates shall be audited by the Division of State Lands and paid from the Common School Fund Account. [Amended by 1957 c.670 §31; 1965 c.100 §31; 1969 c.338 §3; 1987 c.760 §4; 1997 c.321 §2]

327.410 Apportionment of Distributable Income Account of Common School Fund to counties. The Division of State Lands shall apportion the balance of the Distributable Income Account of the Common School Fund established under ORS 273.105, after deductions authorized by law, among the several counties semiannually commencing on January 1, 1983, or more frequently if the State Land Board so orders, in proportion to the number of children resident therein between the ages of 4 and 20 as determined pursuant to ORS 190.510 to 190.610. The amount apportioned to each county shall, within 30 days, be placed in the custody of the county treasurer, who shall report the same to the administrative office for the county for distribution among the school districts of the county. [Amended by 1965 c.100 §32; 1967 c.421 §200; 1971 c.294 §2; 1982 s.s.2 c.1 §5]

327.415 Apportionment to school districts. Within two weeks after receipt from the Division of State Lands of the county’s share of the Common School Fund, the executive officer of the administrative office for the county shall apportion the fund among the several districts in the county. As soon as any such apportionment has been made, the county treasurer shall draw warrants on the county treasury in favor of the districts for their respective shares, and transmit the warrants to the boards thereof. However, the county treasurer shall not issue or transmit any such warrant to any board until the bond for the person designated as custodian of the funds of the district has been received, examined and approved by the executive officer of the administrative office for the county and filed as a part of the records thereof. [Amended by 1963 c.544 §16; 1965 c.100 §33; 1971 c.294 §1]

327.420 Basis of apportionment. (1) The basis of all apportionments of the Common School Fund shall be the reports of the resident average daily membership for the preceding fiscal year as reported by the district to the administrative office for the county and on file therein at the time of making such apportionments.

(2) In the case of a joint school district, the resident average daily membership reported to the administrative office of the counties comprising the district shall be prorated between the counties as the resident enrollment of the district is prorated between the counties. [Amended by 1965 c.100 §34; 1971 c.294 §3]

327.425 Loans and investment of funds; determination of interest rate. (1) All moneys belonging to the Common School Fund and not required to meet current expenses shall be loaned by the Division of State Lands at a rate of interest fixed by the division except as otherwise specified in ORS 348.050 (3). The division may consult with and obtain the recommendation of the Oregon Investment Council in fixing the interest rate.

(2) Common School Fund moneys may be loaned in accordance with the repayment plan contained in ORS 327.440 and in ORS 348.050 (4), except that loans on property within the corporate limits of towns or cities shall be payable in not more than 15 years on the amortization plan.

(3) If at any time there is a Common School Fund surplus over and above all loans applied for, such portion of the surplus as the division deems proper may be invested as provided in ORS 293.701 to 293.820. The division may require the State Treasurer to deposit any such surplus, until it is able to loan same, in qualified state depositories, upon the same terms and conditions as other public funds are deposited therein, in which event any interest received from any such state depository shall be credited to the fund on which such interest was earned.

(4) Except as provided in ORS 348.050 (3), the division may reduce the rate of interest to be paid upon outstanding loans from the Common School Fund and any trust fund placed in its charge, to correspond with the rate of interest to be paid upon new loans, but no reduction in rate of interest shall be made upon any of the loans until interest at the old rate has been paid in full to date of receipt of remittance at the office of the division. [Amended by 1963 c.326 §2; 1965 c.100 §35; 1965 c.532 §5; 1967 c.335 §38; 1969 c.413 §1; 1983 c.740 §99]

327.430 Security for loans. (1) The principal and interest of all loans shall be paid in lawful money of the United States.

(2) Except for loans to students authorized by ORS 348.050, loans shall be secured by note specifying the fund from which the loan is made and mortgage to the Division of State Lands on improved land within this state, or upon range or grazing land therein. Except as provided in ORS 273.815, the security for a secured loan shall be not less than twice the value of the amount loaned, and, except as otherwise provided in subsection (3) of this section, shall be of unexceptional title and free from all encumbrances. A secured loan may be secured by a deposit of obligations of the United States or of bonds or warrants of this state of a face value of not less than 25 percent in excess of such loans.

(3) The division is not prohibited by subsection (2) of this section from making a secured loan merely because the land securing the loan is:

(a) Situated in an irrigation district, taking into consideration the amount of bonded indebtedness of the district as compared with the valuation of the real property of the district.

(b) Subject to a reservation of mineral rights.

(d) Subject to a statutory lien for public improvements.

(e) Subject to an easement. [Amended by 1955 c.352 §1; 1959 c.90 §1; 1963 c.326 §1; 1963 c.517 §6; 1965 c.229 §1; 1965 c.532 §6]

327.435 Ascertainment of value and title of security. The Division of State Lands shall adopt methods, rules and regulations for ascertaining the value of and state of the title of any lands proposed as security for any loan under the provisions of ORS 327.425 and 327.430. All expenses of ascertaining title shall be borne by the applicant. The division may establish fees to be paid by the applicant for the appraisal of any property offered as security. [Amended by 1965 c.229 §2]

327.440 Loan repayment. Secured loans authorized by ORS 327.430 shall be repaid in semiannual, quarterly or monthly installments, as may mutually be agreed upon between the borrower and the Division of State Lands, and the installments shall aggregate each year an amount equal to one year’s interest on the original principal of the loan plus an additional two percent of the original principal sum, except as provided in ORS 327.425. Of the installment so paid each year, the amount at the specified interest rate on the principal remaining unpaid shall be credited as interest and the balance credited to reduction of the loan principal. Borrowers from the fund shall have the right to make payments in excess of the amounts of such installments, and the further right at any time to pay off such loans in part or full with interest to payment dates. [Amended by 1965 c.532 §7]

327.445 Custody of securities for loan; collection of interest. The Division of State Lands shall have custody of all notes, bonds and other securities covering secured loans made by it from any fund. The division shall take proper measures for the prompt collection of interest due on all loans from any such fund and place it to the credit of the fund from which the loan was made, to be paid out as provided by law. [Amended by 1965 c.532 §8]

327.450 Foreclosure of mortgages given to secure loans. (1) The Division of State Lands shall foreclose all mortgages taken to evidence loans from the Common School Fund or other funds whenever more than one year’s interest on the loan is due and unpaid or whenever any mortgage becomes inadequate security for the money loaned. The division may foreclose its mortgage in the event of waste or any other impairment of the property upon which the loan was made. It may also foreclose for delinquency in payment of principal or interest installments or in payment of taxes on such property.

(2) The division may bid in the land in the name of the state at a price not to exceed the total amount of the state’s claim or they may accept a deed or a release of the equity of redemption. Should it appear to the satisfaction of the division that the mortgagee cannot make the payment of interest and that foreclosure would work an injustice and that foreclosure is not then necessary to secure the fund from loss, the division may extend the time for paying such interest not exceeding two years. [Amended by 1965 c.100 §36]

327.455 Record of purchases by Division of State Lands on foreclosures; resale or lease of land; disposition of proceeds. The Director of the Division of State Lands shall keep a correct record of all purchases on foreclosures under ORS 327.450 with a description of the lands so purchased or acquired, and a statement of the fund to which they belong. Such lands shall be placed in the hands of the director and sold or leased under the direction of the division on the best terms obtainable, and the proceeds, to the amount of the principal of the loans, shall be paid into the fund from which the loans were made, and the excess paid to the interest account of that fund.

327.465 Cancellation of unpaid taxes after deed to state in liquidation of loan. Whenever the Division of State Lands receives a deed to the State of Oregon of lands covered by a mortgage given to secure a loan from the Common School Fund in liquidation of the debt represented by the loan, the division shall send a written notice of the transaction to the county court of the county in which such deeded lands are situated. Upon the receipt of such notice, the county court shall cancel on the county tax records unpaid taxes levied and assessed against such property in that county. This section does not apply to tax liens of irrigation or drainage districts organized prior to the effective date of the lien of the division.

327.470 Cancellation of taxes on land acquired through foreclosure proceedings; right of redemption. (1) Excepting tax liens of irrigation or drainage districts organized before the effective date of the Division of State Lands’ lien whenever the State of Oregon acquires property or lands through foreclosure of a mortgage given to secure a loan from the Common School Fund and the state has received the sheriff’s deed made as a result of such foreclosure proceedings and the period for redemption has expired, the county court, or board of county commissioners, of the county in which such lands are situated shall cancel on the county tax records all the unpaid taxes levied and assessed against the property.

(2) At the time the sheriff issues a certificate of sale in the foreclosure proceedings of any division mortgage, the sheriff shall serve a copy of the certificate upon the county judge, or the chairperson of the board of county commissioners, of the county in which the foreclosure takes place. The county shall have a 60-day period from the date of the sheriff’s certificate in which to redeem the land by paying the division the full amount of its investment in the land, including principal and interest, foreclosure charges, abstracting expense, and any other necessary expense incurred by the division in said foreclosure proceedings.

327.475 When county court may acquire mortgaged lands deeded to state. Whenever the Division of State Lands receives a deed as described in ORS 327.465, the county court of the county in which the lands are situated may, within one year from the recorded date of such deed, acquire from the state the property so conveyed by paying to the state the total amount of the state’s investment in the property.

327.480 Use of Common School Fund moneys to comply with decree canceling fraudulent deed. (1) Where the court decree in a suit instituted by the State of Oregon to cancel and set aside any deed of lands from the State of Oregon alleged to have been procured by fraud and in violation of law grants relief to the State of Oregon which is conditioned on the payment of money, the Division of State Lands may pay from the Common School Fund the sum necessary to comply with the conditions of the decree.

(2) This section shall not be considered as a legislative interpretation relieving the defendants in such suit from applying to the legislature for repayment of the purchase price of such land, or that the State of Oregon is not entitled to an accounting from the purchaser, the assignee, or successor in interest, for school or other lands obtained in violation of law, or that the State of Oregon must repay the purchase price of such lands, with or without interest as a condition of obtaining relief. This section is intended to prevent the loss to the State of Oregon of lands obtained in violation of law, where the court imposes as a condition for granting relief the payment of money. [Amended by 1965 c.100 §37]

327.482 Appropriation to reimburse fund for any loss. Out of the moneys in the General Fund, there is continuously appropriated such sums as are necessary but not to exceed $100,000 in total to reimburse the Common School Fund for any loss which may result from the failure of any student to repay the amounts loaned to the student under ORS 348.050, and for any amount which may result from the failure of loans to earn at least four percent interest. The computation required to determine the interest earned on the loans shall be made annually and the amount required to reimburse the fund shall be paid annually. [1965 c.532 §9; 1967 c.477 §1]

327.483 [1963 c.570 §32a; repealed by 1965 c.100 §456]

327.484 Reimbursement for loss or failure to earn four percent interest. Moneys may be withdrawn periodically from the General Fund by order of the Division of State Lands to be credited to the Common School Fund to reimburse the Common School Fund for any loss which may result from the failure of any student to repay the amounts loaned to the student under ORS 348.050 and annually on July 1 to pay to the Common School Fund any amount resulting from the failure of the total student loans to earn at least four percent interest in the preceding fiscal year. [1965 c.532 §11; 1967 c.335 §39; 1967 c.477 §2]

EDUCATION CASH ACCOUNT

327.485 Education Cash Account; composition; accounting. (1) The Education Cash Account of the General Fund consists of all moneys made available to the Department of Education by:

(a) Charitable and philanthropic foundations, organizations and agencies, which have not been dedicated for specific use by requirements of other sections of Oregon Revised Statutes;

(b) Miscellaneous receipts;

(c) Collection of fees from sale of supplies and publications compiled and furnished by the Department of Education and distributed or sold to other persons or groups;

(d) Funds received as gifts, contributions and bequests for professional technical education and moneys received as reimbursements for funds theretofore expended;

(e) Moneys received through issuance fees from graduate equivalency certificates;

(f) Moneys received through charges to grants, contracts and other funds for indirect costs; and

(g) Any other nondedicated moneys received by the Department of Education for which the Legislative Assembly has established an administrative funds limitation.

(2) The provisions of this section do not relieve the department of its responsibilities to separately account for moneys received as trust funds.

(3) Disbursements from the Education Cash Account shall be made as directed by the Department of Education. The department shall keep a record of all moneys deposited in such account. The record shall indicate by separate cumulative accounts the source from which the moneys are derived and the individual activity against which each withdrawal is charged. [1961 c.588 §1; 1965 c.100 §38; 1979 c.570 §3; 1993 c.45 §302]

327.490 Projects contracted to districts and institutions of higher learning. The State Board of Education may contract with school districts, community college districts and any institutions of higher learning in this state for the purpose of carrying out any phase of a project for which funds granted under ORS 327.485 are available and may reimburse such districts and institutions from such funds. The board may make advance payments to the contracting districts or institutions based on the estimated cost of any service to be provided. Any payment to a district shall not be subject to the provisions of ORS 294.305 to 294.565. [1961 c.588 §5; 1989 c.491 §8]

327.495 Appropriation of funds received for certain purposes. All moneys received by the State Board of Education for distribution to school districts, community college districts and any institutions of higher education in this state for the purpose of carrying out experimental and demonstration programs to improve teaching and teacher education in this state are hereby continuously appropriated for such purpose. [1961 c.588 §6; 1965 c.100 §39; 1989 c.491 §9]

QUALITY EDUCATION COMMISSION

327.497 Legislative findings. The Legislative Assembly finds that:

(1) Within the Oregon Educational Act for the 21st Century in ORS chapter 329 there are established goals for high academic excellence, the application of knowledge and skills to demonstrate achievement and the development of lifelong learning skills to prepare students for the ever-changing world.

(2) Education is increasingly linked to economic and social issues.

(3) The people of Oregon, through section 8, Article VIII of the Oregon Constitution, have established that the Legislative Assembly shall appropriate in each biennium a sum of money sufficient to ensure that the state’s system of public education meets the quality goals established by law. Furthermore, the people of Oregon require that the Legislative Assembly publish a report that either demonstrates that the appropriation is sufficient or identifies the reasons for the insufficiency, its extent and its impact on the ability of the state’s system of public education to meet those goals.

(4) The Quality Education Commission should be established to define the costs sufficient to meet the established quality goals for kindergarten through grade 12 public education. [2001 c.895 §1]

327.500 Commission established; membership; staff. (1) There is established a Quality Education Commission consisting of 11 members appointed by the Governor. No more than five of the members of the commission shall be persons who are employed by a school district at the time of appointment.

(2) The term of office of each member is four years, but a member serves at the pleasure of the Governor. Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on August 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the remainder of the unexpired term.

(3) The appointment of members of the commission is subject to confirmation by the Senate in the manner prescribed in ORS 171.562 and 171.565.

(4) A member of the commission is entitled to compensation and expenses as provided in ORS 292.495.

(5) The Department of Education shall provide staff to the commission. [2001 c.895 §2]

Note: Section 3, chapter 895, Oregon Laws 2001, provides:

Sec. 3. Notwithstanding the term of office specified by section 2 of this 2001 Act [327.500], of the members first appointed to the Quality Education Commission:

(1) Three shall serve for terms ending August 1, 2002.

(2) Four shall serve for terms ending August 1, 2003.

(3) Four shall serve for terms ending August 1, 2004. [2001 c.895 §3]

327.502 Commission officers; quorum; meetings. (1) The Governor shall select one of the members of the Quality Education Commission as chairperson and another as vice chairperson, for such terms and with duties and powers necessary for the performance of the functions of those offices as the Governor determines.

(2) A majority of the members of the commission constitutes a quorum for the transaction of business.

(3) The commission shall meet at times and places specified by the call of the chairperson or of a majority of the members of the commission. [2001 c.895 §4]

327.505 [Repealed by 1965 c.100 §456]

327.506 Quality education goals; commission duties; report. (1) The quality goals for the state’s system of kindergarten through grade 12 public education include those established under ORS 329.007, 329.015, 329.025, 329.035, 329.045, 329.065, 329.465, 329.475 and 329.487.

(2) Each biennium the Quality Education Commission shall determine the amount of moneys sufficient to ensure that the state’s system of kindergarten through grade 12 public education meets the quality goals.

(3) In determining the amount of moneys sufficient to meet the quality goals, the commission shall identify best practices that lead to high student performance and the costs of implementing those best practices in the state’s kindergarten through grade 12 public schools. Those best practices shall be based on research, data, professional judgment and public values.

(4) Prior to August 1 of each even-numbered year, the commission shall issue a report to the Governor and the Legislative Assembly that identifies:

(a) Current practices in the state’s system of kindergarten through grade 12 public education, the costs of continuing those practices and the expected student performance under those practices; and

(b) The best practices for meeting the quality goals, the costs of implementing the best practices and the expected student performance under the best practices.

(5) In addition, the commission shall provide in the report issued under subsection (4) of this section at least two alternatives for meeting the quality goals. The alternatives may use different approaches for meeting the quality goals or use a phased implementation of best practices for meeting the quality goals. [2001 c.895 §5]

327.510 [Repealed by 1965 c.100 §456]

MISCELLANEOUS

(Budget and Accounting System)

327.511 Uniform budget and accounting system required. (1) The State Board of Education shall adopt by rule a uniform budget and accounting system for school districts and education service districts.

(2) The uniform budget and accounting system shall include uniform definitions for a chart of accounts that shall allow for valid comparisons of expenditures among schools and among districts. The uniform definitions for the chart of accounts shall be developed by the Department of Education in consultation with the Legislative Revenue Officer, the Legislative Fiscal Officer, the Oregon Department of Administrative Services and appropriate organizations that represent kindergarten through grade 12 educational interests.

(3) The uniform budget and accounting system shall allow for the gathering of data on separate functions and programs, including but not limited to:

(a) Individual school;

(b) Grade level;

(d) Class size; and

(e) Extracurricular activities.

(4) The Department of Education shall place data gathered from the uniform budget and accounting system in a database that includes information that is accessible by the public through the Internet, a personal computer or other similar technology. [1997 c.616 §1]

327.515 [Repealed by 1965 c.100 §456]

(Commodity Programs)

327.520 Acceptance and distribution of donated commodities to schools. The Department of Education may accept and distribute donated commodities available for either public or private nonprofit educational institutions, subject to state or federal law or regulation relating to such acceptance and distribution. The department shall make a charge sufficient to cover but not exceed all costs of distribution to the individual schools. The charge may include administrative expenses, freight, warehousing, storing, processing and transshipment to the end that all participating schools shall receive such donated commodities at the same unit cost irrespective of location of the school with respect to the original point of delivery within the state. [Amended by 1989 c.491 §10]

327.523 [1975 c.87 §1; repealed 1981 c.784 §38]

327.525 School Lunch Revolving Account. The School Lunch Revolving Account, separate and distinct from the General Fund, is continuously appropriated for the purposes of ORS 327.520. All money received under the provisions of ORS 327.520 shall be paid by the Department of Education to the State Treasurer for credit to the School Lunch Revolving Account. Interest earned by the account shall be credited to the account. [Amended by 1965 c.100 §40; 1975 c.87 §2; 1981 c.784 §21; 1989 c.491 §11; 1989 c.966 §26]

327.530 [Repealed by 1965 c.100 §456]

327.535 School breakfast program; waiver; district election based on federal funding. (1) Subject to subsections (2) and (3) of this section, any school district that provides lunch at any school site shall make breakfasts accessible if 25 percent or more of the students at the site are eligible for free or reduced price lunches under the United States Department of Agriculture’s current Income Eligibility Guidelines or the school site qualifies for assistance under Chapter I of Title I of the federal Elementary and Secondary Act of 1965.

(2) The school district may apply to the State Board of Education for a waiver for all or for particular grade levels if it is financially unable to implement a breakfast program. The state board may grant a waiver to the school district for a period not to exceed two years, after which the school district must reestablish its claim of financial hardship if the waiver is to be extended.

(3) If the per meal federal reimbursement for the free and reduced price breakfast program falls below the 1991 reimbursement levels, a school district may elect to discontinue the program until federal funding is restored to those levels. No waiver is required for such election. [1991 c.500 §1]

327.555 [1953 c.273 §2; repealed by 1959 c.654 §3]

327.560 [1953 c.273 §3; repealed by 1959 c.654 §3]

327.565 [1953 c.273 §4; repealed by 1959 c.654 §3]

327.570 [1953 c.273 §5; repealed by 1959 c.654 §3]

327.575 [1953 c.273 §6; repealed by 1959 c.654 §3]

327.605 [Amended by 1959 c.654 §1; 1961 c.624 §5; repealed by 1965 c.100 §456]

327.610 [Repealed by 1965 c.100 §456]

(Federal Aid to Education)

327.615 State Treasurer as trustee of funds. The State Treasurer shall serve as trustee of any federal aid to education funds apportioned to the State of Oregon.

327.620 Review of accounts affecting federal funds. The Oregon Department of Administrative Services shall cause a review to be made of the accounts and financial affairs of the State Board of Education, the Superintendent of Public Instruction and the Department of Education affecting any funds acquired from the federal government to aid education, in the same manner and under the same conditions as provided by law for the review of state departments and institutions. [Amended by 1975 c.614 §10; 1989 c.491 §12]

327.625 [Repealed by 1965 c.100 §456]

327.630 [Amended by 1961 c.624 §6; repealed by 1965 c.100 §456]

327.635 Labor standards required on federally financed school construction. The Superintendent of Public Instruction shall provide, in the construction of school facilities financed in part through federal grants, for the enforcement of labor standards not less beneficial to employees on such projects than those required under sections 1 and 2 of the Act of Congress of August 30, 1935, as amended.

327.640 [Repealed by 1965 c.100 §456]

(Financing of State and Federal Requirements)

327.645 Financing of programs mandated by state and federal programs. The Legislative Assembly recognizes that:

(1) Various programs adopted by the Legislative Assembly and by various state and federal agencies have fiscal and revenue impact on school districts.

(2) To the greatest extent possible, state government should pay an appropriate share of expenses incurred by the districts as the result of mandates from the Legislative Assembly and state agencies. [1989 c.970 §1]

327.655 [Amended by 1961 c.624 §7; repealed by 1965 c.100 §456]

327.660 [1963 c.570 §2; 1965 c.100 §41; 1983 c.740 §100; repealed by 1985 c.388 §3]

EDUCATION LOTTERY BOND PROGRAM

327.700 Definitions for ORS 327.700 to 327.711. As used in ORS 327.700 to 327.711, unless the context requires otherwise:

(1) "State education lottery bonds" means the bonds authorized to be issued under ORS 327.711 for the purpose of financing state education projects.

(2) "State education projects" means projects for instructional training and the acquisition, construction, improvement, remodeling, maintenance or repair of public school facilities in the State of Oregon, including but not limited to land, site preparation costs, permanent or portable buildings and equipment, telecommunications equipment, computers, software and related technology, textbooks, library books, furniture and furnishings, vehicles, costs of planning for bond issues and capital improvements, the payment of debt service on obligations, other than general obligation bonds, issued for such projects and holding in reserve for any of the purposes described in this subsection. [1997 c.612 §3; 1999 c.44 §10; 1999 c.1066 §13]

327.705 Purpose of ORS 327.700 to 327.711. The Legislative Assembly declares that the purpose of ORS 327.700 to 327.711 is to authorize lottery bonds for state education projects. The lottery bonds authorized by ORS 327.700 to 327.711 shall be issued pursuant to ORS 286.560 to 286.580 and 348.716. The obligation of the State of Oregon with respect to the lottery bonds and with respect to any grant agreement or other commitment authorized by ORS 327.700 to 327.711, 327.731, 348.696 and 777.277 shall at all times be restricted to the availability of unobligated net lottery proceeds, proceeds of lottery bonds and any other amounts specifically committed by ORS 286.560 to 286.580 and 348.716. Neither the faith and credit of the State of Oregon nor any of its taxing power shall be pledged or committed to the payment of lottery bonds or any other commitment of the State of Oregon authorized by ORS 327.700 to 327.711. [1997 c.612 §1; 1999 c.44 §11]

327.708 Legislative findings. The Legislative Assembly finds that:

(1) The financing of the costs of state education projects accomplishes the purpose of financing public education in Oregon, as well as having the additional effect of creating jobs and furthering economic development in Oregon by:

(a) Maintaining and increasing the utility, effectiveness and capacity of public education facilities and public education technology and ensuring their availability to Oregon students; and

(b) Creating employment opportunities in this state through the funding of capital improvement and maintenance projects on which workers will be employed.

(2) Based on the findings made in this section, the use of the net proceeds from the operation of the Oregon State Lottery to fund state education projects and to pay state education lottery bonds is an appropriate use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510. [1997 c.612 §2; 1999 c.44 §12]

327.711 Payment of debt service; issuance of bonds; School Capital Construction, Maintenance and Technology Fund established. (1) The Legislative Assembly may pay state education lottery bond debt service after the 1997-1999 biennium from earnings on the Education Endowment Fund. However, no lien or pledge of those earnings shall be made to secure the lottery bonds, and the State of Oregon shall have no legal obligation to pay the lottery bonds from the earnings on the Education Endowment Fund. Any earnings from the Education Endowment Fund that are provided by the Legislative Assembly and credited to the Lottery Bond Fund shall be credited against, and shall reduce, the unobligated net lottery proceeds that are required by ORS 286.576 (2)(a) and (b) subsequently to be credited to the Lottery Bond Fund in that fiscal year.

(2) State education lottery bonds shall be issued only at the request of the Superintendent of Public Instruction. State education lottery bonds may be issued in an amount sufficient to provide no more than $150 million of net proceeds to pay costs of state education projects, plus the amounts required for bond-related costs.

(3) The School Capital Construction, Maintenance and Technology Fund is established in the State Treasury, separate and distinct from the General Fund. The net proceeds from the sale of the state education lottery bonds that are available to pay costs of state education projects shall be credited to the School Capital Construction, Maintenance and Technology Fund. Investment earnings received on amounts in the School Capital Construction, Maintenance and Technology Fund shall be credited to the School Capital Construction, Maintenance and Technology Fund. All moneys from time to time credited to the School Capital Construction, Maintenance and Technology Fund, including any investment earnings, are appropriated continuously to the Department of Education only for distribution to school districts pursuant to ORS 327.731 and for payment of the bond-related costs that are allocable to state education lottery bonds. Amounts in the School Capital Construction, Maintenance and Technology Fund shall be disbursed upon the written request of the Superintendent of Public Instruction to school districts for state education projects pursuant to ORS 327.731, and upon the written request of the Director of the Oregon Department of Administrative Services to pay for bond-related costs that are allocable to state education lottery bonds. [1997 c.612 §4; 1999 c.44 §13]

327.715 [1997 c.612 §5; repealed by 1999 c.44 §29]

327.718 [1997 c.612 §6; repealed by 1999 c.44 §29]

327.721 [1997 c.612 §7; repealed by 1999 c.44 §29]

327.724 [1997 c.612 §§8,8a; repealed by 1999 c.44 §29]

327.727 [1997 c.612 §8c; repealed by 1999 c.44 §29]

327.731 Education project grants; use; amount. (1) Subject to rules of the State Board of Education, the Superintendent of Public Instruction shall distribute a share of moneys in the School Capital Construction, Maintenance and Technology Fund to school districts as education project grants. The education project grants shall be distributed in one payment each distribution year. The education project grants shall be used for any state education project, as defined in ORS 327.700.

(2) Each school district’s education project grant = the district’s extended ADMw for the distribution year ´ (the total amount available for the grants in each distribution year ¸ the total statewide extended ADMw in the distribution year).

(3) Each school district shall deposit the amounts it receives as an education project grant in a separate account, and shall apply amounts in that account to pay for costs of state education projects or shall hold amounts in that account in reserve and apply them to pay costs of future state education projects.

(4) School districts receiving education project grants from the School Capital Construction, Maintenance and Technology Fund shall, if so directed by the Oregon Department of Administrative Services, take any action specified by the Oregon Department of Administrative Services that is necessary to maintain the excludability of lottery bond interest from gross income under the United States Internal Revenue Code. [1997 c.612 §14; 1999 c.1066 §14]

327.736 [1997 c.874 §1; repealed by 1999 c.44 §29]

327.990 [Amended by 1957 c.626 §5; repealed by 1965 c.100 §456]