Oregon Statute | Act | Code |Title 30 Education And Culture| US Code - US Statute | Chapter 327 State Financing Of Elementary And Secondary Education

As used in ORS 327.006 to 327.133, 327.348,
327.355, 327.357, 327.360 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] (1) There is
established a State School Fund in the General Fund. The fund shall
consist of moneys appropriated by the Legislative Assembly and moneys
transferred from the Education Stability Fund. The State School Fund is
continuously appropriated to the Department of Education for the purposes
of ORS 327.006 to 327.077, 327.095, 327.099, 327.101, 327.125, 327.137,
327.348, 327.355, 327.357, 327.360, 336.575, 336.580, 336.635, 342.173,
343.243, 343.533 and 343.961.

(2) There shall be apportioned from the State School Fund to each
school district a State School Fund grant, consisting of the positive
amount equal to a general purpose grant and a facility grant and a
transportation grant and a high cost disabilities grant minus local
revenue, computed as provided in ORS 327.013.

(3) There shall be apportioned from the State School Fund to each
education service district a State School Fund grant as calculated under
ORS 327.019.

(4) All figures used in the determination of the distribution of
the State School Fund shall be estimates for the same year as the
distribution occurs, unless otherwise specified.

(5) Numbers of students in average daily membership used in the
distribution formula shall be the numbers as of June of the year of
distribution.

(6) A school district may not use the portion of the State School
Fund grant that is attributable to the facility grant for capital
construction costs.

(7) The total amount of the State School Fund that is distributed
as facility grants may not exceed $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.

(8) Each fiscal year, the Department of Education shall transfer
the amount of $12 million from the State School Fund to the High Cost
Disabilities Account established in ORS 327.348.

(9) Each fiscal year, the Department of Education shall transfer
the amount of $2.5 million from the State School Fund to the Small School
District Supplement Fund established in ORS 327.360. [1991 c.780 §3; 1993
c.61 §4; 1997 c.524 §3; 1997 c.821 §13; 1999 c.1066 §10; 2001 c.695
§§12,13; 2002 s.s.3 c.6 §§13,14; 2003 c.715 §§4,5,7; 2005 c.803 §6]Note: The amendments to 327.008 by section 6a, chapter 803, Oregon
Laws 2005, become operative July 1, 2007. See section 6b, chapter 803,
Oregon Laws 2005. The text that is operative on and after July 1, 2007,
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 transferred from the Education Stability
Fund. The State School Fund is continuously appropriated to the
Department of Education for the purposes of ORS 327.006 to 327.077,
327.095, 327.099, 327.101, 327.125, 327.137, 327.348, 327.355, 327.357,
327.360, 336.575, 336.580, 336.635, 342.173, 343.243, 343.533 and 343.961.

(2) There shall be apportioned from the State School Fund to each
school district a State School Fund grant, consisting of the positive
amount equal to a general purpose grant and a facility grant and a
transportation grant and a high cost disabilities grant minus local
revenue, computed as provided in ORS 327.013.

(3) There shall be apportioned from the State School Fund to each
education service district a State School Fund grant as calculated under
ORS 327.019.

(4) All figures used in the determination of the distribution of
the State School Fund shall be estimates for the same year as the
distribution occurs, unless otherwise specified.

(5) Numbers of students in average daily membership used in the
distribution formula shall be the numbers as of June of the year of
distribution.

(6) A school district may not use the portion of the State School
Fund grant that is attributable to the facility grant for capital
construction costs.

(7) The total amount of the State School Fund that is distributed
as facility grants may not exceed $25 million in any biennium. If the
total amount to be distributed as facility grants exceeds this
limitation, the Department of Education shall prorate the amount of funds
available for facility grants among those school districts that qualified
for a facility grant.

(8) Each fiscal year, the Department of Education shall transfer
the amount of $12 million from the State School Fund to the High Cost
Disabilities Account established in ORS 327.348.

(9) Each fiscal year, the Department of Education shall transfer
the amount of $2.5 million from the State School Fund to the Small School
District Supplement Fund established in ORS 327.360.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 may not be included in the
calculation of the 11 percent.

(B) 0.5 for each student in average daily membership eligible for
and enrolled in an English as a second language program under ORS 336.079.

(C) 0.2 for each student in average daily membership enrolled in a
union high school district or in an area of a unified school district
where the district is only responsible for educating students in grades 9
through 12 in that area.

(D) -0.1 for each student in average daily membership enrolled in
an elementary district operating kindergarten through grade 6 or
kindergarten through grade 8 or in an area of a unified school district
where the district is only responsible for educating students in
kindergarten through grade 8.

(E) 0.25 times the sum of the following:

(i) The number of children 5 to 17 years of age in poverty families
in the district, as determined by the Department of Education from a
report of the federal Department of Education based on the most recent
federal decennial census, as adjusted by the school district’s proportion
of students in the county receiving free or reduced price lunches under
the United States Department of Agriculture’s current Income Eligibility
Guidelines if the number is higher than the number determined from census
data and only if the school district had an average daily membership of
2,500 or less for the 1995-1996 school year, and as further adjusted by
the number of students in average daily membership in June of the year of
distribution divided by number of students in average daily membership in
the district, or its predecessors, in June of the year of the most recent
federal decennial census;

(ii) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to the
federal Department of Education, “Annual Statistical Report on Children
in Foster Homes and Children in Families Receiving AFDC Payments in
Excess of the Poverty Income Level,” or its successor, for October 31 of
the year prior to the year of distribution; and

(iii) The number of children in the district in state-recognized
facilities for neglected and delinquent children, based on information
from the Department of Human Services for October 31 of the year prior to
the year of distribution.

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

(G) All numbers of children used for the computation in this
section must reflect any district consolidations that have occurred since
the numbers were compiled.

(b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of students
described in paragraph (a)(E) and (F) of this subsection shall not exceed
2.0.

(8) High cost disabilities grant = the total amount received by a
school district under ORS 327.348, for providing special education and
related services to resident pupils with disabilities.

(9)(a) Transportation grant equals:

(A) 70 percent of approved transportation costs for those school
districts ranked below the 80th percentile under paragraph (b) of this
subsection.

(B) 80 percent of approved transportation costs for those school
districts ranked in or above the 80th percentile but below the 90th
percentile under paragraph (b) of this subsection.

(C) 90 percent of approved transportation costs for those school
districts ranked in or above the 90th percentile under paragraph (b) of
this subsection.

(b) Each fiscal year, the Department of Education shall rank school
districts based on the approved transportation costs per ADM of each
school district, ranking the school district with the highest approved
transportation costs per ADM at the top of the order.

(10) Local Revenues are the total of the following:

(a) The amount of revenue offset against local property taxes as
determined by the Department of Revenue under ORS 311.175 (3)(a)(A);

(b) The amount of property taxes actually received by the district
including penalties and interest on taxes;

(c) The amount of revenue received by the district from the Common
School Fund under ORS 327.403 to 327.410;

(d) The amount of revenue received by the district from the county
school fund;

(e) The amount of revenue received by the district from the 25
percent of federal forest reserve revenues required to be distributed to
schools by ORS 294.060 (1);

(f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);

(g) Moneys received in lieu of property taxes;

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

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

(j) Any amount distributed to the district in the prior fiscal year
under section 4 (3), chapter 695, Oregon Laws 2001, or ORS 327.019 (8).

(11) Notwithstanding subsection (10) of this section, Local
Revenues do not include, if a school district imposes local option taxes
pursuant to ORS 280.040 to 280.145, an amount equal to the lesser of:

(a) The amount of revenue actually received by the district from
local option taxes imposed pursuant to ORS 280.040 to 280.145;

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

(c) $750 per district extended ADMw.

(12)(a) Facility Grant = 8 percent of total construction costs of
new school buildings.

(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.

(c) As used in this subsection:

(A) “New school building” includes new school buildings, adding
structures onto existing school buildings and adding premanufactured
structures to a school district if those buildings or structures are to
be used for instructing students.

(B) “Construction costs” does not include costs for land
acquisition. [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 §§25,26,30; 1999 c.1094 §5; 2001 c.670
§§10,12; 2001 c.695 §§15,17,20,23; 2003 c.715 §§8,10,13; 2005 c.803 §7](1) As used in this section:

(a) “Education service district extended ADMw” means the sum of the
extended ADMw of the component school districts of the education service
district as computed under ORS 327.013.

(b) “Local revenues of an education service district” means the
total of the following:

(A) The amount of revenue offset against local property taxes as
determined by the Department of Revenue under ORS 311.175 (3)(a)(A);

(B) The amount of property taxes actually received by the district
including penalties and interest on taxes;

(C) The amount of revenue received by the district from
state-managed forestlands under ORS 530.115 (1)(b) and (c); and

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

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

(3)(a) Each fiscal year, the superintendent shall calculate the
total amount appropriated or allocated to the State School Fund and
available for distribution to school districts, education service
districts and programs + total amount of local revenues of all school
districts, computed as provided in ORS 327.013, + total amount of local
revenues of all education service districts. The superintendent may not
include in the calculation under this paragraph amounts recovered by the
Department of Education from the State School Fund under ORS 343.243.

(b) The superintendent shall multiply the amount calculated under
paragraph (a) of this subsection by 95.25 percent.

(c) Based on the amount calculated under paragraph (b) of this
subsection, the superintendent shall calculate a funding percentage to
distribute as nearly as practicable under ORS 327.006 to 327.133,
327.348, 327.355, 327.357 and 327.360 the total amount calculated under
paragraph (b) of this subsection as school district general purpose
grants, facility grants, high cost disabilities grants and transportation
grants to school districts.

(d) Based on the funding percentage calculated under paragraph (c)
of this subsection, the superintendent shall calculate the general
purpose grant, facility grant, transportation grant and high cost
disabilities grant amounts for each school district.

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

(a) Total amount calculated under subsection (3)(d) of this section
for the component school districts of the education service district ´
(4.75 :SPLIT 95.25); or

(b) $950,000.

(5) Subject to subsection (6) of this section, the State School
Fund grant for an education service district = general services grant
:MINUS 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; 2003 c.715 §16; 2005 c.803 §8; 2005 c.828 §1]Note: The amendments to 327.019 by section 1, chapter 828, Oregon
Laws 2005, become operative July 1, 2006. See section 2a, chapter 828,
Oregon Laws 2005. The text that is operative until July 1, 2006, is set
forth for the user’s convenience.

327.019. (1) As used in this section:

(a) “Education service district extended ADMw” means the sum of the
extended ADMw of the component school districts of the education service
district as computed under ORS 327.013.

(b) “Local revenues of an education service district” means the
total of the following:

(A) The amount of revenue offset against local property taxes as
determined by the Department of Revenue under ORS 311.175 (3)(a)(A);

(B) The amount of property taxes actually received by the district
including penalties and interest on taxes;

(C) The amount of revenue received by the district from
state-managed forestlands under ORS 530.115 (1)(b) and (c); and

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

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

(3)(a) Each fiscal year, the superintendent shall calculate the
total amount appropriated or allocated to the State School Fund and
available for distribution to school districts, education service
districts and programs + total amount of local revenues of all school
districts, computed as provided in ORS 327.013, + total amount of local
revenues of all education service districts. The superintendent may not
include in the calculation under this paragraph amounts recovered by the
Department of Education from the State School Fund under ORS 343.243.

(b) The superintendent shall multiply the amount calculated under
paragraph (a) of this subsection by 95 percent.

(c) Based on the amount calculated under paragraph (b) of this
subsection, the superintendent shall calculate a funding percentage to
distribute as nearly as practicable under ORS 327.006 to 327.133,
327.348, 327.355, 327.357 and 327.360 the total amount calculated under
paragraph (b) of this subsection as school district general purpose
grants, facility grants, high cost disabilities grants and transportation
grants to school districts.

(d) Based on the funding percentage calculated under paragraph (c)
of this subsection, the superintendent shall calculate the general
purpose grant, facility grant, transportation grant and high cost
disabilities grant amounts for each school district.

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

(a) 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
:MINUS 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.(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] 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](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] (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]
(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](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](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.

(c) Six grades is below 168.

(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))} ´0.0045 ´ 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))} ´0.0029 ´ ADMa.

(6) The distance adjustment for an elementary school = 0.025 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)(a) Notwithstanding subsections (2), (5) and (7)(b) and (d) of
this section, if two high schools merge and prior to the merger at least
one of the high schools qualified as a small high school under this
section, the Department of Education shall continue to add an additional
amount pursuant to subsection (5) of this section to the ADMw of the
school district in which the new merged high school is located that is
equal to the higher of:

(A) The additional amount the school district of each of the former
small high schools would have received under this section for the small
high school based on the ADMa of each of the high schools prior to the
merger; or

(B) In the case of a high school that remains qualified as a small
high school under subsection (2) of this section after a merger, the ADMa
of the merged small high school.

(b) The department shall add the additional amount under this
subsection only for the first four fiscal years after the merger of the
two high schools is final. If the merger of the two high schools becomes
final on or before September 1, for purposes of this paragraph the merger
shall be considered final in the prior fiscal year.

(10) 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; 2003 c.715 §32]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] (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](1) Funds due school districts under ORS 327.008 and 327.013
shall be paid approximately 16-2/3 percent on July 15, approximately
eight and one-third percent on the 15th day of each of the months of
August, September, October, November, December, January, February, March
and April and the balance on May 15. An equitable apportionment based on
the most recent data available shall be made on the installment dates
prior to May 15. If such payments are too high or too low, appropriate
adjustments shall be made in the May 15 payments. However, if the reports
required by ORS 327.133 have not been received from any district when
due, no further apportionments shall be made to such district until such
reports are filed.

(2) If the combined estimated level of ADMw under ORS 327.013 (7)
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; 2002 s.s.1 c.4 §1; 2002 s.s.4 c.1 §1] 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] (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 and the projected level of
those same local revenues used to calculate the State School Fund
apportionment to the district. The adjustment shall be incorporated in
the May 15 apportionment to the district in the distribution year.

(2) The department shall adjust the May 15 apportionment to a
school district in the distribution year to reflect an ADMw of the
district equal to the higher of the ADMw of the prior year or the
adjusted ADMw for the December quarter. Adjusted ADMw for the December
quarter shall equal:

(a) ADMw as determined by the department from information provided
in the December quarterly report for the current distribution year filed
with the department under ORS 327.133;

(b) Multiplied by the lesser of 1.0 or the average of the ratios
for the preceding two years of the ADM for the year ending June 30 to the
ADM for the quarter ending December 31 for the same school year as filed
under ORS 327.133.

(3) The sum equal to the sum of all negative adjustments made to
the May 15 apportionment under subsection (1) of this section shall be
used by the department for purposes of funding positive adjustments
required under subsection (1) of this section and adjustments required
under subsection (2) of this section.

(4) The department shall also set aside an amount of the funds
appropriated to the State School Fund for the fiscal year to fund any
positive adjustments required under subsection (1) of this section and
adjustments required under subsection (2) of this section in excess of
the amount available under subsection (3) of this section. The amount set
aside shall be as determined by law.

(5) If the amounts available under subsections (3) and (4) of this
section are either not sufficient to fund the positive adjustments or
exceed the positive adjustments to districts required under subsections
(1) and (2) of this section and the adjustments required under subsection
(2) of this section, the Superintendent of Public Instruction shall
recalculate the funding percentage in ORS 327.013 (2) to distribute as
nearly as practicable the total sum available for distribution. [1991
c.780 §12; 1993 c.61 §7; 2003 c.715 §24; 2005 c.755 §19] (1) Each
fiscal year, the distribution to a school district under ORS 327.008 and
327.013 shall be adjusted to fully reflect the difference between the
apportionment due to the district for the prior fiscal year under ORS
327.008 and 327.013, and the amounts actually distributed to the district
in the prior fiscal year under ORS 327.008, 327.013 and 327.099. The
adjustment shall be made to the May 15 apportionment to the district.

(2) No consideration shall be made in the adjustment made under
subsection (1) of this section for any penalties, forfeitures or
additional receipts of State School Fund moneys, except when expressly
directed by law.

(3) An amount of funds equal to the sum of all negative adjustments
made to the May 15 apportionment under subsection (1) of this section
shall be used by the Department of Education for purposes of funding
positive adjustments required under subsection (1) of this section in the
same fiscal year.

(4) If the amounts available under subsection (3) of this section
are either not sufficient or exceed the adjustments to districts required
under subsection (1) of this section, the Superintendent of Public
Instruction shall recalculate the funding percentage in ORS 327.013 (2)
to distribute as nearly as practicable the total sum available for
distribution. [1991 c.780 §13; 1993 c.61 §8; 2005 c.209 §4; 2005 c.755
§20](1) All school districts are presumed to maintain a standard
school district until the school district 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 school 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)(a) 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 contact the
school district and offer technical assistance. 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.

(b) Notwithstanding paragraph (a) of this subsection, if the
superintendent determines that the reason for the deficiencies is
primarily the lack of adequate funds, the superintendent may allow an
extension of time that exceeds 12 months based on criteria adopted by the
State Board of Education. Based on the rules of the State Board of
Education, the superintendent shall provide oversight to a school
district that is granted an extension of time under this paragraph.

(c) Notwithstanding paragraphs (a) and (b) of this subsection, the
superintendent may not grant an extension of time if it is possible for a
district to correct the deficiency through merger.

(d) For the period of the extension of time under this subsection,
the school district shall be considered a conditionally standard school
district.

(e) The State Board of Education shall adopt by rule:

(A) Criteria for determining when to grant an extension of time
under paragraph (b) of this subsection; and

(B) The method of oversight to be provided by the superintendent
over a school district that is granted an extension of time under
paragraph (b) of this subsection.

(4) Any school 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 granted an extension of time in which to comply.
[Formerly 327.032; 1989 c.491 §5; 1991 c.693 §32; 1995 c.660 §47a; 2003
c.390 §1]Note: The amendments to 327.103 by section 3, chapter 390, Oregon
Laws 2003, become operative July 1, 2007. See section 4, chapter 390,
Oregon Laws 2003. The text that is operative on and after July 1, 2007,
is set forth for the user’s convenience.

327.103. (1) All school districts are presumed to maintain a
standard school district until the school district 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 school 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)(a) 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 contact the
school district and offer technical assistance. 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.

(b) Notwithstanding paragraph (a) of this subsection, the
superintendent may not grant an extension of time if it is possible for a
district to correct the deficiency through merger.

(c) For the period of the extension of time under this subsection,
the school district shall be considered a conditionally standard school
district.

(4) Any school 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 granted an extension of time in which to comply.Note: Section 5, chapter 390, Oregon Laws 2003, provides:

Sec. 5. The Superintendent of Public Instruction may not grant an
extension of time under ORS 327.103 (3)(b) that allows a school district
to be deficient on or after July 1, 2007. [2003 c.390 §5](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.(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
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 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

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

(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 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 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 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 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; 2005 c.209 §5] 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.The
Superintendent of Public Instruction shall administer the provisions of
ORS 327.006 to 327.133, 327.348, 327.355, 327.357, 327.360 and 327.731.
The State Board of Education shall adopt all necessary rules not
inconsistent with ORS 327.006 to 327.133, 327.348, 327.355, 327.357,
327.360 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] (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]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, 327.348, 327.355, 327.357,
327.360, 327.731, 328.542 and 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; 2005 c.209 §6](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

(c) An additional five percent in the third year of operation as a
common school district.

(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] (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

(c) An additional five percent in the third year of operation of
the merged district.

(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 §2](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]GRANTS TO SCHOOL DISTRICTS AND PROGRAMS(School Improvement Grants) 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] (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](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;

(c) Professional development;

(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) 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;
2005 c.22 §231](Construction and Maintenance of Public School Facilities Grant) 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] 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] 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](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](Local Option Equalization Grants) 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] (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.

(c) “School district” means a common or union high school district.

(d) “Target district” means the school district that, for the
fiscal year prior to the year for which grants are being determined, had
a total assessed value of taxable property per district extended ADMw
that was greater than all but 25 percent of the school districts in this
state for that prior fiscal year. The Department of Education shall
determine which school district is the target district for a fiscal year,
based on the total assessed values of school districts reported to the
Department of Education by the Department of Revenue for the fiscal year
prior to the year for which grants are being determined under this
section.

(2) A school district shall receive a local option equalization
grant for a fiscal year:

(a) In which the school district imposes local option taxes
pursuant to ORS 280.040 to 280.145; and

(b) For which the total assessed value of taxable property per
extended ADMw of the school district for the prior fiscal year does not
exceed the total assessed value of taxable property per extended ADMw of
the target district for the prior fiscal year.

(3) The amount of the local option equalization grant shall equal
the lesser of:

(a) The product of the local option tax rate of the school district
for the current fiscal year ´ (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) Fifteen percent of the combined total for the school district
of the general purpose grant, the transportation grant, the facility
grant and the high cost disabilities grant of the school district for the
current fiscal year; or

(B) $750 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; 2003 c.715
§§21,22; 2005 c.803 §9]
(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)(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](High Cost Disabilities Grants)(1) There is established within the State School Fund a High Cost
Disabilities Account.

(2) Each fiscal year, the Department of Education shall distribute
moneys from the account to school districts as high cost disabilities
grants. A school district may receive moneys from the account if the
school district has a resident pupil with disabilities for whom the
approved costs to the school district of providing special education and
related services, as determined under subsection (4) of this section,
exceed $30,000.

(3) The amount of moneys received by a school district under this
section for each resident pupil with disabilities shall equal the
approved costs, as determined under subsection (4) of this section,
incurred by the school district in providing special education and
related services to the pupil minus $30,000.

(4) The department shall determine the approved costs incurred by a
school district in providing special education and related services to a
pupil with disabilities. The approved costs incurred by a school district
may include costs incurred by an education service district of providing
special education and related services to the school district through the
resolution process described in ORS 334.175. In determining the approved
costs for which a school district may receive moneys under this section,
the department shall consider:

(a) How efficiently the special education and related services are
provided by the school district; and

(b) The use of available resources by the school district.

(5) If the total approved costs for which school districts are
seeking moneys from the account exceed the amount in the account in any
fiscal year, the department shall prorate the amount of moneys available
for distribution in the account among those school districts that are
eligible for moneys from the account.

(6) The department shall distribute any moneys in the account that
are not distributed under this section in any fiscal year to school
districts based on ORS 327.008 and 327.013.

(7) The State Board of Education may adopt any rules necessary for
the administration of this section. [2005 c.803 §2](Small School District Grants) As used in this section and
ORS 327.357:

(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. [2005 c.803 §4] (1) In addition to
those moneys distributed through the State School Fund, 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.

(2) The amount of each grant = the small high school’s ADM ´ (the
total amount available for the grants in each fiscal year ¸ the total ADM
of all small high schools).

(3) A small school district shall receive a grant under this
section for each small high school operated by the school district.

(4) The State Board of Education shall adopt any rules necessary
for the administration of this section. [2005 c.803 §5] (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 ORS 327.357. [2005 c.803 §3](Defibrillator Grants) (1) As used
in this section, “public school facility” means a building or
premanufactured structure used by a school district or public charter
school to provide educational services to children.

(2) In addition to those moneys distributed through the State
School Fund, the Department of Education may award grants to school
districts and public charter schools to provide automated external
defibrillators in public school facilities.

(3) The goal of the grant program is to provide automated external
defibrillators in at least two public school facilities in each school
district.

(4) Each school district and public charter school may apply for a
grant under this section. The amount of any grant received by a school
district or public charter school under this section may not exceed 60
percent of the actual costs for which grant funds may be used under
subsection (5) of this section.

(5) Any school district or public charter school that receives
grant funds under this section shall use the funds for:

(a) Purchasing or leasing automated external defibrillators to be
placed in public school facilities;

(b) Providing training to school district and public charter school
employees and volunteers on the use of automated external defibrillators;
and

(c) Any other expense related to providing automated external
defibrillators in public school facilities if the expense is approved by
the Department of Education.

(6) The State Board of Education may adopt rules:

(a) To establish criteria for awarding grants based on the goal set
forth in subsection (3) of this section;

(b) To determine the amount of each grant pursuant to subsection
(4) of this section; and

(c) That are necessary for the administration of this section.

(7) The Department of Education shall seek federal grant funds for
the purposes of the grant program.

(8) For purposes of the grant program, the Department of Education
may accept contributions of funds and assistance from the United States
Government and its agencies or from any other source, public or private,
and agree to conditions placed on the funds not inconsistent with the
purposes of the grant program.

(9) All funds received by the Department of Education under this
section shall be paid into the Department of Education Account
established in ORS 326.115 to the credit of the grant program. [2005
c.551 §4]COMMON SCHOOL FUND 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 or of any common school district that
includes an entire county. [1965 c.100 §30; 1991 c.167 §2; 2003 c.226 §4] 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 that 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 National Estuarine Research Reserve 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
Department 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; 2003 c.14 §147]The
Department of State Lands shall transfer the balance of the Distributable
Income Account of the Common School Fund established under ORS 273.105,
after deductions authorized by law, to the Superintendent of Public
Instruction semiannually, or more frequently if the State Land Board so
orders. The superintendent shall immediately apportion the amount
transferred among the counties in proportion to the number of children
resident in each county between the ages of 4 and 20 as determined
pursuant to ORS 190.510 to 190.610. The superintendent shall distribute
to each school district within a county a share of the county’s
apportionment that is based on the district’s average daily membership
that resides within the county. [Amended by 1965 c.100 §32; 1967 c.421
§200; 1971 c.294 §2; 1982 s.s.2 c.1 §5; 2005 c.412 §1] (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 school
district to the Department of Education.

(2) In the case of a joint school district, the resident average
daily membership reported to the department 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; 2005 c.412 §2](1) All moneys belonging to the Common School Fund and not required
to meet current expenses shall be loaned by the Department of State Lands
at a rate of interest fixed by the department except as otherwise
specified in ORS 348.050 (3). The department 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
department deems proper may be invested as provided in ORS 293.701 to
293.820. The department 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 department 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 department. [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] (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 Department 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 department 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.

(c) Subject to a lease of any kind.

(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] The
Department 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
department may establish fees to be paid by the applicant for the
appraisal of any property offered as security. [Amended by 1965 c.229 §2]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 Department 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] The
Department of State Lands shall have custody of all notes, bonds and
other securities covering secured loans made by it from any fund. The
department 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] (1) The
Department 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 department 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 department 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 department 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
department may extend the time for paying such interest not exceeding two
years. [Amended by 1965 c.100 §36]The
Director of the Department 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 department 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.Whenever the Department 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 department 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 department.(1) Excepting tax liens of irrigation
or drainage districts organized before the effective date of the
Department 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 department 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 department 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 department in said foreclosure
proceedings.Whenever the Department 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.(1) Where the judgment 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 Department of State Lands may pay from the Common
School Fund the sum necessary to comply with the conditions of the
judgment.

(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; 2003 c.576 §433] 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]Moneys may be withdrawn periodically from the General Fund by
order of the Department 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 (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 if the moneys 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 charges to grants, contracts and other
funds for indirect costs; and

(f) 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;
2005 c.209 §7]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] 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 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] (1) There is established
a Quality Education Commission consisting of 11 members appointed by the
Governor. The Governor may not appoint more than five members of the
commission 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; 2005 c.209 §8] (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] (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 and 329.475.

(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; 2003 c.303 §14]MISCELLANEOUS(Budget and Accounting System) (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;

(c) Curriculum area;

(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](Food Programs)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] 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] (1) The Department of
Education shall reimburse a school district, government agency or
community group five cents for every lunch the district, agency or group
serves during the summer as a part of:

(a) The United States Department of Agriculture’s Summer Food
Service Program; or

(b) A summer meals program through an existing national school
lunch program.

(2) The State Board of Education may adopt any rules necessary for
the administration of this section. [2005 c.701 §1](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 Education 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](Federal Aid to Education) The State Treasurer
shall serve as trustee of any federal aid to education funds apportioned
to the State of Oregon. 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]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.(Financing of State and Federal Requirements)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]EDUCATION LOTTERY BOND PROGRAM 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] 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] 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](1) The Legislative
Assembly may pay state education lottery bond debt service after the
1997-1999 biennium from earnings on the Education Stability 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 Stability Fund.
Any earnings from the Education Stability 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; 2002 s.s.3 c.6 §15] (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]

_______________

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