ORIENTATION MEETING

 

TAPE 13-14, A-B

 

HOUSE REVENUE COMMITTEE

JANUARY 23, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Wayne Scott, Vice Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams*

 

Members Excused:                      Representative Pat Farr

 

Witness Present:                        Ozzie Rose, Confederation for Oregon Administrators

                                                John Marshall, Oregon School Board Association

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Steve Meyer, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 13, SIDE A

004

Chair Shetterly

Calls meeting to order at 8:38 a.m.

 

 

050

Steve Meyer

Presented slide show on “School Finance, Sharing State and Local Resources”, (Page 1, Slide Top, Exhibit 1).

 

064

Meyer

Continued presentation, beginning “K-12 Dollars Pay For” (Page 1, Slide Bottom, Exhibit 1).

080

 

 

 

 

094

Meyer

 

 

 

 

Meyer

Continued presentation, beginning “K-12 Students” (Page 2, Slide 3, Exhibit 1).

 

Question and discussion interspersed.

 

Continued presentation, beginning “K-12 Resources Audited”, (Page 2, Slide Bottom, Exhibit 1).

 

155

Meyer

Continued presentation, beginning with “K-12 Expenditures”, (Page 3, Slide 6, Exhibit 1).

 

179

Meyer

Continued presentation, beginning “K-12 and ESD Funding Sources”, Page 3, Slide 16, Exhibit 1).

 

181

Meyer

Continued presentation, beginning with “State School Fund”, (Page 4, Slide Top, Exhibit 1).

 

Questions and discussion interspersed.

 

220

Meyer

Continued presentation, beginning “State School Fund, (Page 4, Slide 18, Exhibit 1).

 

232

Meyer

Continued presentation, beginning “State School Fund 2001-03 Transition”, (Page 5, Slide 19, Exhibit 1).

 

255

Meyer

Continued presentation, beginning “Formula Local Revenue 2001-03 Transition”, (Page 5, Slide 20, Exhibit 1)

 

270

Meyer

Continued presentation, beginning “State and Local Revenue 2001-03 Transition”, (Page 6, Slide 21, Exhibit 1).

 

278

Meyer

Continued presentation, beginning “State and Local Revenue 2001-03 Transition per ADMw”, (Page 6, Slide 22, Exhibit 1).

 

Questions and discussion interspersed.

 

301

Meyer

Continued presentation, beginning “State School Fund 2001-03”, (Page 7, Slide Top, Exhibit 1).

 

327

Meyer

Continued presentation, beginning “Local Formula Revenue”, (Page 7, Slide Bottom, Exhibit 1).

 

Question and discussion interspersed.

 

392

Meyer

Continued presentation, beginning “State and Local Revenue Allocation Estimates,” (Page 8, Slide 25, Exhibit 1).

 

Questions and discussion interspersed.

 

 

TAPE 14 – SIDE A

001

Meyer

Continued presentation, beginning “K-12 and ESD Revenue 2001-03 Biennium”, (Page 8, Slide 26, Exhibit 1).

.

010

Meyer

Continued presentation, beginning “Total Revenue Cap”, (Page 9, Slide 27, Exhibit 1).

 

Question and discussion interspersed.

 

023

Meyer

Continued presentation, beginning “K-12 School Equalization Formula”, (Page 9, Slide 29, Exhibit 1).

 

025

Meyer

Continued presentation, beginning “Distribution Principles”, (Page 10, Slide Top, Exhibit 1).

 

050

Meyer

Continued presentation, beginning “Equalization Formula General Format, (Page 10, Slide Bottom, Exhibit 1).

.

058

Meyer

Continued presentation, beginning “Equalization Formula Cost Factors”, (Page 11, Slide Top, Exhibit 1).

 

061

Meyer

Continued presentation, beginning “Equalization Formula”, (Page 11, Slide 33, Exhibit 1).

 

070

Meyer

Continued presentation, beginning “Formula Student Counts”, (Page 12, Slide Top, Exhibit 1).

 

Questions and discussion.

 

080

Meyer

Continued presentation, beginning “Student Cost Weights, Special Education and at Risk”, (Page 12, Slide Bottom, Exhibit 1).

 

105

 

 

128

Meyer

 

 

Meyer

Continued presentation, beginning “Special Education and at Risk Students”, (Page 13, Slide Top, Exhibit 1).

 

Continued presentation, beginning “Revenue by Student Weight, General Purpose Grant”, (Page 13, Slide Bottom, Exhibit 1).

 

130

Meyer

Continued presentation, beginning “Student Cost Weights, Grades and School”, (Page 14, Slide Top, Exhibit 1).

 

134

Meyer

Continued presentation, beginning “Remote Small High School Weighted ADM (4 Grades) 20 miles to nearest high school”, (Page 14, Slide 42, Exhibit 1).

 

Question and discussion interspersed.

 

163

Meyer

Continued presentation, beginning “Small High School Additional weight”, (Page 15, Slide 43, Exhibit 1).

 

Questions and discussion interspsersed.

 

195

Meyer

Continued presentation, beginning “Student Counts ADMr and ADMw Extended”, (Page 15, Slide 46, Exhibit 1).

 

Question and discussion interspersed.

 

225

Meyer

Continued presentation, beginning “Teacher Experience Adjustment” (Page 16, Slide Top, Exhibit 1)

 

Questions and discussion interspersed.

 

235

Meyer

Continued presentation, beginning “General Purpose Grant”, (Page 16, Slide 48, Exhibit 1).

 

268

Meyer

Continued presentation, beginning “Transportation Costs”, Page 17, Slide Top, Exhibit 1).

 

271

Meyer

Continued presentation, beginning “Transportation Grant, (Page 17, Slide 50, Exhibit 1).

 

Question and discussion interspersed.

 

285

Meyer

Continued presentation, beginning “Transportation”, (Page 18, Slide Top, Exhibit 1).

 

290

Meyer

Continued presentation, beginning “Facility Cost”, (Page 18, Slide 52, Exhibit 1).

 

295

Meyer

Continued presentation, beginning “Facility Grant”, (Page 19, Slide 53, Exhibit 1).

 

Question and discussion interspersed.

 

310

Meyer

Continued presentation, beginning “Facility Grants”, (Page 19, Slide 54, Exhibit 1)

 

Question and discussion interspersed.

 

342

Meyer

Continued presentation, beginning “Equalization Formula”, (Page 20, Slide Top, Exhibit 1).

 

348

Meyer

Continued presentation, beginning “Formula Example” (Page 20, Slide Bottom, Exhibit 1).

 

Questions and discussion interspersed.

 

407

Meyer

Continued presentation, beginning “Equalization Formula Examples”, (Page 21, Slide Top, Exhibit 1).

 

 

TAPE 13, SIDE B

 

005

Meyer

Continued presentation, beginning “Formula Revenue K-12 2002-03, (Page 21, Slide Bottom, Exhibit 1).

 

024

Meyer

Continued presentation, beginning “State School Fund, Payment Schedule”, (Page 22, Slide 60, Exhibit 1).

 

035

Meyer

Continued presentation, beginning “K-12 Formula Results”, (Page 22, Slide 62, Exhibit 1).

 

044

Meyer

Continued presentation, beginning “K-12 Formula Revenue Billions”, (Page 23, Slide Top, Exhibit 1).

 

054

Meyer

Continued presentation, beginning “K-12 Formula Revenue Per Student”, (Page 23, Slide Bottom, Exhibit 1).

 

059

 

 

074

Meyer

 

 

Meyer

Continued presentation, beginning “K-12 Funding Equity”, (Page 24, Slide 66, Exhibit 1).

 

Continued presentation, beginning “Formula Distribution, District Revenue per Student 2001-02”, (Page 25, Slide 67, Exhibit 1).

 

088

Meyer

Continued presentation, beginning “Education Service Districts”, (Page 25, Slide Top, Exhibit 1).

 

090

Meyer

Continued presentation, beginning “ESD Mergers, (Page 25, Slide Bottom, Exhibit 1).

 

092

Meyer

Continued presentation, beginning “ESD Regions”, (Page 26, Slide 71, Exhibit 1).

 

100

Meyer

Continued presentation, beginning “ESD Purposes”, (Page 26, Slide Bottom, Exhibit 1).

 

108

Meyer

Continued presentation, beginning “ESD Funding Sources”, (Page 27, Slide Top, Exhibit 1).

 

112

Meyers

Continued presentation, beginning “Education Service Districts 2001-03 Biennium”, (Page 27, Slide 74, Exhibit 1).

 

Question and discussion interspersed.

 

140

Meyer

Continued presentation, beginning “ESD Equalization General Logic”, Page 28, Slide 75, Exhibit 1).

 

146

Meyer

Continued presentation, beginning “Distribution Method General Format”, (Page 28, Slide 76, Exhibit 1).

 

150

Meyer

Continued presentation, beginning “Low Funded ESD”, (Page 29, Slide 78, Exhibit 1).

 

163

Meyer

Continued presentation, beginning “High Funded ESD”, (Page 29, Slide 79, Exhibit 1).

 

167

Meyer

Continued presentation, beginning “Phase-in Distribution”, (Page 30, Slide 80, Exhibit 1).

 

179

Meyer

Continued presentation, beginning “K-12 and ESD Equity Share of Total”, (Page 30, Slide 81, Exhibit 1).

 

193

Meyer

Continued presentation, beginning “Equalization Target”, (Page 31, Slide 82, Exhibit 1).

 

205

Meyer

Continued presentation, beginning “ESD Revenue Base, (Page 31, Slide 83, Exhibit 1).

 

218

Meyer

Continued presentation, beginning “Percent of Gap Base Adjustment, High Funded ESDs only”, (Page 32, Slide 84, Exhibit 1).

 

231

 

 

255

Meyer

 

 

Meyer

Continued presentation, beginning “Percent of Gap Base Adjustment, Low Funded ESDs only”, (Page 32, Slide 85. Exhibit 1).

 

Continued presentation, beginning “ESD Minimum Revenue”, (Page 33, Slide 86, Exhibit 1).

 

273

Meyer

Continued presentation, beginning “Final Equalization Distribution”, (Page 33, Slide 87, Exhibit 1).

 

262

 

 

313

 

 

313

Meyer

 

 

Verger

 

 

Chair Shetterly

Continued presentation, beginning “ESD “Equity”, (Page 34, Slide 88, Exhibit 1).

 

Can a school district, based on not having revenue, not provide a mandated service.

 

No.  Special Ed for instance is a federal mandate. There is no opt out based on lack of local funding.

 

Questions and discussion interspersed.

 

313

 

 

322

Ozzie Rose

 

 

Meyer

If the ESD stops providing the special education services, the local district is responsible for providing it by law.

 

Continued presentation, beginning “Other Funds”, (Page 34, Slide 89, Exhibit 1).

 

329

 

 

355

Meyer

 

 

Chair Shetterly

Continued presentation, beginning “Education Stability Fund”, (Page 35, Slide Top, Exhibit 1).

 

The available balance $107, does that include the Oregon Growth Account Funds in the stability fund?.

 

360

 

368

Meyer

 

Barnhart

It does not.

 

Are any of the constitutional triggers likely to be triggered this biennium 2003-05?

 

Questions and discussion interspersed.

 

369

Warner

There are two triggers most likely to come into play.  First, is two consecutive quarters of falling employment on an annual average basis, it is unknown at this time if this will be triggered.  The second, will definitely be triggered. It is the requirement that Revenue Forecast be 2% or more less than at the close of session.  The current forecast is -16% below the close of session.

 

393

Chair Shetterly

Noted July 1 sets a new reference point for that trigger.

 

Questions and discussion interspersed.

 

420

Meyer

Continued presentation, beginning “Local Option Property Tax”, (Page 35, Slide 93, Exhibit 1).

 

424

Meyer

Continued presentation, beginning “Local Option”, (Page 36, Slide 94, Exhibit 1).

 

410

Meyer

Continued presentation, beginning “Tax Limits”, (Page 36, Slide 95, Exhibit 1).

 

TAPE 14, SIDE B

 

002

 

Meyer

Continued presentation, beginning “Exclusion from Formula Local Revenue”, (Page 37, Slide 96, Exhibit 1).

 

Question and discussion interspersed.

 

020

Chair Shetterly

Of the districts that have passed local options, have any of them hit that limit? And how many?  The Chair recognized John Marshall.

 

024

 

026

 

 

027

 

035

John Marshall

 

Chair Shetterly

 

 

Marshall

 

Meyer

Pendleton School District was entitled to one of the equalization grants.

 

That’s not equalization. Regarding local options, how many districts have been constrained by that?

 

Did not know.

 

Continued presentation, beginning “Local Option Per Student”, (Page 37, Slide 97, Exhibit 1).

 

042

Meyer

Continued presentation, beginning “Local Option Elections”, (Page 38, Slide 98, Exhibit 1).

 

080

Meyer

Continued presentation, beginning “Local Option Equalization”, (Page 38, Slide 99, Exhibit 1).

 

Questions and discussion interspersed.

 

088

Meyer

Continued presentation, beginning “2003-05 Biennium Balanced Budget”, (Page 39, Slide 100, Exhibit 1).

 

115

Meyer

Continued presentation, beginning “State School Budget”, “Page 39, Slide 101, Exhibit 1).

 

125

Meyer

Continued presentation, beginning “K-12 and ESD Revenue 2003-05 Gov. Balanced Budget, (Page 40, Slide Top, Exhibit 1).

 

135

Meyer

Continued presentation, beginning “K-12 Revenue Governor’s Balanced Budget, (Page 40, Slide 103, Exhibit 1).

 

Questions and discussion interspersed.

 

107

Meyer

Continued presentation, beginning “ESD Revenue Governor’s Balanced Budget”, (Page 41, Slide Top, Exhibit 1).

 

173

Meyer

Continued presentation, “State School Support if No Legislative Action”, (Page 41, Slide Bottom, Exhibit 1).

 

160

Hopson

Regarding cost per student, particularly in comparison with other states, the Committee has heard costs ranging from $10,000 to $4500.  Is there information that compares apples to apples?

 

204

Shetterly

Answered that the EcoNorthwest presentation on Monday would have historical information that should answer that question.

 

Questions and answers interspersed.

 

241

Shetterly

Meeting adjourned at 10:20 a.m.

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.         Meyer, “School Finance, Sharing State and Local Resources”, 41 pages.