
ORIENTATION MEETING 

TAPE 1314,
AB 
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
“K12 Dollars Pay For” (Page 1, Slide Bottom, Exhibit 1). 
080 094 
Meyer Meyer 
Continued presentation, beginning
“K12 Students” (Page 2, Slide 3, Exhibit 1). Question and discussion
interspersed. Continued presentation, beginning
“K12 Resources Audited”, (Page 2, Slide Bottom, Exhibit 1). 
155 
Meyer 
Continued presentation, beginning
with “K12 Expenditures”, (Page 3, Slide 6, Exhibit 1). 
179 
Meyer 
Continued presentation, beginning “K12
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 200103 Transition”, (Page 5, Slide 19, Exhibit 1). 
255 
Meyer 
Continued presentation, beginning “Formula
Local Revenue 200103 Transition”, (Page 5, Slide 20, Exhibit 1) 
270 
Meyer 
Continued presentation, beginning “State
and Local Revenue 200103 Transition”, (Page 6, Slide 21, Exhibit 1). 
278 
Meyer 
Continued presentation, beginning “State
and Local Revenue 200103 Transition per ADMw”, (Page 6, Slide 22, Exhibit 1). Questions and discussion
interspersed. 
301 
Meyer 
Continued presentation, beginning
“State School Fund 200103”, (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 “K12
and ESD Revenue 200103 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
“K12 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 K12 200203, (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 “K12
Formula Results”, (Page 22, Slide 62, Exhibit 1). 
044 
Meyer 
Continued presentation, beginning “K12
Formula Revenue Billions”, (Page 23, Slide Top, Exhibit 1). 
054 
Meyer 
Continued presentation, beginning “K12
Formula Revenue Per Student”, (Page 23, Slide Bottom, Exhibit 1). 
059 074 
Meyer Meyer 
Continued presentation, beginning “K12
Funding Equity”, (Page 24, Slide 66, Exhibit 1). Continued presentation, beginning “Formula
Distribution, District Revenue per Student 200102”, (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 200103 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 “Phasein
Distribution”, (Page 30, Slide 80, Exhibit 1). 
179 
Meyer 
Continued presentation, beginning “K12
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 200305? 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 “200305
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 “K12
and ESD Revenue 200305 Gov. Balanced Budget, (Page 40, Slide Top, Exhibit
1). 
135 
Meyer 
Continued presentation, beginning
“K12 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.