WORK SESSION SB 550-A, SB 819-A  

 

TAPE 158-159, A

 

HOUSE REVENUE COMMITTEE

MAY 7, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Elaine Hopson

                                                Representative Max Williams                                               

 

Members Excused:                      Representative Wayne Scott, Vice Chair

                                                Representative Pat Farr

                                                Representative Mark Hass

 

Witness Present:                        Representative Jerry Krummel, District 26

                                                Rob Saxton, Sherwood School District

                                                Connie Hansen, Sherwood United for Schools

                                                George Lanning, Oregon Small Schools Association

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Steve Meyer, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 158, SIDE A

 

004

Chair Shetterly

Calls meeting to order at  8:42 a.m.

 

OPENS WORK SESSION ON SB 550A AND 819A

 

025

Rep. Krummel

Introduces SB 819-A7 amendments (Exhibit 1), which creates a high growth grant. Offers support for the amendments and discusses the Sherwood school district.

 

 

 

050

Rob Saxton

Discusses Sherwood school district growth and spending per student, which is less than any district in Oregon. Discusses executive report developed last year (Exhibit 2). Gives history of local option in Sherwood.

 

 

 

200

Rep. Barnhart

Asks what the minimum amount per student to fund Sherwood school district is.

 

 

 

210

Saxton

Responds that last session they were allotted 5181 per student, which they didn’t feel was adequate. States that there are exceptions to the formula for various circumstances and Sherwood does not qualify for any of them, even though they cannot adequately fund their schools.

 

 

 

238

Rep. Barnhart

Asks if Sherwood qualifies for capital matching funds.

 

 

 

241

Saxton

Responds that he is not aware of capital matching funds.

 

 

 

248

Rep. Barnhart

Asks about increasing numbers of younger children.

 

 

 

252

Saxton

Responds that kindergarten classes are growing larger each year.

 

 

 

259

Rep. Barnhart

Asks if the district is holding these kids or if the families move to a more established district as they get older, putting less stress on the high schools.

 

 

 

262

Saxton

Responds that he doesn’t know because they are such a young community, but that right now it looks like they are holding them.   

 

 

 

255

Rep. Barnhart

Asks how are Sherwood is paying for hard assets such as property.

 

 

 

270

Saxton

Responds that the last construction was done with facility grant dollars, but they have used operating dollars.

 

 

 

287

Connie Hansen

Testifies in support of SB 819-A7 amendments. Discusses cuts being made in Sherwood school district. Discusses the history of local options in Sherwood and the problems created by high growth in the area.

 

 

 

402

Rep. Verger

States that she is envious of growth and doesn’t believe that a cookie cutter approach to school funding problems will work because each district is different and has different problems.

 

 

 

421

Rep. Krummel

States that the amendments would fit in SB 550 or SB 819.

 

TAPE 159, SIDE A

 

012

Rep. Krummel

States that there are flaws in funding formula, particularly with high growth, and that this bill is a way to meet the demands of the school districts.

 

 

 

024

Rep. Hopson

Asks how many schools could receive high growth grants.

 

 

 

028

Steve Meyer

Responds that he has only identified Sherwood.

 

 

 

033

Rep. Barnhart

Asks if Sherwood expects this growth rate into the future.

 

 

 

035

Saxton

Responds that they expect an increase in growth by 30% over next 5 years.

 

Discussion follows.

 

 

 

053

George Lanning

Testifies in support of SB 550 because it benefits small rural districts.  Discusses Harney and Malheur county and their difficulties in providing transportation. Discusses connection to high cost special education.

 

 

 

120

Rep. Hopson

Asks if boarding costs come out of transportation monies.

 

 

 

123

Meyer

Nods affirmatively.

 

 

 

125

Rep. Hopson

Asks for information on distances between schools.

 

 

 

132

Meyer

Responds that he does not have that information, but the Department of Education may.

 

 

 

137

Rep. Barnhart

Asks if this change in transportation funding formula would apply to boarding costs.

 

 

 

141

Meyer

Responds affirmatively.

 

 

 

150

Steve Meyer

Discusses SB 819-A10 amendments (exhibit 3). 

 

 

 

160

Meyer

Discusses the “High Cost Special Education” table (Exhibit 4), which estimates costs per student.

 

Clarifying questions and answers interspersed.

 

 

 

220

Chair Shetterly

Asks if districts that have a higher proportion of lower cost students would see a decrease in their average per student.   

 

 

 

224

Meyer

Responds that it is the other way around and that districts that have a lot around the $25,000 - $35,000 tend to be better off with the $20,000 reduction.

 

 

 

232

Rep. Berger

Asks how many districts did not report.

 

 

 

235

Meyer

Responds that 9 did not respond.

 

Discussion follows.

 

 

 

245

Meyer

Discusses “Local Option Tax Excluded from School Formula Local Revenue” (Exhibit 5).

 

 

 

276

Chair Shetterly

Asks for example using Gilliam school district.

 

Discussion follows.

 

 

 

294

Meyer

Gives example using Multnomah school district.

 

 

 

301

Rep. Verger

Expresses confusion about the number under current law.

 

 

 

303

Meyer

Responds that under current law the amount of local option that can be excluded is the lesser of 10 percent or $500 per student.

 

 

 

311

Rep. Barnhart

States that it looks as though there are at least 2 districts that are flowing money into the formula.

 

 

 

320

Meyer

Responds that the numbers may indicate that, but it is not the case because the local option number is the amount imposed and not collected.

 

Discussion follows.

 

 

 

365

Meyer

Discusses “School Finance Distribution” (Exhibit 6).

 

Discussion follows.

 

 

 

412

Rep. Hopson

Asks about the Neah-Kah-Nie district.

 

 

 

416

Meyer

Responds that Neah-Kah-Nie has typically been in the situation where local revenue is greater than their formula allocation, so that they don’t receive any school funds, but that with this change they would qualify for additional formula revenue.

 

Discussion follows.

 

456

Rep. Barnhart

Asks if redistributing funds would modify the table.

 

 

 

458

Meyer

Responds negatively.

 

CLOSES WORK SESSION ON SB 550 A AND SB 819 A

 

462

Chair Shetterly

Meeting adjourned at 9:40 a.m.

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Tara Lantz, Committee Assistant

 

Exhibit Summary:

1.       SB 819 A, Representative Krummel, Proposed SB 819-A7 Amendments, 3pp.

2.       SB 819 A, Rob Saxton, Executive Summary, 1p.

3.       SB 819 A, Steve Meyer, Proposed SB 819-A10 Amendments, 19pp.

4.       SB 550 A, Steve Meyer, High Cost Special Education, 6pp.

5.       SB 819 A, Steve Meyer, Local Option Tax Excluded from School Formula Local Revenue, 6pp.

6.       SB 550 A, Steve Meyer, School Finance Distribution, 6pp.