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INFORMATIONAL MEETING |
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TAPES 9-10 A-B, 9-A |
JANUARY 24, 2005 9:00 AM STATE CAPITOL BUILDING
Members Present: Senator Ryan Deckert, Chair
Senator Charles Starr, Vice Chair
Senator Gary George
Senator Rick Metsger
Senator Floyd Prozanski
Staff Present: Paul Warner, Legislative Revenue Officer
Steve Meyer, Economist
Barbara Guardino, Committee Assistant
TAPE 9, SIDE A
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004 |
Chair Deckert |
Calls meeting to order at 9:04 a.m. Notes, school finance is today’s topic. There will be a number of bills this session relating to the school funding formula. Oregon Business Council will propose issues dealing with school transportation and special education.
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INFORMATIONAL MEETING |
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014 |
Steve Meyer |
Begins slide presentation on School Finance, Sharing and Local Resources (EXHIBIT 1).
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024 |
Meyer |
Discusses State School Fund 2003-05 slide 6. Appropriations.
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041 |
Meyer |
Discusses Local Formula Revenue, slide 7. No federal dollars are included in this formula, no donations, interest nor fees.
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060 |
Meyer |
Discusses K-12 School & ESD Revenue pie chart, slide 9.
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067 |
Meyer |
Discusses School and ESD Shares, slides 10 and 11.
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080 |
Chair Deckert |
Notes, the governor has ESD ideas. Are those traditionally assigned to Education or Revenue committee?
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084 |
Meyer |
Responds, they may go to either, depending on the topic.
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087 |
Meyer |
Begins discussion on the school education formula. Discusses What Formula Is About, slide 14. The formula defines what school district equity is.
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106 |
Meyer |
Discusses Distribution Principles, slide 15.
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122 |
Meyer |
Discusses Equalization Formula, slide 17. State and local revenue.
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134 |
Meyer |
Discusses Facility Grant, slide 18. Equals up to 8% of construction costs.
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143 |
Meyer |
Discusses Facility Costs, slide 19. Limited to cost of additional classrooms.
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151 |
Meyer |
Discusses Facility Grants over last 4 years, slide 20. Grants have been distributed unevenly.
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158 |
Meyer |
Discusses High Cost Disability Grant, slide 21. Grant sunsets at end of 2005, and there will likely be legislation to extend it.
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172 |
Chair Deckert |
Asks if $12 million would be adequate pool to draw upon.
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181 |
Meyer |
Preliminary data says it would not be adequate.
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185 |
Sen. Prozanski |
Some school districts are above percentage set for what state will pay for special needs students. Has Revenue discussed reassessing how many special needs students come through the various school districts?
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199 |
Meyer |
That will come out in future testimony.
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211 |
Chair Deckert |
Legislature’s goal in 2003 was how to more adequately reimburse those districts.
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217 |
Meyer |
Resumes slide presentation, turns to issue of transportation costs. Discusses Transportation Percent, Districts ranked by cost per student, slide 23.
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217 |
Meyer |
Discusses Transportation Costs, Approved Costs, slide 24.
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225 |
Meyer |
Discusses General Purpose Grant, Equals Weighted Students, slide 26.
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234 |
Meyer |
Discusses Student Numbers, average daily membership (ADM), slide 27.
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247 |
Meyer |
Discusses Student Cost Weights, Special Education and at Risk, slide 28. These include individual education program (IEP), students in poverty, English Language Learner (ELL), pregnant and parenting students.
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271 |
Sen. George |
Is it possible that a student can be included in more than one of these categories? Follow-up questions.
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290 |
Meyer |
Responds, potentially it is possible.
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315 |
Sen. Prozanski |
Concerning IEP, what if a school district has more than the average share (11%) of special needs children?
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322 |
Meyer |
State average is 13% and has not been changed since 1991.
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328 |
Sen. George. |
Asks how children in foster homes got on the list.
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332 |
Meyer |
Has to do with these students being concentrated in urban districts.
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342 |
Chair Deckert |
Asks, how does the system ensure that students in IEP belong there?
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370 |
Meyer |
Responds yes, for IEP there has to be a written program between the school district and parents.
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380 |
Meyer |
Resumes presentation by discussing Student Cost Weights, Grades and School, slide 31. Discusses Small High School Weighted ADM (4 Grades), slide 33.
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399 |
Meyer |
Discusses Small Elementary School Qualification, slide 34.
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411 |
Meyer |
Points out Student Counts, ADMr and ADMw Extended, slide 36.
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433 |
Meyer |
Discusses Teacher Experience Adjustment, slide 37. No change since 1991.
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444 |
Meyer |
Details General Purpose Grant, slide 38.
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464 |
Meyer |
Explains in detail the Equalization Formula, state revenue and local revenue. Slide 39. |
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TAPE 10, SIDE A
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040 |
Meyer |
Stresses the importance of understanding the equalization formula.
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062 |
Meyer |
Discusses Formula Revenue pie chart, slide 40.
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073 |
Meyer |
Points out, in last two biennia Oregon has been in an up-down situation in total dollars. This is a new pattern, slide 42.
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079 |
Meyer |
Discusses K-12 Formula Revenue Per Student, slide 43.
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091 |
Meyer |
Discusses Formula Allocation, District Revenue per Student 2003-04, slide 44.
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094 |
Meyer |
Discusses Equalization Results, Districts with More Than 500 ADM, slide 45.
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107 |
Meyer |
Moves on to next section of presentation, Education Service Districts (ESDs). Discusses ESD Resolution Services, slide 49.
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105 |
Meyer |
Begins discussion on ESD Equalization, General Logic, slide 51.
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132 |
Meyer |
Discusses ESD Allocation (Starting in 2005-06) formula, slide 54.
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145 |
Chair Deckert |
Asks questions on graph on school funding formula, disparities among districts.
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150 |
Meyer |
Replies yes, 2005-06 is the final year of the phase-in process.
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192 |
Meyer |
ESD “Equity”, slide 55.
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201 |
Meyer |
Discusses Local Option Property Tax, 1999 HB 2753. Begins new section with discussion of Exclusion From Formula, Local Revenue, slide 58.
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223 |
Meyer |
Discusses School Local Option elections, slide 60. About 37% of local option elections have passed. Most local options passed in 2000. They must be renewed after five years.
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244 |
Chair Deckert |
Asks for a geographical breakdown of where local options passed.
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249 |
Meyer |
Responds, they are scattered. Larger districts have higher passage rate than smaller schools. School districts with higher property values are more likely to pass local options.
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275 |
Sen. Metsger |
Comments, Hood River passed a local option last September.
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281 |
Sen. Prozanski |
Assumes double majority is in play.
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294 |
Meyer |
Responds, he has information on reasons for passage and failure of the various local options.
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297 |
Meyer |
Discusses Local Option Equalization, slide 61. Most districts don’t meet the qualification for equalization.
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327 |
Sen. Prozanski |
Requests a list of school districts impacted.
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329 |
Meyer |
Lists the districts.
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332 |
Meyer |
Moves on to Education Stability Fund 2002 section of presentation, slide 63.
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354 |
Meyer |
Discusses Withdrawal of Principal, Trigger Combinations, slide 64.
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363 |
Meyer |
Discusses Withdrawal of Principal, slide 65, governor declares emergency.
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375 |
Meyer |
Discusses Education Stability Fund, slide 67.
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405 |
Meyer |
Discusses Education Stability Fund, slide 68. There have been two draws made on this account. Lottery system’s estimated balance at beginning of next biennium is about $180 billion.
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428 |
Paul Warner |
Lottery Commission will talk to committee tomorrow. Governor’s estimate is $120 million in additional lottery funds, and18% would go to stability fund.
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438 |
Deckert |
Has an analysis been done of the $120 million estimate?
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442 |
Warner |
Lottery Commission will address this tomorrow.
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454 |
Meyer |
Discusses 2005-07 Biennium, Governor’s Budget. State School Support, slide 70. Wraps up discussion with discussion of Formula Issues? Slide 74.
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471 |
Chair Deckert |
ESDs and the school finance formula will be revisited later in the session. |
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TAPE 9, SIDE B
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050 |
Sen. George |
Asks whether Oregon still ranks first among the 10 western states in total funding per student.
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067 |
Meyer |
Ranking depends on the year in question.
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074 |
Sen. George |
Asks what effect Oregon’s unemployment has on the ranking.
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074 |
Warner |
Responds, Oregon ranks 25th among all states on revenue per student. Information is available in the 2005 Oregon Public Finance packet (See January 17 EXHIBIT E) in the School Finance section.
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108 |
Chair Deckert |
Adjourns meeting at 10:07 a.m. |
Tape Log Submitted by,
Barbara Guardino, Committee Assistant Reviewed by Kim Taylor James
Exhibit Summary:
1. School Finance, Sharing State and Local Resources, Meyer, 37 pp.