INFORMATIONAL MEETING

 

TAPES 9-10 A-B, 9-A

 

SENATE REVENUE COMMITTEE

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

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.

 

INFORMATIONAL MEETING

014

Steve Meyer

Begins slide presentation on School Finance, Sharing and Local Resources (EXHIBIT 1).

 

024

Meyer

Discusses State School Fund 2003-05 slide 6. Appropriations.

 

041

Meyer

Discusses Local Formula Revenue, slide 7. No federal dollars are included in this formula, no donations, interest nor fees.

 

060

Meyer

Discusses K-12 School & ESD Revenue pie chart, slide 9.

 

067

Meyer

Discusses School and ESD Shares, slides 10 and 11.

 

080

Chair Deckert

Notes, the governor has ESD ideas. Are those traditionally assigned to Education or Revenue committee?

 

084

Meyer

Responds, they may go to either, depending on the topic.

 

087

Meyer

Begins discussion on the school education formula. Discusses What Formula Is About, slide 14. The formula defines what school district equity is.

 

106

Meyer

Discusses Distribution Principles, slide 15.

 

122

Meyer

Discusses Equalization Formula, slide 17. State and local revenue.

 

134

Meyer

Discusses Facility Grant, slide 18. Equals up to 8% of construction costs.

 

143

Meyer

Discusses Facility Costs, slide 19. Limited to cost of additional classrooms.

 

151

Meyer

Discusses Facility Grants over last 4 years, slide 20. Grants have been distributed unevenly.

 

158

Meyer

Discusses High Cost Disability Grant, slide 21. Grant sunsets at end of 2005, and there will likely be legislation to extend it.

 

172

Chair Deckert

Asks if $12 million would be adequate pool to draw upon.

 

181

Meyer

Preliminary data says it would not be adequate.

 

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?

 

199

Meyer

That will come out in future testimony.

 

211

Chair Deckert

Legislature’s goal in 2003 was how to more adequately reimburse those districts.

 

217

Meyer

Resumes slide presentation, turns to issue of transportation costs. Discusses Transportation Percent, Districts ranked by cost per student, slide 23.

 

217

Meyer

Discusses Transportation Costs, Approved Costs, slide 24.

 

225

Meyer

Discusses General Purpose Grant, Equals Weighted Students, slide 26.

 

234

Meyer

Discusses Student Numbers, average daily membership (ADM), slide 27.

 

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.

 

271

Sen. George

Is it possible that a student can be included in more than one of these categories? Follow-up questions.

 

290

Meyer

Responds, potentially it is possible.

 

315

Sen. Prozanski

Concerning IEP, what if a school district has more than the average share (11%) of special needs children?

 

322

Meyer

State average is 13% and has not been changed since 1991.

 

328

Sen. George.

Asks how children in foster homes got on the list.

 

332

Meyer

Has to do with these students being concentrated in urban districts.

 

342

Chair Deckert

Asks, how does the system ensure that students in IEP belong there?

 

370

Meyer

Responds yes, for IEP there has to be a written program between the school district and parents.

 

380

Meyer

Resumes presentation by discussing Student Cost Weights, Grades and School, slide 31. Discusses Small High School Weighted ADM (4 Grades), slide 33.

 

399

Meyer

Discusses Small Elementary School Qualification, slide 34.

 

411

Meyer

Points out Student Counts, ADMr and ADMw Extended, slide 36.

 

433

Meyer

Discusses Teacher Experience Adjustment, slide 37. No change since 1991.

 

444

Meyer

Details General Purpose Grant, slide 38.

 

464

Meyer

Explains in detail the Equalization Formula, state revenue and local revenue. Slide 39.

 

 

 

TAPE 10, SIDE A

040

Meyer

Stresses the importance of understanding the equalization formula.

 

062

Meyer

Discusses Formula Revenue pie chart, slide 40.

 

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.

 

079

Meyer

Discusses K-12 Formula Revenue Per Student, slide 43.

 

091

Meyer

Discusses Formula Allocation, District Revenue per Student 2003-04, slide 44.

 

094

Meyer

Discusses Equalization Results, Districts with More Than 500 ADM, slide 45.

 

107

Meyer

Moves on to next section of presentation, Education Service Districts (ESDs). Discusses ESD Resolution Services, slide 49.

 

105

Meyer

Begins discussion on ESD Equalization, General Logic, slide 51.

 

132

Meyer

Discusses ESD Allocation (Starting in 2005-06) formula, slide 54.

 

145

Chair Deckert

Asks questions on graph on school funding formula, disparities among districts.

 

150

Meyer

Replies yes, 2005-06 is the final year of the phase-in process.

 

192

Meyer

ESD “Equity”, slide 55.

 

201

Meyer

Discusses Local Option Property Tax, 1999 HB 2753. Begins new section with discussion of Exclusion From Formula, Local Revenue, slide 58.

 

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.

 

244

Chair Deckert

Asks for a geographical breakdown of where local options passed.

 

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.

 

275

Sen. Metsger

Comments, Hood River passed a local option last September.

 

281

Sen. Prozanski

Assumes double majority is in play.

 

294

Meyer

Responds, he has information on reasons for passage and failure of the various local options.

 

297

Meyer

Discusses Local Option Equalization, slide 61. Most districts don’t meet the qualification for equalization.

 

327

Sen. Prozanski

Requests a list of school districts impacted.

 

329

Meyer

Lists the districts.

 

332

Meyer

Moves on to Education Stability Fund 2002 section of presentation, slide 63.

 

354

Meyer

Discusses Withdrawal of Principal, Trigger Combinations, slide 64.

 

363

Meyer

Discusses Withdrawal of Principal, slide 65, governor declares emergency.

 

375

Meyer

Discusses Education Stability Fund, slide 67.

 

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.

 

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.

 

438

Deckert

Has an analysis been done of the $120 million estimate?

 

442

Warner

Lottery Commission will address this tomorrow.

 

454

Meyer

Discusses 2005-07 Biennium, Governor’s Budget. State School Support, slide 70. Wraps up discussion with discussion of Formula Issues? Slide 74.

 

471

Chair Deckert

ESDs and the school finance formula will be revisited later in the session.

 

 

 

TAPE 9, SIDE B

050

Sen. George

Asks whether Oregon still ranks first among the 10 western states in total funding per student.

 

067

Meyer

Ranking depends on the year in question.

 

074

Sen. George

Asks what effect Oregon’s unemployment has on the ranking.

 

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.

 

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.