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OREGON DEPARTMENT OF EDUCATION

 

DIVISION 23

SCHOOL FINANCE

581-023-0006

Student Accounting Records and State Reporting

(1) The following definitions and abbreviations apply to this rule:

(a) "Active roll" means the list of students enrolled and attending the school or program during the current school year;

(b) "ADA" means average daily attendance;

(c) "ADM" means average daily membership;

(d) "Alternative program" means any private or public alternative program providing instruction or instruction combined with counseling under ORS 336.635;

(e) “Class” means a separate group of students under the direction of a teacher.

(f) "Day in session" means a scheduled day of instruction during which students are under the guidance and direction of teachers;

(g) "Department" means the Oregon Department of Education;

(h) "Full school day" means the length of time a school or program is normally in session during the day in compliance with OAR 581-022-1620;

(i) "FTE" means full-time equivalency;

(j) "Inactive roll" means the list of students enrolled for purposes of credit but not attending the school or program. Includes students attending private alternative or Job Corps programs, students withdrawn after ten consecutive days' absence and students served on a tutorial basis outside the classroom;

(k) "Instruction" for purposes of reimbursement of alternative programs means all activities that are approved by the student's resident school district, consistent with Oregon's academic and career related learning standards, and designed to lead to student achievement of those standards, including participation in Oregon state assessment, where applicable.

(l) "Instructional unit" means a school or other organizational arrangement which provides instruction of a given type or types;

(m) "Intermediate group" means instruction provided to a student receiving a comprehensive instructional program consistent with OAR 581-022-1210 and individually placed by a school district in an alternative program approved by a school district to a class of six to 15 students;

(n) "Large group" means instruction consistent with OAR 581-022-1210 and provided to a student individually placed by a school district in an alternative program approved by a school district to a class of 16 or more students;

(o) "Nonpublic school" means instruction provided by an individual or institution listed in ORS 339.030 as exemptions to the compulsory attendance requirements set out in ORS 339.010.

(p) "Regular school program" means that which is offered to comply with the standards adopted by the State Board of Education and compulsory school attendance law. This does not include summer school, adult education, or pre-kindergarten programs;

(q) "Small group" means instruction provided to a student receiving a comprehensive instructional program consistent with OAR 581-022-1210 and individually placed by a school district in an alternative program approved by the school district to a class of two to five students;

(r) "Superintendent" means the State Superintendent of Public Instruction;

(s)(A) “Teacher” means:

(i) An appropriately licensed staff member with the responsibilities of a teacher in OAR 584-036-0011 or with the responsibilities of teacher described in the definition of a teacher in ORS 342.120; and

(ii) For purposes of private alternative education programs, an appropriately licensed or unlicensed staff member with the responsibilities of a teacher in OAR 584-036-0011 or with the responsibilities of teacher described in the definition of a teacher in ORS 342.120.

(B) “Teacher” does not include an “Educational Assistant” as defined by ORS 342.120 and OAR 581-037-0005 or “Instructional Assistant” described in 584-036-0011.

(t) "Tutorial" means instruction provided to a student receiving a comprehensive instructional program consistent with OAR 581-022-1210 and individually placed by a school district in an alternative program approved by a school district to one student.

(2) Instructions pertaining to the maintenance of student accounting records and state reporting shall be published by the Department.

(3) Each school district and ESD shall:

(a) Permanently maintain accounting records of student enrollment, attendance, membership, resident/nonresident status, and such other student information as may be required, for each student enrolled in regular school programs operating during the regular school year. Such records shall utilize uniform definitions of each student measure as stated in this rule;

(b) Designate the residency for school purposes, subject to the provisions of ORS 327.006 and 339.133 of each student enrolled in the district;

(c) Have in operation an attendance accounting system which is adequately controlled and enables the district's chief administrator to certify in writing the accuracy of reported data;

(d) Report enrollment, attendance, membership, and such other information as the Superintendent may require, within 15 days of the end of the collection periods. Reports for the period ending the first school day in October shall be submitted no later than November 15.

(e) Retain daily source records of enrollment, membership and attendance for a period of no less than two years. Records, whether paper or electronic, must be maintained in an accessible format.

(4) Students shall be entered and withdrawn from the district roll as follows:

(a) A student shall be entered on the district active roll on the first day of the student's actual attendance. A student with an excused absence of less than ten school days at the beginning of the school year may be counted in membership prior to the first day of attendance if the status has been verified by contact with the parent or guardian. A student participating in the program of more than one instructional unit shall be entered on the active roll of that instructional unit in which 50 percent or more of the student's time is scheduled and the student shall not be entered on the roll of other instructional units;

(b) A student whose withdrawal status can be determined within ten school days of their first day of absence shall be marked as a withdrawal on the school day following that determination. A student must be withdrawn from the active roll on the day following the tenth consecutive full school day of absence but may be retained on the inactive roll at the district's option. A student must be present for at least one-half day in order to restart the count of consecutive days' absence. Under no circumstances shall a student who is absent for the first ten days at the beginning of the school year be counted in membership prior to the first day of school attendance. A student whose attendance is reported as hours of instruction must be withdrawn from the active roll on the day following the tenth consecutive day of absence from the program in which they are enrolled. A student must be present for at least one hour of instruction in order to restart the count of consecutive days’ absence. A student who is enrolled in dual programs and reported as both days present/days absent and hours of instruction must be withdrawn according to the instructional unit in which fifty percent or more of the student’s time is scheduled. Under no circumstance shall a student who is absent for the first ten days at the beginning of the school year be counted in membership prior to the first day of school attendance.

(5) Membership and attendance accounting in instructional units scheduled to operate a full school day shall be recorded as follows:

(a) A full-time equivalency (FTE) for each student on the active roll shall be determined. Students participating in more than one-half of the full-day program shall be given an FTE of 1.0. Students participating in one-half or less of the full-day program shall be given an FTE of .5. The FTE computation of students placed in community college programs by the local school district shall include time spent in the community college program:

(A) Kindergarten students shall be assigned an FTE of 1.0. The Department shall adjust the total days membership of kindergarten students reflecting the permissible percentage as stated in statute;

(B) Students participating in district supervised work-study programs may be credited as 1.0 FTE. If a student is released for work during school hours and the district assumes no supervisory responsibility for the time involved, that time shall not be counted as participation in the full-day program when determining the student's FTE.

(b) Membership of each student for the period shall be computed as follows: student FTE times days present plus student FTE times days absent equals total days membership of the student. The day upon which a student is marked as a withdrawal shall not be counted as a day of membership. A student not scheduled to attend daily shall be marked present or absent only on the days the student is scheduled to attend;

(c) Total days membership of the instructional unit shall be the total of days membership of all students on the active roll of the instructional unit as computed in subsection (b) of this section. The computation of total days membership of the instructional unit shall yield subtotals indicating grade placement and resident/nonresident status of student membership;

(d) The Department shall compute the ADM and ADA of resident students, nonresident students, and attending students for each instructional unit reporting and derive totals of such data for each local school district in the state, subject to the following procedures:

(A) ADM is the total days membership of an instructional unit during a specific reporting period divided by the number of days the instructional unit was in session during that reporting period. The ADM of groups of instructional units having varying lengths of terms shall be the sum of the ADMs obtained for the individual instructional units. If a district school board adopts a class schedule that operates throughout the year under the provisions of ORS 336.012 for all or any instructional units in the district, the computation shall be made so that the resulting ADM will not be higher or lower than if the local board had not adopted such a schedule;

(B) ADA is the total days attendance of an instructional unit during a specific reporting period divided by the number of days the instructional unit was in session during that reporting period. The ADA of groups of instructional units having varying lengths of terms shall be the sum of the ADAs obtained for the individual instructional units. If a district school board adopts a class schedule that operates throughout the year under the provisions of ORS 336.012 for all or any instructional units in the district, the computation shall be made so that the resulting ADA will not be higher or lower than if the local board had not adopted such a schedule.

(6) Students enrolled in programs operating less than the full school day and nonpublic school students attending public schools part time shall be accounted for as follows:

(a) The ADM of students enrolled in schools under provisions of ORS 336.135 and students enrolled in nonpublic schools or taught by private teacher or parent under ORS 339.035 shall be computed by multiplying total hours of instruction given all students during the reporting period by .167 and dividing the product by 73 for the July 1 to December 31 cumulative report and by 175 for the June 30 annual report;

(b) The ADM of students receiving tutorial instruction provided by licensed district staff shall be computed by dividing total number of hours of tutorial instruction given (not to exceed 5 hours per week for a single student) by 73 for the July 1 to December 31 cumulative report and by 175 for the June 30 annual report;

(c) The computation of ADM for each less than full-time program listed shall yield subtotals for resident and nonresident students;

(d) The ADM of students enrolled in less than full-time programs shall be reported to the Department for the period ending December 31 and for the year ending June 30.

(e) No more than five day's membership may be claimed for any student enrolled in any combination of programs during a one-week period.

(f) Kindergarten ADM will be adjusted by the Department to reflect the permissible percentage as stated in statute.

(7) A student enrolled in a public school district and receiving instruction in the district's comprehensive planned K-12 curriculum consistent with OAR 581-022-1210 and who is individually placed by the school district in an alternative education program under ORS 336.635 shall be accounted for as follows:

(a) The ADM of students enrolled in alternative programs scheduled to operate a full school day may be computed either on the basis of membership (section (5) of this rule) or on the basis of actual attendance (section (7)(b) of this rule);

(b) Equivalent ADM of students enrolled in alternative programs scheduled to operate less than full time shall be computed as follows:

(A) Equivalent ADM of students enrolled in large group instruction shall be computed by multiplying total hours of instruction given all students during the reporting period by a factor of .167 and dividing the product by 73 for the July 1 to December 31 period cumulative report and by 175 for the June 30 annual report;

(B) Equivalent ADM of students enrolled in intermediate group instruction shall be computed by multiplying the total hours of instruction given all students during the reporting period by a factor of .222 and dividing the product by 73 for the July 1 to December 31 period cumulative report and by 175 for the June 30 annual report;

(C) Equivalent ADM of students enrolled in small group instruction shall be computed by multiplying the total hours of instruction by a factor of .333 and dividing the product by 73 for the July 1 to December 31 period cumulative report and by 175 for the June 30 annual report;

(D) Equivalent ADM of students receiving individual instruction shall be computed by multiplying the total number of hours of tutorial instruction given by a factor of 1.0 and dividing the product by 73 for the July 1 to December 31 period cumulative report and by 175 for the June 30 annual report;

(E) Case management services (not limited to student contact) may be counted as large group instruction and constitute up to ten percent of equivalent ADM if specifically authorized by contract with the resident school district;

(F) Documented time in supervised work experience programs, supervised community service activities and supervised independent study, if performed as a part of the instructional programs designed to fulfill the student's educational goals, may be counted as large group instruction;

(G) Over any 20-day period, no more than 20 equivalent membership days may be claimed for any student receiving a combination of instructional services under paragraph (7)(b)(A), (B), (C) or (D) of this rule. Equivalent membership days for any student is equal to the hours of instruction given multiplied by the factor appropriate for the size of the instructional group.

(c) Students attending alternative programs part day and attending the home high school part day shall be reported by the home high school only, taking account of the total time spent in the alternative program and the home high school when determining FTE under section (5) of this rule;

(d) Students attending private alternative programs only, shall not be reported by the instructional unit placing the student for purposes of reporting membership or attendance.

(8) Each private alternative program shall:

(a) Maintain accounting records of student attendance, size of group attended, resident school district and such other student information as may be required by the contracting school district for each student attending the private alternative program;

(b) Report student name, dates served and hours served by group size to resident school district no less than twice yearly, once for the July 1 through December 31 period and an annual report ten days after the close of the school year; and

(c) Retain student attendance records for a period of no less than two years.

(9) Students in the following programs are not eligible to be counted in the resident average daily membership for purposes of ORS 327.013(7)(a):

(a) Students enrolled in special education programs under ORS 343.261, 343.961, and 346.010.

(b) Children enrolled in early intervention and early childhood special education programs under ORS 343.533;

(c) Students not receiving a free public education;

(d) Students in summer school programs;

(e) Students in adult education classes.

(10) Rules governing the reporting of students identified as dropouts are contained in the most recent edition of the Oregon Dropout Reporting Manual, published by the Oregon Department Education. The State Board of Education adopts the procedures in this publication to govern the reporting of dropouts by school districts.

(11) For the purposes of dropout reporting, the following shall apply:

(a) A student is considered enrolled when the student is present at school and attends more than half of a school day;

(b) Acceptable alternative programs are those programs providing activities meeting OAR 581-023-0008 and provided by public school districts, ESDs, community colleges or private alternative programs registered with the Oregon Department of Education under OAR 581-021-0072;

(c) An absence, explained or unexplained becomes a withdrawal after an absence of 10 consecutive days. A student must be present for at least one-half day in order to restart the count of consecutive days absence;

(d) Standards for excused absences must be developed by local districts. Policies shall clearly define excused and unexcused absences and ensure the health and safety of the child. Parents shall be informed of the policies at enrollment. Policy should address the documentation required.

(12) The Superintendent shall prescribe the applicable student accounting procedures for any programs or specific situations not covered by the provisions of this rule.

Stat. Auth.: ORS 326.310 & 327.125
Stats. Implemented: ORS 327
Hist.: 1EB 1-1981, f. 2-5-81, ef. 7-1-81; 1EB 14-1985, f. 7-3-85, ef. 7-5-85; 1EB 28-1986, f. & ef. 7-18-86; EB 17-1987, f. & ef. 8-4-87; EB 18-1987(Temp), f. & ef. 8-4-87; EB 33-1987, f. & ef. 12-11-87; EB 38-1988, f. & cert. ef. 9-22-88; EB 30-1992, f. & cert. ef. 10-14-92; EB 6-1996, f. & cert. ef. 4-25-96; ODE 3-2007, f. & cert. ef. 2-21-07; ODE 23-2008, f. 8-28-08, cert. ef. 8-29-08; ODE 26-2009, f. & cert. ef. 12-10-09

581-023-0008

Accountable Activities for Alternative Education Programs

(1) For purposes of determining class group size for alternative education programs, instruction must be provided by a teacher as defined in OAR 581-023-0006. For purposes of determining class group size, instruction may not be provided by an “Educational Assistant” or “Instructional Assistant” who provides support to a teacher.

(2) Alternative education programs must provide accountable activities. Accountable activities are defined as one or more of the following as approved by the school district by contract:

(a) Tutorial Instruction;

(b) Small group instruction;

(c) Large group instruction;

(d) Personal growth and development instruction;

(e) Counseling and guidance;

(f) Computer assisted instruction;

(g) Vocational training;

(h) Cooperative work experience and/or supervised work experience;

(i) Instructional activities provided by institutions accredited by the Northwest Association of Schools and Colleges;

(j) Supervised community service activities performed as part of the instructional program; and

(k) Supervised independent study in accordance with a student's educational goals including classroom or equivalent work supervised by school district officials that serve as one component of the student’s educational plan and profile and not the entire part. Examples of this include required and elective courses, supervised independent study, career-related learning experiences, and project based learning.

(3) Programs must provide instruction based on academic content standards adopted by the State Board of Education and must ensure students participate in district and state assessments of achievement for the grade level(s) the program serves and must:

(a) Assist the district in meeting its comprehensive K-12 instructional program in compliance with OAR 581-022-1210,

(b) Assist the district in awarding a High School Diploma according to ORS 329.451 and 581-022-1115, Modified Diploma described in OAR 581-022-1134, or Alternative Certificate described in 581-022-1135, to a student who completes the requirements established by the State Board of Education and the school district,

(c) Assist student in demonstrating Proficiency in Core or Academic Content Standards, and Essential Skills in accordance with OAR 581-022-1131,

(d) Provide evidence of academic progress included and maintained by the resident school district in the student's permanent record, as defined by OAR 581-021-0250,

(e) Provide a course of study and activities that are correlated with the academic content standards in accordance with OAR 581-022-1210,

(f) Provide National Education Statistics Course Codes and Descriptions for Secondary Courses where academic credit is offered,(4) Programs must provide teachers as defined in OAR 581-023-0006 and educational assistants as defined in ORS 342.120.

(g) Provide teachers as defined in OAR 581-023-0006 and educational assistants as defined ORS 342.120.

Stat. Auth.: ORS 36.051 & 336.635
Stats. Implemented: ORS 327.125 & 336.615 - 336.665
Hist.: EB 34-1987, f. & ef. 12-11-87; ODE 23-2008, f. 8-28-08, cert. ef. 8-29-08

581-023-0009

Small High School Grants

(1) For purposes of this rule, "small school district" and "small high school" are as defined in Chapter 670, Oregon Laws 2001.

(2) For fiscal years 2001-02 and 2002-03, the department shall award a base grant to each small school district with one or more small high schools that is equal to $200 per ADM in grades 9-12 of each small high school in the small school district. The Department of Education will distribute the grants no later than October 15 in each of the two fiscal years.

(3) For fiscal years 2001-02 and 2002-03, the department may annually award a needs grant to each small school district with one or more small high schools based on the financial needs of the district as described in Chapter 670, Oregon Laws 2001.

(4) Small school districts with small high schools may apply for a portion of the approximately $1 million to be distributed as needs grants each year.

(5) Grant applications must be received at the Department of Education no later than July 16, 2001 for a 2001-02 fiscal year grant and by January 15, 2002 for a 2002-03 fiscal year grant.

(6) The Department of Education will distribute the grants no later than October 15 in each of the two fiscal years. Any moneys remaining after awarding base grants and needs grants shall be divided per ADM among all small school districts with small high schools and added to the amount of each small school district's base grant. Any necessary adjustments will be made on May 15 of the fiscal year, with final adjustment to be made in the following year.

(7) The Department of Education will convene a task force, including, but not limited to Department and school district staff, to advise the department on the equitable distribution of funds.

(8) The task force will assign equal weight to the following three criteria for determining the financial needs of the district:

(a) The number of ADM in the small school district with smaller high schools receiving a greater preference;

(b) Whether ADMw in the small school district has declined in the past three years and the degree to which the enrollment is declining;

(c) The ratio of licensed staff to students in the small school district in the previous two years, adjusted to reflect the need for lower staffing ratios in smaller high schools.

(9) In addition, the task force will consider the following criteria in determining the distribution of funds:

(a) The fund balance and percentage of funds available to the small school district at the end of the fiscal year according to the district's most recent audit. Districts with significant fund balances as compared to annual expenditures may receive lower preference; districts with fund balances greater than 40% of annual expenditures will not be considered;

(b) The resources projected to be available to the small school district from an education service district for the fiscal year. Districts with ESD support greater than $1,000 per ADMw will receive a lower preference;

(c) Extraordinary circumstances affecting a district's capacity to provide instructional services; and

(d) The task force will give preference to requests for funding for high school instructional programs.

(10) The State Superintendent of Public Instruction shall resolve any issues arising from the administration of the small high schools grants not specifically addressed by this rule and the Superintendent's determination shall be final.

(11) This rule will be repealed on June 30, 2003.

Stat. Auth.: ORS 327.013, SB 519 2001
Stats. Implemented: ORS 327.013
Hist.: ODE 20-2001(Temp), f. & cert. ef. 10-15-01 thru 4-4-02; ODE 30-2001, f. & cert. ef. 12-20-01

581-023-0015

Additional Remote Small Elementary School and Small High School Weightings

(1) Qualifications for remote small elementary school or small high school status for school districts organized in a manner other than 1 through 8 and 9 through 12:

(a) When grades 1–12 are located in the same building or in adjacent buildings, the Department of Education shall consider these schools to be organized on a 1–8 and 9–12 basis for remote small elementary school and small high school correction purposes;

(b) In school districts where grades 1–12 or portions thereof are located in geographically separated buildings, the Department of Education shall consider these schools to be organized for remote small elementary school and small high school correction purposes in the same manner as the school district boards considers these schools to be organized.

(2) The Department shall measure distances for remote small elementary school qualification and calculation of additional weighted average daily membership based on the closest, reasonable and prudent access point of an elementary school to the closest, reasonable and prudent access point of the nearest elementary school over the shortest practicable route on maintained public roadways.

(3) The additional weighting for each school qualifying as a remote small elementary school or a small high school shall be calculated based on the applicable formula stated in ORS 327.077.

(4) Questions regarding the administration of the remote small elementary school weighting and small high school weighting not specifically addressed by this rule shall be resolved by the State Superintendent of Public Instruction and the Superintendent's determination shall be final.

(5) The provisions of this administrative rule shall apply to the apportionment of the State School Fund for 2011–12 and subsequent years.

Stat. Auth.: ORS 327.125
Stats. Implemented: ORS 327.077 & 327.125
Hist.: 1EB 118, f. 11-28-67, ef. 12-25-67; 1EB 134, f. 6-26-72, ef. 7-15-72; 1EB 211, f. 1-19-76, ef. 2-11-76; 1EB 267, f. & ef. 11-8-77; 1EB 42-1978, f. 10-31-78, ef. 11-1-78; 1EB 1-1979, f. & ef. 1-30-79; 1EB 11-1980, f. & ef. 5-5-80; 1EB 10-1982, f. & ef. 3-24-82; 1EB 20-1982, f. & ef. 11-23-82; EB 6-1996, f. & cert. ef. 4-15-96; ODE 37-2013, f. & cert. ef. 12-18-13

581-023-0018

Resident Enrollment and Resident Average Daily Membership by County Lines

To provide a basis for budgeting purposes and for final distribution of the Common School Fund and the County School Fund to the school districts, the following procedure shall be followed:

(1) Each school district shall report to the Oregon Department of Education the resident county of each student in the district’s reports of enrollment, attendance, and membership. The resident county for each pupil shall be the county in which the student resides, regardless of where the student may attend school. Such reports shall be due within 15 days after the close of the respective periods.

(2) The Department of Education will calculate by county the resident average daily membership (ADM — As defined in ORS 327.006) of the joint districts based on the county of residence for each pupil as reported by each district.

(3) By March 15 the Department of Education will certify to each Education Service District (ESD) or county school district the December 31 report of resident ADM by county lines. These data are to be used for purposes of budgeting each district's share of estimated receipts from the Common School Fund and the County School Fund.

(4) By November 1, the Department of Education will certify to each ESD or county school district the June 30 report of resident ADM by county lines. These data are to be used for purposes of final distribution to the districts of the Common School Fund and the County School Fund.

Stat. Auth.: ORS 326.051
Stats. Implemented: ORS 327.125 & 327.420
Hist.: 1EB 234, f. & ef. 6-18-76; 1EB 12-1981, f. 5-22-81, ef. 7-1-81; ODE 26-2009, f. & cert. ef. 12-10-09

581-023-0019

School Census

(1) By January 1 of each year, the Center for Population Research and Census certifies to the Oregon Department of Education and to the administrative office of each county an estimate of the population of each county between the ages of 4 and 20, as of October 25 of the previous year. This census is used as the basis for the apportionment of the distributable income account of the Common School Fund to the counties by the Division of State Lands, and also as the basis for determining the amount of the County School Fund mandated levy by the administrative office of each county.

(2) In order to satisfy statutory references to "school age children" or "school census," an estimated census for all common (unified and elementary) school districts shall be computed in the following manner:

(a) The Department of Education shall prorate the annual estimated school census of the state to each education service district or county school district in the same proportion as each education service district's or county school district's resident average daily membership (as defined in ORS 327.006) for the previous June 30 bears to the total resident average daily membership of the state. This census is certified by the Department of Education to each education service district or county school district by January 31 of each year;

(b) Each education service district or county district shall then prorate this school census to the common school districts within its jurisdiction according to the plan approved by the Superintendent of Public Instruction prior to January 1, 1973. Such distribution is to be reported by the education service district or county school district to the districts and the Department of Education by March 15 of each year. This district census is used only for satisfaction of the above mentioned statutory references, and is not used for the distribution of any funds.

Stat. Auth.: ORS 326 & ORS 327
Stats. Implemented: ORS 326.355
Hist.: 1EB 234, f. & ef. 6-18-76; 1EB 14-1985, f. 7-3-85, ef. 7-5-85

581-023-0022

Funding for Youth Corrections and Juvenile Detention Education Programs

(1) The following definitions shall apply for purposes of calculating the State School Fund distribution to the Youth Corrections Education Program and Juvenile Detention Education Program:

(a) "Statewide Average General Purpose Grant per ADMw" means the aggregate general-purpose grants for all school districts divided by total ADMw for all school districts;

(b) "ADM" means average daily membership as calculated based on the procedures and definitions in OAR 581-023-0006.

(2) If in any fiscal year the General Purpose Grant cannot be calculated as a result of temporary changes to the State School Fund distribution formula, the General Purpose Grant per ADMw shall be the same amount as in the last fiscal year that this factor was calculated.

(3) The amount of the distribution from the State School Fund shall be calculated using the following formulas:

(a) For the Youth Corrections Education Program, the amount shall be equal to the product of the Youth Corrections Education Program ADM times 2.0 times Statewide Average General Purpose Grant per ADMw.

(b) For the Juvenile Detention Education Program, the amount shall be equal to the product of the Juvenile Detention Education Program ADM times 1.5 times Statewide Average General Purpose Grant per ADMw.

(4) Based on estimates of the distribution calculated in section (3) of this rule, funds shall be transferred to the Youth Corrections and Juvenile Detention Education Program approximately 35 percent on the 15th day of each of the months of July and October, 15 percent on the 15th day of January, and the balance on April 15.

(5) Adjustments to reflect actual Youth Correction Education Program ADM, Juvenile Detention Education Program ADM, and the actual Statewide Average General Purpose Grant per ADMw shall be made on May 15 of the subsequent fiscal year.

Stat. Auth.: ORS 420.405
Stats. Implemented: ORS 327.026
Hist.: EB 9-1995, f. & cert. ef. 4-27-95; EB 6-1996, f. & cert. ef. 4-25-96; EB 8-1997, f. & cert. ef. 6-9-97; ODE 14-1998(Temp), f. & cert. ef. 6-29-98 thru 12-25-98; ODE 12-1999, f. & cert. ef. 6-24-99; ODE 26-2001, f. & cert. ef. 11-7-01

581-023-0035

Budgeting and Accounting for Schools

Rules governing the budgeting and accounting systems for schools and the school systems of accounts are contained in Chapter 2 of the Program Budgeting and Accounting Manual, published by the Oregon Department of Education. The State Board of Education adopts this publication to govern budgeting and accounting systems for schools.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 326.051 & 327.125
Stats. Implemented: ORS 294.356 & 327.125
Hist.: 1EB 163, f. 2-20-74, ef. 3-15-74; 1EB 234, f. & ef. 6-18-76; 1EB 23-1980(Temp), f. & ef. 9-2-80; 1EB 27-1980, f. & ef. 11-7-80; EB 12-1987, f. & ef. 7-10-87; ODE 5-1999, f. & cert. ef. 1-12-99; ODE 5-2001, f. & cert. ef. 1-29-01; ODE 3-2003, f. & cert. ef. 3-10-03; ODE 2-2007, f. & cert. ef. 1-26-07; ODE 5-2008, f. & cert. ef. 2-22-08

581-023-0036

Factors for when audit initiated by Department

(1) Pursuant to ORS 327.141, the Department of Education shall use the following factors to determine whether to initiate a financial audit or a performance audit of a school district or an education service district:

(a) Total annual expenditures of district.

(b) Total full time equivalent employees of district.

(c) The district’s annual financial audit, including any findings it contains.

(d) Any other audits, reviews or reports indicating inappropriate, inefficient or ineffective operations or business practices at one or more school districts or education service districts.

(e) A request from the Governor.

(f) A request from a member or committee of the Oregon Legislature.

(g) A request from a school district or education service district.

(h) A request from a member of the public.

(2) The Department shall weigh these factors when determining whether to initiate an audit.

(3) The Department shall forward a copy of any audit conducted as provided in ORS 327.141 to:

(a) The school district or education service district that is the subject of the audit;

(b) The requestor of the audit; and

(c) Any other entity that either the Department determines would benefit from review of the audit or that has requested a copy of the audit.

Stat. Auth.: ORS 327.141
Stats. Implemented: ORS 327.141
Hist.: ODE 26-2012, f. 9-13-12, cert. ef. 9-17-12

581-023-0037

Audit Statement of Revenue and Expenditure Accounts by Fund

(1) Following the end of each fiscal year, each school district shall complete or have completed forms provided by the Department of Education for the purpose of summarizing district revenues and expenditures by fund for the fiscal year ending June 30.

(2) The data so prepared shall be audited and incorporated as part of the district's financial report.

Stat. Auth.: ORS 327
Stats. Implemented: ORS 327.125 & ORS 327.137
Hist.: 1EB 17-1978, f. 4-21-78, ef. 5-4-78

581-023-0038

Audit Requirements for School Food and Nutrition Services

(1) Following the end of each fiscal year, each school district participating in the federally funded School Food and Nutrition Services shall complete forms provided by the Oregon Department of Education for the purpose of summarizing district revenues and expenditures of their nonprofit school food service.

(2) The data included in the form shall be audited and incorporated as part of the district's financial report which is submitted to the Department of Education.

(3) If a district's food and nutrition services account demonstrates the net cash resources exceeds three months average expenditures, the Department will request a corrective action plan to reduce the excess cash resources.

Stat. Auth.: ORS 326 & ORS 327
Stats. Implemented: ORS 327.137
Hist.: EB 39-1990, f. & cert. ef. 7-10-90

581-023-0040

Approved Transportation Costs for Payments from the State School Fund

(1) Definitions for the purpose of this rule:

(a) "Elementary School Student" means, notwithstanding any other OAR or statute, pupils attending a school offering only an elementary curriculum, any combination of grades K through 8;

(b) "Secondary School Student" means, notwithstanding any other OAR or statute, pupils attending a school offering any secondary curriculum for grades 9, 10, 11, or 12. Additionally, all students attending a school designated by the local school board through board action as a junior high school or middle school may be considered secondary students;

(c) "Local School Board" means, notwithstanding any other OAR or statute, the local school board for the district in which the student's legal residence is physically located. Local school boards are not required to provide transportation for students who have requested and received approval to attend a school other than that designated by the local school board for students living in their specified attendance area;

(d) "Manufacturer's Rated Capacity" means the number of students to be used in the calculations specified in paragraph (5)(n)(B) of this rule and described below:

(A) Buses transporting only elementary students will have a passenger capacity as stated on the manufacturer's identification plate;

(B) Buses transporting only high school students, grades 9 through 12 will have a passenger capacity based on two students for each 39 inch bus seat;

(C) Buses transporting mixed groups from grades K-12 (in any combination) or groups of only junior high or middle school students will have a passenger capacity based on 2.5 students for each 39-inch bus seat.

EXAMPLE: A bus with a manufacturer's passenger capacity stated on the identification plate of 72 would have the following ratings: elementary — 72, high school only — 48, mixed groups — 60, middle school and junior high school — 60.

(e) "Mile(s) from School" means the distance a student lives from school, measured from the closest, reasonable, and prudent point between the school property identified by the local board for that pupil's attendance and the property where the pupil lives. The distance will be measured over the shortest practicable route on maintained public roadways or over existing pedestrian facilities or pedestrian facilities capable of meeting the requirements listed in ORS 332.405(4);

(f) “Patron” means any individual, organization, or entity that is able to use student transportation services except for charter schools (as defined in ORS 338) reimbursing school districts up to one hundred percent (100%) of incurred transportation costs pursuant to ORS 338.145.

(g) "Supplemental Plan" means a plan adopted by local school board resolution identifying groups or categories of students who live within the 1 and 1.5 mile limitations and require transportation based on health or safety reasons, including special education. Supplemental plan approvals may be ordered by the State Board of Education or its designated representatives. The State Board shall have the right of final review of any actions regarding supplemental plans. Appeals will be directed to the State Board for final consideration. The Plan must include the following:

(A) The approximate number of students to be transported based on the plan;

(B) The health or safety reasons cited for providing transportation;

(C) The local board resolution specifying the supplemental plan as submitted; and

(D) Any additional information or documentation supporting the supplemental plan deemed appropriate locally.

(2) Approved transportation costs shall include those costs incurred in transporting pupils to and from instructional programs during the regularly scheduled school term within the limitations specified by ORS 327.006 and 327.033. Approved transportation costs may include costs incurred in transporting students participating in extended school year programs eligible for funding from the State School Fund.

(3) Approved transportation costs shall include those district expenditures associated with:

(a) Home-to-school transportation of elementary school pupils who live at least one mile from school;

(b) Home-to-school transportation of secondary school pupils who live at least one and one-half miles from school;

(c) Transportation of pupils between educational facilities either within or across district boundaries, if the facilities are used as part of the regularly-scheduled instructional program approved by the Board;

(d) Transportation of pupils for in-state field trips when such represents an extension of classroom activities for instructional purposes, and shall include out-of-state destinations within 100 miles of the Oregon border;

(e) Transportation of pupils home to school for whom a supplemental plan has been approved by the State Board of Education in addressing safety, health, and special education needs;

(f) Transportation of preschool children in Early Childhood Special Education Services having an Individual Family Service Plan requiring transportation and preschool children receiving Early Intervention Services under the authority of ORS 343.533.

(g) School to home transportation following extended school day instructional programs for:

(A) Elementary school pupils who live at least one mile from school;

(B) Secondary school pupils who live at least one and one-half miles from school.

(4) Approved transportation costs shall exclude those district expenditures associated with transportation for the following unless the school program is required under provisions of the Individuals with Disabilities Education Act, ORS 343.533 or 339.010 through 339.090 and 339.250:

(a) Pupils living within the limits prescribed in ORS 327.006(2) for whom no supplemental plan has been approved by the State Board;

(b) Activity trips other than for instructional purposes;

(c) Athletic trips;

(d) School lunch purposes;

(e) Summer school;

(f) Adult education;

(g) Evening school;

(h) Preschool and/or nursery school;

(i) Board and room in lieu of transportation associated with field trips;

(j) Transportation facility and staff costs other than those directly related to approved pupil transportation activities.

(5) The computation shall be made as follows:

(a) Pupil Transportation Salaries;

(b) Pupil Transportation Supplies, Equipment, Repairs, and Maintenance;

(c) All contracted Transportation;

(d) Travel of Pupil Transportation Personnel;

(e) Employee Benefits on Pupil Transportation Salaries;

(f) Pupil Transportation Insurance;

(g) Payments in Lieu of Transportation;

(h) Other Expenses of Pupil Transportation;

(i) Payments to Other Districts for Pupil Transportation;

(j) Leases and Rentals;

(k) Depreciation:

(A) Depreciation of Garage, but this shall not include land;

(B) Depreciation of Buses that are used at least 50% for reimbursable mileage.

(C) Shall include the costs to retrofit, as defined in ORS 468A.795, or to replace school buses for the purpose of reducing or eliminating diesel engine emissions, except that these costs may not include the costs paid with moneys received from the state by a school district from the Clean Diesel Engine Fund that are described in ORS 468A.801 (2)(a) to retrofit or to replace school buses for the purpose of reducing or eliminating diesel engine emissions.

(l) Total of subsections (5)(a) through (k) of this rule;

(m) Deduct (if cost is included in detail above):

(A) Payments Received from Other Districts and from Patrons for reimbursable transportation;

(B) Nonreimbursable Transportation Costs:

(i) For 2009-10:

(I) Number of miles @ $2.02 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity greater than 20 persons including driver, or

(II) Number of miles @ $1.01 per mile for all school activity vehicles having a manufacturers' designed passenger capacity 20 or less including driver;

(ii) For 2010-11:

(I) Number of miles @ $2.04 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity greater than 20 persons including driver, or

(II) Number of miles @ $1.02 per mile for all school activity vehicles having a manufacturers' designed passenger capacity 20 or less including driver; or

(iii) For 2011-12:

(I) Number of miles @ $2.07 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity greater than 20 persons including driver, or

(II) Number of miles @ $1.04 per mile for all school activity vehicles having a manufacturers' designed passenger capacity 20 or less including driver;

(iv) For 2012-13:

(I) Number of miles @ $2.10 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity greater than 20 persons including driver, or

(II) Number of miles @ $1.06 per mile for all school activity vehicles having a manufacturers' designed passenger capacity 20 or less including driver; or

(v)(I) Those local school board certified marginal costs attributable to services described in section (4)(a) of this rule, calculated and documented as follows: Documentation maintained by local district shall include: bus and route identification, school(s) being served, number of eligible students on board, number of ineligible students on board;

(II) Calculation of marginal costs shall be as follows: District Cost Per Mile of bus operation divided by the total number of students transported on each bus to derive an average cost per student. The cost per student multiplied by the number of ineligible students and the number of miles inside the limits provides the amount for deduction. Example: Cost per student = district cost per bus mile - number of students on bus; Total Deduction = cost per student x ineligible students x number of miles inside limit.

(III) No deduction will be made for transportation inside prescribed limits if the local board certifies student demographics would require student bus rides to or from school of more than one hour if the bus is routed in a manner making it accessible to the number of eligible students living outside the prescribed mileage limit equal to 130 percent of the bus manufacturer's rated capacity; or

(IV) The local school board certifies that buses are routed in a manner to serve at least the number of eligible students living outside the prescribed mileage limits equal to 130 percent of the bus manufacturer's rated passenger capacity; and

(V) In either of the aforementioned situations, no additional costs have been incurred by the district for the identified service.

(C) State and Federal Receipts for Transportation, except those apportioned under ORS 327.006 or third party Medicaid payments for transportation, if used to support expenditures in subsections (5)(a) through (l) of this rule;

(D) Rental or Lease Payments from Private Contractors;

(E) The percentage of transportation facility depreciation commensurate with the percentage of the total district fleet value based upon purchase price (see subsection (6)(k) of this rule) represented by nonpupil transportation equipment. Examples of nonpupil transportation equipment would include the following: lawnmowers, tractors, backhoes, trucks, pickups, cars, trailers, snow blowers, etc.

(n) Total Deductions ((5)(m)(A)+(m)(B)+(m)(C)+(m)(D)+ (m)(E));

(o) Approved Cost ((5)(l) minus (5)(n)).

(6) In the above computation, the following definitions apply:

(a) Pupil Transportation Salaries. Salaries and wages paid school bus drivers, assistants to driver, and that portion of salaries paid mechanics and other bus maintenance employees, supervisors of transportation, secretarial and clerical assistants, and persons assigned transportation oversight and coordination responsibilities attributable to the transportation program and documented through position descriptions and payroll records. No school district General Administration salaries may be included in this area;

(b) Pupil Transportation Supplies, Equipment, Repairs, and Maintenance. Costs of fuel, oil, lubricants, tires, tire repair, batteries, vehicle diagnosis and repair equipment identified as capital expenditures in the "Program Budget Manual," vehicle repair parts and supplies, repair of vehicles by other than the school district, garage maintenance and operation, and garage equipment repair and maintenance;

(c) All Contracted Transportation. Payments to parents and independent public or private contractors for transporting pupils from home to school, between educational facilities and for nonreimbursable activities enumerated in paragraph (6)(l)(B) of this rule; and fares to public carriers for transporting pupils from home to school and between educational facilities:

(A) If a district retains ownership of buses and garages and contracts for the operation of the transportation system with provision in the contract for lease or rental of the buses and garages, the contracted transportation cost shown should reflect the gross bid including the lease or rental payment. The lease or rental payment shall be deducted in the computation as reported in paragraph (5)(n)(D) of this rule;

(B) If the district retains ownership of buses and garages and participates in a transportation cooperative or consortium through an intergovernmental agreement, depreciation apportionment provided under ORS 327.033 will be disbursed directly to the district. No depreciation component is approved for cooperative-owned buses or garages.

(d) Travel of Pupil Transportation Personnel. Meals, lodging, mileage, per diem and other travel expenses of pupil transportation personnel, and private car mileage if paid to bus drivers for travel to and from the point where school bus is parked if other than the central garage. The same travel expenses plus tuition or registration are included for attendance at Department of Education sponsored or presented pupil transportation training programs and seminars;

(e) Employee Benefits on Pupil Transportation Salaries. The district's contributions for employee benefits including social security and retirement, employee health insurance, workers' compensation, and unemployment insurance;

(f) Pupil Transportation Insurance. Payments for public liability and property damage, medical care, collision, fire and theft, and insurance on garages and shops;

(g) Payments in Lieu of Transportation. Payments for pupils' board and room in lieu of transportation, consistent with ORS 332.405(2);

(h) Other Expenses of Pupil Transportation. District-paid fees for school bus drivers' physical examinations; interest on bus or garage contracts payable including lease-purchase agreements if capitalized (see subsection (6)(k) of this rule);

(i) Payments to Other In-State or Out-of-State Districts for Transportation. Payments to other districts for approved pupil transportation costs;

(j) Leases and Rentals. Rental or lease payments for the use of land or buildings used for approved pupil transportation. Rental or lease payments for buses operated by district personnel for approved pupil transportation.

NOTE: Only those leases which do not contain an option to purchase or application of rentals to purchase should be included in subsection (5)(j) of this rule. See subsection (6)(k) of this rule as to the proper treatment of other lease-purchase agreements.

(k) Depreciation. For purposes of computing depreciation, capitalized cost is defined to include the unit cost of the asset, exclusive of interest, for such assets purchased outright, by conventional contract, or by lease-purchase agreement if such agreement contains any provision to acquire ownership at the end of the agreement by application of a portion of the rentals paid or a terminal payment. The computation of the capitalized cost and the depreciation shall be according to the following:

(A) Portions of Garages and Other Buildings Used for Approved Pupil Transportation:

(i) Outright purchase (including purchase by conventional contract). For each outright purchase or purchase by conventional contract, each district shall report to the Oregon Department of Education, on the forms provided, the unit cost of the garage or other building purchased and the dollar amount of interest payments associated with such purchase. The purchase of land shall not be included in the Garage Depreciation. The capitalized value shall represent the unit cost, exclusive of interest. Depreciation shall be computed at an annual rate of four percent;

(ii) Lease-purchase agreements. For each lease-purchase agreement, the district shall report to the Oregon Department of Education, on the forms provided, the dollar amount of the agreement, the interest payments contained in the agreement, and the schedule of such interest payments contained in the agreement. Land shall not be included in the lease purchase agreement for the purpose of reimbursement. Subsequent to July 1, 1975, the capitalized value shall represent the lease-purchase price less any interest payments contained in the agreement. Depreciation shall be computed at an annual rate of four percent.

(B) Buses and Other Vehicles Used for Approved Pupil Transportation:

(i) Outright purchase (including purchase by conventional contract). For each outright purchase or purchase by conventional contract, each district shall report to the Oregon Department of Education, on the forms provided, the unit cost of the vehicle(s) purchased and the dollar amount of interest payments associated with such purchase. The capitalized value shall represent the unit cost, exclusive of interest. Depreciation shall be computed at an annual rate of ten percent;

(ii) Lease-purchase agreements. For each lease-purchase agreement, the district shall report to the Oregon Department of Education, on the forms provided, the dollar amount of the agreement, any applicable trade-in value, the dollar amounts of interest payments contained in the agreement, and the schedule of such interest payments contained in the agreement. The capitalized value of the vehicles shall represent the lease-purchase price including the trade-in allowance less interest payments contained in the agreement. Depreciation shall be computed at an annual rate of ten percent;

(iii) Lease agreements. If the district is leasing its buses under a lease agreement, the district shall report the annual lease cost. A lease agreement as used in this paragraph means an agreement whereby the lessor retains title to the buses being leased to the lessee school district and the title to the buses is never received by the lessee. Under such a lease agreement, the use of the buses by the lessee is limited by the term of the lease. If there is an auxiliary agreement either written or oral whereby at the end of the lease term, the title of the buses shall pass to the lessee school district, the agreement is not a lease agreement as described in this paragraph but is a lease-purchase agreement as outlined in subparagraph (ii) of this paragraph. The lease payment made by a school district obtaining the use of buses pursuant to a lease as defined in this paragraph shall be used in the computation of the reimbursement in place of the depreciation set forth in subparagraphs (i) and (ii) of this paragraph.

(l) Deductions:

(A) Payments Received from Other Districts and from Patrons. Money received from other school districts, parents, guardians, or students for transportation if paid in support of expenditures listed in subsections (5)(a) through (l) of this rule;

(B) Nonreimbursable Transportation Costs. Actual bus mileage of excludable trips shall include the actual mileage in district owned or contracted buses for transportation for activity trips, athletic trips, school lunch purposes, summer school, adult education, evening school, nursery school, and any other nonreimbursable purposes. Such mileage shall be deducted at the rate indicated in subsection (5)(m)(B) of this rule. The rate of deduction may be reviewed periodically by the State Board of Education and adjusted accordingly;

(C) State and Federal Receipts for Transportation. All state and federal receipts for transportation expenditures, exclusive of funds apportioned under ORS 327.006 and 327.033, that have been included in subsection (5)(a) through (l) of this rule;

(D) Rental or Lease Payments from Private Contractors. Payments received from private contractors for the use of district owned buses and garages in the operation of the pupil transportation system by the private contractor. This item must be shown as Revenue Code 1930 in the school district audit and the gross payments to the contractor must be included in subsection (5)(c) of this rule.

(7) Each district shall maintain a record, by purpose, of total pupil transportation miles and shall submit a report of such to the Oregon Department of Education on the form provided. The accuracy of such records shall be certified by the district clerk.

(8) If an education service district offers a special service under the provisions of section (4) of ORS 334.175, including home-to-school transportation that would qualify for reimbursement under the provisions of ORS 327.006 if provided by a local school district, the following procedure in crediting the transportation expenditure to the local district may be employed:

(a) The education service district shall compute approved home-to-school transportation costs as provided in section (4) of this rule;

(b) The approved costs so determined shall be billed to and paid by each of the local school districts. The expenditure shall be accounted for by the local district as a transportation expenditure paid to another education agency;

(c) The audited district expenditure shall be recognized by the State Superintendent of Public Instruction in computing the local district's entitlement under ORS 327.006;

(d) If the education service district reimburses the local district the difference between that portion billed and that paid under ORS 327.006, such reimbursement — if derived from property tax sources by education service district resolution — shall not be deducted by the state in determining the local district's approved costs. The local district shall account for the education service district reimbursement as other general receipts are accounted for from the education service district.

(9) For purposes of computing board and room entitlement for a district operating a dormitory under provisions of ORS 327.006, the state assumes responsibility for its proportionate share of costs associated with the provision of food, facilities, staff, operation, and maintenance necessary to provide students with safe and healthy living conditions. The state does not assume responsibility for costs associated with recreation or entertainment of students. The approved cost against which the computation is made for state liability shall not exceed the limit stated in ORS 332.405. In addition, the state will assume its proportionate share of the cost of field trips as defined in subsection (3)(c) of this rule.

(10) The computation of approved expenditures for board and room entitlement shall be made as follows:

(a) Salaries;

(b) Operation:

(A) Utilities;

(B) Supplies;

(C) Other Operational Costs.

(c) Maintenance:

(A) Upkeep;

(B) Replacement.

(d) Fixed Charges:

(A) Employee Benefits;

(B) Other Fixed Charges.

(e) Food;

(f) Operation of Buses and Other Vehicles — Supplies, Repairs and Maintenance;

(g) Depreciation:

(A) Dormitory;

(B) Buses and Other Vehicles.

(h) Total Expenditures (Sum of subsections (10)(a) through (g) of this rule));

(i) Deductions (subtract if cost is included in cost above):

(A) Payments Received from Other Districts and from Patrons;

(B) Nonreimbursable Transportation Costs as indicated in subsection (5)(m)(B) of this rule;

(C) State and Federal Receipts for Transportation, except those apportioned under ORS 327.006, 327.033, or third party Medicaid payments, if used to support expenditures in subsections (10)(a) through (g) of this rule;

(D) Federal School Lunch, Breakfast, and Milk Reimbursements;

(E) Sales of Food.

(j) Total Deductions (sum (10)(i)(A) + (i)(B) + (i)(C) + (i)(D) + (i)(E));

(k) Approved Cost ((10)(h) minus (10)(j) of this rule).

(11) The items included in the board and room entitlement computation are defined as follows:

(a) Salaries. Salaries and wages paid dormitory personnel, including the dormitory manager, cooks, custodians, and other personnel directly concerned with operation of the dormitory, and that portion of salaries paid secretarial and clerical assistants and other personnel attributable to the dormitory program;

(b) Operation:

(A) Utilities. Heat for buildings, water and sewage, electricity, telephone, and other utilities necessary for the operation of the dormitory;

(B) Supplies. Custodial supplies, supplies for care of grounds, linens, and other supplies necessary for the operation of the dormitory including food services. Purchase of food is included in subsection (11)(e) of this rule;

(C) Other Operational Costs. Contracted custodial services, window washing, laundry or linen services, etc., necessary for the operation of the dormitory.

(c) Maintenance:

(A) Upkeep. Expenditures associated with maintaining the existing dormitory facilities in a safe, healthy, and efficient condition, including supplies and materials for upkeep of dormitory grounds and the dormitory building. Costs associated with maintenance of recreational or entertainment facilities are excluded;

(B) Replacement of Equipment. Expenditures associated with replacing equipment necessary to the safe, healthy, and efficient operation of the dormitory. Replacement of equipment used for recreational or entertainment purposes are excluded.

(d) Fixed Charges:

(A) Employee Benefits. Expenditures for dormitory employees' benefits including social security and retirement, employee health insurance, workers' compensation, and unemployment insurance;

(B) Other Fixed Charges. Expenditures for property insurance, liability insurance, rental of land and buildings for purposes associated with operation of the dormitory, and other fixed charges directly attributable to operation of the dormitory.

(e) Food. Expenditures for food necessary for the operation of the dormitory;

(f) Operation of Buses and Other Vehicles — Supplies, Repairs, and Maintenance. Expenditures for fuel, oil, lubricants, tires, tire repair, batteries, vehicle repair parts and supplies, repair of vehicles by other than the school district, garage maintenance and operation, and garage equipment repair and maintenance necessary for the operation of buses utilized for purposes stated in section (3) of this rule and of other vehicles necessary for the operation of the dormitory;

(g) Depreciation:

(A) Dormitory. For purposes of computing dormitory depreciation, capitalized cost is defined as the unit cost of the asset (including the cost of original equipment), exclusive of interest, plus the cost of substantial improvements or remodeling. The purchase of land shall not be included. Costs associated with providing recreational or entertainment facilities are not included. Depreciation shall be computed at an annual rate of four percent;

(B) Buses and Other Vehicles. Depreciation for buses used for approved pupil transportation and that portion of other vehicles necessary for operation of the dormitory shall be computed in accordance with the formula and definition stated in paragraph (6)(k)(B) of this rule.

(h) Total. Sum of subsections (10)(a) through (g) of this rule;

(i) Deductions:

(A) Payments Received from Other Districts and from Patrons. Money received from other school districts, parents, guardians, or students for transportation or room and board if paid in support of expenditures listed in subsections (10)(a) through (f) of this rule;

(B) Nonreimbursable Transportation Costs. Costs for nonreimbursable transportation according to the formula and definition stated in paragraph (6)(l)(B) of this rule;

(C) State and Federal Receipts for Transportation. All state and federal receipts for transportation or room and board expenditures exclusive of funds apportioned under ORS 327.006 that have been included in subsections (10)(a) through (f) of this rule;

(D) Federal School Lunch, Breakfast, and Milk Reimbursements. All federal receipts for school lunch, breakfast, and milk expenditures that have been included in subsections (10)(a) through (f) of this rule;

(E) Sales of Food. Money received from teachers, students, or other individuals from food sales for which the expenditures are included in subsections (10)(a) through (f) of this rule.

(12) Such items of expenditure as may be questionable in applying the policy stated in this administrative rule shall be resolved by the State Superintendent of Public Instruction and such determination shall be final.

(13) Apportionment of the State School Fund for 2001–02 and subsequent years.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 327.013 & 820.100 - 820.120
Stats. Implemented: ORS 327.013 & 820.100 - 820.120
Hist.: 1EB 177, f. 10-2-74; 1EB 181, f. 1-17-75, ef. 7-1-75; 1EB 209, f. 12-5-75, ef. 1-16-76; 1EB 220, f. 2-17-76, ef. 3-15-76; 1EB 233, f. 6-11-76, ef. 6-18-76; 1EB 4-1978, f. 1-27-78, ef. 1-27-78; 1EB 10-1980, f. & ef. 5-5-80; 1EB 6-1981, f. 3-2-81, ef. 3-3-81; 1EB 4-1982, f. & ef. 2-10-82; 1EB 15-1982, f. 8-4-82, ef. 8-5-82; 1EB 17-1983, f. 11-23-83, ef. 11-25-83; 1EB 1-1985, f. 1-4-85, ef. 1-7-85; 1EB 5-1986, f. 1-30-86, ef. 2-1-86; EB 4-1987, f. & ef. 2-20-87; EB 32-1987, f. & ef. 12-10-87; EB 42-1988, f. & cert. ef. 11-15-88; EB 3-1992, f. & cert. ef. 2-21-92; EB 21-1993, f. & cert. ef. 6-2-93; EB 4-1997, f. & cert. ef. 4-25-97; ODE 9-2000, f. & cert. ef. 4-5-00; ODE 25-2001, f. & cert. ef. 11-7-01; ODE 9-2003, f. & cert. ef. 6-13-03; ODE 10-2006, f. & cert. ef. 2-21-06; ODE 8-2008, f. & cert. ef. 3-21-08; ODE 6-2010, f. & cert. ef. 4-26-10; ODE 22-2011, f. & cert. ef. 12-15-11

581-023-0041

Computation of Net Operating Expenditures

(1) The computation of "net operating expenditures" under ORS 327.006 shall be made as follows, using accounts as herein defined for the General Fund and subject to such items of exclusion as are stated in this rule.

(a) Instruction (K-12, regular school year):

(A) Regular Programs (function 1100 except functions 1113, 1122, 1132, and 1140) -- $____;

(B) Special Programs (function 1200) -- $____;

(C) Total Approved Instruction ((a)(A) + (B)). -- $____(a).

(b) Supporting Services:

(A) Students (function 2100) -- $____;

(B) Instructional Staff (function 2200) -- $____;

(C) General Administration (function 2300) -- $____;

(D) School Administration (function 2400) -- $____;

(E) Business (functions 2510, 2520, 2540, and 2570); $____;

(F) Central (function 2600) -- $____;

(G) Total Approved Supporting Services ((b)(A) + (B) +(C) + (D) + (E) + (F)) -- $____(b).

(c) Subtotal ((a) + (b)) -- $____(c);

(d) Tuition and Services Receipts (revenue code 1310 + revenue code 1940) -- $____(d);

(e) Approved Net Operating Expenditures for Resident Pupils (c) minus (e) (d)) -- $____(e).

(2) The following expenditure items are excluded from the computation:

(a) Co-curricular expenditures, instruction functions only;

(b) All capital outlay expenditures;

(c) Workforce Investment Act or ESEA funded expenditures;

(d) Expenditures for programs operated under 343.261; and 343.961.

(e) Expenditures for programs operated under 343.455; and 343.534.

(f) Indian Education funded expenditures.

(3) Approved expenditures by function/object used in the computation shall be restricted to the General Fund:

(4) Approved function and object codes used in the computation are defined in the Program Budgeting and Accounting Manual, published by the Oregon Department of Education.

(5) Questions regarding approvable items in the administration of this rule shall be resolved by the State Superintendent of Public Instruction and the Superintendent's determination shall be final.

(6) The provisions of this administrative rule shall apply to all statutory references to 'net operating expenditures'. Any change made in the accounting system by the State Board of Education shall be reflected by corresponding adjustments in functions and object codes stated in the rule.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 327.125
Stats. Implemented: ORS 327.006(6) & 327.008
Hist.: 1EB 16-1979, f. 11-8-79, ef. 11-9-79; 1EB 22-1980, f. & ef. 7-15-80; 1EB 14-1985, f. 7-3-85, ef. 7-5-85; EB 22-1987, f. 10-16-87, ef. 7-1-88; ODE 23-2001, f. & cert. ef. 11-7-01; ODE 5-2008, f. & cert. ef. 2-22-08

581-023-0060

State Superintendent's Approval of Bonded Debt for Nonstandard and Conditionally Standard School Districts

The State Superintendent of Public Instruction shall approve additional bonded indebtedness for a nonstandard or conditionally standard school district as described in ORS 328.205 when:

(1) The purpose of the revenues is listed under ORS 328.280(1) and is included in the district's plan to correct the deficiencies causing the nonstandard or conditionally standard status.

(2) The district demonstrates that in contracting for bonded indebtedness it will not impair or delay its efforts in becoming a standard district.

Stat. Auth.: ORS 328.205
Stats. Implemented: ORS 328.205
Hist.: EB 6-1991, f. & cert. ef. 4-3-91

581-023-0100

Eligibility Criteria for Student Weighting for Purposes of State School Fund Distribution

(1) The following definitions apply to this rule:

(a) "Average Daily Membership" or "ADM" means the membership defined in ORS 327.006(3) and OAR 581-023-0006;

(b) "Days in Session" means number of days of instruction during which students are under the guidance and direction of teachers;

(c) "Department" means the Oregon Department of Education;

(d) "Language Minority Student" means:

(A) Individuals whose native language is not English; or

(B) Individuals who come from environments where a language other than English is dominant; or

(C) Individuals who are Native Americans or Native Alaskans and who come from environments where a language other than English has had a significant impact on their level of English proficiency.

(e) "Superintendent" means the State Superintendent of Public Instruction;

(f) "Weighted Average Daily Membership" or "ADMw" means the ADM plus an additional amount or weight as described in ORS 327.013.

(2) Pursuant to ORS 327.013(7)(a)(A) the resident school districts shall receive one additional ADM or "weight" for children with disabilities who comprise up to 11 percent of the district's ADM. The Department will calculate the percentage of children with disabilities on the basis of resident counts of students eligible for weighting from the Special Education Child Count and the resident ADM:

(a) To be eligible, a student must be in the ADM of the school district and meet the following criteria:

(A) The student must be eligible for special education having been evaluated as having one of the following conditions: Intellectual disability, hearing impairment including difficulty in hearing and deafness, speech or language impairment, visual impairment, serious emotional disturbance, orthopedic or other health impairment, autism, traumatic brain injury or specific learning disabilities; and

(B) The student must be between the ages 5 and 21 and generate federal funding for purposes of special education.

(b) Districts may apply for an exception to the 11 percent ceiling. Applications are to be made on forms provided by the Department. Upon receipt of the application the Superintendent may conduct a complete review of a district's special education records. The Superintendent shall develop a process for conducting such reviews which will include the following elements:

(A) Comparison of district claims with those submitted by other districts;

(B) Participation of school district and education service district staff in the review. No district staff shall be asked to review claims submitted by the employing district.

(c) After considering the recommendations of the review committee the Superintendent may allow all or a portion of the requested added weighted ADM over 11 percent;

(d) The Superintendent shall make the determination of approval for funding above the 11 percent limitation. Such determination may be appealed for review by the State Board of Education according to a process established by the Superintendent;

(e) If the review indicates that a district has claimed ineligible special education students, the Superintendent also shall withhold the related federal funds from the district, pursuant to OAR 581-015-2020;

(f) A district must submit an application for an exception to the 11 percent ceiling no later than six months after the close of the year for which payment is being sought. Payments for allowable exceptions shall be made in the following school year as part of the May 15 payment.

(3) Pursuant to ORS 336.640(4), the resident school districts shall receive an additional 1.0 times the ADM of all eligible pregnant and parenting students:

(a) To be eligible, a student must be in the ADM of the resident school district and meet the following criteria:

(A) The student must be identified through systematic procedures established by the district;

(B) The student must be enrolled and receiving services described in ORS 336.640(1)(b) and (d);

(C) The student must have an individualized written plan for such services which identifies the specific services, their providers, and funding resources.

(b) Students counted in section (2) of this rule are not eligible under this section.

(4) Pursuant to ORS 327.013(7)(a)(B), the resident school districts shall receive an additional .5 times the ADM of all eligible students enrolled in an English as a Second Language program. To be eligible, a student must be in the ADM of the school district in grades K through 12 and be a language minority student attending English as a Second Language (ESL) classes in a program which meets basic U.S. Department of Education, Office of Civil Rights guidelines. These guidelines provide for:

(a) Educational Theory and Approach that describes the district's educational approach (e.g., ESL, transitional bilingual education, structured English immersion, dual language, etc.) for educating English Language Learner (ELL) students that is recognized as a sound approach by experts in the field, or recognized as a legitimate educational strategy to ensure that ELL students acquire English language proficiency and are provided meaningful access to the educational program.

(b) A systematic procedure for identifying students who may need ESL classes, and for assessing their language acquisition and academic needs;

(c) A planned program for ESL and academic development, using instructional methodologies recognized as effective with language minority students;

(d) Instruction by credentialed staff and trained in instructional strategies that are effective with second language learners and language minority students, or by tutors supervised by credentialed staff trained in instructional strategies that are effective with second language learners and language minority students;

(e) Adequate equipment and instructional materials;

(f) Evaluation of program effectiveness in preparing ESL students for academic success in the mainstream curriculum.

(g) Process for transition from ELL Services that include procedures and criteria for determining when students no longer need those services. The criteria shall include:

(A) Achieving at the Advanced level on the State’s English Language Proficiency Assessment (ELPA).

(B) The Advanced level is a culmination of progress demonstrated on the same state proficiency measure over a legitimate period of time.

(5) Students served in the following programs are not eligible for weighting:

(a) Programs funded fully by state funds, programs funded fully by federal funds, and programs funded fully by a combination of state and federal funds;

(b) Private and parochial schools unless placed by the resident district in a registered private alternative program or state approved special education program;

(c) Instruction by a private tutor or parent under ORS 339.035.

(6) No later than January 15 of each year, the designated official for a school district shall submit to the Department a report of students eligible under sections (3) and (4) of this rule. The report shall include the following data for the period October 1 through December 31:

(a) Total days in session for the quarter ending December 31 for the school or program reporting;

(b) Total days membership for the quarter ending December 31 for all students served in eligible programs.

(7) Not later than July 10 of each year, the designated official for a school district shall submit to the Department a final report of students eligible under sections (3) and (4) of this rule. The report shall include the following:

(a) Total days in session during the regular school year for the school or program reporting;

(b) Name of each student;

(c) Total days membership beginning with the first day of instruction for each student and ending with the date of withdrawal from the eligible program or the end of the regular school year, whichever comes first;

(d) Grade level of the student.

(8) School districts must retain supporting documentation for a minimum of two years.

(9) The Department shall perform periodic reviews of the eligibility of students reported for additional weighting. Any funds provided for ineligible students shall be recovered by the Department for redistribution to school districts.

Stat. Auth.: ORS 327.013 & 327.125
Stats. Implemented: ORS 327.013 & 327.125
Hist.: EB 31-1992, f. & cert. ef. 10-14-92; EB 6-1994, f. & cert. ef. 4-29-94; ODE 20-2008, f. & cert. ef. 6-27-08; ODE 12-2011, f. & cert. ef. 10-31-11

581-023-0102

Poverty Eligibility Determination for Purposes of State School Fund Distribution

(1) The following definitions and abbreviations apply to this rule:

(a) “ADM” means Average Daily Membership as defined under ORS 327.006 and OAR 581-023-0006;

(b) “Census Bureau” means the United State Census Bureau;

(c) “SAIPE” means the Small Area Income Poverty Estimate published by the Census Bureau every year and available to the public on the Census Bureau’s website at: http://www.census.gov/did/www/saipe/.

(2) Pursuant to ORS 327.013(1)(c)(A)(v)(i) the Department of Education will determine poverty using Census Bureau data and ADM data from the school districts.

(3) The Department will obtain SAIPE data published on the Census Bureau website for all Oregon school districts annually as it is released.

(4) (a) The Department will divide the concurrent year’s ADM data by the total children ages 5 to 17 as reported in the SAIPE data;

(b) For those districts where the ratio of the ADM divided by total children ages 5 to 17 as reported in SAIPE data is greater than 100%, the Department will reduce the ratio to 100%.

(5) The Department will multiply the population ages 5 to 17 in families in poverty as reported by the SAIPE by the percentage calculated above.

(6) The Department will round the resulting product to two decimal places.

(7) The Department will use the final number to calculate weighted average daily membership for poverty pursuant to ORS 327.013(1)(c)(A)(v).

(8) The Department will use the poverty weights determined from the latest SAIPE data to estimate future weighting for poverty until the next SAIPE data is available and annually obtained by the Department.

Stat. Auth.: ORS 327.013 & 327.125
Stats. Implemented: ORS 327.013
Hist.: ODE 9-2014, f. 2-19-14, cert. ef. 7-1-14

581-023-0104

Reimbursement to School Districts for Children with High Cost Disabilities

(1) Consistent with the provisions of this rule, a school district may apply to the Department for reimbursement from the high cost disability fund when combined district and ESD general fund expenditures for special education and related services for any student eligible and served under IDEA exceed $30,000 in a fiscal year.

(2) To be eligible for the reimbursement, the school district shall have:

(a) Determined that the student is eligible for special education and related services under one of the disability categories set forth in OAR 581-015-2130 through 581-015-2180;

(b) Provided services to the student on the basis of the student's current or previous individualized education program in effect during the fiscal year; and

(c) Submitted a timely application as per Department requirements.

(3) The Department shall only distribute the reimbursement to a school district for:

(a) Expenditures exceeding $30,000 for special education and related services that are required by the individualized education program of an individual student with a disability. Qualifying expenditures include those incurred by the school district and those incurred by the ESD through the resolution process.

(b) Transportation expenditures, exclusive of local, state and federal reimbursements.

(c) Special education general fund expenditures, exclusive of federal sources, as set forth in the Maintenance of Effort requirements of the federal IDEA. District and school level administrative expenditures (e.g. salaries) may be included by first averaging the expenditures across all the special education students enrolled as identified on the most recent SECC, then applying the average to the student for whom the district is requesting reimbursement. Similarly, teacher and educational assistant salaries must be averaged across all the special education students for whom the teacher or assistant provided instruction during the school year.

(4) Expenditures not eligible for reimbursement include:

(a) Regional Program expenditures;

(b) Reimbursed Medicaid expenditures;

(c) Expenditures associated with facility operations and maintenance (e.g., heat, electricity, custodial services)

(5) In December of each year, school districts will provide the Department with an estimate of the aggregate number of students eligible for reimbursement from the High Cost Disabilities Fund and the total estimated aggregate amount of reimbursable expenditures, including ESD expenditures that will be incurred during the school year. As requested by the Department, districts will also report during the school year, updated information listing eligible students, SDID, names, estimated expenditures, and other information as requested.

(6) A school district may submit an application for each student identified who meets the criteria set forth in section (2) and (3) of this rule.

(7) The Department shall provide school districts with an application that shall require documentation that identifies all the school districts and ESD's expenditures for each student. Additional supporting documentation, subject to ODE review, may include a copy of the contract(s) between the school district and the service provider(s), invoices reflecting actual expenses, and any additional documentation of expenditures incurred as determined by the Department. These documents must be maintained at the District for at least three years after the submission of the student-level data.

(8) The Department shall develop and implement a process for reviewing applications.

(9) The Department shall prorate the distribution of funds for each school year to eligible school districts if sufficient funds are not available.

(10) Based on the outcome of section (8), the Department will exclude from reimbursement those expenditures deemed excessive, ineligible or unsubstantiated.

(11) Funds will be distributed to districts on or before May 15 for the current fiscal based on expenditure estimates. Adjustments will be made May 15 of the following year based on audited data and Department reviews of district records.

(12) The decision of the Department regarding reimbursement of costs pursuant to this rule shall be final.

Stat. Auth.: ORS 326.051, 327.348
Stats. Implemented: ORS 327.348
Hist.: ODE 6-2004, f. & cert. ef. 3-15-04; ODE 32-2007, f. & cert. ef. 12-12-07

581-023-0106

Calculation of Extended ADMw for Charter Schools

(1) The following definitions and abbreviations apply to this rule:

(a) “ADM” means average daily membership as defined in ORS 327.006(3) and OAR 581-023-0006 to 581-023-0008.

(b) “ADMw” or “average daily membership weighted” means ADMw or average daily membership weighted as defined in ORS 372.013(1)(c)(A).

(c) “Extended ADMw” means as that term is described in ORS 327.013(1)(c).

(d) “Public Charter Schools” means as that term is defined in ORS 338.005.

(e) “Non-charter schools” are all institutions, programs and schools used by a district to calculate and receive funding pursuant to ORS 327.013, excluding charter schools as defined in ORS 338.005.

(f) “Students Eligible for Special Education” means children with a disability under ORS 343.035.

(g) “English as a Second Language Program”, or “ESL”, means programs that comply with OAR 581-023-0100(4)

(h) “Pregnant and Parenting Program” means programs that comply with OAR 581-023-0100(3).

(i) “Small School Correction” means additional weighting pursuant to ORS 327.077.

(j) “Students in poverty” means those students as defined in ORS 327.013(1)(c)(A)(v)(I).

(2) Pursuant to ORS 338.155, for State School Fund purposes, extended ADMw for public charter schools will be calculated as follows:

(a) The ADMw of all charter schools in a given school district will be separately calculated on an individual charter school basis;

(b) The charter school Extended ADMw will be calculated separately from the Extended ADMw calculated for non-charter schools in that same school district.

(c) The Extended ADMw for charter schools will be combined with the Extended ADMw for the non-charter schools to arrive at one extended ADMw for each school district.

(d) The combined Extended ADMw will be used to calculate the school district’s portion of the State School Fund distribution pursuant to ORS 327.013.

(3) The ADMw for a charter school includes:

(a) An additional 1.0 weight for all students in a Pregnant and Parenting program as described in OAR 581-023-0100(3).

(b) An additional 0.5 weight for all students in an English as a Second Language Program as described in OAR 581-023-0100(4).

(c) An additional 0.25 weight for each student in the charter school as calculated by ORS 338.157 to adjust for the poverty level.

(d) An additional weight for a remote small elementary school correction as calculated pursuant to ORS 327.077 if the charter school qualifies as a remote small elementary school under ORS 327.077.

(e) An additional weight for a small high school correction as calculated pursuant to ORS 327.077 if the charter school qualifies as a small high school under ORS 327.077.

(f) Students Eligible for Special Education attending a charter school will be added to the charter school’s ADMw pursuant to ORS 338.165.

(4) The extended ADMw for non-charter schools shall be calculated as the district extended ADMw pursuant to ORS 327.013(1)(c)(A)–(C).

(5) Pursuant to ORS 338.155(1)(b)(C) all funds to be distributed to charter schools based on charter schools’ ADMw will first be distributed to the district where the charter school is located. The funds will then be distributed to the charter schools pursuant to ORS 338.155(2), (3) or (7).

(6) This rule first applies to State School Fund distribution commencing with the 2011-2012 fiscal year.

Stat. Auth.: ORS 327.125 & 338.025
Stats. Implemented: ORS 327.013, 327.077, 338.155 & 338.165
Hist.: ODE 18-2012, f. 6-8-12, cert. ef. 6-11-12

581-023-0112

School Improvement Fund

(1) For purposes of this rule, "School Improvement Fund" means the fund established by ORS 327.294.

(2) Each fiscal year the Department of Education shall award grants from the School Improvement Fund to school districts, education service districts, the Youth Corrections Education Program and the Juvenile Detention Education Program for activities that relate to increases in student achievement, including:

(a) Early childhood support including establishing, maintaining or expanding quality Pre-kindergarten programs and full-day kindergarten programs;

(b) Class size reduction with an emphasis on the reduction of kindergarten through grade three class sizes;

(c) Increases in instructional time including summer programs and before and after school programs;

(d) Mentoring, teacher retention and professional development;

(e) Remediation, alternative learning and student retention;

(f) Services to at-risk youth;

(g) Programs to improve a student achievement gap between student groups identified by culture, poverty, language and race and other student groups;

(h) Vocational education programs;

(i) Literacy programs;

(j) School library programs; and

(k) Other research-based student improvement strategies approved by the State Board of Education.

(3) Grant applications for each school district, education service district and for the Youth Corrections Education and Juvenile Detention Education Programs shall identify the goals of the district or program for increases in student performance for the year and shall outline how the district or program plans to use the resources provided from the Fund to reach the performance goals. The Department shall evaluate the grant applications based on the following criteria:

(a) The goals set by the school districts, education service districts and programs for increases in student performance;

(b) The evidenced-based activities identified to meet the stated goals;

(c) Consistency with the district's Continuous Improvement Plan;

(d) The quantifiable performance measures for demonstrating progress on one or more Key Performance Measures adopted by the 2007 Legislative Assembly and identified by the Department; and

(e) The evaluation process identified in the application that will be used by the district or program to determine if the district or program is effective in the implementation of the activities for which the district or program is requesting funds.

(4) The amount of each grant for a school district, education service district or program shall be determined based on ORS 327.294 and 327.297. After the initial determination of the grant amount for each district or program, the Department may adjust the grant amount based on additional data and information received by the department.

(5)(a) Each school district, education service district and program shall account for the grant amounts it receives separately, and shall apply these amounts to pay for activities described in the district or program's application. School districts, education service districts and programs may only expend grant funds on approved activities identified in the grant application of the district or program.

(b) School districts and education service districts may choose to budget grant funds in the district's General Fund or a Special Revenue Fund. Programs may choose to budget these funds in a Special Revenue Fund. The Department will establish an Area of Responsibility code in the Program Budgeting and Accounting Manual for School Districts and Education Service Districts in Oregon to identify all expenditures for the School Improvement Fund. School districts and education service districts and programs shall use the Area of Responsibility code to identify all expenditures for the School Improvement Fund.

(c) School districts, education service district and programs may carry over grant funds received in a fiscal year until the end of the next fiscal year. If a district or program has not expended all of its grant funds prior to the end of the carry over period, the district or program shall return the unused portion of the grant funds to the Department.

(d) If the department determines that a school district, education service district or program did not expend grant funds in accordance with ORS 327.297 or this rule, the Department may deny a subsequent request for grant funds from the district or program and may require the district or program to repay grant funds received by the district or program for any year.

(e) The Department shall deposit any moneys it receives under this section in the School Improvement Fund and distribute those moneys as part of the grants awarded from the fund.

(6) In accordance with ORS 334.177 and the Program Budgeting and Accounting Manual for School Districts and Education Service Districts in Oregon, an education service district may transfer grant funds to component school districts for activities, as identified in the grant application of the education service district, for which the education service district received grant funds. The education service district shall report to the Department about how much grant funds were transferred and shall report improvement data relating to the activities.

(7) In accordance with ORS 327.297 and the Program Budgeting and Accounting Manual for School Districts and Education Service Districts in Oregon, a school district may transfer grant funds to a public charter school for activities, as identified in the grant application of the school district, for which the school district received grant funds. The school district shall report to the Department about how much grant funds were transferred and shall report improvement data relating to the activities.

(8) The State Superintendent of Public Instruction shall resolve any issues arising from the administration of the School Improvement Fund grants not specifically addressed by this rule and the Superintendent's determination shall be final.

Stat. Auth.: ORS 327
Stats. Implemented: ORS 327.290, 327.294, 327.297
Hist.: ODE 18-2001(Temp), f. & cert. ef. 8-15-01 thru 1-02-02; ODE 31-2001, f. & cert. ef. 12-20-01; ODE 24-2007(Temp), f. & cert. ef. 10-26-07 thru 4-23-08; ODE 12-2008, f. & cert. ef. 4-21-08; ODE 17-2011, f. 12-15-11, cert. ef. 1-1-12

581-023-0220

State Education Lottery Bonds

(1) Distribution of State Education Lottery Bond proceeds:

(a) To be distributed to school districts as State Education Project grants in each year of biennium as soon as practicable after proceeds from bond sale becomes available;

(b) Each school district's State Education Project grant shall be equal to:

(A) The district's extended weighted average daily membership (extended ADMw), for the year ending June 30, of the year of distribution; times

(B) The amount available for the grants divided by statewide extended ADMw for the year ending June 30, of the year of distribution.

(2) School districts shall account for the amounts received as State Education Project grants including interest earnings on the grants as follows:

(a) As a separate fund limited to State Education Project grants only; or

(b) As a subaccount of an existing fund.

(3) Proceeds from the State Education Projects grant shall be expended for the following purposes:

(a) Acquisition, construction, improvement, remodeling, maintenance or repair of public school facilities in Oregon, including land;

(b) Site preparation costs;

(c) Permanent or portable buildings and equipment;

(d) Telecommunications equipment;

(e) Computers;

(f) Software and related technology;

(g) Textbooks;

(h) Library books;

(i) Furniture and furnishings;

(j) Vehicles;

(k) Costs of planning for bond issues and capital improvements;

(l) Payment of debt service on obligations, other than general obligation bonds, issued for such projects; or

(m) Instructional training.

(4) Proceeds may be held in reserve and be expended in future years for purposes listed in section (3).

Stat. Auth: ORS 327.731
Stat. Implemented: ORS 327.731
Hist.: ODE 17-1998, f. & cert. ef. 10-12-98; ODE 5-2000, f. & cert. ef. 2-1-00

581-023-0230

Facility Grant

(1) For purposes of this rule:

(a) "New School Building" means newly constructed school buildings, additions to existing school buildings, newly remodeled or converted structures and newly acquired premanufactured structures if those buildings or structures are to be used for instructing students. Newly remodeled structures may not have been used as classrooms in the prior five school years.

(b) "Construction Cost" means the cost of construction or remodeling excluding cost of land acquisition and cost of equipment not intrinsic to the structure or, for premanufactured structures, the purchase price excluding interest. Costs of site preparation and improvements, project management, and mandated utility and access upgrades may be included. Construction cost does not include structures such as athletic fields, stadiums, pools or any other structure whose primary purpose is not the instruction of students.

(2) A school district is eligible to receive a facility grant for a new school building in the year the new school building is first used for instruction for more than half of the district's regular school year or the following year.

(3) Facility grant shall equal a percentage of new school building construction cost as determined by statute. If the total amount to be distributed as facility grants exceed the limitation set in statute, the Department of Education shall prorate the amount of funds available for facility grants among those school districts that qualified for a facility grant. The proration percentage shall be adjusted to be the same for each year of the biennium.

(4) A school district may not use the portion of the State School Fund grant that is attributable to the facility grant for capital construction costs.

(5) Facility grant applications must be received at the Department of Education no later than February 15 of the school year following the school year in which the new school building is first eligible for the facility grant. The application shall include a summary of the construction cost as well as a copy of the parts of the contract(s) documenting the construction cost or purchase price.

(6) The Department of Education will distribute the facility grant with the March 15 State School Fund payment. Any necessary adjustments will be made on May 15, with final adjustment to be made in the second year.

(7) The State Superintendent of Public Instruction shall resolve any issues arising from the administration of the facility grant not specifically addressed by this rule and the Superintendent's determination shall be final.

Stat. Auth: ORS 327.125
Stat. Implemented: ORS 327.013 & ORS 327.008
Hist: ODE 6-2000, f. & cert. ef. 2-1-00; ODE 10-2003, f. & cert. ef. 6-13-03

581-023-0240

School Revenue Forecast

(1) The following definitions and abbreviations apply to this rule:

(a) "ADMw" means weighted average daily membership or the ADM plus an additional amount, as set forth in ORS 327.013.

(b) "Extended ADMw" means ADMw or ADMw of the prior year, whichever is greater.

(2) The Department of Education will provide each school district and education service district with revenue forecasts for the ensuing three years annually in January.

(3) These forecasts will be based on a forecast from the Department of Administrative Services in December of each year of a statewide allowable growth factor of general operating revenue per extended ADMw that can reasonably be expected for each of the next three fiscal years.

(4) The Department of Education will calculate – based on current law, estimates of ADMw, and of other state school fund formula factors – the distribution of those revenues to each education district.

(5) K-12 education districts should use these forecast revenues in developing their budgets and other considerations for expenditure levels, including collective bargaining, contractual commitments, and program changes.

(6) Districts shall report by letter to the Department of Education each year by March 31 conditions that do not allow them to operate within the forecast revenue for the ensuing year. Such conditions may include:

(a) Projected changes in the costs of employee salaries, benefits, supplies, purchased services, capital outlay, or other factors;

(b) Changes in economic or demographic conditions within the district;

(c) Changes in revenues outside state school funding;

(d) Other factors.

Stat. Auth.: ORS 327, Gov. Ex. Order
Stats. Implemented: ORS 327
Hist.: ODE 24-2001, f. & cert. ef. 11-7-01

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