73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3539
A-Engrossed
House Bill 3460
Ordered by the House June 3
Including House Amendments dated June 3
Sponsored by Representative MINNIS; Representatives ANDERSON,
BERGER, BOQUIST, BROWN, BRUUN, BURLEY, BUTLER, CAMERON, DALLUM,
DALTO, ESQUIVEL, FARR, FLORES, GARRARD, GILMAN, HANNA, JENSON,
KITTS, KRIEGER, KROPF, KRUMMEL, LIM, MORGAN, NELSON, OLSON,
RICHARDSON, SCOTT, G SMITH, P SMITH, SUMNER, THATCHER, WHISNANT
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Directs Legislative Assembly to appropriate to State School
Fund amount equal to { - 50 - } { + 51 + } percent of
projected personal income tax revenues beginning with 2007-2009
biennium. { + Requires that subsequent biennial appropriations
equal 109 percent of amount appropriated for prior biennium. + }
Allows Legislative Assembly to appropriate additional amounts if
money is from Education Stability Fund and constitutional
requirements for appropriation are met.
Directs Legislative Assembly to distribute amount above
{ - eight - } { + nine + } percent growth to Successful
Schools Fund and Kindergarten Through Grade 12 Stabilization
Account { - if revenue from personal income taxes increases
more than eight percent over prior biennium - } .
Establishes Successful Schools Fund. Continuously appropriates
moneys in fund to Department of Education for grants to school
districts to improve student achievement in low-performing
schools and for innovative projects.
Establishes Kindergarten Through Grade 12 Stabilization Account
within Education Stability Fund.
Directs Oregon Department of Administrative Services to prepare
computations and estimates of revenue received and projected
revenue.
{ + Directs Department of Education to report on
implementation of uniform budget and accounting system database
to interim legislative committees on revenue.
Directs Department of Revenue to report on county assessment
roll summaries to Legislative Revenue Officer. + }
Declares emergency, effective July 1, 2005.
A BILL FOR AN ACT
Relating to state finance; creating new provisions; amending ORS
291.342, 327.511, 348.696 and 348.716; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section:
(a) 'Appropriation' means any appropriation, allocation or
transfer of moneys made by law by the Legislative Assembly.
(b) 'Budget forecast' means the report containing computations
and estimates of revenue that is issued under ORS 291.342.
(c) 'Projected personal income tax revenues' means the
projected revenue for a biennium reported under ORS 291.342
(2)(d).
(2) Except as provided in subsection (3), (4) or (5) of this
section, the Legislative Assembly shall appropriate to the State
School Fund, for the biennium that begins July 1 of the year in
which the regular session of the Legislative Assembly begins, a
total amount of money that is equal to 51 percent of the
projected personal income tax revenues for that biennium.
(3)(a) The Legislative Assembly shall appropriate to the State
School Fund, for the biennium that begins July 1 of the year in
which the regular session of the Legislative Assembly begins, a
total amount of money that is equal to 109 percent of the amount
appropriated to the State School Fund for the biennium prior to
the biennium that begins July 1 of the year in which the regular
session of the Legislative Assembly begins.
(b) To meet the requirements of this subsection, the
Legislative Assembly may appropriate to the State School Fund an
amount that is equal to more than the amount required by
subsection (2) of this section if the source of the moneys that
are above the limitation imposed by subsection (2) of this
section is the Education Stability Fund and the appropriation is
made pursuant to section 4 (6), Article XV of the Oregon
Constitution.
(4) Except as provided in subsection (5) or (6) of this
section, if an appropriation of an amount of money that is equal
to 51 percent of the projected personal income tax revenues would
result in an appropriation to the State School Fund that is more
than 109 percent of the appropriation for the biennium that is
prior to the biennium that begins July 1 of the year in which the
regular session of the Legislative Assembly begins, then the
Legislative Assembly shall appropriate an amount equal to 51
percent of the amount shown as projected personal income tax
revenues as follows:
(a) To the Successful Schools Fund established in section 3 of
this 2005 Act, an amount equal to one-third of the amount by
which the appropriation would equal an amount that is more than
109 percent of the amount appropriated to the State School Fund
in the prior biennium;
(b) To the Kindergarten Through Grade 12 Stabilization Account
established in section 6 of this 2005 Act, an amount equal to
two-thirds of the amount by which the appropriation would equal
an amount that is more than 109 percent of the amount
appropriated to the State School Fund in the prior biennium; and
(c) To the State School Fund, an amount that is equal to the
remainder required to be appropriated under this subsection.
(5)(a) The amount appropriated to the Successful Schools Fund
for any biennium under subsection (4)(a) of this section may not
exceed two percent of the amount appropriated to the State School
Fund for that biennium under subsection (4)(c) of this section.
(b) The Legislative Assembly shall appropriate to the State
School Fund any amount that would have been appropriated under
subsection (4)(a) of this section if the amount had not been
above the limitation imposed by paragraph (a) of this subsection.
(c) Any amount appropriated under paragraph (b) of this
subsection to the State School Fund may not be used to:
(A) Calculate the limitation imposed under paragraph (a) of
this subsection;
(B) Calculate the amount to be appropriated to the State School
Fund under subsection (3) of this section; or
(C) Calculate the amount to be appropriated to the State School
Fund under subsection (4) of this section.
(6) If the amount in the Education Stability Fund has met the
cap placed on the fund by section 4 (5), Article XV of the Oregon
Constitution, then the Legislative Assembly shall appropriate any
amount that would have been appropriated under subsection (4)(b)
of this section if the amount had not been in excess of the cap
to the school capital matching subaccount created in section 4
(8), Article XV of the Oregon Constitution.
(7) The Legislative Assembly shall review the percentages used
in subsections (2) and (3) of this section to calculate the
amount to appropriate to the State School Fund:
(a) Once every four years; and
(b) Any time there is a change in state or federal law that is
projected to result in a significant change to the projected
personal income tax revenues. + }
SECTION 2. { + (1) Section 1 of this 2005 Act applies to
appropriations made by the Legislative Assembly for biennia
beginning on or after July 1, 2007.
(2) Notwithstanding section 1 of this 2005 Act, for purposes of
determining the amount of the appropriation to the State School
Fund that is necessary to meet the requirements of section 1 (3)
of this 2005 Act for the biennium beginning July 1, 2007, the
amount identified in the report issued by the School Revenue
Forecast Committee on December 1, 2004, as the essential budget
level for the appropriation amount for the State School Fund
shall be used as the appropriation amount for the State School
Fund for the biennium beginning July 1, 2005. + }
SECTION 3. { + (1) The Successful Schools Fund is established
in the State Treasury, separate and distinct from the General
Fund. Interest earned by the Successful Schools Fund shall be
credited to the fund.
(2) Notwithstanding ORS 293.190, any moneys in the fund that
are not distributed by the Department of Education in any
biennium shall be retained in the fund and may be distributed in
the next biennium.
(3) All moneys in the fund are continuously appropriated to the
department for distribution as grants to school districts as
provided in section 4 of this 2005 Act. + }
SECTION 4. { + (1) In addition to those moneys distributed
through the State School Fund, the Department of Education may
award grants to school districts to improve student achievement
in low-performing schools and to develop or implement innovative
programs.
(2) A school may qualify as a low-performing school under this
section if in the prior school year the school received an
overall grade of low performance or unacceptable performance
under ORS 329.105.
(3) The department shall facilitate technical assistance to
low-performing schools to determine the best method of improving
student achievement based on local district improvement plans
required by ORS 329.095.
(4) A school district may apply to the department for a grant
under this section to develop, implement or replicate innovative
proven programs within the school district or among school
districts.
(5) The department, when awarding grants to school districts
under this section, shall equitably divide the grants between
school districts in urban areas of the state and school districts
in rural areas of the state.
(6) When awarding grants to school districts, the department
shall give priority to grants for schools that in the prior
school year received an overall grade of low performance or
unacceptable performance under ORS 329.105.
(7) A school district that receives a grant under this section
does not qualify for a grant for the school for which the grant
was awarded for the next two fiscal years after the fiscal year
in which the grant was received.
(8) The State Board of Education shall adopt rules to
administer this section.
(9)(a) Prior to awarding grants each year, the department shall
report to the Emergency Board the criteria for awarding the
grants, which school districts will be receiving grants and for
what purposes the grants will be used.
(b) In addition to the report under paragraph (a) of this
subsection, the department shall report to the Emergency Board
about the progress of the school districts that have already
received grants under this section. + }
SECTION 5. { + Prior to October 1, 2006, the State Board of
Education shall adopt the criteria to be used to award grants
under section 4 of this 2005 Act. Prior to January 1, 2007, the
board shall report to the Emergency Board on the criteria. + }
SECTION 6. { + (1) There is established within the Education
Stability Fund the Kindergarten Through Grade 12 Stabilization
Account. Separate records shall be maintained for moneys in the
account.
(2) The account shall consist of moneys appropriated to the
account by the Legislative Assembly under section 1 of this 2005
Act and other moneys appropriated or allocated to the account by
the Legislative Assembly.
(3) Pursuant to section 4 (6), Article XV of the Oregon
Constitution, the Legislative Assembly may appropriate, allocate
or transfer any portion of the account to the State School
Fund. + }
SECTION 7. ORS 348.696 is amended to read:
348.696. { + (1) + } Pursuant to section 4 (4)(d), Article XV
of the Oregon Constitution, the Education Stability Fund is
established separate and distinct from the General Fund. Except
for earnings on moneys in the school capital matching subaccount,
moneys in the fund shall be invested as provided in ORS 293.701
to 293.790. { + Except as provided in subsection (2) of this
section, + } all declared earnings on moneys in the fund shall be
transferred and appropriated continuously as follows:
{ - (1) - } { + (a) + } All declared earnings from the
Oregon Growth Account to the Higher Education Technology Transfer
Fund established in ORS 351.691;
{ - (2) - } { + (b) + } All declared earnings from the
Higher Education Technology Transfer Account to the Department of
Higher Education;
{ - (3) - } { + (c) + } 75 percent of all declared earnings
not described in { - subsection (1) or (2) of this section - }
{ + paragraph (a) or (b) of this subsection + } to the Oregon
Education Fund established by ORS 348.716; and
{ - (4) - } { + (d) + } 25 percent of all declared earnings
not described in { - subsection (1) or (2) of this section - }
{ + paragraph (a) or (b) of this subsection + } to the Oregon
Student Assistance Commission for the Oregon Opportunity Grant
program under ORS 348.260.
{ + (2) All declared earnings on moneys in the Kindergarten
Through Grade 12 Stabilization Account shall be retained in the
account. + }
SECTION 8. ORS 348.696, as amended by section 28, chapter 922,
Oregon Laws 2001, and section 3, chapter 6, Oregon Laws 2002
(third special session), is amended to read:
348.696. { + (1) + } Pursuant to section 4 (4)(d), Article XV
of the Oregon Constitution, the Education Stability Fund is
established separate and distinct from the General Fund. Except
for earnings on moneys in the school capital matching subaccount,
moneys in the fund shall be invested as provided in ORS 293.701
to 293.790. { + Except as provided in subsection (2) of this
section, + } all declared earnings on moneys in the fund shall be
transferred and appropriated continuously as follows:
{ - (1) - } { + (a) + } All declared earnings from the
Oregon Growth Account to the Higher Education Technology Transfer
Fund established in ORS 351.691;
{ - (2) - } { + (b) + } 75 percent of all declared earnings
not described in { - subsection (1) of this section - } { +
paragraph (a) of this subsection + } to the Oregon Education Fund
established in ORS 348.716; and
{ - (3) - } { + (c) + } 25 percent of all declared earnings
not described in { - subsection (1) of this section - }
{ + paragraph (a) of this subsection + } to the Oregon Student
Assistance Commission for the Oregon Opportunity Grant program
under ORS 348.260.
{ + (2) All declared earnings on moneys in the Kindergarten
Through Grade 12 Stabilization Account shall be retained in the
account. + }
SECTION 9. ORS 348.696, as amended by section 7 of this 2005
Act, is amended to read:
348.696. (1) Pursuant to section 4 (4)(d), Article XV of the
Oregon Constitution, the Education Stability Fund is established
separate and distinct from the General Fund. Except for earnings
on moneys in the school capital matching subaccount, moneys in
the fund shall be invested as provided in ORS 293.701 to 293.790.
Except as provided in subsection (2) of this section, all
declared earnings on moneys in the fund shall be transferred and
appropriated continuously as follows:
(a) All declared earnings from the Oregon Growth Account to the
Higher Education Technology Transfer Fund established in ORS
351.691;
(b) All declared earnings from the Higher Education Technology
Transfer Account to the Department of Higher Education;
(c) 75 percent of all declared earnings not described in
paragraph (a) { - or (b) - } of this subsection to the Oregon
Education Fund established by ORS 348.716; and
(d) 25 percent of all declared earnings not described in
paragraph (a) { - or (b) - } of this subsection to the Oregon
Student Assistance Commission for the Oregon Opportunity Grant
program under ORS 348.260.
(2) All declared earnings on moneys in the Kindergarten Through
Grade 12 Stabilization Account shall be retained in the account.
SECTION 10. { + The amendments to ORS 348.696 by section 9 of
this 2005 Act become operative on July 1, 2011. + }
SECTION 11. ORS 291.342 is amended to read:
291.342. (1) By August 15 of each year, but not earlier than 90
days from the end of the regular session, if any, of the
Legislative Assembly held in that calendar year, the Oregon
Department of Administrative Services, with the assistance of the
Department of Revenue, shall:
(a) Ascertain by computation and estimate the total amount of
revenue available for state purposes for the current fiscal year;
and
(b) Apportion the state tax levy on property, if any, among the
several counties in the manner provided in ORS 291.445.
(2) In addition to the requirement in subsection (1) of this
section, { + for purposes of determining the State School Fund
appropriation amount necessary to meet the requirements of
section 1 of this 2005 Act and for determining the total amount
of revenue available to make that appropriation, + } the Oregon
Department of Administrative Services with the assistance of the
Department of Revenue shall for each calendar quarter of the year
ascertain by computation and estimate { + :
(a) + } The total amount of revenue available for state
purposes for the current { - fiscal year, as well as - } { +
biennium and the next biennium;
(b) + } The { + actual + } amount of revenue received
quarterly, cumulated throughout the biennium { - , and - }
{ + ;
(c) The actual amount of revenue received quarterly from
personal income taxes imposed under ORS chapter 316, cumulated
throughout the biennium; and
(d) The projected total amount of revenue from personal income
taxes imposed under ORS chapter 316 available for the current and
next biennia.
(3) The Oregon Department of Administrative Services shall + }
report { - its estimate - } { + the computations and
estimates prepared under subsection (2) of this section + } to
the Legislative Revenue Officer and to the Emergency Board
{ - , - } or { + , + } if the Legislative Assembly is in
session, to the Joint Committee on Ways and Means.
{ - (3) - } { + (4) + } In carrying out its duties under
subsection (2) of this section, the Oregon Department of
Administrative Services shall issue quarterly a statement setting
forth the methodology and assumptions used in making the revenue
estimate. Nothing in this subsection requires the statement to
set forth procedures used or methods used to determine either the
methodology or the assumptions.
SECTION 12. ORS 348.716 is amended to read:
348.716. The Oregon Education Fund is established in the State
Treasury, separate and distinct from the General Fund. Moneys in
the Oregon Education Fund are continuously appropriated to the
Oregon Department of Administrative Services for public education
and education lottery bond debt service. Seventy-five percent of
the declared earnings of the Education Stability Fund as
described in ORS 348.696 { - (3) - } { + (1)(c) + } shall be
transferred monthly to the Oregon Education Fund as directed by
the Director of the Oregon Department of Administrative Services.
Investment earnings on amounts in the Oregon Education Fund shall
be credited to the Oregon Education Fund. The Legislative
Assembly may, but shall be under no legal obligation to, allocate
and appropriate amounts in the Oregon Education Fund to pay
education lottery bonds. The Director of the Oregon Department of
Administrative Services may specify when during any fiscal year
amounts shall be transferred from the Oregon Education Fund to be
used for public education or education lottery bonds.
SECTION 13. ORS 348.716, as amended by section 8a, chapter 6,
Oregon Laws 2002 (third special session), is amended to read:
348.716. The Oregon Education Fund is established in the State
Treasury, separate and distinct from the General Fund. Moneys in
the Oregon Education Fund are continuously appropriated to the
Oregon Department of Administrative Services for public education
and education lottery bond debt service. Seventy-five percent of
the declared earnings of the Education Stability Fund as
described in ORS 348.696 { - (2) - } { + (1)(b) + } shall be
transferred monthly to the Oregon Education Fund as directed by
the Director of the Oregon Department of Administrative Services.
Investment earnings on amounts in the Oregon Education Fund shall
be credited to the Oregon Education Fund. The Legislative
Assembly may, but shall be under no legal obligation to, allocate
and appropriate amounts in the Oregon Education Fund to pay
education lottery bonds. The Director of the Oregon Department of
Administrative Services may specify when during any fiscal year
amounts shall be transferred from the Oregon Education Fund to be
used for public education or education lottery bonds.
SECTION 14. ORS 348.716, as amended by section 12 of this 2005
Act, is amended to read:
348.716. The Oregon Education Fund is established in the State
Treasury, separate and distinct from the General Fund. Moneys in
the Oregon Education Fund are continuously appropriated to the
Oregon Department of Administrative Services for public education
and education lottery bond debt service. Seventy-five percent of
the declared earnings of the Education Stability Fund as
described in ORS 348.696 { - (1)(c) - } { + (1)(b) + } shall
be transferred monthly to the Oregon Education Fund as directed
by the Director of the Oregon Department of Administrative
Services. Investment earnings on amounts in the Oregon Education
Fund shall be credited to the Oregon Education Fund. The
Legislative Assembly may, but shall be under no legal obligation
to, allocate and appropriate amounts in the Oregon Education Fund
to pay education lottery bonds. The Director of the Oregon
Department of Administrative Services may specify when during any
fiscal year amounts shall be transferred from the Oregon
Education Fund to be used for public education or education
lottery bonds.
SECTION 15. { + The amendments to ORS 348.716 by section 14 of
this 2005 Act become operative on July 1, 2011. + }
SECTION 16. ORS 327.511 is amended to read:
327.511. (1) The State Board of Education shall adopt by rule a
uniform budget and accounting system for school districts and
education service districts.
(2) The uniform budget and accounting system shall include
uniform definitions for a chart of accounts that shall allow for
valid comparisons of expenditures among schools and among
districts. The uniform definitions for the chart of accounts
shall be developed by the Department of Education in consultation
with the Legislative Revenue Officer, the Legislative Fiscal
Officer, the Oregon Department of Administrative Services and
appropriate organizations that represent kindergarten through
grade 12 educational interests.
(3) The uniform budget and accounting system shall allow for
the gathering of data on separate functions and programs,
including but not limited to:
(a) Individual school;
(b) Grade level;
(c) Curriculum area;
(d) Class size; and
(e) Extracurricular activities.
(4) The Department of Education { + , school districts and
education service districts + } shall place data gathered from
the uniform budget and accounting system in a database that
includes information that is { + readily + } accessible by the
public through the Internet, a personal computer or other similar
technology.
SECTION 17. { + Prior to March 1, 2006, and prior to October
1, 2006, the Department of Education shall report to the interim
legislative committees on revenue on the implementation of ORS
327.511. + }
SECTION 18. { + Prior to January 15 of each odd-numbered year,
the Department of Revenue shall report to the Legislative Revenue
Officer on the information gathered under ORS 309.330 to 309.400.
The report shall include the table created under ORS 309.370. + }
SECTION 19. { + This 2005 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2005 Act takes effect
July 1, 2005. + }
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