K12 School Finance Welcome to Your State School

K-12 School Finance Welcome to Your State School Fund Michael Elliott State School Fund Coordinator Oregon Department of Education 1

Topics � History of School Funding � Goals of the School Funding Formula � Current Revenue � Components of State School Fund 2

History of School Funding pre Measure 5 (1990): � 60% Local Revenue (property taxes) � 30% State Revenue (income taxes) � 10% Federal Revenue 3

History of School Funding �Measure 5 ◦ Passed in 1990 ◦ Capped property tax rate to $5 per $1, 000 of market value for public education ◦ Required State to cover any local revenue losses to public education 4

History of School Funding �Measures 47 and 50 ◦ Passed in 1996 and 1997 respectively ◦ Cut assessed property values ◦ Capped growth of assessed property values to 3% a year 5

History of School Funding post Measures 5, 47, and 50: � 30% Local Revenue (property taxes) � 60% State Revenue (income taxes) � 10% Federal Revenue 6

History of School Funding Consequences of Measures 5, 47, and 50: � Increased volatility of school funding ◦ Shifted funding from property to income tax � Made state primary source of school funding � Equalized funding across districts 7

Billions of Dollars K-12 Formula Funding 1990 -91 through 2012 -13 8

K-12 Funding with Federal Stimulus Fiscal Year 2000 -01 through 2012 -13 $5. 0 $4. 5 $3. 0 $2. 5 SSF $2. 0 Federal Stimulus Local Revenue $1. 5 $1. 0 $0. 5 3 12 -1 2 20 11 -1 1 20 -1 10 20 20 09 -1 0 9 -0 08 20 07 -0 8 7 20 06 -0 6 20 -0 05 20 20 04 -0 5 4 -0 03 20 02 -0 3 2 -0 20 01 20 00 -0 1 $0. 0 20 Billions of Dollars $4. 0 9

Historical Funding Total K-12 Formula Funding per ADMr $9, 000 $8, 000 $7, 000 $6, 000 $5, 000 $4, 000 $3, 000 $2, 000 $1, 000 $0 1990 -91 1992 -93 1994 -95 1996 -97 1998 -99 2000 -01 2002 -03 2004 -05 2006 -07 2008 -09 2010 -11 2012 -13 10

Historical Funding Total K-12 Formula Funding per ADMw $8, 000 $7, 000 $6, 000 $5, 000 $4, 000 ADMw $3, 000 $2, 000 $1, 000 $0 1990 -91 1992 -93 1994 -95 1996 -97 1998 -99 2000 -01 2002 -03 2004 -05 2006 -07 2008 -09 2010 -11 2012 -13 11

-9 5 4 3 96 6 -9 19 7 97 19 98 98 19 99 99 20 00 00 20 01 01 20 02 02 20 03 03 20 04 04 20 05 05 20 06 06 20 07 07 20 08 08 20 09 09 20 10 10 20 11 11 20 12 12 -1 3 -9 95 19 -9 94 19 1 2 -9 93 19 19 -9 92 19 -9 90 91 19 19 Historical Funding Total K-12 Formula Funding Inflation-Adjusted Per ADMw $ 4, 500 $ 4, 000 $ 3, 500 $ 3, 000 $ 2, 500 $ 2, 000 $ 1, 500 $ 1, 000 $ 500 $- 12

Goals of School Funding Formula �Equalize funding across all districts �Equalize funding between districts and education service districts (ESDs) �Define equity according to student and district characteristics (weights) 13

Distribution Principles � Equalize district funding: � Equalize District and ESD funding: ◦ Distribute all state funding ◦ Account for all local revenue ◦ Districts receive 95. 5% ◦ ESDs receive 4. 5% � District Equity: ◦ More weights receive more funding � Local Control: ◦ Districts control spending decisions unless Legislature states otherwise 14

Formula Is Not �A general cost reimbursement �A revenue entitlement per student �An assurance of funding stability or adequacy �A measure of student outcomes �An accountability system 15

Current State and Local Revenue, 35. 4% State Revenue, 64. 6% 2011 -13 Biennium 16

State Revenue ($5. 713 B) Lottery Funds (includes Education Stability Fund), 9. 69% Other Funds, 0. 01% General Fund, 90. 30% 2011 -13 Biennium Includes $125 million School Year Subaccount Funds 17

Local Revenue Common State. Other, Timber, Federal 0. 7% School Fund, 1. 2% Forest 3. 2% Fees, 0. 5% Property Tax, 94. 4% Estimated for 2011 -13 biennium 18

District and ESD Revenue �Of the $5. 713 billion in state revenue ◦ 95. 5% goes to Districts ◦ 4. 5% goes to ESDs �All local revenue stays with the school district or ESD where collected 19

State School Fund Components �Carve-outs ◦ Money set aside for specific purposes and grants �Weights ◦ Variables used to determine each district and ESD’s share of state school fund 20

State School Fund: Specific Programs �Talented and Gifted Education ◦ $350, 000 per biennium �Speech Pathology Program ◦ $150, 000 per biennium �Long Term Care and Treatment and Oregon School for the Deaf ◦ Approximately $20 million per biennium �Oregon Virtual School District ◦ $1. 5 million per biennium 21

State School Fund: Sub-Grants �Small High School Grant ◦ $2. 5 million per year ◦ Ends June 30, 2013 �High Cost Disability Grant ◦ $18 million per year �Facility Grant ◦ $25 million per biennium �Transportation Grant ◦ Based on eligible transportation costs 22

State School Fund: Sub-Grants �High Cost Disability ◦ Reimburses districts for costs over $30, 000 per IEP student �Facility Grant ◦ Pays up to 8% of construction costs for new classroom furnishings �Small High School Grant ◦ Provides additional funds to small high schools 23

State School Fund: Sub-Grants �Transportation Grant ◦ Reimburses eligible transportation costs ◦ Reimbursement rates set by costs per ADMr ◦ Reimburse at 70%, 80% or 90% of eligible costs 24

Transportation Grant from 2005 -06 to 2012 -13 $ 200, 000 $ 180, 000 $ 160, 000 $ 140, 000 $ 120, 000 $ 100, 000 $ 80, 000 $ 60, 000 $ 40, 000 $ 20, 000 $2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2011 -12 and 2012 -13 Estimated 25

Student Weights �Average Daily Membership (resident) ◦ Up to 1. 0 weight �Students eligible for Special Education ◦ 1. 0 weight up to 11% ADMr �Special Education Students above 11% ◦ Variable �ESL students ◦ 0. 5 weight 26

Student Weights �Pregnant and Parenting Students �Students in Poverty �Students in Foster care ◦ 1. 0 weight ◦ 0. 25 weight �Students in Neglected/Delinquent Programs ◦ 0. 25 weight 27

School Weights �Remote Small Elementary School correction ◦ 8 miles from nearest elementary school in same district ◦ No more than 28 students per grade �Small High School Correction ◦ No more than 350 students for 4 grades ◦ No more than 267 students for 3 grades 28

School Weights �Union High School ◦ 1. 2 weight per resident Average Daily Membership �Elementary School District ◦ 0. 9 weight per resident Average Daily Membership 29

Weights Category Additional Weight IEP 1. 0 ESL 0. 5 Pregnant and Parenting 1. 0 Poverty 0. 25 Foster Care 0. 25 Neglected/Delinquent Students 0. 25 Union High School Students 0. 2 Elementary District Students -0. 1 30

Extended District ADMw � Compares current year ADMw with prior year ADMw � Uses the greater ADMw for funding purposes 31

Teacher Experience �Recognizes that more experienced teachers may have increased costs �Calculation (District Average – State Average) �Teacher Experience Factor may be positive or negative value 32

District Formula �(District extended ADMw * ($4, 500 + [$25 * (teacher experience difference]) * funding ratio) – Local Revenue ◦ District extended ADMw: District Weights ◦ $4, 500: minimum funding ◦ Funding Ratio completely distributes all State School Funds 33

ESD Formula �Total of component school district grants * 4. 5%; or �$1 million; whichever is greater 34

What to Remember � Formula combines local revenue and state revenue � Formula driven by weights � Goal of Formula is to ensure that 1 weight = 1 weight � Weights describe specific characteristics of students and districts 35

Questions? 36