Chapter 327 — State Financing of Early Learning and Elementary and Secondary Education

 

2023 EDITION

 

 

STATE FINANCING OF EDUCATION

 

EDUCATION AND CULTURE

 

WILDFIRE-IMPACTED SCHOOL DISTRICTS

 

(Temporary provisions relating to wildfire-impacted school districts are compiled as notes preceding ORS 327.001)

 

FUND FOR STUDENT SUCCESS

 

327.001     Fund for Student Success; transfers

 

STATE SCHOOL FUND

 

327.006     Definitions for State School Fund distributions

 

327.008     State School Fund; State School Fund grants

 

327.011     Description of Local Revenues for purpose of State School Fund distributions

 

327.013     State School Fund distribution computations for school districts

 

327.016     Report related to State School Fund moneys received for English language learner programs; summary to legislative committees

 

327.019     State School Fund distribution computations for education service districts

 

327.021     Percentages and time of payment of apportionments to education service districts

 

327.022     Pediatric Nursing Facility Account

 

327.023     Grants for special and compensatory education programs

 

327.026     State School Fund grant for programs; calculation; adjustment; rules

 

327.029     Allocations for approved recovery schools; rules

 

327.033     Approved transportation costs; expenditure limitations; rules

 

327.043     When district required to provide transportation; supplemental plans and waivers

 

327.061     Computation of number of students in average daily membership

 

327.077     Remote small elementary school and small high school determination; effect; waiver; merger

 

327.095     Percentages and time of payment of apportionments to school districts

 

327.097     Apportionment where district changed

 

327.099     Adjustment of distribution within fiscal year

 

327.101     Adjustment of distribution between fiscal years

 

327.102     Standard school complaints; process; rules

 

327.103     Standard school presumed; effect of finding of deficiency; rules

 

327.106     School districts required to offer kindergarten through grade 12; exceptions

 

327.108     Post-graduate scholar programs; use of State School Fund moneys

 

327.109     Procedure if school district or charter school alleged to be involved in religious activity; complaint, investigation, finding; effect

 

327.120     Correction of errors in apportionments

 

327.125     Superintendent to administer statutes related to state financing of education; board rules

 

327.128     Disbursement and expenditures of moneys appropriated or allocated to Department of Education

 

327.133     Reports by districts

 

327.137     Audit reports filed with department; effect of failure to file or insufficiency of report

 

327.141     Financial or performance audit initiated by department; contracts for audit; costs

 

327.147     Increased allocation when union high school district becomes common school district

 

327.152     Increased allocation when certain merger occurs

 

327.157     Minimum apportionment to school districts affected or not affected by ORS 327.147 and 327.152

 

STUDENT INVESTMENT ACCOUNT

 

327.175     Student Investment Account

 

327.180     Allowed uses of grants from Student Investment Account

 

327.185     Application requirements to receive grants from Student Investment Account; eligible applicants; strategic planning

 

327.190     Approval of applications to receive grants from the Student Investment Account; performance growth targets

 

327.195     Calculations of grant amounts; distributions of grants; rules

 

327.201     Financial audits; determinations of moneys not spent in accordance with grant agreement or failure to meet performance growth targets

 

327.208     Technical assistance provided by the Department of Education

 

327.214     Coaching program for grant recipients that do not meet performance growth targets

 

327.222     Intensive program for high needs school districts; student success teams; rules

 

327.224     Student Success Teams Account

 

327.235     Reports to the Legislative Assembly

 

STATEWIDE EDUCATION INITIATIVES ACCOUNT

 

327.250     Statewide Education Initiatives Account

 

327.254     Statewide Education Initiatives Account uses; rules

 

EARLY LEARNING ACCOUNT

 

327.269     Early Learning Account

 

327.274     Early Learning Account uses; rules

 

GRANTS TO DISTRICTS AND PROGRAMS

 

(School Improvement and Student Achievement Grants)

 

327.290     Legislative findings relating to student achievement

 

327.294     School Improvement Fund

 

327.297     Grants for activities related to student achievement; rules

 

327.298     Grants for schools that are high poverty and low performing; rules

 

(Construction and Maintenance of Public School Facilities Grant)

 

327.300     Definitions for ORS 327.300 to 327.320

 

327.310     Legislative findings

 

327.320     School Facility Improvement Fund

 

327.330     Grants to school districts for construction and maintenance of public school facilities; rules

 

(Student Transportation Grants)

 

327.331     Allowed student transportation costs; calculation of grants; rules

 

(Local Option Equalization Grants)

 

327.333     Policy on provision of grants to school districts

 

327.336     Qualifications; amount

 

327.339     Local Option Equalization Grants Account; grant payments

 

(Title I School Grants)

 

327.341     Grants to provide instructional time during summer; rules

 

(English Language Learners)

 

327.344     Statewide English Language Learner Program Account

 

327.345     Grants for training English language learner teachers; qualifications; use; rules

 

(High Cost Disabilities Grants)

 

327.348     High Cost Disabilities Account; grants; approved costs; rules

 

(Small School District Grants)

 

327.356     Definitions for ORS 327.356 and 327.358

 

327.358     Small school district grants; rules

 

327.359     Small School District Supplement Fund

 

(Public Charter School Grants)

 

327.362     Grants to public charter schools to increase academic achievement for students who have historically experienced academic disparities or who are disabled; report; rules

 

(Defibrillator Grants)

 

327.365     Automated external defibrillator grants; rules

 

(Grants to Assist Students to Graduate)

 

327.367     Early warning system; grants; rules

 

(STEM and CTE Programs)

 

327.372     Funding for activities related to science, technology, engineering and mathematics education and to career and technical education; report

 

327.376     Connecting Education to Careers Account

 

(STEM Investment Grant Program)

 

327.380     Application for grant; evaluation of application

 

327.385     STEM Investment Grant Account

 

(Outdoor School Grants)

 

327.390     Grants; advisory committee; role of Oregon State University Extension Service

 

COMMON SCHOOL FUND

 

327.403     Definition for ORS 327.405 to 327.480

 

327.405     Common School Fund; composition and use

 

327.410     Apportionment of Distributable Income Account of Common School Fund among counties; distribution to school districts

 

327.420     Basis of apportionment

 

327.423     Determination of school census

 

327.425     Loans and investment of funds; determination of interest rate

 

327.430     Security for loans

 

327.435     Ascertainment of value and title of security

 

327.440     Loan repayment

 

327.445     Custody of securities for loan; collection of interest

 

327.450     Foreclosure of mortgages given to secure loans

 

327.455     Record of purchases by Department of State Lands on foreclosures; resale or lease of land; disposition of proceeds

 

327.465     Cancellation of unpaid taxes after deed to state in liquidation of loan

 

327.470     Cancellation of taxes on land acquired through foreclosure proceedings; right of redemption

 

327.475     When county court may acquire mortgaged lands deeded to state

 

327.480     Use of Common School Fund moneys to comply with judgment canceling fraudulent deed

 

327.482     Appropriation to reimburse fund for earnings failure

 

327.484     Reimbursement for earnings failure

 

EDUCATION CASH ACCOUNT

 

327.485     Education Cash Account; disbursements

 

327.490     Projects contracted to districts and institutions of higher learning

 

327.495     Appropriation of funds received for certain purposes

 

SUMMER LEARNING PROGRAM ACCOUNT

 

327.496     Summer Learning Program Account; rules

 

QUALITY EDUCATION COMMISSION

 

327.497     Legislative findings

 

327.500     Establishment; membership; staff

 

327.502     Officers; quorum; meetings

 

327.506     Quality education goals; duties; report

 

BUDGET AND ACCOUNTING SYSTEM

 

327.511     Uniform budget and accounting system

 

FOOD PROGRAMS

 

327.520     Acceptance and distribution of USDA Foods

 

327.525     School Foods Revolving Account

 

327.527     Summer breakfast and lunch program reimbursement; grants; rules

 

327.531     School breakfast and lunch programs; eligibility; insufficient funds; rules

 

327.535     Participation in school breakfast program; accessibility of breakfast; rules

 

327.537     Requirements for providing reimbursable meals; prohibitions and requirements when student owes money

 

327.540     School after-school meal and snack program; grants; rules

 

327.545     Reimbursement amounts for school districts that provide reimbursable meals; rules

 

327.548     Hunger Free Schools Account

 

FEDERAL AID TO EDUCATION

 

327.615     State Treasurer as trustee of funds

 

327.620     Review of accounts affecting federal funds

 

327.635     Labor standards required on federally financed school construction

 

FINANCING OF STATE AND FEDERAL REQUIREMENTS

 

327.645     Financing of programs mandated by state and federal programs

 

EDUCATION LOTTERY BOND PROGRAM

 

327.700     Definitions for ORS 327.700 to 327.711

 

327.705     Purpose of ORS 327.700 to 327.711

 

327.708     Legislative findings

 

327.711     Payment of debt service; issuance of bonds; School Capital Construction, Maintenance and Technology Fund

 

327.731     Education project grants; use; amount

 

STRATEGIC INVESTMENTS

 

327.800     Goals of strategic investments; requirements; rules

 

327.815     Guidance and Support for Post-Secondary Aspirations Program; strategic investments for program

 

327.820     Connecting to the World of Work Program; strategic investments for program

 

EARLY LITERACY SUCCESS INITIATIVE

 

(Generally)

 

327.825     Definitions

 

327.827     Early Literacy Success Initiative

 

(Early Literacy Success School Grant)

 

327.829     Uses of Early Literacy Success School Grants; rules

 

327.831     Eligibility for grants; application requirements; department duties

 

327.833     Grant awards; rules

 

327.835     Reporting requirements

 

327.837     Monitoring by department; corrective action plans

 

(Birth Through Five Literacy Plan)

 

327.839     Birth Through Five Literacy Plan; purposes; grants; reports

 

327.841     Birth Through Five Literacy Fund

 

(Early Literacy Success Community Grant)

 

327.843     Early Literacy Success Community Grant; purposes; grants; rules

 

327.845     Early Literacy Success Community Grant Fund

 

HIGH SCHOOL GRADUATION AND COLLEGE AND CAREER READINESS ACT

 

327.850     Short title

 

327.853     Definitions for Act

 

327.856     High School Graduation and College and Career Readiness Fund; amounts available to fund

 

327.859     Apportionments to school districts; increases in amounts available to fund

 

327.862     Amounts available to fund to be in addition to other amounts available for kindergarten through grade 12 public education

 

327.865     Portion of funds for career and technical education

 

327.868     Portion of funds for college-level educational opportunities for students in high schools

 

327.871     Portion of funds for dropout-prevention strategies in high schools

 

327.874     Requirements for use of moneys received by school districts

 

327.877     School district qualifications for apportionments

 

327.880     Failure to meet qualifications; retained apportionments

 

327.883     Rules for eligibility requirements, biennial plan guidelines, biennial plan submission deadlines, reporting criteria and audit processes

 

327.886     Retention of moneys for administrative costs of department

 

327.889     Retention of moneys for administrative costs of school districts

 

327.892     Oversight and accountability by department

 

327.895     Financial and program audits by Secretary of State; reports to Legislative Assembly and Governor

 

AGRICULTURAL EDUCATION

 

327.910     Coordination between Department of Education and Oregon FFA Association for agricultural education courses

 

327.915     Grants to manage programs of study in agricultural science and technology

 

 

WILDFIRE-IMPACTED SCHOOL DISTRICTS

 

      Note: Sections 1 to 4, 7 and 8, chapter 43, Oregon Laws 2022, provide:

      Sec. 1. Add. Sections 2 and 4 of this 2022 Act are added to and made a part of ORS chapter 327. [2022 c.43 §1]

      Sec. 2. Grants for wildfire-impacted school districts; rules. (1) As used in this section:

      (a) “ADMw” means the weighted average daily membership of a school district, as calculated under ORS 327.013 (1)(c)(A), minus any ADMw attributable to a virtual public charter school, as defined in ORS 338.005.

      (b) “District ADM” means the average daily membership, as defined in ORS 327.006, for a school district, minus any ADM attributable to a virtual public charter school, as defined in ORS 338.005.

      (c) “District extended ADMw” means the ADMw or ADMw of the prior year, whichever is greater.

      (d) “2020 wildfires” includes all wildfires that were identified in an executive order issued by the Governor in accordance with the Emergency Conflagration Act under ORS 476.510 to 476.610 between August 1 and September 30, 2020.

      (2) In addition to distributions made from the State School Fund and the Student Investment Account and apportionments made from the High School Graduation and College and Career Readiness Fund, the Department of Education shall award grants each school year to wildfire-impacted school districts as provided by this section.

      (3) A school district may apply for a grant under this section if:

      (a) The district ADM, as compared to the district ADM for the 2019-2020 school year, decreased for any school year occurring after the 2019-2020 school year; and

      (b) The school district can demonstrate that one or more of the following occurred:

      (A) One or more school buildings of the school district were damaged as the result of the 2020 wildfires and that damage resulted in students being displaced from the building or the building being closed to students;

      (B) Housing within the boundaries of the school district was damaged as a result of the 2020 wildfires and that damage resulted in students being displaced from the school district; or

      (C) Any other circumstances identified by the State Board of Education by rule as being directly related to the 2020 wildfires and causing a decrease in the district ADM.

      (4)(a) Except as provided by subsection (5) of this section, the amount of a grant awarded under this section shall equal the greater of the sum calculated under paragraph (b) or (c) of this subsection.

      (b) The following shall be added to determine the difference in amounts distributed to a school district based on ADMw:

      (A) The difference between the following, in relation to distributions from the State School Fund under ORS 327.013:

      (i) The amount that would have been distributed to the school district for the current school year from the State School Fund under ORS 327.013, as calculated based on the district extended ADMw for the 2019-2020 school year; and

      (ii) The amount actually distributed to the school district for the current school year from the State School Fund under ORS 327.013, as calculated based on the district extended ADMw for the current school year;

      (B) The difference between the following, in relation to distributions from the Student Investment Account under ORS 327.195:

      (i) The amount that would have been distributed to the school district for the current school year from the Student Investment Account under ORS 327.195, as calculated based on the district extended ADMw for the 2019-2020 school year; and

      (ii) The amount actually distributed to the school district for the current school year from the Student Investment Account under ORS 327.195, as calculated based on the district extended ADMw for the current school year; and

      (C) The difference between the following, in relation to apportionments from the High School Graduation and College and Career Readiness Fund under ORS 327.859:

      (i) The amount that would have been apportioned to the school district for the current school year from the High School Graduation and College and Career Readiness Fund under ORS 327.859, as calculated based on the district extended ADMw for the 2019-2020 school year; and

      (ii) The amount actually apportioned to the school district for the current school year from the High School Graduation and College and Career Readiness Fund under ORS 327.859, as calculated based on the district extended ADMw for the current school year.

      (c) The following shall be added to determine the difference in amounts distributed to a school district based on district ADM:

      (A) The difference between the following, in relation to distributions from the State School Fund under ORS 327.013:

      (i) The amount that would have been distributed to the school district for the current school year from the State School Fund under ORS 327.013, as calculated based on the district ADM for the 2019-2020 school year; and

      (ii) The amount actually distributed to the school district for the current school year from the State School Fund under ORS 327.013, as calculated based on the district ADM for the current school year;

      (B) The difference between the following, in relation to distributions from the Student Investment Account under ORS 327.195:

      (i) The amount that would have been distributed to the school district for the current school year from the Student Investment Account under ORS 327.195, as calculated based on the district ADM for the 2019-2020 school year; and

      (ii) The amount actually distributed to the school district for the current school year from the Student Investment Account under ORS 327.195, as calculated based on the district ADM for the current school year; and

      (C) The difference between the following, in relation to apportionments from the High School Graduation and College and Career Readiness Fund under ORS 327.859:

      (i) The amount that would have been apportioned to the school district for the current school year from the High School Graduation and College and Career Readiness Fund under ORS 327.859, as calculated based on the district ADM for the 2019-2020 school year; and

      (ii) The amount actually apportioned to the school district for the current school year from the High School Graduation and College and Career Readiness Fund under ORS 327.859, as calculated based on the district ADM for the current school year.

      (5) The department may prorate the amount of a grant calculated under subsection (4) of this section if the department finds, based on rules adopted by the State Board of Education, that only a portion of the decrease in district ADM, as compared to the 2019-2020 school year, is attributable to the 2020 wildfires.

      (6) A school district may qualify for a grant under this section only for school years in which the district ADM for the current school year is less than the district ADM for the 2019-2020 school year.

      (7)(a) The department shall award grants under this section from moneys available in the School Stabilization Subaccount for Wildfire-impacted School Districts established under section 4 of this 2022 Act.

      (b) When awarding a grant, the department shall identify the portion of the grant that is attributable to:

      (A) Distributions from the State School Fund under ORS 327.013;

      (B) Distributions from the Student Investment Account under ORS 327.195; and

      (C) Apportionments from the High School Graduation and College and Career Readiness Fund under ORS 327.859.

      (c) A school district that receives a grant under this section shall use the portions of the grant for the purposes for which the portions were intended, including:

      (A) Using the portion of the grant attributable to distributions from the Student Investment Account in a manner that is consistent with how the school district uses other distributions from the account; and

      (B) Using the portion of the grant attributable to apportionments from the High School Graduation and College and Career Readiness Fund in a manner that is consistent with how the school district uses other apportionments from the fund.

      (8) The State Board of Education shall adopt any rules necessary for the administration of this section, including adopting a reporting requirement to ensure compliance with the provisions of subsection (7)(c) of this section. [2022 c.43 §2]

      Sec. 3. Applicable school years. (1) Section 2 of this 2022 Act applies to State School Fund and Student Investment Account distributions and to High School Graduation and College and Career Readiness Fund apportionments made for the 2021-2022, 2022-2023, 2023-2024 and 2024-2025 school years.

      (2) The Department of Education shall award grants under section 2 of this 2022 Act to qualifying school districts for the 2021-2022, 2022-2023, 2023-2024 and 2024-2025 school years. [2022 c.43 §3]

      Sec. 4. School Stabilization Subaccount for Wildfire-impacted School Districts. (1) The School Stabilization Subaccount for Wildfire-impacted School Districts is established within the Statewide Education Initiatives Account.

      (2) Interest earned on the School Stabilization Subaccount for Wildfire-impacted School Districts shall be credited to the subaccount.

      (3) The School Stabilization Subaccount for Wildfire-impacted School Districts shall consist of moneys transferred to the subaccount from the Statewide Education Initiatives Account.

      (4) Moneys in the School Stabilization Subaccount for Wildfire-impacted School Districts are continuously appropriated to the Department of Education for the purpose described in section 2 of this 2022 Act. [2022 c.43 §4]

      Sec. 7. Sunset. Sections 2 and 4 of this 2022 Act are repealed on July 1, 2025. [2022 c.43 §7]

      Sec. 8. Abolishment of subaccount. (1) On July 1, 2025, the School Stabilization Subaccount for Wildfire-impacted School Districts established under section 4 of this 2022 Act is abolished.

      (2) Any moneys remaining in the School Stabilization Subaccount for Wildfire-impacted School Districts on July 1, 2025, shall be transferred to the Statewide Education Initiatives Account. [2022 c.43 §8]

 

FUND FOR STUDENT SUCCESS

 

      327.001 Fund for Student Success; transfers. (1) The Fund for Student Success is established in the State Treasury, separate and distinct from the General Fund.

      (2) The Fund for Student Success shall consist of moneys appropriated by the Legislative Assembly, moneys transferred to the fund under ORS 317A.155 and moneys received as provided in subsection (3) of this section.

      (3) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts, grants, donations and other moneys from public and private sources for the Fund for Student Success. Moneys received as provided in this subsection shall be deposited into the Fund for Student Success.

      (4) Moneys in the Fund for Student Success are continuously appropriated to the department for:

      (a) Transfer for each biennium to the State School Fund in the amount calculated by the Legislative Fiscal Officer and the Legislative Revenue Officer to be the sum of:

      (A) At least $40 million, for the purpose of a transfer under ORS 327.008 (10) to the High Cost Disabilities Account established in ORS 327.348; and

      (B) The amount of change in General Fund revenue to be collected in the biennium due to the amendments to ORS 316.037 by section 56, chapter 122, Oregon Laws 2019, and the operation of ORS 317A.100 to 317A.158.

      (b) Retention as a reserve for cash flow and revenue shortfall purposes.

      (c) Of the amount in the Fund for Student Success that is not dedicated for transfer as prescribed by paragraph (a) of this subsection or retained under paragraph (b) of this subsection, transfer to other education accounts as follows:

      (A) At least 50 percent to the Student Investment Account established in ORS 327.175.

      (B) Up to 30 percent to the Statewide Education Initiatives Account established in ORS 327.250.

      (C) At least 20 percent to the Early Learning Account established in ORS 327.269.

      (5) The department shall make the transfers prescribed by subsection (4) of this section on a periodic basis. The transfers must be in amounts that, based on the most recent data available to the department, ensure that the amounts and percentages identified in subsection (4) of this section are satisfied by the end of the biennium. [2019 c.122 §2; 2020 s.s.1 c.11 §1; 2021 c.678 §12; 2023 c.586 §8]

 

      327.005 [Repealed by 1957 c.612 §1 (327.006 enacted in lieu of 327.005)]

 

STATE SCHOOL FUND

 

      327.006 Definitions for State School Fund distributions. As used in ORS 327.006 to 327.133, 327.348, 327.356 to 327.359 and 327.731.

      (1) “Aggregate days membership” means the sum of days present and absent, according to the rules of the State Board of Education, of all resident pupils when school is actually in session during a certain period. The aggregate days membership of kindergarten pupils shall be calculated on the basis of a half-day program for half-day kindergarten and on the basis of a full-day program for full-day kindergarten.

      (2)(a) “Approved transportation costs” means those costs as defined by rule of the State Board of Education and is limited to those costs attributable to transporting or room and board provided in lieu of transporting:

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

      (B) Secondary school students who live at least 1.5 miles from school;

      (C) Any student required to be transported for health or safety reasons, according to supplemental plans from districts that have been approved by the state board identifying students who are required to be transported for health or safety reasons, including special education;

      (D) Preschool children with disabilities requiring transportation for early intervention services provided pursuant to ORS 343.224 and 343.533;

      (E) Students who require payment of room and board in lieu of transportation;

      (F) A student transported from one school or facility to another school or facility when the student attends both schools or facilities during the day or week; and

      (G) Students participating in school-sponsored field trips that are extensions of classroom learning experiences.

      (b) “Approved transportation costs” does not include the cost of constructing boarding school facilities.

      (3) “Average daily membership” or “ADM” means the aggregate days membership of a school during a certain period divided by the number of days the school was actually in session during the same period. However, if a district school board adopts a class schedule that operates throughout the year for all or any schools in the district, average daily membership shall be computed by the Department of Education so that the resulting average daily membership will not be higher or lower than if the board had not adopted such schedule.

      (4) “Kindergarten” means a kindergarten program that conforms to the standards and rules adopted by the State Board of Education.

      (5) “Net operating expenditures” means the sum of expenditures of a school district in kindergarten through grade 12 for administration, instruction, attendance and health services, operation of plant, maintenance of plant, fixed charges and tuition for resident students attending in another district, as determined in accordance with the rules of the State Board of Education, but net operating expenditures does not include transportation, food service, student body activities, community services, capital outlay, debt service or expenses incurred for nonresident students.

      (6)(a) “Resident pupil” means any pupil:

      (A) Whose legal school residence is within the boundaries of a school district reporting the pupil, if the district is legally responsible for the education of the pupil, except that “resident pupil” does not include a pupil who pays tuition or for whom the parent pays tuition or for whom the district does not pay tuition for placement outside the district; or

      (B) Whose legal residence is not within the boundaries of the district reporting the pupil but who attends school in the district with the written consent of the district school board where the school is located as provided by ORS 339.133 (5)(a).

      (b) A pupil is not considered to be a resident pupil under paragraph (a)(A) of this subsection if the pupil is attending school in another school district pursuant to a contract under ORS 339.125 and in the prior year was considered to be a resident pupil in another school district under paragraph (a)(B) of this subsection. The pupil shall continue to be considered a resident of another school district under paragraph (a)(B) of this subsection.

      (c) A pupil is not considered to be a resident pupil under paragraph (a)(B) of this subsection if the pupil is attending school in a school district pursuant to ORS 339.133 (5)(a) and in the prior year was considered to be a resident pupil under paragraph (a)(A) of this subsection because the pupil was attending school in another school district pursuant to a contract under ORS 339.125. The pupil shall continue to be considered a resident pupil under paragraph (a)(A) of this subsection.

      (d) “Resident pupil” includes a pupil who is:

      (A) Admitted to a school district under ORS 339.115 (7); or

      (B) Considered a resident under ORS 339.133 (5)(b).

      (7) “Standard school” means a school meeting the standards set by the rules of the State Board of Education.

      (8) “Tax” and “taxes” includes all taxes on property, excluding exempt bonded indebtedness, as those terms are defined in ORS 310.140. [1957 c.612 §2 (enacted in lieu of 327.005); 1957 c.708 §4; 1959 c.388 §1; 1963 c.142 §1; 1965 c.100 §14; 1971 c.395 §2; 1973 c.750 §16; 1973 c.827 §26; 1977 c.840 §1; 1979 c.259 §1; 1981 c.804 §95; 1989 c.215 §2; 1989 c.342 §1; 1991 c.693 §35; 1991 c.780 §2; 1995 c.660 §47; 1997 c.821 §11; 1999 c.961 §5; 1999 c.989 §30; 2007 c.846 §11; 2009 c.11 §§40,41; 2011 c.704 §7; 2011 c.718 §§14,15; 2013 c.735 §§4,5; 2016 c.7 §§8,9; 2019 c.57 §§14,15; 2021 c.355 §4]

 

      327.008 State School Fund; State School Fund grants. (1)(a) There is established a State School Fund in the General Fund.

      (b) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts, grants, donations and other moneys from public and private sources for the State School Fund. Moneys received as provided in this paragraph shall be deposited into the State School Fund.

      (c) The State School Fund shall consist of moneys appropriated by the Legislative Assembly, moneys transferred from the Fund for Student Success, moneys transferred from the Education Stability Fund and the Oregon Marijuana Account and moneys received as provided in paragraph (b) of this subsection.

      (d) The State School Fund is continuously appropriated to the Department of Education for the purposes of ORS 327.006 to 327.077, 327.095, 327.099, 327.101, 327.125, 327.137, 327.348, 327.356 to 327.359, 336.575, 336.580, 336.635, 343.243, 343.533, 343.941 and 343.961.

      (2) There shall be apportioned from the State School Fund to each school district a State School Fund grant, consisting of the positive amount equal to a general purpose grant and a transportation grant and a high cost disabilities grant minus local revenue, computed as provided in ORS 327.011 and 327.013.

      (3) For the first school year after a public charter school ceases to operate because of dissolution or closure or because of termination or nonrenewal of a charter, there shall be apportioned from the State School Fund to each school district that had sponsored a public charter school that ceased to operate an amount equal to the school district’s general purpose grant per extended ADMw multiplied by five percent of the ADM of the public charter school for the previous school year.

      (4) There shall be apportioned from the State School Fund to each education service district a State School Fund grant as calculated under ORS 327.019.

      (5) All figures used in the determination of the distribution of the State School Fund shall be estimates for the same year as the distribution occurs, unless otherwise specified.

      (6) Numbers of students in average daily membership used in the distribution formula shall be the numbers as of June of the year of distribution.

      (7) Each biennium, the Department of Education may expend from the State School Fund no more than $3 million for expenses incurred by the department in providing support to school districts, education service districts and public charter schools at any time before, during or after a threat or hazard that may affect a school district, an education service district or a public charter school and for the purpose of helping to improve the safety and security of students and staff.

      (8) Each biennium, the Department of Education may expend from the State School Fund no more than $10 million for expenses incurred by the Office of School Facilities under ORS 326.125 (1)(b) to (g).

      (9) Each fiscal year, the Department of Education shall transfer to the Pediatric Nursing Facility Account established in ORS 327.022 the amount necessary to pay the costs of educational services provided to students admitted to pediatric nursing facilities as provided in ORS 343.941.

      (10) Each fiscal year, the Department of Education shall transfer the amount of $55 million from the State School Fund to the High Cost Disabilities Account established in ORS 327.348.

      (11)(a) Each biennium, the Department of Education shall transfer $39.5 million from the State School Fund to the Educator Advancement Fund established under ORS 342.953.

      (b) For the purpose of making the transfer under this subsection:

      (A) The total amount available for all distributions from the State School Fund shall be reduced by $6 million;

      (B) The amount distributed to school districts from the State School Fund under this section and ORS 327.013 shall be reduced by $16.75 million; and

      (C) The amount distributed to education service districts from the State School Fund under this section and ORS 327.019 shall be reduced by $16.75 million.

      (c) For each biennium, the amounts identified in this subsection shall be adjusted by the same percentage by which the instructions furnished to state agencies by the Governor under ORS 291.204 direct the state agencies to adjust their agency budget requests for special payments under ORS 291.216 (6)(a)(C).

      (12) Each biennium, the Department of Education shall transfer $12.5 million from the State School Fund to the Statewide English Language Learner Program Account established under ORS 327.344.

      (13) Each fiscal year, the Department of Education may expend up to $550,000 from the State School Fund for the contract described in ORS 329.488. The amount distributed to education service districts from the State School Fund under this section and ORS 327.019 shall be reduced by the amount expended by the department under this subsection.

      (14) Each biennium, the Department of Education may expend up to $350,000 from the State School Fund to provide administration of and support for the development of talented and gifted education under ORS 343.404.

      (15) Each biennium, the Department of Education may expend up to $150,000 from the State School Fund for the administration of a program to increase the number of licensed speech-language pathologists and certified speech-language pathology assistants under ORS 348.398.

      (16) Each biennium, the Department of Education shall transfer $2 million from the State School Fund for deposit to the Healthy School Facilities Fund established under ORS 332.337. Notwithstanding ORS 332.337, the department may expend moneys received in the Healthy School Facilities Fund under this subsection only as grants for costs associated with testing for elevated levels of lead in water used for drinking or food preparation.

      (17) Each biennium, the Department of Education shall transfer an amount not to exceed $5,595,000 for the purpose of making tampons and sanitary pads available as provided by ORS 326.545.

      (18) Each fiscal year, the Department of Education shall transfer the amount of $2.5 million from the State School Fund to the Small School District Supplement Fund established in ORS 327.359.

      (19) Each biennium, the Department of Education shall transfer to the Oregon Military Department the amount necessary to pay the costs of educational services provided to students admitted to programs operated by the military department for at-risk youth, as described in ORS 396.360, that are outstanding after any General Fund appropriations and the calculation of available federal funds for the programs. [1991 c.780 §3; 1993 c.61 §4; 1997 c.524 §3; 1997 c.821 §13; 1999 c.1066 §10; 2001 c.695 §§12,13; 2002 s.s.3 c.6 §§13,14; 2003 c.715 §§4,5,7; 2005 c.803 §§6,6a; 2007 c.488 §1; 2007 c.839 §19; 2007 c.846 §12; 2007 c.858 §44; 2008 c.39 §§1,2; 2009 c.698 §§8,9; 2011 c.705 §§36,37; 2012 c.91 §§2,3; 2013 c.577 §§7,13; 2013 c.735 §§6,7; 2014 c.81 §§6,7; 2015 c.68 §§1,2; 2015 c.245 §§37,38; 2015 c.555 §§1,2; 2015 c.604 §§10,11; 2015 c.644 §§1,2; 2015 c.783 §§7,8; 2017 c.639 §§22,23; 2017 c.700 §§5,6; 2017 c.725 §§33,34; 2019 c.122 §§4,5; 2021 c.355 §5; 2021 c.635 §4; 2021 c.678 §11; 2023 c.570 §7; 2023 c.586 §1; 2023 c.587 §1]

 

      327.009 [2011 c.705 §34; repealed by 2013 c.577 §5]

 

      327.010 [Amended by 1957 c.626 §2; 1963 c.570 §1; 1965 c.100 §15; 1979 c.277 §2; repealed by 1991 c.780 §30]

 

      327.011 Description of Local Revenues for purpose of State School Fund distributions. For the purpose of State School Fund distributions for school districts:

      (1) Local Revenues are the total of the following:

      (a) The amount of revenue offset against local property taxes as determined by the Department of Revenue under ORS 311.175 (3)(a)(A).

      (b) The amount of property taxes actually received by the district, including penalties and interest on taxes.

      (c) The amount of revenue received by the district from the Common School Fund under ORS 327.403 to 327.410.

      (d) The amount of revenue received by the district from the county school fund.

      (e) The amount of revenue received by the district from state managed forestlands under ORS 530.115 (1)(b) and (c).

      (f) Moneys received in lieu of property taxes.

      (g) Federal funds received without specific application by the school district and that are not deemed under federal law to be nonsupplantable.

      (h) Any positive amount obtained by subtracting the operating property taxes actually imposed by the district, based on the rate certified pursuant to ORS 310.060, from the amount that would have been imposed by the district if the district had certified the maximum rate of operating property taxes allowed by law.

      (i) Any amount distributed to the district in the prior fiscal year under ORS 327.019 (8).

      (2) Local Revenues do not include:

      (a) If a school district imposes local option taxes pursuant to ORS 280.040 to 280.145, an amount equal to the least of:

      (A) The amount of revenue actually received by the district from local option taxes imposed pursuant to ORS 280.040 to 280.145;

      (B) Twenty-five percent of the total received by the school district from the general purpose grant, the transportation grant and the high cost disabilities grant of the district, as those grants are calculated under ORS 327.013; or

      (C) $2,000 per district extended ADMw, as calculated under ORS 327.013, increased each fiscal year by three percent above the amount allowed per district extended ADMw for the prior fiscal year.

      (b) For a school district with a statutory rate limit on July 1, 2003, that is greater than $4.50 per $1,000 of assessed value, the amount of property taxes actually received by the district, including penalties and interest on taxes, that results from an increase in the rate of ad valorem property tax of the district allowed under Article XI, section 11 (5)(d), of the Oregon Constitution. [2009 c.698 §6; 2017 c.17 §28; 2018 c.33 §1; 2023 c.537 §1; 2023 c.586 §2]

 

      Note: 327.011 was added to and made a part of 327.006 to 327.133 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      327.012 [Repealed by 1957 c.626 §1]

 

      327.013 State School Fund distribution computations for school districts. The State School Fund distributions for school districts include the following grants:

      (1) General Purpose Grant = Funding Percentage ´ Target Grant ´ District extended ADMw. For the purpose of the calculation made under this subsection:

      (a) The funding percentage shall be calculated by the Superintendent of Public Instruction to distribute as nearly as practicable the total sum of money available for distribution.

      (b) Target Grant = Statewide Target per ADMw Grant + Teacher Experience Factor. For the purpose of the calculation made under this paragraph:

      (A) Statewide Target per ADMw Grant = $4,500.

      (B) Teacher Experience Factor = $25 ´ {District average teacher experience statewide average teacher experience}. As used in this subparagraph, “average teacher experience” means the average, in years, of teaching experience of licensed teachers as reported to the Department of Education.

      (c) District extended ADMw = ADMw or ADMw of the prior year, whichever is greater. The calculation of the district extended ADMw must be made as provided by ORS 338.155 if a public charter school is located in the school district. For the purpose of this paragraph:

      (A) Weighted average daily membership or ADMw = average daily membership + an additional amount computed as follows:

      (i) 1.0 for each student in average daily membership eligible for special education as a child with a disability under ORS 343.035, which may not exceed 11 percent of the district’s ADM without review and approval by the Department of Education. Children with disabilities eligible for special education in adult local correctional facilities, as defined in ORS 169.005, or adult regional correctional facilities, as defined in ORS 169.620, may not be included in the calculation made under this sub-subparagraph.

      (ii) 0.5 for each student in average daily membership eligible for and enrolled in an English language learner program under ORS 336.079.

      (iii) 0.2 for each student in average daily membership enrolled in a union high school district or in an area of a unified school district where the district is only responsible for educating students in grades 9 through 12 in that area.

      (iv) 0.1 for each student in average daily membership enrolled in an elementary district operating kindergarten through grade six or kindergarten through grade eight or in an area of a unified school district where the district is only responsible for educating students in kindergarten through grade eight.

      (v) 0.25 times the sum of the following:

      (I) The number of students who are in average daily membership and who are also in poverty families, as determined by the Department of Education based on rules adopted by the State Board of Education that incorporate poverty data published by the United States Census Bureau, student data provided by school districts and other data identified by the board;

      (II) The number of children in foster homes in the district as determined by the report of the Department of Human Services to the United States Department of Education, “Annual Statistical Report on Children in Foster Homes and Children in Families Receiving AFDC Payments in Excess of the Poverty Income Level,” or its successor, for October 31 of the year prior to the year of distribution; and

      (III) The number of children in the district in state-recognized facilities for neglected and delinquent children, based on information from the Department of Human Services for October 31 of the year prior to the year of distribution.

      (vi) The amount determined under ORS 327.077 for each remote small elementary school and for each small high school in the district.

      (B) All numbers of children used for the computation in this paragraph must reflect any district consolidations that have occurred since the numbers were compiled.

      (C) The total additional weight that shall be assigned to any student in average daily membership in a district, exclusive of students described in subparagraph (A)(v) and (vi) of this paragraph, may not exceed 2.0.

      (2) High cost disabilities grant = the total amount received by a school district under ORS 327.348 for providing special education and related services to resident pupils with disabilities.

      (3)(a) Transportation grant equals:

      (A) 70 percent of approved transportation costs for those school districts ranked below the 80th percentile under paragraph (b) of this subsection.

      (B) 80 percent of approved transportation costs for those school districts ranked in or above the 80th percentile but below the 90th percentile under paragraph (b) of this subsection.

      (C) 90 percent of approved transportation costs for those school districts ranked in or above the 90th percentile under paragraph (b) of this subsection.

      (b) Each fiscal year, the Department of Education shall rank school districts based on the approved transportation costs per ADM of each school district, ranking the school district with the highest approved transportation costs per ADM at the top of the order. [1991 c.780 §4; 1993 c.61 §5; 1993 c.690 §3; 1995 c.649 §4; 1996 c.19 §2; 1997 c.541 §§367,368,368a; 1997 c.804 §§1,2; 1999 c.186 §11; 1999 c.989 §31; 1999 c.1066 §§25,26,30; 1999 c.1094 §5; 2001 c.670 §§10,12; 2001 c.695 §§15,17,20,23; 2003 c.715 §§8,10,13; 2005 c.803 §7; 2006 c.4 §§2,4; 2007 c.70 §§90,91; 2007 c.778 §§1,3,6; 2009 c.698 §7; 2011 c.684 §8; 2013 c.641 §1; 2015 c.604 §13; 2015 c.644 §7; 2023 c.586 §3]

 

      327.014 [1953 c.547 §1; 1957 c.626 §3; 1957 s.s. c.2 §1; 1961 c.622 §1; 1963 c.570 §1a; 1965 c.100 §16; 1965 c.528 §1; 1969 c.625 §1; repealed by 1971 c.22 §4]

 

      327.015 [Repealed by 1957 c.612 §18]

 

      327.016 Report related to State School Fund moneys received for English language learner programs; summary to legislative committees. (1) The Department of Education shall prepare an annual report that:

      (a) Identifies the total amounts that are:

      (A) Allocated to each school district from the State School Fund for students eligible for and enrolled in an English language learner program as provided by ORS 327.013 (1)(c)(A)(ii);

      (B) Expended from the amounts identified in subparagraph (A) of this paragraph for students in average daily membership who are eligible for and enrolled in an English language learner program; and

      (C) Expended as described in subparagraph (B) of this paragraph by category of expenditure, as identified and defined by the State Board of Education by rule.

      (b) Summarizes the progress for each school district on meeting objectives and the needs of students eligible for and enrolled in an English language learner program.

      (c) Provides information on the demographics of students in English language learner programs in each school district, including:

      (A) The average number of years students have been enrolled in an English language learner program;

      (B) The average number of years the students have attended their current schools;

      (C) The percentage of students who also receive special education and related services; and

      (D) Any other information identified by the department.

      (2) The report prepared under subsection (1) of this section must:

      (a) Be made available on the department’s website by June 30 of each year;

      (b) Be provided to each school district board by September 1 of each year and made available at the school district’s main office and on the school district’s website; and

      (c) Cover the school year ending June 30 of the prior year.

      (3) Prior to January 1 of each odd-numbered year, the department shall submit to the interim legislative committees on education a summary of the two most recent reports prepared under subsection (1) of this section. [2015 c.604 §6; 2016 c.21 §1]

 

      Note: 327.016 was added to and made a part of 327.006 to 327.133 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      327.017 [1993 c.61 §13; repealed by 1995 c.649 §10]

 

      327.018 [1957 c.612 §7 (enacted in lieu of 327.085); 1959 c.388 §2; 1965 c.100 §19; renumbered 327.059]

 

      327.019 State School Fund distribution computations for education service districts. (1) As used in this section:

      (a) “Education service district extended ADMw” means the sum of the extended ADMw of the school districts located within the territory of the education service district as computed under ORS 327.013.

      (b) “Local revenues of an education service district” means the total of the following:

      (A) The amount of revenue offset against local property taxes as determined by the Department of Revenue under ORS 311.175 (3)(a)(A);

      (B) The amount of property taxes actually received by the district including penalties and interest on taxes;

      (C) The amount of revenue received by the district from state-managed forestlands under ORS 530.115 (1)(b) and (c); and

      (D) Any positive amount obtained by subtracting the operating property taxes actually imposed by the district based on the rate certified pursuant to ORS 310.060 from the amount that would have been imposed by the district if the district had certified the maximum rate of operating property taxes allowed by law.

      (2) Each fiscal year, the Superintendent of Public Instruction shall calculate a State School Fund grant for each education service district as provided in this section.

      (3)(a) Each fiscal year, the superintendent shall calculate the total amount appropriated or allocated to the State School Fund and available for distribution to school districts, education service districts and programs + total amount of local revenues of all school districts, computed as provided in ORS 327.011, + total amount of local revenues of all education service districts. The superintendent may not include in the calculation under this paragraph amounts received by the Department of Education from the State School Fund under ORS 343.243.

      (b) The superintendent shall multiply the amount calculated under paragraph (a) of this subsection by 95.5 percent.

      (c) Based on the amount calculated under paragraph (b) of this subsection, the superintendent shall calculate a funding percentage to distribute as nearly as practicable under ORS 327.006 to 327.133, 327.348 and 327.356 to 327.359 the total amount calculated under paragraph (b) of this subsection as school district general purpose grants, high cost disabilities grants and transportation grants to school districts.

      (d) Based on the funding percentage calculated under paragraph (c) of this subsection, the superintendent shall calculate the general purpose grant, transportation grant and high cost disabilities grant amounts for each school district.

      (4)(a) The general services grant for an education service district shall equal the higher of:

      (A) The total amount calculated under subsection (3)(d) of this section for the school districts located within the territory of the education service district ´ (4.5 ¸ 95.5); or

      (B) $1,165,000, as adjusted each school year based on the same percentage by which the amount appropriated to the State School Fund for distribution to education service districts is increased or decreased as compared with the amount appropriated for the 2015-2016 school year, if the education service district received a general services grant of $1 million for the 2010-2011 school year.

      (b) Notwithstanding paragraph (a) of this subsection and only for State School Fund distributions made for the first school year after two or more education service districts join together, if an education service district received a general services grant as provided by paragraph (a)(B) of this subsection prior to the education service district joining together with one or more other education service districts to form a new education service district:

      (A) The general services grant for the new education service district shall be calculated for each component education service district as though the component education service districts had not joined together to form a new education service district; and

      (B) A component education service district that received an amount as provided by paragraph (a)(B) of this subsection shall be entitled to receive that amount under the calculation provided by this paragraph.

      (5) Subject to subsection (6) of this section, the State School Fund grant for an education service district = general services grant local revenues of the education service district.

      (6)(a) After completing the calculations under subsections (2) to (5) of this section, the Superintendent of Public Instruction shall apportion from the State School Fund to each education service district an amount = (funding percentage ´ general services grant) local revenues of the education service district.

      (b) The funding percentage used in paragraph (a) of this subsection shall be calculated by the superintendent to distribute as nearly as practicable the total amount available for distribution to education service districts from the State School Fund for each fiscal year.

      (7) Notwithstanding subsections (5) and (6) of this section:

      (a) The State School Fund grant of an education service district may not be less than zero; and

      (b) The State School Fund grant of an education service district shall be in an amount that, when combined with the local revenues of the education service district, equals $1,165,000, as adjusted each school year based on the same percentage by which the amount appropriated to the State School Fund for distribution to education service districts is increased or decreased as compared with the amount appropriated for the 2015-2016 school year.

      (8) An education service district shall distribute to school districts located within the territory of the education service district any amount of local revenues of the education service district that is greater than the general services grant. The amount that each school district receives under this subsection shall be prorated based on the district extended ADMw of the school district as calculated under ORS 327.013.

      (9)(a) An education service district shall distribute to a school district that is located within the territory of the education service district but that has withdrawn from the education service district as provided in ORS 334.015 the amounts received by the education service district as a general services grant and from the School Improvement Fund.

      (b) The amounts that a school district receives under this subsection:

      (A) Shall be prorated based on the district extended ADMw of the school district as calculated under ORS 327.013;

      (B) Shall equal 90 percent of the school district’s prorated share, as calculated under subparagraph (A) of this paragraph; and

      (C) May be used to pay for any expenses incurred in providing services described in ORS 334.175 (2) to the students of the school district by:

      (i) The school district;

      (ii) The education service district from which the school district withdrew;

      (iii) An education service district that is not the education service district from which the school district withdrew; or

      (iv) Any other public entity with which the school district has entered into a contract to provide the services. [2001 c.695 §9; 2003 c.715 §16; 2005 c.803 §8; 2005 c.828 §1; 2007 c.846 §§8,13; 2009 c.439 §§3,4; 2009 c.698 §§10,11; 2011 c.705 §§13,15; 2013 c.577 §8; 2013 c.735 §§8,9; 2015 c.437 §§1,2; 2021 c.355 §6; 2023 c.586 §4]

 

      327.020 [Repealed by 1957 c.612 §8 (327.024 enacted in lieu of 327.020)]

 

      327.021 Percentages and time of payment of apportionments to education service districts. (1)(a) Except as provided in paragraph (b) of this subsection, the Superintendent of Public Instruction shall distribute funds payable to education service districts from the State School Fund following the same percentages and dates specified for school districts under ORS 327.095.

      (b) Pursuant to rules adopted by the State Board of Education, the superintendent may specify an alternative date for making a distribution if a human-created disaster or a natural disaster affects the ability of the Department of Education to make a distribution by a specified date.

      (2) The Department of Education may require reports from education service districts of projected and estimated data necessary for the calculation of the State School Fund grant amount.

      (3) The Department of Education may adjust distributions to an education service district to reflect the difference between the amount payable to the education service district and the amount actually distributed to the education service district based on audited data and data received from reports from education service districts. [2001 c.695 §11; 2009 c.184 §1]

 

      327.022 Pediatric Nursing Facility Account. (1) The Pediatric Nursing Facility Account is established within the State School Fund.

      (2) The account shall consist of any moneys transferred as provided by ORS 327.008 and any other state or federal moneys available for the payments of the costs of educational services provided to students admitted to pediatric nursing facilities, as defined in ORS 442.015.

      (3) Moneys in the account are continuously appropriated to the Department of Education for the purpose of making payments pursuant to ORS 343.941 for the costs of educational services provided to students admitted to pediatric nursing facilities.

      (4) If the amount available in the account is not adequate to meet costs, the Department of Education shall submit a revised budget to the Legislative Assembly or, if the Legislative Assembly is not in session, to the Emergency Board. [2014 c.81 §5]

 

      Note: 327.022 was added to and made a part of ORS chapter 327 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      327.023 Grants for special and compensatory education programs. In addition to those moneys distributed through the State School Fund, the Department of Education shall provide from state funds appropriated therefor, grants in aid or support for special and compensatory education programs including:

      (1) The Oregon School for the Deaf.

      (2) Medicaid match for administration efforts to secure Medicaid funds for services provided to children with disabilities.

      (3) Hospital programs for education services to children who are hospitalized for extended periods of time or who require hospitalization due to severe disabilities as described in ORS 343.261.

      (4) Eligible day treatment programs and eligible residential treatment programs for education services to children who are in the treatment programs as described in ORS 343.961.

      (5) Regional services provided to children with a low incidence disability, as described in ORS 343.236.

      (6) Early childhood special education provided to preschool children with disabilities from age three until age of eligibility for kindergarten as described in ORS 339.185, 343.035, 343.041, 343.055, 343.065, 343.157 and 343.455 to 343.534.

      (7) Early intervention services for preschool children from birth until age three as described in ORS 339.185, 343.035, 343.041, 343.055, 343.065, 343.157 and 343.455 to 343.534.

      (8) Evaluation services for children with disabilities to determine program eligibility and needs as described in ORS 343.146.

      (9) Education services to children residing at state hospitals.

      (10) Disadvantaged children program under ORS 343.680.

      (11) Early childhood education under ORS 329.235.

      (12) Child development specialist program under ORS 329.255.

      (13) Youth care centers under ORS 420.885 that are not within a detention facility, as defined in ORS 419A.004.

      (14) Staff development and mentoring.

      (15) Career and technical education grants.

      (16) Special science education programs.

      (17) Talented and Gifted children program under ORS 343.391 to 343.413.

      (18) Pediatric nursing facility programs for educational services provided to students who are admitted to pediatric nursing facilities as provided in ORS 343.941. [1991 c.780 §5; 1993 c.45 §292; 1999 c.989 §33; 2001 c.900 §240; 2007 c.70 §92; 2007 c.858 §30; 2009 c.94 §2; 2009 c.562 §21; 2011 c.313 §3; 2011 c.701 §5; 2014 c.81 §8; 2015 c.282 §2; 2015 c.671 §2; 2021 c.190 §2; 2021 c.304 §2]

 

      327.024 [1957 c.612 §9 (enacted in lieu of 327.020); 1959 c.388 §3; 1965 c.100 §20; renumbered 327.063]

 

      327.025 [Repealed by 1957 c.612 §3 (327.028 enacted in lieu of 327.025)]

 

      327.026 State School Fund grant for programs; calculation; adjustment; rules. (1) In order to accomplish the purpose described in ORS 326.700, the State Board of Education shall adopt by rule definitions and procedures to be applied to the computation of the State School Fund allocations where necessary to make students enrolled in the Youth Corrections Education Program, as defined in ORS 326.695, and the Juvenile Detention Education Program, as defined in ORS 326.695, equivalent to students enrolled in common and union high school districts for purposes of distribution of the fund.

      (2)(a) The Youth Corrections Education Program shall receive from the State School Fund for each school year a special State School Fund grant, consisting of a general purpose grant that is equal to the Youth Corrections Education Program extended ADMw multiplied by Funding Percentage and further multiplied by Statewide Target per ADMw Grant. For the purpose of the calculation made under this paragraph:

      (A) ADMw equals ADM multiplied by 2.0 multiplied by the additional per student weight, as calculated in ORS 327.013 (1)(c)(A)(i).

      (B) Extended ADMw equals ADMw or ADMw of the prior year, whichever is greater.

      (b) Notwithstanding paragraph (a) of this subsection, the Youth Corrections Education Program may not receive moneys under this section from the State School Fund for any youth in the program who:

      (A) Has received a high school diploma; or

      (B) Is 21 years of age or older.

      (3) The Juvenile Detention Education Program shall receive from the State School Fund for each school year a special State School Fund grant, consisting of a general purpose grant that is equal to the Juvenile Detention Education Program extended ADMw multiplied by Funding Percentage and further multiplied by Statewide Target per ADMw Grant. For the purpose of the calculation made under this subsection:

      (a) ADMw equals ADM multiplied by 1.5.

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

      (4) Funds allocated to the Youth Corrections Education Program and the Juvenile Detention Education Program from the State School Fund shall remain with the Department of Education and shall be adjusted in the year following the distribution to reflect the actual ADMw of students in the Youth Corrections Education Program and the Juvenile Detention Education Program in the same manner as for the school districts under ORS 327.101. [1995 c.649 §7; 1997 c.821 §17; 2001 c.681 §5; 2007 c.839 §17; 2009 c.698 §12; 2014 c.6 §1; 2017 c.726 §5; 2018 c.39 §2]

 

      327.028 [1957 c.612 §4 (enacted in lieu of 327.025); 1957 c.708 §5; 1959 c.388 §4; 1965 c.100 §22; renumbered 327.075]

 

      327.029 Allocations for approved recovery schools; rules. (1) The State Board of Education shall adopt by rule definitions and procedures to be applied to the computation of the State School Fund allocations and Statewide Education Initiatives Account allocations to be used for approved recovery schools, as defined in ORS 336.680. When adopting rules, the board must collaborate with the advisory committee established by ORS 336.685.

      (2) For allocations made from the State School Fund, each approved recovery school shall receive for each school year a special State School Fund grant, consisting of a general purpose grant that is equal to the amount that the school district in which the approved recovery school is located would receive for the student. The amount that the school district would receive for the student shall:

      (a) Be based on the school district’s general purpose grant per ADM as calculated under ORS 327.013; and

      (b) Include any additional amounts attributable to the student under ORS 327.013 (1)(c), subject to any applicable limitations under ORS 327.013 (1)(c)(C).

      (3) For allocations made from the Statewide Education Initiatives Account, the rules adopted under this section shall provide, to the greatest extent practicable but subject to the discretion of the board, that allocations shall be in an amount necessary to pay the difference between:

      (a) The actual cost for providing education to students at the approved recovery school; and

      (b) The amounts received for providing education to students at the approved recovery school from allocations made from the State School Fund under subsection (2) of this section.

      (4) Funds allocated to approved recovery schools from the State School Fund and the Statewide Education Initiatives Account shall remain with the Department of Education and shall be adjusted in the year following the distribution to reflect the actual ADMw of students in the approved recovery schools in the same manner as for school districts under ORS 327.101. [2023 c.513 §7]

 

      327.030 [Repealed by 1957 c.612 §18]

 

      327.032 [Formerly 327.070; 1965 c.100 §28; renumbered 327.103]

 

      327.033 Approved transportation costs; expenditure limitations; rules. (1) As used in this section:

      (a) “Active transportation” means the arrival to, or departure from, a school by students who:

      (A) Reside less than three miles from school; and

      (B) Use human-powered forms of travel, including walking or bicycling.

      (b)(A) “Active transportation costs” means costs incurred by a school district for facilitating the use of active transportation, including costs incurred for:

      (i) A pedestrian or bicycle group;

      (ii) A crossing guard; or

      (iii) Staff time required for coordinating active transportation options.

      (B) “Active transportation costs” does not include costs incurred by a school district for:

      (i) Subcontracting the school district’s transportation services to a private transportation provider; or

      (ii) The time of an individual who is not an employee of the school district.

      (c)(A) “Alternative transportation” means the arrival to, or departure from, a school by students using active transportation or public transportation.

      (B) “Alternative transportation” does not include transportation that is subcontracted by a school district to a private transportation provider.

      (d) “Alternative transportation costs” includes:

      (A) Active transportation costs; and

      (B) Costs incurred by a school district for public transportation, including costs incurred for staff time required for coordinating public transportation options.

      (e) “Environmental Mitigation Trust Agreement” has the meaning given that term in ORS 468A.795.

      (f) “Public transportation” means forms of transportation that are provided by a public entity, charge set fares, run on fixed routes and are available to the public.

      (g) “Retrofit” has the meaning given that term in ORS 468A.795.

      (h) “Suitable and sufficient” means transportation that is appropriate for a particular student or group of students based on:

      (A) The age of the student;

      (B) The physical or mental capabilities of the student;

      (C) The distance the student is to be transported; and

      (D) The safety of the student to be transported.

      (2)(a) The State Board of Education shall adopt rules to determine the amounts to reimburse a school district for costs incurred by the school district in transporting students described in ORS 327.006 (2)(a).

      (b) The rules adopted under this subsection must allow for the reimbursement of alternative transportation costs that are approved transportation costs in an amount that does not exceed five percent of the school district’s transportation grant under ORS 327.013. Alternative transportation costs are considered approved transportation costs if:

      (A) The use of alternative transportation is included as part of a supplemental plan approved by the State Board of Education, as provided by ORS 327.043; or

      (B) The use of alternative transportation is included as part of a waiver approved by the State Board of Education, as provided by ORS 327.043.

      (c) Notwithstanding paragraph (b) of this subsection and subject to paragraph (d) of this subsection, alternative transportation costs related to public transportation are approved transportation costs only if the school district submits sufficient documentation to establish that:

      (A) No other transportation options, including active transportation options, are suitable and sufficient;

      (B) The school district engaged in efforts to recruit, and was subsequently unable to hire, sufficient workforce to ensure:

      (i) Reliable service by a school bus; and

      (ii) Timely transport of students to and from school; and

      (C) The school district conducted a good faith effort to hire, train and retain drivers of school buses in a manner that included competitive wages and hiring practices consistent with applicable collective bargaining agreements.

      (d) If, during the 2022-2023 school year, costs incurred by a school district for transit passes were considered approved transportation costs, the costs incurred by the school district after January 1, 2024, for transit passes shall continue to be considered approved transportation costs.

      (3) Approved transportation costs shall be estimated for the year of distribution.

      (4) In determining approved transportation costs related to school buses, the State Board of Education:

      (a) Shall include depreciation of original cost to the school district of district-owned buses, not in excess of 10 percent per year;

      (b) Shall include the costs to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions, except that the board may not include the costs paid with moneys received from the state by a school district from the Clean Diesel Engine Fund under ORS 468A.801 (2)(a) to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions; and

      (c) Shall include costs to school buses powered by diesel engines as allowed in the Environmental Mitigation Trust Agreement, except that the board may not include costs paid from the Environmental Mitigation Trust Agreement in the calculation of the transportation grant computed as provided in ORS 327.013.

      (5) School districts shall account separately for those funds received from the State School Fund attributable to the costs included under subsection (4) of this section, and expenditure of those funds shall be limited as follows:

      (a) The expenditure of funds attributable to costs under subsection (4)(a) of this section shall be limited to the acquisition of new buses.

      (b) The expenditure of funds attributable to costs under subsection (4)(b) and (c) of this section shall be limited to the costs to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions.

      (6) The transportation grant computed as provided in ORS 327.013 when combined with costs paid from the Environmental Mitigation Trust Agreement to replace school buses powered by diesel engines may not exceed the purchase price of the buses for which the funds described in this subsection were received. [1991 c.780 §7a; 2007 c.855 §3; 2009 c.458 §1; 2017 c.742 §13; 2023 c.524 §1]

 

      Note: The amendments to 327.033 by section 1, chapter 524, Oregon Laws 2023, become operative July 1, 2024, and apply to approved transportation costs incurred on or after July 1, 2024. See section 3, chapter 524, Oregon Laws 2023. The text that is operative until July 1, 2024, is set forth for the user’s convenience.

      327.033. (1) As used in this section, “retrofit” and “Environmental Mitigation Trust Agreement” have the meanings given those terms in ORS 468A.795.

      (2) Approved transportation costs shall be estimated for the year of distribution.

      (3) In determining approved transportation costs, the State Board of Education:

      (a) Shall include depreciation of original cost to the school district of district-owned buses, not in excess of 10 percent per year;

      (b) Shall include the costs to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions, except that the board may not include the costs paid with moneys received from the state by a school district from the Clean Diesel Engine Fund under ORS 468A.801 (2)(a) to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions; and

      (c) Shall include costs to school buses powered by diesel engines as allowed in the Environmental Mitigation Trust Agreement, except that the board may not include costs paid from the Environmental Mitigation Trust Agreement in the calculation of the transportation grant computed as provided in ORS 327.013.

      (4) School districts shall account separately for those funds received from the State School Fund attributable to the costs included under subsection (3) of this section, and expenditure of those funds shall be limited as follows:

      (a) The expenditure of funds attributable to costs under subsection (3)(a) of this section shall be limited to the acquisition of new buses.

      (b) The expenditure of funds attributable to costs under subsection (3)(b) and (c) of this section shall be limited to the costs to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions.

      (5) The transportation grant computed as provided in ORS 327.013 when combined with costs paid from the Environmental Mitigation Trust Agreement to replace school buses powered by diesel engines may not exceed the purchase price of the buses for which the funds described in this subsection were received.

 

      327.035 [Amended by 1953 c.108 §3; 1957 c.612 §10; 1959 c.388 §5; 1963 c.142 §2; 1965 c.100 §17; 1965 c.323 §1; 1971 c.107 §1; repealed by 1991 c.780 §30]

 

      327.038 [1957 s.s. c.2 §3; repealed by 1959 c.388 §15]

 

      327.040 [Repealed by 1957 c.612 §18]

 

      327.042 [1957 c.708 §§2,3; 1959 c.388 §6; 1963 c.570 §1d; 1965 c.100 §18; 1969 c.625 §2; 1971 c.21 §1; 1971 c.107 §2; 1973 c.750 §4; 1977 c.840 §2; repealed by 1991 c.780 §30]

 

      327.043 When district required to provide transportation; supplemental plans and waivers. (1) As used in this section, “alternative transportation,” “public transportation” and “suitable and sufficient” have the meanings given those terms in ORS 327.033.

      (2) A school district is required to provide transportation for elementary school students who reside more than one mile from school and for secondary school students who reside more than 1.5 miles from school. A school district is also required to provide transportation for any student identified in a supplemental plan approved by the State Board of Education.

      (3)(a) Notwithstanding subsection (2) of this section, the State Board of Education may waive the requirement to provide transportation to elementary and secondary students under paragraph (b) of this subsection.

      (b) The State Board of Education may waive the requirement to provide transportation:

      (A) For some or all of the elementary school students who reside more than one mile from school only if the school district that seeks the waiver provides suitable and sufficient alternative transportation to the elementary school students for whom the school district seeks the waiver. A school district that seeks a waiver under this subparagraph must present to the board a plan for providing suitable and sufficient alternative transportation to the elementary school students. Public transportation is not considered suitable and sufficient for elementary school students.

      (B) For secondary school students who reside more than 1.5 miles from school only if the school district provides or identifies suitable and sufficient alternative transportation for transporting secondary school students. A school district that seeks a waiver under this subparagraph must present to the board a plan for providing or identifying suitable and sufficient alternative transportation for transporting secondary school students.

      (4) When submitting to the State Board of Education a supplemental plan or a waiver request that includes alternative transportation and that seeks reimbursement for costs incurred in providing alternative transportation, a school district must include:

      (a) A comparison of:

      (A) The school district’s projected approved transportation costs to serve students without alternative transportation; and

      (B) The school district’s projected approved transportation costs if alternative transportation is approved.

      (b) For a supplemental plan or a waiver that proposes to use alternative transportation for one or more routes not previously included in a supplemental plan or a waiver, an explanation of why the school district has determined that the use of alternative transportation for the route is necessary.

      (c) For a waiver request that proposes to use public transportation for secondary school students, an explanation of how:

      (A) The use of public transportation qualifies for approved transportation costs under ORS 327.033 (2)(c);

      (B) Any financial support provided by a local transit district according to ORS 184.758 will be used prior to the school district incurring additional expenses; and

      (C) The school district conducted a good faith effort to hire, train and retain drivers of school buses in a manner that included competitive wages and hiring practices consistent with applicable collective bargaining agreements.

      (5) The State Board of Education may approve a supplemental plan or a waiver request to use alternative transportation and to provide reimbursement for costs incurred in providing alternative transportation only when:

      (a) The projected approved transportation costs under subsection (4)(a)(B) of this section are the same as or less than the projected transportation costs under subsection (4)(a)(A) of this section; or

      (b) The applying school district adequately demonstrates that any expenses incurred in excess of subsection (4)(a)(A) of this section that are attributable to alternative transportation will be paid with funds other than the transportation grant from the State School Fund.

      (6) Notwithstanding subsection (4) of this section, a school district may request a waiver that includes alternative transportation without providing the additional information required under subsection (4) of this section if the school district does not seek reimbursement for costs incurred in providing the alternative transportation.

      (7) When the State Board of Education approves a supplemental plan or waiver request to use alternative transportation and provides reimbursement for costs incurred in providing alternative transportation, the approved supplemental plan or waiver shall be effective for two years from the date of approval.

      (8) Notwithstanding subsections (4), (5) and (7) of this section, a school district that, prior to January 1, 2024, had been receiving reimbursement for costs incurred in providing transit passes under a supplemental plan or a waiver shall continue to receive reimbursement under the terms and conditions the school district was receiving reimbursement prior to January 1, 2024, unless the State Board of Education and the school district agree otherwise.

      (9) Nothing in this section prevents a school district from providing alternative transportation in addition to otherwise required transportation when no reimbursement is sought for costs incurred in providing the alternative transportation. [1991 c.780 §7; 2023 c.524 §2]

 

      Note: The amendments to 327.043 by section 2, chapter 524, Oregon Laws 2023, become operative July 1, 2024, and apply to approved transportation costs incurred on or after July 1, 2024. See section 3, chapter 524, Oregon Laws 2023. The text that is operative until July 1, 2024, is set forth for the user’s convenience.

      327.043. (1) A school district is required to provide transportation for elementary students who reside more than one mile from school and for secondary school students who reside more than 1.5 miles from school. A district is also required to provide transportation for any student identified in a supplemental plan approved by the State Board of Education.

      (2) Notwithstanding subsection (1) of this section, the State Board of Education may waive the requirement to provide transportation for secondary school students who reside more than 1.5 miles from school. A district must present to the board a plan providing or identifying suitable and sufficient alternate modes of transporting secondary school students.

 

      327.045 [Repealed by 1957 c.626 §1]

 

      327.046 [1961 c.502 §10; repealed by 1963 c.570 §33]

 

      327.047 [1997 c.821 §9; repealed by 2003 c.715 §41]

 

      327.048 [1961 c.502 §6; repealed by 1963 c.570 §33]

 

      327.049 [1985 c.555 §9; repealed by 1991 c.780 §30]

 

      327.050 [Amended by 1957 c.612 §11; repealed by 1963 c.570 §33]

 

      327.051 [1997 c.821 §8; repealed by 2003 c.715 §41]

 

      327.052 [1961 c.408 §1; repealed by 1963 c.570 §33]

 

      327.053 [1965 c.100 §18a; 1973 c.750 §5; 1977 c.840 §3; 1981 c.899 §1; 1985 c.555 §10; 1989 c.216 §2; repealed by 1991 c.780 §30]

 

      327.055 [Repealed by 1963 c.570 §33]

 

      327.056 [1977 c.840 §4; repealed by 1989 c.216 §1]

 

      327.057 [1957 c.556 §11; repealed by 1963 c.570 §33]

 

      327.058 [1959 c.528 §§4,11; 1961 c.500 §1; repealed by 1963 c.570 §33]

 

      327.059 [Formerly 327.018; 1969 c.625 §3; 1971 c.21 §2; 1973 c.750 §6; 1977 c.840 §5; 1981 c.899 §2; repealed by 1991 c.780 §30]

 

      327.060 [Amended by 1955 c.766 §1; repealed by 1963 c.570 §33]

 

      327.061 Computation of number of students in average daily membership. (1)(a) Numbers of students in average daily membership used in the distribution formula as specified in ORS 327.013 (1)(c), shall be projections of the average daily membership in the school district for the school year ending on June 30 of the distribution year. The Department of Education shall verify all projections used for purposes of the distribution formula.

      (b) For the purpose of paragraph (a) of this subsection:

      (A) A student may be included in average daily membership only if the student is reported with a school identification number, as issued in accordance with rules adopted by the State Board of Education.

      (B) A student may not be included in average daily membership if the student has only a program identification number. As used in this subparagraph, “program” means a series of interrelated activities or services contributing to the attainment of a goal or set of goals that are provided on a part-time basis, for a temporary time period or as a secondary component of educational services.

      (2) The department shall use information from the Department of Revenue under ORS 311.175 as the basis for determining projected school district property taxes. The department shall request relevant information from the school districts to enable the department to estimate the amount each school district shall receive from the State School Fund. The department shall provide this estimate no later than the first Monday in March of each year for the distribution for the following fiscal year.

      (3) Except as provided in subsection (4) of this section, a school district may appeal to the department any projection verified by the department under subsection (1) of this section. The department shall rule on the appeal in a timely manner and if necessary issue a revised estimate of the amount each school district shall receive from the State School Fund no later than the last Friday in March.

      (4) A school district may not appeal any projection verified under subsection (1) of this section if the school district failed to provide information requested by the department under subsection (2) of this section.

      (5) Notwithstanding the dates provided by this section and pursuant to rules adopted by the State Board of Education, the Superintendent of Public Instruction may specify an alternative date to provide an estimate or revised estimate if a human-created disaster or a natural disaster affects the ability of the Department of Education to provide the estimate or revised estimate by the date specified by this section. [1991 c.780 §11; 1993 c.18 §88; 2009 c.184 §2; 2009 c.698 §13; 2023 c.197 §1]

 

      327.062 [1955 c.103 §2; repealed by 1963 c.570 §33]

 

      327.063 [Formerly 327.024; 1969 c.270 §1; 1969 c.625 §4; 1971 c.107 §3; 1973 c.750 §7; 1977 c.840 §6; 1979 c.259 §2; 1981 c.804 §96; repealed by 1991 c.780 §30]

 

      327.065 [Amended by 1953 c.444 §11; 1953 c.711 §4; 1955 c.766 §2; 1957 c.328 §1; 1959 c.397 §1; 1961 c.537 §1; repealed by 1963 c.570 §33]

 

      327.067 [1957 c.219 §3; 1961 c.537 §2; repealed by 1963 c.570 §33]

 

      327.068 [1957 c.642 §§4,7; 1959 c.388 §7; repealed by 1963 c.570 §33]

 

      327.069 [1957 c.620 §1; 1959 c.388 §8; 1961 c.625 §1; part renumbered 330.630; repealed by 1963 c.570 §33]

 

      327.070 [Amended by 1957 c.658 §3; renumbered 327.032 and then 327.103]

 

      327.071 [1977 c.840 §7a; repealed by 1983 c.610 §8]

 

      327.072 [Amended by 1957 c.612 §12; 1963 c.570 §4; 1965 c.100 §21; 1969 c.625 §5; 1973 c.750 §8; repealed by 1991 c.780 §30]

 

      327.074 [Amended by 1965 c.100 §26; renumbered 327.097]

 

      327.075 [Formerly 327.028; 1969 c.625 §6; 1977 c.840 §7; 1979 c.277 §7; 1991 c.780 §14; 1993 c.61 §6; repealed by 1993 c.690 §6]

 

      327.076 [Repealed by 1965 c.100 §456]

 

      327.077 Remote small elementary school and small high school determination; effect; waiver; merger. (1) For purposes of this section:

      (a) The “adjusted average daily membership” or “ADMa” for an elementary school is the average daily membership for the school, but no less than 25.

      (b) The “adjusted average daily membership” or “ADMa” for a high school is the average daily membership for the school, but no less than 60.

      (2)(a) A school may qualify as a remote small elementary school if the average daily membership in kindergarten through grade eight for an elementary school teaching:

      (A) Nine grades is below 252.

      (B) Eight grades is below 224.

      (C) Seven grades is below 196.

      (D) Six grades is below 168.

      (E) Five grades is below 140.

      (F) Four grades is below 112.

      (G) Three grades is below 84.

      (H) Two grades is below 56.

      (I) One grade is below 28.

      (b) For purposes of this subsection, kindergarten may be included in the calculation for determining the number of grades at an elementary school only if the kindergarten is full-day kindergarten.

      (3) A school may qualify as a small high school if:

      (a) The school is in a school district that has an ADMw of less than 9,500; and

      (b) The average daily membership in grades 9 through 12 for a high school teaching:

      (A) Four grades is below 350.

      (B) Three grades is below 267.

      (4) An elementary school does not qualify as a remote small elementary school under subsection (2) of this section if it is within eight miles by the nearest traveled road from another elementary school in the same school district unless there are physiographic conditions that make transportation to another school not feasible.

      (5)(a) If an elementary school in a school district qualifies as a remote small elementary school, the district shall have an additional amount added to the district’s ADMw.

      (b) The additional amount = {252 (ADMa ¸ (number of grades in the school ¸ nine))} ´ 0.0045 ´ ADMa ´ distance adjustment.

      (6)(a) If a high school in a district qualifies as a small high school, the district shall have an additional amount added to the district’s ADMw.

      (b) The additional amount = {350 (ADMa ¸ (number of grades in the school ¸ four))} ´ 0.0029 ´ ADMa.

      (7) The distance adjustment for an elementary school = 0.025 for each 10th of a mile more than eight miles that a school is away from the nearest elementary school in the same school district measured by the nearest traveled road or 1.0, whichever is less.

      (8)(a) A school may qualify as a remote small elementary school under this section only if the location of the school has not changed since January 1, 1995, and if the school qualified as a remote small school on August 2, 2011.

      (b) A school may qualify as a small high school under this section only if:

      (A) The location of the school has not changed since January 1, 1995;

      (B) The school qualified as a small high school on July 23, 2009; and

      (C) On or after October 23, 1999, and prior to July 23, 2009, the school was not part of a high school that divided or otherwise reorganized into two or more high schools in the same city.

      (c) A public charter school as defined in ORS 338.005 may qualify as a remote small elementary school under this section only if the location of the school has not changed since January 1, 1995, and if the school qualified as a remote small school on August 2, 2011.

      (d) A public charter school as defined in ORS 338.005 may qualify as a small high school under this section only if the location of the school has not changed since January 1, 1995, and if the school qualified as a nonchartered public remote small school on July 18, 1995.

      (e) The Superintendent of Public Instruction may waive the requirements of paragraph (a), (b), (c) or (d) of this subsection if the superintendent determines that exceptional circumstances exist.

      (f) An alternative education program as defined in ORS 336.615 may not qualify as a small high school under this section.

      (9) The opening of a public charter school shall not disqualify a school as a remote small elementary school under subsection (4) of this section or change the distance adjustment for a school under subsection (7) of this section.

      (10)(a) Notwithstanding subsections (3), (6) and (8)(b) and (d) of this section, if two high schools merge and prior to the merger at least one of the high schools qualified as a small high school under this section, the Department of Education shall continue to add an additional amount pursuant to subsection (6) of this section to the ADMw of the school district in which the new merged high school is located that is equal to the higher of:

      (A) The additional amount the school district of each of the former small high schools would have received under this section for the small high school based on the ADMa of each of the high schools prior to the merger; or

      (B) In the case of a high school that remains qualified as a small high school under subsection (3) of this section after a merger, the ADMa of the merged small high school.

      (b) The department shall add the additional amount under this subsection only for the first four fiscal years after the merger of the two high schools is final. If the merger of the two high schools becomes final on or before September 1, for purposes of this paragraph the merger shall be considered final in the prior fiscal year.

      (11)(a) Notwithstanding the distance provisions of subsections (4) and (7) of this section, if two or more school districts merge and, prior to the merger, at least one of the districts had one or more remote small elementary schools for which the district received an additional amount added to the district’s ADMw as provided by this section, the district shall continue to qualify for and have an additional amount added to the district’s ADMw for each elementary school that qualified as a remote small elementary school prior to the merger, based on distance calculations made before the merger, as long as the elementary school continues to satisfy the average daily membership requirements identified in subsection (2) of this section.

      (b) Notwithstanding the school district ADMw requirements of subsection (3)(a) of this section, if two or more school districts merge and, prior to the merger, at least one of the districts had one or more small high schools for which the district received an additional amount added to the district’s ADMw as provided by this section, the district shall continue to have an additional amount added to the district’s ADMw for each high school that qualified as a small high school prior to the merger even if the district no longer satisfies the ADMw requirement of subsection (3)(a) of this section as long as the high school continues to satisfy the average daily membership requirements identified in subsection (3)(b) of this section. [1995 c.649 §2; 1999 c.200 §27; 1999 c.1066 §22; 2003 c.715 §32; 2009 c.705 §§5,7; 2009 c.800 §1; 2011 c.704 §8; 2011 c.710 §§1,2; 2019 c.657 §1; 2023 c.332 §1]

 

      327.080 [Amended by 1957 c.612 §13; 1963 c.570 §5; repealed by 1965 c.100 §456]

 

      327.081 [1993 c.61 §14; 1995 c.649 §5; repealed by 2001 c.695 §38]

 

      327.082 [1973 c.707 §6; repealed by 2011 c.704 §13]

 

      327.085 [Repealed by 1957 c.612 §6 (327.018 enacted in lieu of 327.085)]

 

      327.090 [Amended by 1959 c.388 §10; 1963 c.570 §6; 1965 c.100 §27; repealed by 1991 c.780 §30]

 

      327.091 [1957 c.626 §8; repealed by 1963 c.570 §33]

 

      327.092 [1957 c.626 §9; repealed by 1963 c.570 §33]

 

      327.093 [1957 c.626 §10; repealed by 1963 c.570 §33]

 

      327.094 [Subsections (1) and (2) enacted as 1957 c.626 §13; subsection (3) of 1957 Replacement Part enacted as 1957 s.s. c.2 §4(3); 1959 c.388 §11; 1963 c.570 §7; 1965 c.100 §25; subsection (4) enacted as 1971 c.22 §3; 1989 c.456 §1; repealed by 1991 c.780 §30]

 

      327.095 Percentages and time of payment of apportionments to school districts. (1)(a) Except as provided in paragraph (b) of this subsection, funds due school districts under ORS 327.008 and 327.013 shall be paid approximately 16-2/3 percent on July 15, approximately eight and one-third percent on the 15th day of each of the months of August, September, October, November, December, January, February, March and April and the balance on May 15. An equitable apportionment based on the most recent data available shall be made on the installment dates prior to May 15. If such payments are too high or too low, appropriate adjustments shall be made in the May 15 payments.

      (b) Pursuant to rules adopted by the State Board of Education, the Superintendent of Public Instruction may specify an alternative date for making an apportionment if a human-created disaster or a natural disaster affects the ability of the Department of Education to make an apportionment by a specified date.

      (2)(a) Except as provided in paragraph (b) of this subsection, if the reports required by ORS 327.133 have not been received from a school district when due, no further apportionments shall be made to the school district until the reports are filed.

      (b) Pursuant to rules adopted by the State Board of Education, the Superintendent of Public Instruction may waive a reporting date or specify an alternative date for providing reports if a human-created disaster or a natural disaster affects the ability of the school district to provide the reports by a specified date.

      (3) If the combined estimated level of ADMw under ORS 327.013 (1)(c) of all school districts is less than the statewide projected level of ADMw, the Department of Education may:

      (a) Adjust the distributions to school districts on the installment dates to reflect the difference; and

      (b) Set aside an amount of the funds appropriated to the State School Fund for the fiscal year until the May 15 distribution. [Amended by 1953 c.108 §3; 1957 c.612 §14; 1959 c.388 §12; 1965 c.100 §24; 1975 c.196 §1; 1977 c.280 §1; 1977 c.840 §8; 1981 c.678 §9; 1983 c.610 §7; 1991 c.780 §16; 1997 c.821 §18; 2002 s.s.1 c.4 §1; 2002 s.s.4 c.1 §1; 2009 c.184 §3; 2009 c.698 §14]

 

      327.097 Apportionment where district changed. Where any territorial or organizational change in a school district has occurred between the date of the report and the apportionment, the Superintendent of Public Instruction shall make the payment on an equitable basis to the districts the territory or organization of which has been changed. [Formerly 327.074]

 

      327.099 Adjustment of distribution within fiscal year. (1) The Department of Education shall adjust the distribution to a school district to reflect the difference between the estimated level of local revenues to the district under ORS 327.011 and the projected level of those same local revenues used to calculate the State School Fund apportionment to the district. The adjustment shall be incorporated in the May 15 apportionment to the district in the distribution year.

      (2) The department shall adjust the May 15 apportionment to a school district in the distribution year to reflect an ADMw of the district equal to the higher of the ADMw of the prior year or the adjusted ADMw for the December quarter. Adjusted ADMw for the December quarter shall equal:

      (a) ADMw as determined by the department from information provided in the December quarterly report for the current distribution year filed with the department under ORS 327.133;

      (b) Multiplied by the lesser of 1.0 or the average of the ratios for the preceding two years of the ADM for the year ending June 30 to the ADM for the quarter ending December 31 for the same school year as filed under ORS 327.133.

      (3) The sum equal to the sum of all negative adjustments made to the May 15 apportionment under subsection (1) of this section shall be used by the department for purposes of funding positive adjustments required under subsection (1) of this section and adjustments required under subsection (2) of this section.

      (4) The department shall also set aside an amount of the funds appropriated to the State School Fund for the fiscal year to fund any positive adjustments required under subsection (1) of this section and adjustments required under subsection (2) of this section in excess of the amount available under subsection (3) of this section. The amount set aside shall be as determined by law.

      (5) If the amounts available under subsections (3) and (4) of this section are either not sufficient to fund the positive adjustments or exceed the positive adjustments to districts required under subsections (1) and (2) of this section and the adjustments required under subsection (2) of this section, the Superintendent of Public Instruction shall recalculate the funding percentage in ORS 327.013 (1)(a) to distribute as nearly as practicable the total sum available for distribution. [1991 c.780 §12; 1993 c.61 §7; 2003 c.715 §24; 2005 c.755 §19; 2009 c.698 §15]

 

      327.100 [Repealed by 1963 c.570 §33]

 

      327.101 Adjustment of distribution between fiscal years. (1) Each fiscal year, the distribution to a school district under ORS 327.008 and 327.013 shall be adjusted to fully reflect the difference between the apportionment due to the district for the prior fiscal year under ORS 327.008 and 327.013, and the amounts actually distributed to the district in the prior fiscal year under ORS 327.008, 327.013 and 327.099. The adjustment shall be made to the May 15 apportionment to the district.

      (2) No consideration shall be made in the adjustment made under subsection (1) of this section for any penalties, forfeitures or additional receipts of State School Fund moneys, except when expressly directed by law.

      (3) An amount of funds equal to the sum of all negative adjustments made to the May 15 apportionment under subsection (1) of this section shall be used by the Department of Education for purposes of funding positive adjustments required under subsection (1) of this section in the same fiscal year.

      (4) If the amounts available under subsection (3) of this section are either not sufficient or exceed the adjustments to districts required under subsection (1) of this section, the Superintendent of Public Instruction shall recalculate the funding percentage in ORS 327.013 (1)(a) to distribute as nearly as practicable the total sum available for distribution. [1991 c.780 §13; 1993 c.61 §8; 2005 c.209 §4; 2005 c.755 §20; 2009 c.698 §16]

 

      327.102 Standard school complaints; process; rules. (1) The State Board of Education shall adopt by rule requirements for the process that a school district must use when the district receives a complaint pertaining to whether a school in the district is a standard school as defined in ORS 327.006.

      (2) The rules adopted by the board shall require school districts to establish and implement a process for the prompt resolution of a complaint and shall require the process to:

      (a) Have specific timelines for the completion of the process by both the district and the person making the complaint;

      (b) Have a specific time period within which the district must make a final decision on a complaint, after which the final decision on the complaint may be appealed to the Superintendent of Public Instruction; and

      (c) Recognize that if a district does not provide a written decision within the specific time period, failure to provide such a decision will be regarded as the district’s final decision. [2007 c.519 §1]

 

      Note: 327.102 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.103 Standard school presumed; effect of finding of deficiency; rules. (1) All school districts are presumed to maintain a standard school district until the school district has been found to be deficient by the Superintendent of Public Instruction, pursuant to standards and rules of the State Board of Education.

      (2) If any deficiencies are not corrected before the beginning of the school year next following the date of the finding of deficiency and if an extension has not been granted under subsection (3) of this section, the Superintendent of Public Instruction may withhold portions of State School Fund moneys otherwise allocated to the school district for operating expenses until such deficiencies are corrected unless the withholding would create an undue hardship, as determined pursuant to rules of the State Board of Education.

      (3)(a) Within 90 days of the finding of deficiency, a school district found not to be in compliance shall submit a plan, acceptable to the Superintendent of Public Instruction, for meeting standardization requirements. A team of Department of Education staff shall contact the school district and offer technical assistance. When an acceptable plan for meeting standardization requirements has been submitted, the Superintendent of Public Instruction may allow an extension of time before withholding moneys, not to exceed 12 months, if the superintendent determines that such deficiencies cannot be corrected or removed before the beginning of the next school year.

      (b) Notwithstanding paragraph (a) of this subsection, the Superintendent of Public Instruction may not grant an extension of time if a school district could correct the deficiency through merger.

      (c) For the period of the extension of time under this subsection, the school district shall be considered a conditionally standard school district.

      (4)(a) Regardless of whether the Superintendent of Public Instruction has granted a school district an extension of time under subsection (3) of this section and except as provided in paragraph (b) of this subsection, a school district that fails to submit a plan for meeting standardization requirements within the time specified by the superintendent may not receive further State School Fund moneys until a plan acceptable to the superintendent is submitted.

      (b) Pursuant to rules adopted by the State Board of Education, the Superintendent of Public Instruction may extend the time specified for submitting a plan if the superintendent determines that a human-created disaster or a natural disaster affects the ability of the school district to comply with the date requirement. [Formerly 327.032; 1989 c.491 §5; 1991 c.693 §32; 1995 c.660 §47a; 2003 c.390 §§1,3; 2009 c.184 §4]

 

      327.105 [Repealed by 1963 c.570 §33]

 

      327.106 School districts required to offer kindergarten through grade 12; exceptions. (1) Any school district that does not offer education programs in kindergarten through grade 12 shall be considered nonstandard under ORS 327.103. A school district may satisfy the requirements of this section by offering half-day kindergarten or full-day kindergarten.

      (2) Notwithstanding subsection (1) of this section, a school district is not considered to be nonstandard under ORS 327.103 if the school district:

      (a) Is not required to merge under section 2 (3) or (4), chapter 393, Oregon Laws 1991.

      (b) Meets all of the following requirements:

      (A) The school district offered education programs in kindergarten through grade 12 on September 1, 1996;

      (B) After September 1, 1996, a majority of the board of the school district voted not to offer education programs in grades 9 through 12; and

      (C) The school district merges with a unified school district and the merger takes effect under ORS 330.103 within one year after the vote of the board under this paragraph.

      (c) Is a union high school district, as defined in ORS 330.005. [1991 c.393 §3; 1995 c.659 §2; 1997 c.521 §13; 2011 c.704 §4]

 

      Note: 327.106 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.108 Post-graduate scholar programs; use of State School Fund moneys. (1) As used in this section, “post-graduate scholar” means a student who:

      (a) Has been in grades 9 through 12 for more than a total of four school years; and

      (b) Has satisfied the requirements for a high school diploma or a modified diploma as provided in ORS 329.451.

      (2) A school district may establish a program under this section to allow:

      (a) A post-graduate scholar who satisfies the requirements of subsection (3) of this section to:

      (A) Enroll in courses at a community college that are part of a course of study approved by the school district and that may lead to a certificate or diploma;

      (B) Enroll in the courses described in subparagraph (A) of this paragraph for one school year after the post-graduate scholar has satisfied the requirements for a high school diploma or a modified diploma as provided in ORS 329.451; and

      (C) Have the school district pay the costs incurred for the courses described in subparagraph (A) of this paragraph, including tuition, fees and books.

      (b) A school district that satisfies the requirements of subsection (4) of this section to receive and expend moneys distributed from the State School Fund under ORS 327.013 for the purpose of paying the costs described in paragraph (a)(C) of this subsection.

      (3) A post-graduate scholar qualifies to participate in a program established under this section if the post-graduate scholar:

      (a) Has completed and submitted the Free Application for Federal Student Aid, if eligible to file the application;

      (b) Is not eligible for a grant under the Oregon Promise program described in ORS 341.522 because of failure to earn the minimum cumulative grade point average, or submitted a complete application for a grant under the Oregon Promise program by the established deadline but did not receive a grant;

      (c) Is not eligible for a federal aid grant that is equal to or more than the average cost of tuition and fees at a community college, as determined by the Department of Education after consultation with the Director of the Office of Student Access and Completion; and

      (d) Retains a legal residence within the boundaries of the school district through which the post-graduate scholar satisfied the requirements for a high school diploma or a modified diploma.

      (4) A school district may receive and expend moneys distributed from the State School Fund under ORS 327.013 for a program established under this section if the school district meets all of the following criteria:

      (a) Has a policy for the program that is adopted by the school district board and that describes:

      (A) The goals of the program, including target high school graduation rates for underserved students;

      (B) Minimum requirements for grade point average, attendance and participation in regular in-person meetings with school district staff to monitor student progress;

      (C) The manner by which the results of the program will be measured and monitored; and

      (D) The courses of study that are approved by the school district for the purpose of this section.

      (b) Enters into a written agreement with the community college that has a service area within which the school district is located.

      (c) Has dedicated staff to provide support services to post-graduate scholars, including regular in-person meetings to monitor student progress that occur at least twice each month.

      (d) Ensures that a majority of students from the school district who are enrolled in courses at a community college meet at least one of the criteria identified in this paragraph. The student:

      (A) Is not a post-graduate scholar;

      (B) Has received an extended diploma or a certificate for passing an approved high school equivalency test such as the General Educational Development (GED) test;

      (C) Was enrolled in an alternative high school program within the preceding 12 months;

      (D) Is, or will be, a first-generation graduate of high school;

      (E) Is, or has been, a child in a foster home;

      (F) Is, or has been, placed in a facility or an education program by a court;

      (G) Is homeless;

      (H) Is a parent; or

      (I) Was identified as eligible for free or reduced price lunches within the preceding 12 months.

      (5) Notwithstanding ORS 327.013, the weighted average daily membership assigned for each post-graduate scholar shall be adjusted as follows:

      (a) By subtracting 0.25 from the average daily membership assigned for each post-graduate scholar participating in the program established under this section; and

      (b) Without adding any amounts identified in ORS 327.013 (1)(c)(A).

      (6) For purposes of this section, a school district may not counsel or assist a student to delay receiving a high school diploma or a modified diploma for the purpose of participating in a school-sponsored, post-secondary education program.

      (7) Nothing in this section:

      (a) Prohibits a school district from receiving or expending moneys related to the education of post-graduate scholars that are not received or expended for purposes of this section, as long as the school district does not receive or expend State School Fund distributions under ORS 327.013 for those purposes.

      (b) Requires a post-graduate scholar to accept or use any federal grant moneys to offset costs of tuition, fees or books incurred by a post-graduate scholar at a community college.

      (c) Requires a school district to add or extend existing bus routes or other transportation services for post-graduate scholars. Any transportation costs incurred by a school district to add or extend existing bus routes or other transportation services are not considered approved transportation costs for the purposes of ORS 327.013. Nothing in this paragraph prohibits post-graduate scholars from using existing bus routes or transportation services provided by the school district.

      (8) Notwithstanding subsection (3) of this section, a post-graduate scholar may not accept or use any federal grant moneys to offset costs of tuition, fees or books incurred by a post-graduate scholar at a community college.

      (9) A school district may receive or expend moneys distributed from the State School Fund under ORS 327.013 for post-graduate scholars who enroll in courses at a community college only if the post-graduate scholars are enrolled in the courses as part of a program established under this section. [2016 c.109 §2; 2017 c.66 §32; 2017 c.726 §16]

 

      327.109 Procedure if school district or charter school alleged to be involved in religious activity; complaint, investigation, finding; effect. (1) Upon receipt from a citizen of Oregon of a complaint that on its face is colorable that a school district or public charter school sponsors, financially supports or is actively involved with religious activity, the Superintendent of Public Instruction or the superintendent’s designated representative shall undertake promptly a preliminary investigation of the facts alleged in the complaint.

      (2) If, after the preliminary investigation, the superintendent finds that there is a substantial basis to believe that the school district or public charter school sponsors, financially supports or is actively involved with religious activity, the superintendent shall:

      (a) In the case of a school district:

      (A) Notify the complainant and the school district;

      (B) Withhold immediately all funds due the school district under ORS 327.095; and

      (C) Schedule a contested case hearing to be conducted in accordance with ORS 183.413 to 183.470.

      (b) In the case of a public charter school:

      (A) Notify the complainant, the public charter school, the school district in which the public charter school is located and the sponsor of the public charter school;

      (B) Withhold immediately all funds for the public charter school that, pursuant to ORS 338.155, are due under ORS 327.095 to the school district in which the public charter school is located;

      (C) Order the school district in which the public charter school is located to withhold immediately all funds due the public charter school under ORS 338.155; and

      (D) Schedule a contested case hearing to be conducted in accordance with ORS 183.413 to 183.470.

      (3)(a) In the case of a school district if, after the preliminary investigation, the superintendent finds that there is no substantial basis to believe that the school district sponsors, financially supports or is actively involved with religious activity, the superintendent shall notify the complainant and the district of that finding and shall not withhold funds due the district under ORS 327.095 or schedule a hearing.

      (b) In the case of a public charter school if, after the preliminary investigation, the superintendent finds that there is no substantial basis to believe that the public charter school sponsors, financially supports or is actively involved with religious activity, the superintendent shall notify the complainant, the public charter school, the school district in which the public charter school is located and the sponsor of the public charter school of that finding and shall not schedule a hearing or withhold funds for the public charter school that, pursuant to ORS 338.155, are due under ORS 327.095 to the school district in which the public charter school is located. The superintendent shall also order the school district in which the public charter school is located not to withhold funds due the public charter school under ORS 338.155.

      (4) During the preliminary investigation, the school district or public charter school shall cooperate to a reasonable degree with the superintendent and provide any evidence that the superintendent considers necessary for the investigation. If the school district or public charter school fails or refuses to cooperate to a reasonable degree with the superintendent during the investigation, the superintendent shall presume that there is a substantial basis to believe that the school district or public charter school sponsors, financially supports or is actively involved with religious activity and shall proceed as provided in subsection (2) of this section.

      (5) If the superintendent makes a finding under subsection (2) or (4) of this section, the school district or public charter school shall receive no funds under ORS 327.095 or 338.155 from the date of the superintendent’s finding until the superintendent finds that the school district or public charter school is no longer sponsoring, financially supporting or actively involved with religious activity.

      (6) The funds withheld under this section shall be held in an escrow account and shall be removed from that account only as follows:

      (a) If the superintendent determines, after a contested case hearing, or a court on appeal rules, that the school district or public charter school never sponsored, financially supported or was actively involved with religious activity, the entire amount, including interest thereon, in the escrow account shall be released to the school district or public charter school.

      (b) If the superintendent determines, after a contested case hearing, or a court on appeal rules, that the school district or public charter school sponsored, financially supported or was actively involved with religious activity in the past but has ceased to do so, that portion of the amount, including interest thereon, in the escrow account that accrued to the school district or public charter school after the school district or public charter school ceased the proscribed conduct shall be paid to the school district or public charter school. Any amount, including interest thereon, permanently withheld from the school district or public charter school shall revert to the State School Fund or to the General Fund, if the biennium has ended.

      (c) If the school district or public charter school does not cease the proscribed conduct by the beginning of the next school year, the superintendent shall notify the State Treasurer who shall cause the amount in the escrow account, including interest thereon, to revert to the State School Fund or to the General Fund, if the biennium has ended.

      (7) If the superintendent schedules a contested case hearing, as provided in subsection (2) of this section, the superintendent may conduct such further investigation of the facts relevant to the complaint as the superintendent considers necessary. In conducting the investigation, the superintendent shall have the power of subpoena to compel production of documents and attendance of witnesses at depositions and may do all things necessary to secure a full and thorough investigation.

      (8) If a person or school district or public charter school fails to comply with any subpoena issued under subsection (7) of this section, a judge of the circuit court of any county, on application of the superintendent, shall compel obedience by proceedings for contempt as in the case of disobedience of the requirements of a subpoena issued from circuit court. [1985 c.584 §2; 1999 c.200 §28; 2005 c.209 §5]

 

      327.110 [Amended by 1955 c.537 §1; repealed by 1957 c.322 §1]

 

      327.115 [Amended by 1955 c.385 §1; 1959 c.388 §13; repealed by 1963 c.570 §33]

 

      327.120 Correction of errors in apportionments. The Superintendent of Public Instruction may correct, in a succeeding year, any errors in apportionment by the withholding of the amount of an overapportionment or by the payment of an underapportionment from funds to be apportioned.

 

      327.125 Superintendent to administer statutes related to state financing of education; board rules. The Superintendent of Public Instruction shall administer the provisions of ORS 327.006 to 327.133, 327.348, 327.356 to 327.359 and 327.731. The State Board of Education shall adopt all necessary rules not inconsistent with ORS 327.006 to 327.133, 327.348, 327.356 to 327.359 and 327.731 to carry into effect the provisions of those statutes. [Amended by 1963 c.570 §8; 1965 c.100 §29; 1989 c.491 §6; 1991 c.780 §17; 2007 c.846 §14; 2013 c.735 §§10,11; 2021 c.355 §7]

 

      327.128 Disbursement and expenditures of moneys appropriated or allocated to Department of Education. (1) The Department of Education shall disburse and expend moneys in a manner that is consistent with the intended purposes for which the moneys were appropriated or allocated to the department.

      (2) If moneys are appropriated or allocated to the department and provisions for the intended disbursement or expenditure of the moneys are not provided in statute, in agreement or by any other means related to the appropriation or allocation, the department may disburse or expend the moneys in the manner the department determines is most consistent with the intended purposes for which the moneys were appropriated or allocated, including by:

      (a) Awarding a grant;

      (b) Entering into a contract, intergovernmental agreement or other legal agreement; or

      (c) Passing through moneys based on state or federal law or legal agreement.

      (3) This section applies to funds received from the federal government or its agencies, funds appropriated by the Legislative Assembly or any other funds appropriated or allocated to the department. [2021 c.511 §2]

 

      Note: 327.128 was added to and made a part of ORS chapter 327 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      327.130 [Repealed by 1965 c.100 §456]

 

      327.133 Reports by districts. (1)(a) Except as provided in paragraph (b) of this subsection, each school district, other than an education service district, shall file with the Superintendent of Public Instruction:

      (A) By July 15 of each year, an annual report covering the school year ending on the preceding June 30; and

      (B) By January 15, of each year, a December quarterly report covering the quarter of the current school year commencing October 1 and ending December 31.

      (b) Pursuant to rules adopted by the State Board of Education, the Superintendent of Public Instruction may waive a reporting date or specify an alternative date for filing a report if a human-created disaster or a natural disaster affects the ability of the school district to file a report by the specified date.

      (2) Each such report shall show the average daily membership of resident pupils of the school district for the period covered and shall also contain such other information as the Superintendent of Public Instruction may require. [Formerly 327.200; 1973 c.750 §9; 2009 c.184 §5]

 

      327.135 [Amended by 1955 c.660 §27; 1957 c.612 §15; repealed by 1963 c.570 §33]

 

      327.137 Audit reports filed with department; effect of failure to file or insufficiency of report. (1)(a) Every common or union high school district or education service district shall file a copy of its audit report with the Department of Education within six months of the end of the fiscal year for which the audit is required. The audit report shall include:

      (A) Information necessary for the computation required in the administration of ORS 327.006 to 327.133, 327.348, 327.356 to 327.359, 327.731, 328.542 and 530.115 and this section; and

      (B) If the district is a sponsor of any public charter schools, a copy of each annual audit forwarded to the district as required by ORS 338.095 (4).

      (b) If the audit report, as submitted to the district, fails to provide the detail necessary for the computation required in the administration of ORS 327.006 to 327.133, 327.348, 327.356 to 327.359, 327.731, 328.542 and 530.115 and this section, the district shall submit the necessary information on forms provided by the department within the time prescribed for filing the audit in this section.

      (c) The Superintendent of Public Instruction may withhold any payments from the State School Fund for a public charter school that, pursuant to ORS 338.155, are due to a district under ORS 327.095 if:

      (A) The audit report filed by the district fails to include the public charter school annual audit as required by paragraph (a)(B) of this subsection; and

      (B) The district has not filed the public charter school annual audit with the department by April 1.

      (d) If payments are withheld as provided by paragraph (c) of this subsection, the superintendent may allow payments to be made from the State School Fund to the district upon receipt of the annual audit or upon the meeting of any other conditions identified by rule of the State Board of Education.

      (e) Any district failing to file a copy of an audit report under this section or a report under ORS 327.133 may not receive any payments from the State School Fund until the report is filed.

      (2) Notwithstanding the timeline provided by this section and pursuant to rules adopted by the State Board of Education, the superintendent may waive a reporting date or specify an alternative date to provide the audit report or information if a human-created disaster or a natural disaster affects the ability of a school district or an education service district to provide the audit report or information by a specified date. [1965 c.199 §1; 1977 c.840 §9; 1989 c.491 §7; 1991 c.780 §18; 2005 c.209 §6; 2007 c.846 §15; 2009 c.184 §§6,7; 2011 c.316 §§3,4; 2013 c.327 §1; 2013 c.735 §§12,13,14; 2021 c.355 §8]

 

      327.140 [Amended by 1955 c.314 §1; 1957 c.612 §17; repealed by 1963 c.570 §33]

 

      327.141 Financial or performance audit initiated by department; contracts for audit; costs. (1)(a) Based on factors identified by the State Board of Education by rule, the Department of Education may initiate a financial audit or a performance audit of a school district or an education service district.

      (b) Prior to initiating an audit, the Department of Education shall:

      (A) Give notice to the school district or the education service district of the department’s intent to initiate the audit; and

      (B) Provide the school district or the education service district with the opportunity to provide to the department any information related to the subject of the audit.

      (c) Following the review of any information provided under paragraph (b) of this subsection, the department may:

      (A) Decline to proceed with the audit; or

      (B) Cause the audit to be conducted.

      (2) For the purpose of causing an audit to be conducted as authorized by this section, the department may enter into a contract with:

      (a) The Secretary of State in accordance with ORS 297.210; or

      (b) If the Secretary of State is unable or unwilling to conduct the audit, a private entity.

      (3)(a) If the Secretary of State conducts the audit, the school district or education service district may be charged for a portion of the costs incurred for the audit as provided by ORS 297.210.

      (b) If a private entity conducts an audit, the Department of Education may charge the school district or education service district for a portion of the costs incurred for the audit.

      (4) A copy of an audit conducted as provided by this section must be forwarded to the Department of Education and to any other entity identified by the department in accordance with rules adopted by the State Board of Education. [2011 c.647 §1]

 

      Note: 327.141 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.145 [Amended by 1957 c.626 §4; repealed by 1963 c.570 §33]

 

      327.147 Increased allocation when union high school district becomes common school district. (1) When a union high school district becomes a common school district, as described in ORS 335.505, the common school district shall be entitled to an increased allocation, based on the total average daily membership, as defined in ORS 327.006, of the new common school district as follows:

      (a) An additional 15 percent in the first year of operation as a common school district;

      (b) An additional 10 percent in the second year of operation as a common school district; and

      (c) An additional five percent in the third year of operation as a common school district.

      (2) The amounts authorized by this section shall be computed based on the computation of the affected district’s allocation of moneys from the State School Fund but shall be payable from funds specifically appropriated for the purposes of this section. [1989 c.969 §1]

 

      327.150 [Amended by 1955 c.314 §2; repealed by 1963 c.570 §33]

 

      327.152 Increased allocation when certain merger occurs. (1) If a school district responsible for education in kindergarten through grade 12, that does not operate a high school, merges with a district providing education in kindergarten through grade 12, the district providing the education shall be entitled to an increased allocation, based on the average daily membership of the former district, as follows:

      (a) An additional 15 percent in the first year of operation of the merged district;

      (b) An additional 10 percent in the second year of operation of the merged district; and

      (c) An additional five percent in the third year of operation of the merged district.

      (2) The amounts authorized by this section shall be computed based on the computation of the affected district’s allocation of moneys from the State School Fund but shall be payable from funds specifically appropriated for the purposes of this section. [1989 c.969 §2]

 

      327.155 [Repealed by 1955 c.314 §3]

 

      327.157 Minimum apportionment to school districts affected or not affected by ORS 327.147 and 327.152. (1) Subject to the limits of funds appropriated for the implementation of ORS 327.147 and 327.152, a school district shall not be apportioned less for its average daily membership for any year subsequent to the 1989-1990 fiscal year than was estimated for the 1989-1990 fiscal year.

      (2) If the funds appropriated for the implementation of ORS 327.147 and 327.152 are insufficient to meet the obligations incurred under ORS 327.147 and 327.152, each district eligible to receive funds under ORS 327.147 or 327.152 shall receive its pro rata share of the funds available for the implementation of ORS 327.147 and 327.152. [1989 c.969 §4]

 

      327.160 [Repealed by 1963 c.570 §33]

 

STUDENT INVESTMENT ACCOUNT

 

      327.175 Student Investment Account. (1) The Student Investment Account is established within the Fund for Student Success.

      (2) The Student Investment Account shall consist of:

      (a) Moneys transferred to the account from the Fund for Student Success;

      (b) Moneys appropriated or otherwise transferred to the account by the Legislative Assembly;

      (c) Amounts donated to the account; and

      (d) Other amounts deposited into the account from any source.

      (3) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts, grants, donations and other moneys from public and private sources for the Student Investment Account. Moneys received as provided in this subsection shall be deposited into the Student Investment Account.

      (4) Moneys in the Student Investment Account are continuously appropriated to the Department of Education for the purposes of distributing grants under ORS 327.195. [2019 c.122 §8]

 

      327.180 Allowed uses of grants from Student Investment Account. (1) In addition to those moneys distributed through the State School Fund, the Department of Education shall award grants from the Student Investment Account. Grants shall be distributed as provided under ORS 327.195.

      (2) The purposes of grants distributed under ORS 327.195 shall be to:

      (a) Meet students’ mental or behavioral health needs; and

      (b) Increase academic achievement for students, including reducing academic disparities for:

      (A) Economically disadvantaged students, as determined based on rules adopted by the State Board of Education;

      (B) Students from racial or ethnic groups that have historically experienced academic disparities, as determined under rules adopted by the State Board of Education;

      (C) Students with disabilities;

      (D) Students who are English language learners;

      (E) Students who are foster children, as defined in ORS 30.297;

      (F) Students who are homeless, as determined under rules adopted by the State Board of Education; and

      (G) Any other student groups that have historically experienced academic disparities, as determined by the State Board of Education by rule.

      (3) Grant moneys received under ORS 327.195 may be used by a grant recipient only for:

      (a) Increasing instructional time, which may include:

      (A) More hours or days of instructional time;

      (B) Summer programs;

      (C) Before-school or after-school programs; or

      (D) Technological investments that minimize class time used for assessments administered to students.

      (b) Addressing students’ health or safety needs, which may include:

      (A) Social-emotional learning and development;

      (B) Student mental and behavioral health;

      (C) Improvements to teaching and learning practices or organizational structures that lead to better interpersonal relationships at the school;

      (D) Student health and wellness;

      (E) Trauma-informed practices;

      (F) School health professionals and assistants; or

      (G) Facility improvements directly related to improving student health or safety.

      (c) Reducing class sizes, which may include increasing the use of instructional assistants, by using evidence-based criteria to ensure appropriate student-teacher ratios or staff caseloads.

      (d) Expanding availability of and student participation in well-rounded learning experiences, which may include:

      (A) Developmentally appropriate and culturally responsive early literacy practices and programs in prekindergarten through third grade;

      (B) Culturally responsive practices and programs in grades six through eight, including learning, counseling and student support that is connected to colleges and careers;

      (C) Broadened curricular options at all grade levels, including access to:

      (i) Art, music and physical education classes;

      (ii) Science, technology, engineering and mathematics education;

      (iii) Career and technical education, including career and technical student organization programs and payment of student fees, costs and instructors of those programs;

      (iv) Electives that are engaging to students;

      (v) Accelerated college credit programs, including dual credit programs, International Baccalaureate programs and advanced placement programs;

      (vi) Dropout prevention programs and transition supports;

      (vii) Life skills classes; or

      (viii) Talented and gifted programs; or

      (D) Access to licensed educators with a library media endorsement. [2019 c.122 §9; 2021 c.227 §1; 2021 c.350 §1]

 

      327.185 Application requirements to receive grants from Student Investment Account; eligible applicants; strategic planning. (1) As used in this section, “eligible applicant” means any of the following entities:

      (a) Common school districts and union high school districts.

      (b) The Youth Corrections Education Program or the Juvenile Detention Education Program.

      (c) Public charter schools that are not virtual public charter schools, as defined in ORS 338.005, and that have a student population of which:

      (A) At least 35 percent of the student population is composed of students from the following student groups:

      (i) Economically disadvantaged, as described in ORS 327.180 (2)(b)(A);

      (ii) Racial or ethnic groups that have historically experienced academic disparities, as described in ORS 327.180 (2)(b)(B); or

      (iii) Students with disabilities, as described in ORS 327.180 (2)(b)(C); and

      (B) The percentage of the students from student groups identified under subparagraph (A) of this paragraph is greater than or equal to:

      (i) The percentage of all students in the school district who are economically disadvantaged, if eligibility is determined based on the percentage of students who are economically disadvantaged;

      (ii) The percentage of all students in the school district who are from racial or ethnic groups that have historically experienced academic disparities, if eligibility is determined based on the percentage of students who are from those racial or ethnic groups; or

      (iii) The percentage of all students in the school district who are disabled, if eligibility is determined based on the percentage of students who are disabled.

      (2)(a) Eligible applicants may apply for a grant from the Student Investment Account to receive a distribution under ORS 327.190.

      (b) Notwithstanding ORS 338.155 (9), a public charter school that is not an eligible applicant may not apply for a grant under this section.

      (3) Prior to preparing a grant application, an eligible applicant must:

      (a) If the eligible applicant is a school district, determine whether the school district will allow public charter schools sponsored by, or located within, the school district to participate in the grant application and the grant agreement.

      (b) If the eligible applicant is a public charter school, determine whether the public charter school intends to apply for a grant and provide notice of that intent to the school district in which the public charter school is located and to the Department of Education.

      (4)(a) If an eligible applicant is a school district and decides to include public charter schools in the grant application and grant agreement, the school district must provide all public charter schools sponsored by, or located within, the school district the opportunity to participate in the grant application and grant agreement.

      (b)(A) A public charter school is not required to participate in the grant application and grant agreement of a school district.

      (B) If a public charter school does not participate in a grant application and grant agreement under this subsection:

      (i) The ADMw of the public charter school may not be used in the calculation of the school district ADMw for grants distributed under ORS 327.195; and

      (ii) The public charter school is not entitled to any grant moneys distributed under ORS 327.195.

      (C) If a public charter school participates in a grant application and grant agreement under this subsection:

      (i) The public charter school and school district shall enter into an agreement for the distribution of moneys or the provision of services, including any accountability measures required of the public charter school by the school district;

      (ii) The ADMw of the public charter school shall be used in the calculation of the school district ADMw for grants distributed under ORS 327.195; and

      (iii) The public charter school is entitled to any grant moneys or services provided for in the agreement entered into under this subparagraph.

      (5)(a) For the purpose of preparing a grant application, an eligible applicant must determine:

      (A) Which of the allowed uses identified in ORS 327.180 (3) the eligible applicant will fund with grant moneys; and

      (B) Which of the eligible uses identified under subparagraph (A) of this paragraph the eligible applicant will designate to meeting student mental and behavioral health needs.

      (b) An eligible applicant shall make the determinations required under paragraph (a) of this subsection by:

      (A) Engaging in strategic planning; and

      (B) Considering the recommendations of the Quality Education Commission established under ORS 327.500 and recommendations from the advisory groups formed by the Department of Education for the purposes of the statewide education plans developed and implemented by the department.

      (6)(a) The strategic planning required under subsection (5) of this section must include:

      (A) A completed needs assessment, as described in ORS 329.095;

      (B) An analysis of the potential academic impact, both for the students of the eligible applicant and for student groups identified in ORS 327.180 (2)(b), from the allowed uses that would be funded by grant moneys; and

      (C) The creation of budgets for the allowed uses that would be funded by grant moneys.

      (b) The strategic planning required under subsection (5) of this section must take into consideration:

      (A) Input from the community of the eligible applicant, including school employees, students from student groups identified in ORS 327.180 (2)(b) and parents of those students; and

      (B) Data collected by the eligible applicant to enable the eligible applicant to make equity-based decisions.

      (7) Based on the strategic planning described in subsection (6) of this section, the eligible applicant shall develop a four-year plan for the use of grant moneys. The plan must be updated every two years and must:

      (a) Identify which allowed uses identified in ORS 327.180 (3) will be funded with grant moneys and which of those uses will be designated to meet student mental and behavioral health needs.

      (b) Describe how the allowed uses identified under paragraph (a) of this subsection will be used to:

      (A) Meet students’ mental and behavioral health needs;

      (B) Increase academic achievement for students of the eligible applicant; and

      (C) Reduce academic disparities for student groups identified in ORS 327.180 (2)(b) who are served by the eligible applicant, and identify which of those student groups will benefit from the allowed uses that are being funded with grant moneys.

      (c) Include the budgets for the allowed uses to be funded with grant moneys.

      (d) Be approved by the governing body of the eligible applicant at an open meeting, following:

      (A) Provision of the plan at the main office of the eligible applicant and on the eligible applicant’s website;

      (B) Oral presentation of the plan by an administrator of the eligible applicant to the governing body of the eligible applicant; and

      (C) Opportunity for the public to comment on the plan at an open meeting.

      (e) Be a part of the local district continuous improvement plan described in ORS 329.095, if the eligible applicant is a school district.

      (8) To apply for a grant, an eligible applicant must submit an application every two years in a format and according to timelines prescribed by the Department of Education. The application must include:

      (a) A completed needs assessment, as described in ORS 329.095;

      (b) The plan developed under subsection (7) of this section; and

      (c) Budget estimates for each of the allowed uses identified in the plan developed under subsection (7) of this section that will be funded by grant moneys. [2019 c.122 §10; 2021 c.350 §4; 2023 c.495 §1]

 

      327.190 Approval of applications to receive grants from the Student Investment Account; performance growth targets. (1) As used in this section:

      (a) “Disaggregated” means separated based on the student groups identified in ORS 327.180 (2)(b).

      (b) “Five-year completion rate” means the percentage of students who received a high school diploma, a modified diploma or an extended diploma or who received a certificate for passing an approved high school equivalency test such as the General Educational Development test (GED) within five years of the student beginning the ninth grade.

      (c) “High school diploma” means a diploma that is awarded to a student upon satisfaction of the requirements prescribed by ORS 329.451 (2).

      (d) “Ninth-grade on-track rates” means the percentage of students who, at the end of the summer following the year the students began ninth grade, completed one quarter of the credits required for high school graduation.

      (e) “On-time graduation rate” means the percentage of students who received a high school diploma or a modified diploma within four years of the students beginning the ninth grade.

      (f) “Regular attendance rates” means the percentage of students who are absent, as determined by Department of Education policy, for less than 10 percent of the school days for which the students are enrolled.

      (g) “Third-grade reading proficiency rate” means the percentage of students in the third grade who are determined to be proficient or above in English language arts, as determined under rules adopted by the State Board of Education.

      (2) The Department of Education shall review all applications for grants from the Student Investment Account that comply with the requirements prescribed by ORS 327.185.

      (3) If an application complies with the requirements of ORS 327.185, the department shall collaborate with the grant recipient to develop applicable longitudinal performance growth targets. The longitudinal performance growth targets must:

      (a) Be based on data available for longitudinal analysis;

      (b) Be developed based on guidance established by the department; and

      (c) Use the following applicable metrics:

      (A) On-time graduation rates and five-year completion rates, including:

      (i) The overall on-time graduation rate and five-year completion rate.

      (ii) Gaps in disaggregated on-time graduation rates and five-year completion rates.

      (B) Ninth-grade on-track rates, including:

      (i) The overall ninth-grade on-track rate.

      (ii) Gaps in disaggregated ninth-grade on-track rates.

      (C) Third-grade reading proficiency rates, including:

      (i) The overall third-grade reading proficiency rate.

      (ii) Gaps in disaggregated third-grade reading proficiency rates.

      (D) Regular attendance rates, including:

      (i) The overall regular attendance rate.

      (ii) Gaps in disaggregated regular attendance rates.

      (4) In addition to the metrics identified in subsection (3) of this section, the following may be used to develop applicable performance growth targets:

      (a) Local metrics; and

      (b) Targets related to student mental and behavioral health needs, as established by the State Board of Education by rule.

      (5) When developing performance growth targets, the department and grant recipient shall:

      (a) Review disaggregated student data;

      (b) Apply a process adopted by the department for the purpose of strategically developing equitable policies and programs; and

      (c) Identify which student groups identified in ORS 327.180 (2)(b) are most at risk of not meeting performance growth targets.

      (6)(a) After developing performance growth targets, the department and grant recipient shall enter into a grant agreement. The grant agreement must include applicable performance growth targets for measuring the academic growth of the students of the grant recipient.

      (b) A grant agreement is not valid until approved by the governing body of the grant recipient at an open meeting following:

      (A) Provision of the plan at the main office of the grant recipient and on the grant recipient’s website;

      (B) Oral presentation of the plan by an administrator of the grant recipient to the governing body of the grant recipient; and

      (C) Opportunity for the public to comment on the plan at an open meeting.

      (7) Any agreements between a public charter school and a grant recipient that is a school district shall become part of the grant agreement. [2019 c.122 §12; 2021 c.350 §2]

 

      327.195 Calculations of grant amounts; distributions of grants; rules. (1)(a) Except as provided by paragraph (d) of this subsection, the amount of a grant awarded from the Student Investment Account = the grant recipient’s ADMw ´ (the total amount available for distribution as grants in each biennium ¸ the total ADMw of all grant recipients).

      (b) For purposes of this subsection and except as provided by paragraph (c) of this subsection, ADMw equals:

      (A) For school districts, the ADMw as calculated under ORS 327.013, except that the additional amount allowed for students who are in poverty families, as determined under ORS 327.013 (1)(c)(A)(v)(I), shall be 0.5.

      (B) For an educational program under the Youth Corrections Education Program or the Juvenile Detention Education Program, as provided in ORS 327.026.

      (c) When calculating ADMw for a school district, the Department of Education shall remove from the calculation any amounts that are attributable to:

      (A) A virtual public charter school, as defined in ORS 338.005;

      (B) A public charter school that provided notice of the public charter school’s intent to apply for a grant as an eligible applicant; and

      (C) A public charter school sponsored by, or located within, the school district that did not participate in the grant application or grant agreement.

      (d) The amount of a grant distributed under this section may be adjusted by the department to ensure that:

      (A) A grant recipient does not receive any moneys for uses that are not allowed uses under ORS 327.180 (3).

      (B) A school district with an ADMw of 50 or less receives a minimum grant amount.

      (C) Each site of the Youth Corrections Education Program and the Juvenile Detention Education Program receives a grant amount that is no less than the minimum grant amount provided to a school district under subparagraph (B) of this paragraph.

      (2) The State Board of Education shall adopt any rules necessary for the distribution of grants under this section, including establishing:

      (a) The minimum grant amounts under subsection (1)(d) of this section; and

      (b) Any percentages and timelines for installment payments and adjustments of those installment payments.

      (3) A grant recipient shall deposit the grant moneys the grant recipient receives under this section into a separate account and shall apply amounts in that account as provided by the grant agreement. [2019 c.122 §13; 2021 c.350 §5; 2023 c.495 §2]

 

      327.200 [1957 c.612 §16; 1959 c.388 §14; 1965 c.100 §23; renumbered 327.133]

 

      327.201 Financial audits; determinations of moneys not spent in accordance with grant agreement or failure to meet performance growth targets. (1)(a) Each year, each recipient of a grant from the Student Investment Account shall:

      (A) Conduct a financial audit of the use of grant moneys that is prepared in accordance with the Municipal Audit Law; and

      (B) Review the grant recipient’s progress toward meeting the performance growth targets in the grant agreement.

      (b) Results of the financial audit and progress review must be:

      (A) Made available at the main office of the grant recipient and on the grant recipient’s website.

      (B) Presented to the governing body of the grant recipient at an open meeting, following:

      (i) Oral presentation of the results by an administrator of the grant recipient to the governing body of the grant recipient; and

      (ii) Opportunity for the public to comment on the results at an open meeting.

      (C) Forwarded to the Department of Education.

      (2)(a) Based on information received under subsection (1) of this section, the department shall determine each year whether grant moneys received by a grant recipient were used as provided by the grant agreement.

      (b) If a grant recipient did not use grant moneys as provided by the grant agreement, the department shall:

      (A) Collaborate with the grant recipient to identify and implement specific interventions;

      (B) Provide technical assistance to the grant recipient as described in ORS 327.208; or

      (C) Deduct amounts from future grant distributions.

      (c) If amounts are to be deducted from future grant distributions under paragraph (b)(C) of this subsection, the grant recipient may appeal to the State Board of Education for review as provided by the board by rule.

      (d) If a grant recipient fails to commit to spending all available grant moneys, the department may deduct amounts not committed from future grant distributions.

      (3)(a) The department shall determine each biennium if a grant recipient does not meet performance growth targets identified in the grant agreement.

      (b) If a grant recipient does not meet the performance growth targets:

      (A) The grant recipient may submit an explanation for the reasons why the performance growth targets were not met; and

      (B) The department may:

      (i) Take into consideration the explanation submitted by the grant recipient;

      (ii) Require the grant recipient to enter into a coaching program described in ORS 327.214; or

      (iii) Direct the expenditure of grant moneys.

      (4) Each grant recipient must conduct a performance review every four years, as required by standards adopted by the board by rule.

      (5)(a) Based on a review of the information received under subsection (1) of this section, the department may require a grant recipient to conduct a financial audit on a specific funding area or multiple funding areas.

      (b) The department may establish a procedure for conducting performance audits on a random basis or based on just cause as allowed under rules adopted by the board. [2019 c.122 §15]

 

      327.202 [1989 c.971 §1; repealed by 1991 c.459 §448]

 

      327.205 [Repealed by 1957 c.626 §1]

 

      327.207 [1989 c.971 §2; repealed by 1991 c.459 §448]

 

      327.208 Technical assistance provided by the Department of Education. (1) The Department of Education shall make available technical assistance to eligible applicants, as defined in ORS 327.185, and to recipients of a grant from the Student Investment Account. The technical assistance shall include the provision of assistance with:

      (a) Strategic planning for the use of grant moneys;

      (b) Developing an application for a grant from the Student Investment Account;

      (c) Identifying and implementing best practices for meeting performance growth targets; and

      (d) Identifying and implementing promising practices related to a grant agreement.

      (2) When providing technical assistance, the department shall:

      (a) Apply a process adopted by the department to strategically develop equitable policies and programs; and

      (b) Ensure that technical assistance is based on the eligible applicant’s or grant recipient’s specific needs and demographics.

      (3) For the purpose of providing technical assistance under this section, the department may enter into contracts with entities the department determines are qualified to provide the technical assistance. [2019 c.122 §16]

 

      327.210 [Repealed by 1957 c.626 §1]

 

      327.212 [1989 c.971 §3; repealed by 1991 c.459 §448]

 

      327.214 Coaching program for grant recipients that do not meet performance growth targets. (1) The Department of Education shall establish a coaching program for recipients of a grant from the Student Investment Account that do not meet the performance growth targets specified in their grant agreements. A public charter school may participate in the coaching program only if the public charter school received a grant directly from the department and did not meet the performance growth targets specified in the public charter school’s grant agreement.

      (2) If required by the department under ORS 327.201 to participate in a coaching program, a grant recipient must participate in the coaching program. Participation in the coaching program must be for at least one year, unless the department allows for a shorter period of time. Under the program, the department shall advise and counsel grant recipients on how to meet performance growth targets and shall assist grant recipients with ongoing professional development and peer collaboration.

      (3) After a grant recipient has completed the coaching program, the department shall make available to the grant recipient ongoing technical assistance as described in ORS 327.208.

      (4) For the purpose of providing the coaching program under this section, the department may enter into contracts with entities the department determines are qualified to provide the coaching. [2019 c.122 §17]

 

      327.215 [Repealed by 1957 c.626 §1]

 

      327.217 [1989 c.971 §4; repealed by 1991 c.459 §448]

 

      327.220 [Repealed by 1957 c.626 §1]

 

      327.222 Intensive program for high needs school districts; student success teams; rules. (1) The Department of Education shall establish an intensive program for school districts with the highest needs in this state.

      (2)(a) The department shall identify and select school districts to participate in the intensive program. The department may not select a public charter school under this section.

      (b) A school district that agrees to participate in the intensive program must participate in the program for at least four years.

      (3) A school district that agrees to participate in the intensive program shall be eligible for additional funding from the Statewide Education Initiatives Account. The additional funding shall be based on rules adopted by the State Board of Education and shall be calculated based on the ADMw of the school district, as calculated under ORS 327.195.

      (4) A school district that agrees to participate in the intensive program shall:

      (a) Commit to regular student success plan meetings to monitor practices;

      (b) Use data to track student progress;

      (c) Ensure school employees receive appropriate professional development and training;

      (d) Create safe and inclusive learning environments;

      (e) Improve school and school district practices and structures to support teaching and learning; and

      (f) Improve the skills of the members of the school board.

      (5) For the purpose of assisting school districts participating in the intensive program, the department shall establish student success teams. Student success teams shall be composed of personnel with expertise in school and school district improvement strategies, including the use of differentiated instruction and inclusionary practices. A student success team is not a government body and is not subject to any statute or rule applicable to a public body.

      (6)(a) Under the intensive program, student success teams shall:

      (A) Advise and counsel school districts on how to improve performance outcomes; and

      (B) Develop recommendations for meeting performance growth targets.

      (b) School district boards and superintendents of school districts participating in an intensive program must:

      (A) Accept all recommendations of the student success teams related to the use of Student Investment Account grant moneys and additional funding received under this section. A school district that does not accept the recommendations made under this subparagraph is not eligible for additional funding under this section.

      (B) Consider, and may accept, all recommendations of the student success teams not described in subparagraph (A) of this paragraph.

      (c) A school district that receives recommendations under this subsection must issue a report that:

      (A) Describes the recommendations;

      (B) Identifies the recommendations that will be implemented and the timelines for implementing the recommendations; and

      (C) Identifies the recommendations that will not be implemented and an explanation for why the recommendations will not be implemented.

      (d) The report required under paragraph (c) of this subsection must be:

      (A) Made available at the school district’s main office and on the school district’s website; and

      (B) Distributed to the school district community, including employees of the school district and families of the students of the school district. [2019 c.122 §18; 2023 c.570 §21]

 

      327.224 Student Success Teams Account. (1) The Student Success Teams Account is established in the State Treasury, separate and distinct from the General Fund.

      (2) The Student Success Teams Account shall consist of:

      (a) Moneys transferred to the account from the Statewide Education Initiatives Account;

      (b) Moneys appropriated or otherwise transferred to the Student Success Teams Account by the Legislative Assembly; and

      (c) Other amounts deposited into the account from any source.

      (3) Moneys in the Student Success Teams Account are continuously appropriated to the Department of Education for the purpose of funding the intensive program for school districts with the highest needs established under ORS 327.222, including funding any costs incurred for student success teams under that program. [2021 c.350 §12]

 

      327.225 [Repealed by 1957 c.626 §1]

 

      327.230 [Repealed by 1957 c.626 §1]

 

      327.235 Reports to the Legislative Assembly. The Department of Education shall make a report to the committees of the Legislative Assembly related to education no later than February 1 of each year regarding the implementation of ORS 327.175 to 327.235. The report must include an annual performance review of each eligible applicant, as defined in ORS 327.185. The report must:

      (1) Identify whether the eligible applicant received a grant under ORS 327.175 to 327.235.

      (2) For grant recipients, include a comparison of the grant recipient’s progress toward meeting performance growth targets compared with the actual performance growth targets established by the department for the following:

      (a) On-time graduation rates and five-year completion rates, including the overall rate and disaggregated student group rates;

      (b) Ninth-grade on-track rates, including the overall rate and disaggregated student group rates;

      (c) Third-grade reading proficiency rates, including the overall rate and disaggregated student group rates;

      (d) Regular attendance rates, including the overall rate and disaggregated student group rates; and

      (e) Any optional local metrics or any targets related to student mental and behavioral health needs established by the State Board of Education. [2019 c.122 §19; 2021 c.350 §3]

 

STATEWIDE EDUCATION INITIATIVES ACCOUNT

 

      327.250 Statewide Education Initiatives Account. (1) The Statewide Education Initiatives Account is established within the Fund for Student Success.

      (2) The Statewide Education Initiatives Account shall consist of:

      (a) Moneys transferred to the account from the Fund for Student Success;

      (b) Moneys appropriated or otherwise transferred to the account by the Legislative Assembly;

      (c) Amounts donated to the account; and

      (d) Other amounts deposited into the account from any source.

      (3) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts, grants, donations and other moneys from public and private sources for the Statewide Education Initiatives Account. Moneys received as provided in this subsection shall be deposited into the account.

      (4) Moneys in the Statewide Education Initiatives Account are continuously appropriated to the Department of Education for use as described in ORS 327.254. [2019 c.122 §24]

 

      327.254 Statewide Education Initiatives Account uses; rules. (1) The Department of Education shall use moneys in the Statewide Education Initiatives Account to provide funding for statewide education initiatives, including:

      (a) Funding the High School Graduation and College and Career Readiness Act at the levels prescribed by ORS 327.856;

      (b) Expanding school breakfast and lunch programs;

      (c) Operating youth reengagement programs or providing youth reengagement services;

      (d) Establishing and maintaining the Statewide School Safety and Prevention System under ORS 339.341;

      (e) Developing and providing statewide equity initiatives, including any statewide education plan developed and implemented by the department;

      (f) Providing summer learning programs at schools that are considered high poverty under Title I of the federal Elementary and Secondary Education Act of 1965;

      (g) Funding early warning systems to assist students in graduating from high school, as described in ORS 327.367;

      (h) Developing and implementing professional development programs and training programs, including programs that increase educator diversity and retain diverse educators;

      (i) Planning for increased transparency and accountability in the public education system of this state;

      (j) Providing additional funding to school districts participating in the intensive program under ORS 327.222;

      (k) Providing technical assistance, including costs incurred for:

      (A) The coaching program described in ORS 327.214; and

      (B) The intensive program described in ORS 327.222, including costs for student success teams;

      (L) Funding public charter schools, as described in ORS 327.362;

      (m) Funding the Early Literacy Success School Grant program, as provided by ORS 327.833;

      (n) Funding the Early Literacy Success Community Grant program, as established by ORS 327.843;

      (o) Funding any additional amounts for approved recovery schools, as provided by rules of the State Board of Education adopted under ORS 327.029;

      (p) Funding education service districts, as described in subsection (2) of this section; and

      (q) Funding costs incurred by the department in implementing this section and ORS 327.175 to 327.235 and 327.274.

      (2)(a) The amount of a distribution to an education service district under this section shall be made as provided by paragraph (b) of this subsection after calculating the following for each education service district:

      (A) One percent of the total amount available for distribution to education service districts in each biennium.

      (B) The education service district’s ADMw ´ (the total amount available for distribution to education service districts in each biennium ¸ the total ADMw of all education service districts that receive a distribution).

      (b) The amount of the distribution to an education service district shall be the greater of the amounts calculated under paragraph (a) of this subsection, except that, for distributions made as provided by paragraph (a)(B) of this subsection, the total amount available for distribution to education service districts shall be the amount remaining after any distributions required under paragraph (a)(A) of this subsection have been made.

      (c) For purposes of this subsection, ADMw equals the ADMw as calculated under ORS 327.013, except that the additional amount allowed for students who are in poverty families, as determined under ORS 327.013 (1)(c)(A)(v)(I), shall be 0.5.

      (d) An education service district shall use moneys received under this section as provided by a plan developed by the school districts located within the education service district. A school district that declines to participate in the development of the plan or that has withdrawn from an education service district as provided by ORS 334.015 is not entitled to any moneys distributed to the education service district under this subsection.

      (e) A plan developed under this subsection must:

      (A) Align with and support the meeting of performance growth targets established for recipients of moneys under ORS 327.195 that are located within the education service district;

      (B) Include the provision, to recipients of moneys under ORS 327.195 that are located within the education service district, of technical assistance in developing, implementing and reviewing a plan for receiving a grant from the Student Investment Account;

      (C) Provide for coordination with the department in administering and providing technical assistance to recipients of moneys under ORS 327.195 that are located within the education service district, including coordinating any coaching programs established under ORS 327.214; and

      (D) Be adopted and amended as provided for local service plans under ORS 334.175 and approved by the department.

      (f) For the purposes of paragraph (e) of this subsection, recipients of moneys under ORS 327.195 that are located within the education service district include, as applicable:

      (A) Common school districts and union high school districts;

      (B) Any charter school that is an eligible applicant, as defined in ORS 327.185; and

      (C) The Youth Corrections Education Program or the Juvenile Detention Education Program.

      (g) Each education service district must submit an annual report to the department that:

      (A) Describes how the education service district spent moneys received under this subsection; and

      (B) Includes an evaluation of the education service district’s compliance with the plan from the superintendent of each school district that participated in the development of the plan.

      (3) The State Board of Education shall adopt rules necessary for the distribution of moneys under this section. [2019 c.122 §25; 2021 c.97 §23; 2021 c.290 §11; 2021 c.518 §17; 2021 c.574 §1; 2023 c.513 §10; 2023 c.530 §5; 2023 c.534 §18; 2023 c.570 §17]

 

      327.255 [Repealed by 1957 c.626 §1]

 

      327.260 [Repealed by 1957 c.626 §1]

 

      327.265 [Repealed by 1957 c.626 §1]

 

EARLY LEARNING ACCOUNT

 

      327.269 Early Learning Account. (1) The Early Learning Account is established within the Fund for Student Success.

      (2) The Early Learning Account shall consist of:

      (a) Moneys transferred from the Fund for Student Success under ORS 327.001;

      (b) Moneys appropriated or otherwise transferred to the account by the Legislative Assembly;

      (c) Amounts donated to the account; and

      (d) Other amounts deposited into the account from any source.

      (3) The Department of Education or the Department of Early Learning and Care, on behalf of the State of Oregon, may solicit and accept gifts, grants, donations and other moneys from public and private sources for the Early Learning Account. Moneys received as provided in this subsection shall be deposited into the Early Learning Account.

      (4) Moneys in the Early Learning Account are continuously appropriated to the Department of Education for:

      (a) Early childhood special education or early intervention services, as provided by ORS 343.475; and

      (b) Transfer to the Department of Early Learning and Care for early learning programs, as described in ORS 327.274. [2019 c.122 §51; 2021 c.631 §20; 2023 c.26 §1; 2023 c.602 §49]

 

      327.270 [Repealed by 1957 c.626 §1]

 

      327.274 Early Learning Account uses; rules. (1) The Department of Education shall use moneys in the Early Learning Account:

      (a) To provide funding for early childhood special education or early intervention services, as provided by ORS 343.475; and

      (b) For transfer to the Department of Early Learning and Care to provide funding for programs described in this section.

      (2) The Department of Early Learning and Care shall use moneys transferred from the Early Learning Account to provide funding for early learning programs in a manner consistent with a statewide early learning system plan overseen by the Early Learning Council. Early learning programs for which the department may use moneys transferred from the Early Learning Account include:

      (a) The Birth Through Five Literacy Plan established by ORS 327.839;

      (b) Relief nurseries;

      (c) Programs funded by the Early Childhood Equity Fund;

      (d) The Oregon Prenatal to Kindergarten Program and other public early learning and preschool programs established under ORS 329.172 to 329.200, by increasing:

      (A) The total number of spaces for children served by the programs; or

      (B) Existing spaces for full-day programs from half-day programs; and

      (e) Professional development for early childhood educators.

      (3) In addition to the uses identified in subsection (2) of this section, the Department of Early Learning and Care may use moneys transferred from the Early Learning Account for:

      (a) Administrative, operational or program needs, including staffing, of the Department of Early Learning and Care for the purpose of implementing this section.

      (b) Costs incurred by the Department of Early Learning and Care in conducting the biennial evaluation of programs that receive grants under ORS 417.782.

      (4) The Early Learning Council shall adopt rules necessary for the distribution of moneys under this section. [2019 c.122 §52; 2021 c.631 §21; 2022 c.27 §§29,30; 2023 c.26 §2; 2023 c.534 §§19,20; 2023 c.547 §§5,6; 2023 c.602 §50]

 

      327.275 [Repealed by 1957 c.626 §1]

 

      327.280 [Repealed by 1957 c.626 §1]

 

      327.285 [Repealed by 1957 c.626 §1]

 

GRANTS TO DISTRICTS AND PROGRAMS

 

(School Improvement and Student Achievement Grants)

 

      327.290 Legislative findings relating to student achievement. The Legislative Assembly finds that:

      (1) The state has an interest in ensuring that public resources for primary and secondary schools are used to achieve the outcomes established under the Oregon Educational Act for the 21st Century in ORS chapter 329.

      (2) To achieve that purpose, the School Improvement Fund is established so the state may support activities directly related to increases in student achievement while still allowing school districts and education service districts flexibility in determining the specific activities necessary to support students.

      (3) It is the intent of the state in establishing the School Improvement Fund to link these activities to the recommendations of the Quality Education Commission established under Executive Order 99-16 and the recommendations of the Quality Education Commission established under ORS 327.500. [2001 c.794 §1; 2001 c.794 §1a; 2007 c.578 §3]

 

      327.294 School Improvement Fund. (1) There is established the School Improvement Fund, separate and distinct from the General Fund. Interest earned by the School Improvement Fund shall be credited to the fund.

      (2) The moneys in the fund are continuously appropriated to the Department of Education for purposes of the grant program created by ORS 327.297.

      (3) Each fiscal year, the department shall distribute:

      (a) 95.25 percent of the moneys in the fund as grants to school districts, the Youth Corrections Education Program and the Juvenile Detention Education Program; and

      (b) 4.75 percent of the moneys in the fund as grants to education service districts. [2001 c.794 §2; 2007 c.578 §2]

 

      327.297 Grants for activities related to student achievement; rules. (1) In addition to those moneys distributed through the State School Fund, the Department of Education shall award grants 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 prekindergarten 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.

      (2)(a) Each school district, each education service district, the Youth Corrections Education Program and the Juvenile Detention Education Program may apply to the Department of Education for a grant.

      (b) The department shall review and approve applications based on criteria established by the State Board of Education. In establishing the criteria, the State Board of Education shall consider the recommendations of the Quality Education Commission established under ORS 327.500.

      (c) The applications shall include the activities to be funded and the goals of the district or program for increases in student performance. The applications shall become part of the local district continuous improvement plan described in ORS 329.095.

      (3)(a) Notwithstanding ORS 338.155 (9), the Department of Education may not award a grant under this section directly to a public charter school.

      (b) A school district that receives a grant under this section may transfer a portion of the grant to a public charter school based on the charter of the school or any other agreement between the school district and the public charter school.

      (c) A public charter school that receives grant funds under this subsection shall use those funds for the activities specified in subsection (1) of this section.

      (4)(a) The amount of each grant for a program or school district = the program’s or school district’s ADMw ´ (the total amount available for distribution to programs and school districts as grants in each fiscal year ¸ the total ADMw of all programs and school districts that receive a grant).

      (b) The amount of each grant for an education service district = the education service district’s ADMw ´ (the total amount available for distribution to education service districts as grants in each fiscal year ¸ the total ADMw of all education service districts that receive a grant).

      (c) As used in this subsection, “ADMw” means:

      (A) For a school district, the extended weighted average daily membership as calculated under ORS 327.013, 338.155 (1) and 338.165 (2);

      (B) For the Youth Corrections Education Program, the extended weighted average daily membership as calculated under ORS 327.026;

      (C) For the Juvenile Detention Education Program, the extended weighted average daily membership as calculated under ORS 327.026; and

      (D) For an education service district, the sum of the ADMw of the school districts located within the territory of the education service district.

      (5) Each district or program shall deposit the grant amounts it receives under this section in a separate account, and shall apply amounts in that account to pay for activities described in the district’s or program’s application.

      (6) The State Board of Education may adopt any rules necessary for the administration of the grant program. [2001 c.794 §3; 2001 c.794 §3c; 2005 c.22 §231; 2007 c.578 §1; 2007 c.858 §30a; 2009 c.840 §1; 2011 c.313 §4; 2011 c.443 §5; 2011 c.704 §9; 2011 c.705 §18; 2014 c.6 §§3,4]

 

      327.298 Grants for schools that are high poverty and low performing; rules. (1) The Department of Education shall make grants to improve student achievement in schools that:

      (a) Are considered high poverty under Title I of the federal Elementary and Secondary Education Act of 1965;

      (b) The department had not identified prior to January 1, 2014, as focus or priority schools pursuant to a flexibility waiver submitted to the United States Department of Education; and

      (c) The Department of Education has identified as needing additional supports and interventions pursuant to a flexibility waiver submitted to the United States Department of Education, based on:

      (A) Criteria used by the Department of Education to measure the performance of the schools; and

      (B) The schools’ performance ranking compared to similar schools.

      (2) The department shall identify schools to receive grants as provided in this section and shall notify the identified schools of the schools’ eligibility to receive grants as provided in this section.

      (3) Moneys received by a school under this section must be used to provide instructional time during a summer program. The summer program must provide at least 60 hours of direct academic instruction by a teacher licensed under ORS 342.125 or by an instructional assistant, as defined in ORS 342.120.

      (4) The State Board of Education may adopt any rules necessary for the administration of this section. [2014 c.98 §1; 2015 c.245 §53]

 

      Note: 327.298 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

(Construction and Maintenance of Public School Facilities Grant)

 

      327.300 Definitions for ORS 327.300 to 327.320. As used in ORS 327.300 to 327.320:

      (1) “Construction” includes land acquisition, planning, design, construction, remodeling, altering, furnishing and equipping public school facilities.

      (2) “Maintenance” includes repairing, replacement and other capital maintenance but does not include cleaning.

      (3) “Public school facility” includes facilities used for classroom instruction, multipurpose activities, libraries or any other use associated with public education in preschool through grade 12, and includes facilities that may be used by more than one school district.

      (4) “School district” means a common or union high school district, an education service district or any combination thereof. [1993 c.765 §120]

 

      327.310 Legislative findings. The Legislative Assembly finds that:

      (1) The construction and maintenance of public school facilities accomplish the purpose of creating jobs and furthering economic development in Oregon by, among other advantages:

      (a) Furnishing an important element of the public school system that provides the basic framework for continuing and expanding economic activity in the state;

      (b) Alleviating the congestion and crowding associated with, and reducing the burdens of expansion and maintenance of, existing public school facilities, as well as reducing energy consumption; and

      (c) Creating employment opportunities through the funding of projects for the development and construction of public school facilities.

      (2) Based on the legislative findings described in this section, the use of a portion of the net proceeds from the operation of the state lottery funds under section 4 (3), Article XV of the Oregon Constitution and ORS 461.510 creates jobs and furthers economic development. [1993 c.765 §121]

 

      327.320 School Facility Improvement Fund. There is hereby created the School Facility Improvement Fund, separate and distinct from the General Fund. The fund shall be an investment fund for purposes of ORS 293.701 to 293.857. Moneys in the fund are appropriated continuously for the purpose of carrying out ORS 327.330. Interest earned by the fund shall be credited to the fund. [1993 c.765 §122]

 

      327.330 Grants to school districts for construction and maintenance of public school facilities; rules. (1) Subject to the rules of the State Board of Education, the Superintendent of Public Instruction shall make grants to school districts that apply therefor for the purpose of construction and maintenance of public school facilities.

      (2) Grants shall not exceed $500,000 in any biennium to any school district. In addition, a combination of districts may submit a joint grant application in an amount not to exceed $500,000. However, a district or combination thereof may apply in subsequent bienniums for additional grants for the same facility. Grants must be matched at least one local dollar for four state dollars by the district or combination thereof.

      (3) The state board by rule shall establish criteria for grant approval. Such criteria shall include but not be limited to:

      (a) The age of public school facilities, the degree of overcrowding and the absence of facilities that are considered necessary to accomplish the educational goals of the district and this state; and

      (b) Maintenance and reconstruction needs related to the deterioration of existing public school facilities, which deterioration has the potential of affecting the health and safety of students. [1993 c.765 §123]

 

(Student Transportation Grants)

 

      327.331 Allowed student transportation costs; calculation of grants; rules. (1) In addition to moneys distributed through the State School Fund, the Department of Education shall award grants to school districts as provided by subsections (5) and (6) of this section for up to 50 percent of student transportation costs described in subsection (2) of this section.

      (2) A school district may receive a grant under this section only for student transportation costs:

      (a) For which the school district does not receive any amount in distributions from the State School Fund under ORS 327.013 or any amount related to transit activities.

      (b) That are incurred by the school district for the provision of transportation to students in grades 9 through 12 on:

      (A) A school bus, as defined in ORS 801.460; or

      (B) A school activity vehicle, as defined in ORS 801.455.

      (3)(a) Each school district may apply to the department for a grant under this section.

      (b) The department shall review and approve applications based on criteria established by the State Board of Education and shall award grants as provided by subsections (5) and (6) of this section.

      (c) The applications must include the total amount of the student transportation costs described in subsection (2) of this section and the purposes for which the student transportation costs were incurred.

      (4)(a) Notwithstanding ORS 338.155 (9), the department may not award a grant under this section directly to a public charter school.

      (b) A school district that receives a grant under this section may transfer a portion of the grant to a public charter school based on the charter of the school or any other agreement between the school district and the public charter school.

      (c) A public charter school that receives grant funds under this subsection shall use those funds for the student transportation costs described in subsection (2) of this section.

      (5)(a) Subject to subsection (6) of this section, the amount of each grant for a school district = the school district’s ADMw ´ (the total amount available for distribution to school districts as grants in each fiscal year ¸ the total ADMw of all school districts that receive a grant).

      (b) As used in this subsection, “ADMw” means the extended weighted average daily membership as calculated under ORS 327.013, 338.155 (1) and 338.165 (2).

      (6) If the total amount of grants applied for under subsection (3) of this section exceeds the total amount available for distribution to school districts under this section, the department:

      (a) Shall prioritize school districts that did not receive any public moneys in the previous school year for student transportation costs described in subsection (2) of this section; and

      (b) May otherwise prioritize school districts or prorate distributions based on rules adopted by the board.

      (7) Each school district shall deposit the grant funds it receives under this section in a separate account and shall apply amounts in that account to pay for student transportation costs described in the school district’s grant application.

      (8) The board may adopt any rules necessary for the administration of the grant program.

      (9) Nothing in this section affects a school district’s eligibility to receive a waiver as provided by ORS 327.043. [2018 c.62 §2]

 

(Local Option Equalization Grants)

 

      327.333 Policy on provision of grants to school districts. The Legislative Assembly declares that it is the policy of this state to provide substantial equity in opportunity among school districts in which electors support local option taxes for primary and secondary education. This policy will be accomplished by providing grant supplements to those districts that enact local option taxes and that have lower property wealth per student. [2001 c.896 §1]

 

      327.336 Qualifications; amount. (1) As used in this section:

      (a) “Extended ADMw” means the district extended weighted average daily membership computed under ORS 327.013 (1)(c).

      (b) “Local option tax rate” means the amount of local option taxes imposed by the school district for the current fiscal year, after compression under ORS 310.150 and after subtraction of the amount of school district local option taxes that are distributed to an urban renewal agency pursuant to ORS 457.440, divided by the assessed value of the school district.

      (c) “School district” means a common or union high school district.

      (d) “Target district” means the school district that, for the fiscal year prior to the year for which grants are being determined, had a total assessed value of taxable property per district extended ADMw that was greater than all but 25 percent of the school districts in this state for that prior fiscal year. The Department of Education shall determine which school district is the target district for a fiscal year, based on the total assessed values of school districts reported to the Department of Education by the Department of Revenue for the fiscal year prior to the year for which grants are being determined under this section.

      (2) A school district shall receive a local option equalization grant for a fiscal year:

      (a) In which the school district imposes local option taxes pursuant to ORS 280.040 to 280.145; and

      (b) For which the total assessed value of taxable property per extended ADMw of the school district for the prior fiscal year does not exceed the total assessed value of taxable property per extended ADMw of the target district for the prior fiscal year.

      (3) The amount of the local option equalization grant shall equal the lesser of:

      (a) The product of the local option tax rate of the school district for the current fiscal year ´ (total assessed value per extended ADMw of the target district for the prior fiscal year total assessed value per extended ADMw of the school district for the prior fiscal year) ´ the extended ADMw of the school district for the prior fiscal year; or

      (b) The amount obtained by subtracting the local option tax imposed by the school district for the current fiscal year, after compression under ORS 310.150, from the lesser of:

      (A) Twenty percent of the combined total for the school district of the general purpose grant, the transportation grant and the high cost disabilities grant of the school district for the current fiscal year; or

      (B) $1,000 multiplied by the extended ADMw of the school district for the current fiscal year. The amount multiplied by the extended ADMw of the school district shall be increased each fiscal year by three percent above the amount allowed for the prior fiscal year.

      (4) If the amount computed under subsection (3)(b) of this section is zero or less, a local option equalization grant may not be made to the school district for the fiscal year.

      (5) As soon as is practicable after school districts have certified property taxes to the assessor under ORS 310.060, the Department of Revenue shall report to the Department of Education a list of school districts certifying local option taxes for the current fiscal year and the local option tax rates for those districts. The amount of each local option equalization grant shall be calculated by the Department of Education.

      (6) If the election authorizing the imposition of a local option tax is held after the start of a biennium in which the local option tax is to be imposed, the local option equalization grant for a fiscal year of that biennium shall be determined as otherwise prescribed in this section, but may not be paid to the school district until the first fiscal year of the next succeeding biennium. [2001 c.896 §2; 2003 c.715 §§21,22; 2005 c.803 §9; 2007 c.778 §§8,10; 2009 c.698 §17; 2023 c.586 §5]

 

      327.339 Local Option Equalization Grants Account; grant payments. (1) The Local Option Equalization Grants Account is created in the General Fund.

      (2) From the biennial legislative appropriation to the Local Option Equalization Grants Account to fund the local option equalization grant program described in ORS 327.336, amounts necessary to make the grant payments are continuously appropriated to the Department of Education for the purpose of making these payments.

      (3) The department shall make estimated local option equalization grant payments to school districts entitled to such payments under ORS 327.336 on or before March 31 of each fiscal year.

      (4) If the estimated local option equalization grant payment does not equal the actual local option equalization grant to which a school district is entitled under ORS 327.336, the department shall determine the increase or decrease needed to correct the amount of the grant and may incorporate the correction into a state school fund grant made to the district. The correction may be made in any state school fund grant made during the fiscal year in which the estimated grant payment was made or in the next succeeding fiscal year.

      (5) If the amount of moneys available in the Local Option Equalization Grants Account is insufficient to make the payments required under ORS 327.336 and this section, the payments shall be proportionally reduced so that the state does not accrue a debt in making these payments. [2001 c.896 §3]

 

(Title I School Grants)

 

      327.341 Grants to provide instructional time during summer; rules. (1) In addition to those moneys distributed through the State School Fund, the Department of Education shall make grants to improve student achievement in schools that:

      (a) Are considered high poverty under Title I of the federal Elementary and Secondary Education Act of 1965;

      (b) The department has identified as having a significant achievement gap between historically underserved students groups and other student groups pursuant to standards adopted by the State Board of Education; and

      (c) The department has identified as needing additional supports and interventions based on:

      (A) Criteria used by the Department of Education to measure the performance of the schools; and

      (B) The schools’ performance ranking compared to similar schools.

      (2) The department shall identify schools to receive grants as provided in this section and shall notify the identified schools of the schools’ eligibility to receive grants as provided in this section.

      (3) Moneys received by a school under this section must be used to provide instructional time during a summer program. The summer program must provide at least 60 hours of direct academic instruction by a teacher licensed under ORS 342.125 or by an instructional assistant, as defined in ORS 342.120.

      (4) The State Board of Education may adopt any rules necessary for the administration of this section. [2019 c.122 §43]

 

(English Language Learners)

 

      327.344 Statewide English Language Learner Program Account. (1) The Statewide English Language Learner Program Account is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Statewide English Language Learner Program Account shall be credited to the General Fund.

      (2) Moneys in the Statewide English Language Learner Program Account are continuously appropriated to the Department of Education for statewide activities related to English language learner programs.

      (3) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts, grants or donations from public and private sources for English language learner programs. Moneys received under this subsection shall be deposited into the Statewide English Language Learner Program Account. [2015 c.604 §9]

 

      Note: 327.344 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.345 Grants for training English language learner teachers; qualifications; use; rules. (1) As used in this section, “ELL student” means a student who is eligible for and enrolled in an English language learner program under ORS 336.079.

      (2) In addition to distributing moneys through the State School Fund, the Department of Education may award grants to school districts for the costs of training English language learner teachers.

      (3) The grants shall be available to any school district:

      (a) In which three percent or more of the students enrolled are ELL students;

      (b) That serves ELL students or bilingual students within a large geographic area in the district;

      (c) That has a high growth, as defined by rule of the State Board of Education, of ELL students or bilingual students in any school year; or

      (d) That can demonstrate extraordinary need, as defined by rule of the board, for English language learner teachers or training for English language learner teachers.

      (4) A school district that receives a grant under this section may use the grant to reimburse teachers for tuition costs associated with completing an English language learner or a bilingual teaching program.

      (5) The department may seek and accept gifts, grants and donations from any source and federal funds for the purpose of carrying out the grant program under this section.

      (6) The board may adopt any rules necessary for the administration of the grant program. The rules adopted by the board shall include a method for determining the grant amount that a qualified school district may receive under this section. [2001 c.951 §1; 2015 c.604 §14]

 

(High Cost Disabilities Grants)

 

      327.348 High Cost Disabilities Account; grants; approved costs; rules. (1) There is established within the State School Fund a High Cost Disabilities Account.

      (2) Each fiscal year, the Department of Education shall distribute moneys from the account to school districts as high cost disabilities grants. A school district may receive moneys from the account if the school district has a resident pupil with a disability for whom the approved costs to the school district of providing special education and related services, as determined under subsection (4) of this section, exceed $30,000.

      (3) The amount of moneys received by a school district under this section for each resident pupil with a disability shall equal the approved costs, as determined under subsection (4) of this section, incurred by the school district in providing special education and related services to the pupil minus $30,000.

      (4) The department shall determine the approved costs incurred by a school district in providing special education and related services to a pupil with a disability. The approved costs incurred by a school district may include costs incurred by an education service district of providing special education and related services to the school district through the resolution process described in ORS 334.175. In determining the approved costs for which a school district may receive moneys under this section, the department shall consider:

      (a) How efficiently the special education and related services are provided by the school district; and

      (b) The use of available resources by the school district.

      (5) If the total approved costs for which school districts are seeking moneys from the account exceed the amount in the account in any fiscal year, the department shall prorate the amount of moneys available for distribution in the account among those school districts that are eligible for moneys from the account.

      (6) The department shall distribute any moneys in the account that are not distributed under this section in any fiscal year to school districts based on ORS 327.008 and 327.013.

      (7) The State Board of Education may adopt any rules necessary for the administration of this section. [2005 c.803 §2; 2007 c.70 §93]

 

      327.355 [2005 c.803 §4; repealed by 2007 c.846 §18]

 

(Small School District Grants)

 

      327.356 Definitions for ORS 327.356 and 327.358. As used in this section and ORS 327.358:

      (1)(a) “Small high school” means a public school that is operated by a small school district and that has students in:

      (A) Grades 9 through 12, with an ADM of less than 350 in grades 9 through 12; or

      (B) Grades 10 through 12 only, with an ADM of less than 267.

      (b) “Small high school” does not include an alternative education program or a public charter school.

      (2) “Small school district” means a school district with a weighted average daily membership (ADMw) of less than 9,500. [2013 c.735 §1; 2021 c.355 §11]

 

      Note: 327.356 to 327.359 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.357 [2005 c.803 §5; repealed by 2007 c.846 §18]

 

      327.358 Small school district grants; rules. (1) In addition to those moneys distributed through the State School Fund, the Department of Education shall award grants to small school districts with one or more small high schools from moneys appropriated to the department from the Small School District Supplement Fund.

      (2) The amount of each grant = the small high school’s ADM ´ (the total amount available for the grants in each fiscal year ¸ the total ADM of all small high schools).

      (3) A small school district shall receive a grant under this section for each small high school operated by the school district.

      (4) Notwithstanding the ADMw requirements of ORS 327.356 (2), if two or more school districts merge and, prior to the merger, at least one of the school districts qualified as a small school district under ORS 327.356 and the school district received a grant for one or more small high schools as provided under this section, the Department of Education shall continue to award a grant to the school district for each high school that qualified as a small high school prior to the merger even if the district no longer satisfies the ADMw requirements of ORS 327.356 (2) as long as the high school continues to satisfy the ADM requirements identified in ORS 327.356 (1).

      (5) The State Board of Education shall adopt any rules necessary for the administration of this section. [2013 c.735 §2; 2023 c.332 §2]

 

      Note: See note under 327.356.

 

      327.359 Small School District Supplement Fund. (1) There is established the Small School District Supplement Fund, separate and distinct from the General Fund.

      (2) The moneys in the Small School District Supplement Fund are appropriated continuously to the Department of Education for purposes of the grant program created by ORS 327.358. [2013 c.735 §3]

 

      Note: See note under 327.356.

 

      327.360 [2005 c.803 §3; repealed by 2007 c.846 §18]

 

(Public Charter School Grants)

 

      327.362 Grants to public charter schools to increase academic achievement for students who have historically experienced academic disparities or who are disabled; report; rules. (1) As used in this section:

      (a) “ADMw” means weighted average daily membership, as calculated under ORS 327.013.

      (b) “Eligible public charter school” means a public charter school that is not a virtual public charter school, as defined in ORS 338.005, and that has a student population of which at least 65 percent of the total student population is composed of students from the following combined student groups:

      (A) Racial or ethnic groups that have historically experienced academic disparities, as described in ORS 327.180 (2)(b)(B); and

      (B) Students with disabilities, as described in ORS 327.180 (2)(b)(C).

      (2) In addition to those moneys distributed through the State School Fund, the Department of Education shall award grants under this section to eligible public charter schools from the Statewide Education Initiatives Account.

      (3) The amount of a grant awarded to an eligible public charter school under this section = the public charter school’s ADMw ´ the difference between:

      (a) The amount of the General Purpose Grant per ADMw for the school district that has contractually established payment for the provision of educational services to the public charter school’s students under ORS 338.155 (2) or (3); and

      (b) The amount of the General Purpose Grant per ADMw that the public charter school receives under a contract for the provision of educational services to the public charter school’s students under ORS 338.155 (2) or (3).

      (4) The purpose of grants distributed under this section shall be to increase academic achievement, including reducing academic disparities, for:

      (a) Students from racial or ethnic groups that have historically experienced academic disparities, as determined under rules adopted by the State Board of Education; and

      (b) Students with disabilities.

      (5) Any eligible public charter school may apply for and receive a grant as provided by this section. A grant application must:

      (a) Describe how grant moneys will be used to advance the purpose described in subsection (4) of this section.

      (b) Specify the supports that will be:

      (A) Provided to students with a disability; or

      (B) Used to enhance special education and related services that are provided by a school district under ORS 338.165 to the students of the public charter school.

      (c) Identify any applicable longitudinal performance growth targets for the public charter school that have been established:

      (A) Under contract between the public charter school and the sponsor of the public charter school; or

      (B) By the public charter school or the school district in which the public charter school is located for purposes of grants from the Student Investment Account, as provided by ORS 327.190.

      (d) Be submitted based on the timelines and forms prescribed by the department.

      (6)(a) If the department determines that a grant application complies with the requirements prescribed under this section, the department shall enter into a grant agreement with the eligible public charter school.

      (b) A grant agreement must include longitudinal performance growth targets for the public charter school. If the grant application identified longitudinal performance growth targets, those targets shall be included in the grant agreement. If the grant application did not identify longitudinal performance growth targets, the public charter school shall collaborate with the department to develop longitudinal performance growth targets. Longitudinal performance growth targets must:

      (A) Be based on data available for longitudinal analysis; and

      (B) Use the following applicable metrics:

      (i) Third-grade reading proficiency rates, as defined in ORS 327.190;

      (ii) Regular attendance rates, as defined in ORS 327.190; and

      (iii) Any other metrics identified by the department in collaboration with the public charter school.

      (7) After the department and the public charter school have entered into a grant agreement, the department shall award a grant to the public charter school in the amount calculated under subsection (3) of this section. A grant recipient shall deposit grant moneys received under this section into a separate account and shall apply the amounts in that account as provided by the grant agreement.

      (8)(a) Each year, each grant recipient must submit to the department a description of:

      (A) How grant moneys received under this section were used to advance the purpose described in subsection (4) of this section and to meet performance growth targets in the grant agreement; and

      (B) Progress made by the grant recipient toward meeting the performance growth targets in the grant agreement.

      (b) A grant recipient shall provide the information required under this subsection based on the timelines and forms prescribed by the department. To the greatest extent practicable, the department shall accept the information described in this subsection in the manner that it is made available by a public charter school to the sponsor of the public charter school.

      (9) To the greatest extent practicable, any requirements prescribed by the department or the board under this section in relation to an application, a grant agreement or the submission of information under subsection (8) of this section shall reduce any redundancies between a grant awarded under this section and a grant awarded from the Student Investment Account. Reduction in redundancies includes accepting for the purposes of grants awarded under this section any applicable forms or information submitted by the public charter school to the department or a school district for the purposes of a grant awarded from the Student Investment Account.

      (10) A public charter school and a school district may not consider moneys received by the public charter school under this section when establishing payment for the provision of educational services to the public charter school’s students under ORS 338.155 (2) or (3).

      (11) Prior to February 1 of each year, the department shall submit to the appropriate interim legislative committees a report related to the grants awarded under this section. The report must describe:

      (a) The public charter schools that applied for the grants and the public charter schools that received the grants;

      (b) The longitudinal performance growth targets included in grant agreements, as provided by subsection (6)(b) of this section; and

      (c) Progress made toward meeting longitudinal performance growth targets, as reported under subsection (8)(a) of this section.

      (12) The State Board of Education shall adopt any rules necessary for the distribution of grants under this section. [2021 c.518 §16; 2023 c.495 §12]

 

(Defibrillator Grants)

 

      327.365 Automated external defibrillator grants; rules. (1) As used in this section, “public school facility” means a building or premanufactured structure used by a school district or public charter school to provide educational services to children.

      (2) In addition to those moneys distributed through the State School Fund, the Department of Education may award grants to school districts and public charter schools to provide automated external defibrillators in public school facilities.

      (3) The goal of the grant program is to provide automated external defibrillators in at least two public school facilities in each school district.

      (4) Each school district and public charter school may apply for a grant under this section. The amount of any grant received by a school district or public charter school under this section may not exceed 60 percent of the actual costs for which grant funds may be used under subsection (5) of this section.

      (5) Any school district or public charter school that receives grant funds under this section shall use the funds for:

      (a) Purchasing or leasing automated external defibrillators to be placed in public school facilities;

      (b) Providing training to school district and public charter school employees and volunteers on the use of automated external defibrillators; and

      (c) Any other expense related to providing automated external defibrillators in public school facilities if the expense is approved by the Department of Education.

      (6) The State Board of Education may adopt rules:

      (a) To establish criteria for awarding grants based on the goal set forth in subsection (3) of this section;

      (b) To determine the amount of each grant pursuant to subsection (4) of this section; and

      (c) That are necessary for the administration of this section.

      (7) The Department of Education shall seek federal grant funds for the purposes of the grant program.

      (8) For purposes of the grant program, the Department of Education may accept contributions of funds and assistance from the United States Government and its agencies or from any other source, public or private, and agree to conditions placed on the funds not inconsistent with the purposes of the grant program.

      (9) All funds received by the Department of Education under this section shall be paid into the Department of Education Account established in ORS 326.115 to the credit of the grant program. [2005 c.551 §4]

 

(Grants to Assist Students to Graduate)

 

      327.367 Early warning system; grants; rules. (1) In addition to those moneys distributed through the State School Fund, the Department of Education shall award grants from the Statewide Education Initiatives Account to school districts to implement the early warning system described in this section that assist students in graduating from high school.

      (2)(a) A system funded by a grant awarded under this section must enable school districts, students, students’ families, educators, school counselors and community organizations to take necessary corrective actions to assist students in graduating from high school.

      (b) Corrective actions that may be taken must be based on research on graduation rates and on reports of individual students related to:

      (A) The student’s attendance;

      (B) The student’s behavior at school;

      (C) The student’s academic or skill progress; and

      (D) Any other factors identified by the State Board of Education by rule.

      (3) The department shall assist school districts that may apply for a grant under this section, that have applied for a grant under this section or that have received a grant under this section, as appropriate, by:

      (a) Providing technical assistance to school districts to ensure that the school districts understand the goals and objectives of the system;

      (b) Assisting school districts in developing expertise in assisting students in graduating from high school and developing a culture that encourages and assists students in graduating from high school;

      (c) Identifying meaningful predictive indicators of high school graduation;

      (d) Developing local communication systems among students, students’ families, educators and community organizations to assist students in graduating from high school;

      (e) Identifying and developing interventions at school, at home and in the community to meet students’ needs; and

      (f) Reviewing existing policies and practices to:

      (A) Expand policies and practices that encourage high school graduation; and

      (B) Eliminate or modify policies and practices that may provide a disincentive to graduate from high school.

      (4) The amount of each grant awarded under this section shall equal the school district’s ADM as defined in ORS 327.006 ´ $3.

      (5) The State Board of Education shall adopt any rules necessary for the administration of the grants described in this section. [2019 c.122 §46]

 

(STEM and CTE Programs)

 

      327.372 Funding for activities related to science, technology, engineering and mathematics education and to career and technical education; report. (1) Activities related to science, technology, engineering and mathematics education and activities related to career and technical education that can lead to high wage and high demand jobs shall be funded as provided by this section.

      (2) The Department of Education shall distribute moneys in the Connecting Education to Careers Account established by ORS 327.376 as follows:

      (a) Forty percent for activities related to science, technology, engineering and mathematics education that are described in subsection (3) of this section. Moneys shall be distributed by the department under this paragraph based on recommendations of the STEM Investment Council.

      (b) Sixty percent for activities related to career and technical education that can lead to high wage and high demand jobs and that are described in subsection (4) of this section. Moneys shall be distributed by the department under this paragraph based on recommendations of the committee established under ORS 344.075.

      (3) Moneys distributed as provided by subsection (2)(a) of this section to fund activities related to science, technology, engineering and mathematics education shall be used to:

      (a) Expand and sustain regional networks that support science, technology, engineering and mathematics.

      (b) Award grants that expand the implementation of effective programs related to science, technology, engineering and mathematics, that propose innovative approaches or programs related to science, technology, engineering and mathematics or that provide professional development related to teaching science, technology, engineering and mathematics.

      (c) Provide funding to recruit, retain and support underserved students, as defined by the State Board of Education by rule, for programs that are offered at community colleges and public universities and that can lead to high wage and high demand jobs related to science, technology, engineering and mathematics.

      (d) Develop a systematic survey of facility use to determine how savings for science, technology, engineering and mathematics education can be achieved.

      (e) Fund any other activities related to science, engineering and mathematics education that are identified by the STEM Investment Council.

      (4) Moneys distributed as provided by subsection (2)(b) of this section to fund activities related to career and technical education that can lead to high wage and high demand jobs shall be used for:

      (a) Programs that expose students to career and technical education programs that can lead to high wage and high demand jobs.

      (b) Career and Technical Education Revitalization grants awarded under ORS 344.075.

      (c) Student leadership organizations related to career and technical education programs that can lead to high wage and high demand jobs.

      (d) Distribution to school districts to support career and technical education programs in the school district that are approved by the Department of Education as being high quality and that can lead to high wage and high demand jobs. Moneys must be distributed to each school and public charter school in the school district based on the number of students enrolled at the school with the following characteristics:

      (A) Students who are enrolled in and earned three or more credits for courses that are part of a career and technical education program that can lead to high wage and high demand jobs and that are approved by the Department of Education.

      (B) Students who acquire an industry credential that can lead to a high wage and high demand job and that is approved by the Department of Education.

      (C) Students described in subparagraph (A) or (B) of this paragraph who are historically underserved, as defined by the State Board of Education by rule.

      (e) Administration of grants for the purpose of expanding teacher training programs and opportunities related to career and technical education that can lead to high wage and high demand jobs.

      (f) Administration of a pilot program to increase students’ exposure and access to career and technical education that can lead to high wage and high demand jobs.

      (g) Funding any other activities related to career and technical education that can lead to high wage and high demand jobs and that are identified by the committee established under ORS 344.075.

      (5) Except as otherwise provided, moneys distributed under subsections (3) and (4) of this section shall be distributed to school districts, education service districts, public schools, public charter schools, community colleges, public universities or statewide nonprofit organizations promoting student leadership in career and technical education or any combination thereof or in partnership with youth job development organizations, as defined in ORS 344.415, other nonprofit organizations or other entities identified by the State Board of Education by rule.

      (6) From the moneys available under subsection (2) of this section, the Department of Education, the STEM Investment Council and the committee established under ORS 344.075 combined may retain no more than a total of five percent of all moneys distributed for a fiscal year for administrative expenses incurred under this section.

      (7) The Department of Education, in collaboration with the STEM Investment Council and the committee established under ORS 344.075, shall submit a biennial report to the Legislative Assembly related to distributions made under this section. The report must include metrics that identify how distributions made under this section are contributing to the development of a skilled workforce that is able to secure high wage and high demand jobs. [2015 c.763 §1; 2015 c.763 §2; 2017 c.184 §§1,2]

 

      Note: 327.372 and 327.376 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.376 Connecting Education to Careers Account. The Connecting Education to Careers Account is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Connecting Education to Careers Account shall be credited to the account. Moneys in the account are continuously appropriated to the Department of Education for distribution as provided by ORS 327.372. [2015 c.763 §3]

 

      Note: See note under 327.372.

 

(STEM Investment Grant Program)

 

      327.380 Application for grant; evaluation of application. (1) The STEM Investment Grant Program is established to provide funding to school districts, community colleges and public universities listed in ORS 352.002 to advance the goals described in ORS 326.500 (2).

      (2) The STEM Investment Council shall evaluate grant applications and make recommendations on the applications to the Superintendent of Public Instruction. Under the direction of the Superintendent of Public Instruction, the Department of Education shall distribute moneys for the grant program and otherwise administer the grant program.

      (3)(a) An application for a grant awarded under this section may be submitted by:

      (A) A school district;

      (B) A community college district;

      (C) A public university;

      (D) The Department of Education;

      (E) The Higher Education Coordinating Commission;

      (F) Any other state agency; or

      (G) Any combination of entities identified in this paragraph that are organized as a partnership or a regional effort to improve student achievement in science, technology, engineering or mathematics.

      (b) A grant awarded under this section may be used for:

      (A) Classroom or extracurricular activities that further the development of skills related to science, technology, engineering or mathematics; or

      (B) A project that is related to science, technology, engineering or mathematics and that involves collaboration with a private entity.

      (4) When evaluating applications for a grant, the council:

      (a) Shall give priority to applications for activities or projects that produce the largest impact at the lowest cost or for the greatest number of students throughout this state, including grants for activities or projects that:

      (A) Are determined by the council to be likely to become self-supporting within three years;

      (B) Expand evidence-based, effective practices in science, technology, engineering or mathematics;

      (C) Can be replicated by other entities in this state;

      (D) Show evidence of attracting matching funds;

      (E) If the applicant is an entity identified in subsection (3)(a)(A) to (C) of this section, have demonstrable support from the governing body of the entity;

      (F) Help improve access by underrepresented groups to activities that involve science, technology, engineering or mathematics; or

      (G) Are elements of a partnership or a regional effort to improve student achievement in science, technology, engineering or mathematics;

      (b) May give priority to applications for activities or projects that benefit students in more than one student group among students in kindergarten through grade 12, students in community colleges and students in universities;

      (c) Shall attempt to achieve a balance, as determined by the council, among grants that are awarded for the sole benefit of students in kindergarten through grade 12, students in community colleges and students in universities; and

      (d) Shall take into consideration geographic and demographic diversity. [2013 c.739 §7; 2013 c.739 §8; 2015 c.366 §§76,77; 2015 c.767 §§100,101]

 

      Note: 327.380 and 327.385 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.385 STEM Investment Grant Account. The STEM Investment Grant Account is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the STEM Investment Grant Account shall be credited to the account. Moneys in the account are continuously appropriated to the Department of Education for the STEM Investment Grant Program established by ORS 327.380. [2013 c.739 §9]

 

      Note: See note under 327.380.

 

(Outdoor School Grants)

 

      327.390 Grants; advisory committee; role of Oregon State University Extension Service. (1) The Oregon State University Extension Service shall assist school districts and education service districts in providing outdoor school programs. The Oregon State University Extension Service shall provide assistance by administering a grant program, providing program leadership and providing program maintenance.

      (2) Grants shall be awarded for outdoor school programs that:

      (a) Provide a six-day, residential, hands-on educational experience, or an equivalent outdoor educational experience that reflects local community needs and contexts, featuring field study opportunities for students learning about:

      (A) Soil, water, plants and animals;

      (B) The role of timber, agriculture and other natural resources in the economy of this state;

      (C) The interrelationship of nature, natural resources, economic development and career opportunities in this state; and

      (D) The importance of this state’s environment and natural resources.

      (b) Are integrated with local school curricula in a manner that assists students in meeting state standards related to science, technology, engineering and mathematics, and international standards related to science.

      (c) Provide students with opportunities to develop leadership, critical thinking and decision-making skills.

      (d) Address the inequity of outdoor educational opportunities for underserved children in this state.

      (e) Provide students with opportunities to learn about the interdependence of urban and rural areas.

      (3) Grants shall be awarded to a school district or to an education service district.

      (4) Priority for grants shall be given to outdoor school programs that promote:

      (a) Higher scores on standardized measures of academic achievement in reading, writing, math, science and social studies.

      (b) Greater self-sufficiency and leadership skills.

      (c) Fewer discipline and classroom management problems.

      (d) Increased student engagement and pride in accomplishments.

      (e) Greater proficiency in solving problems and thinking strategically.

      (f) Better application of systems thinking and increased ability to think creatively.

      (g) Improved communication skills and enhanced ability to work in group settings.

      (h) Greater enthusiasm for language arts, math, science and social studies.

      (i) Increased knowledge and understanding of science content, concepts and processes.

      (j) Better ability to apply science and civic processes to real-world situations.

      (k) Improved understanding of mathematical concepts and mastery of math skills.

      (L) Improved language arts skills.

      (m) Better comprehension of social studies content.

      (n) Accessibility to students of all abilities and learning styles.

      (5)(a) The Director of the Oregon State University Extension Service shall convene an advisory committee for the purpose of administering the grant program established under this section. When selecting the members of the committee, the director shall take into consideration geographic and demographic diversity and shall ensure that the committee has representatives of the environmental community, the natural resources community and fifth-grade or sixth-grade education.

      (b) The advisory committee shall recommend to the director:

      (A) Standards for outdoor school programs; and

      (B) Distributions of moneys for outdoor school programs.

      (6) The Oregon State University Extension Service shall provide program leadership of outdoor school programs, including:

      (a) Providing program management and administration, including:

      (A) Developing and reviewing outdoor school program curricula;

      (B) Designing outdoor school program lessons that are available on websites and mobile devices;

      (C) Developing outdoor school program learning modules and materials;

      (D) Implementing the outdoor school program;

      (E) Developing best practices for providing outdoor school programs; and

      (F) Providing staff training related to outdoor school programs;

      (b) Convening an advisory committee to assist with management activities;

      (c) Distributing grants and entering into contracts and other agreements related to financing;

      (d) Providing procurement services;

      (e) Complying with reporting requirements; and

      (f) Ensuring compliance with program requirements.

      (7)(a) The Oregon State University Extension Service shall provide program maintenance, including:

      (A) Conducting program reviews and implementing program revisions;

      (B) Making quality assessments and monitoring the program for quality;

      (C) Evaluating outputs and impacts of outdoor school programs;

      (D) Engaging in camp development, including the selection, management and coordination of camps; and

      (E) Conducting risk management.

      (b) The Oregon State University Extension Service shall collaborate with the Department of Education to identify and collect student data that is relevant for the purpose of program maintenance, as described in paragraph (a) of this subsection.

      (8) Nothing in this section shall be construed as imposing on the Oregon State University Extension Service any duties or obligations unless funding is provided to the service for expenses incurred by the service for the purposes of this section.

      (9) The director shall submit an annual report to:

      (a) The Department of Education, related to the ability of outdoor school programs to assist students in meeting state standards related to science, technology, engineering and mathematics, and international standards related to science; and

      (b) The interim legislative committees on education, related to grant programs. [2015 c.782 §2; 2023 c.526 §1]

 

COMMON SCHOOL FUND

 

      327.403 Definition for ORS 327.405 to 327.480. As used in ORS 327.405 to 327.480, unless the context requires otherwise, “administrative office for the county” means the administrative office of the education service district or of any common school district that includes an entire county. [1965 c.100 §30; 1991 c.167 §2; 2003 c.226 §4]

 

      327.405 Common School Fund; composition and use. (1) The Common School Fund is composed of:

      (a) The proceeds from the sales of the 16th and 36th sections of every township or of any lands selected in lieu thereof;

      (b) All the moneys and clear proceeds of all property that may accrue to the state by escheat or forfeiture;

      (c) The proceeds of all gifts, devises and bequests made by any person to the state for common school purposes;

      (d) The proceeds of all property granted to the state when the purpose of such grant is not stated;

      (e) All proceeds of the sale of submerged and submersible lands as described in ORS 274.005;

      (f) All proceeds of the sale of the South Slough National Estuarine Research Reserve as described in ORS 273.553 (1)(a) in the event such property is sold;

      (g) All proceeds of the sale of the 500,000 acres of land to which this state is entitled by an Act of Congress approved September 4, 1841, and of all lands selected for capitol building purposes under Act of Congress approved February 14, 1859;

      (h) Moneys credited to the fund or transferred to the fund by the Legislative Assembly; and

      (i) All proceeds derived from the investment of moneys that compose the fund.

      (2) Except as otherwise provided by law, the income from the fund must be applied exclusively to the support and maintenance of common schools in each school district. [Amended by 1957 c.670 §31; 1965 c.100 §31; 1969 c.338 §3; 1987 c.760 §4; 1997 c.321 §2; 2003 c.14 §147; 2013 c.358 §2; 2019 c.678 §66; 2021 c.139 §§4,5; 2021 c.424 §20]

 

      327.410 Apportionment of Distributable Income Account of Common School Fund among counties; distribution to school districts. The Department of State Lands shall transfer the balance of the Distributable Income Account of the Common School Fund established under ORS 273.105, after deductions authorized by law, to the Superintendent of Public Instruction semiannually, or more frequently if the State Land Board so orders. The superintendent shall immediately apportion the amount transferred among the counties in proportion to the number of children resident in each county between the ages of 4 and 20 as determined pursuant to ORS 190.510 to 190.610. The superintendent shall distribute to each school district within a county a share of the county’s apportionment that is based on the district’s average daily membership that resides within the county. [Amended by 1965 c.100 §32; 1967 c.421 §200; 1971 c.294 §2; 1982 s.s.2 c.1 §5; 2005 c.412 §1]

 

      327.415 [Amended by 1963 c.544 §16; 1965 c.100 §33; 1971 c.294 §1; repealed by 2005 c.412 §3]

 

      327.420 Basis of apportionment. (1) The basis of all apportionments of the Common School Fund shall be the reports of the resident average daily membership for the preceding fiscal year as reported by the school district to the Department of Education.

      (2) In the case of a joint school district, the resident average daily membership reported to the department shall be prorated between the counties as the resident enrollment of the district is prorated between the counties. [Amended by 1965 c.100 §34; 1971 c.294 §3; 2005 c.412 §2]

 

      327.423 Determination of school census. (1) The Superintendent of Public Instruction shall prorate the annual estimate of census as provided in ORS 327.410 and 327.420 in proportion as the resident average daily membership of each education service district bears to the total resident average daily membership of the state and certify such to the administrative officer of each education service district.

      (2) Subject to guidelines approved by the Superintendent of Public Instruction, the administrative officer of each education service district shall apportion the census so certified to those common school districts reporting to the education service district. The estimated district census determined by this manner shall be deemed applicable to all statutory references to the term “census” or “school-age child” in Oregon Revised Statutes. [Formerly 326.355]

 

      Note: 327.423 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.425 Loans and investment of funds; determination of interest rate. (1) All moneys belonging to the Common School Fund and not required to meet current expenses shall be loaned by the Department of State Lands at a rate of interest fixed by the department. The department may consult with and obtain the recommendation of the Oregon Investment Council in fixing the interest rate.

      (2) Common School Fund moneys may be loaned in accordance with the repayment plan contained in ORS 327.440, except that loans on property within the corporate limits of towns or cities shall be payable in not more than 15 years on the amortization plan.

      (3) If at any time there is a Common School Fund surplus over and above all loans applied for, such portion of the surplus as the department deems proper may be invested as provided in ORS 293.701 to 293.857. The department may require the State Treasurer to deposit any such surplus, until it is able to loan same, in qualified state depositories, upon the same terms and conditions as other public funds are deposited therein, in which event any interest received from any such state depository shall be credited to the fund on which such interest was earned.

      (4) The department may reduce the rate of interest to be paid upon outstanding loans from the Common School Fund and any trust fund placed in its charge, to correspond with the rate of interest to be paid upon new loans, but no reduction in rate of interest shall be made upon any of the loans until interest at the old rate has been paid in full to date of receipt of remittance at the office of the department. [Amended by 1963 c.326 §2; 1965 c.100 §35; 1965 c.532 §5; 1967 c.335 §38; 1969 c.413 §1; 1983 c.740 §99; 2015 c.513 §10]

 

      327.430 Security for loans. (1) The principal and interest of all loans shall be paid in lawful money of the United States.

      (2) Loans shall be secured by note specifying the fund from which the loan is made and mortgage to the Department of State Lands on improved land within this state, or upon range or grazing land therein. Except as provided in ORS 273.815, the security for a secured loan shall be not less than twice the value of the amount loaned, and, except as otherwise provided in subsection (3) of this section, shall be of unexceptional title and free from all encumbrances. A secured loan may be secured by a deposit of obligations of the United States or of bonds or warrants of this state of a face value of not less than 25 percent in excess of such loans.

      (3) The department is not prohibited by subsection (2) of this section from making a secured loan merely because the land securing the loan is:

      (a) Situated in an irrigation district, taking into consideration the amount of bonded indebtedness of the district as compared with the valuation of the real property of the district.

      (b) Subject to a reservation of mineral rights.

      (c) Subject to a lease of any kind.

      (d) Subject to a statutory lien for public improvements.

      (e) Subject to an easement. [Amended by 1955 c.352 §1; 1959 c.90 §1; 1963 c.326 §1; 1963 c.517 §6; 1965 c.229 §1; 1965 c.532 §6; 2015 c.513 §11]

 

      327.435 Ascertainment of value and title of security. The Department of State Lands shall adopt methods, rules and regulations for ascertaining the value of and state of the title of any lands proposed as security for any loan under the provisions of ORS 327.425 and 327.430. All expenses of ascertaining title shall be borne by the applicant. The department may establish fees to be paid by the applicant for the appraisal of any property offered as security. [Amended by 1965 c.229 §2]

 

      327.440 Loan repayment. Secured loans authorized by ORS 327.430 shall be repaid in semiannual, quarterly or monthly installments, as may mutually be agreed upon between the borrower and the Department of State Lands, and the installments shall aggregate each year an amount equal to one year’s interest on the original principal of the loan plus an additional two percent of the original principal sum, except as provided in ORS 327.425. Of the installment so paid each year, the amount at the specified interest rate on the principal remaining unpaid shall be credited as interest and the balance credited to reduction of the loan principal. Borrowers from the fund shall have the right to make payments in excess of the amounts of such installments, and the further right at any time to pay off such loans in part or full with interest to payment dates. [Amended by 1965 c.532 §7]

 

      327.445 Custody of securities for loan; collection of interest. The Department of State Lands shall have custody of all notes, bonds and other securities covering secured loans made by it from any fund. The department shall take proper measures for the prompt collection of interest due on all loans from any such fund and place it to the credit of the fund from which the loan was made, to be paid out as provided by law. [Amended by 1965 c.532 §8]

 

      327.450 Foreclosure of mortgages given to secure loans. (1) The Department of State Lands shall foreclose all mortgages taken to evidence loans from the Common School Fund or other funds whenever more than one year’s interest on the loan is due and unpaid or whenever any mortgage becomes inadequate security for the money loaned. The department may foreclose its mortgage in the event of waste or any other impairment of the property upon which the loan was made. It may also foreclose for delinquency in payment of principal or interest installments or in payment of taxes on such property.

      (2) The department may bid in the land in the name of the state at a price not to exceed the total amount of the state’s claim or they may accept a deed or a release of the equity of redemption. Should it appear to the satisfaction of the department that the mortgagee cannot make the payment of interest and that foreclosure would work an injustice and that foreclosure is not then necessary to secure the fund from loss, the department may extend the time for paying such interest not exceeding two years. [Amended by 1965 c.100 §36]

 

      327.455 Record of purchases by Department of State Lands on foreclosures; resale or lease of land; disposition of proceeds. The Director of the Department of State Lands shall keep a correct record of all purchases on foreclosures under ORS 327.450 with a description of the lands so purchased or acquired, and a statement of the fund to which they belong. Such lands shall be placed in the hands of the director and sold or leased under the direction of the department on the best terms obtainable, and the proceeds, to the amount of the principal of the loans, shall be paid into the fund from which the loans were made, and the excess paid to the interest account of that fund.

 

      327.465 Cancellation of unpaid taxes after deed to state in liquidation of loan. Whenever the Department of State Lands receives a deed to the State of Oregon of lands covered by a mortgage given to secure a loan from the Common School Fund in liquidation of the debt represented by the loan, the department shall send a written notice of the transaction to the county court of the county in which such deeded lands are situated. Upon the receipt of such notice, the county court shall cancel on the county tax records unpaid taxes levied and assessed against such property in that county. This section does not apply to tax liens of irrigation or drainage districts organized prior to the effective date of the lien of the department.

 

      327.470 Cancellation of taxes on land acquired through foreclosure proceedings; right of redemption. (1) Excepting tax liens of irrigation or drainage districts organized before the effective date of the Department of State Lands’ lien, whenever the State of Oregon acquires property or lands through foreclosure of a mortgage given to secure a loan from the Common School Fund and the state has received the sheriff’s deed made as a result of such foreclosure proceedings and the period for redemption has expired, the county court, or board of county commissioners, of the county in which such lands are situated shall cancel on the county tax records all the unpaid taxes levied and assessed against the property.

      (2) At the time the sheriff issues a certificate of sale in the foreclosure proceedings of any department mortgage, the sheriff shall serve a copy of the certificate upon the county judge, or the chairperson of the board of county commissioners, of the county in which the foreclosure takes place. The county shall have a 60-day period from the date of the sheriff’s certificate in which to redeem the land by paying the department the full amount of its investment in the land, including principal and interest, foreclosure charges, abstracting expense, and any other necessary expense incurred by the department in said foreclosure proceedings.

 

      327.475 When county court may acquire mortgaged lands deeded to state. Whenever the Department of State Lands receives a deed as described in ORS 327.465, the county court of the county in which the lands are situated may, within one year from the recorded date of such deed, acquire from the state the property so conveyed by paying to the state the total amount of the state’s investment in the property.

 

      327.480 Use of Common School Fund moneys to comply with judgment canceling fraudulent deed. (1) Where the judgment in a suit instituted by the State of Oregon to cancel and set aside any deed of lands from the State of Oregon alleged to have been procured by fraud and in violation of law grants relief to the State of Oregon which is conditioned on the payment of money, the Department of State Lands may pay from the Common School Fund the sum necessary to comply with the conditions of the judgment.

      (2) This section shall not be considered as a legislative interpretation relieving the defendants in such suit from applying to the legislature for repayment of the purchase price of such land, or that the State of Oregon is not entitled to an accounting from the purchaser, the assignee, or successor in interest, for school or other lands obtained in violation of law, or that the State of Oregon must repay the purchase price of such lands, with or without interest as a condition of obtaining relief. This section is intended to prevent the loss to the State of Oregon of lands obtained in violation of law, where the court imposes as a condition for granting relief the payment of money. [Amended by 1965 c.100 §37; 2003 c.576 §433]

 

      327.482 Appropriation to reimburse fund for earnings failure. Out of the moneys in the General Fund, there is continuously appropriated such sums as are necessary but not to exceed $100,000 in total to reimburse the Common School Fund for any amount that may result from the failure of loans to earn at least four percent interest. The computation required to determine the interest earned on the loans shall be made annually, and the amount required to reimburse the fund shall be paid annually. [1965 c.532 §9; 1967 c.477 §1; 2015 c.513 §12]

 

      327.483 [1963 c.570 §32a; repealed by 1965 c.100 §456]

 

      327.484 Reimbursement for earnings failure. Moneys may be withdrawn annually on July 1 from the General Fund by order of the Department of State Lands to be credited to the Common School Fund to pay to the Common School Fund any amount resulting from the failure of the total student loans to earn at least four percent interest in the preceding fiscal year. [1965 c.532 §11; 1967 c.335 §39; 1967 c.477 §2; 2015 c.513 §13]

 

EDUCATION CASH ACCOUNT

 

      327.485 Education Cash Account; disbursements. (1) The Education Cash Account of the General Fund consists of all moneys made available to the Department of Education by:

      (a) Charitable and philanthropic foundations, organizations and agencies if the moneys have not been dedicated for specific use by requirements of other sections of Oregon Revised Statutes;

      (b) Miscellaneous receipts;

      (c) Collection of fees from sale of supplies and publications compiled and furnished by the Department of Education and distributed or sold to other persons or groups;

      (d) Funds received as gifts, contributions and bequests for career and technical education and moneys received as reimbursements for funds theretofore expended;

      (e) Moneys received through charges to grants, contracts and other funds for indirect costs; and

      (f) Any other nondedicated moneys received by the Department of Education for which the Legislative Assembly has established an administrative funds limitation.

      (2) The provisions of this section do not relieve the department of its responsibilities to separately account for moneys received as trust funds.

      (3) Disbursements from the Education Cash Account shall be made as directed by the Department of Education. The department shall keep a record of all moneys deposited in such account. The record shall indicate by separate cumulative accounts the source from which the moneys are derived and the individual activity against which each withdrawal is charged. [1961 c.588 §1; 1965 c.100 §38; 1979 c.570 §3; 1993 c.45 §302; 2005 c.209 §7; 2009 c.94 §3]

 

      327.490 Projects contracted to districts and institutions of higher learning. The State Board of Education may contract with school districts, community college districts and any institutions of higher learning in this state for the purpose of carrying out any phase of a project for which funds granted under ORS 327.485 are available and may reimburse such districts and institutions from such funds. The board may make advance payments to the contracting districts or institutions based on the estimated cost of any service to be provided. Any payment to a district shall not be subject to the provisions of ORS 294.305 to 294.565. [1961 c.588 §5; 1989 c.491 §8]

 

      327.495 Appropriation of funds received for certain purposes. All moneys received by the State Board of Education for distribution to school districts in this state for the purpose of carrying out experimental and demonstration programs to improve education and educator preparation in this state are continuously appropriated for such purpose. [1961 c.588 §6; 1965 c.100 §39; 1989 c.491 §9; 2013 c.747 §177; 2015 c.245 §39]

 

SUMMER LEARNING PROGRAM ACCOUNT

 

      327.496 Summer Learning Program Account; rules. (1) The Summer Learning Program Account is established in the State Treasury, separate and distinct from the General Fund.

      (2) The account consists of moneys appropriated, allocated, deposited or transferred to the account by the Legislative Assembly or otherwise.

      (3) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts, grants, donations and other moneys from public and private sources for deposit in the account.

      (4) Moneys in the account are continuously appropriated to the Department of Education to disburse or expend for activities or programs related to providing summer academic and enrichment opportunities for school-aged children.

      (5) The Department of Education may enter into grant agreements, contracts, intergovernmental agreements or other agreements with school districts, community-based organizations, nonprofit organizations, federally recognized tribes or other entities to provide summer academic and enrichment programs and may disburse or expend moneys from the account pursuant to such agreements.

      (6) The State Board of Education may adopt rules necessary for the administration of the account. [2021 c.10 §19]

 

      Note: 327.496 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

QUALITY EDUCATION COMMISSION

 

      327.497 Legislative findings. The Legislative Assembly finds that:

      (1) Within the Oregon Educational Act for the 21st Century in ORS chapter 329 there are established goals for high academic excellence, the application of knowledge and skills to demonstrate achievement and the development of lifelong learning skills to prepare students for the ever-changing world.

      (2) Education is increasingly linked to economic and social issues.

      (3) The people of Oregon, through section 8, Article VIII of the Oregon Constitution, have established that the Legislative Assembly shall appropriate in each biennium a sum of money sufficient to ensure that the state’s system of public education meets the quality goals established by law. Furthermore, the people of Oregon require that the Legislative Assembly publish a report that either demonstrates that the appropriation is sufficient or identifies the reasons for the insufficiency, its extent and its impact on the ability of the state’s system of public education to meet those goals.

      (4) The Quality Education Commission should be established to define the costs sufficient to meet the established quality goals for kindergarten through grade 12 public education. [2001 c.895 §1]

 

      327.500 Establishment; membership; staff. (1) There is established a Quality Education Commission consisting of 11 members appointed by the Governor. The Governor may not appoint more than five members of the commission who are employed by a school district at the time of appointment.

      (2) The term of office of each member is four years, but a member serves at the pleasure of the Governor. Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on August 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the remainder of the unexpired term.

      (3) The appointment of members of the commission is subject to confirmation by the Senate in the manner prescribed in ORS 171.562 and 171.565.

      (4) A member of the commission is entitled to compensation and expenses as provided in ORS 292.495.

      (5) The Department of Education shall provide staff to the commission. [2001 c.895 §2; 2005 c.209 §8]

 

      327.502 Officers; quorum; meetings. (1) The Governor shall select one of the members of the Quality Education Commission as chairperson and another as vice chairperson, for such terms and with duties and powers necessary for the performance of the functions of those offices as the Governor determines.

      (2) A majority of the members of the commission constitutes a quorum for the transaction of business.

      (3) The commission shall meet at times and places specified by the call of the chairperson or of a majority of the members of the commission. [2001 c.895 §4]

 

      327.505 [Repealed by 1965 c.100 §456]

 

      327.506 Quality education goals; duties; report. (1) The quality goals for the state’s system of kindergarten through grade 12 public education include those established under ORS 329.007, 329.015, 329.025, 329.045 and 329.065.

      (2) Each biennium the Quality Education Commission shall determine the amount of moneys sufficient to ensure that the state’s system of kindergarten through grade 12 public education meets the quality goals.

      (3) In determining the amount of moneys sufficient to meet the quality goals, the commission shall identify best practices that lead to high student performance and the costs of implementing those best practices in the state’s kindergarten through grade 12 public schools. Those best practices shall be based on research, data, professional judgment and public values.

      (4) Prior to August 1 of each even-numbered year, the commission shall issue a report to the Governor and the Legislative Assembly that identifies:

      (a) Current practices in the state’s system of kindergarten through grade 12 public education, the costs of continuing those practices and the expected student performance under those practices; and

      (b) The best practices for meeting the quality goals, the costs of implementing the best practices and the expected student performance under the best practices.

      (5) In addition, the commission shall provide in the report issued under subsection (4) of this section at least two alternatives for meeting the quality goals. The alternatives may use different approaches for meeting the quality goals or use a phased implementation of best practices for meeting the quality goals. [2001 c.895 §5; 2003 c.303 §14; 2007 c.858 §31]

 

      327.510 [Repealed by 1965 c.100 §456]

 

BUDGET AND ACCOUNTING SYSTEM

 

      327.511 Uniform budget and accounting system. (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 shall place data gathered from the uniform budget and accounting system in a database that includes information that is accessible by the public through the Internet, a personal computer or other similar technology. [1997 c.616 §1]

 

      327.515 [Repealed by 1965 c.100 §456]

 

FOOD PROGRAMS

 

      327.520 Acceptance and distribution of USDA Foods. (1) As used in this section, “USDA Foods” means domestic agricultural products purchased by the United States Department of Agriculture for use in schools and other institutions that provide nutritional services to children.

      (2) The Department of Education may accept and distribute USDA Foods available for either public or private nonprofit educational institutions, subject to state or federal law or regulation relating to the acceptance and distribution of those foods. The department shall charge an amount sufficient to cover but not exceed all costs of distribution to the individual schools. The charge may include administrative expenses, freight, warehousing, storing, processing and transshipment. The department may adjust charges to cover differences in program costs based on the USDA Foods received. [Amended by 1989 c.491 §10; 2023 c.570 §1]

 

      327.523 [1975 c.87 §1; repealed 1981 c.784 §38]

 

      327.525 School Foods Revolving Account. The School Foods Revolving Account, separate and distinct from the General Fund, is continuously appropriated to the Department of Education for the purposes of ORS 327.520. All moneys received under the provisions of ORS 327.520 shall be paid by the department to the State Treasurer for credit to the School Foods Revolving Account. Interest earned by the account shall be credited to the account. [Amended by 1965 c.100 §40; 1975 c.87 §2; 1981 c.784 §21; 1989 c.491 §11; 1989 c.966 §26; 2023 c.570 §2]

 

      327.527 Summer breakfast and lunch program reimbursement; grants; rules. (1) The Department of Education shall reimburse a school district, government agency or community group five cents for every breakfast or lunch the district, agency or group serves as a part of:

      (a) The United States Department of Agriculture’s Summer Food Service Program; or

      (b) A summer meals program through an existing national school lunch program.

      (2) In addition to the reimbursements provided under subsection (1) of this section, the Department of Education may award grants to school districts, government agencies and community groups to encourage participation in a program identified in subsection (1) of this section. Each grant may not exceed $20,000 and must be used to:

      (a) Purchase or upgrade necessary equipment and services required to provide food service and meet sanitation requirements;

      (b) Make any payment necessary to comply with sanitation requirements that may be required prior to approval; or

      (c) Fund participant outreach activities and materials and necessary enrichment activities and materials.

      (3) The State Board of Education may adopt any rules necessary for the administration of this section. [2005 c.701 §1; 2013 c.653 §1; 2014 c.10 §1; 2019 c.122 §28; 2023 c.570 §4]

 

      327.530 [Repealed by 1965 c.100 §456]

 

      327.531 School breakfast and lunch programs; eligibility; insufficient funds; rules. (1)(a) A school or school district that meets the eligibility requirements of the special provisions of the United States Department of Agriculture’s National School Lunch Program or School Breakfast Program may offer reimbursable breakfasts, lunches or both at no charge and without consideration of individual eligibility by applying to the Department of Education.

      (b) If the school or school district is approved under paragraph (a) of this subsection, the school or school district must offer breakfasts, lunches or both to all students of the school or school district at no charge to the student.

      (c) For each breakfast or lunch that a school or school district provides at no charge as described in this subsection, the Department of Education shall provide reimbursement pursuant to ORS 327.545 (2).

      (2)(a) If a school or school district does not offer reimbursable breakfasts or lunches as described in subsection (1) of this section, the school district must ensure that each school of the school district:

      (A) Offers lunch at no charge to students from households with incomes that do not exceed 300 percent of the federal poverty guidelines.

      (B) Offers breakfast at no charge to students from households with incomes that do not exceed 300 percent of the federal poverty guidelines, if breakfast must be offered pursuant to ORS 327.535.

      (b) For each breakfast or lunch that a school or school district provides at no charge as described in this subsection, the Department of Education shall provide reimbursement pursuant to ORS 327.545 (3).

      (3) Notwithstanding subsections (1) and (2) of this section, a school or school district is not required to provide breakfast or lunch at no charge to students if the Department of Education has insufficient funds to provide reimbursement pursuant to ORS 327.545 (2) or (3). The State Board of Education shall adopt rules that describe:

      (a) The method for determining when the department has insufficient funds;

      (b) The content and timing of the notice to be provided to school districts when the department determines that the department has insufficient funds; and

      (c) The procedures the school or school district must follow upon receiving notice of insufficient funds. [2015 c.718 §1; 2021 c.119 §1]

 

      Note: 327.531 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.535 Participation in school breakfast program; accessibility of breakfast; rules. (1) As used in this section, “eligible student” means a student who is eligible for free or reduced price meals under the United States Department of Agriculture’s National School Lunch Program or School Breakfast Program.

      (2) A school district may make breakfast accessible at any school site and shall make breakfast accessible if required by this section.

      (3) Subject to subsections (4) and (5) of this section, a school district that provides lunch at any school site shall make breakfast accessible as part of a breakfast program if 25 percent or more of the students at the school site are eligible students or the school site qualifies for assistance under Chapter I of Title I of the federal Elementary and Secondary Education Act of 1965.

      (4) A school district that makes breakfast accessible as provided under subsection (3) of this section may apply to the Department of Education for a waiver for all or for particular grade levels if the school district is financially unable to implement a breakfast program. The department may grant a waiver to the school district for a period not to exceed two years, after which the school district must reestablish its claim of financial hardship if the waiver is to be extended.

      (5) If the per meal federal reimbursement for the breakfast program falls below the 1991 reimbursement levels, a school district may elect to discontinue the program until federal funding is restored to those levels. No waiver is required for such election.

      (6) A school district that makes breakfast accessible at any school site shall make breakfast accessible at that school site at no charge as provided by ORS 327.531 (1) or (2). The department shall provide reimbursement to the school district for each breakfast provided at no charge as provided by ORS 327.545.

      (7)(a) Except as provided by subsection (8) of this section, a school district that makes breakfast accessible at a school site may choose to make breakfast accessible at that school site after the beginning of the school day.

      (b) Time spent by students consuming breakfast is considered instructional time when students consume breakfast in the students’ classroom and instruction is being provided while students are consuming breakfast. No more than 15 minutes may be considered instructional time when students are consuming breakfast.

      (8)(a) If 70 percent or more of the students at a school site are eligible students, the school district must make breakfast accessible at that school site after the beginning of the school day.

      (b) A school district that is required to make breakfast accessible as prescribed by paragraph (a) of this subsection must ensure that breakfast is:

      (A) Accessible to all students after the beginning of the school day, regardless of grade or arrival time; and

      (B) Provided at no charge to all students, regardless of whether a student is an eligible student.

      (c) The department shall provide technical assistance to school districts to meet the requirements of this subsection. Technical assistance may include the development of breakfast delivery models.

      (d) Notwithstanding paragraph (a) of this subsection, if a school district can demonstrate that 70 percent or more of the eligible students at a school site regularly receive breakfast at the school site without the school district complying with paragraph (a) of this subsection, the school district is not required to comply with paragraph (a) of this subsection.

      (9)(a) The department may award grants or enter into contracts to enable school districts to make breakfast accessible as required under subsection (8) of this section. Each grant or contract may not exceed $5,000 per school site and must be used to purchase or upgrade necessary equipment required to provide breakfast after the beginning of the school day.

      (b) The department may enter into a contract with a public or private entity for the purposes of the entity providing:

      (A) Technical assistance to applicants for and recipients of grants; and

      (B) Administration of the grant program.

      (10) The State Board of Education may adopt any rules necessary for the implementation of this section. [1991 c.500 §1; 2009 c.885 §49; 2015 c.634 §1; 2019 c.122 §26; 2021 c.119 §2; 2021 c.350 §8; 2023 c.570 §3]

 

      327.537 Requirements for providing reimbursable meals; prohibitions and requirements when student owes money. (1) A school district that makes meals accessible to students at school sites under the United States Department of Agriculture’s National School Lunch Program or School Breakfast Program:

      (a) Must provide a United States Department of Agriculture reimbursable meal to a student who requests the meal:

      (A) Unless the student’s parent or guardian has provided written permission to the school district to withhold a meal from the student; and

      (B) Regardless of whether the student has money to pay for the meal or owes money for meals; and

      (b) May not require that a student throw away a meal after the meal has been served because of the student’s inability to pay for the meal or because money is owed for meals.

      (2) If a student owes money for five or more meals, a school district shall:

      (a) Determine if the student has been identified as being categorically eligible for free school meals and can be directly certified without application;

      (b) If the student has not been identified as described in paragraph (a) of this subsection, make at least two attempts to contact the student’s parent or guardian to have the parent or guardian fill out an application to determine if the student is eligible for free or reduced price lunches under the United States Department of Agriculture’s current Income Eligibility Guidelines; and

      (c) If the student is not eligible or the parent or guardian does not fill out an application as described in paragraph (b) of this subsection, make reasonable efforts to contact the parent or guardian and to offer assistance filling out an application, if appropriate.

      (3) A school district may not:

      (a) Publicly identify or stigmatize a student who cannot pay for a meal or who owes money for a meal by requiring that the student wear a wristband, hand stamp or other identifying marker or by serving the student an alternative meal; or

      (b) Require a student who cannot pay for a meal or who owes money for a meal to do chores or other work to pay for meals, unless all other students do similar chores or work regardless of whether money is owed for meals.

      (4)(a) A school district shall direct communications about amounts owed by a student for meals to the student’s parent or guardian and not to the student.

      (b) Nothing in this subsection prohibits a school district from sending home a letter with a student addressed to the parent or guardian of the student.

      (5) A school district may not require a parent or guardian to pay fees or costs from collection agencies hired to collect moneys owed for meals. [2017 c.684 §1]

 

      Note: 327.537 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.540 School after-school meal and snack program; grants; rules. (1) The Department of Education shall provide assistance to school districts, government agencies and community groups to encourage participation in the United States Department of Agriculture’s program that provides meals and snacks at at-risk after-school care centers.

      (2) In addition to the assistance provided under subsection (1) of this section, the department may award grants to school districts, government agencies and community groups to encourage participation in the United States Department of Agriculture’s program that provides meals and snacks at at-risk after-school care centers. Each grant may not exceed $20,000 and must be used to:

      (a) Purchase or upgrade necessary equipment and services required to provide food service and meet sanitation requirements;

      (b) Make any payment necessary to comply with sanitation requirements that may be required prior to approval; or

      (c) Fund participant outreach activities and materials and necessary enrichment activities and materials.

      (3) The department may enter into a contract with a public or private entity for the purposes of the entity providing:

      (a) Technical assistance to applicants for and recipients of grants; and

      (b) Administration of the grant program.

      (4) The State Board of Education may adopt any rules necessary for the administration of this section. [2011 c.711 §1; 2014 c.10 §2]

 

      Note: 327.540 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.545 Reimbursement amounts for school districts that provide reimbursable meals; rules. (1) For school districts with schools that provide United States Department of Agriculture reimbursable meals to students as described in ORS 327.531 and 327.535, the Department of Education shall reimburse the school districts for costs incurred by the school districts in providing the meals. The amounts of the reimbursements may not exceed the amounts prescribed by subsections (2) and (3) of this section.

      (2) For schools that offer reimbursable breakfast and lunch at no charge to all students of the school without consideration of individual eligibility for free or reduced price meals as described in ORS 327.531 (1), the amount of reimbursements provided under this section may not exceed the difference between:

      (a) The free reimbursement rate established by the United States Department of Agriculture for reimbursable meals; and

      (b) Any amounts otherwise reimbursed or paid by state, federal or other sources.

      (3) For schools that offer reimbursable breakfast and lunch at no charge to students from households with incomes that do not exceed 300 percent of the federal poverty guidelines as described in ORS 327.531 (2), the amount of reimbursements provided under this section may not exceed the difference between:

      (a) The free reimbursement rate established by the United States Department of Agriculture for reimbursable meals; and

      (b) Any amounts otherwise reimbursed or paid by state, federal or other sources.

      (4) The State Board of Education may adopt any rules necessary for making reimbursements under this section. [2019 c.122 §30; 2021 c.119 §3; 2021 c.350 §9]

 

      327.548 Hunger Free Schools Account. (1) The Hunger Free Schools Account is established in the State Treasury, separate and distinct from the General Fund.

      (2) Moneys in the Hunger Free Schools Account are continuously appropriated to the Department of Education for the purpose of making reimbursements to school districts under ORS 327.545. [2019 c.122 §32]

 

      Note: 327.548 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.555 [1953 c.273 §2; repealed by 1959 c.654 §3]

 

      327.560 [1953 c.273 §3; repealed by 1959 c.654 §3]

 

      327.565 [1953 c.273 §4; repealed by 1959 c.654 §3]

 

      327.570 [1953 c.273 §5; repealed by 1959 c.654 §3]

 

      327.575 [1953 c.273 §6; repealed by 1959 c.654 §3]

 

      327.605 [Amended by 1959 c.654 §1; 1961 c.624 §5; repealed by 1965 c.100 §456]

 

      327.610 [Repealed by 1965 c.100 §456]

 

FEDERAL AID TO EDUCATION

 

      327.615 State Treasurer as trustee of funds. The State Treasurer shall serve as trustee of any federal aid to education funds apportioned to the State of Oregon.

 

      327.620 Review of accounts affecting federal funds. The Oregon Department of Administrative Services shall cause a review to be made of the accounts and financial affairs of the State Board of Education, the Superintendent of Public Instruction and the Department of Education affecting any funds acquired from the federal government to aid education, in the same manner and under the same conditions as provided by law for the review of state departments and institutions. [Amended by 1975 c.614 §10; 1989 c.491 §12]

 

      327.625 [Repealed by 1965 c.100 §456]

 

      327.630 [Amended by 1961 c.624 §6; repealed by 1965 c.100 §456]

 

      327.635 Labor standards required on federally financed school construction. The Superintendent of Public Instruction shall provide, in the construction of school facilities financed in part through federal grants, for the enforcement of labor standards not less beneficial to employees on such projects than those required under sections 1 and 2 of the Act of Congress of August 30, 1935, as amended.

 

      327.640 [Repealed by 1965 c.100 §456]

 

FINANCING OF STATE AND FEDERAL REQUIREMENTS

 

      327.645 Financing of programs mandated by state and federal programs. The Legislative Assembly recognizes that:

      (1) Various programs adopted by the Legislative Assembly and by various state and federal agencies have fiscal and revenue impact on school districts.

      (2) To the greatest extent possible, state government should pay an appropriate share of expenses incurred by the districts as the result of mandates from the Legislative Assembly and state agencies. [1989 c.970 §1]

 

      327.655 [Amended by 1961 c.624 §7; repealed by 1965 c.100 §456]

 

      327.660 [1963 c.570 §2; 1965 c.100 §41; 1983 c.740 §100; repealed by 1985 c.388 §3]

 

EDUCATION LOTTERY BOND PROGRAM

 

      327.700 Definitions for ORS 327.700 to 327.711. As used in ORS 327.700 to 327.711, unless the context requires otherwise:

      (1) “State education lottery bonds” means the bonds authorized to be issued under ORS 327.711 for the purpose of financing state education projects.

      (2) “State education projects” means projects for instructional training and the acquisition, construction, improvement, remodeling, maintenance or repair of public school facilities in the State of Oregon, including but not limited to land, site preparation costs, permanent or portable buildings and equipment, telecommunications equipment, computers, software and related technology, textbooks, library books, furniture and furnishings, vehicles, costs of planning for bond issues and capital improvements, the payment of debt service on obligations, other than general obligation bonds, issued for such projects and holding in reserve for any of the purposes described in this subsection. [1997 c.612 §3; 1999 c.44 §10; 1999 c.1066 §13]

 

      327.705 Purpose of ORS 327.700 to 327.711. The Legislative Assembly declares that the purpose of ORS 327.700 to 327.711 is to authorize lottery bonds for state education projects. The lottery bonds authorized by ORS 327.700 to 327.711 shall be issued pursuant to ORS 286A.560 to 286A.585. The obligation of the State of Oregon with respect to the lottery bonds and with respect to any grant agreement or other commitment authorized by ORS 327.700 to 327.711, 327.731, 348.696 and 777.277 shall at all times be restricted to the availability of unobligated net lottery proceeds, proceeds of lottery bonds and any other amounts specifically committed by ORS 286A.560 to 286A.585. Neither the faith and credit of the State of Oregon nor any of its taxing power shall be pledged or committed to the payment of lottery bonds or any other commitment of the State of Oregon authorized by ORS 327.700 to 327.711. [1997 c.612 §1; 1999 c.44 §11; 2007 c.783 §127]

 

      327.708 Legislative findings. The Legislative Assembly finds that:

      (1) The financing of the costs of state education projects accomplishes the purpose of financing public education in Oregon, as well as having the additional effect of creating jobs and furthering economic development in Oregon by:

      (a) Maintaining and increasing the utility, effectiveness and capacity of public education facilities and public education technology and ensuring their availability to Oregon students; and

      (b) Creating employment opportunities in this state through the funding of capital improvement and maintenance projects on which workers will be employed.

      (2) Based on the findings made in this section, the use of the net proceeds from the operation of the Oregon State Lottery to fund state education projects and to pay state education lottery bonds is an appropriate use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510. [1997 c.612 §2; 1999 c.44 §12]

 

      327.711 Payment of debt service; issuance of bonds; School Capital Construction, Maintenance and Technology Fund. (1) The Legislative Assembly may pay state education lottery bond debt service after the 1997-1999 biennium from earnings on the Education Stability Fund. However, no lien or pledge of those earnings shall be made to secure the lottery bonds, and the State of Oregon shall have no legal obligation to pay the lottery bonds from the earnings on the Education Stability Fund. Any earnings from the Education Stability Fund that are provided by the Legislative Assembly and credited to the Lottery Bond Fund shall be credited against, and shall reduce, the unobligated net lottery proceeds that are required by ORS 286A.576 (2)(a) and (b) subsequently to be credited to the Lottery Bond Fund in that fiscal year.

      (2) State education lottery bonds shall be issued only at the request of the Superintendent of Public Instruction. State education lottery bonds may be issued in an amount sufficient to provide no more than $150 million of net proceeds to pay costs of state education projects, plus the amounts required for bond-related costs.

      (3) The School Capital Construction, Maintenance and Technology Fund is established in the State Treasury, separate and distinct from the General Fund. The net proceeds from the sale of the state education lottery bonds that are available to pay costs of state education projects shall be credited to the School Capital Construction, Maintenance and Technology Fund. Investment earnings received on amounts in the School Capital Construction, Maintenance and Technology Fund shall be credited to the School Capital Construction, Maintenance and Technology Fund. All moneys from time to time credited to the School Capital Construction, Maintenance and Technology Fund, including any investment earnings, are appropriated continuously to the Department of Education only for distribution to school districts pursuant to ORS 327.731 and for payment of the bond-related costs that are allocable to state education lottery bonds. Amounts in the School Capital Construction, Maintenance and Technology Fund shall be disbursed upon the written request of the Superintendent of Public Instruction to school districts for state education projects pursuant to ORS 327.731, and upon the written request of the Director of the Oregon Department of Administrative Services to pay for bond-related costs that are allocable to state education lottery bonds. [1997 c.612 §4; 1999 c.44 §13; 2002 s.s.3 c.6 §15]

 

      327.715 [1997 c.612 §5; repealed by 1999 c.44 §29]

 

      327.718 [1997 c.612 §6; repealed by 1999 c.44 §29]

 

      327.721 [1997 c.612 §7; repealed by 1999 c.44 §29]

 

      327.724 [1997 c.612 §§8,8a; repealed by 1999 c.44 §29]

 

      327.727 [1997 c.612 §8c; repealed by 1999 c.44 §29]

 

      327.731 Education project grants; use; amount. (1) Subject to rules of the State Board of Education, the Superintendent of Public Instruction shall distribute a share of moneys in the School Capital Construction, Maintenance and Technology Fund to school districts as education project grants. The education project grants shall be distributed in one payment each distribution year. The education project grants shall be used for any state education project, as defined in ORS 327.700.

      (2) Each school district’s education project grant = the district’s extended ADMw for the distribution year ´ (the total amount available for the grants in each distribution year ¸ the total statewide extended ADMw in the distribution year).

      (3) Each school district shall deposit the amounts it receives as an education project grant in a separate account, and shall apply amounts in that account to pay for costs of state education projects or shall hold amounts in that account in reserve and apply them to pay costs of future state education projects.

      (4) School districts receiving education project grants from the School Capital Construction, Maintenance and Technology Fund shall, if so directed by the Oregon Department of Administrative Services, take any action specified by the Oregon Department of Administrative Services that is necessary to maintain the excludability of lottery bond interest from gross income under the United States Internal Revenue Code. [1997 c.612 §14; 1999 c.1066 §14]

 

      327.736 [1997 c.874 §1; repealed by 1999 c.44 §29]

 

STRATEGIC INVESTMENTS

 

      327.800 Goals of strategic investments; requirements; rules. (1) The State Board of Education shall identify and make recommendations to the Legislative Assembly about programs that make strategic investments to:

      (a) Advance the educational goals of this state, as described in ORS 350.014;

      (b) Improve the employability of graduates from Oregon public schools;

      (c) Close the achievement gap that exists between historically underserved student groups, as defined by the board by rule;

      (d) Assist public education in all regions of this state;

      (e) Promote collaboration and alignment among early childhood service providers, school districts, community colleges, public universities and employers;

      (f) Leverage private, public and community resources;

      (g) Engage parents and child care providers, support families and motivate students;

      (h) Develop and disseminate evidence-based models and best practices that are likely to improve student outcomes;

      (i) Collect data to monitor student progress; and

      (j) Establish networks that allow for the replication of successful practices across this state.

      (2) The Department of Education shall distribute any moneys received for strategic investments under this section. Distributions may be made to school districts, education service districts, post-secondary institutions of education, nonprofit organizations, providers of early childhood services, tribes of this state and other entities. Distributions of moneys must advance the purposes set forth in ORS 327.815 and 327.820 or other purposes that meet the goals specified in subsection (1) of this section.

      (3) Any recipient of moneys distributed as a strategic investment must provide separate accounting for the moneys and may use the moneys only for the purpose for which the moneys are provided.

      (4)(a) The State Board of Education shall establish requirements for the programs implemented under this section that are consistent with this section and with ORS 327.815 and 327.820.

      (b) The board shall develop timelines, performance measures and other requirements related to the accumulation and evaluation of data collected in relation to a program that receives moneys as a strategic investment. The performance measures shall include progress toward the goals established in ORS 350.014 and other key student education outcomes established by the board.

      (5) The State Board of Education and the Early Learning Council may adopt any rules necessary for the agencies they oversee to perform any of the duties assigned to them under this section. Any rules adopted by the Early Learning Council must be consistent with this section and actions taken by the State Board of Education to implement this section. [2013 c.660 §1; 2013 c.660 §5; 2015 c.774 §§17,67,67a; 2023 c.534 §17]

 

      Note: 327.800 to 327.820 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.810 [2013 c.660 §2; 2013 c.660 §6; 2015 c.774 §§18,68,68a; repealed by 2023 c.534 §16]

 

      327.815 Guidance and Support for Post-Secondary Aspirations Program; strategic investments for program. (1) The State Board of Education shall establish the Guidance and Support for Post-Secondary Aspirations Program to:

      (a) Increase the number of students in the ninth grade who are making satisfactory progress toward a high school diploma, a modified diploma or an extended diploma; and

      (b) Increase the number of students who earn a high school diploma, a modified diploma or an extended diploma and who enroll in a post-secondary institution of higher education.

      (2) To accomplish the purposes of the Guidance and Support for Post-Secondary Aspirations Program, the State Board of Education shall identify programs for the distribution of moneys by the Department of Education for strategic investments that advance at least one of the following missions:

      (a) Supporting comprehensive systems of monitoring and support for struggling students.

      (b) Ensuring that middle and high school students who had not considered enrolling in post-secondary education are directed toward, and able to access, post-secondary education opportunities that match their interests and abilities.

      (3) In addition to moneys distributed as provided by subsection (2) of this section, the Department of Education may distribute strategic investment moneys for any of the following purposes:

      (a) To implement comprehensive systems for monitoring progress and providing individualized planning, mentoring, tutoring or other support services to students in grades 6 through 10 who are not making satisfactory progress toward a high school diploma, a modified diploma or an extended diploma; or

      (b) To increase access for underserved students to post-secondary institutions by paying for first-year college courses or accelerated college credit programs. [2013 c.660 §3; 2013 c.660 §7; 2015 c.366 §§78,79; 2015 c.774 §§19,69,69a]

 

      Note: See note under 327.800.

 

      327.820 Connecting to the World of Work Program; strategic investments for program. (1) The State Board of Education shall establish the Connecting to the World of Work Program to:

      (a) Increase students’ proficiency in science, technology, engineering and mathematics; and

      (b) Connect students to the world of work.

      (2) To accomplish the purposes of the Connecting to the World of Work Program, the State Board of Education shall identify programs for the distribution of moneys by the Department of Education for strategic investments that advance the following missions:

      (a) Collaborating with other public entities to develop and implement a long-term strategy that advances state educational goals related to science, technology, engineering and mathematics.

      (b) Providing investments in programs that engage underserved students in science, technology, engineering or mathematics or in career and technical education.

      (c) Developing consortiums of school districts, education service districts and post-secondary institutions of higher education committed to developing innovative and flexible pathways for students in grades 6 through 12 and in community colleges.

      (3) In addition to moneys distributed as provided by subsection (2) of this section, the Department of Education may distribute strategic investment moneys for any of the following purposes:

      (a) Creating regional networks, or expanding existing regional networks, to support science, technology, engineering and mathematics and career and technical education;

      (b) Increasing learning opportunities in science, technology, engineering and mathematics, the arts and career and technical education; or

      (c) Designing and delivering individualized, innovative and flexible ways of delivering content, awarding high school and college credit and providing development education for students in high school or in the first two years of post-secondary education. [2013 c.660 §4; 2013 c.660 §8; 2015 c.774 §§20,70,70a]

 

      Note: See note under 327.800.

 

EARLY LITERACY SUCCESS INITIATIVE

 

(Generally)

 

      327.825 Definitions. As used in ORS 327.825 to 327.845:

      (1) “Early elementary grades” means any grade from prekindergarten through grade three.

      (2) “Elementary school” means a school of a school district, or a public charter school, with students in early elementary grades.

      (3) “High-dosage tutoring” means one-on-one tutoring or tutoring in small groups, as determined by rule of the State Board of Education, that:

      (a) Is provided in addition to daily instruction;

      (b) Is provided two or more times each week over at least a 10-week period; and

      (c) Uses a research-aligned tutoring model that is administered in a culturally responsive manner and that is combined with the training necessary for tutors to implement the model effectively.

      (4) “Prekindergarten” means a preschool or prekindergarten program that is:

      (a) Provided by a school district or public charter school; or

      (b) Delivered in partnership between a school district and another organization.

      (5) “Preschool” means a high-quality program that serves children at least three years of age but not older than five years of age.

      (6) “Public charter school” means a public charter school that:

      (a) Is established under ORS chapter 338; and

      (b) Is not a virtual public charter school, as defined in ORS 338.005.

      (7) “Qualified tutor” means an individual who is trained to implement a program providing high-dosage tutoring.

      (8) “Research-aligned literacy strategies” means strategies that:

      (a) Are literacy focused;

      (b) Are culturally responsive and relevant to diverse learners;

      (c) Are based on long-term research derived from the science of reading and writing; and

      (d) Apply instructional practices that are developmentally appropriate and specifically designed for students with disabilities and students who are English language learners.

      (9) “Science of reading and writing” means:

      (a) The convergence of findings from research on reading and writing processes, development and instruction; and

      (b) The teaching of phonemic awareness, phonics, fluency, vocabulary and comprehension through explicit and systematic instruction that can be differentiated to meet the needs of individual learners through developmentally appropriate practices.

      (10) “Student groups that have historically experienced academic disparities” means:

      (a) Economically disadvantaged students, as determined under rules adopted by the State Board of Education;

      (b) Students from racial or ethnic groups that have historically experienced academic disparities, as determined under rules adopted by the State Board of Education;

      (c) Students with disabilities;

      (d) Students who are English language learners;

      (e) Students who are foster children, as defined in ORS 30.297;

      (f) Students who are homeless, as determined under rules adopted by the State Board of Education;

      (g) Students who attend an elementary school that:

      (A) Is identified for comprehensive support and improvement or for targeted support and improvement under the federal Every Student Succeeds Act (P.L. 114-95, 129 Stat. 1802); or

      (B) Qualifies for assistance under Title I of the federal Elementary and Secondary Education Act of 1965; or

      (h) Any other student groups that have historically experienced academic disparities, as determined under rules adopted by the State Board of Education by rule. [2023 c.534 §1]

 

      Note: 327.825 to 327.845 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.827 Early Literacy Success Initiative. (1) The Early Literacy Success Initiative is established by ORS 327.825 to 327.845.

      (2) The purposes of the initiative are to:

      (a) Increase early literacy for children from birth to grade three;

      (b) Reduce early literacy academic disparities for student groups that have historically experienced academic disparities;

      (c) Increase support to parents and guardians to enable them to be partners in the development of their children’s literacy skills and knowledge; and

      (d) Increase access to early literacy support that is research-aligned, culturally responsive, student-centered and family- centered.

      (3) The purposes of the initiative shall be accomplished through:

      (a) The Early Literacy Success School Grant, as provided by ORS 327.829 to 327.837;

      (b) The Birth Through Five Literacy Plan, as provided by ORS 327.839 and 327.841; and

      (c) The Early Literacy Success Community Grant, as provided by ORS 327.843 and 327.845. [2023 c.534 §2]

 

      Note: See note under 327.825.

 

(Early Literacy Success School Grant)

 

      327.829 Uses of Early Literacy Success School Grants; rules. (1) As part of the Early Literacy Success Initiative, the Department of Education shall establish and administer the Early Literacy Success School Grant program.

      (2) Under the program, the department shall award annual grants to school districts and to public charter schools that are elementary schools. The grants must be used to implement the purposes of the Early Literacy Success Initiative, as identified in ORS 327.827, by funding the following:

      (a) The provision of professional development and coaching in research-aligned literacy strategies to teachers and administrators in early elementary grades to improve early literacy instruction.

      (b) The provision of extended learning programs that use research-aligned literacy strategies and that are made available to students in early elementary grades by licensed teachers or by qualified tutors. The extended learning programs may include:

      (A) Home-based summer reading activities for students who need additional support and enrichment; and

      (B) An intensive summer school program for students who need the most additional support and who receive at least 60 hours of direct literacy instruction by an instructional assistant or a licensed teacher trained in research-aligned literacy strategies.

      (c) The provision of high-dosage tutoring to students in early elementary grades that integrates reading and writing and that is delivered by a qualified tutor using developmentally appropriate practices.

      (d) The adoption of curricula that uses research-aligned literacy strategies and the implementation of that curricula. Funding under this paragraph may be used to:

      (A) Purchase curricula and materials that are culturally relevant; or

      (B) Provide professional development and time for teachers and administrators to attend training related to the curricula.

      (e) The employment of literacy specialists, coaches or interventionists.

      (3) A grant received under ORS 327.833 may be used only for purposes identified in subsection (2) of this section for the benefit of children and students in prekindergarten through grade three.

      (4) The State Board of Education may adopt any rules necessary for the administration of grants under ORS 327.829 to 327.837. Rules shall, to the greatest extent practicable, prioritize schools with the lowest rates of proficiency in literacy and assist in the operational alignment of grant programs and improvement strategies administered by the Department of Education, including:

      (a) Grants distributed from the Student Investment Account, as provided by ORS 327.175 to 327.235;

      (b) Apportionments made under the High School Graduation and College and Career Readiness Act, as provided by ORS 327.853 to 327.895;

      (c) District continuous improvement plans, as described in ORS 329.095. [2023 c.534 §3]

 

      Note: See note under 327.825.

 

      327.831 Eligibility for grants; application requirements; department duties. (1) Any school district or public charter school that is an elementary school may apply for a noncompetitive grant under the Early Literacy Success School Grant program as provided by ORS 327.829 to 327.837.

      (2) Grants awarded under ORS 327.833 are not competitive, but a school district or public charter school must comply with the requirements prescribed by ORS 327.829 to 327.837 and by rules adopted by the State Board of Education under ORS 327.829 to 327.837.

      (3) To be eligible for a grant under ORS 327.833, a school district or public charter school must submit to the Department of Education an application that includes:

      (a) An early literacy success plan. The plan must be updated every two years and must establish four-year goals for the school district or public charter school to achieve for making progress in satisfying the purposes of the Early Literacy Success Initiative, as described in ORS 327.827. The plan must include:

      (A) A review of the early literacy program, including the English language arts curricula used by elementary schools of the school district or by the public charter school, using criteria established by the department;

      (B) A student growth assessment for all students and disaggregated by student groups that have historically experienced academic disparities; and

      (C) A description of how the school district or the public charter school will provide:

      (i) Professional development and coaching, as described in ORS 327.829 (2)(a);

      (ii) Extended learning programs, as described in ORS 327.829 (2)(b); and

      (iii) High-dosage tutoring, as described in ORS 327.829 (2)(c).

      (b) An accurate, up-to-date inventory of literacy assessments, tools, curricula and digital resources used by the school district or public charter school to support literacy in early elementary grades. The school district or public charter school must:

      (A) Ensure that the literacy assessments, tools, curricula and digital resources of the inventory are based on research-aligned literacy strategies and are formative, diagnostic and culturally responsive; and

      (B) Include in the inventory the date of adoption of the literacy assessment, tool, curriculum or digital resource.

      (c) A plan for communication efforts to support engagement between:

      (A) School districts;

      (B) Elementary schools of the school district;

      (C) Families of the school district; and

      (D) Members of the school district community.

      (4) An application described in subsection (3) of this section must be presented and approved by the school district board or the governing body of the public charter school at an open meeting following:

      (a) Oral presentation of the application by an administrator of the school district or public charter school to the school district board or the governing body of the public charter school; and

      (b) Opportunity for the public to comment on the application.

      (5) To the greatest extent practicable, a school district or public charter school shall align an early literacy success plan developed under this section with the plan developed for distributions from the Student Investment Account as provided by ORS 327.185 (7).

      (6) For the purposes of this section, the department shall:

      (a) Establish timelines and forms for applications submitted under this section;

      (b) Evaluate applications before awarding grant funds;

      (c) Assist school districts and public charter schools in prioritizing early literacy investments with funds received under this section; and

      (d) Provide technical assistance to school districts and public charter schools in developing and implementing the early literacy success plan required for the application. [2023 c.534 §4]

 

      Note: See note under 327.825.

 

      327.833 Grant awards; rules. (1) The Department of Education shall award an Early Literacy Success School Grant to an eligible school district or public charter school that applies for a grant as provided by ORS 327.831. Moneys received under this section must be used as described in ORS 327.829 (2).

      (2) A school district with an average daily membership, as defined in ORS 327.006, of 50 or less shall receive a minimum grant award under this section.

      (3) The State Board of Education shall adopt any rules necessary for the distribution of grants under this section. [2023 c.534 §5]

 

      Note: See note under 327.825.

 

      327.835 Reporting requirements. (1) Each recipient of an Early Literacy Success School Grant under ORS 327.833 must submit an annual report to the Department of Education.

      (2) The report required under this section must include:

      (a) The school district’s or public charter school’s progress toward achieving the goals established in the early literacy success plan, as described in ORS 327.831 (3);

      (b) An inventory of literacy assessments, tools, curricula and digital resources used by the school district or the public charter school to support literacy;

      (c) Evidence that the literacy assessments, tools, curricula and digital resources in the inventory described in paragraph (b) of this subsection are used with fidelity to research-aligned literacy strategies;

      (d) Evidence that teachers and administrators are provided with professional development plans for using and implementing, with fidelity to research-aligned literacy strategies, the literacy assessments, tools, curricula and digital resources in the inventory described in paragraph (b) of this subsection;

      (e) The number and percentage of teachers for early elementary grades receiving professional development and coaching as described in ORS 327.829 (2)(a), disaggregated by grade level;

      (f) The number and percentage of students participating in early literacy extended learning programs, as described in ORS 327.829 (2)(b), at the school and the school district level and their outcomes disaggregated by student group and by grade level;

      (g) The number and percentage of students participating in high-dosage tutoring, as described in ORS 327.829 (2)(c), and their outcomes disaggregated by student group and by grade level; and

      (h) The curricula being used by the school district or public charter school.

      (3) Prior to December 31 of each year, the department shall:

      (a) Submit to the interim committees of the Legislative Assembly related to education a summary of the Early Literacy Success School Grant program, which must take into consideration the reports submitted under subsection (1) of this section; and

      (b) Publish an online, easily accessible inventory of literacy assessments, tools, curricula and digital resources being used to support early literacy in early elementary grades. [2023 c.534 §6]

 

      Note: See note under 327.825.

 

      327.837 Monitoring by department; corrective action plans. (1) Based on the reports submitted under ORS 327.835, the Department of Education shall monitor a school district’s or a public charter school’s progress toward achieving the goals established in the early literacy success plan, as described in ORS 327.831 (3).

      (2) The department shall intervene when a school district or public charter school does not meet the goals established in the early literacy success plan.

      (3) When the department intervenes, as provided by subsection (2) of this section, the department:

      (a) Shall assist the school district or the public charter school in developing a corrective action plan; and

      (b) May retain any or all of the amount the school district or public charter school would have received as a distribution under ORS 327.833 and may use a portion of the amount retained to prepare and assist the school district or the public charter school in implementing the corrective action plan.

      (4) An intervention and corrective action plan shall continue until the school district or public charter school makes sufficient and sustained progress toward achieving the goals established in the early literacy success plan. The department shall determine when sufficient and sustained progress has been achieved.

      (5) If a school district or public charter school continues to fail to make progress toward achieving the goals established in the early literacy success plan, the department may take additional action, including not allowing for the distribution to the school district or public charter school of any additional moneys under ORS 327.833. [2023 c.534 §7]

 

      Note: See note under 327.825.

 

      Note: Section 8, chapter 534, Oregon Laws 2023, provides:

      Sec. 8. (1) The Department of Education shall establish timelines for the submission of applications for an Early Literacy Success School Grant under section 4 of this 2023 Act [327.831]. The timelines must allow for the first distributions of grants to school districts and public charter schools under section 5 of this 2023 Act [327.833] to be made for the 2023-2024 school year.

      (2) Notwithstanding section 3 (3) of this 2023 Act [327.829 (3)], for the 2023-2024 and 2024-2025 school years only, a grant received under section 5 of this 2023 Act for the purposes described in section 3 (2) of this 2023 Act may be used for the benefit of students in grades four and five in addition to being used for the benefit of children and students in prekindergarten through grade three. For the purpose of this subsection, grant moneys used for the benefit of students in grades four and five must be:

      (a) Limited as follows:

      (A) For the 2023-2024 school year, no more than 20 percent of the total amount received under section 5 of this 2023 Act for the 2023-2024 school year may be used for the benefit of students in grades four and five; and

      (B) For the 2024-2025 school year, no more than 10 percent of the total amount received under section 5 of this 2023 Act for the 2024-2025 school year may be used for the benefit of students in grades four and five.

      (b) Matched by moneys otherwise available to the school district or the public charter school.

      (3) Notwithstanding section 4 (3)(a) of this 2023 Act, the requirement that an application include four-year goals first applies to applications submitted by a school district or a public charter school on or after January 1, 2025.

      (4) Notwithstanding section 6 (3)(a) of this 2023 Act [327.835 (3)(a)], the first report required to be submitted by the Department of Education under section 6 (3)(a) of this 2023 Act must be submitted no later than December 31, 2024. [2023 c.534 §8]

 

(Birth Through Five Literacy Plan)

 

      327.839 Birth Through Five Literacy Plan; purposes; grants; reports. (1) As part of the Early Literacy Success Initiative, the Department of Early Learning and Care shall establish and implement the Birth Through Five Literacy Plan.

      (2) The purposes of the plan are to:

      (a) Expand culturally specific early literacy programs for children from birth through five years of age by:

      (A) Encouraging family and caregiver engagement; and

      (B) Providing research-aligned, developmentally appropriate professional training and coaching for direct service staff in early literacy.

      (b) Promote the capacity of programs that engage parents and children from birth through five years of age in early literacy and that are available equitably and statewide.

      (c) Expand and develop language revitalization efforts by federally recognized Indian tribes in this state.

      (3) Under the plan, the department shall distribute grants from the Birth Through Five Literacy Fund that align to the outcomes and indicators that exist across kindergarten readiness and culturally specific parent and child support programs.

      (4) No later than December 31 of each year, the department shall submit to the interim committees of the Legislative Assembly related to early childhood a progress report on the Birth Through Five Literacy Plan. [2023 c.534 §9]

 

      Note: See note under 327.825.

 

      Note: Section 10, chapter 534, Oregon Laws 2023, provides:

      Sec. 10. Notwithstanding section 9 (4) of this 2023 Act [327.839 (4)], the first report required to be submitted by the Department of Early Learning and Care under section 9 (4) of this 2023 Act must be submitted no later than December 31, 2024. [2023 c.534 §10]

 

      327.841 Birth Through Five Literacy Fund. (1) The Birth Through Five Literacy Fund is established in the State Treasury, separate and distinct from the General Fund.

      (2) The Birth Through Five Literacy Fund shall consist of:

      (a) Moneys appropriated or otherwise transferred to the Birth Through Five Literacy Fund by the Legislative Assembly; and

      (b) Other amounts deposited in the fund from any source.

      (3) Moneys in the Birth Through Five Literacy Fund are continuously appropriated to the Department of Early Learning and Care for the Birth Through Five Literacy Plan established under ORS 327.839. [2023 c.534 §11]

 

      Note: See note under 327.825.

 

(Early Literacy Success Community Grant)

 

      327.843 Early Literacy Success Community Grant; purposes; grants; rules. (1) As part of the Early Literacy Success Initiative, the Department of Education shall establish and administer the Early Literacy Success Community Grant program.

      (2) The purposes of the grant program are to:

      (a) Expand culturally and linguistically responsive early literacy programs for children in early elementary grades by:

      (A) Encouraging family and caregiver engagement; and

      (B) Providing research-aligned professional training and coaching for direct service staff in early literacy.

      (b) Develop and implement programs that engage parents and children in early elementary grades in early literacy and that are available equitably and statewide.

      (c) Provide high-dosage tutoring programs and training to tutors to qualify the tutors for instruction in a manner consistent with research-aligned literacy strategies.

      (d) Expand and develop language revitalization efforts by federally recognized Indian tribes in this state.

      (3) Under the program, the department shall distribute grants from the Early Literacy Success Community Grant Fund in accordance with rules adopted by the State Board of Education. Rules adopted under this section must:

      (a) Establish metrics of success;

      (b) Be adopted in consultation with the federally recognized Indian tribes of this state; and

      (c) Align, to the greatest extent practicable, with:

      (A) The purposes of the Early Literacy Success School Grant program established by ORS 327.829 to 327.837;

      (B) District continuous improvement plans, as described in ORS 329.095; and

      (C) Programs related to culturally specific parent and child support. [2023 c.534 §13]

 

      Note: See note under 327.825.

 

      327.845 Early Literacy Success Community Grant Fund. (1) The Early Literacy Success Community Grant Fund is established in the State Treasury, separate and distinct from the General Fund.

      (2) The Early Literacy Success Community Grant Fund shall consist of:

      (a) Moneys appropriated or otherwise transferred to the Early Literacy Success Community Grant Fund by the Legislative Assembly; and

      (b) Other amounts deposited in the fund from any source.

      (3) Moneys in the Early Literacy Success Community Grant Fund are continuously appropriated to the Department of Education for the Early Literacy Success Community Grant program established under ORS 327.843. [2023 c.534 §14]

 

      Note: See note under 327.825.

 

HIGH SCHOOL GRADUATION AND COLLEGE AND CAREER READINESS ACT

 

      Note: 327.850 to 327.895 were enacted as part of Ballot Measure 98 (2016), which included a preamble and subdivision headings. The preamble and subdivision headings have not been included in the Oregon Revised Statutes, but are available by accessing chapter 1, Oregon Laws 2017.

 

      327.850 Short title. ORS 327.853 to 327.895 shall be known as the High School Graduation and College and Career Readiness Act. [2017 c.1 §1]

 

      Note: 327.850 to 327.895 were enacted into law but were not added to or made a part of ORS chapter 327 or any series therein by law. See Preface to Oregon Revised Statutes for further explanation.

 

      327.853 Definitions for Act. As used in ORS 327.853 to 327.895:

      (1) “Chronic absenteeism” means a student has missed 10 percent or more of school days, including excused, nonexcused and disciplinary exclusion, within a school year.

      (2) “English Language Learner” has the meaning given that term in ORS 336.079.

      (3) “High school student” means a student enrolled in grades 9 through 12 or age level equivalent.

      (4) “Program audit” means determining:

      (a) The extent to which the desired results or benefits of a program are being achieved;

      (b) The extent to which the need for or objectives of an ongoing program are necessary or relevant;

      (c) Whether the program complements, duplicates, overlaps or conflicts with other related programs;

      (d) The effectiveness of organizations, programs, activities or functions; and

      (e) Whether the entity that is the subject of the audit has complied with laws and regulations applicable to the program.

      (5) “School district” means:

      (a) A common or union high school district;

      (b) The Oregon School for the Deaf; and

      (c) An educational program under the Youth Corrections Education Program or the Juvenile Detention Education Program, as those terms are defined in ORS 326.695. [2017 c.1 §16; 2017 c.615 §10]

 

      Note: See note under 327.850.

 

      327.856 High School Graduation and College and Career Readiness Fund; amounts available to fund. (1) The High School Graduation and College and Career Readiness Fund is established in the State Treasury, separate and distinct from the General Fund, for the purposes of improving the graduation rates and college and career readiness of all high school students in Oregon. Interest earned by the High School Graduation and College and Career Readiness Fund shall be credited to the General Fund.

      (2)(a) The Legislative Assembly shall appropriate, allocate or otherwise make available to the High School Graduation and College and Career Readiness Fund an amount not less than $800 per high school student per school year.

      (b) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts, grants, donations and other moneys from public and private sources for the purposes of ORS 327.853 to 327.895. Moneys received under this paragraph shall be deposited in the High School Graduation and College and Career Readiness Fund.

      (3) The High School Graduation and College and Career Readiness Fund is continuously appropriated to the Department of Education for the purposes of ORS 327.853 to 327.895. [2017 c.1 §2; 2017 c.615 §1]

 

      Note: See note under 327.850.

 

      327.859 Apportionments to school districts; increases in amounts available to fund. (1)(a) Subject to ORS 327.880 and 327.886, for school years beginning on or after July 1, 2017, the High School Graduation and College and Career Readiness Fund shall be apportioned to each school district based on the extended weighted average daily membership of high school students computed:

      (A) As provided in ORS 327.013 (1)(c), for common or union high school districts.

      (B) By multiplying the average daily membership for students in grades 9 through 12 by 2.0, as calculated for the current school year and the previous school year and using the greater amount, for the Oregon School for the Deaf.

      (C) As provided in ORS 327.026, for an educational program under the Youth Corrections Education Program or the Juvenile Detention Education Program.

      (b) In the event the Department of Education is unable to determine the extended weighted average daily membership of high school students for a school district, the department may determine the average extended weighted average daily membership for all students in the school district and apply the average extended weighted average daily membership to the number of high school students in the school district.

      (2)(a) For school years beginning on or after July 1, 2018, the amount appropriated, allocated or otherwise made available to the fund under ORS 327.856, shall be increased each school year in a biennium by the amount derived from the application of the process in Executive Order 14-14 used to calculate the cost to maintain the current level of service.

      (b) The intent of paragraph (a) of this subsection is to apply the process in Executive Order 14-14 in the event Executive Order 14-14 is canceled, superseded or otherwise made ineffective. [2017 c.1 §3; 2017 c.615 §2]

 

      Note: See note under 327.850.

 

      327.862 Amounts available to fund to be in addition to other amounts available for kindergarten through grade 12 public education. The amounts appropriated, allocated or otherwise made available under ORS 327.856 and apportioned under ORS 327.859 shall be in addition to the total amount the Legislative Assembly would otherwise appropriate, allocate or make available for a biennium for funding kindergarten through grade 12 public education. [2017 c.1 §4]

 

      Note: See note under 327.850.

 

      327.865 Portion of funds for career and technical education. (1) A school district shall use a portion of the funds apportioned under ORS 327.859 to establish or expand career and technical education programs in high schools that are relevant to the job market in the community or region the school district serves.

      (2) For purposes of this section, establishment or expansion of a career and technical education program includes the purchase of equipment, the construction of facilities and the recruitment, licensing, employment and training of personnel to provide career and technical education.

      (3) The portion of funds to be used as described in this section shall be determined as provided by ORS 327.874. [2017 c.1 §5; 2017 c.615 §3]

 

      Note: See note under 327.850.

 

      327.868 Portion of funds for college-level educational opportunities for students in high schools. (1) A school district shall use a portion of the amount apportioned under ORS 327.859 to establish or expand college-level educational opportunities for students in high schools.

      (2) For purposes of this section, the college-level educational opportunities must include:

      (a)(A) Advanced placement, International Baccalaureate or comparable college-level courses; or

      (B) Dual credit and other accelerated college credit programs offered in conjunction with an Oregon community college, public university or other accredited institutions of higher learning or post-high school career schools;

      (b) Assisting students with the selection and successful completion of college-level educational opportunities; and

      (c) The recruitment, licensing, employment and training of personnel to provide college-level educational opportunities for students in all high schools.

      (3) The portion of funds to be used as described in this section shall be determined as provided by ORS 327.874. [2017 c.1 §6; 2017 c.615 §4]

 

      Note: See note under 327.850.

 

      327.871 Portion of funds for dropout-prevention strategies in high schools. (1) A school district shall use a portion of the amount apportioned under ORS 327.859 to establish or expand dropout-prevention strategies in all high schools.

      (2) For purposes of this section, the dropout-prevention strategies must include:

      (a) Implementing activities designed to reduce chronic absenteeism;

      (b) Establishing and maintaining data management systems that provide timely reports on students’ grades, absences and discipline by school and by course;

      (c) Beginning with grade 8, using attendance, course grades, credits earned and disciplinary referrals to identify students at risk of not graduating;

      (d) Beginning in the summer after grade 8, providing academic and social supports for students at risk of not graduating to ensure that the students are on track to graduate by the time the students enter grade 10 and stay on track to graduate after entering grade 10, including such supports as summer programs, additional instructional time before and after school hours, tutoring or small-group instruction during the school day or counseling services; and

      (e) Providing counseling and coaching to provide early exposure for students to employment opportunities and requirements and options for post-secondary education.

      (3) The portion of funds to be used as described in this section shall be determined as provided by ORS 327.874. [2017 c.1 §7; 2017 c.615 §5]

 

      Note: See note under 327.850.

 

      327.874 Requirements for use of moneys received by school districts. (1) A school district must use the amount apportioned under ORS 327.859 to establish or expand programs, opportunities and strategies under ORS 327.865, 327.868 and 327.871 and may not use the amount apportioned to maintain programs, opportunities and strategies established prior to December 8, 2016, except when a use is necessary to replace the loss or expiration of time-limited grants or federal funds.

      (2)(a) The portion of funds that a school district uses for the purposes of ORS 327.865, 327.868 and 327.871 shall be determined as follows:

      (A) If a school district receives less than $100,000 for the school year from an apportionment made under ORS 327.859, the school district may use all of the funds for any one of the purposes described in ORS 327.865, 327.868 or 327.871.

      (B) If a school district receives $100,000 or more but less than $350,000 for the school year from an apportionment made under ORS 327.859, the school district must use a portion of the funds for the purpose described in ORS 327.865 and a portion of the funds for a purpose described in ORS 327.868 or 327.871.

      (C) If a school district receives $350,000 or more for the school year from an apportionment made under ORS 327.859, the school district must use a portion of the funds for all three of the purposes described in ORS 327.865, 327.868 and 327.871.

      (b) Notwithstanding paragraph (a) of this subsection, if a school district receives an apportionment for the second school year of a biennium that is greater than the apportionment for the first school year of the biennium and the increase would affect the portion of moneys the school district is required to use for the purposes described in ORS 327.865, 327.868 and 327.871, as described in paragraph (a) of this subsection, the school district is not required to change the portions that the school district uses for the purposes of ORS 327.865, 327.868 and 327.871 for the second school year of the biennium.

      (c) Nothing in this subsection prohibits a school district receiving an apportionment as described in paragraph (a)(A) or (B) of this subsection from using any portion of the apportionment for more purposes than what is described in paragraph (a)(A) or (B) of this subsection.

      (3) Notwithstanding the requirements in ORS 327.865, 327.868, 327.871 and 327.889 (3) that apportionments made under ORS 327.859 be used for career and technical education programs in high schools, college-level educational opportunities for students in high schools and dropout-prevention strategies in high schools, a school district may use up to 15 percent of the apportionments the school district receives, after deducting any amounts used for administrative costs under ORS 327.889 for programs, opportunities and strategies for students in eighth grade. The use of apportionments under this subsection must comply with the distribution requirements described in subsection (2) of this section.

      (4) When establishing or expanding career and technical education programs and college-level educational opportunities, school districts may, and are encouraged to, give preference to programs and opportunities in science, technology, engineering and mathematics. [2017 c.1 §8; 2017 c.615 §6]

 

      Note: See note under 327.850.

 

      327.877 School district qualifications for apportionments. To qualify for an apportionment under ORS 327.859, a school district must:

      (1) Meet the requirements for eligibility adopted by the State Board of Education under ORS 327.883; and

      (2) Obtain approval of a biennial plan for the proposed use of the amount apportioned under ORS 327.859. [2017 c.1 §13]

 

      Note: See note under 327.850.

 

      327.880 Failure to meet qualifications; retained apportionments. (1) If a school district applies, but does not qualify for, an apportionment under ORS 327.859 and 327.877, the Department of Education shall:

      (a) Retain the amount of the apportionment the school district would have received if the school district had qualified for the apportionment; and

      (b) Prepare a corrective action plan for the school district;

      (2) The department may use a portion of an amount retained under subsection (1)(a) of this section to prepare and assist a school district to implement a corrective action plan;

      (3) If a school district that does not qualify for an apportionment qualifies for an apportionment in the next year, the department shall apportion to the school district the amount of the retained apportionment that the department did not use under subsection (2) of this section; and

      (4) If a school district that does not qualify for an apportionment in one year does not qualify for an apportionment in the next year, or if a school district does not apply for an apportionment in any year, the department shall, using the process described in ORS 327.859, apportion the amount of the retained apportionment to school districts that have qualified for apportionments. [2017 c.1 §14; 2019 c.13 §41]

 

      Note: See note under 327.850.

 

      327.883 Rules for eligibility requirements, biennial plan guidelines, biennial plan submission deadlines, reporting criteria and audit processes. (1) The State Board of Education shall by rule adopt eligibility requirements, biennial plan guidelines, biennial plan submission deadlines, reporting criteria and audit processes to ensure that amounts apportioned under ORS 327.859 improve students’ progress toward graduation beginning with grade 9, increase the graduation rates of high schools and improve high school graduates’ readiness for college or career.

      (2) The requirements for eligibility adopted under subsection (1) of this section must include:

      (a) The requirement that the biennial plan include:

      (A) A district needs assessment and an explanation of how the establishment or expansion of career and technical education programs, college-level educational opportunities or dropout-prevention strategies addresses those needs.

      (B) A description of how the school district will establish or expand career and technical education programs, college-level educational opportunities and dropout-prevention strategies in compliance with ORS 327.874.

      (C) The four-year plan of the school district relating to the establishment or expansion of career and technical education programs, college-level educational opportunities and dropout-prevention strategies, as provided by ORS 327.874.

      (b) The requirement that the school district demonstrate in the biennial plan how the school district will:

      (A) Provide sufficient time for teachers and staff of students in grade 9 to review data on students’ grades, absences and discipline by school and by course and to develop strategies to ensure at-risk students stay on track to graduate;

      (B) Implement district-wide evidence-based practices for reducing chronic absenteeism in grades 9 through 12;

      (C) Assign high school students to advanced and dual-credit courses based on academic qualifications in order to avoid bias in course assignments; and

      (D) Implement systems to ensure that high school students, including English Language Learners, are taking courses required for on-time graduation.

      (c) If necessary for the success of the establishment or expansion of career and technical education programs, college-level educational opportunities and dropout-prevention strategies, the requirement that a school district must demonstrate in the biennial plan that the school district will:

      (A) Cooperate, coordinate or act jointly with other school districts, education service districts, regional achievement collaboratives, post-secondary institutions or other education partners, including professional learning communities, to achieve the purposes of the High School Graduation and College and Career Readiness Fund and to maximize benefits from apportionments under ORS 327.859;

      (B) Cooperate, coordinate or act jointly with nonprofit programs and community-based organizations that have demonstrated achievement of positive outcomes in work with underserved student populations;

      (C) Consult with federally recognized Oregon Indian tribes, as required by rule of the State Board of Education; and

      (D) Use evidence-based criteria to determine appropriate staffing ratios and class sizes to achieve the purposes of the fund and to maximize benefits from apportionments under ORS 327.859. [2017 c.1 §12; 2017 c.615 §7]

 

      Note: See note under 327.850.

 

      327.886 Retention of moneys for administrative costs of department. (1) For the biennium beginning July 1, 2017, the Department of Education may retain up to one and one-half percent of the High School Graduation and College and Career Readiness Fund for purposes of administering ORS 327.853 to 327.895.

      (2) For biennia beginning on or after July 1, 2019, the department may retain up to one and one-quarter percent of the fund for purposes of administering ORS 327.853 to 327.895. [2017 c.1 §10]

 

      Note: See note under 327.850.

 

      327.889 Retention of moneys for administrative costs of school districts. (1) For the biennium beginning July 1, 2017, a school district may not use more than five percent of an apportionment under ORS 327.859 for administrative costs.

      (2) For biennia beginning on or after July 1, 2019, a school district may not use more than four percent of an apportionment for administrative costs.

      (3) A school district may not use an apportionment to administer activities not directly related to the programs, opportunities and strategies described in ORS 327.865, 327.868 and 327.871.

      (4) From the portion of the apportionment used for administrative costs, a school district must conduct an annual analysis of:

      (a) Student attendance in grades 9 through 12; and

      (b) Disciplinary referrals, suspensions and expulsions in grades 9 through 12 disaggregated by race and ethnicity. [2017 c.1 §15]

 

      Note: See note under 327.850.

 

      327.892 Oversight and accountability by department. To ensure the High School Graduation and College and Career Readiness Fund improves students’ progress toward graduation beginning with grade 9, graduation rates and college and career readiness, the Department of Education shall:

      (1) Monitor the performance of school districts that receive apportionments under ORS 327.859, including students’ progress toward graduation beginning with grade 9, graduation rates, rates of college attendance and need for remedial classes in college;

      (2) Intervene where necessary to ensure appropriate and effective use of amounts apportioned under ORS 327.859; and

      (3) Facilitate continuous improvement of use of amounts apportioned under ORS 327.859 by implementing strategies for school districts to share best practices for improving students’ progress toward graduation beginning with grade 9, graduation rates and college and career readiness. [2017 c.1 §9]

 

      Note: See note under 327.850.

 

      327.895 Financial and program audits by Secretary of State; reports to Legislative Assembly and Governor. (1) Not later than December 31, 2020, and every two years thereafter, the Secretary of State shall conduct financial and program audits of the uses of the High School Graduation and College and Career Readiness Fund and the effectiveness of the fund in achieving the purposes of the fund.

      (2) The Secretary of State shall submit the audit reports to the Legislative Assembly and the Governor. [2017 c.1 §11]

 

      Note: See note under 327.850.

 

AGRICULTURAL EDUCATION

 

      327.910 Coordination between Department of Education and Oregon FFA Association for agricultural education courses. To increase student achievement and to improve graduation rates, college preparation and career placement for students enrolled in secondary agricultural education courses, the Department of Education shall coordinate with the Oregon FFA Association to:

      (1) Enroll each student registered in a grades 9 through 12 school agricultural education program for a minimum of one course per school year of an approved agriculture, science and technology program of study as a member of the National FFA Organization.

      (2) Provide financial support for leadership development and training through multiple programs, including but not limited to:

      (a) Local leadership instruction for every student enrolled in an approved agriculture, science and technology course at every high school;

      (b) Regional leadership training for student chapter officers;

      (c) Regional leadership conferences for first-year members;

      (d) Statewide training for Oregon FFA Association officers; and

      (e) Oregon FFA Association officer recruitment, training and coaching.

      (3) Coordinate and host a minimum of 24 state-level competitive events throughout the year focused on agricultural career exploration and preparation.

      (4) Coordinate student recognition and awards programs in conjunction with state and national FFA conventions.

      (5) Work with the Oregon State Fair to plan and implement FFA participation at the Oregon State Fair.

      (6) Provide general and financial administration, communication, membership activities and management of FFA programs. [2019 c.588 §1]

 

      Note: 327.910 and 327.915 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 327 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      327.915 Grants to manage programs of study in agricultural science and technology. (1) The Department of Education shall establish and administer a grant program for the purpose of funding extended duty contracts in school districts to allow school district personnel to manage approved programs of study in agricultural science and technology during the summer months between school years.

      (2) A school district that applies for a grant under subsection (1) of this section must demonstrate in the application that:

      (a) Any teacher involved in the summer program of study in agricultural science and technology holds a valid Oregon teaching license, with an endorsement in agriculture, as described in rules of the Teacher Standards and Practices Commission;

      (b) The school district has developed a calendar of activities that has been approved by school district administrative personnel and reviewed by a department specialist for career and technical agricultural education;

      (c) A school day will consist of eight hours and that any exceptions will be reflected in the calendar of activities and be approved by the school district; and

      (d) The school district will develop and file with each affected school principal a weekly schedule and a monthly report outlining accomplishments related to the calendar of activities and will file a final report with the department prior to the beginning of the next school year.

      (3) Each school district that receives a grant under subsection (1) of this section shall file with the department a final program report on a date specified by the department. The report must be filed on forms provided by the department. [2019 c.588 §3]

 

      Note: See note under 327.910.

 

      327.990 [Amended by 1957 c.626 §5; repealed by 1965 c.100 §456]

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