State School Fund Estimates / Formula

Periodically, the Oregon Department of Education (ODE) publishes updated State School Fund Estimates.

State School Fund Formula

The passage of Ballot Measure 5 in 1990 required the Legislature to develop a more equitable method of distributing state resources to local school districts. The State School Fund Formula was adopted by the 1991 Legislature and amended on several occasions.

The Funding Formula was designed to:

    * Define school district "equity"
    * Measure the "relative need" of districts for funding given certain student and district characteristics
    * Reflect the finance issues and court decisions of the 1980s
    * Refine "equity" by legislative policy choices over time

Distribution Principles of the State School Fund Formula:

    * Share school funding sources statewide
       Method: Allocate all state and local operating revenue

    * Allow each district to decide how to spend its allocation
       Method: Give state aid in lump sum, not categorical grants

    * Adjust funding only for uncontrollable cost differences (examples: High cost disability, transportation, teacher experience)
       Method: Justify revenue differences in a rational manner

    * Avoid incentives to increase district allocation
       Method: Minimize classifications and set limits


Equalization Formula: (State Revenue  +  Local Revenue  =  General Purpose Grant + Transportation Grant + High Cost Disability Grant + Facility Grant)

General Purpose Grant =

    ADMw  X  ($4500 + Teacher Experience Adjustment)  X  Balance Ratio

Transportation Grant =

    90% of approved costs for 10% of districts with highest costs
    80% of approved costs for next 10% of districts with highest cost
    70% of approved costs for all other districts

High Cost Disability Grant =

    Up to sum of eligible costs above $30,000 per disability student - limited to $12 million/year

Facility Grant =

    Up to 8% of construction costs of new instructional facilities - limited to $17.5 million/ biennium. Increases to $25 million/biennium in 2007

K-12/ESD Funding Allocation
The funding split between K-12 districts and ESDs is set at 95.25% for K-12 and 4.75% for ESDs.

Latest State School Fund Estimates
Get the latest and historic ODE State School Fund Estimates.