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Document Number: 3966

[Oregon] K-12 and ESD School Finance: State School Fund Distribution - After the 1990s, the Oregon Education Service Districts (ESD) began receiving State School Fund dollars to help compensate for property tax cuts. However, the issue of an imbalance in state and local revenue per student among ESDs was not addressed until 1999. This report discusses Oregon's school finance system for distributing State School Fund dollars to K-12 school districts and ESDs. It provides an overview of the principles used to define financial equity for school districts and their implementation in the K-12 equalization formula. The formula uses four different methods to adjust for cost differences among school districts, including: (1) weighted student count, (2) teacher experience adjustment, (3) transportation grant and (4) facility grant. (Oregon Legislative Revenue Office, November 2001)...

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