[Busmgrs] Questions regarind impact on extended ADMw from ORCA

[ELLIOTT Michael S]

Dear Business Managers,

Since our update on the 2015-16 State School Fund estimates last week, we have received many questions regarding the impact of extended ADMw as applied to Oregon Connections Academy (ORCA) moving from one district to another. To reiterate, current law states that a district may receive the greater of this year's ADMw or the previous year's ADMw as the basis for the funding. There is not an exception if the swing in ADMw is large.

We have also received questions about whether there are proposed solutions to the concerns raised by current law. The answer is yes. HB 2150  addresses some of these issues. It proposes to changes the way charter school ADMw is calculated moving forward and limits the extended ADMw increase for a district when a charter school leaves the district or closes.

First, HB 2150 changes the calculation of charter school ADMw to be included with the rest of the district. Thus, instead of separately calculating charter school extended ADMw, charter school weights (ADMr, IEP, ESL, etc.) will be included with the rest of the district and then compared with the previous year's ADMw to arrive at extended ADMw.

Second, HB 2150 limits the amount of a charter school's ADM that can be added to extended ADMw for a district when a charter school leaves the district or closes. Currently all charter ADM is included in the previous year's calculation of ADMw which can lead to significant swings with extended ADMw. This bill will limit ADM increases to 5% of the charter school's ADM. For 2015-16 the total will be 8% of the ADM. Thus, a district that has a charter school of 1,000 ADM, instead of receiving all 1,000 ADM as part of the extended ADMw calculation, will only receive 50 ADM for their extended ADMw collection.

It is my understanding that HB 2150 is in the House Revenue committee.

Please let me know if you have any questions.

Thank you,
Michael


Michael Elliott
State School Fund Coordinator | Office of Finance & Administration|School Finance & Pupil Transportation Unit| Oregon Department of Education
Office: 503.947.5627 | Fax: 503.378.5156 | *michael.s.elliott at state.or.us




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