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<div style="padding-left: 18pt; "><b>SCHOOL DAY RESTORATION FUND</b></div>
<div style="padding-left: 18pt; "><font color="#0000FF"> </font></div>
<div style="padding-left: 18pt; "><font size="2"><b>BACKGROUND: </b>As you probably are aware, the 2009 Legislature created the School Day Restoration Fund last week (Senate Bill 581) and funded it with $51 million General Fund (Senate Bill 5552). <font face="Arial, sans-serif">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. </font></font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="padding-left: 18pt; "><font size="2">Senate Bill 581 requires the Oregon Department of Education to work with the Legislative Fiscal Office to determine grant requirements. These are to include, but are not limited to, <font face="Arial, sans-serif">a
requirement that the school district or education service district superintendent, and president or chair of the district governing board, certify the district has made a good faith effort to: (A) </font>e<font face="Arial, sans-serif">liminate or minimize
reductions in the number of school days; (B) </font>c<font face="Arial, sans-serif">ontinue special education programs; (C) </font>r<font face="Arial, sans-serif">eview and possibly reduce administrative salaries; (D) </font>c<font face="Arial, sans-serif">ollaborate
with teachers and other employees concerning ways to maintain school days; and (E) </font>u<font face="Arial, sans-serif">tilize cash reserves to the greatest extent possible.</font></font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="padding-left: 18pt; "><font size="2"><b>ACTION REQUIRED: </b>Attached below<font color="#0000FF"> </font>you will find the application for a grant from the new School Day Restoration Fund. (You can also access the form at <a href="http://www.ode.state.or.us/services/ssf/finance/estwarrants/sdrf-application.pdf"><font color="#0000FF"><u>http://www.ode.state.or.us/services/ssf/finance/estwarrants/sdrf-application.pdf</u></font></a>
) <font face="Arial, sans-serif">The form</font>, created by the Legislative Fiscal Office and reviewed by the Oregon Department of Education,<font face="Arial, sans-serif"> contains questions regarding </font>district reserves and steps taken to minimize
a reduction in school days. It also requires the <font face="Arial, sans-serif">Superintendent and the chair/president of the governing board</font> to certify, by original signature, good faith efforts have been made to minimize or eliminate a reduction in
school days<font face="Arial, sans-serif">. Please submit </font>your district's<font face="Arial, sans-serif"> completed form no later than </font><font face="Arial, sans-serif"><b>April 30, 2009 </b></font><font face="Arial, sans-serif">a</font>s follows<font color="#0000FF">:</font></font></div>
<div style="padding-left: 18pt; "><font size="2" color="#0000FF"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Please provide the original to<font face="Arial, sans-serif" color="#0000FF"> -</font></font></div>
<div style="padding-left: 18pt; "><font size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Mark Patterson, Director</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">School Finance Unit</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Oregon Department of Education</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">255 Capitol Street</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Salem, OR<font face="Arial, sans-serif" color="#0000FF"> </font><font face="Arial, sans-serif">97310</font></font></div>
<div style="padding-left: 18pt; "><font size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Please also submit a copy to<font face="Arial, sans-serif" color="#0000FF"> -</font></font></div>
<div style="padding-left: 18pt; "><font size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Monica Brown</font></div>
<div style="padding-left: 18pt; "><font size="2">Principal Legislative Analyst</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Legislative Fiscal Office</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">State Capitol Building</font></div>
<div style="padding-left: 18pt; "><font size="2">900<font face="Arial, sans-serif"> Court Street</font><font color="#0000FF"> </font>NE</font></div>
<div style="padding-left: 18pt; "><font size="2">Room H-178</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Salem, OR<font face="Arial, sans-serif" color="#0000FF"> </font><font face="Arial, sans-serif">97301</font></font></div>
<div style="padding-left: 18pt; "><font size="2"> </font></div>
<div style="padding-left: 18pt; "><font size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">The <font face="Arial, sans-serif">L</font>egislature is requiring the Department to make distributions from the School Day Restoration Fund no later than May 15, 2009. Any funds remaining
<font face="Arial, sans-serif">on July 1, 2009 </font>will revert to the state's General Fund. Therefore, we must receive your <u>completed and signed</u> application by April 30, 2009.</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">For early submitters, the Department plans to distribute funds by April 15, 2009. For th<font face="Arial, sans-serif">e April</font> distribution, we must receive your <u>completed
and signed </u>application by March 31, 2009.</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="padding-left: 18pt; "><font size="2"><b>QUESTIONS?</b><font color="#0000FF"> </font><font face="Arial, sans-serif">For your reference</font>,<font face="Arial, sans-serif"> we have included the sections from Senate Bill 581 that establish the School
Day Restoration Fund. If you have any questions on this new fund or the application, please contact: </font></font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Mark Patterson, Director</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">School Finance Unit</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Oregon Department of Education</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">255 Capitol Street</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Salem, OR</font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2" color="#0000FF"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2">Sincerely, </font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="padding-left: 18pt; "><font face="Lucida Calligraphy, cursive" size="2"><i>Sue MacGlashan</i></font></div>
<div style="padding-left: 18pt; "><font size="2">Assistant Superintendent</font></div>
<div style="padding-left: 18pt; "><font size="2">Office of Finance and Administration</font></div>
<div style="padding-left: 18pt; "><font size="2">Oregon Department of Education</font></div>
<div style="padding-left: 18pt; "><font size="2">255 Capitol Street NE</font></div>
<div style="padding-left: 18pt; "><font size="2">Salem, Oregon 97310</font></div>
<div style="padding-left: 18pt; "><font size="2">(503)947-5658</font></div>
<div style="padding-left: 18pt; "><font size="2">susan.macglashan@state.or.us</font></div>
<div style="padding-left: 18pt; "><font size="2" color="#0000FF"> </font></div>
<div style="padding-left: 18pt; "><font size="2"><b>SDRF Grant Application Form:</b></font></div>
<div style="padding-left: 18pt; "><font size="2"> </font></div>
<div style="padding-left: 18pt; "><font size="2"><font face="Arial, sans-serif"> </font></font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"><b>Excerpt from Senate Bill 581</b><font face="Arial, sans-serif" color="#0000FF"><b> </b></font><font face="Arial, sans-serif"><b>[Enrolled]</b></font><b>:</b></font></div>
<div style="padding-left: 18pt; "><font face="Arial, sans-serif" size="2"> </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">SECTION 19. { + The Legislative Assembly finds that: (1) The state is experiencing an unprecedented economic downturn; (2) The state has an interest in
ensuring that Oregon's children are able to complete the 2008-2009 school year with minimal or no reductions in school days; and (3) To achieve that purpose, it is necessary to establish a School Day Restoration Fund so that the state may support activities
directly related to maintaining classroom activities while allowing school districts and education service districts to determine the specific activities necessary to reduce costs and access local reserves to support Oregon's children. + } </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">SECTION 20. { + (1) The School Day Restoration Fund is established in the General Fund. </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(2) The Department of Education shall distribute moneys in the School Day Restoration Fund as follows: (a) 95.25 percent as grants to school districts,
the Youth Corrections Education Program and the Juvenile Detention Education Program; and (b) 4.75 percent as grants to education service districts. + } </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">SECTION 21. { + (1) In addition to those moneys distributed through the State School Fund, the Department of Education shall award grants from the School
Day Restoration Fund established by section 20 of this 2009 Act to school districts, education service districts, the Youth Corrections Education Program and the Juvenile Detention Education Program for the purposes of minimizing or eliminating any reductions
in the number of school days and ensuring the continuation of special education programs for the remainder of the 2008-2009 school year. </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(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 under this section. </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(b) The Department of Education shall work with the Legislative Fiscal Office to set grant application requirements. The requirements shall include, but
are not limited to, a requirement that the school district or education service district superintendent, and president or chair of the district governing board, certify that the district has made a good faith effort to: (A) Eliminate or minimize reductions
in the number of school days; (B) Continue special education programs; (C) Review and possibly reduce administrative salaries; (D) Collaborate with teachers and other employees concerning ways to maintain school days; and (E) Utilize cash reserves to the greatest
extent possible.</font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(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. </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(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. </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(c) A public charter school that receives grant funds under this subsection shall use those funds for the purposes specified in subsection (1) of this
section. </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(4)(a) The amount of each grant for a program or school district = the program's or school district's ADMw X (the total amount available for distribution
to programs and school districts as grants : the total statewide ADMw of all programs and school districts). </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(b) The amount of each grant for an education service district = the education service district's ADMw X (the total amount available for distribution
to education service districts as grants : the total statewide ADMw of all education service districts). <font face="Arial, sans-serif" size="2" color="#0000FF"> </font></font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(c) As used in this subsection, 'ADMw' means ADMw based upon the collection of 2008-2009 second quarter average daily membership as reported to the Department
of Education by school districts and the most recent collections of all other components of ADMw for the 2008-2009 school year. </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">(5) The State Board of Education may adopt any rules necessary to implement and administer section 20 of this 2009 Act and this section. + } </font></div>
<div style="margin-top: 5pt; margin-bottom: 5pt; padding-left: 18pt; "><font face="Times New Roman, serif">SECTION 22. { + (1) Sections 19 to 21 of this 2009 Act are repealed July 1, 2009. (2) Any moneys remaining in the School Day Restoration Fund on July
1, 2009, shall be transferred to the General Fund for general governmental purposes. + } </font></div>
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