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<div><font face="Calibri" size="2"><span style="font-size:11pt;">Dear Business Managers,</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">As you are well aware it has been several weeks since we have sent out an estimate. Thank you for your patience. We have a 2013-14 estimate. District estimates are available here: <a href="http://www.ode.state.or.us/services/ssf/2013-14-ssf-estimate-as-of-3-4-13-1833-hrs-co-chairs-budget.pdf"><font color="blue"><u>http://www.ode.state.or.us/services/ssf/2013-14-ssf-estimate-as-of-3-4-13-1833-hrs-co-chairs-budget.pdf</u></font></a>.
The ADMw breakout for each district is here: <a href="http://www.ode.state.or.us/services/ssf/transparency-estimate-3-4-13-1833-hrs.pdf"><font color="blue"><u>http://www.ode.state.or.us/services/ssf/transparency-estimate-3-4-13-1833-hrs.pdf</u></font></a>.
ESD estimates are available here: <a href="http://www.ode.state.or.us/services/ssf/esd-13-14-estimate-as-of-3-4-13-1838-hrs-co-chair-budget.pdf"><font color="blue"><u>http://www.ode.state.or.us/services/ssf/esd-13-14-estimate-as-of-3-4-13-1838-hrs-co-chair-budget.pdf</u></font></a>.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The reason for the delay has been the implementation of HB 3417 passed in 2011. This bill changes the way extended ADMw is calculated. The bill requires that charter school extended ADMw be calculated
separately from the extended ADMw of the non-charter schools in the school district. The two numbers are then added together to determine the total extended ADMw for the district.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The first major hurdle for implementation was determining what would be included in the extended ADMw for charter schools. There were differences of opinion of which weights belonged where. The
Department asked the State Board of Education for rules to clarify how the legislation would be implemented. The State Board of Education passed OAR 581-023-0106 in June of 2012.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Once the rules were established, work could begin on reprogramming the State School Fund for implementation. The challenge was that the State School Fund is not set up to separate individual schools
within a district. Thus, the programming had to be almost completely redesigned to ensure that weights were assigned to both non-charter and charter schools in a district appropriately.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">We have finished that programming and are ready to roll out the new estimates. However, the estimates are not the same estimates as they too needed to be completely redesigned. The current estimate
did not have room to show all of the individual charter schools, the weights assigned to the school, the weights assigned to the non-charter schools and the extended ADMw. The result is that each estimate is now in two parts.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"><b>Estimate Part One: Summary Data</b></span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The first part of the estimate most closely resembles what you have seen before. This is the summary data portion of the estimate. The top of the estimate continues to display local revenue and
transportation grant costs. All of this information remains at the district level and will be displayed in each district’s estimate.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The middle section is the biggest change to the estimate. This section lists the individual charter schools and then adds a line for the combined non-charter schools in the district. The most
noticeable change is that individual weights are not listed for each school in the district. Instead, the only information being displayed is the past year’s ADMw, the current year’s ADMw, and the extended ADMw for each charter school and the combined non-charter
schools in the district.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Because of size limitations, no individual weight data could be added to this part of the estimate. Thus, only the totaled ADMw data can be shown in this estimate.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The rest of the estimate remains the same. The calculations for the general purpose grant, including the ratio, are shown. The total formula revenue, which includes the transportation grant, is
then calculated. Finally the state school fund grant, which is total revenue less local revenue, is displayed. The amounts per ADMw are also still on the estimate.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The biggest change to the estimate is that individual weights are not calculated for each district on this part of the estimate. There is simply no room to show the district weights and the charter
school weights. The estimate cannot total the charter and non-charter school weights because that is not how extended ADMw is now calculated. Thus, only summary data is available on this part of the estimate.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"><b>Estimate Part Two: Detailed Data</b></span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The good news is that we are able to show the individual weights the non-charter and individual charter schools receive per district. The weights are distributed per OAR 581-023-0106. This is
the second part of the estimate which shows the current year’s weights for each charter school in the district as well as the total for the non-charter schools.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The second part of the estimate does several things. First it lists all of the weights for each charter school as well as the weights for the combined district. Second, it lists the weights for
the past year as well as the current year. Thus, each charter school in a district, as well as the non-charter schools in the district, will see each weight, the multiplier given to that weight, and the total weights added, for both the current year and the
past year. </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The goal of the part of the estimate is to increase the transparency around weights and how they are distributed between the non-charter and charter schools in the district. To further transparency,
each school’s weights are listed by the current year as well as the past. Thus, you will be able to see how extended ADMw was calculated.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"><b>Conclusion</b></span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The goals of these new estimates are two-fold. First, we want the estimates to reflect HB 3417 and how charter and non-charter extended ADMw is now calculated. It is important that everyone understand
what numbers are being used to form the extended ADMw of the district which forms the basis of the district’s general purpose grant.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">The second goal is to increase transparency on how the weights are allocated between the district’s non-charter and charter schools. It is important that districts understand which weights go
directly to a charter school and which weights remain with the district. The second part of the estimate displays this distribution. It shows, in table form, how weights are distributed per OAR 581-023-0106.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Thank you again for your patience in this implementation process. The programming and behind the scenes work was more complicated than originally contemplated. The results create a very different
estimate than the one that everyone is used to. However, the new estimates continue the transparency around the formula of the old estimates and increase the transparency on how weights are distributed.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Please review the new estimates carefully to get a better feel of how they will work. If anyone has additional questions, please let me know.</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Thank you,</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Michael </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Michael Elliott, State School Fund Coordinator</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Oregon Department of Education</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">503-947-5627</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;">Michael.S.Elliott@ode.state.or.us</span></font></div>
<div><font face="Calibri" size="2"><span style="font-size:11pt;"> </span></font></div>
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