1 Oregon’s Community College Funding Formula Education Subcommittee of Ways and Means June 12, 2003 Presented by the Department of Community Colleges and Workforce Development
2 Components State appropriation State appropriation 50% of property tax revenues 50% of property tax revenues Base allocation Base allocation Funded FTE (Frozen at levels) Funded FTE (Frozen at levels) “GAP” adjustment complete in “GAP” adjustment complete in
3 The Basic Equation State Appropriation plus 50% of Imposed Property Taxes Equals:Total Formula Funds Minus: Base Funding Divided by:Enrollments Equals: Funds per FTE
4 How it Works Total Appropriation 401,906,504 Total Appropriation 401,906,504Less Categorical Funding -3,362,565 Available for Formula Distribution 398,543,939 Available for Formula Distribution 398,543,939 Divide by Two for Yearly Amount ÷ State Funds Available 199,271, State Funds Available 199,271,970 Add 50% of Property Tax Statewide +52,431,396 Total Formula Resources 251,703,366 Total Formula Resources 251,703,366
5 How it Works (con’t.) Total Formula Resources 251,703,366 Total Formula Resources 251,703,366 Less Am’t Required for Base -11,743,759 Available for FTE Distribution 239,959,607 Available for FTE Distribution 239,959,607 Divide by Funded FTE ÷96, Amount Available per FTE $2,498 Amount Available per FTE $2,498
Illustration (Lane) Base Payment 694,100 Base Payment 694,100 ADD: ADD: Amount Available per FTE 2,498 Times FTE x 12, ,708,863 Formula Resources 32,402,963 Formula Resources 32,402,963 Less 50% Property Taxes - 6,208,226 Less 50% Property Taxes - 6,208, State Aid $26,194, State Aid $26,194,737
Illustration (Blue Mountain) Base Payment 738,592 Base Payment 738,592 ADD: ADD: Amount Available per FTE 2,498 Times FTE x 2, ,086,309 Formula Resources 6,824,901 Formula Resources 6,824,901 Less 50% Property Tax - 1,819,987 Less 50% Property Tax - 1,819,987 Equals State Aid $5,004,914 Equals State Aid $5,004,914
8 Things to Remember The funding formula is really a distribution formula The funding formula is really a distribution formula Information presented is based on CCWD estimates ONLY … Any changes in appropriations will change the results Information presented is based on CCWD estimates ONLY … Any changes in appropriations will change the results A new formula will be developed for A new formula will be developed for
9 Property Taxes College Actual RFTE Rate per Thousand Property Taxes Imposed Taxes per FTE Blue Mountain 2,349.28$ ,008,881 $ 1,281 Central Oregon 3,988.99$ ,173,672 $ 1,798 Chemeketa 11,637.35$ ,298,620 $ 971 Clackamas 7,792.56$ ,004,227 $ 1,155 Clatsop 1,715.84$ ,517,860 $ 1,467 Columbia Gorge $ ,708 $ 376 Klamath 1,193.83$ ,183,902 $ 992 Lane 12,746.88$ ,982,571 $ 862 Linn-Benton 6,765.55$ ,631,609 $ 685 Mt. Hood 9,467.29$ ,378,789 $ 779 Oregon Coast $ ,742 $ 1,554 Portland 24,851.77$ ,640,144 $ 750 Rogue 4,939.67$ ,031,022 $ 1,423 Southwestern Oregon 3,029.86$ ,391,497 $ 1,119 Tillamook Bay $ ,693 $ 1,534 Treasure Valley 1,797.43$ ,407,800 $ 783 Umpqua 3,541.33$ ,053,736 $ 580 Totals/Averages 97,549.97$ ,392,473 $ 937
10 Impact of Property Taxes on Distribution *Projections based on funding included in Governor’s Budget
11 Projected State & Property Taxes per FTE – 50% of Property Taxes Included in Formula
12 Projected State & Property Taxes per FTE – Property Taxes Excluded from Formula
13 Projected State & Property Taxes per FTE – All Property Taxes Included in Formula
14 Comparison of Property Tax Effect on Formula