1. 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. 2 Components State appropriation State appropriation 50% of property tax revenues 50% of property tax revenues Base allocation Base allocation Funded FTE (Frozen at 2001-2002 levels) Funded FTE (Frozen at 2001-2002 levels) “GAP” adjustment complete in 2004-05 “GAP” adjustment complete in 2004-05

3. 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. 4 How it Works Total 2003-2005 Appropriation 401,906,504 Total 2003-2005 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 ÷2 2004-05 State Funds Available 199,271,970 2004-05 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. 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 ÷96,063.34 Amount Available per FTE $2,498 Amount Available per FTE $2,498

6. 6 2004-2005 Illustration (Lane) Base Payment 694,100 Base Payment 694,100 ADD: ADD: Amount Available per FTE 2,498 Times 2001-2002 FTE x 12,694.05 31,708,863 Formula Resources 32,402,963 Formula Resources 32,402,963 Less 50% Property Taxes - 6,208,226 Less 50% Property Taxes - 6,208,226 2004-05 State Aid $26,194,737 2004-05 State Aid $26,194,737

7. 7 2004-05 Illustration (Blue Mountain) Base Payment 738,592 Base Payment 738,592 ADD: ADD: Amount Available per FTE 2,498 Times 2001-2002 FTE x 2,436.54 6,086,309 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 2004-2005 State Aid $5,004,914 Equals 2004-2005 State Aid $5,004,914

8. 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 2005- 2007 A new formula will be developed for 2005- 2007

9. 9 Property Taxes College Actual 2001-02 RFTE Rate per Thousand Property Taxes Imposed Taxes per FTE Blue Mountain 2,349.28$0.6611 3,008,881 $ 1,281 Central Oregon 3,988.99$0.6204 7,173,672 $ 1,798 Chemeketa 11,637.35$0.6259 11,298,620 $ 971 Clackamas 7,792.56$0.5582 9,004,227 $ 1,155 Clatsop 1,715.84$0.7785 2,517,860 $ 1,467 Columbia Gorge 845.05$0.2703 317,708 $ 376 Klamath 1,193.83$0.4117 1,183,902 $ 992 Lane 12,746.88$0.6191 10,982,571 $ 862 Linn-Benton 6,765.55$0.5019 4,631,609 $ 685 Mt. Hood 9,467.29$0.4416 7,378,789 $ 779 Oregon Coast 461.09$0.1757 716,742 $ 1,554 Portland 24,851.77$0.2828 18,640,144 $ 750 Rogue 4,939.67$0.5128 7,031,022 $ 1,423 Southwestern Oregon 3,029.86$0.7017 3,391,497 $ 1,119 Tillamook Bay 426.20$0.2636 653,693 $ 1,534 Treasure Valley 1,797.43$1.2235 1,407,800 $ 783 Umpqua 3,541.33$0.4551 2,053,736 $ 580 Totals/Averages 97,549.97$0.5433 91,392,473 $ 937

10. 10 Impact of Property Taxes on Distribution *Projections based on funding included in Governor’s Budget

11. 11 Projected State & Property Taxes per FTE – 50% of Property Taxes Included in Formula

12. 12 Projected State & Property Taxes per FTE – Property Taxes Excluded from Formula

13. 13 Projected State & Property Taxes per FTE – All Property Taxes Included in Formula

14. 14 Comparison of Property Tax Effect on Formula