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HB3037 • 2025

Allows the State Board of Education to establish for small school districts a minimum grant amount and the Department of Education to reduce the administrative burden related to applying for and reporting on grants.

Allows the State Board of Education to establish for small school districts a minimum grant amount and the Department of Education to reduce the administrative burden related to applying for and reporting on grants.

Education
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Last action
2025-08-07
Official status
Chapter Number Assigned
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Allows the State Board of Education to establish for small school districts a minimum grant amount and the Department of Education to reduce the administrative burden related to applying for and reporting on grants.

Digest: Makes changes to grants awarded by ODE.

What This Bill Does

  • Digest: Makes changes to grants awarded by ODE.
  • (Flesch Readability Score: 78.8).
  • Allows the State Board of Education to establish for small school districts a minimum grant amount and the Department of Education to reduce the administrative burden related to applying for and reporting on grants.
  • Expands eligibility and makes funding adjustments to amounts appropriated under the High School Graduation and College and Career Readiness Act and to grants awarded for implementing early warning systems.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-08-07 House

    Chapter 498, (2025 Laws): Effective date July 17, 2025.

  2. 2025-07-17 House

    Governor signed.

  3. 2025-06-26 House

    Speaker signed.

  4. 2025-06-26 Senate

    President signed.

  5. 2025-06-24 Senate

    Recommendation: Do pass.

  6. 2025-06-24 Senate

    Second reading.

  7. 2025-06-24 Senate

    Rules suspended. Third reading. Carried by Frederick. Passed. Ayes, 29; Excused, 1--Thatcher.

  8. 2025-06-23 House

    Third reading. Carried by McLain. Passed. Ayes, 41; Nays, 1--Evans; Absent, 1--Harbick; Excused, 13--Boice, Boshart Davis, Cate, Diehl, Drazan, Edwards, Nguyen H, Osborne, Scharf, Skarlatos, Wallan, Wright, Yunker; Excused for Business of the House, 4--Javadi, Pham H, Sanchez, Walters.

  9. 2025-06-23 Senate

    First reading. Referred to President's desk.

  10. 2025-06-23 Senate

    Referred to Ways and Means.

  11. 2025-06-20 House

    Second reading.

  12. 2025-06-19 House

    Recommendation: Do pass.

  13. 2025-06-17 House

    Work Session held.

  14. 2025-06-12 House

    Assigned to Subcommittee On Education.

  15. 2025-06-12 House

    Work Session held.

  16. 2025-06-12 House

    Returned to Full Committee.

  17. 2025-04-03 House

    Recommendation: Do pass and be referred to Ways and Means by prior reference.

  18. 2025-04-03 House

    Referred to Ways and Means by prior reference.

  19. 2025-03-31 House

    Work Session held.

  20. 2025-03-05 House

    Public Hearing held.

  21. 2025-01-17 House

    Referred to Education with subsequent referral to Ways and Means.

  22. 2025-01-13 House

    First reading. Referred to Speaker's desk.

Official Summary Text

Digest: Makes changes to grants awarded by ODE. (Flesch Readability Score: 78.8).
Allows the State Board of Education to establish for small school districts a minimum grant amount and the Department of Education to reduce the administrative burden related to applying for and reporting on grants.
Expands eligibility and makes funding adjustments to amounts appropriated under the High School Graduation and College and Career Readiness Act and to grants awarded for implementing early warning systems.
Expands the entities eligible for grants awarded from the Student Investment Account.
Revises the reporting date related to grants that are provided for English language learner programs.
Declares an emergency, effective July 1, 2025.
Relating to: Relating to state grants awarded by the Department of Education; and declaring an emergency.
Current location: Chapter Number Assigned

Current Bill Text

Read the full stored bill text
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 3037
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of Governor
Tina Kotek for Department of Education)
CHAPTER .................................................
AN ACT
Relating to state grants awarded by the Department of Education; creating new provisions; amend-
ing ORS 327.016, 327.185, 327.195, 327.254, 327.367, 327.853, 327.859, 327.874 and 327.889; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
GRANTS FOR SMALL ADM SCHOOL DISTRICTS
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS chapter 327.
SECTION 2. (1) As used in this section:
(a) “Small ADM school district” means a school district that has an average daily mem-
bership, as defined in ORS 327.006, of less than 1,650.
(b) “State-funded grant” means a grant awarded by the Department of Education from
funds appropriated or allocated by the Legislative Assembly to the department for the pur-
pose of awarding grants to school districts.
(2) Except when a minimum grant amount is provided for in statute, the State Board of
Education may establish a minimum grant amount for a state-funded grant when the grant
is awarded to a small ADM school district.
(3) The Department of Education may modify grant application and reporting require-
ments for a noncompetitive state-funded grant for the purpose of reducing the administra-
tive burden for small ADM school districts.
HIGH SCHOOL GRADUATION AND COLLEGE AND CAREER
READINESS ACT GRANTS
SECTION 3. ORS 327.853 is amended to read:
327.853. As used in ORS 327.853 to 327.895:
(1) “Chronic absenteeism” means a student has missed 10 percent or more of school days, in-
cluding excused, nonexcused and disciplinary exclusion, within a school year.
(2) “English Language Learner” has the meaning given that term in ORS 336.079.
(3) “High school student” means a student enrolled in grades 9 through 12 or age level equiv-
alent.
Enrolled House Bill 3037 (HB 3037-INTRO) Page 1
(4) “Long term care or treatment facility” means an eligible day treatment program or
an eligible residential treatment program for which payment of the costs of education is
provided as described in ORS 343.961 (2).
[(4)] (5) “Program audit” means determining:
(a) The extent to which the desired results or benefits of a program are being achieved;
(b) The extent to which the need for or objectives of an ongoing program are necessary or rel-
evant;
(c) Whether the program complements, duplicates, overlaps or conflicts with other related pro-
grams;
(d) The effectiveness of organizations, programs, activities or functions; and
(e) Whether the entity that is the subject of the audit has complied with laws and regulations
applicable to the program.
[(5)] (6) “School district” means:
(a) A common or union high school district;
(b) The Oregon School for the Deaf; [and]
(c) An educational program under the Youth Corrections Education Program or the Juvenile
Detention Education Program, as those terms are defined in ORS 326.695[ .]; and
(d) The school district or education service district that is providing the educational
services for a long term care or treatment facility.
SECTION 4.
ORS 327.859 is amended to read:
327.859. (1)(a) Subject to ORS 327.880 and 327.886, [ for school years beginning on or after July
1, 2017,] the High School Graduation and College and Career Readiness Fund shall be apportioned
to each school district based on the extended weighted average daily membership of high school
students computed:
(A) As provided in ORS 327.013 (1)(c), for common or union high school districts.
(B) By multiplying the average daily membership for students in grades 9 through 12 by 2.0, as
calculated for the current school year and the previous school year and using the greater amount,
for the Oregon School for the Deaf and for a long term care or treatment facility .
(C) As provided in ORS 327.026, for an educational program under the Youth Corrections Edu-
cation Program or the Juvenile Detention Education Program.
(b) In the event the Department of Education is unable to determine the extended weighted av-
erage daily membership of high school students for a school district, the department may determine
the average extended weighted average daily membership for all students in the school district and
apply the average extended weighted average daily membership to the number of high school stu-
dents in the school district.
(2)(a) For school years beginning on or after July 1, 2018, the amount appropriated, allocated
or otherwise made available to the fund under ORS 327.856, shall be increased each school year in
a biennium by the amount derived from the application of the process in Executive Order 14-14 used
to calculate the cost to maintain the current level of service.
(b) The intent of paragraph (a) of this subsection is to apply the process in Executive Order
14-14 in the event Executive Order 14-14 is canceled, superseded or otherwise made ineffective.
SECTION 5.
ORS 327.874 is amended to read:
327.874. (1) A school district must use the amount apportioned under ORS 327.859 to establish
or expand programs, opportunities and strategies under ORS 327.865, 327.868 and 327.871 and may
not use the amount apportioned to maintain programs, opportunities and strategies established prior
to December 8, 2016, except when a use is necessary to replace the loss or expiration of time-limited
grants or federal funds.
(2)(a) The portion of funds that a school district uses for the purposes of ORS 327.865, 327.868
and 327.871 shall be determined as follows:
(A) If a school district receives less than $100,000 for the school year from an apportionment
made under ORS 327.859, the school district may use all of the funds for any one of the purposes
described in ORS 327.865, 327.868 or 327.871.
Enrolled House Bill 3037 (HB 3037-INTRO) Page 2
(B) If a school district receives $100,000 or more but less than $350,000 for the school year from
an apportionment made under ORS 327.859, the school district must use a portion of the funds for
the purpose described in ORS 327.865 and a portion of the funds for a purpose described in ORS
327.868 or 327.871.
(C) If a school district receives $350,000 or more for the school year from an apportionment
made under ORS 327.859, the school district must use a portion of the funds for all three of the
purposes described in ORS 327.865, 327.868 and 327.871.
(b) For the purposes of this subsection, the amounts identified in paragraph (a) of this
subsection shall be increased each biennium based on application of the process described in
ORS 327.859 (2).
[(b)] (c) Notwithstanding paragraph (a) of this subsection, if a school district receives an ap-
portionment for the second school year of a biennium that is greater than the apportionment for the
first school year of the biennium and the increase would affect the portion of moneys the school
district is required to use for the purposes described in ORS 327.865, 327.868 and 327.871, as de-
scribed in paragraph (a) of this subsection, the school district is not required to change the portions
that the school district uses for the purposes of ORS 327.865, 327.868 and 327.871 for the second
school year of the biennium.
[(c)] (d) Nothing in this subsection prohibits a school district receiving an apportionment as
described in paragraph (a)(A) or (B) of this subsection from using any portion of the apportionment
for more purposes than what is described in paragraph (a)(A) or (B) of this subsection.
(3) Notwithstanding the requirements in ORS 327.865, 327.868, 327.871 and 327.889 [ (3)] (2) that
apportionments made under ORS 327.859 be used for career and technical education programs in
high schools, college-level educational opportunities for students in high schools and dropout-
prevention strategies in high schools, a school district may use up to 15 percent of the apportion-
ments the school district receives, after deducting any amounts used for administrative costs under
ORS 327.889 for programs, opportunities and strategies for students in eighth grade. The use of ap-
portionments under this subsection must comply with the distribution requirements described in
subsection (2) of this section.
(4) When establishing or expanding career and technical education programs and college-level
educational opportunities, school districts may, and are encouraged to, give preference to programs
and opportunities in science, technology, engineering and mathematics.
SECTION 6.
Notwithstanding ORS 327.874 (2)(b), the amounts identified in ORS 327.874
(2)(a) shall first be adjusted for the 2025-2027 biennium by the same percentage by which the
total amount available for apportionment under ORS 327.859 has been adjusted, as compared
to the 2017-2019 biennium.
SECTION 7. ORS 327.889 is amended to read:
327.889. [ (1) For the biennium beginning July 1, 2017, a school district may not use more than five
percent of an apportionment under ORS 327.859 for administrative costs. ]
[(2)] (1) [For biennia beginning on or after July 1, 2019, ] A school district may not use more than
[four] five percent of an apportionment under ORS 327.859 for administrative costs.
[(3)] (2) A school district may not use an apportionment to administer activities not directly
related to the programs, opportunities and strategies described in ORS 327.865, 327.868 and 327.871.
[(4)] (3) From the portion of the apportionment used for administrative costs, a school district
must conduct an annual analysis of:
(a) Student attendance in grades 9 through 12; and
(b) Disciplinary referrals, suspensions and expulsions in grades 9 through 12 disaggregated by
race and ethnicity.
EARLY WARNING SYSTEM GRANTS
SECTION 8.
ORS 327.367 is amended to read:
327.367. (1) As used in this section, “eligible recipient” means:
Enrolled House Bill 3037 (HB 3037-INTRO) Page 3
(a) A school district;
(b) The Youth Corrections Education Program;
(c) The Juvenile Detention Education Program;
(d) The Oregon School for the Deaf; or
(e) The school district or education service district that is providing the educational
services for an eligible day treatment program or an eligible residential treatment program
for which payment of the costs of education is provided as described in ORS 343.961 (2).
[(1)] (2) In addition to those moneys distributed through the State School Fund, the Department
of Education shall award grants from the Statewide Education Initiatives Account to [ school
districts] eligible recipients to implement the early warning system described in this section that
[assist] assists students in [ graduating from high school ] receiving a high school diploma .
[(2)(a)] (3)(a) A system funded by a grant awarded under this section must enable [ school dis-
tricts,] eligible recipients, students, students’ families, educators, school counselors and community
organizations to take necessary corrective actions to assist students in [ graduating from high
school] receiving a high school diploma .
(b) Corrective actions that may be taken must be based on research on [ graduation] rates of
receiving high school diplomas and on reports of individual students related to:
(A) The student’s attendance;
(B) The student’s behavior at school or in the educational program that the student
attends;
(C) The student’s academic or skill progress; and
(D) Any other factors identified by the State Board of Education by rule.
[(3)] (4) The department shall assist [ school districts ] eligible recipients that may apply for a
grant under this section, that have applied for a grant under this section or that have received a
grant under this section, as appropriate, by:
(a) Providing technical assistance to [ school districts ] eligible recipients to ensure that the
[school districts ] eligible recipients understand the goals and objectives of the system;
(b) Assisting [ school districts ] eligible recipients in developing expertise in assisting students
in [ graduating from high school ] receiving a high school diploma and developing a culture that
encourages and assists students in [ graduating from high school ] receiving a high school diploma ;
(c) Identifying meaningful predictive indicators of [ high school graduation ] receiving a high
school diploma;
(d) Developing local communication systems among students, students’ families, educators and
community organizations to assist students in [ graduating from high school ] receiving a high school
diploma;
(e) Identifying and developing interventions [ at school, at home and in the community ] to meet
students’ needs , including interventions at school or in the educational program, at home or
in the community ; and
(f) Reviewing existing policies and practices to:
(A) Expand policies and practices that encourage [ high school graduation ] students to receive
a high school diploma ; and
(B) Eliminate or modify policies and practices that may provide a disincentive to [ graduate from
high school ] receive a high school diploma .
[(4) The amount of each grant awarded under this section shall equal the school district’s ADM
as defined in ORS 327.006 × $3.]
(5)(a) Except as provided by paragraph (c) of this subsection, the amount of a grant
awarded under this section = the eligible recipient’s ADMw × (the total amount available
for distribution as grants in each biennium ÷ the total ADMw of all eligible recipients).
(b) For purposes of this subsection and except as provided by paragraph (c) of this sub-
section, ADMw equals:
(A) For school districts, the ADMw as calculated under ORS 327.013.
Enrolled House Bill 3037 (HB 3037-INTRO) Page 4
(B) For an educational program under the Youth Corrections Education Program or the
Juvenile Detention Education Program, the ADMw as calculated under ORS 327.026.
(C) For the Oregon School for the Deaf, an eligible day treatment program or an eligible
residential treatment program, the ADMw as calculated by multiplying the average daily
membership by 2.0.
(c) The amount of a grant awarded under this section may be adjusted by the department
to ensure that each site of the Youth Corrections Education Program, the Juvenile De-
tention Education Program, an eligible day treatment program and an eligible residential
treatment program receives a grant amount that is no less than any minimum grant amount
established for school districts.
[(5)] (6) The State Board of Education shall adopt any rules necessary for the administration
of the grants described in this section.
SECTION 9. The amendments to ORS 327.367 by section 8 of this 2025 Act apply to grants
awarded on or after July 1, 2025.
ELIGIBILITY FOR STUDENT INVESTMENT ACCOUNT GRANTS
SECTION 10. ORS 327.185 is amended to read:
327.185. (1) As used in this section, “eligible applicant” means any of the following entities:
(a) Common school districts and union high school districts.
(b) The Youth Corrections Education Program or the Juvenile Detention Education Program.
(c) Public charter schools that are not virtual public charter schools, as defined in ORS 338.005,
and that have a student population of which:
(A) At least 35 percent of the student population is composed of students from the following
student groups:
(i) Economically disadvantaged, as described in ORS 327.180 (2)(b)(A);
(ii) Racial or ethnic groups that have historically experienced academic disparities, as described
in ORS 327.180 (2)(b)(B); or
(iii) Students with disabilities, as described in ORS 327.180 (2)(b)(C); and
(B) The percentage of the students from student groups identified under subparagraph (A) of this
paragraph is greater than or equal to:
(i) The percentage of all students in the school district who are economically disadvantaged, if
eligibility is determined based on the percentage of students who are economically disadvantaged;
(ii) The percentage of all students in the school district who are from racial or ethnic groups
that have historically experienced academic disparities, if eligibility is determined based on the
percentage of students who are from those racial or ethnic groups; or
(iii) The percentage of all students in the school district who are disabled, if eligibility is de-
termined based on the percentage of students who are disabled.
(d) The Oregon School for the Deaf.
(e) The school district or education service district that is providing the educational
services for an eligible day treatment program or an eligible residential treatment program
for which payment of the costs of education is provided as described in ORS 343.961 (2).
(2)(a) Eligible applicants may apply for a grant from the Student Investment Account to receive
a distribution under ORS 327.190.
(b) Notwithstanding ORS 338.155 (9), a public charter school that is not an eligible applicant
may not apply for a grant under this section.
(3) Prior to preparing a grant application, an eligible applicant must:
(a) If the eligible applicant is a school district, determine whether the school district will allow
public charter schools sponsored by, or located within, the school district to participate in the grant
application and the grant agreement.
Enrolled House Bill 3037 (HB 3037-INTRO) Page 5
(b) If the eligible applicant is a public charter school, determine whether the public charter
school intends to apply for a grant and provide notice of that intent to the school district in which
the public charter school is located and to the Department of Education.
(4)(a) If an eligible applicant is a school district and decides to include public charter schools
in the grant application and grant agreement, the school district must provide all public charter
schools sponsored by, or located within, the school district the opportunity to participate in the
grant application and grant agreement.
(b)(A) A public charter school is not required to participate in the grant application and grant
agreement of a school district.
(B) If a public charter school does not participate in a grant application and grant agreement
under this subsection:
(i) The ADMw of the public charter school may not be used in the calculation of the school
district ADMw for grants distributed under ORS 327.195; and
(ii) The public charter school is not entitled to any grant moneys distributed under ORS 327.195.
(C) If a public charter school participates in a grant application and grant agreement under this
subsection:
(i) The public charter school and school district shall enter into an agreement for the distrib-
ution of moneys or the provision of services, including any accountability measures required of the
public charter school by the school district;
(ii) The ADMw of the public charter school shall be used in the calculation of the school district
ADMw for grants distributed under ORS 327.195; and
(iii) The public charter school is entitled to any grant moneys or services provided for in the
agreement entered into under this subparagraph.
(5)(a) For the purpose of preparing a grant application, an eligible applicant must determine:
(A) Which of the allowed uses identified in ORS 327.180 (3) the eligible applicant will fund with
grant moneys; and
(B) Which of the eligible uses identified under subparagraph (A) of this paragraph the eligible
applicant will designate to meeting student mental and behavioral health needs.
(b) An eligible applicant shall make the determinations required under paragraph (a) of this
subsection by:
(A) Engaging in strategic planning; and
(B) Considering the recommendations of the Quality Education Commission established under
ORS 327.500 and recommendations from the advisory groups formed by the Department of Education
for the purposes of the statewide education plans developed and implemented by the department.
(6)(a) The strategic planning required under subsection (5) of this section must include:
(A) A completed needs assessment, as described in ORS 329.095;
(B) An analysis of the potential academic impact, both for the students of the eligible applicant
and for student groups identified in ORS 327.180 (2)(b), from the allowed uses that would be funded
by grant moneys; and
(C) The creation of budgets for the allowed uses that would be funded by grant moneys.
(b) The strategic planning required under subsection (5) of this section must take into consid-
eration:
(A) Input from the community of the eligible applicant, including school employees, students
from student groups identified in ORS 327.180 (2)(b) and parents of those students; and
(B) Data collected by the eligible applicant to enable the eligible applicant to make equity-based
decisions.
(7) Based on the strategic planning described in subsection (6) of this section, the eligible ap-
plicant shall develop a four-year plan for the use of grant moneys. The plan must be updated every
two years and must:
(a) Identify which allowed uses identified in ORS 327.180 (3) will be funded with grant moneys
and which of those uses will be designated to meet student mental and behavioral health needs.
Enrolled House Bill 3037 (HB 3037-INTRO)Page 6
(b) Describe how the allowed uses identified under paragraph (a) of this subsection will be used
to:
(A) Meet students’ mental and behavioral health needs;
(B) Increase academic achievement for students of the eligible applicant; and
(C) Reduce academic disparities for student groups identified in ORS 327.180 (2)(b) who are
served by the eligible applicant, and identify which of those student groups will benefit from the
allowed uses that are being funded with grant moneys.
(c) Include the budgets for the allowed uses to be funded with grant moneys.
(d) Be approved by the governing body of the eligible applicant at an open meeting, following:
(A) Provision of the plan at the main office of the eligible applicant and on the eligible
applicant’s website;
(B) Oral presentation of the plan by an administrator of the eligible applicant to the governing
body of the eligible applicant; and
(C) Opportunity for the public to comment on the plan at an open meeting.
(e) Be a part of the local district continuous improvement plan described in ORS 329.095, if the
eligible applicant is a school district.
(8) To apply for a grant, an eligible applicant must submit an application every two years in a
format and according to timelines prescribed by the Department of Education. The application must
include:
(a) A completed needs assessment, as described in ORS 329.095;
(b) The plan developed under subsection (7) of this section; and
(c) Budget estimates for each of the allowed uses identified in the plan developed under sub-
section (7) of this section that will be funded by grant moneys.
SECTION 11.
ORS 327.195 is amended to read:
327.195. (1)(a) Except as provided by paragraph (d) of this subsection, the amount of a grant
awarded from the Student Investment Account = the grant recipient’s ADMw × (the total amount
available for distribution as grants in each biennium ÷ the total ADMw of all grant recipients).
(b) For purposes of this subsection and except as provided by paragraph (c) of this subsection,
ADMw equals:
(A) For school districts, the ADMw as calculated under ORS 327.013, except that the additional
amount allowed for students who are in poverty families, as determined under ORS 327.013
(1)(c)(A)(v)(I), shall be 0.5.
(B) For an educational program under the Youth Corrections Education Program or the Juvenile
Detention Education Program, [ as provided in ] the ADMw as calculated under ORS 327.026.
(C) For the Oregon School for the Deaf, an eligible day treatment program or an eligible
residential treatment program, the ADMw as calculated by multiplying the average daily
membership by 2.0.
(c) When calculating ADMw for a school district, the Department of Education shall remove
from the calculation any amounts that are attributable to:
(A) A virtual public charter school, as defined in ORS 338.005;
(B) A public charter school that provided notice of the public charter school’s intent to apply
for a grant as an eligible applicant; and
(C) A public charter school sponsored by, or located within, the school district that did not
participate in the grant application or grant agreement.
(d) The amount of a grant distributed under this section may be adjusted by the department to
ensure that:
(A) A grant recipient does not receive any moneys for uses that are not allowed uses under ORS
327.180 (3).
[(B) A school district with an ADMw of 50 or less receives a minimum grant amount. ]
[(C)] (B) Each site of the Youth Corrections Education Program , [ and] the Juvenile Detention
Education Program , an eligible day treatment program and an eligible residential treatment
Enrolled House Bill 3037 (HB 3037-INTRO) Page 7
program receives a grant amount that is no less than [ the] any minimum grant amount [ provided
to a school district under subparagraph (B) of this paragraph ] established for school districts .
(2) The State Board of Education shall adopt any rules necessary for the distribution of grants
under this section, including establishing[ :]
[(a) The minimum grant amounts under subsection (1)(d) of this section; and ]
[(b)] any percentages and timelines for installment payments and adjustments of those install-
ment payments.
(3) A grant recipient shall deposit the grant moneys the grant recipient receives under this
section into a separate account and shall apply amounts in that account as provided by the grant
agreement.
SECTION 12. ORS 327.254, as amended by section 25, chapter 95, Oregon Laws 2024, is
amended to read:
327.254. (1) The Department of Education shall use moneys in the Statewide Education Initi-
atives Account to provide funding for statewide education initiatives, including:
(a) Funding the High School Graduation and College and Career Readiness Act at the levels
prescribed by ORS 327.856;
(b) Expanding school breakfast and lunch programs;
(c) Operating youth reengagement programs or providing youth reengagement services;
(d) Establishing and maintaining the Statewide School Safety and Prevention System under ORS
339.341;
(e) Developing and providing statewide equity initiatives, including any statewide education plan
developed and implemented by the department;
(f) Providing summer learning programs at schools that are considered high poverty under Title
I of the federal Elementary and Secondary Education Act of 1965;
(g) Funding early warning systems to assist students in graduating from high school, as de-
scribed in ORS 327.367;
(h) Developing and implementing professional development programs and training programs, in-
cluding programs that increase educator diversity and retain diverse educators;
(i) Planning for increased transparency and accountability in the public education system of this
state;
(j) Providing additional funding to school districts participating in the intensive program under
ORS 327.222;
(k) Providing technical assistance, including costs incurred for:
(A) The coaching program described in ORS 327.214; and
(B) The intensive program described in ORS 327.222, including costs for student success teams;
(L) Funding public charter schools, as described in ORS 327.362;
(m) Funding the Early Literacy Success School Grant program, as provided by ORS 327.833;
(n) Funding the Early Literacy Success Community Grant program, as established by ORS
327.843;
(o) Funding any additional amounts for approved recovery schools, as provided by rules of the
State Board of Education adopted under ORS 327.029;
(p) Funding education service districts, as described in subsection (2) of this section;
(q) Funding the Youth Corrections Education Program and the Juvenile Detention Education
Program through the Juvenile Justice Education Fund established under section 22, chapter 95,
Oregon Laws 2024, when necessary as provided by section 23, chapter 95, Oregon Laws 2024; and
(r) Funding costs incurred by the department in implementing this section and ORS 327.175 to
327.235 and 327.274.
(2)(a) The amount of a distribution to an education service district under this section shall be
made as provided by paragraph (b) of this subsection after calculating the following for each edu-
cation service district:
(A) One percent of the total amount available for distribution to education service districts in
each biennium.
Enrolled House Bill 3037 (HB 3037-INTRO) Page 8
(B) The education service district’s ADMw × (the total amount available for distribution to
education service districts in each biennium ÷ the total ADMw of all education service districts
that receive a distribution).
(b) The amount of the distribution to an education service district shall be the greater of the
amounts calculated under paragraph (a) of this subsection, except that, for distributions made as
provided by paragraph (a)(B) of this subsection, the total amount available for distribution to edu-
cation service districts shall be the amount remaining after any distributions required under para-
graph (a)(A) of this subsection have been made.
(c) For purposes of this subsection, ADMw equals the ADMw as calculated under ORS 327.013,
except that the additional amount allowed for students who are in poverty families, as determined
under ORS 327.013 (1)(c)(A)(v)(I), shall be 0.5.
(d) An education service district shall use moneys received under this section as provided by a
plan developed by the school districts located within the education service district. A school district
that declines to participate in the development of the plan or that has withdrawn from an education
service district as provided by ORS 334.015 is not entitled to any moneys distributed to the educa-
tion service district under this subsection.
(e) A plan developed under this subsection must:
(A) Align with and support the meeting of performance growth targets established for recipients
of moneys under ORS 327.195 that are located within the education service district;
(B) Include the provision, to recipients of moneys under ORS 327.195 that are located within the
education service district, of technical assistance in developing, implementing and reviewing a plan
for receiving a grant from the Student Investment Account;
(C) Provide for coordination with the department in administering and providing technical as-
sistance to recipients of moneys under ORS 327.195 that are located within the education service
district, including coordinating any coaching programs established under ORS 327.214; and
(D) Be adopted and amended as provided for local service plans under ORS 334.175 and approved
by the department.
(f) For the purposes of paragraph (e) of this subsection, recipients of moneys under ORS 327.195
that are located within the education service district include, as applicable:
(A) Common school districts and union high school districts;
(B) Any charter school that is an eligible applicant, as defined in ORS 327.185; [and]
(C) The Youth Corrections Education Program or the Juvenile Detention Education
Program[.];
(D) The Oregon School for the Deaf; and
(E) The school district or education service district that is providing the educational
services for an eligible day treatment program or an eligible residential treatment program
for which payment of the costs of education is provided as described in ORS 343.961 (2).
(g) Each education service district must submit an annual report to the department that:
(A) Describes how the education service district spent moneys received under this subsection;
and
(B) Includes an evaluation of the education service district’s compliance with the plan from the
superintendent of each school district that participated in the development of the plan.
(3) The State Board of Education shall adopt rules necessary for the distribution of moneys un-
der this section.
REPORTING REQUIREMENTS FOR ENGLISH LANGUAGE LEARNER PROGRAM GRANTS
SECTION 13.
ORS 327.016 is amended to read:
327.016. (1) The Department of Education shall prepare an annual report that:
(a) Identifies the total amounts that are:
(A) Allocated to each school district from the State School Fund for students eligible for and
enrolled in an English language learner program as provided by ORS 327.013 (1)(c)(A)(ii);
Enrolled House Bill 3037 (HB 3037-INTRO)Page 9
(B) Expended from the amounts identified in subparagraph (A) of this paragraph for students in
average daily membership who are eligible for and enrolled in an English language learner program;
and
(C) Expended as described in subparagraph (B) of this paragraph by category of expenditure, as
identified and defined by the State Board of Education by rule.
(b) Summarizes the progress for each school district on meeting objectives and the needs of
students eligible for and enrolled in an English language learner program.
(c) Provides information on the demographics of students in English language learner programs
in each school district, including:
(A) The average number of years students have been enrolled in an English language learner
program;
(B) The average number of years the students have attended their current schools;
(C) The percentage of students who also receive special education and related services; and
(D) Any other information identified by the department.
(2) The report prepared under subsection (1) of this section must:
(a) Be made available on the department’s website by June 30 of each year;
(b) Be provided to each school district board by [September] December 1 of each year and made
available at the school district’s main office and on the school district’s website; and
(c) Cover the school year ending June 30 of the prior year.
(3) Prior to January 1 of each odd-numbered year, the department shall submit to the interim
legislative committees on education a summary of the two most recent reports prepared under sub-
section (1) of this section.
MISCELLANEOUS
SECTION 14.
The unit captions used in this 2025 Act are provided only for the conven-
ience of the reader and do not become part of the statutory law of this state or express any
legislative intent in the enactment of this 2025 Act.
SECTION 15. This 2025 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect
July 1, 2025.
Enrolled House Bill 3037 (HB 3037-INTRO) Page 10
Passed by House June 23, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 24, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 3037 (HB 3037-INTRO) Page 11