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HIGHER EDUCATION COORDINATING COMMISSION

OFFICE OF COMMUNITY COLLEGES AND WORKFORCE DEVELOPMENT





 

DIVISION 2
COMMUNITY COLLEGE FUNDING
Community College Support Fund
Distribution
589-002-0100
Community College Support Fund Distribution
Purpose Statement:
(1) It is in the state's interest
to support a strong local community college system that meets local, regional and
state economic and workforce development needs. Short and long-term interests include
the consideration of such things as comparable District funding capability, maintaining
small districts as a means of educational access and stable, predictable funding.
Oregon's community college distribution formula is designed to provide a financial
foundation to support undergraduate and lower-division education, career technical
education, remedial education, local response to workforce training, and other educational
services necessary at the local and state level.
(2) The Commission through the
authority vested in it by ORS 351.735, uses this rule to state clearly and concisely
what the statewide interests are for Oregon community colleges and students through
the adoption of a policy-driven distribution formula. The overarching policy, chosen
by the Commission, has been structured to support access, stability and quality,
and to do so with equity for Oregon students. Principles which support these policies
include:
(a) Access is supported by having
the funding follow the student to the college which they are attending.
(b) Quality is supported when
adequate funding per student is available.
(c) Growth management is a tool
to prevent erosion of the level of funding per student.
(d) Equity is supported by the
equalization of public resources distributed per student.
(e) Stability is supported by
buffering fluctuations in student enrollment through growth management and by using
a three-year weighted average of students by college to distribute state funds.
[ED. NOTE: Tables referenced are available
from the agency.]
Stat. Auth.: ORS 326.051,
341.015, 341.022, 341.317, 341.440, 341.525, 341.528, 341.626 & 341.665
Stats. Implemented: ORS 341.015,
341.022, 341.317, 341.440, 341.525, 341.528, 341.626 & 341.665
Hist.: 1EB 9-1979, f. &
ef. 6-11-79; EB 12-1991, f. & cert. ef. 7-19-91; Renumbered from 581-043-0260;
ODE 27-2000, f. & cert. ef. 10-30-00; DCCWD 1-2001, f. & cert. ef. 3-21-01,
Renumbered from 581-041-0200; DCCWD 2-2001, f. & cert. ef. 5-7-01; DCCWD 3-2002,
f. & cert. ef. 6-5-02; DCCWD 7-2002(Temp), f. & cert. ef. 12-16-02 thru
6-5-03; DCCWD 3-2003, f. & cert. ef. 5-14-03; DCCWD 1-2004, f. & cert. ef.
7-1-04; DCCWD 1-2005, f. & cert. ef. 7-13-05; DCCWD 2-2006(Temp), f. & cert.
ef. 6-15-06 thru 11-30-06; DCCWD 6-2006, f. 10-3-06, cert. ef. 10-4-06; DCCWD 8-2006,
f. 12-13-06, cert. ef. 12-15-06; DCCWD 2-2007, f. & cert. ef. 7-6-07; DCCWD
4-2007, f. & cert. ef. 10-1-07; DCCWD 3-2009(Temp), f. & cert. ef. 8-5-09
thru 1-31-10; DCCWD 5-2009, f. & cert. ef. 10-28-09; DCCWD 1-2011, f. &
cert. ef. 4-20-11; DCCWD 1-2012(Temp), f. & cert. ef. 7-17-12 thru 1-10-13;
DCCWD 3-2012, f. & cert. ef. 12-26-12; DCCWD 3-2013, f. & cert. ef. 6-11-13;
DCCWD 5-2015, f. & cert. ef. 10-30-15
589-002-0110
Definitions
The following definitions apply to OAR
589-002-0100 through 589-002-0130.
(1) “Total Public Resources
(TPR)” is what the Community College Support Fund formula considers 100% of
the next year's imposed property tax revenue and the General Fund appropriation
from the legislature. TPR does not include tuition and fees paid by students.
(2) “Base Payment”
is an allocation made from the Community College Support Fund which provides funding
for basic community college district operations that are essential and do not vary
in direct proportion to the districts’ Full-Time Equivalent (FTE) student
enrollment. The base allocation increases stability and predictability of funding
for individual colleges.
(3) “Equalization”
means equal public resource support per funded FTE, regardless of community college
district, and exclusive of the base. Equalization is measured by dividing Total
Public Resources, exclusive of the base, by funded FTE.
(4) “Property tax revenues”
means the amount determined by the Department of Revenue to be imposed on local
property following the application of limits imposed by sections 11(b)(1) through
11(b)(3), Article XI, of the Oregon Constitution, and those limits imposed by legislation
implementing Ballot Measure 50. This amount becomes the basis for operation of the
funding formula without regard to uncollectible taxes, or taxes collected from previous
years. Taxes levied or imposed by a community college district to provide a public
library system shall be excluded from the definition of property taxes in this rule.
Property tax revenues raised through voter approval of any local option or capital
construction levy are not to be included as a resource to be distributed through
the funding formula.
(5) “Community College
Support Fund (CCSF)” is funding received through the state's General Fund
appropriation and distributed to the community college districts for funding educational
programs.
(6) “Full-Time Equivalent
(FTE) student” for the purpose of receiving state reimbursement, means a student
who carries 510 clock hours over three terms of instruction for all terms including
a fall 12-week term. All colleges with an 11-week fall term will have their fall
term clock hours increased to the equivalent 12-week hours for the purpose of calculating
reimbursable FTE.
(7) “Total Reimbursable
FTE” means full-time equivalent students that are eligible for state reimbursement.
These students must receive instruction from community college districts through
either a contracted out-of district (COD) agreement described in OAR 589-002-0600,
an agreement to provide services to state penitentiary or correctional institution
inmates described in OAR 589-002-0700, or are CCSF reimbursable FTE, described in
Section 8 of this rule and in OAR 589-002-0110 Sections (2) through (5).
(8) “CCSF Reimbursable
FTE” means full-time equivalent students that are eligible, as described in
OAR 589-002-0110 Sections (2) through (5) of this rule, for state funding through
the CCSF Funding Distribution Formula, before the application of the Annual Growth
Factor (AGF).
(9) “Contracted Out-of-District
(COD) Reimbursable FTE” means full-time equivalent students that are not residents
in the community college district that they are attending and for which the community
college district has a contract to provide educational services with an entity in
the geographic area from which the student resides. COD reimbursable FTE must meet
all other requirements of a CCSF reimbursable FTE. The community college district
must have a contract in place with the Department of Community Colleges and Workforce
Development in order to receive reimbursement.
(10) “Fundable FTE”
is the number of full-time equivalent students that are at or below each community
college district’s FTE Cap. Fundable FTE is the lesser of either the CCSF
reimbursable FTE or the FTE cap. This number is used in the three-year weighted
average calculation that determines a community college district’s funded
FTE as described in Section 11 of this rule.
(11) “Funded FTE”
is the community college district’s number of full-time equivalent students
used in the formula to distribute the CCSF funding for each community college district.
This number is buffered to prevent significant changes in a community college district’s
funding due to variability in student enrollment. It is calculated using a three-year
weighted average of fundable FTE with the first year prior to current fundable FTE
weighted at 40%, second year prior to current fundable FTE weighted at 30%, and
third year prior to current fundable FTE weighted at 30%.
(12) “Total Funded FTE"
is the sum of all community college districts’ funded FTE for a fiscal year.
(13) “FTE Cap” is
the maximum number of CCSF reimbursable FTE per community college district, which
may be included in the funding formula calculation. The FTE cap is determined by
applying the annual growth factor and may be adjusted by the preliminary FTE cap
as described in Section 14.
(14) “Preliminary FTE
Cap” is a tool that allows a community college district to recover fundable
FTE within one year, if the district’s CCSF reimbursable FTE is less than
the FTE cap. There are two preliminary FTE caps. The first is based on the FTE cap
from one year prior and the second is based on the prior year’s fundable FTE.
The annual growth factor (as defined in Section 19 below) is applied to each. The
current year’s FTE cap is the greater of these two numbers.
(15) “Growth Management”
means the application of the Growth Management Component in combination with each
community college district’s FTE cap.
(16) “Biennial Growth
Management Component” is the percent change, from one biennium to the next,
of the total number of FTE for all community college districts that could be included
in the funding formula without reducing resources available per FTE. The biennial
growth management component is determined by the amount of total public resources
available for the current biennium compared to the prior biennium and the estimated
increased cost of FTE.
(17) “Higher Education
Coordinating Commission’s Biennial Quality Growth Factor” is a policy
lever that allows the number of FTE that will be counted for funding purposes to
be above or below the Biennial Growth Management Component.
(18) “Total Biennial Growth
Management Component” is the sum of the Biennial Growth Management Component
and the Higher Education Coordinating Commission’s Biennial Quality Growth
Factor.
(19) “Annual Growth Factor
(AGF)” is one-half of the Biennial Growth Management Component.
Stat. Auth.: ORS 326.051, 341.015, 341.022,
341.317, 341.440, 341.525, 341.528, 341.626 & 341.665
Stats. Implemented: ORS 341.626
Hist.: DCCWD 1-2012(Temp),
f. & cert. ef. 7-17-12 thru 1-10-13; DCCWD 3-2012, f. & cert. ef. 12-26-12;
DCCWD 3-2013, f. & cert. ef. 6-11-13; DCCWD 3-2015(Temp), f. & cert. ef.
10-12-15 thru 4-8-16; DCCWD 5-2015, f. & cert. ef. 10-30-15
589-002-0120
Community College Support Fund Distribution
Methodology
(1) The Community College Support Fund
shall be distributed in equal payments as follows:
(a) For the first year of the
biennium, August 15, October 15, January 15, and April 15;
(b) For the second year of the
biennium, August 15, October 15, and January 15;
(c) The final payment of each
biennium is deferred until July 15 of the following biennium as directed by the
71st Oregon Legislative Assembly.
(d) Should any of the dates
set forth above occur on a weekend, payment shall be made on the next business day.
(e) All payments, made before
actual property taxes imposed by each district are certified by the Oregon Department
of Revenue, shall be based on the Office’s best estimate of quarterly entitlement
using property tax revenue projections. Payments shall be recalculated each year
as actual property tax revenues become available from the Oregon Department of Revenue
and any adjustments will be made in the final payment(s) of the fiscal year.
(2) Community college districts
shall be required to submit enrollment reports in the format specified by the Director,
including numbers of clock hours realized for all coursework, in a term-end enrollment
report by the Friday of the sixth week following the close of each term. If reports
are outstanding at the time of the quarterly payments, payment to the district(s)
not reporting may be delayed at the discretion of the Director.
(a) All payments, made before
actual Full-Time Equivalent student enrollment data are available, shall be based
on the Office’s best estimate of quarterly entitlement using student enrollment
data from previous years.
(b) Payments shall be recalculated
each year as Full-Time Equivalent student enrollment data become available and any
adjustments will be made in the fiscal year.
(3) Reimbursement from the Community
College Support Fund shall be made for career technical, lower-division collegiate,
developmental education and other courses approved by the Commission in accordance
with OAR 589-006-0100 through 589-006-0400. State reimbursement is not available
for hobby and recreation courses as defined in 589-006-0400.
(4) Residents of the State of
Oregon and the states of Idaho, Washington, Nevada, and California shall be counted
as part of each community college district’s CCSF reimbursable FTE, but only
for those students who take part in coursework offered within Oregon's boundaries.
(5) State funding for community
college district operations is appropriated by the legislature on a biennial basis
to the Community College Support Fund. The amount of state funds available for each
biennium and for distribution through the funding formula shall be calculated based
on the following:
(a) Funds to support services
provided to inmates of state penitentiary and correctional institutions by community
college districts shall be subtracted from the amount allocated to the Community
College Support Fund before the formula is calculated. The amount available for
services provided to inmates shall be equal to the funding amount in the preceding
biennium, except as adjusted to reflect the same percentage increase or decrease
realized in the overall Community College Support Fund appropriation. The distribution
method of CCSF funding for individual state penitentiary and correction institution
programs provided by community college districts will be determined in consultation
between the Commission and the Department of Corrections.
(b) Funds to support contracted
out-of-district (COD) programs described in OAR 589-002-0600 shall be subtracted
from the amount allocated to the Community College Support Fund before the formula
is calculated.
(A) A community college district
providing contracted out-of-district services will receive an allocation equal to
the college's number of reimbursable COD FTE multiplied by the statewide average
of non-base community college support funds per total funded FTE. The average funds
per total funded FTE is based on the same year COD services are provided.
(B) The allocation is distributed
after the reimbursable COD FTE has been reported to CCWD for the full academic year.
An adjustment to the allocation may be made if the final audited FTE is significantly
different than the COD FTE from which the allocation was made.
(C) Beginning July 1, 2014,
to be eligible for a COD allocation, each participating community college district
must:
(i) Provide the Office with
a copy of the agreement between the community college district and the local participating
entity by October 1st of each service year.
(ii) Enter into a contract with
the Office by January 1st of the service year for a COD allocation payment.
(iii) Follow all requirements
found in OAR 589-002-0600.
(D) Section (5)(b)(A) and (B)
of this rule applies to COD contracts that were in effect starting with the 2012–13
fiscal year.
(c) Funds to support targeted
investments such as distributed learning shall be subtracted from the amount allocated
to the Community College Support Fund before the formula is calculated. The amount
available for these investments shall be equal to the funding amount in the preceding
biennium, except as adjusted to reflect the same percentage change to the current
biennium’s total Community College Support Fund appropriation.
(d) Funds remaining in the Community
College Support Fund shall be distributed through the formula as described in Section
6.
(e) State general fund and local
property taxes for territories annexed or formed effective June 1, 1996 or later
shall not be included in the funding formula for the first three years of service.
Additionally, the FTE generated in newly annexed territories shall not impact the
funding formula during the first three years of service. Beginning in the fourth
year, funding will be distributed through the formula as outlined in this rule.
(6) Distribution of funds to
community college districts from the Community College Support Fund shall be accomplished
through a formula, based on the following factors:
(a) Base Payment: Each community
college district shall receive a base payment of $720 for each Weighted Reimbursable
FTE up to 1,100 and $360 per FTE for unrealized enrollments between actual Weighted
Reimbursable FTE and 1,100 FTE. The base payment for each community college district
will be adjusted according to the size of the district. Community college district
size for purposes of this adjustment will be determined each year by the FTE set
forth in section (8)(b) of this rule. The base payment adjustments shall be:
(A) 0 – 750 FTE 1.3513;
(B) 751 – 1,250 FTE 1.2784;
(C) 1,251 – 1,750 FTE
1.2062;
(D) 1,751 – 2,250 FTE
1.1347;
(E) 2,251 – 2,750 FTE
1.0641;
(F) 2,751 – 3,250 FTE
1.0108;
(G) 3,251 – 3,750 FTE
1.0081;
(H) 3,751 – 4,250 FTE
1.0054;
(I) 4,251 – 4,999 FTE
1.0027;
(J) 5,000 or more FTE 1.000.
(b) Student-Centered Funding:
The formula is designed to distribute the Community College Support Fund based on
each community college district’s FTE.
(A) The equalized amount per
FTE is determined by dividing Total Public Resources — excluding base payments,
contracted out-of-district payments, and any other payments directed by the Commission
or the legislature — by funded FTE. The department shall make the calculation
based on submission of FTE reports by community college districts and in accordance
with established FTE principles.
(B) To determine the number
of funded FTE for each community college district, a three-year weighted average
of fundable FTE for each community college district will be used with the first
year prior to current fundable FTE weighted at 40%, second year prior to current
fundable FTE weighted at 30%, and third year prior to current fundable FTE weighted
at 30%.
(c) Beginning with the 2011-13
biennium, a Biennial Growth Management Component is added to the calculation of
each community college district’s funded FTE. The purpose of the Biennial
Growth Management Component is to manage the level of total public resource available
per FTE within the total public resources available.
(A) The methodology for calculating
the base year and subsequent biennial growth management component is displayed in
Table 1 “Community College Support Fund Growth Management Calculation Tables”
and is available through the following hyperlink. [Table not included. See ED. NOTE.]
(B) The calculations that will
implement the Growth Management Component in the CCSF Distribution Formula Model
are available in Table 2. Formula Calculation of Fundable FTE by Community College
District.” [Table not included. See ED. NOTE.]
(C) The Commission has authority,
on a biennial basis to, set the “quality growth factor” that may increase
or decrease the number of FTE that will be counted for funding purposes above or
below the Biennial Growth Management Component. The SBE will consider the following
principles as guidelines for setting the “quality growth factor”:
(i) Balance the desire to support
growth beyond that which is funded through the funding formula distribution model
with the desire to enhance quality by increasing the level of funding provided on
a per-student FTE basis.
(ii) The Total Public Resources
(TPR) per FTE should not erode by more than 5% on an annual basis.
(iii) Where current TPR per
FTE is determined to be insufficient to support the “quality of education”
desired, a growth factor could be established that would increase the TPR per FTE.
(iv) If revenue is significantly
reduced during a biennium, the Commission may reduce the “quality growth factor.”
[ED.NOTE: Tables referenced are available
from the agency.]
Stat. Auth.: ORS 326.051,
341.015, 341.022, 341.317, 341.440, 341.525, 341.528, 341.626 & 341.665
Stats. Implemented: ORS 341.626
Hist.: DCCWD 1-2012(Temp),
f. & cert. ef. 7-17-12 thru 1-10-13; DCCWD 3-2012, f. & cert. ef. 12-26-12;
DCCWD 3-2013, f. & cert. ef. 6-11-13; DCCWD 6-2013(Temp), f. & cert. ef.
12-16-13 thru 6-13-14; DCCWD 3-2014, f. & cert. ef. 3-20-14; DCCWD 2-2015, f.
& cert. ef. 6-15-15; DCCWD 5-2015, f. & cert. ef. 10-30-15
589-002-0130
Commission Strategic Fund
The Commission may establish a strategic
fund.
(1) There are two basic categories
for these funds: incentivized statewide initiatives and activities, and requests
from individual districts for assistance in meeting new requirements and expectations
stemming from legislative change.
(2) The Director will use a
committee of stakeholders and department staff to determine overall priorities for
funding that considers the Commission’s work plan and initiatives.
(3) Strategic funds provided
to incentivize statewide activities or assist community colleges in meeting legislative
expectations are provided only for the biennium in which funding is approved. Strategic
Funds allocated for either purpose will not be considered in the distribution of
funds through the formula described in Section 6 of 589-002-0110 for the current
biennium or future biennia.
(4) Any unused monies remaining
in the current biennium's strategic fund will be allocated through the formula described
in Section 6 of 589-002-0110 at the end of the biennium.
(5) The Director will review,
rank and approve proposals to incentivize statewide activities. After each proposal
is approved, the Director will provide the Commission with a report detailing the
purpose of the activity, the amount of strategic fund monies approved, and the proposal's
merit as assessed under the following parameters:
(a) Purpose of the proposal.
(b) How the activity supports
the initiatives and work plans of the Office and the Commission.
(c) How the activity relates
to the Commission’s Key Performance Measures or other program-specific measures.
(d) If the funding one time
(for this biennium) or will additional funding be needed in the future.
(e) If future funding is needed,
how resources will be obtained and how the activity will be sustainable?
(f) The activity's impact on
the state three years from now and five years from now.
(g) Anticipated changes.
(h) How progress will be measured.
(f) The Office will bring all
requests for assistance in meeting new requirements or expectations stemming from
legislative change to the Commission for discussion and consideration.
(g) The Office will assess the
requests for assistance in meeting new requirements or expectations of the legislature
based on the following parameters:
(A) Purpose of the proposal.
(B) How funds will be used to
sustain or increase enrollment (not supplanting existing funds).
(C) If the funding is one time
(for this biennium) or if additional funding will be needed in the future.
(D) If future funding is needed,
how those resources will be obtained and how the activity is sustainable.
(E) The impact on the community
college three years from now and five years from now.
(F) How progress will be measured.
(h) The Office will provide
a recommendation and reasoning to the Commission on whether the request merits funding.
Stat. Auth.: ORS 326.051, 341.015, 341.022,
341.317, 341.440, 341.525, 341.528, 341.626 & 341.665
Stats. Implemented: ORS 341.015,
341.022, 341.317, 341.440, 341.525, 341.528, 341.626 & 341.665
Hist.: DCCWD 1-2012(Temp),
f. & cert. ef. 7-17-12 thru 1-10-13; DCCWD 3-2012, f. & cert. ef. 12-26-12;
DCCWD 3-2013, f. & cert. ef. 6-11-13; DCCWD 3-2015(Temp), f. & cert. ef.
10-12-15 thru 4-8-16; DCCWD 5-2015, f. & cert. ef. 10-30-15
589-002-0200
State Reimbursement and Student Residency
For the purposes of OAR 589-002-0100, Distribution
of Community College Support Fund:
(1) "Permanent Residence" is
defined as a person's home, to which one intends to return after any absence and
in which one's dependents reside for an unlimited period of time. A permanent residence
shall be verified by specific documentation. Such documentation may include, but
is not limited to, copies of the Oregon Department of Revenue income tax statements;
deeds, bills of sale or other papers indicating ownership by the student or a member
of his or her family of the dwelling in which he or she resides; appropriate Department
of Defense forms indicating that the student took residence in Oregon within one
year of being released from active duty in the armed forces; possession of a driver's
license issued by the State of Oregon; and evidence indicating that a parent or
guardian of a dependent student qualifies as an Oregon resident under this rule.
(2) "Oregon Resident" is defined
as a person who currently maintains a permanent residence in the state and whose
permanent residence has been maintained in Oregon for no less that ninety continuous
days immediately preceding the person's first instructional day of the term (quarter)
for which residency is in question.
(3) Pursuant to ORS 341.492,
and notwithstanding subsection (2) of this section, students who are residents of
Idaho, Washington, California and Nevada and students admitted pursuant to ORS 351.647
shall be considered as residents of Oregon for the purpose of reimbursement.
(4) District policies regarding
student residency for state reimbursement purposes may be subject to the periodic
review and approval of the Commission. In the event that approval is not granted,
the Commission may withhold reimbursement.
Stat. Auth: ORS 326.051 & 341.626
Stats. Implemented: ORS 341.290(7),
341.505, 341.529 & 341.626
Hist.: 1EB 9-1979, f. &
ef. 6-11-79; EB 12-1991, f. & cert. ef. 7-19-91; Renumbered from 581-043-0260;
DCCWD 1-2001, f. & cert. ef. 3-21-01, Renumbered from 581-041-0205; DCCWD 1-2003,
f. & cert. ef. 1-9-03; DCCWD 5-2003, f. & cert. ef. 10-20-03; DCCWD 5-2015,
f. & cert. ef. 10-30-15
589-002-0300
Advanced Payment to Newly Created
Community College District or Service District
A newly created community college district,
or community college service district, shall be assigned by the Commission a base
allocation level for its initial year of operation, based on the projected budget
requirements as set in the feasibility study approved by the Commission. Payments
to the new district for its initial year shall be based on the assigned base allocation.
From operating funds available to the new district, the Director may advance reasonable
sums for organizational expenses. Such an advance may be made only after the new
district has formally adopted a budget. An advance will not serve to increase eligibility
for state operating funds; it is a partial payment of the sum due the new district
from its assigned base allocation in its initial year of operation.
Stat. Auth.: ORS 326.051 & 341.626
Stats. Implemented: ORS 341.626
Hist.: EB 14-1987(Temp),
f. & ef. 7-30-87; EB 5-1988, f. & cert. ef. 1-14-88; EB 23-1989(Temp), f.
& cert. ef. 6-12-89; EB 33-1989, f. & cert. ef. 11-28-89; EB 12-1991, f.
& cert. ef. 7-19-91; Renumbered from 581-043-0266; DCCWD 1-2001, f. & cert.
ef. 3-21-01, Renumbered from 581-041-0210; DCCWD 1-2003, f. & cert. ef. 1-9-03;
DCCWD 5-2003, f. & cert. ef. 10-20-03; DCCWD 5-2015, f. & cert. ef. 10-30-15
Community College Contracted Services(State
Reimbursement)
589-002-0500
Contracts with Agencies, Organizations,
and Industries for Which State Reimbursement is Requested
(1) For the purposes of this rule, the
following definitions apply:
(a) "Contract" is defined as
an agreement between a community college and an agency, organization, individual,
or industry to provide educational services, unless these services are prohibited
by the Director or state statute;
(b) "General fund revenue account"
is defined as that account which includes all revenues related to the college's
basic educational objectives. All revenues not included in some other specific fund
accounts are included in the general fund revenue account. All revenues associated
with the generation of reimbursable full-time equivalent students are included in
the general fund revenue account;
(c) "Special revenue account"
is defined as a fund used to account for the proceeds of specific revenue sources
(other than special assessments, expendable trusts, or for major capital projects)
that are legally restricted to expenditure for specific purposes, including revenues
from specific projects, grants, contracted out-of-district programs, restricted
federal projects, and other contracts for designated purposes;
(d) General education purposes"
is defined as those purposes directly associated with the college's basic educational
objectives.
(2) When community colleges
provide educational services through contracts with agencies, organizations, or
industries for their clients and employees, the colleges are entitled to compensation
for reimbursable costs as defined by the Office and these rules. The community colleges
are responsible for maintaining records that justify their requests for reimbursement
from the Office.
(3) Full-time equivalent (FTE)
attributable to contracts which are accounted for in a college's general fund revenue
account can be added to a college's reimbursable full-time equivalent (RFTE) base
and are subject to the reimbursement formula in OAR 589-002-0100. Any funds received
under the contract from the contracting agency, business, or industry are to be
placed into the college's general fund revenue account, or into the college's special
revenue account with the Director’s approval and must be used for general
education purposes.
Stat. Auth.: ORS 326.051 & 341.626
Stats. Implemented: ORS 341.626
Hist.: 1EB 11-1981, f. 5-6-81,
ef. 5-7-81; EB 12-1991, f. & cert. ef. 7-19-91; Renumbered from 581-043-0255;
DCCWD 1-2001, f. & cert. ef. 3-21-01, Renumbered from 581-041-0220; DCCWD 1-2003,
f. & cert. ef. 1-9-03; DCCWD 5-2003, f. & cert. ef. 10-20-03; DCCWD 5-2015,
f. & cert. ef. 10-30-15
589-002-0600
Access by Unserved Areas to Community
College Services; and Procedures for Contracted Out-of-District Areas
(1) For the purposes of this rule:
(a) "Nondistrict area" is defined
as any geographic area of the state not within a community college district or community
college service district;
(b) "Nondistrict student tuition"
means tuition paid by residents of the nondistrict area;
(c) "Other nondistrict resources"
means gifts, contributions, or grants from individuals, groups, organizations, businesses
or industries. It may include financial support from school districts, education
service districts, municipalities, counties or another public agency or private
organization.
(2) Nothing in this rule is
intended to refer to programs provided through contracts between community colleges
and state correctional facilities. Those contracts are addressed in OAR 589-002-0700.
(3) Nothing in this rule is
intended to refer to programs provided specifically for apprentices, including apprenticeship
services as authorized in ORS 660.157(3). Those programs are addressed in division
7, chapter 589, of the Oregon Administrative Rules.
(4) The Office shall determine
that sufficient interest exists in a nondistrict area for the formation of a local
advisory committee to analyze and advocate community college services when it receives
a petition signed by a minimum of 100 persons, or by five percent of the electors
registered in each county or part of a county within the designated service area,
whichever is less. The Office may ask the county clerk to verify valid petition
signatures:
(a) The Office shall furnish
the petition form and provide advice to the chief petitioner;
(b) In the event that more than
one person seeks chief petitioner status, the Office shall select the party that,
in its judgment, can best represent the diverse interests within the nondistrict
area.
(5) Upon receipt of the petition,
the Office and the chief petitioner shall jointly apply to the county governing
body for the appointment of a local advisory committee. The application shall include
the names of at least ten nominees agreed to by the Office and the chief petitioner
along with brief statements as to the reasons they seek appointment.
(6) Upon application, the governing
body of the county shall appoint a local advisory committee and shall insure that
the committee is broadly representative of the nondistrict area.
(7) The advisory committee shall:
(a) Examine the educational
needs of the residents;
(b) Identify financial and human
resources necessary to meet the educational needs;
(c) Identify entities willing
to contract with the community college provider;
(d) Promote the community college
services desired;
(e) Periodically advise and
consult with the designated staff of the contracting community college and the Office
regarding services requested and provided; and
(f) Submit biennial evaluation
reports to the county governing board, the Office, and the contracting community
college. The Office may, at its discretion, require more frequent evaluation reports.
(8) Community college districts
and community college service districts may submit proposals to the Office, to become
service providers to a nondistrict area:
(a) The proposal shall address
information sent by the Office to the colleges describing the boundaries of the
nondistrict, the population base, and the services requested;
(b) The college district shall
define the elements of its proposed contract including orientation, inservice, materials,
recommended tuition and fees, registration and reporting procedures, transcription,
advising, timelines, supervision, and budget;
(c) The Office shall select
that college that, in its judgment, can best deliver the services requested:
(A) The Office shall make its
judgment after considering geographic factors, prior service history, and local
advisory committee preference;
(B) The community college district
or community college service district selected to be the contractor shall enter
into an agreement with the contracting entity;
(C) The agreement is subject
to the approval of the Commission or its designee.
(9) The contract between the
community college and the local contracting entity must include an annual budget
setting forth both revenue and expenditures for services provided to the nondistrict
area. The budget shall be based on the following conditions:
(a) The budget must be wholly
supported by state funds, nondistrict student tuition, and other nondistrict resources;
(b) While the budget may contain
some in-kind contribution from the nondistrict area, a cash contribution, exclusive
of tuition, is required.
(10) State reimbursement of
costs incurred in providing services subject to the contract will be made based
on the formula described in OAR 589-002-0100. Contracts shall not imply any requirement
on the part of the state for reimbursement beyond the amounts appropriated for such
purposes or beyond the biennial period covered by any such appropriation.
(11) Nondistrict areas operating
under contract to a community college district will be eligible for federal Adult
Basic Education funds based on the distribution method described in the State Plan
for Adult Education and adopted by the Commission.
(12) The cost of education (tuition
and fees) to residents of the nondistrict shall be sufficiently low to enable students
of low and middle income to attend.
(13) The local nondistrict financial
effort shall be in cash:
(a) The contracting entities
may exercise the option of increasing local effort in order to reduce tuition costs
to students;
(b) The minimum cash contribution
that will be required in the budget shall be determined in the following manner:
(A) For the initial contract
year, not less than ten percent of the budgeted expenditures must be supported by
a cash contribution;
(B) For the second contract
year not less than 15 percent of the budgeted expenditures must be supported by
a cash contribution;
(C) For the third contract year,
and all subsequent years, not less than 20 percent of the budgeted expenditures
must be supported by a cash contribution.
(c) Upon request from the college
providing the contracted services, the Director may recommend to the Commission
a waiver or renegotiation of all or a portion of the matching requirement;
(d) A nondistrict area that
contracts for not more than 12 FTE annually shall be subject to a separate cash
contribution standard:
(A) Such areas may enter into
contracts that provide for no cash contribution for the first three years of service;
(B) For the fourth, and all
subsequent years, the cash contribution shall be ten percent of the budgeted expenditures.
(e) Cash may be from any source
except that which is prohibited by rule or regulation.
(14) Contracts are subject to
the review and approval of the Office:
(a) Contracts may be for one
or two years and are renewable. Two-year contracts are subject to annual budget
review and possible adjustment by the Office. The Office can choose to entertain
bids from other potential contractors in the course of this review;
(b) Contracts will be submitted
to the Office by July 1 of the contract year. The Department will determine that
the contracting entity has met the cash requirement, that state-approved courses
are offered, and that the district providing services provides adequate supervision
of the contract;
(c) The Office will evaluate
contracted out-of-district services biennially and submit a report to the Commission
by May of even-numbered years. The evaluation will include number of individuals
served, types of instructional services offered, extent to which the interest and
needs of each area have been met, financial effort of each area, and projected service
in the next biennium.
(15) The community college districts
are responsible for developing the form of the contractual agreements and the method
for recording them.
Stat. Auth.: ORS 326.051 & 341.024
Stats. Implemented: ORS 341.019,
341.021, 341.022 & 341.024
Hist.: 1EB 178, f. 10-18-74,
ef. 11-11-74; 1EB 205, f. 8-20-75, ef. 9-11-75; 1EB 15-1985, f. 7-3-85, ef. 7-5-85;
1EB 178, f. 10-18-74, ef. 11-11-74; EB 21-1987(Temp), f. & ef. 10-7-87; EB 16-1988,
f. & cert. ef. 3-15-88; EB 17-1988, f. & cert. ef. 3-15-88; EB 13-1991,
f. & cert. ef. 7-19-91; Renumbered from 581-043-0240 & 581-043-0250; EB
14-1992, f. & cert. ef. 5-13-92; DCCWD 1-2001, f. & cert. ef. 3-21-01, Renumbered
from 581-042-0400; DCCWD 1-2003, f. & cert. ef. 1-9-03; DCCWD 5-2003, f. &
cert. ef. 10-20-03; DCCWD 5-2015, f. & cert. ef. 10-30-15
589-002-0700
Community College Services for Inmates
of State Penitentiary and Correctional Institutions
(1) Community colleges and the Office may
contract with the Department of Corrections for instructional services to inmates
of any Department-operated correctional facilities.
(2) Any contract between the
Office and the Department of Corrections (State Contract) may include agreements
relating to all statewide staff training and development, program transferability
between correctional institutions, curriculum planning, instructional support, evaluation
and assessment, instruction of the persons with disabilities, employee relations,
and the range of administrative allowances.
(3) Contracts between a provider
community college and an individual correctional institution (Local Contracts) shall
include agreements relating to specific administrative allowances, financial aid
administration, program mix, staffing and budget:
(a) Each Local Contract shall
indicate as its primary objective a functional literacy program; and as its secondary
objective professional and technical education that provides entry-level, marketable
skills;
(b) State reimbursement of costs
incurred in providing services subject to the Local Contracts will be made based
on the formula described in OAR 589-002-0100. Contracts shall not imply any requirement
on the part of the state for reimbursement beyond the amounts appropriated for such
purposes or beyond the biennial period covered by any such appropriation;
(c) Local Contracts will be
eligible for federal Adult Basic Education funds based on the distribution method
described in the State Plan for Adult Education and adopted by the Commission.
(4) All local contracts are
subject to prior approval by the Office and must be submitted prior to August 1
of each year, unless the contract is for a biennial period in which the contract
must be submitted prior to August 1 of the biennial year.
(5) The Office will advise the
Department of Corrections and colleges annually of adjustments in the allocation
of funds appropriated for services in correctional institutions.
(6) The Commission shall review
services to correctional institutions at least once biennially. To facilitate this
review and approval, the Office shall evaluate the contracts with the Department
of Corrections biennially and submit a report to the Commission by May 1 of even-numbered
years. The evaluation shall include the number of individuals served, types of instructional
services offered, extent to which the interest and needs of inmates have been met,
financial effort, and projected service in the next biennium.
Stat. Auth.: ORS 326.051 & 341.626
Stats. Implemented: ORS 341.317
Hist.: EB 27-1987, f. &
ef. 11-17-87; EB 13-1991, f. & cert. ef. 7-19-91; Renumbered from 581-043-0251;
DCCWD 1-2001, f. & cert. ef. 3-21-01, Renumbered from 581-042-0500; DCCWD 1-2003,
f. & cert. ef. 1-9-03; DCCWD 5-2003, f. & cert. ef. 10-20-03; DCCWD 5-2015,
f. & cert. ef. 10-30-15
589-002-0800
Audit Procedures, Adjustments and
Appeals
(1) Notwithstanding the required financial
audit required under the Single Audit Act of 1984, P.L. 98-502, the Office and the
Commission have a statutory duty to manage public funds in a prudent manner. This
duty includes the responsibility to take reasonable action to correct errors and
to prevent the unauthorized use of public funds through the use of periodic audits.
(2) The Office may perform periodic
on-site financial, performance and/or statistical audits of community colleges,
community college service districts, other grantees, and contractors. The audits
shall be conducted to determine compliance with applicable statutes and administrative
rules, instructions, and grant and contract terms.
(3) Requests for audits may
come from the Commission, the Office, community colleges, contractors, or private
citizens. Requests from anyone outside the Office must be recommended by the Commissioner,
and approved by the Commission.
(4) The audit is to be performed
by a person or persons with adequate technical training and proficiency as an auditor.
(5) The Auditor shall prepare
a draft report of the audit and forward it to the audited agency with a letter of
explanation. The letter will explain alternatives available to the agency in responding
to the draft report. The audited agency's responses shall be forwarded within 60
days to the Auditor for evaluation in preparing the final audit report unless an
alternative timeline is mutually agreed upon.
(6) After considering the responses,
if any, from the agency on the draft audit report, the Auditor will prepare a final
audit report. The Director shall forward by letter the final audit report to the
audited agency.
(7) Any exceptions involving
overclaims (overpayments) or underclaims (underpayments) may be processed as follows
unless the Director agrees to an alternative method of adjustment:
(a) Overclaims: The agency will
have the option of remitting the excess claim or reducing accordingly the subsequent
year's entitlement;
(b) Underclaims: The subsequent
year's claim may be adjusted by the amount underclaimed.
(8) The Auditor shall forward
audit reports involving overpayment or underpayment to the Commissioner and to the
audited agency.
(9) If the audited agency disputes
the Office’s determination of an audit exception, the audited agency may appeal
to the Commission in the manner provided for a contested case under ORS 183.413
to 183.470. During an appeal, no action will be taken by the Office to effect reimbursement
until a decision on the audit under appeal has been reached.
Stat. Auth.: ORS 326.051, 341.015 &
341.626
Stats. Implemented: ORS 291.200,
341.015 & 341.626
Hist.: EB 12-1991, f. &
cert. ef. 7-19-91; DCCWD 1-2001, f. & cert. ef. 3-21-01, Renumbered from 581-041-0240;
DCCWD 1-2003, f. & cert. ef. 1-9-03; DCCWD 5-2003, f. & cert. ef. 10-20-03;
DCCWD 5-2015, f. & cert. ef. 10-30-15
589-002-0900
Reporting Requirements
(1) Colleges are required to submit, on
or before January 30 of each year, reports of the revenues and expenditures, classified
according to the format supplied by the Office.
(2) Colleges are required to
submit enrollment reports for fourth week estimates by Friday of the fifth week
of each term, and a term-end enrollment report by Friday of the sixth week following
the close of each term. If reports are outstanding at the time of the quarterly
payments, payment to the college(s) not reporting may be delayed at the discretion
of the Director.
(3) Colleges are required to
submit to the Office one copy of their final audits no later than January 2 of each
year following the year for which the audits are conducted.
(4) Rules governing the classification
of revenue and expenditure accounts for community colleges are contained in the
Community College Accounting Manual published by the Office (latest edition). Budget
documents and audit reports will conform to these rules. The Commission adopts this
publication to fulfill its responsibilities by reference as set forth in ORS 294.393.
[Publications: Publications referenced
are available from the agency.]
Stat. Auth.: ORS 294.352,
341.015 & 341.626
Stats. Implemented: ORS 294.352,
294.356, 341.626 & 341.709
Hist.: 1EB 5-1982, f. &
ef. 2-10-82; EB 10-1987, f. & ef. 5-12-87; EB 14-1987(Temp), f. & ef. 7-30-87;
EB 5-1988, f. & cert. ef. 1-14-88; EB 23-1989(Temp), f. & cert. ef. 6-12-89;
EB 33-1989, f. & cert. ef. 11-28-89; EB 12-1991, f. & cert. ef. 7-19-91;
Renumbered from 581-043-0265 & 581-043-0266; DCCWD 1-2001, f. & cert. ef.
3-21-01, Renumbered from 581-041-0250; DCCWD 5-2015, f. & cert. ef. 10-30-15


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