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House Bill 3427 Heads to Governor’s Desk

May 14, 2019 - On Monday, May 13, Oregon Senators voted to pass House Bill 3427 - the Student Success Act - by a supermajority of 18 yes, 11 no, 1 excused. That vote, combined with the supermajority passage of the act in the House of 37 yes, 21 no, 2 excused, means that once the Governor signs, which she is expected to do within the next few days, the bill will become law 91 days after the session adjourns.

The only thing that could potentially stop or slow that process would be a successful initiative petition that would refer part or all of the bill to a vote, which remains to be seen.

Assuming the Bill does become law, it is expected to raise approximately $1.6 billion in the 2019-21 biennium, and $2 billion in future biennia. Here is some additional information about how the money is expected to come in and be allocated in the 2019-21 biennium:

  • The business tax is projected to raise $1.608 billion in 2019-21. The first collection would likely not take place until the first or second quarter of 2020 (January or April), and it is not anticipated that any disbursements to K-12 education would occur in the 2019-20 school year.
  • The bill allows for a “pre-appropriation” of $200 million from the expected new revenue generated by HB3427 to the State School Fund (SSF) in order to get that allocation to the Governor’s recommended level of $8.972 billion (would be reflected in HB5016, the SSF appropriation bill) for the 2019-21 biennium..
  • There will also be a loss of funds due to the personal income tax cuts that are part of the bill. Those are estimated to total $423 million in 2019-21.
  • That leaves $951.5 million for distribution to the following accounts:
    • Early Learning Account: $190.3 million
    • Statewide Education Initiative Account: $285.5 million
    • Student Investment Account: $475.8 million

Assuming the entire $475.8 million from the Student Investment Account is made available to K-12 education in the 2020-21 school year, HSD could theoretically see up to $16,653,000 in additional funds. If we reversed the 2019-20 school year reductions of $9.6 million, that would leave approximately $7 million for us to reinvest in our system to lower class size, enhance curricular and mental health offerings to students, and increase learning time.

All funds received through the Student Investment Account would be governed by an inclusive public strategic planning process that would include:

  • A complete needs assessment;
  • Input from district stakeholders (e.g. school employees, students from underserved groups, parents of those students);
  • The use of data to enable the district to make equity-based decisions; and
  • Analysis of potential academic impact for students, especially in underserved groups.

These plans must be 4-year plans that are submitted to and approved every 2 years by the Oregon Department of Education.

The other direct source of funding to HSD from the Student Success Act would be through the Statewide Education Initiative Account, which should fully fund Measure 98 - the High School Graduation and College and Career Readiness Act of 2016. Measure 98 has been funded at just over half of its intended $800 per high school student since its implementation in the 2017-19 biennium.

In short, the passage of HB3427 is very positive for the Hillsboro School District; however, its benefits will not be seen in the 2019-20 school year. The coming year will be a difficult one for HSD, but we remain, as always, committed to providing students with the best learning experiences possible to prepare them for success throughout their K-12 journey and beyond.