Financial Status

ESDs operate under the Local Budget Law and their budgets are organized in the same way as local school district budgets. (See section on Understanding the School Budget.)

The major source of revenue for most ESDs has been the property tax. All ESDs have fixed property tax rates created under Oregon’s constitutional property tax limitations (Oregon Constitution, Article 11, Section 11). ESDs also receive state funds from monies appropriated to the State School Fund. In 2004-05, ESDs received $96 million from the State School Fund.

The 2001 Legislature created a new distribution formula for ESDs. Under that formula, ESDs are allocated 95 percent of the operating revenue (State School Fund and local formula resources) distributed to their constituent school districts. Of those resources, ESDs must spend 90 percent on programs and services provided to constituent districts through the resolution process.

ESDs’ other sources of revenue are state and federal grants and contracts with local districts.

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