The measure converts the education endowment fund into an education stability fund by changing the name of the fund and specifying conditions under which moneys may be appropriated from the principal of the fund.
Currently 15 percent of the net proceeds of the state lottery are deposited into the education endowment fund. The principal of the fund is invested as provided by law. The legislature may not expend the principal of the fund. Earnings on moneys in the fund may be expended on public education. State law provides that the earnings shall be expended on repayment of bonds to finance kindergarten through grade 12 public education, on need-based scholarships for higher education students and on other public education purposes.
The measure allows the legislature to expend the principal of the fund
for public education if there is an economic downturn and the expenditure
is approved by three-fifths of the members in each house of the legislature.
The measure also allows the legislature to expend the principal of the
fund for public education if the Governor declares an emergency and the
expenditure is approved by three-fifths of the members in each house of
The measure provides for a transfer on May 1, 2003, of $220 million from the fund to the State School Fund to be used for kindergarten through grade 12 public education. After the May 1, 2003, transfer, the fund will have a balance of approximately $58 million that will increase annually by about $50 million.
The measure becomes operative on April 30, 2003.
|Committee Members:||Appointed By:|
|Senator Charles Starr||President of the Senate|
|Representative Lane Shetterly||Speaker of the House|
|Representative Mary Nolan||Secretary of State|
|Senator Cliff Trow||Secretary of State|
|Robert "Ozzie" Rose||Members of the Committee|
(This committee was appointed to provide an impartial explanation
of the ballot measure pursuant to ORS 251.215.)
Arguments in Favor
Arguments in Opposition
Legislative Argument in Support
Table of Contents