1| STATE OF OKLAHOMA | | | 2| 1st Session of the 59th Legislature (2023) | | | 3|SENATE BILL 112 By: Thompson (Roger) | | | 4| | | | 5| | | | 6| AS INTRODUCED | | | 7| An Act relating to the State Aid Formula; amending 70 | | O.S. 2021, Section 18-200.1, as last amended by | 8| Section 2, Chapter 488, O.S.L. 2021, which relates to | | the State Aid Formula; amending the transportation | 9| factor; updating statutory language; providing an | | effective date; and declaring an emergency. | 10| | | | 11| | | | 12| | | | 13|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 14| SECTION 1. AMENDATORY 70 O.S. 2021, Section 18-200.1, as | | | 15|last amended by Section 2, Chapter 488, O.S.L. 2021, is amended to | | | 16|read as follows: | | | 17| Section 18-200.1. A. Beginning with the 2022-2023 school year, | | | 18|and each school year thereafter, each school district shall have its | | | 19|initial allocation of State Aid calculated based on the state | | | 20|dedicated revenues actually collected during the preceding fiscal | | | 21|year, the adjusted assessed valuation of the preceding year and the | | | 22|weighted average daily membership for the school district of the | | | 23|preceding school year. Each school district shall submit the | | | 24| | | | Req. No. 1333 Page 1 ___________________________________________________________________________
1|following data based on the first nine (9) weeks, to be used in the | | | 2|calculation of the average daily membership of the school district: | | | 3| 1. Student enrollment by grade level; | | | 4| 2. Pupil category counts; and | | | 5| 3. Transportation supplement data. | | | 6| On or before December 30, the State Department of Education | | | 7|shall determine each school district's current year allocation | | | 8|pursuant to subsection D of this section. The State Department of | | | 9|Education shall complete an audit, using procedures established by | | | 10|the Department, of the student enrollment by grade level data, pupil | | | 11|category counts and transportation supplement data to be used in the | | | 12|State Aid Formula pursuant to subsection D of this section by | | | 13|December 1 and by January 15 shall notify each school district of | | | 14|the district's final State Aid allocation for the current school | | | 15|year. The January payment of State Aid and each subsequent payment | | | 16|for the remainder of the school year shall be based on the final | | | 17|State Aid allocation as calculated in subsection D of this section. | | | 18|Except for reductions made due to the assessment of penalties by the | | | 19|State Department of Education according to law, the January payment | | | 20|of State Aid and each subsequent payment for the remainder of the | | | 21|school year shall not decrease by an amount more than the amount | | | 22|that the current chargeable revenue increases for that district. | | | 23| B. The State Department of Education shall retain not less than | | | 24|one and one-half percent (1 1/2%) of the total funds appropriated | | | Req. No. 1333 Page 2 ___________________________________________________________________________
1|for financial support of schools, to be used to make midyear | | | 2|adjustments in State Aid and which shall be reflected in the final | | | 3|allocations. If the amount of appropriated funds, including the one | | | 4|and one-half percent (1 1/2%) retained, remaining after January 1 of | | | 5|each year is not sufficient to fully fund the final allocations, the | | | 6|Department shall recalculate each school district's remaining | | | 7|allocation pursuant to subsection D of this section using the | | | 8|reduced amount of appropriated funds. | | | 9| C. On and after July 1, 1997, the amount of State Aid each | | | 10|district shall receive shall be the sum of the Foundation Aid, the | | | 11|Salary Incentive Aid and the Transportation Supplement, as adjusted | | | 12|pursuant to the provisions of subsection G of this section and | | | 13|Section 18-112.2 of this title; provided, no district having per | | | 14|pupil revenue in excess of three hundred percent (300%) of the | | | 15|average per pupil revenue of all districts shall receive any State | | | 16|Aid or Supplement in State Aid. | | | 17| The July calculation of per pupil revenue shall be determined by | | | 18|dividing the district's second preceding year's total weighted | | | 19|average daily membership (ADM) into the district's preceding year's | | | 20|total revenues excluding federal revenue, insurance loss payments, | | | 21|reimbursements, recovery of overpayments and refunds, unused | | | 22|reserves, prior expenditures recovered, prior year surpluses, and | | | 23|less the amount of any transfer fees paid in that year. | | | 24| | | | Req. No. 1333 Page 3 ___________________________________________________________________________
1| The December calculation of per pupil revenue shall be | | | 2|determined by dividing the district's preceding year's total | | | 3|weighted average daily membership (ADM) into the district's | | | 4|preceding year's total revenues excluding federal revenue, insurance | | | 5|loss payments, reimbursements, recovery of overpayments and refunds, | | | 6|unused reserves, prior expenditures recovered, prior year surpluses, | | | 7|and less the amount of any transfer fees paid in that year. | | | 8| D. For the 1997-98 school year, and each school year | | | 9|thereafter, Foundation Aid, the Transportation Supplement and Salary | | | 10|Incentive Aid shall be calculated as follows: | | | 11| 1. Foundation Aid shall be determined by subtracting the amount | | | 12|of the Foundation Program Income from the cost of the Foundation | | | 13|Program and adding to this difference the Transportation Supplement. | | | 14| a. The Foundation Program shall be a district's higher | | | 15| weighted average daily membership based on the first | | | 16| nine (9) weeks of the current school year or the | | | 17| preceding school year of a school district, as | | | 18| determined by the provisions of subsection A of | | | 19| Section 18-201.1 of this title and paragraphs 1, 2, 3 | | | 20| and 4 of subsection B of Section 18-201.1 of this | | | 21| title, multiplied by the Base Foundation Support | | | 22| Level. However, for the portion of weighted | | | 23| membership derived from nonresident, transferred | | | 24| pupils enrolled in online courses, the Foundation | | | Req. No. 1333 Page 4 ___________________________________________________________________________
1| Program shall be a district's weighted average daily | | | 2| membership of the preceding school year or the first | | | 3| nine (9) weeks of the current school year, whichever | | | 4| is greater, as determined by the provisions of | | | 5| subsection A of Section 18-201.1 of this title and | | | 6| paragraphs 1, 2, 3 and 4 of subsection B of Section | | | 7| 18-201.1 of this title, multiplied by the Base | | | 8| Foundation Support Level. | | | 9| b. The Foundation Program Income shall be the sum of the | | | 10| following: | | | 11| (1) The adjusted assessed valuation of the current | | | 12| school year of the school district, minus the | | | 13| previous year protested ad valorem tax revenues | | | 14| held as prescribed in Section 2884 of Title 68 of | | | 15| the Oklahoma Statutes, multiplied by the mills | | | 16| levied pursuant to subsection (c) of Section 9 of | | | 17| Article X of the Oklahoma Constitution, if | | | 18| applicable, as adjusted in subsection (c) of | | | 19| Section 8A of Article X of the Oklahoma | | | 20| Constitution. For purposes of this subsection, | | | 21| the "adjusted assessed valuation of the current | | | 22| school year" shall be the adjusted assessed | | | 23| valuation on which tax revenues are collected | | | 24| during the current school year, and | | | Req. No. 1333 Page 5 ___________________________________________________________________________
1| (2) Seventy-five percent (75%) of the amount received | | | 2| by the school district from the proceeds of the | | | 3| county levy during the preceding fiscal year, as | | | 4| levied pursuant to subsection (b) of Section 9 of | | | 5| Article X of the Oklahoma Constitution, and | | | 6| (3)Motor Vehicle Collectionsmotor vehicle | | | 7| collections, and | | | 8| (4)Gross Production Taxgross production tax, and | | | 9| (5)State Apportionmentstate apportionment, and | | | 10| (6) R.E.A.Taxtax. | | | 11| The items listed in divisions (3), (4), (5), and (6) | | | 12| of this subparagraph shall consist of the amounts | | | 13| actually collected from such sources during the | | | 14| preceding fiscal year calculated on a per capita basis | | | 15| on the unit provided for by law for the distribution | | | 16| of each such revenue. | | | 17| 2. The Transportation Supplement shall be equal to the average | | | 18|daily haul times the per capita allowance times the appropriate | | | 19|transportation factor. | | | 20| a. The average daily haul shall be the number of children | | | 21| in a district who are legally transported and who live | | | 22| one and one-half (1 1/2) miles or more from school. | | | 23| b. The per capita allowance shall be determined using the | | | 24| following chart: | | | Req. No. 1333 Page 6 ___________________________________________________________________________
1| PER CAPITA PER CAPITA | | | 2| | | | 3|DENSITY FIGURE ALLOWANCE DENSITY FIGURE ALLOWANCE | | | 4|.3000 - .3083 $167.00 .9334 - .9599 $99.00 | | | 5|.3084 - .3249 $165.00 .9600 - .9866 $97.00 | | | 6|.3250 - .3416 $163.00 .9867 - 1.1071 $95.00 | | | 7|.3417 - .3583 $161.00 1.1072 - 1.3214 $92.00 | | | 8|.3584 - .3749 $158.00 1.3215 - 1.5357 $90.00 | | | 9|.3750 - .3916 $156.00 1.5358 - 1.7499 $88.00 | | | 10|.3917 - .4083 $154.00 1.7500 - 1.9642 $86.00 | | | 11|.4084 - .4249 $152.00 1.9643 - 2.1785 $84.00 | | | 12|.4250 - .4416 $150.00 2.1786 - 2.3928 $81.00 | | | 13|.4417 - .4583 $147.00 2.3929 - 2.6249 $79.00 | | | 14|.4584 - .4749 $145.00 2.6250 - 2.8749 $77.00 | | | 15|.4750 - .4916 $143.00 2.8750 - 3.1249 $75.00 | | | 16|.4917 - .5083 $141.00 3.1250 - 3.3749 $73.00 | | | 17|.5084 - .5249 $139.00 3.3750 - 3.6666 $70.00 | | | 18|.5250 - .5416 $136.00 3.6667 - 3.9999 $68.00 | | | 19|.5417 - .5583 $134.00 4.0000 - 4.3333 $66.00 | | | 20|.5584 - .5749 $132.00 4.3334 - 4.6666 $64.00 | | | 21|.5750 - .5916 $130.00 4.6667 - 4.9999 $62.00 | | | 22|.5917 - .6133 $128.00 5.0000 - 5.5000 $59.00 | | | 23|.6134 - .6399 $125.00 5.5001 - 6.0000 $57.00 | | | 24|.6400 - .6666 $123.00 6.0001 - 6.5000 $55.00 | | | Req. No. 1333 Page 7 ___________________________________________________________________________
1|.6667 - .6933 $121.00 6.5001 - 7.0000 $53.00 | | | 2|.6934 - .7199 $119.00 7.0001 - 7.3333 $51.00 | | | 3|.7200 - .7466 $117.00 7.3334 - 7.6667 $48.00 | | | 4|.7467 - .7733 $114.00 7.6668 - 8.0000 $46.00 | | | 5|.7734 - .7999 $112.00 8.0001 - 8.3333 $44.00 | | | 6|.8000 - .8266 $110.00 8.3334 - 8.6667 $42.00 | | | 7|.8267 - .8533 $108.00 8.6668 - 9.0000 $40.00 | | | 8|.8534 - .8799 $106.00 9.0001 - 9.3333 $37.00 | | | 9|.8800 - .9066 $103.00 9.3334 - 9.6667 $35.00 | | | 10|.9067 - .9333 $101.00 9.6668 or more $33.00 | | | 11| c. The formula transportation factor shall be1.393.0. | | | 12| 3. Salary Incentive Aid shall be determined as follows: | | | 13| a. Multiply the Incentive Aid guarantee by the district's | | | 14| higher weighted average daily membership based on the | | | 15| first nine (9) weeks of the current school year or the | | | 16| preceding school year of a school district, as | | | 17| determined by the provisions of subsection A of | | | 18| Section 18-201.1 of this title and paragraphs 1, 2, 3 | | | 19| and 4 of subsection B of Section 18-201.1 of this | | | 20| title. | | | 21| b. Divide the district's adjusted assessed valuation of | | | 22| the current school year minus the previous year's | | | 23| protested ad valorem tax revenues held as prescribed | | | 24| in Section 2884 of Title 68 of the Oklahoma Statutes, | | | Req. No. 1333 Page 8 ___________________________________________________________________________
1| by one thousand (1,000) and subtract the quotient from | | | 2| the product of subparagraph a of this paragraph. The | | | 3| remainder shall not be less than zero (0). | | | 4| c. Multiply the number of mills levied for general fund | | | 5| purposes above the fifteen (15) mills required to | | | 6| support Foundation Aid pursuant to division (1) of | | | 7| subparagraph b of paragraph 1 of this subsection, not | | | 8| including the county four-mill levy, by the remainder | | | 9| of subparagraph b of this paragraph. The product | | | 10| shall be the Salary Incentive Aid of the district. | | | 11| E. By June 30, 1998, the State Department of Education shall | | | 12|develop and the Department and all school districts shall have | | | 13|implemented a student identification system which is consistent with | | | 14|the provisions of subsections C and D of Section 3111 of Title 74 of | | | 15|the Oklahoma Statutes. The student identification system shall be | | | 16|used specifically for the purpose of reporting enrollment data by | | | 17|school sites and by school districts, the administration of the | | | 18|Oklahoma School Testing Program Act, the collection of appropriate | | | 19|and necessary data pursuant to the Oklahoma Educational Indicators | | | 20|Program, determining student enrollment, establishing a student | | | 21|mobility rate, allocation of the State Aid Formula and midyear | | | 22|adjustments in funding for student growth. This enrollment data | | | 23|shall be submitted to the State Department of Education in | | | 24|accordance with rules promulgated by the State Board of Education. | | | Req. No. 1333 Page 9 ___________________________________________________________________________
1|Funding for the development, implementation, personnel training and | | | 2|maintenance of the student identification system shall be set out in | | | 3|a separate line item in the allocation section of the appropriation | | | 4|bill for the State Board of Education for each year. | | | 5| F. 1. In the event that ad valorem taxes of a school district | | | 6|are determined to be uncollectible because of bankruptcy, clerical | | | 7|error, or a successful tax protest, and the amount of such taxes | | | 8|deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or | | | 9|an amount greater than twenty-five percent (25%) of ad valorem taxes | | | 10|per tax year, or the valuation of a district is lowered by order of | | | 11|the State Board of Equalization, the school district's State Aid, | | | 12|for the school year that such ad valorem taxes are calculated in the | | | 13|State Aid Formula, shall be determined by subtracting the net | | | 14|assessed valuation of the property upon which taxes were deemed | | | 15|uncollectible from the assessed valuation of the school district and | | | 16|the state. Upon request of the local board of education, it shall | | | 17|be the duty of the county assessor to certify to the Director of | | | 18|Finance of the State Department of Education the net assessed | | | 19|valuation of the property upon which taxes were determined | | | 20|uncollectible. | | | 21| 2. In the event that the amount of funds a school district | | | 22|receives for reimbursement from the Ad Valorem Reimbursement Fund is | | | 23|less than the amount of funds claimed for reimbursement by the | | | 24|school district due to insufficiency of funds as provided in Section | | | Req. No. 1333 Page 10 ___________________________________________________________________________
1|193 of Title 62 of the Oklahoma Statutes, then the school district's | | | 2|assessed valuation for the school year that such ad valorem | | | 3|reimbursement is calculated in the State Aid Formula shall be | | | 4|adjusted accordingly. | | | 5| G. 1. Notwithstanding the provisions of Section 18-112.2 of | | | 6|this title, a school district shall have its State Aid reduced by an | | | 7|amount equal to the amount of carryover in the general fund of the | | | 8|district as of June 30 of the preceding fiscal year, that is in | | | 9|excess of the following standards for two (2) consecutive years: | | | 10| Total Amount of Amount of | | | 11| General Fund Collections, General Fund | | | 12| Excluding Previous Year Balance | | | 13| Cash Surplus as of June 30 Allowable | | | 14| Less than $1,000,000 48% | | | 15| $1,000,000 - $2,999,999 42% | | | 16| $3,000,000 - $3,999,999 36% | | | 17| $4,000,000 - $4,999,999 30% | | | 18| $5,000,000 - $5,999,999 24% | | | 19| $6,000,000 - $7,999,999 22% | | | 20| $8,000,000 - $9,999,999 19% | | | 21| $10,000,000 or more 17% | | | 22| 2. By February 1 the State Department of Education shall send | | | 23|by certified mail, with return receipt requested, to each School | | | 24|District Superintendent, Auditor and Regional Accreditation Officer | | | Req. No. 1333 Page 11 ___________________________________________________________________________
1|a notice of and calculation sheet reflecting the general fund | | | 2|balance penalty to be assessed against that school district. | | | 3|Calculation of the general fund balance penalty shall not include | | | 4|federal revenue. Within thirty (30) days of receipt of this written | | | 5|notice the school district shall submit to the Department a written | | | 6|reply either accepting or protesting the penalty to be assessed | | | 7|against the district. If protesting, the school district shall | | | 8|submit with its reply the reasons for rejecting the calculations and | | | 9|documentation supporting those reasons. The Department shall review | | | 10|all school district penalty protest documentation and notify each | | | 11|district by March 15 of its finding and the final penalty to be | | | 12|assessed to each district. General fund balance penalties shall be | | | 13|assessed to all school districts by April 1. | | | 14| 3. Any school district which receives proceeds from a tax | | | 15|settlement or a Federal Emergency Management Agency settlement | | | 16|during the last two (2) months of the preceding fiscal year shall be | | | 17|exempt from the penalties assessed in this subsection, if the | | | 18|penalty would occur solely as a result of receiving funds from the | | | 19|tax settlement. | | | 20| 4. Any school district which receives an increase in State Aid | | | 21|because of a change in Foundation and/or Salary Incentive Aid | | | 22|factors during the last two (2) months of the preceding fiscal year | | | 23|shall be exempt from the penalties assessed in this subsection, if | | | 24| | | | Req. No. 1333 Page 12 ___________________________________________________________________________
1|the penalty would occur solely as a result of receiving funds from | | | 2|the increase in State Aid. | | | 3| 5. If a school district does not receive Foundation and/or | | | 4|Salary Incentive Aid during the preceding fiscal year, the State | | | 5|Board of Education may waive the penalty assessed in this subsection | | | 6|if the penalty would result in a loss of more than forty percent | | | 7|(40%) of the remaining State Aid to be allocated to the school | | | 8|district between April 1 and the remainder of the school year and if | | | 9|the Board determines the penalty will cause the school district not | | | 10|to meet remaining financial obligations. | | | 11| 6. Any school district which receives gross production revenue | | | 12|apportionment during the 2002-2003 school year or in any subsequent | | | 13|school year that is greater than the gross production revenue | | | 14|apportionment of the preceding school year shall be exempt from the | | | 15|penalty assessed in this subsection, if the penalty would occur | | | 16|solely as a result of the gross production revenue apportionment, as | | | 17|determined by the State Board of Education. | | | 18| 7. Beginning July 1, 2003, school districts that participate in | | | 19|consolidation or annexation pursuant to the provisions of the | | | 20|Oklahoma SchoolVoluntaryConsolidation and Annexation Act shall be | | | 21|exempt from the penalty assessed in this subsection for the school | | | 22|year in which the consolidation or annexation occurs and for the | | | 23|next three (3) fiscal years. | | | 24| | | | Req. No. 1333 Page 13 ___________________________________________________________________________
1| 8. Any school district which receives proceeds from a sales tax | | | 2|levied by a municipality pursuant to Section 22-159 of Title 11 of | | | 3|the Oklahoma Statutes or proceeds from a sales tax levied by a | | | 4|county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes | | | 5|during the 2003-2004 school year or the 2004-2005 school year shall | | | 6|be exempt from the penalties assessed in this subsection, if the | | | 7|penalty would occur solely as a result of receiving funds from the | | | 8|sales tax levy. | | | 9| 9. Any school district which has an amount of carryover in the | | | 10|general fund of the district in excess of the limits established in | | | 11|paragraph 1 of this subsection during the fiscal years beginning | | | 12|July 1, 2020, July 1, 2021, July 1, 2022, and July 1, 2023, shall | | | 13|not be assessed a general fund balance penalty as provided for in | | | 14|this subsection. | | | 15| 10. For purposes of calculating the general fund balance | | | 16|penalty, the terms "carryover" and "general fund balance" shall not | | | 17|include federal revenue. | | | 18| H. In order to provide startup funds for the implementation of | | | 19|early childhood programs, State Aid may be advanced to school | | | 20|districts that initially start early childhood instruction at a | | | 21|school site. School districts that desire such advanced funding | | | 22|shall make application to the State Department of Education no later | | | 23|than September 15 of each year and advanced funding shall be awarded | | | 24|to the approved districts no later than October 30. The advanced | | | Req. No. 1333 Page 14 ___________________________________________________________________________
1|funding shall not exceed the per pupil amount of State Aid as | | | 2|calculated in subsection D of this section per anticipated Head | | | 3|Start eligible student. The total amount of advanced funding shall | | | 4|be proportionately reduced from the monthly payments of the | | | 5|district's State Aid payments during the last six (6) months of the | | | 6|same fiscal year. | | | 7| I. 1. Beginning July 1, 1996, the Oklahoma Tax Commission, | | | 8|notwithstanding any provision of law to the contrary, shall report | | | 9|monthly to the State Department of Education the monthly | | | 10|apportionment of the following information: | | | 11| a. the assessed valuation of property, | | | 12| b. motor vehicle collections, | | | 13| c. R.E.A. tax collected, and | | | 14| d. gross productions tax collected. | | | 15| 2. Beginning July 1, 1997, the State Auditor and Inspector's | | | 16|Office, notwithstanding any provision of law to the contrary, shall | | | 17|report monthly to the State Department of Education the monthly | | | 18|apportionment of the proceeds of the county levy. | | | 19| 3. Beginning July 1, 1996, the Commissioners of the Land | | | 20|Office, notwithstanding any provision of law to the contrary, shall | | | 21|report monthly to the State Department of Education the monthly | | | 22|apportionment of state apportionment. | | | 23| 4. Beginning July 1, 1997, the county treasurers' offices, | | | 24|notwithstanding any provision of law to the contrary, shall report | | | Req. No. 1333 Page 15 ___________________________________________________________________________
1|monthly to the State Department of Education the ad valorem tax | | | 2|protest amounts for each county. | | | 3| 5. The information reported by the Tax Commission, the State | | | 4|Auditor and Inspector's Office, the county treasurers' offices and | | | 5|the Commissioners of the Land Office, pursuant to this subsection | | | 6|shall be reported by school district on forms developed by the State | | | 7|Department of Education. | | | 8| SECTION 2. This act shall become effective July 1, 2023. | | | 9| SECTION 3. It being immediately necessary for the preservation | | | 10|of the public peace, health or safety, an emergency is hereby | | | 11|declared to exist, by reason whereof this act shall take effect and | | | 12|be in full force from and after its passage and approval. | | | 13| | | | 14| 59-1-1333 LG 1/3/2023 8:08:32 PM | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Req. No. 1333 Page 16