1|ENGROSSED HOUSE AMENDMENT |
| TO |
2|ENGROSSED SENATE BILL NO. 1257 By: Pugh and Garvin of the |
| Senate |
3| |
| and |
4| |
| Lowe (Dick) of the House |
5| |
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6| |
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7| An Act relating to school funding; amending 70 O.S. |
| 2021, Section 1-117, which relates to school district |
8| general funds; updating statutory reference; removing |
| language exempting certain funds from calculation of |
9| general fund carryover; amending 70 O.S. 2021, |
| Section 18-200.1, as amended by Section 1, Chapter |
10| 280, O.S.L. 2023 (70 O.S. Supp. 2023, Section |
| 18-200.1), which relates to State Aid; modifying |
11| certain calculation of per pupil revenue; removing |
| limitations on school district general fund |
12| carryover, method for calculating carryover amount, |
| and penalties for exceeding limitations; updating |
13| statutory language; repealing 70 O.S. 2021, Section |
| 18-200.1, as amended by Section 1, Chapter 488, |
14| O.S.L. 2021, which relates to State Aid; providing an |
| effective date; and declaring an emergency. |
15| |
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16| |
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17| |
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18| |
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19|AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill |
| and insert: |
20| |
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21| |
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22| "An Act relating to school funding; amending 70 O.S. |
| 2021, Section 1-117, which relates to school district |
23| general funds; updating statutory reference; removing |
| language exempting certain funds from calculation of |
24| general fund carryover; amending 70 O.S. 2021, |
| Section 18-200.1, as amended by Section 1, Chapter |
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1| 280, O.S.L. 2023 (70 O.S. Supp. 2023, Section |
| 18-200.1), which relates to State Aid; modifying |
2| certain calculation of per pupil revenue; modifying |
| limitations on school district general fund |
3| carryover; providing an exception for carryover of |
| certain gross production revenue apportionment; |
4| updating statutory language; repealing 70 O.S. 2021, |
| Section 18-200.1, as amended by Section 1, Chapter |
5| 488, O.S.L. 2021, which relates to State Aid; |
| providing an effective date; and declaring an |
6| emergency. |
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7| |
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8| |
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9|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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10| SECTION 1. AMENDATORY 70 O.S. 2021, Section 1-117, is |
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11|amended to read as follows: |
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12| Section 1-117. A. The general fund of any school district is |
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13|hereby defined as a current expense fund and shall consist of all |
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14|revenue or monies that can legally be expended within a certain |
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15|specified fiscal year, but shall not be considered as including any |
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16|money derived from a special building fund levy made in accordance |
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17|with the provisions of Section 10 of Article X of the Oklahoma |
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18|Constitution, nor shall it include any monies derived from the sale |
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19|of bonds issued under the provisions of Section 26 of Article X of |
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20|the Oklahoma Constitution. All monies derived from the proceeds of |
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21|the school levies made pursuant to the provisions of Section 9 of |
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22|Article X of the Oklahoma Constitution shall be placed in the |
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23|general fund provided by this section. Expenditures from the |
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24|general fund shall be noncapital in nature. All monies derived from |
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1|state-dedicated revenue, state-appropriated revenue unless otherwise |
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2|provided for by law, and county sources shall be placed in the |
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3|general fund provided for by this section. Except as provided for |
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4|in subsections F, K, and L of this section, a district shall not be |
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5|authorized to make capital expenditures as defined by this section |
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6|from the general fund. |
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7| B. For purposes of this section, state-dedicated revenue shall |
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8|be any registration or license fees, taxes, or penalties collected |
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9|at the state level and distributed to common school districts. |
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10|County sources shall be all funds collected by the county and |
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11|distributed to common school districts but shall not include any |
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12|funds derived from the building fund levy made in accordance with |
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13|the provisions of Section 10 of Article X of the Oklahoma |
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14|Constitution or funds derived from the sinking fund levy made in |
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15|accordance with the provisions of Section 26 of Article X of the |
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16|Oklahoma Constitution. |
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17| C. For the purposes of this section, a capital expenditure |
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18|shall be an expenditure which results in the acquisition of fixed |
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19|assets or additions to fixed assets. Capital expenditures shall |
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20|include, but shall not be limited to, purchases of land or existing |
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21|buildings, purchases of real property, improvements of grounds and |
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22|sites for construction purposes, all expenditures for construction |
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23|of buildings unless authorized by the State Board of Education or |
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24|the State Board of Career and Technology Education upon application |
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1|to the appropriate state board pursuant to subsection F of this |
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2|section, additions to buildings, remodeling of buildings if such |
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3|remodeling involves changes to roof structures or load-bearing |
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4|walls, professional services, salaries and expenses of architects |
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5|and engineers hired or assigned to capital projects except for such |
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6|services, salaries, and expenses as are applicable in preparation |
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7|for a bond issue, expenditures for the initial installation and |
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8|extension of service systems and built-in heat or air equipment to |
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9|existing buildings, expenditures for the replacement of a building |
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10|which has been destroyed, installments and lease payments on |
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11|property, including interest, that have a terminal date and result |
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12|in the acquisition of property, and expenditures for preliminary |
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13|studies made prior to the time that authority to proceed with a |
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14|construction project is given if authority is received within the |
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15|same fiscal year that the expenditure was made. |
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16| D. Noncapital expenditures shall include, but shall not be |
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17|limited to, expenditures for maintenance, repair, and replacement of |
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18|property and equipment, initial or additional purchases of furniture |
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19|and equipment, direct expenses for maintenance of plant, including |
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20|grounds, salaries for maintenance of plant, including salaries for |
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21|the upkeep of grounds, and repair and replacement of building |
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22|structures which do not add to existing facilities and which do not |
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23|involve changes in roof structures or load-bearing walls and which |
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24|are not classified as a capital expenditure by this section. |
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1| E. The State Board of Education shall adopt and amend |
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2|regulations regarding the classification, definition, and financial |
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3|administration of funds, accounts, and expenditures in accordance |
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4|with the requirements of this section. |
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5| F. A school district shall be authorized to make capital |
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6|expenditures from the general fund to defray the cost of rebuilding |
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7|a school building only if a school building or facility has been |
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8|destroyed by a fire or natural disaster, such as flood, tornado, or |
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9|other act of God, or by an act of a public enemy of the United |
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10|States or this state and monies received by the district through |
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11|insurance coverage, federal reimbursement, contributions, and |
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12|allocation from the State Board of Education from the State Public |
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13|Common School Building Equalization Fund are insufficient to rebuild |
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14|the facility. Capital expenditures from the general fund pursuant |
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15|to this subsection shall be limited to an amount necessary to defray |
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16|the cost of rebuilding the facility which exceeds monies received by |
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17|the school district through insurance, federal reimbursement, |
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18|contributions, and state allocations. |
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19| G. Schools which receive gifts or, donations, or |
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20|state-appropriated monies for the purpose of capital expenditures or |
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21|projects shall place such monies in the building fund, as provided |
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22|by Section 1-118 of this title, and not in the general fund. School |
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23|districts which receive gifts, grants, or donations of monies for |
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24|noncapital expenditures may place the monies in the general fund, |
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1|and such monies shall not be required to be used during the year in |
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2|which the money was received but may accumulate from year to year |
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3|and shall not be considered a part of the general fund collections |
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4|when calculating the general fund carryover as provided for in |
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5|subsection G of Section 18-200.1 of this title. |
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6| H. School districts which receive monies from rental, sale, or |
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7|lease of buildings, impact aid monies, or grants, gifts, or |
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8|donations for capital purposes, whether from state, federal, or |
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9|other sources, may place such monies in the building fund authorized |
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10|by Section 1-118 of this title or the general fund authorized by |
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11|this section. |
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12| I. Any construction of a building included as a capital |
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13|expenditure from the general fund of a school district which is |
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14|authorized and has had a contractual agreement concerning such |
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15|construction executed prior to July 1, 1991, may be proceeded with |
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16|and completed as authorized prior to July 1, 1991, as a capital |
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17|expenditure from such general fund. |
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18| J. School districts receiving revenues authorized by Section 9B |
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19|of Article X of the Oklahoma Constitution shall be authorized to |
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20|make capital expenditures from the general revenue fund no greater |
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21|than the amount levied by the incentive millage. |
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22| K. Upon the approval of the State Board of Education, a school |
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23|district shall be authorized to make capital expenditures as defined |
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24|in this section from its general fund if: |
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1| 1. A bond issue has been rejected at an election by the school |
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2|district electors voting on that question within the current school |
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3|year, as certified by the secretary of the county election board; or |
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4| 2. The school district has voted indebtedness at any time |
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5|within the preceding three (3) school years through the issuance of |
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6|bonds or through approval by voters of issuance of new bonds for |
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7|more than eighty-five percent (85%) of the maximum allowable |
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8|pursuant to the provisions of Section 26 of Article X of the |
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9|Oklahoma Constitution as shown on the school district budget filed |
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10|with the State Board of Equalization for the current school year and |
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11|certifications by the Attorney General prior to April 1 of the |
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12|current school year. The State Board of Education shall establish |
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13|the rules to administer the provisions of this subsection which |
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14|shall include, but not be limited to, specification of a maximum |
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15|amount of general fund monies to be used for capital expenditures, |
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16|the purposes for which such funds may be expended, and the period of |
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17|time in which such funds shall be encumbered. |
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18| L. Other provisions of this section notwithstanding, a school |
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19|district shall be authorized to make capital expenditures from the |
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20|general fund if the total assessed property valuation per average |
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21|daily attendance is less than sixty percent (60%) of the state |
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22|average total assessed property valuation per average daily |
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23|attendance and if, for each year in which general fund revenue is |
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24|used for capital expenditures, the district has voted the five-mill |
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1|building fund levy authorized in Section 10 of Article X of the |
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2|Oklahoma Constitution and has voted indebtedness through the |
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3|issuance of new bonds for at least eighty-five percent (85%) within |
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4|the last three (3) years of the maximum allowable pursuant to the |
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5|provisions of Section 26 of Article X of the Oklahoma Constitution |
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6|as shown on the school district budget filed with the State Board of |
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7|Equalization for the current school year and certifications by the |
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8|Attorney General prior to April 1 of the school year. Provided, the |
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9|maximum amount of general fund revenue used for capital expenditures |
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10|pursuant to this subsection shall not exceed five percent (5%) of |
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11|the total yearly revenue to the general fund. Said Such fund may |
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12|not be used for capital expenditures for more than five (5) |
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13|consecutive years and may only be utilized for remodeling or |
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14|construction of classroom facilities and such ancillary facilities |
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15|to said such classrooms as may be necessary. Provided, further, the |
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16|State Superintendent of Public Instruction shall certify in writing, |
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17|prior to the expenditure of the funds for which provision is made in |
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18|this subsection, that such expenditures are in compliance with the |
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19|provisions of this subsection. |
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20| SECTION 2. AMENDATORY 70 O.S. 2021, Section 18-200.1, as |
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21|amended by Section 1, Chapter 280, O.S.L. 2023 (70 O.S. Supp. 2023, |
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22|Section 18-200.1), is amended to read as follows: |
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23| Section 18-200.1. A. Beginning with the 2022-2023 school year, |
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24|and each school year thereafter, each school district shall have its |
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1|initial allocation of State Aid calculated based on the state |
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2|dedicated revenues actually collected during the preceding fiscal |
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3|year, the adjusted assessed valuation of the preceding year, and the |
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4|weighted average daily membership for the school district of the |
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5|preceding school year. Each school district shall submit the |
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6|following data based on the first nine (9) weeks, to be used in the |
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7|calculation of the average daily membership of the school district: |
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8| 1. Student enrollment by grade level; |
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9| 2. Pupil category counts; and |
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10| 3. Transportation supplement data. |
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11| On or before December 30, the State Department of Education |
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12|shall determine each school district's current year allocation |
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13|pursuant to subsection D of this section. The State Department of |
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14|Education shall complete an audit, using procedures established by |
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15|the Department, of the student enrollment by grade level data, pupil |
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16|category counts, and transportation supplement data to be used in |
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17|the State Aid Formula pursuant to subsection D of this section by |
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18|December 1 and by January 15 shall notify each school district of |
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19|the district's final State Aid allocation for the current school |
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20|year. The January payment of State Aid and each subsequent payment |
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21|for the remainder of the school year shall be based on the final |
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22|State Aid allocation as calculated in subsection D of this section. |
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23|Except for reductions made due to the assessment of penalties by the |
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24|State Department of Education according to law, the January payment |
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1|of State Aid and each subsequent payment for the remainder of the |
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2|school year shall not decrease by an amount more than the amount |
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3|that the current chargeable revenue increases for that district. |
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4| B. The State Department of Education shall retain not less than |
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5|one and one-half percent (1 1/2%) of the total funds appropriated |
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6|for financial support of schools, to be used to make midyear |
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7|adjustments in State Aid and which shall be reflected in the final |
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8|allocations. If the amount of appropriated funds, including the one |
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9|and one-half percent (1 1/2%) retained, remaining after January 1 of |
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10|each year is not sufficient to fully fund the final allocations, the |
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11|Department shall recalculate each school district's remaining |
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12|allocation pursuant to subsection D of this section using the |
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13|reduced amount of appropriated funds. |
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14| C. On and after July 1, 1997, the amount of State Aid each |
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15|district shall receive shall be the sum of the Foundation Aid, the |
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16|Salary Incentive Aid, and the Transportation Supplement, as adjusted |
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17|pursuant to the provisions of subsection G of this section and |
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18|Section 18-112.2 of this title; provided, no district having per |
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19|pupil revenue in excess of three hundred percent (300%) of the |
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20|average per pupil revenue of all districts shall receive any State |
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21|Aid or Supplement in State Aid. |
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22| The July calculation of per pupil revenue shall be determined by |
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23|dividing the district's second preceding year's total weighted |
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24|average daily membership (ADM) into the district's second preceding |
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1|year's total revenues excluding federal revenue, insurance loss |
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2|payments, reimbursements, recovery of overpayments and refunds, |
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3|unused reserves, prior expenditures recovered, prior year surpluses, |
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4|and less the amount of any transfer fees paid in that year. |
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5| The December calculation of per pupil revenue shall be |
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6|determined by dividing the district's preceding year's total |
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7|weighted average daily membership (ADM) into the district's |
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8|preceding year's total revenues excluding federal revenue, insurance |
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9|loss payments, reimbursements, recovery of overpayments and refunds, |
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10|unused reserves, prior expenditures recovered, prior year surpluses, |
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11|and less the amount of any transfer fees paid in that year. |
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12| D. For the 1997-98 school year, and each school year |
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13|thereafter, Foundation Aid, the Transportation Supplement, and |
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14|Salary Incentive Aid shall be calculated as follows: |
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15| 1. Foundation Aid shall be determined by subtracting the amount |
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16|of the Foundation Program Income from the cost of the Foundation |
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17|Program and adding to this difference the Transportation Supplement. |
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18| a. The Foundation Program shall be a district's higher |
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19| weighted average daily membership based on the first |
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20| nine (9) weeks of the current school year or the |
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21| preceding school year of a school district, as |
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22| determined by the provisions of subsection A of |
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23| Section 18-201.1 of this title and paragraphs 1, 2, 3, |
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24| and 4 of subsection B of Section 18-201.1 of this |
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1| title, multiplied by the Base Foundation Support |
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2| Level. However, for the portion of weighted |
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3| membership derived from nonresident, transferred |
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4| pupils enrolled in online courses, the Foundation |
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5| Program shall be a district's weighted average daily |
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6| membership of the preceding school year or the first |
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7| nine (9) weeks of the current school year, whichever |
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8| is greater, as determined by the provisions of |
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9| subsection A of Section 18-201.1 of this title and |
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10| paragraphs 1, 2, 3, and 4 of subsection B of Section |
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11| 18-201.1 of this title, multiplied by the Base |
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12| Foundation Support Level. |
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13| b. The Foundation Program Income shall be the sum of the |
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14| following: |
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15| (1) The the adjusted assessed valuation of the |
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16| current school year of the school district, minus |
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17| the previous year protested ad valorem tax |
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18| revenues held as prescribed in Section 2884 of |
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19| Title 68 of the Oklahoma Statutes, multiplied by |
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20| the mills levied pursuant to subsection (c) of |
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21| Section 9 of Article X of the Oklahoma |
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22| Constitution, if applicable, as adjusted in |
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23| subsection (c) of Section 8A of Article X of the |
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24| Oklahoma Constitution. For purposes of this |
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1| subsection, the "adjusted assessed valuation of |
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2| the current school year" shall be the adjusted |
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3| assessed valuation on which tax revenues are |
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4| collected during the current school year, and |
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5| (2) Seventy-five seventy-five percent (75%) of the |
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6| amount received by the school district from the |
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7| proceeds of the county levy during the preceding |
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8| fiscal year, as levied pursuant to subsection (b) |
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9| of Section 9 of Article X of the Oklahoma |
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10| Constitution, and |
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11| (3) motor vehicle collections, and |
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12| (4) gross production tax, and |
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13| (5) state apportionment, and |
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14| (6) R.E.A. tax. |
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15|The items listed in divisions (3), (4), (5), and (6) of this |
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16|subparagraph shall consist of the amounts actually collected from |
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17|such sources during the preceding fiscal year calculated on a per |
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18|capita basis on the unit provided for by law for the distribution of |
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19|each such revenue. |
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20| 2. The Transportation Supplement shall be equal to the average |
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21|daily haul times the per capita allowance times the appropriate |
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22|transportation factor. |
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23| |
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24| |
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1| a. The average daily haul shall be the number of |
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2| children in a district who are legally transported and |
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3| who live one and one-half (1 1/2) miles or more from |
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4| school. |
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5| b. The per capita allowance shall be determined using |
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6| the following chart: |
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7| PER CAPITA PER CAPITA |
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8| |
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9|DENSITY FIGURE ALLOWANCE DENSITY FIGURE ALLOWANCE |
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10|3000 - .3083 $167.00 .9334 - .9599 $99.00 |
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11|3084 - .3249 $165.00 .9600 - .9866 $97.00 |
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12|3250 - .3416 $163.00 .9867 - 1.1071 $95.00 |
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13|3417 - .3583 $161.00 1.1072 - 1.3214 $92.00 |
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14|3584 - .3749 $158.00 1.3215 - 1.5357 $90.00 |
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15|3750 - .3916 $156.00 1.5358 - 1.7499 $88.00 |
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16|3917 - .4083 $154.00 1.7500 - 1.9642 $86.00 |
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17|4084 - .4249 $152.00 1.9643 - 2.1785 $84.00 |
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18|4250 - .4416 $150.00 2.1786 - 2.3928 $81.00 |
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19|4417 - .4583 $147.00 2.3929 - 2.6249 $79.00 |
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20|4584 - .4749 $145.00 2.6250 - 2.8749 $77.00 |
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21|4750 - .4916 $143.00 2.8750 - 3.1249 $75.00 |
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22|4917 - .5083 $141.00 3.1250 - 3.3749 $73.00 |
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23|5084 - .5249 $139.00 3.3750 - 3.6666 $70.00 |
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24|5250 - .5416 $136.00 3.6667 - 3.9999 $68.00 |
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1|5417 - .5583 $134.00 4.0000 - 4.3333 $66.00 |
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2|5584 - .5749 $132.00 4.3334 - 4.6666 $64.00 |
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3|5750 - .5916 $130.00 4.6667 - 4.9999 $62.00 |
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4|5917 - .6133 $128.00 5.0000 - 5.5000 $59.00 |
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5|6134 - .6399 $125.00 5.5001 - 6.0000 $57.00 |
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6|6400 - .6666 $123.00 6.0001 - 6.5000 $55.00 |
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7|6667 - .6933 $121.00 6.5001 - 7.0000 $53.00 |
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8|6934 - .7199 $119.00 7.0001 - 7.3333 $51.00 |
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9|7200 - .7466 $117.00 7.3334 - 7.6667 $48.00 |
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10|7467 - .7733 $114.00 7.6668 - 8.0000 $46.00 |
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11|7734 - .7999 $112.00 8.0001 - 8.3333 $44.00 |
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12|8000 - .8266 $110.00 8.3334 - 8.6667 $42.00 |
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13|8267 - .8533 $108.00 8.6668 - 9.0000 $40.00 |
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14|8534 - .8799 $106.00 9.0001 - 9.3333 $37.00 |
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15|8800 - .9066 $103.00 9.3334 - 9.6667 $35.00 |
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16|9067 - .9333 $101.00 9.6668 or more $33.00 |
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17| c. The formula transportation factor shall be 2.0. |
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18| 3. Salary Incentive Aid shall be determined as follows: |
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19| a. Multiply the Incentive Aid guarantee by the |
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20| district's higher weighted average daily membership |
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21| based on the first nine (9) weeks of the current |
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22| school year or the preceding school year of a school |
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23| district, as determined by the provisions of |
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24| subsection A of Section 18-201.1 of this title and |
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1| paragraphs 1, 2, 3, and 4 of subsection B of Section |
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2| 18-201.1 of this title. |
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3| b. Divide the district's adjusted assessed valuation of |
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4| the current school year minus the previous year's |
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5| protested ad valorem tax revenues held as prescribed |
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6| in Section 2884 of Title 68 of the Oklahoma Statutes, |
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7| by one thousand (1,000) and subtract the quotient from |
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8| the product of subparagraph a of this paragraph. The |
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9| remainder shall not be less than zero (0). |
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10| c. Multiply the number of mills levied for general fund |
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11| purposes above the fifteen (15) mills required to |
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12| support Foundation Aid pursuant to division (1) of |
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13| subparagraph b of paragraph 1 of this subsection, not |
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14| including the county four-mill levy, by the remainder |
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15| of subparagraph b of this paragraph. The product |
| |
16| shall be the Salary Incentive Aid of the district. |
| |
17| E. By June 30, 1998, the State Department of Education shall |
| |
18|develop and the Department and all school districts shall have |
| |
19|implemented a student identification system which is consistent with |
| |
20|the provisions of subsections C D and D E of Section 3111 of Title |
| |
21|74 of the Oklahoma Statutes. The student identification system |
| |
22|shall be used specifically for the purpose of reporting enrollment |
| |
23|data by school sites and by school districts, the administration of |
| |
24|the Oklahoma School Testing Program Act, the collection of |
| |
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1|appropriate and necessary data pursuant to the Oklahoma Educational |
| |
2|Indicators Program, determining student enrollment, establishing a |
| |
3|student mobility rate, allocation of the State Aid Formula, and |
| |
4|midyear adjustments in funding for student growth. This enrollment |
| |
5|data shall be submitted to the State Department of Education in |
| |
6|accordance with rules promulgated by the State Board of Education. |
| |
7|Funding for the development, implementation, personnel training, and |
| |
8|maintenance of the student identification system shall be set out in |
| |
9|a separate line item in the allocation section of the appropriation |
| |
10|bill for the State Board of Education for each year. |
| |
11| F. 1. In the event that ad valorem taxes of a school district |
| |
12|are determined to be uncollectible because of bankruptcy, clerical |
| |
13|error, or a successful tax protest, and the amount of such taxes |
| |
14|deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or |
| |
15|an amount greater than twenty-five percent (25%) of ad valorem taxes |
| |
16|per tax year, or the valuation of a district is lowered by order of |
| |
17|the State Board of Equalization, the school district's State Aid, |
| |
18|for the school year that such ad valorem taxes are calculated in the |
| |
19|State Aid Formula, shall be determined by subtracting the net |
| |
20|assessed valuation of the property upon which taxes were deemed |
| |
21|uncollectible from the assessed valuation of the school district and |
| |
22|the state. Upon request of the local board of education, it shall |
| |
23|be the duty of the county assessor to certify to the Director of |
| |
24|Finance of the State Department of Education the net assessed |
| |
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1|valuation of the property upon which taxes were determined |
| |
2|uncollectible. |
| |
3| 2. In the event that the amount of funds a school district |
| |
4|receives for reimbursement from the Ad Valorem Reimbursement Fund is |
| |
5|less than the amount of funds claimed for reimbursement by the |
| |
6|school district due to insufficiency of funds as provided in Section |
| |
7|193 of Title 62 of the Oklahoma Statutes, then the school district's |
| |
8|assessed valuation for the school year that such ad valorem |
| |
9|reimbursement is calculated in the State Aid Formula shall be |
| |
10|adjusted accordingly. |
| |
11| G. 1. Notwithstanding the provisions of Section 18-112.2 of |
| |
12|this title, a school district shall have its State Aid reduced by an |
| |
13|amount equal to the amount of carryover in the general fund of the |
| |
14|district as of June 30 of the preceding fiscal year, that is in |
| |
15|excess of the following standards for two (2) consecutive years: |
| |
16| Total Amount of Amount of |
| |
17| General Fund Collections, General Fund |
| |
18| Excluding Previous Year Balance |
| |
19| Cash Surplus as of June 30 Allowable |
| |
20| Less than $1,000,000 48% 53% |
| |
21| $1,000,000 - $2,999,999 42% 47% |
| |
22| $3,000,000 - $3,999,999 36% 41% |
| |
23| $4,000,000 - $4,999,999 30% 35% |
| |
24| $5,000,000 - $5,999,999 24% 29% |
| |
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1| $6,000,000 - $7,999,999 22% 27% |
| |
2| $8,000,000 - $9,999,999 19% 24% |
| |
3| $10,000,000 or more 17% 22% |
| |
4| 2. By February 1 the State Department of Education shall send |
| |
5|by certified mail, with return receipt requested, to each school |
| |
6|district superintendent, auditor, and regional accreditation officer |
| |
7|a notice of and calculation sheet reflecting the general fund |
| |
8|balance penalty to be assessed against that school district. |
| |
9|Calculation of the general fund balance penalty shall not include |
| |
10|federal revenue. Within thirty (30) days of receipt of this written |
| |
11|notice the school district shall submit to the Department a written |
| |
12|reply either accepting or protesting the penalty to be assessed |
| |
13|against the district. If protesting, the school district shall |
| |
14|submit with its reply the reasons for rejecting the calculations and |
| |
15|documentation supporting those reasons. The Department shall review |
| |
16|all school district penalty protest documentation and notify each |
| |
17|district by March 15 of its finding and the final penalty to be |
| |
18|assessed to each district. General fund balance penalties shall be |
| |
19|assessed to all school districts by April 1. |
| |
20| 3. Any school district which receives proceeds from a tax |
| |
21|settlement or a Federal Emergency Management Agency settlement |
| |
22|during the last two (2) months of the preceding fiscal year shall be |
| |
23|exempt from the penalties assessed in this subsection, if the |
| |
24| |
| |
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1|penalty would occur solely as a result of receiving funds from the |
| |
2|tax settlement. |
| |
3| 4. Any school district which receives an increase in State Aid |
| |
4|because of a change in Foundation and/or Salary Incentive Aid |
| |
5|factors during the last two (2) months of the preceding fiscal year |
| |
6|shall be exempt from the penalties assessed in this subsection, if |
| |
7|the penalty would occur solely as a result of receiving funds from |
| |
8|the increase in State Aid. |
| |
9| 5. If a school district does not receive Foundation and/or |
| |
10|Salary Incentive Aid during the preceding fiscal year, the State |
| |
11|Board of Education may waive the penalty assessed in this subsection |
| |
12|if the penalty would result in a loss of more than forty percent |
| |
13|(40%) of the remaining State Aid to be allocated to the school |
| |
14|district between April 1 and the remainder of the school year and if |
| |
15|the Board determines the penalty will cause the school district not |
| |
16|to meet remaining financial obligations. |
| |
17| 6. Any school district which receives gross production revenue |
| |
18|apportionment during the 2002-2003 school year or in any subsequent |
| |
19|school year that is greater than the gross production revenue |
| |
20|apportionment of the preceding school year shall be exempt from the |
| |
21|penalty assessed in this subsection, if the penalty would occur |
| |
22|solely as a result of the gross production revenue apportionment, as |
| |
23|determined by the State Board of Education. |
| |
24| |
| |
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1| 7. Any school district which receives gross production revenue |
| |
2|apportionment during the 2024-2025 school year or in any subsequent |
| |
3|school year, may carryover up to fifty percent (50%) of the total |
| |
4|amount of the gross production revenue apportionment in addition to |
| |
5|the carryover limitations provided in this subsection and shall be |
| |
6|exempt from the penalty assessed in this subsection, if the penalty |
| |
7|would occur solely as a result of the carried over gross production |
| |
8|revenue apportionment permitted in this paragraph. |
| |
9| 8. Beginning July 1, 2003, school districts that participate in |
| |
10|consolidation or annexation pursuant to the provisions of the |
| |
11|Oklahoma School Consolidation and Annexation Act shall be exempt |
| |
12|from the penalty assessed in this subsection for the school year in |
| |
13|which the consolidation or annexation occurs and for the next three |
| |
14|(3) fiscal years. |
| |
15| 8. 9. Any school district which receives proceeds from a sales |
| |
16|tax levied by a municipality pursuant to Section 22-159 of Title 11 |
| |
17|of the Oklahoma Statutes or proceeds from a sales tax levied by a |
| |
18|county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes |
| |
19|during the 2003-2004 school year or the 2004-2005 school year shall |
| |
20|be exempt from the penalties assessed in this subsection, if the |
| |
21|penalty would occur solely as a result of receiving funds from the |
| |
22|sales tax levy. |
| |
23| 9. 10. Any school district which has an amount of carryover in |
| |
24|the general fund of the district in excess of the limits established |
| |
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1|in paragraph 1 of this subsection during the fiscal years beginning |
| |
2|July 1, 2020, July 1, 2021, July 1, 2022, and July 1, 2023, shall |
| |
3|not be assessed a general fund balance penalty as provided for in |
| |
4|this subsection. |
| |
5| 10. 11. For purposes of calculating the general fund balance |
| |
6|penalty, the terms "carryover" and "general fund balance" shall not |
| |
7|include federal revenue. |
| |
8| H. In order to provide startup funds for the implementation of |
| |
9|early childhood programs, State Aid may be advanced to school |
| |
10|districts that initially start early childhood instruction at a |
| |
11|school site. School districts that desire such advanced funding |
| |
12|shall make application to the State Department of Education no later |
| |
13|than September 15 of each year and advanced funding shall be awarded |
| |
14|to the approved districts no later than October 30. The advanced |
| |
15|funding shall not exceed the per pupil amount of State Aid as |
| |
16|calculated in subsection D of this section per anticipated Head |
| |
17|Start eligible student. The total amount of advanced funding shall |
| |
18|be proportionately reduced from the monthly payments of the |
| |
19|district's State Aid payments during the last six (6) months of the |
| |
20|same fiscal year. |
| |
21| I. 1. Beginning July 1, 1996, the Oklahoma Tax Commission, |
| |
22|notwithstanding any provision of law to the contrary, shall report |
| |
23|monthly to the State Department of Education the monthly |
| |
24|apportionment of the following information: |
| |
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1| a. the assessed valuation of property, |
| |
2| b. motor vehicle collections, |
| |
3| c. R.E.A. tax collected, and |
| |
4| d. gross productions tax collected. |
| |
5| 2. Beginning July 1, 1997, the State Auditor and Inspector's |
| |
6|Office, notwithstanding any provision of law to the contrary, shall |
| |
7|report monthly to the State Department of Education the monthly |
| |
8|apportionment of the proceeds of the county levy. |
| |
9| 3. Beginning July 1, 1996, the Commissioners of the Land |
| |
10|Office, notwithstanding any provision of law to the contrary, shall |
| |
11|report monthly to the State Department of Education the monthly |
| |
12|apportionment of state apportionment. |
| |
13| 4. Beginning July 1, 1997, the county treasurers' offices, |
| |
14|notwithstanding any provision of law to the contrary, shall report |
| |
15|monthly to the State Department of Education the ad valorem tax |
| |
16|protest amounts for each county. |
| |
17| 5. The information reported by the Tax Commission, the State |
| |
18|Auditor and Inspector's Office, the county treasurers' offices, and |
| |
19|the Commissioners of the Land Office, pursuant to this subsection |
| |
20|shall be reported by a school district on forms developed by the |
| |
21|State Department of Education. |
| |
22| SECTION 3. REPEALER 70 O.S. 2021, Section 18-200.1, as |
| |
23|amended by Section 1, Chapter 488, O.S.L. 2021, is hereby repealed. |
| |
24| SECTION 4. This act shall become effective July 1, 2024. |
| |
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1| SECTION 5. It being immediately necessary for the preservation |
| |
2|of the public peace, health, or safety, an emergency is hereby |
| |
3|declared to exist, by reason whereof this act shall take effect and |
| |
4|be in full force from and after its passage and approval." |
| |
5| Passed the House of Representatives the 24th day of April, 2024. |
| |
6| |
| |
7| |
| |
8| Presiding Officer of the House of |
| Representatives |
9| |
| |
10| Passed the Senate the ____ day of __________, 2024. |
| |
11| |
| |
12| |
| |
13| Presiding Officer of the Senate |
| |
14| |
| |
15| |
| |
16| |
| |
17| |
| |
18| |
| |
19| |
| |
20| |
| |
21| |
| |
22| |
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23| |
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24| |
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