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Oklahoma Legislature· SB 192Second Reading referred to Education

An act relating to State Aid, the official text

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1                  STATE OF OKLAHOMA

1

2                  1st Session of the 60th Legislature (2025)

2

3 SENATE BILL 192              By: Deevers
3

4

4

5

5

6                  AS INTRODUCED

6

7   An Act relating to State Aid; amending 70 O.S. 2021,

7   Sections 18-200.1 and 18-201.1, as amended by

8   Sections 1 and 2, Chapter 280, O.S.L. 2023 (70 O.S.

8   Supp. 2024, Sections 18-200.1 and 18-201.1), which

9   relate to calculation of the State Aid funding

9   formula; directing State Aid to be calculated based

10  on the average daily membership of a school

10  district's first nine weeks of the current school

11  year beginning in certain school year; removing

11  language allowing certain calculation based on the

12  higher of certain weighted average daily memberships;

12  removing language regarding calculation of weighted

13  membership of certain students; removing definition

13  related to the weighted calculation for a statewide

14  virtual charter school; updating statutory language

14  and references; directing the State Department of

15  Education to administer certain transitional grant

15  program; establishing criteria for transitional

16  grants, subject to availability of funding; directing

16  the Department to electronically submit certain

17  report by certain date; providing for contents of

17  report; providing for codification; providing an

18  effective date; and declaring an emergency.

18

19

19

20 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
20

21  SECTION 1.     AMENDATORY  70 O.S. 2021, Section 18-200.1, as

21

22 amended by Section 1, Chapter 280, O.S.L. 2023 (70 O.S. Supp. 2024,
22

23 Section 18-200.1), is amended to read as follows:
23

24

24

    Req. No. 1360                                              Page 1
1   Section 18-200.1. A. Beginning with the 2022-2023 2026-2027

1

2 school year, and each school year thereafter, each school district
2

3 shall have its initial allocation of State Aid calculated based on
3

4 the state dedicated revenues actually collected during the preceding
4

5 fiscal year, the adjusted assessed valuation of the preceding year,
5

6 and the weighted average daily membership (ADM) for the school
6

7 district based on the first nine (9) weeks of the preceding current
7

8 school year. Each school district shall submit the following data
8

9 based on the first nine (9) weeks, to be used in the calculation of
9

10 the average daily membership of the school district:
10

11  1. Student enrollment by grade level;

11

12  2. Pupil category counts; and

12

13  3. Transportation supplement data.

13

14  On or before December 30, the State Department of Education

14

15 shall determine each school district's current year allocation
15

16 pursuant to subsection D of this section. The State Department of
16

17 Education shall complete an audit, using procedures established by
17

18 the Department, of the student enrollment by grade level data, pupil
18

19 category counts, and transportation supplement data to be used in
19

20 the State Aid Formula pursuant to subsection D of this section by
20

21 December 1 and by January 15 shall notify each school district of
21

22 the district's final State Aid allocation for the current school
22

23 year. The January payment of State Aid and each subsequent payment
23

24 for the remainder of the school year shall be based on the final
24

    Req. No. 1360                                        Page 2
1 State Aid allocation as calculated in subsection D of this section.
1

2 Except for reductions made due to the assessment of penalties by the
2

3 State Department of Education according to law, the January payment
3

4 of State Aid and each subsequent payment for the remainder of the
4

5 school year shall not decrease by an amount more than the amount
5

6 that the current chargeable revenue increases for that district.
6

7   B. The State Department of Education shall retain not less than

7

8 one and one-half percent (1 1/2%) of the total funds appropriated
8

9 for financial support of schools, to be used to make midyear
9

10 adjustments in State Aid and which shall be reflected in the final
10

11 allocations. If the amount of appropriated funds, including the one
11

12 and one-half percent (1 1/2%) retained, remaining after January 1 of
12

13 each year is not sufficient to fully fund the final allocations, the
13

14 Department shall recalculate each school district's remaining
14

15 allocation pursuant to subsection D of this section using the
15

16 reduced amount of appropriated funds.
16

17  C. On and after July 1, 1997, the amount of State Aid each

17

18 district shall receive shall be the sum of the Foundation Aid, the
18

19 Salary Incentive Aid, and the Transportation Supplement, as adjusted
19

20 pursuant to the provisions of subsection G of this section and
20

21 Section 18-112.2 of this title; provided, no district having per
21

22 pupil revenue in excess of three hundred percent (300%) of the
22

23 average per pupil revenue of all districts shall receive any State
23

24 Aid or Supplement in State Aid.
24

    Req. No. 1360                         Page 3
1   The July calculation of per pupil revenue shall be determined by

1

2 dividing the district's second preceding year's total weighted
2

3 average daily membership (ADM) for the first nine (9) weeks of the
3

4 current school year into the district's preceding year's total
4

5 revenues excluding federal revenue, insurance loss payments,
5

6 reimbursements, recovery of overpayments and refunds, unused
6

7 reserves, prior expenditures recovered, prior year surpluses, and
7

8 less the amount of any transfer fees paid in that year.
8

9   The December calculation of per pupil revenue shall be

9

10 determined by dividing the district's preceding year's total
10

11 weighted average daily membership (ADM) for the first nine (9) weeks
11

12 of the current school year into the district's preceding year's
12

13 total revenues excluding federal revenue, insurance loss payments,
13

14 reimbursements, recovery of overpayments and refunds, unused
14

15 reserves, prior expenditures recovered, prior year surpluses, and
15

16 less the amount of any transfer fees paid in that year.
16

17  D. For the 1997-98 school year, and each school year

17

18 thereafter, Foundation Aid, the Transportation Supplement, and
18

19 Salary Incentive Aid shall be calculated as follows:
19

20  1. Foundation Aid shall be determined by subtracting the amount

20

21 of the Foundation Program Income from the cost of the Foundation
21

22 Program and adding to this difference the Transportation Supplement.
22

23  a. The Foundation Program shall be a district's higher

23

24                 weighted average daily membership based on the first

24

    Req. No. 1360                                           Page 4
1                  nine (9) weeks of the current school year or the

1

2                  preceding school year of a school district, as

2

3                  determined by the provisions of subsection A of

3

4                  Section 18-201.1 of this title and paragraphs 1, 2, 3,

4

5                  and 4 of subsection B of Section 18-201.1 of this

5

6                  title, multiplied by the Base Foundation Support

6

7                  Level. However, for the portion of weighted

7

8                  membership derived from nonresident, transferred

8

9                  pupils enrolled in online courses, the Foundation

9

10                 Program shall be a district's weighted average daily

10

11                 membership of the preceding school year or the first

11

12                 nine (9) weeks of the current school year, whichever

12

13                 is greater, as determined by the provisions of

13

14                 subsection A of Section 18-201.1 of this title and

14

15                 paragraphs 1, 2, 3, and 4 of subsection B of Section

15

16                 18-201.1 of this title, multiplied by the Base

16

17                 Foundation Support Level.

17

18  b. The Foundation Program Income shall be the sum of the

18

19                 following:

19

20                 (1) The the adjusted assessed valuation of the

20

21                 current school year of the school district, minus

21

22                 the previous year protested ad valorem tax

22

23                 revenues held as prescribed in Section 2884 of

23

24                 Title 68 of the Oklahoma Statutes, multiplied by

24

    Req. No. 1360                                               Page 5
1                  the mills levied pursuant to subsection (c) of

1

2                  Section 9 of Article X of the Oklahoma

2

3                  Constitution, if applicable, as adjusted in

3

4                  subsection (c) of Section 8A of Article X of the

4

5                  Oklahoma Constitution. For purposes of this

5

6                  subsection, the "adjusted assessed valuation of

6

7                  the current school year" shall be the adjusted

7

8                  assessed valuation on which tax revenues are

8

9                  collected during the current school year, and

9

10                 (2) Seventy-five seventy-five percent (75%) of the

10

11                 amount received by the school district from the

11

12                 proceeds of the county levy during the preceding

12

13                 fiscal year, as levied pursuant to subsection (b)

13

14                 of Section 9 of Article X of the Oklahoma

14

15                 Constitution, and

15

16                 (3) motor vehicle collections, and

16

17                 (4) gross production tax, and

17

18                 (5) state apportionment, and

18

19                 (6) R.E.A. tax.

19

20                 The items listed in divisions (3), (4), (5), and (6)

20

21                 of this subparagraph shall consist of the amounts

21

22                 actually collected from such sources during the

22

23                 preceding fiscal year calculated on a per capita basis

23

24

24

    Req. No. 1360                                          Page 6
1                  on the unit provided for by law for the distribution

1

2                  of each such revenue.

2

3   2. The Transportation Supplement shall be equal to the average

3

4 daily haul times the per capita allowance times the appropriate
4

5 transportation factor.
5

6   a. The average daily haul shall be the number of children

6

7                  in a district who are legally transported and who live

7

8                  one and one-half (1 1/2) miles or more from school.

8

9   b. The per capita allowance shall be determined using the

9

10                 following chart:

10

11                 PER CAPITA                              PER CAPITA

11

12 DENSITY FIGURE  ALLOWANCE              DENSITY FIGURE   ALLOWANCE
12

13 .3000 - .3083   $167.00                .9334 - .9599    $99.00
13

14 .3084 - .3249   $165.00                .9600 - .9866    $97.00
14

15 .3250 - .3416   $163.00                .9867 - 1.1071   $95.00
15

16 .3417 - .3583   $161.00                1.1072 - 1.3214  $92.00
16

17 .3584 - .3749   $158.00                1.3215 - 1.5357  $90.00
17

18 .3750 - .3916   $156.00                1.5358 - 1.7499  $88.00
18

19 .3917 - .4083   $154.00                1.7500 - 1.9642  $86.00
19

20 .4084 - .4249   $152.00                1.9643 - 2.1785  $84.00
20

21 .4250 - .4416   $150.00                2.1786 - 2.3928  $81.00
21

22 .4417 - .4583   $147.00                2.3929 - 2.6249  $79.00
22

23 .4584 - .4749   $145.00                2.6250 - 2.8749  $77.00
23

24 .4750 - .4916   $143.00                2.8750 - 3.1249  $75.00
24

    Req. No. 1360                                          Page 7
1 .4917 - .5083    $141.00  3.1250 - 3.3749  $73.00
1

2 .5084 - .5249    $139.00  3.3750 - 3.6666  $70.00
2

3 .5250 - .5416    $136.00  3.6667 - 3.9999  $68.00
3

4 .5417 - .5583    $134.00  4.0000 - 4.3333  $66.00
4

5 .5584 - .5749    $132.00  4.3334 - 4.6666  $64.00
5

6 .5750 - .5916    $130.00  4.6667 - 4.9999  $62.00
6

7 .5917 - .6133    $128.00  5.0000 - 5.5000  $59.00
7

8 .6134 - .6399    $125.00  5.5001 - 6.0000  $57.00
8

9 .6400 - .6666    $123.00  6.0001 - 6.5000  $55.00
9

10 .6667 - .6933   $121.00  6.5001 - 7.0000  $53.00
10

11 .6934 - .7199   $119.00  7.0001 - 7.3333  $51.00
11

12 .7200 - .7466   $117.00  7.3334 - 7.6667  $48.00
12

13 .7467 - .7733   $114.00  7.6668 - 8.0000  $46.00
13

14 .7734 - .7999   $112.00  8.0001 - 8.3333  $44.00
14

15 .8000 - .8266   $110.00  8.3334 - 8.6667  $42.00
15

16 .8267 - .8533   $108.00  8.6668 - 9.0000  $40.00
16

17 .8534 - .8799   $106.00  9.0001 - 9.3333  $37.00
17

18 .8800 - .9066   $103.00  9.3334 - 9.6667  $35.00
18

19 .9067 - .9333   $101.00  9.6668 or more   $33.00
19

20  c. The formula transportation factor shall be 2.0.

20

21  3. Salary Incentive Aid shall be determined as follows:

21

22  a. Multiply the Incentive Aid guarantee by the district's

22

23                 higher weighted average daily membership based on the

23

24                 first nine (9) weeks of the current school year or the

24

    Req. No. 1360                            Page 8
1                  preceding school year of a school district, as

1

2                  determined by the provisions of subsection A of

2

3                  Section 18-201.1 of this title and paragraphs 1, 2, 3,

3

4                  and 4 of subsection B of Section 18-201.1 of this

4

5                  title.

5

6   b. Divide the district's adjusted assessed valuation of

6

7                  the current school year minus the previous year's

7

8                  protested ad valorem tax revenues held as prescribed

8

9                  in Section 2884 of Title 68 of the Oklahoma Statutes,

9

10                 by one thousand (1,000) and subtract the quotient from

10

11                 the product of subparagraph a of this paragraph. The

11

12                 remainder shall not be less than zero (0).

12

13  c. Multiply the number of mills levied for general fund

13

14                 purposes above the fifteen (15) mills required to

14

15                 support Foundation Aid pursuant to division (1) of

15

16                 subparagraph b of paragraph 1 of this subsection, not

16

17                 including the county four-mill levy, by the remainder

17

18                 of subparagraph b of this paragraph. The product

18

19                 shall be the Salary Incentive Aid of the district.

19

20  E. By June 30, 1998, the State Department of Education shall

20

21 develop and the Department and all school districts shall have
21

22 implemented a student identification system which is consistent with
22

23 the provisions of subsections C D and D E of Section 3111 of Title
23

24 74 of the Oklahoma Statutes. The student identification system
24

    Req. No. 1360                                              Page 9
1 shall be used specifically for the purpose of reporting enrollment
1

2 data by school sites and by school districts, the administration of
2

3 the Oklahoma School Testing Program Act, the collection of
3

4 appropriate and necessary data pursuant to the Oklahoma Educational
4

5 Indicators Program, determining student enrollment, establishing a
5

6 student mobility rate, allocation of the State Aid Formula, and
6

7 midyear adjustments in funding for student growth. This enrollment
7

8 data shall be submitted to the State Department of Education in
8

9 accordance with rules promulgated by the State Board of Education.
9

10 Funding for the development, implementation, personnel training, and
10

11 maintenance of the student identification system shall be set out in
11

12 a separate line item in the allocation section of the appropriation
12

13 bill for the State Board of Education for each year.
13

14  F. 1. In the event that ad valorem taxes of a school district

14

15 are determined to be uncollectible because of bankruptcy, clerical
15

16 error, or a successful tax protest, and the amount of such taxes
16

17 deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or
17

18 an amount greater than twenty-five percent (25%) of ad valorem taxes
18

19 per tax year, or the valuation of a district is lowered by order of
19

20 the State Board of Equalization, the school district's State Aid,
20

21 for the school year that such ad valorem taxes are calculated in the
21

22 State Aid Formula, shall be determined by subtracting the net
22

23 assessed valuation of the property upon which taxes were deemed
23

24 uncollectible from the assessed valuation of the school district and
24

    Req. No. 1360                                        Page 10
1 the state. Upon request of the local board of education, it shall
1

2 be the duty of the county assessor to certify to the Director of
2

3 Finance of the State Department of Education the net assessed
3

4 valuation of the property upon which taxes were determined
4

5 uncollectible.
5

6   2. In the event that the amount of funds a school district

6

7 receives for reimbursement from the Ad Valorem Reimbursement Fund is
7

8 less than the amount of funds claimed for reimbursement by the
8

9 school district due to insufficiency of funds as provided in Section
9

10 193 of Title 62 of the Oklahoma Statutes, then the school district's
10

11 assessed valuation for the school year that such ad valorem
11

12 reimbursement is calculated in the State Aid Formula shall be
12

13 adjusted accordingly.
13

14  G. 1. Notwithstanding the provisions of Section 18-112.2 of

14

15 this title, a school district shall have its State Aid reduced by an
15

16 amount equal to the amount of carryover in the general fund of the
16

17 district as of June 30 of the preceding fiscal year, that is in
17

18 excess of the following standards for two (2) consecutive years:
18

19                 Total Amount of             Amount of

19

20                 General Fund Collections,   General Fund

20

21                 Excluding Previous Year     Balance

21

22                 Cash Surplus as of June 30  Allowable

22

23  Less than $1,000,000                                          48%

23

24  $1,000,000 - $2,999,999                                       42%

24

    Req. No. 1360                                             Page 11
1   $3,000,000 - $3,999,999                                       36%

1

2   $4,000,000 - $4,999,999                                       30%

2

3   $5,000,000 - $5,999,999                                       24%

3

4   $6,000,000 - $7,999,999                                       22%

4

5   $8,000,000 - $9,999,999                                       19%

5

6   $10,000,000 or more                                           17%

6

7   2. By February 1 the State Department of Education shall send

7

8 by certified mail, with return receipt requested, to each school
8

9 district superintendent, auditor, and regional accreditation officer
9

10 a notice of and calculation sheet reflecting the general fund
10

11 balance penalty to be assessed against that school district.
11

12 Calculation of the general fund balance penalty shall not include
12

13 federal revenue. Within thirty (30) days of receipt of this written
13

14 notice the school district shall submit to the Department a written
14

15 reply either accepting or protesting the penalty to be assessed
15

16 against the district. If protesting, the school district shall
16

17 submit with its reply the reasons for rejecting the calculations and
17

18 documentation supporting those reasons. The Department shall review
18

19 all school district penalty protest documentation and notify each
19

20 district by March 15 of its finding and the final penalty to be
20

21 assessed to each district. General fund balance penalties shall be
21

22 assessed to all school districts by April 1.
22

23  3. Any school district which receives proceeds from a tax

23

24 settlement or a Federal Emergency Management Agency settlement
24

    Req. No. 1360                                Page 12
1 during the last two (2) months of the preceding fiscal year shall be
1

2 exempt from the penalties assessed in this subsection, if the
2

3 penalty would occur solely as a result of receiving funds from the
3

4 tax settlement.
4

5   4. Any school district which receives an increase in State Aid

5

6 because of a change in Foundation Aid and/or Salary Incentive Aid
6

7 factors during the last two (2) months of the preceding fiscal year
7

8 shall be exempt from the penalties assessed in this subsection, if
8

9 the penalty would occur solely as a result of receiving funds from
9

10 the increase in State Aid.
10

11  5. If a school district does not receive Foundation Aid and/or

11

12 Salary Incentive Aid during the preceding fiscal year, the State
12

13 Board of Education may waive the penalty assessed in this subsection
13

14 if the penalty would result in a loss of more than forty percent
14

15 (40%) of the remaining State Aid to be allocated to the school
15

16 district between April 1 and the remainder of the school year and if
16

17 the Board determines the penalty will cause the school district not
17

18 to meet remaining financial obligations.
18

19  6. Any school district which receives gross production revenue

19

20 apportionment during the 2002-2003 school year or in any subsequent
20

21 school year that is greater than the gross production revenue
21

22 apportionment of the preceding school year shall be exempt from the
22

23 penalty assessed in this subsection, if the penalty would occur
23

24

24

    Req. No. 1360                            Page 13
1 solely as a result of the gross production revenue apportionment, as
1

2 determined by the State Board of Education.
2

3   7. Beginning July 1, 2003, school districts that participate in

3

4 consolidation or annexation pursuant to the provisions of the
4

5 Oklahoma School Consolidation and Annexation Act shall be exempt
5

6 from the penalty assessed in this subsection for the school year in
6

7 which the consolidation or annexation occurs and for the next three
7

8 (3) fiscal years.
8

9   8. Any school district which receives proceeds from a sales tax

9

10 levied by a municipality pursuant to Section 22-159 of Title 11 of
10

11 the Oklahoma Statutes or proceeds from a sales tax levied by a
11

12 county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes
12

13 during the 2003-2004 school year or the 2004-2005 school year shall
13

14 be exempt from the penalties assessed in this subsection, if the
14

15 penalty would occur solely as a result of receiving funds from the
15

16 sales tax levy.
16

17  9. Any school district which has an amount of carryover in the

17

18 general fund of the district in excess of the limits established in
18

19 paragraph 1 of this subsection during the fiscal years beginning
19

20 July 1, 2020, July 1, 2021, July 1, 2022, and July 1, 2023, shall
20

21 not be assessed a general fund balance penalty as provided for in
21

22 this subsection.
22

23

23

24

24

    Req. No. 1360                              Page 14
1   10. For purposes of calculating the general fund balance

1

2 penalty, the terms "carryover" and "general fund balance" shall not
2

3 include federal revenue.
3

4   H. In order to provide startup funds for the implementation of

4

5 early childhood programs, State Aid may be advanced to school
5

6 districts that initially start early childhood instruction at a
6

7 school site. School districts that desire such advanced funding
7

8 shall make application to the State Department of Education no later
8

9 than September 15 of each year and advanced funding shall be awarded
9

10 to the approved districts no later than October 30. The advanced
10

11 funding shall not exceed the per pupil amount of State Aid as
11

12 calculated in subsection D of this section per anticipated Head
12

13 Start eligible student. The total amount of advanced funding shall
13

14 be proportionately reduced from the monthly payments of the
14

15 district's State Aid payments during the last six (6) months of the
15

16 same fiscal year.
16

17  I. 1. Beginning July 1, 1996, the Oklahoma Tax Commission,

17

18 notwithstanding any provision of law to the contrary, shall report
18

19 monthly to the State Department of Education the monthly
19

20 apportionment of the following information:
20

21  a. the assessed valuation of property,

21

22  b. motor vehicle collections,

22

23  c. R.E.A. tax collected, and

23

24  d. gross productions tax collected.

24

    Req. No. 1360                                            Page 15
1   2. Beginning July 1, 1997, the State Auditor and Inspector's

1

2 Office of the State Auditor and Inspector, notwithstanding any
2

3 provision of law to the contrary, shall report monthly to the State
3

4 Department of Education the monthly apportionment of the proceeds of
4

5 the county levy.
5

6   3. Beginning July 1, 1996, the Commissioners of the Land

6

7 Office, notwithstanding any provision of law to the contrary, shall
7

8 report monthly to the State Department of Education the monthly
8

9 apportionment of state apportionment.
9

10  4. Beginning July 1, 1997, the county treasurers' offices,

10

11 notwithstanding any provision of law to the contrary, shall report
11

12 monthly to the State Department of Education the ad valorem tax
12

13 protest amounts for each county.
13

14  5. The information reported by the Tax Commission, the State

14

15 Auditor and Inspector's Office of the State Auditor and Inspector,
15

16 the county treasurers' offices, and the Commissioners of the Land
16

17 Office, pursuant to this subsection shall be reported by a school
17

18 district on forms developed by the State Department of Education.
18

19  SECTION 2.      AMENDATORY       70 O.S. 2021, Section 18-201.1, as

19

20 amended by Section 2, Chapter 280, O.S.L. 2023 (70 O.S. Supp. 2024,
20

21 Section 18-201.1), is amended to read as follows:
21

22  Section 18-201.1. A. Beginning with the 2020-21 school year,

22

23 and each school year thereafter, the weighted membership of a school
23

24 district for calculation of Foundation Aid purposes pursuant to
24

    Req. No. 1360                                     Page 16
1 paragraph 1 of subsection D of Section 18-200.1 of this title shall
1

2 be the sum of the weighted pupil grade level calculation, the
2

3 weighted pupil category calculation, the weighted district
3

4 calculation, and the weighted teacher experience and degree
4

5 calculation. The weighted membership of a school district for
5

6 calculation of Salary Incentive Aid purposes pursuant to paragraph 3
6

7 of subsection D of Section 18-200.1 of this title shall be the sum
7

8 of the weighted pupil grade level calculation, the weighted pupil
8

9 category calculation, the weighted district calculation, and the
9

10 weighted teacher experience and degree calculation.
10

11  B. Beginning with the 2022-2023 2026-2027 school year, the

11

12 weighted calculations provided for in subsection A of this section
12

13 shall be based on the higher weighted average daily membership of
13

14 the first nine (9) weeks of the current school year or the preceding
14

15 school year of a school district, unless otherwise specified. The
15

16 higher of the two (2) weighted average daily memberships membership
16

17 shall be used consistently in all of the calculations; however, the
17

18 weighted calculation for a statewide virtual charter school
18

19 experiencing a significant decline in membership shall be based on
19

20 the first nine (9) weeks of the current school year for the
20

21 statewide virtual charter school. For purposes of this subsection,
21

22 "significant decline in membership" means equal to or greater than a
22

23 fifteen percent (15%) decrease in average daily membership from the
23

24 preceding school year to the average daily membership of the first
24

    Req. No. 1360                                             Page 17
1 nine (9) weeks of the current school year. The average daily
1

2 membership data used for all calculations in paragraphs 1, 2, 3, and
2

3 4 of this subsection shall be the same as used in the calculation of
3

4 the State Aid Formula. The weighted calculations provided for in
4

5 subsection A of this section shall be determined as follows:
5

6   1. The weighted pupil grade level calculation shall be

6

7 determined by taking the highest average daily membership and
7

8 assigning weights to the pupils according to grade attended as
8

9 follows:
9

10                 GRADE LEVEL                    WEIGHT

10

11          a. Half-day early childhood programs                .7

11

12          b. Full-day early childhood programs            1.3

12

13          c. Half-day kindergarten                        1.3

13

14          d. Full-day kindergarten                        1.5

14

15          e. First and second grade             1.351

15

16          f. Third grade                        1.051

16

17          g. Fourth through sixth grade                   1.0

17

18          h. Seventh through twelfth grade                1.2

18

19          i. Out-of-home placement              1.50

19

20 Multiply the membership of each subparagraph of this paragraph by
20

21 the weight assigned to such subparagraph of this paragraph and add
21

22 the totals together to determine the weighted pupil grade level
22

23 calculation for a school district. Determination of the pupils
23

24 eligible for the early childhood program weight shall be pursuant to
24

    Req. No. 1360                                 Page 18
1 the provisions of Section 1-114 of this title. The pupils eligible
1

2 for the out-of-home placement pupil weight shall be students who are
2

3 not residents of the school district in which they are receiving
3

4 education pursuant to the provisions of subsection D of Section 1-
4

5 113 of this title. Such weight may be claimed by the district
5

6 providing educational services to such student for the days that
6

7 student is enrolled in that district. If claimed, the out-of-home
7

8 placement weight shall be in lieu of the pupil grade level and any
8

9 pupil category weights for that student. Provided, if a student
9

10 resides in a juvenile detention center that is restricted to less
10

11 than twelve (12) beds, the out-of-home placement pupil weight for
11

12 such students shall be calculated as follows: for a center with six
12

13 (6) beds - 3.0; for a center with eight (8) beds - 2.3; and for a
13

14 center with ten (10) beds - 1.80.
14

15  2. The weighted pupil category calculation shall be determined

15

16 by assigning a weight to the pupil category as follows:
16

17                 CATEGORY                                 WEIGHT

17

18  a. Visual Impairment                                    3.8

18

19  b. Specific Learning Disability                         .4

19

20  c. Deafness or Hearing Impairment                       2.9

20

21  d. Deaf-Blindness                                       3.8

21

22  e. Intellectual Disability                              1.3

22

23  f. Emotional Disturbance                                2.5

23

24  g. Gifted                                               .34

24

    Req. No. 1360                                           Page 19
1   h. Multiple Disabilities                                    2.4

1

2   i. Orthopedic Impairment                                    1.2

2

3   j. Speech or Language Impairment                            .05

3

4   k. Bilingual                                                .25

4

5   l. Special Education Summer Program                         1.2

5

6   m. Economically Disadvantaged                               .3

6

7   n. Optional Extended School Year

7

8                  Program               As determined by

8

9                                        the State Board

9

10                                       of Education

10

11  o. Autism                                                   2.4

11

12  p. Traumatic Brain Injury                                   2.4

12

13  q. Other Health Impairment                                  1.2

13

14 Except as otherwise provided, multiply the number of pupils approved
14

15 in the school year with the highest average daily membership in each
15

16 category by the weight assigned to such category and add the totals
16

17 together to determine the weighted pupil category calculation for a
17

18 school district. For the 1997-98 school year and subsequent school
18

19 years, the number to be multiplied by the weight assigned to the
19

20 gifted category in subparagraph g of this paragraph shall be the
20

21 lesser of (1) the sum of the number of students who scored in the
21

22 top three percent (3%) on any national standardized test of
22

23 intellectual ability plus the number of students identified as
23

24 gifted pursuant to subparagraphs a through d of paragraph 1 of
24

    Req. No. 1360                        Page 20
1 Section 1210.301 of this title, or (2) the sum of the number of
1

2 students who scored in the top three percent (3%) on any national
2

3 standardized test of intellectual ability plus eight percent (8%) of
3

4 the total average daily membership of the school district for the
4

5 first nine (9) weeks of the school year.
5

6   3. The weighted district calculation shall be determined by

6

7 determining the calculations for each school district for both the
7

8 small school district formula and the district sparsity - isolation
8

9 formula, applying whichever is the greater of the calculations of
9

10 the two formulas and then applying the restrictions pursuant to
10

11 subparagraph c of this paragraph.
11

12  a. Small school district formula: 750 minus the average

12

13                 daily membership divided by 750 times .2 times total

13

14                 average daily membership.

14

15  The small school district formula calculation shall apply

15

16  only to school districts whose highest average daily

16

17  membership is less than 750 pupils. School districts which

17

18  are consolidated or annexed after July 1, 2003, pursuant to

18

19  the Oklahoma School Voluntary Consolidation and Annexation

19

20  Act shall have the weighted district size calculation for

20

21  the three (3) school years following the fiscal year in

21

22  which such consolidation occurred calculated to be the sum

22

23  of the individual consolidated districts computed as if the

23

24  consolidation had not taken place. Thereafter, any such

24

    Req. No. 1360                             Page 21
1   district which is consolidated pursuant to the Oklahoma

1

2   School Voluntary Consolidation and Annexation Act shall not

2

3   qualify for the weighted district calculation unless the

3

4   district can satisfy the specifications herein. Subject to

4

5   the provisions of subparagraph c of this paragraph, the

5

6   resulting number shall be counted as additional students

6

7   for the purpose of calculating State Aid.

7

8   b. District sparsity - isolation formula:

8

9   The district sparsity - isolation formula calculation shall

9

10  apply only to school districts:

10

11                 (1) whose total area in square miles is greater than

11

12                 the average number of square miles for all school

12

13                 districts in this state;, and

13

14                 (2) whose areal density is less than one-fourth (1/4)

14

15                 of the state average areal density. Areal

15

16                 density shall be determined by dividing the

16

17                 school district's average daily membership by the

17

18                 school district's total area in square miles.

18

19  The district sparsity - isolation formula calculation shall

19

20  be calculated as follows:

20

21                 The school district student cost factor multiplied by

21

22                 the school district area factor. The resulting

22

23                 product shall be multiplied by the school district's

23

24                 average daily membership. Subject to the provisions

24

    Req. No. 1360                                 Page 22
1                  of subparagraph c of this paragraph, the resulting

1

2                  number shall be counted as additional students for the

2

3                  purpose of calculating State Aid.

3

4   The school district student cost factor shall be calculated

4

5   as follows:

5

6                  The school district's average daily membership shall

6

7                  be categorized into the following grade level groups

7

8                  and applied to the appropriate formulas as computed

8

9                  below:

9

10  Grade Level Group

10

11  Grades K-5             Divide 74 by the sum of the Grade

11

12                         Level ADM plus 23,

12

13                         add .85 to the quotient, then

13

14                         multiply the sum by the Grade

14

15                         Level ADM.

15

16  Grades 6-8             Divide 122 by the sum of the Grade

16

17                         Level ADM plus 133,

17

18                         add .85 to the quotient, then

18

19                         multiply the sum by the Grade

19

20                         Level ADM.

20

21  Grades 9-12            Divide 292 by the sum of the Grade

21

22                         Level ADM plus 128,

22

23                         add .78 to the quotient, then

23

24                         multiply the sum by the Grade

24

    Req. No. 1360                                              Page 23
1                  Level ADM.

1

2                  The sum of the grade level group's average daily

2

3                  membership shall be divided by the school district's

3

4                  average daily membership. The number one (1.0) shall

4

5                  be subtracted from the resulting quotient.

5

6   The school district area cost factor shall be calculated as

6

7   follows:

7

8                  Subtract the state average district area from the

8

9                  district area, then divide the remainder by the state

9

10                 average district area;

10

11  however, the district area cost factor shall not exceed one

11

12  (1.0).

12

13  The State Board of Education shall define geographical barriers

13

14 whose location in a school district would inhibit the district from
14

15 consolidation or annexation. The Board shall make available an
15

16 application process, review applications, and for districts the
16

17 Board deems necessary allow additional square miles to be used for
17

18 the purposes of calculations used for the weighted district sparsity
18

19 - isolation formula. Provided, that the additional square miles
19

20 allowed for geographical barriers shall not exceed thirty percent
20

21 (30%) of the district's actual size.
21

22  c. State Aid funds which a district is calculated to

22

23                 receive as a result of the weighted district

23

24                 calculation shall be restricted as follows:

24

    Req. No. 1360                                                Page 24
1                  If, after the weighted district calculation is

1

2                  applied, the district's projected per pupil

2

3                  revenue exceeds one hundred fifty percent (150%)

3

4                  of the projected state average per pupil revenue,

4

5                  then the district's State Aid shall be reduced by

5

6                  an amount that will restrict the district's

6

7                  projected per pupil revenue to one hundred fifty

7

8                  percent (150%) of the projected state average per

8

9                  pupil revenue. Provided, in applying the

9

10                 restriction provided in this division, the

10

11                 district's State Aid shall not be reduced by an

11

12                 amount greater than by the amount of State Aid

12

13                 which was generated by the weighted district

13

14                 calculation.

14

15                 The July calculation of the projected per pupil

15

16                 revenue shall be determined by dividing the district's

16

17                 preceding year's average daily membership (ADM) for

17

18                 the first nine (9) weeks of the current school year as

18

19                 weighted by the pupil grade level, the pupil category,

19

20                 the district and the teacher experience degree index

20

21                 calculations for projected State Aid into the

21

22                 district's projected total revenues including

22

23                 projected funds for the State Aid Formula for the

23

24                 preceding year, net assessed valuation for the

24

    Req. No. 1360                Page 25
1                  preceding calendar year times thirty-nine (39) mills,

1

2                  county revenues excluding the county four-mills

2

3                  revenues for the second preceding year, other state

3

4                  appropriations for the preceding year, and the

4

5                  collections for the preceding year of state

5

6                  apportionment, motor vehicle revenue, gross production

6

7                  tax, and R.E.A. tax.

7

8                  The December calculation of the projected per pupil

8

9                  revenue shall be determined by dividing the higher of

9

10                 the district's first nine (9) weeks of the current

10

11                 school year or the preceding school year's average

11

12                 daily membership (ADM) as weighted by the pupil grade

12

13                 level, the pupil category, the district and the

13

14                 teacher experience degree index calculations for

14

15                 projected State Aid into the district's projected

15

16                 total revenues including funds for the December

16

17                 calculation of the current year State Aid Formula, net

17

18                 assessed valuation for the current calendar year times

18

19                 thirty-nine (39) mills, county revenues excluding the

19

20                 county four-mills revenue for the preceding year,

20

21                 other state appropriations for the preceding year, and

21

22                 the collections for the preceding year of state

22

23                 apportionment, motor vehicle revenue, gross production

23

24                 tax, and R.E.A. tax.

24

    Req. No. 1360                                               Page 26
1                  The district's projected total revenues for each

1

2                  calculation shall exclude the following collections

2

3                  for the second preceding year: federal revenue,

3

4                  insurance loss payments, reimbursements, recovery of

4

5                  overpayments and refunds, unused reserves, prior

5

6                  expenditures recovered, prior year surpluses, and

6

7                  other local miscellaneous revenues.

7

8   4. The weighted teacher experience and degree calculation shall

8

9 be determined in accordance with the teacher experience and degree
9

10 index. The State Department of Education shall determine an index
10

11 for each state teacher by using data supplied in the school
11

12 district's teacher personnel reports of the preceding first nine (9)
12

13 weeks of the current school year and utilizing the index as follows:
13

14                 TEACHER EXPERIENCE - DEGREE INDEX

14

15 EXPERIENCE      BACHELOR'S  MASTER'S                 DOCTOR'S
15

16                 DEGREE      DEGREE                   DEGREE

16

17 0 - 2           .7          .9                       1.1
17

18 3 - 5           .8          1.0                      1.2

18

19 6 - 8           .9          1.1                      1.3

19

20 9 - 11          1.0         1.2                      1.4

20

21 12 - 15         1.1         1.3                      1.5

21

22 Over 15         1.2         1.4                      1.6

22

23  The school district teacher index for each school district shall

23

24 be determined by subtracting the weighted average state teacher from
24

    Req. No. 1360                                       Page 27
1 the weighted average district teacher. Multiply the school district
1

2 teacher index if greater than zero by .7 and then multiply that
2

3 product by the sum of the district's weighted pupil grade level
3

4 calculation provided in paragraph 1 of this subsection and the
4

5 weighted pupil category calculation provided in subparagraph m of
5

6 paragraph 2 of this subsection to determine the weighted teacher
6

7 experience and degree calculation.
7

8   SECTION 3.     NEW LAW   A new section of law to be codified

8

9 in the Oklahoma Statutes as Section 18-201.2 of Title 70, unless
9

10 there is created a duplication in numbering, reads as follows:
10

11  A. The State Department of Education shall administer a

11

12 transitional grant program to provide transition grants to public
12

13 school districts in this state that receive a five percent (5%)
13

14 reduction in State Aid allocations between the 2025-2026 school year
14

15 and the 2026-2027 school year. Grants shall be provided subject to
15

16 availability of funding.
16

17  B. By December 31, 2026, the Department shall electronically

17

18 submit a report to the Governor, the President Pro Tempore of the
18

19 Senate, and the Speaker of the House of Representatives a report
19

20 evaluating:
20

21  1. The financial impact of the funding reforms implemented

21

22 pursuant to Sections 18-200.1 and 18-201.1 of Title 70 of the
22

23 Oklahoma Statutes in the 2026-2027 school year;
23

24

24

    Req. No. 1360                                   Page 28
1   2. Changes in educational outcomes correlated with the funding

1

2 reforms implemented pursuant to Sections 18-200.1 and 18-201.1 of
2

3 Title 70 of the Oklahoma Statutes in the 2026-2027 school year; and
3

4   3. Recommendations for further improvements to the State Aid

4

5 funding formula.
5

6   SECTION 4. This act shall become effective July 1, 2025.

6

7   SECTION 5. It being immediately necessary for the preservation

7

8 of the public peace, health, or safety, an emergency is hereby
8

9 declared to exist, by reason whereof this act shall take effect and
9

10 be in full force from and after its passage and approval.
10

11

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    Req. No. 1360                                             Page 29
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