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Oklahoma Legislature· SB 240Placed on General Order

An act relating to school funding, the official text

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1                    STATE OF OKLAHOMA

1

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

2

3 SENATE BILL 240               By: Pugh
3

4

4

5                               AS INTRODUCED

5

6   An Act relating to school funding; amending 70 O.S.

6   2021, Sections 18-107, 18-200.1, as amended by

7   Section 1, Chapter 280, O.S.L. 2023, and 18-201.1, as

7   amended by Section 2, Chapter 280, O.S.L. 2023 (70

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

8   which relate to the allocation of State Aid; removing

9   certain definition; modifying calculation of State

9   Aid beginning in certain school year; increasing

10  percentage of certain funds to be retained; modifying

10  calculation of Foundation Program Income; modifying

11  calculation of Salary Incentive Aid; removing

11  language directing the State Department of Education

12  to develop certain student identification system;

12  removing language providing for calculation of

13  uncollectible ad valorem taxes; removing language

13  providing for calculation of insufficient

14  reimbursements from the Ad Valorem Reimbursement

14  Fund; removing outdated language; modifying

15  information to be reported monthly by the Oklahoma

15  Tax Commission; removing requirement for reporting of

16  certain county levy apportionment; removing

16  requirement for reporting of certain ad valorem tax

17  protest amounts; updating statutory language;

17  updating statutory references; and providing an

18  effective date.

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 18-107, is

21

22 amended to read as follows:
22

23  Section 18-107. As used in this title:

23

24

24

    Req. No. 261                                              Page 1
1   1. "Average Daily Attendance" "Average daily attendance" (ADA)

1

2 means the legal average number of pupils, early childhood education
2

3 programs through grade twelve, in a school district during a school
3

4 year as determined pursuant to the provisions of Section 18-111 of
4

5 this title. A day of school for early childhood education programs
5

6 and kindergarten shall be at least two and one-half (2 1/2) hours
6

7 and, for early childhood education, may be six (6) hours.;
7

8   2. "Average Daily Membership" "Average daily membership" (ADM)

8

9 means the average number of pupils present and absent in a school
9

10 district during a school year. Average Daily Membership daily
10

11 membership shall be calculated by dividing the sum of the pupil's
11

12 total days present and total days absent by the number of days
12

13 taught.
13

14          a. A pupil who has been absent without excuse ten (10)

14

15                consecutive days shall be taken off the roll beginning

15

16                the eleventh day and thereafter shall not be

16

17                considered in a district's average daily membership

17

18                ADM calculation until the pupil is placed on the roll

18

19                in the district. For the purpose of this paragraph

19

20                subparagraph, consecutive days means days for which

20

21                enrollment is recorded.

21

22          b. A pupil enrolled in a statewide virtual charter school

22

23                who is behind pace and has not completed instructional

23

24                activity as defined by Section 3-145.8 of this title

24

    Req. No. 261                                                Page 2
1                 for a fifteen-school-day period, without excuse as

1

2                 authorized by Section 10-105 of this title, shall be

2

3                 taken off the roll beginning the sixteenth day and

3

4                 thereafter shall not be considered in the virtual

4

5                 charter school's Average Daily Membership ADM

5

6                 calculation until the pupil is placed on the roll in

6

7                 the virtual charter school.; and

7

8   3. "Total Adjusted Assessed Valuation" means the sum of public

8

9 service property assessed valuation, personal property assessed
9

10 valuation and real property assessed valuation as adjusted pursuant
10

11 to the provisions of Section 18-109.1 of this title.
11

12  4. "Eighty-five percent (85%) of maximum allowable", for the

12

13 purpose of assessing class size penalty pursuant to Sections 18-
13

14 113.1 and 18-113.2 of this title, means eighty-five percent (85%) of
14

15 ten percent (10%) of the preceding year's net assessed valuation of
15

16 a school district. The calculation of indebtedness as provided for
16

17 in paragraph a of subsection G F of Section 18-113.1 and
17

18 subparagraph a of paragraph 4 of subsection A of Section 18-113.2 of
18

19 this title shall include the outstanding principal amount of bonds
19

20 issued by the school district plus the principal amount of any bonds
20

21 authorized by a vote of the people for issuance but not yet issued
21

22 by the school district.
22

23

23

24

24

    Req. No. 261                                             Page 3
1   SECTION 2.    AMENDATORY  70 O.S. 2021, Section 18-200.1, as

1

2 amended by Section 1, Chapter 280, O.S.L. 2023 (70 O.S. Supp. 2024,
2

3 Section 18-200.1), is amended to read as follows:
3

4   Section 18-200.1. A. Beginning with the 2022-2023 2026-2027

4

5 school year, and each school year thereafter, each school district
5

6 shall have its initial allocation of State Aid calculated based on
6

7 the ad valorem tax and state dedicated revenues actually collected
7

8 during the preceding fiscal year, the adjusted assessed valuation of
8

9 the preceding year, and the weighted average daily membership (ADM)
9

10 for the school district of the preceding school year. Each school
10

11 district shall submit the following data based on the first nine (9)
11

12 weeks, to be used in the calculation of the average daily membership
12

13 of the school district:
13

14  1. Student enrollment by grade level;

14

15  2. Pupil category counts; and

15

16  3. Transportation supplement data.

16

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

17

18 shall determine each school district's current year allocation
18

19 pursuant to subsection D of this section. The State Department of
19

20 Education shall complete an audit, using procedures established by
20

21 the Department, of the student enrollment by grade level data, pupil
21

22 category counts, and transportation supplement data to be used in
22

23 the State Aid Formula pursuant to subsection D of this section by
23

24 December 1 and by January 15 shall notify each school district of
24

    Req. No. 261                                     Page 4
1 the district's final State Aid allocation for the current school
1

2 year. The January payment of State Aid and each subsequent payment
2

3 for the remainder of the school year shall be based on the final
3

4 State Aid allocation as calculated in subsection D of this section.
4

5 Except for reductions made due to the assessment of penalties by the
5

6 State Department of Education according to law, the January payment
6

7 of State Aid and each subsequent payment for the remainder of the
7

8 school year shall not decrease by an amount more than the amount
8

9 that the current chargeable revenue increases for that district.
9

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

10

11 one and one-half percent (1 1/2%) four percent (4%) of the total
11

12 funds appropriated for financial support of schools, to be used to
12

13 make midyear adjustments in State Aid and which shall be reflected
13

14 in the final allocations. If the amount of appropriated funds,
14

15 including the one and one-half percent (1 1/2%) four percent (4%)
15

16 retained, remaining after January 1 of each year is not sufficient
16

17 to fully fund the final allocations, the Department shall
17

18 recalculate each school district's remaining allocation pursuant to
18

19 subsection D of this section using the reduced amount of
19

20 appropriated funds.
20

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

21

22 district shall receive shall be the sum of the Foundation Aid, the
22

23 Salary Incentive Aid, and the Transportation Supplement, as adjusted
23

24 pursuant to the provisions of subsection G E of this section and
24

    Req. No. 261                                              Page 5
1 Section 18-112.2 of this title; provided, no district having per
1

2 pupil revenue in excess of three hundred percent (300%) of the
2

3 average per pupil revenue of all districts shall receive any State
3

4 Aid or Supplement in State Aid.
4

5   The July calculation of per pupil revenue shall be determined by

5

6 dividing the district's second preceding year's total weighted
6

7 average daily membership (ADM) into the district's second preceding
7

8 year's total revenues excluding federal revenue, insurance loss
8

9 payments, reimbursements, recovery of overpayments and refunds,
9

10 unused reserves, prior expenditures recovered, prior year surpluses,
10

11 and less the amount of any transfer fees paid in that year.
11

12  The December calculation of per pupil revenue shall be

12

13 determined by dividing the district's preceding year's total
13

14 weighted average daily membership (ADM) into the district's
14

15 preceding year's total revenues excluding federal revenue, insurance
15

16 loss payments, reimbursements, recovery of overpayments and refunds,
16

17 unused reserves, prior expenditures recovered, prior year surpluses,
17

18 and less the amount of any transfer fees paid in that year.
18

19  D. For the 1997-98 2026-2027 school year, and each school year

19

20 thereafter, Foundation Aid, the Transportation Supplement, and
20

21 Salary Incentive Aid shall be calculated as follows:
21

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

22

23 of the Foundation Program Income from the cost of the Foundation
23

24 Program and adding to this difference the Transportation Supplement.
24

    Req. No. 261                                                Page 6
1   a. The Foundation Program shall be a district's higher

1

2                 weighted average daily membership based on the first

2

3                 nine (9) weeks of the current school year or the

3

4                 preceding school year of a school district, as

4

5                 determined by the provisions of subsection A of

5

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

6

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

7

8                 title, multiplied by the Base Foundation Support

8

9                 Level. However, for the portion of weighted

9

10                membership derived from nonresident, transferred

10

11                pupils enrolled in online courses, the Foundation

11

12                Program shall be a district's weighted average daily

12

13                membership of the preceding school year or the first

13

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

14

15                is greater, as determined by the provisions of

15

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

16

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

17

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

18

19                Foundation Support Level.

19

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

20

21                following:

21

22                (1) The adjusted assessed valuation of the current

22

23                school year of the school district, minus the

23

24                previous year protested ad valorem tax revenues

24

    Req. No. 261                                               Page 7
1                 held as prescribed in Section 2884 of Title 68 of

1

2                 the Oklahoma Statutes, multiplied by the mills

2

3                 levied the amount of ad valorem tax collections

3

4                 received by the school district from the proceeds

4

5                 of the levy during the preceding fiscal year, as

5

6                 levied pursuant to subsection (c) of Section 9 of

6

7                 Article X of the Oklahoma Constitution, if

7

8                 applicable, as adjusted in subsection (c) of

8

9                 Section 8A of Article X of the Oklahoma

9

10                Constitution. For purposes of this subsection,

10

11                the "adjusted assessed valuation of the current

11

12                school year" shall be the adjusted assessed

12

13                valuation on which tax revenues are collected

13

14                during the current school year, and

14

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

15

16                amount received by the school district from the

16

17                proceeds of the county levy during the preceding

17

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

18

19                of Section 9 of Article X of the Oklahoma

19

20                Constitution, and

20

21                (3) motor vehicle collections, and

21

22                (4) gross production tax, and

22

23                (5) state apportionment, and

23

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

24

    Req. No. 261                                           Page 8
1                 The items listed in divisions (1), (3), (4), (5), and

1

2                 (6) of this subparagraph shall consist of the amounts

2

3                 actually collected from such sources during the

3

4                 preceding fiscal year calculated on a per capita basis

4

5                 on the unit provided for by law for the distribution

5

6                 of each such revenue.

6

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

7

8 daily haul times the per capita allowance times the appropriate
8

9 transportation factor.
9

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

10

11                in a district who are legally transported and who live

11

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

12

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

13

14                following chart:

14

15                 PER CAPITA                             PER CAPITA

15

16 DENSITY FIGURE  ALLOWANCE             DENSITY FIGURE   ALLOWANCE
16

17 .3000 - .3083   $167.00               .9334 - .9599    $99.00
17

18 .3084 - .3249   $165.00               .9600 - .9866    $97.00
18

19 .3250 - .3416   $163.00               .9867 - 1.1071   $95.00
19

20 .3417 - .3583   $161.00               1.1072 - 1.3214  $92.00
20

21 .3584 - .3749   $158.00               1.3215 - 1.5357  $90.00
21

22 .3750 - .3916   $156.00               1.5358 - 1.7499  $88.00
22

23 .3917 - .4083   $154.00               1.7500 - 1.9642  $86.00
23

24 .4084 - .4249   $152.00               1.9643 - 2.1785  $84.00
24

    Req. No. 261                                          Page 9
1 .4250 - .4416   $150.00  2.1786 - 2.3928  $81.00
1

2 .4417 - .4583   $147.00  2.3929 - 2.6249  $79.00
2

3 .4584 - .4749   $145.00  2.6250 - 2.8749  $77.00
3

4 .4750 - .4916   $143.00  2.8750 - 3.1249  $75.00
4

5 .4917 - .5083   $141.00  3.1250 - 3.3749  $73.00
5

6 .5084 - .5249   $139.00  3.3750 - 3.6666  $70.00
6

7 .5250 - .5416   $136.00  3.6667 - 3.9999  $68.00
7

8 .5417 - .5583   $134.00  4.0000 - 4.3333  $66.00
8

9 .5584 - .5749   $132.00  4.3334 - 4.6666  $64.00
9

10 .5750 - .5916  $130.00  4.6667 - 4.9999  $62.00
10

11 .5917 - .6133  $128.00  5.0000 - 5.5000  $59.00
11

12 .6134 - .6399  $125.00  5.5001 - 6.0000  $57.00
12

13 .6400 - .6666  $123.00  6.0001 - 6.5000  $55.00
13

14 .6667 - .6933  $121.00  6.5001 - 7.0000  $53.00
14

15 .6934 - .7199  $119.00  7.0001 - 7.3333  $51.00
15

16 .7200 - .7466  $117.00  7.3334 - 7.6667  $48.00
16

17 .7467 - .7733  $114.00  7.6668 - 8.0000  $46.00
17

18 .7734 - .7999  $112.00  8.0001 - 8.3333  $44.00
18

19 .8000 - .8266  $110.00  8.3334 - 8.6667  $42.00
19

20 .8267 - .8533  $108.00  8.6668 - 9.0000  $40.00
20

21 .8534 - .8799  $106.00  9.0001 - 9.3333  $37.00
21

22 .8800 - .9066  $103.00  9.3334 - 9.6667  $35.00
22

23 .9067 - .9333  $101.00  9.6668 or more   $33.00
23

24  c. The formula transportation factor shall be 2.0.

24

    Req. No. 261                            Page 10
1   3. Salary Incentive Aid shall be determined as follows:

1

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

2

3                 higher weighted average daily membership based on the

3

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

4

5                 preceding school year of a school district, as

5

6                 determined by the provisions of subsection A of

6

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

7

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

8

9                 title.

9

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

10

11                the current school year minus the previous year's

11

12                protested ad valorem tax revenues held as prescribed

12

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

13

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

14

15                the product of subparagraph a of this paragraph. The

15

16                remainder shall not be less than zero (0) Subtract the

16

17                amount received by the school district from the

17

18                proceeds of the levy during the preceding fiscal year,

18

19                as levied pursuant to subsection (c) of Section 9 of

19

20                Article X of the Oklahoma Constitution above the

20

21                fifteen (15) mills required to support Foundation Aid

21

22                pursuant to division (1) of subparagraph b of

22

23                paragraph 1 of this subsection, not including the

23

24                county four-mill levy, by the product of subparagraph

24

    Req. No. 261          Page 11
1                 a of this paragraph. The remainder shall not be less

1

2                 than zero and shall be the Salary Incentive Aid of the

2

3                 district.

3

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

4

5                 purposes above the fifteen (15) mills required to

5

6                 support Foundation Aid pursuant to division (1) of

6

7                 subparagraph b of paragraph 1 of this subsection, not

7

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

8

9                 of subparagraph b of this paragraph. The product

9

10                shall be the Salary Incentive Aid of the district.

10

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

11

12 develop and the Department and all school districts shall have
12

13 implemented a student identification system which is consistent with
13

14 the provisions of subsections C and D of Section 3111 of Title 74 of
14

15 the Oklahoma Statutes. The student identification system shall be
15

16 used specifically for the purpose of reporting enrollment data by
16

17 school sites and by school districts, the administration of the
17

18 Oklahoma School Testing Program Act, the collection of appropriate
18

19 and necessary data pursuant to the Oklahoma Educational Indicators
19

20 Program, determining student enrollment, establishing a student
20

21 mobility rate, allocation of the State Aid Formula, and midyear
21

22 adjustments in funding for student growth. This enrollment data
22

23 shall be submitted to the State Department of Education in
23

24 accordance with rules promulgated by the State Board of Education.
24

    Req. No. 261                                               Page 12
1 Funding for the development, implementation, personnel training, and
1

2 maintenance of the student identification system shall be set out in
2

3 a separate line item in the allocation section of the appropriation
3

4 bill for the State Board of Education for each year.
4

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

5

6 are determined to be uncollectible because of bankruptcy, clerical
6

7 error, or a successful tax protest, and the amount of such taxes
7

8 deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or
8

9 an amount greater than twenty-five percent (25%) of ad valorem taxes
9

10 per tax year, or the valuation of a district is lowered by order of
10

11 the State Board of Equalization, the school district's State Aid,
11

12 for the school year that such ad valorem taxes are calculated in the
12

13 State Aid Formula, shall be determined by subtracting the net
13

14 assessed valuation of the property upon which taxes were deemed
14

15 uncollectible from the assessed valuation of the school district and
15

16 the state. Upon request of the local board of education, it shall
16

17 be the duty of the county assessor to certify to the Director of
17

18 Finance of the State Department of Education the net assessed
18

19 valuation of the property upon which taxes were determined
19

20 uncollectible.
20

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

21

22 receives for reimbursement from the Ad Valorem Reimbursement Fund is
22

23 less than the amount of funds claimed for reimbursement by the
23

24 school district due to insufficiency of funds as provided in Section
24

    Req. No. 261                                               Page 13
1 193 of Title 62 of the Oklahoma Statutes, then the school district's
1

2 assessed valuation for the school year that such ad valorem
2

3 reimbursement is calculated in the State Aid Formula shall be
3

4 adjusted accordingly.
4

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

5

6 this title, a school district shall have its State Aid reduced by an
6

7 amount equal to the amount of carryover in the general fund of the
7

8 district as of June 30 of the preceding fiscal year, that is in
8

9 excess of the following standards for two (2) consecutive years:
9

10                Total Amount of             Amount of

10

11                General Fund Collections,   General Fund

11

12                Excluding Previous Year     Balance

12

13                Cash Surplus as of June 30  Allowable

13

14                Less than $1,000,000                           48%

14

15                $1,000,000 - $2,999,999                        42%

15

16                $3,000,000 - $3,999,999                        36%

16

17                $4,000,000 - $4,999,999                        30%

17

18                $5,000,000 - $5,999,999                        24%

18

19                $6,000,000 - $7,999,999                        22%

19

20                $8,000,000 - $9,999,999                        19%

20

21                $10,000,000 or more                            17%

21

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

22

23 by certified mail, with return receipt requested, to each school
23

24 district superintendent, auditor, and regional accreditation officer
24

    Req. No. 261                              Page 14
1 a notice of and calculation sheet reflecting the general fund
1

2 balance penalty to be assessed against that school district.
2

3 Calculation of the general fund balance penalty shall not include
3

4 federal revenue. Within thirty (30) days of receipt of this written
4

5 notice the school district shall submit to the Department a written
5

6 reply either accepting or protesting the penalty to be assessed
6

7 against the district. If protesting, the school district shall
7

8 submit with its reply the reasons for rejecting the calculations and
8

9 documentation supporting those reasons. The Department shall review
9

10 all school district penalty protest documentation and notify each
10

11 district by March 15 of its finding and the final penalty to be
11

12 assessed to each district. General fund balance penalties shall be
12

13 assessed to all school districts by April 1.
13

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

14

15 settlement or a Federal Emergency Management Agency settlement
15

16 during the last two (2) months of the preceding fiscal year shall be
16

17 exempt from the penalties assessed in this subsection, if the
17

18 penalty would occur solely as a result of receiving funds from the
18

19 tax settlement.
19

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

20

21 because of a change in Foundation Aid and/or Salary Incentive Aid
21

22 factors during the last two (2) months of the preceding fiscal year
22

23 shall be exempt from the penalties assessed in this subsection, if
23

24

24

    Req. No. 261                                 Page 15
1 the penalty would occur solely as a result of receiving funds from
1

2 the increase in State Aid.
2

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

3

4 Salary Incentive Aid during the preceding fiscal year, the State
4

5 Board of Education may waive the penalty assessed in this subsection
5

6 if the penalty would result in a loss of more than forty percent
6

7 (40%) of the remaining State Aid to be allocated to the school
7

8 district between April 1 and the remainder of the school year and if
8

9 the Board determines the penalty will cause the school district not
9

10 to meet remaining financial obligations.
10

11  6. Any school district which receives gross production revenue

11

12 apportionment during the 2002-2003 school year or in any subsequent
12

13 school year that is greater than the gross production revenue
13

14 apportionment of the preceding school year shall be exempt from the
14

15 penalty assessed in this subsection, if the penalty would occur
15

16 solely as a result of the gross production revenue apportionment, as
16

17 determined by the State Board of Education.
17

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

18

19 consolidation or annexation pursuant to the provisions of the
19

20 Oklahoma School Consolidation and Annexation Act shall be exempt
20

21 from the penalty assessed in this subsection for the school year in
21

22 which the consolidation or annexation occurs and for the next three
22

23 (3) fiscal years.
23

24

24

    Req. No. 261                                Page 16
1   8. Any school district which receives proceeds from a sales tax

1

2 levied by a municipality pursuant to Section 22-159 of Title 11 of
2

3 the Oklahoma Statutes or proceeds from a sales tax levied by a
3

4 county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes
4

5 during the 2003-2004 school year or the 2004-2005 school year shall
5

6 be exempt from the penalties assessed in this subsection, if the
6

7 penalty would occur solely as a result of receiving funds from the
7

8 sales tax levy.
8

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

9

10 general fund of the district in excess of the limits established in
10

11 paragraph 1 of this subsection during the fiscal years beginning
11

12 July 1, 2020, July 1, 2021, July 1, 2022, and July 1, 2023, shall
12

13 not be assessed a general fund balance penalty as provided for in
13

14 this subsection.
14

15  10. 9. For purposes of calculating the general fund balance

15

16 penalty, the terms "carryover" and "general fund balance" shall not
16

17 include federal revenue.
17

18  H. F. In order to provide startup funds for the implementation

18

19 of early childhood programs, State Aid may be advanced to school
19

20 districts that initially start early childhood instruction at a
20

21 school site. School districts that desire such advanced funding
21

22 shall make application to the State Department of Education no later
22

23 than September 15 of each year and advanced funding shall be awarded
23

24 to the approved districts no later than October 30. The advanced
24

    Req. No. 261             Page 17
1 funding shall not exceed the per pupil amount of State Aid as
1

2 calculated in subsection D of this section per anticipated Head
2

3 Start eligible student. The total amount of advanced funding shall
3

4 be proportionately reduced from the monthly payments of the
4

5 district's State Aid payments during the last six (6) months of the
5

6 same fiscal year.
6

7   I. G. 1. Beginning July 1, 1996, the Oklahoma Tax Commission,

7

8 notwithstanding any provision of law to the contrary, shall report
8

9 monthly to the State Department of Education the monthly
9

10 apportionment of the following information:
10

11  a. the assessed valuation of property ad valorem tax

11

12                collections,

12

13  b. motor vehicle collections,

13

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

14

15  d. gross productions tax collected.

15

16  2. Beginning July 1, 1997, the State Auditor and Inspector's

16

17 Office, notwithstanding any provision of law to the contrary, shall
17

18 report monthly to the State Department of Education the monthly
18

19 apportionment of the proceeds of the county levy.
19

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

20

21 Office, notwithstanding any provision of law to the contrary, shall
21

22 report monthly to the State Department of Education the monthly
22

23 apportionment of state apportionment.
23

24

24

    Req. No. 261                                            Page 18
1   4. Beginning July 1, 1997, the county treasurers' offices,

1

2 notwithstanding any provision of law to the contrary, shall report
2

3 monthly to the State Department of Education the ad valorem tax
3

4 protest amounts for each county.
4

5   5. 3. The information reported by the Tax Commission, the State

5

6 Auditor and Inspector's Office of the State Auditor and Inspector,
6

7 the county treasurers' offices, and the Commissioners of the Land
7

8 Office, pursuant to this subsection shall be reported by a school
8

9 district on forms developed by the State Department of Education.
9

10  SECTION 3.    AMENDATORY        70 O.S. 2021, Section 18-201.1, as

10

11 amended by Section 2, Chapter 280, O.S.L. 2023 (70 O.S. Supp. 2024,
11

12 Section 18-201.1), is amended to read as follows:
12

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

13

14 and each school year thereafter, the weighted membership of a school
14

15 district for calculation of Foundation Aid purposes pursuant to
15

16 paragraph 1 of subsection D of Section 18-200.1 of this title shall
16

17 be the sum of the weighted pupil grade level calculation, the
17

18 weighted pupil category calculation, the weighted district
18

19 calculation, and the weighted teacher experience and degree
19

20 calculation. The weighted membership of a school district for
20

21 calculation of Salary Incentive Aid purposes pursuant to paragraph 3
21

22 of subsection D of Section 18-200.1 of this title shall be the sum
22

23 of the weighted pupil grade level calculation, the weighted pupil
23

24

24

    Req. No. 261                                               Page 19
1 category calculation, the weighted district calculation, and the
1

2 weighted teacher experience and degree calculation.
2

3   B. Beginning with the 2022-2023 school year, the weighted

3

4 calculations provided for in subsection A of this section shall be
4

5 based on the higher weighted average daily membership (ADM) of the
5

6 first nine (9) weeks of the current school year or the preceding
6

7 school year of a school district, unless otherwise specified. The
7

8 higher of the two (2) weighted average daily memberships shall be
8

9 used consistently in all of the calculations; however, the weighted
9

10 calculation for a statewide virtual charter school experiencing a
10

11 significant decline in membership shall be based on the first nine
11

12 (9) weeks of the current school year for the statewide virtual
12

13 charter school. For purposes of this subsection, "significant
13

14 decline in membership" means equal to or greater than a fifteen
14

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

16 preceding school year to the average daily membership of the first
16

17 nine (9) weeks of the current school year. The average daily
17

18 membership data used for all calculations in paragraphs 1, 2, 3, and
18

19 4 of this subsection shall be the same as used in the calculation of
19

20 the State Aid Formula. The weighted calculations provided for in
20

21 subsection A of this section shall be determined as follows:
21

22  1. The weighted pupil grade level calculation shall be

22

23 determined by taking the highest average daily membership and
23

24

24

    Req. No. 261                                       Page 20
1 assigning weights to the pupils according to grade attended as
1

2 follows:
2

3                 GRADE LEVEL                     WEIGHT

3

4           a. Half-day early childhood programs  .7

4

5           b. Full-day early childhood programs  1.3

5

6           c. Half-day kindergarten              1.3

6

7           d. Full-day kindergarten              1.5

7

8           e. First and second grade             1.351

8

9           f. Third grade                        1.051

9

10          g. Fourth through sixth grade         1.0

10

11          h. Seventh through twelfth grade      1.2

11

12          i. Out-of-home placement              1.50

12

13 Multiply the membership of each subparagraph of this paragraph by
13

14 the weight assigned to such subparagraph of this paragraph and add
14

15 the totals together to determine the weighted pupil grade level
15

16 calculation for a school district. Determination of the pupils
16

17 eligible for the early childhood program weight shall be pursuant to
17

18 the provisions of Section 1-114 of this title. The pupils eligible
18

19 for the out-of-home placement pupil weight shall be students who are
19

20 not residents of the school district in which they are receiving
20

21 education pursuant to the provisions of subsection D of Section 1-
21

22 113 of this title. Such weight may be claimed by the district
22

23 providing educational services to such student for the days that
23

24 student is enrolled in that district. If claimed, the out-of-home
24

    Req. No. 261                                  Page 21
1 placement weight shall be in lieu of the pupil grade level and any
1

2 pupil category weights for that student. Provided, if a student
2

3 resides in a juvenile detention center that is restricted to less
3

4 than twelve (12) beds, the out-of-home placement pupil weight for
4

5 such students shall be calculated as follows: for a center with six
5

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

7 center with ten (10) beds - 1.80.
7

8   2. The weighted pupil category calculation shall be determined

8

9 by assigning a weight to the pupil category as follows:
9

10                CATEGORY                                 WEIGHT

10

11  a. Visual Impairment                                   3.8

11

12  b. Specific Learning Disability                        .4

12

13  c. Deafness or Hearing Impairment                      2.9

13

14  d. Deaf-Blindness                                      3.8

14

15  e. Intellectual Disability                             1.3

15

16  f. Emotional Disturbance                               2.5

16

17  g. Gifted                                              .34

17

18  h. Multiple Disabilities                               2.4

18

19  i. Orthopedic Impairment                               1.2

19

20  j. Speech or Language Impairment                       .05

20

21  k. Bilingual                                           .25

21

22  l. Special Education Summer Program                    1.2

22

23  m. Economically Disadvantaged                          .3

23

24

24

    Req. No. 261                                           Page 22
1   n. Optional Extended School Year

1

2                 Program                    As determined by

2

3                                            the State Board

3

4                                            of Education

4

5   o. Autism                                                   2.4

5

6   p. Traumatic Brain Injury                                   2.4

6

7   q. Other Health Impairment                                  1.2

7

8 Except as otherwise provided, multiply the number of pupils approved
8

9 in the school year with the highest average daily membership in each
9

10 category by the weight assigned to such category and add the totals
10

11 together to determine the weighted pupil category calculation for a
11

12 school district. For the 1997-98 school year and subsequent school
12

13 years, the number to be multiplied by the weight assigned to the
13

14 gifted category in subparagraph g of this paragraph shall be the
14

15 lesser of (1) the sum of the number of students who scored in the
15

16 top three percent (3%) on any national standardized test of
16

17 intellectual ability plus the number of students identified as
17

18 gifted pursuant to subparagraphs a through d of paragraph 1 of
18

19 Section 1210.301 of this title, or (2) the sum of the number of
19

20 students who scored in the top three percent (3%) on any national
20

21 standardized test of intellectual ability plus eight percent (8%) of
21

22 the total average daily membership of the school district for the
22

23 first nine (9) weeks of the school year.
23

24

24

    Req. No. 261                             Page 23
1   3. The weighted district calculation shall be determined by

1

2 determining the calculations for each school district for both the
2

3 small school district formula and the district sparsity - isolation
3

4 formula, applying whichever is the greater of the calculations of
4

5 the two formulas and then applying the restrictions pursuant to
5

6 subparagraph c of this paragraph.
6

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

7

8                 daily membership divided by 750 times .2 times total

8

9                 average daily membership.

9

10  The small school district formula calculation shall apply

10

11  only to school districts whose highest average daily

11

12  membership is less than 750 pupils. School districts which

12

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

13

14  the Oklahoma School Voluntary Consolidation and Annexation

14

15  Act shall have the weighted district size calculation for

15

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

16

17  which such consolidation occurred calculated to be the sum

17

18  of the individual consolidated districts computed as if the

18

19  consolidation had not taken place. Thereafter, any such

19

20  district which is consolidated pursuant to the Oklahoma

20

21  School Voluntary Consolidation and Annexation Act shall not

21

22  qualify for the weighted district calculation unless the

22

23  district can satisfy the specifications herein. Subject to

23

24  the provisions of subparagraph c of this paragraph, the

24

    Req. No. 261                             Page 24
1   resulting number shall be counted as additional students

1

2   for the purpose of calculating State Aid.

2

3   b. District sparsity - isolation formula:

3

4   The district sparsity - isolation formula calculation shall

4

5   apply only to school districts:

5

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

6

7                 the average number of square miles for all school

7

8                 districts in this state;, and

8

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

9

10                of the state average areal density. Areal

10

11                density shall be determined by dividing the

11

12                school district's average daily membership by the

12

13                school district's total area in square miles.

13

14  The district sparsity - isolation formula calculation shall

14

15  be calculated as follows:

15

16                The school district student cost factor multiplied by

16

17                the school district area factor. The resulting

17

18                product shall be multiplied by the school district's

18

19                average daily membership. Subject to the provisions

19

20                of subparagraph c of this paragraph, the resulting

20

21                number shall be counted as additional students for the

21

22                purpose of calculating State Aid.

22

23  The school district student cost factor shall be calculated

23

24  as follows:

24

    Req. No. 261                                     Page 25
1                 The school district's average daily membership shall

1

2                 be categorized into the following grade level groups

2

3                 and applied to the appropriate formulas as computed

3

4                 below:

4

5   Grade Level Group

5

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

6

7                         Level ADM plus 23,

7

8                         add .85 to the quotient, then

8

9                         multiply the sum by the Grade

9

10                        Level ADM.

10

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

11

12                        Level ADM plus 133,

12

13                        add .85 to the quotient, then

13

14                        multiply the sum by the Grade

14

15                        Level ADM.

15

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

16

17                        Level ADM plus 128,

17

18                        add .78 to the quotient, then

18

19                        multiply the sum by the Grade

19

20                        Level ADM.

20

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

21

22                membership shall be divided by the school district's

22

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

23

24                be subtracted from the resulting quotient.

24

    Req. No. 261                                              Page 26
1   The school district area cost factor shall be calculated as

1

2   follows:

2

3                 Subtract the state average district area from the

3

4                 district area, then divide the remainder by the state

4

5                 average district area;

5

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

6

7   (1.0).

7

8   The State Board of Education shall define geographical barriers

8

9 whose location in a school district would inhibit the district from
9

10 consolidation or annexation. The Board shall make available an
10

11 application process, review applications, and for districts the
11

12 Board deems necessary allow additional square miles to be used for
12

13 the purposes of calculations used for the weighted district sparsity
13

14 - isolation formula. Provided, that the additional square miles
14

15 allowed for geographical barriers shall not exceed thirty percent
15

16 (30%) of the district's actual size.
16

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

17

18                receive as a result of the weighted district

18

19                calculation shall be restricted as follows:

19

20                If, after the weighted district calculation is

20

21                applied, the district's projected per pupil

21

22                revenue exceeds one hundred fifty percent (150%)

22

23                of the projected state average per pupil revenue,

23

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

24

    Req. No. 261                                                Page 27
1                 an amount that will restrict the district's

1

2                 projected per pupil revenue to one hundred fifty

2

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

3

4                 pupil revenue. Provided, in applying the

4

5                 restriction provided in this division, the

5

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

6

7                 amount greater than by the amount of State Aid

7

8                 which was generated by the weighted district

8

9                 calculation.

9

10                The July calculation of the projected per pupil

10

11                revenue shall be determined by dividing the district's

11

12                preceding year's average daily membership (ADM) as

12

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

13

14                the district and the teacher experience degree index

14

15                calculations for projected State Aid into the

15

16                district's projected total revenues including

16

17                projected funds for the State Aid Formula for the

17

18                preceding year, net assessed valuation the amount

18

19                received by the school district from ad valorem tax

19

20                collections for the preceding calendar year times

20

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

21

22                county four-mills revenues for the second preceding

22

23                year, other state appropriations for the preceding

23

24                year, and the collections for the preceding year of

24

    Req. No. 261                Page 28
1                 state apportionment, motor vehicle revenue, gross

1

2                 production tax, and R.E.A. tax.

2

3                 The December calculation of the projected per pupil

3

4                 revenue shall be determined by dividing the higher of

4

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

5

6                 school year or the preceding school year's average

6

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

7

8                 level, the pupil category, the district and the

8

9                 teacher experience degree index calculations for

9

10                projected State Aid into the district's projected

10

11                total revenues including funds for the December

11

12                calculation of the current year State Aid Formula, net

12

13                assessed valuation the amount received by the school

13

14                district from ad valorem tax collections for the

14

15                current calendar preceding fiscal year times thirty-

15

16                nine (39) mills, county revenues excluding the county

16

17                four-mills revenue for the preceding year, other state

17

18                appropriations for the preceding year, and the

18

19                collections for the preceding year of state

19

20                apportionment, motor vehicle revenue, gross production

20

21                tax, and R.E.A. tax.

21

22                The district's projected total revenues for each

22

23                calculation shall exclude the following collections

23

24                for the second preceding year: federal revenue,

24

    Req. No. 261                                               Page 29
1                 insurance loss payments, reimbursements, recovery of

1

2                 overpayments and refunds, unused reserves, prior

2

3                 expenditures recovered, prior year surpluses, and

3

4                 other local miscellaneous revenues.

4

5   4. The weighted teacher experience and degree calculation shall

5

6 be determined in accordance with the teacher experience and degree
6

7 index. The State Department of Education shall determine an index
7

8 for each state teacher by using data supplied in the school
8

9 district's teacher personnel reports of the preceding year and
9

10 utilizing the index as follows:
10

11                TEACHER EXPERIENCE - DEGREE INDEX

11

12 EXPERIENCE     BACHELOR'S        MASTER'S           DOCTOR'S
12

13                DEGREE            DEGREE             DEGREE

13

14 0 - 2          .7                .9                 1.1
14

15 3 - 5          .8                1.0                1.2
15

16 6 - 8          .9                1.1                1.3
16

17 9 - 11         1.0               1.2                1.4
17

18 12 - 15        1.1               1.3                1.5

18

19 Over 15        1.2               1.4                1.6

19

20  The school district teacher index for each school district shall

20

21 be determined by subtracting the weighted average state teacher from
21

22 the weighted average district teacher. Multiply the school district
22

23 teacher index if greater than zero by .7 and then multiply that
23

24 product by the sum of the district's weighted pupil grade level
24

    Req. No. 261                                       Page 30
1 calculation provided in paragraph 1 of this subsection and the
1

2 weighted pupil category calculation provided in subparagraph m of
2

3 paragraph 2 of this subsection to determine the weighted teacher
3

4 experience and degree calculation.
4

5   SECTION 4. This act shall become effective November 1, 2025.

5

6

6

7   60-1-261      EB  12/30/2024 5:20:06 PM

7

8

8

9

9

10

10

11

11

12

12

13

13

14

14

15

15

16

16

17

17

18

18

19

19

20

20

21

21

22

22

23

23

24

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    Req. No. 261                             Page 31
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