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1 STATE OF OKLAHOMA
1
2 1st Session of the 60th Legislature (2025)
2
3 SENATE BILL 706 By: Pugh
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to school funding; amending 70 O.S.
7 2021, Section 1-117, which relates to school district
8 general funds; updating statutory reference; removing
8 language exempting certain funds from calculation of
9 general fund carryover; amending 70 O.S. 2021,
9 Section 18-200.1, as amended by Section 1, Chapter
10 280, O.S.L. 2023 (70 O.S. Supp. 2024, Section 18-
10 200.1), which relates to State Aid; modifying certain
11 calculation of per pupil revenue; removing
11 limitations on school district general fund
12 carryover, method for calculating carryover amount,
12 and penalties for exceeding limitations; updating
13 statutory language; repealing 70 O.S. 2021, Section
13 18-200.1, as amended by Section 1, Chapter 488,
14 O.S.L. 2021, which relates to State Aid; providing an
14 effective date; and declaring an emergency.
15
15
16
16
17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
17
18 SECTION 1. AMENDATORY 70 O.S. 2021, Section 1-117, is
18
19 amended to read as follows:
19
20 Section 1-117. A. The general fund of any school district is
20
21 hereby defined as a current expense fund and shall consist of all
21
22 revenue or monies that can legally be expended within a certain
22
23 specified fiscal year, but shall not be considered as including any
23
24 money derived from a special building fund levy made in accordance
24
Req. No. 167 Page 1
1 with the provisions of Section 10 of Article X of the Oklahoma
1
2 Constitution, nor shall it include any monies derived from the sale
2
3 of bonds issued under the provisions of Section 26 of Article X of
3
4 the Oklahoma Constitution. All monies derived from the proceeds of
4
5 the school levies made pursuant to the provisions of Section 9 of
5
6 Article X of the Oklahoma Constitution shall be placed in the
6
7 general fund provided by this section. Expenditures from the
7
8 general fund shall be noncapital in nature. All monies derived from
8
9 state-dedicated revenue, state-appropriated revenue unless otherwise
9
10 provided for by law, and county sources shall be placed in the
10
11 general fund provided for by this section. Except as provided for
11
12 in subsections F, K, and L of this section, a district shall not be
12
13 authorized to make capital expenditures as defined by this section
13
14 from the general fund.
14
15 B. For purposes of this section, state-dedicated revenue shall
15
16 be any registration or license fees, taxes, or penalties collected
16
17 at the state level and distributed to common school districts.
17
18 County sources shall be all funds collected by the county and
18
19 distributed to common school districts but shall not include any
19
20 funds derived from the building fund levy made in accordance with
20
21 the provisions of Section 10 of Article X of the Oklahoma
21
22 Constitution or funds derived from the sinking fund levy made in
22
23 accordance with the provisions of Section 26 of Article X of the
23
24 Oklahoma Constitution.
24
Req. No. 167 Page 2
1 C. For the purposes of this section, a capital expenditure
1
2 shall be an expenditure which results in the acquisition of fixed
2
3 assets or additions to fixed assets. Capital expenditures shall
3
4 include, but shall not be limited to, purchases of land or existing
4
5 buildings, purchases of real property, improvements of grounds and
5
6 sites for construction purposes, all expenditures for construction
6
7 of buildings unless authorized by the State Board of Education or
7
8 the State Board of Career and Technology Education upon application
8
9 to the appropriate state board pursuant to subsection F of this
9
10 section, additions to buildings, remodeling of buildings if such
10
11 remodeling involves changes to roof structures or load-bearing
11
12 walls, professional services, salaries and expenses of architects
12
13 and engineers hired or assigned to capital projects except for such
13
14 services, salaries and expenses as are applicable in preparation for
14
15 a bond issue, expenditures for the initial installation and
15
16 extension of service systems and built-in heat or air equipment to
16
17 existing buildings, expenditures for the replacement of a building
17
18 which has been destroyed, installments and lease payments on
18
19 property, including interest, that have a terminal date and result
19
20 in the acquisition of property, and expenditures for preliminary
20
21 studies made prior to the time that authority to proceed with a
21
22 construction project is given if authority is received within the
22
23 same fiscal year that the expenditure was made.
23
24
24
Req. No. 167 Page 3
1 D. Noncapital expenditures shall include, but shall not be
1
2 limited to, expenditures for maintenance, repair, and replacement of
2
3 property and equipment, initial or additional purchases of furniture
3
4 and equipment, direct expenses for maintenance of plant, including
4
5 grounds, salaries for maintenance of plant, including salaries for
5
6 the upkeep of grounds, and repair and replacement of building
6
7 structures which do not add to existing facilities and which do not
7
8 involve changes in roof structures or load-bearing walls and which
8
9 are not classified as a capital expenditure by this section.
9
10 E. The State Board of Education shall adopt and amend
10
11 regulations regarding the classification, definition, and financial
11
12 administration of funds, accounts, and expenditures in accordance
12
13 with the requirements of this section.
13
14 F. A school district shall be authorized to make capital
14
15 expenditures from the general fund to defray the cost of rebuilding
15
16 a school building only if a school building or facility has been
16
17 destroyed by a fire or natural disaster, such as flood, tornado, or
17
18 other act of God, or by an act of a public enemy of the United
18
19 States or this state and monies received by the district through
19
20 insurance coverage, federal reimbursement, contributions, and
20
21 allocation from the State Board of Education from the State Public
21
22 Common School Building Equalization Fund are insufficient to rebuild
22
23 the facility. Capital expenditures from the general fund pursuant
23
24 to this subsection shall be limited to an amount necessary to defray
24
Req. No. 167 Page 4
1 the cost of rebuilding the facility which exceeds monies received by
1
2 the school district through insurance, federal reimbursement,
2
3 contributions, and state allocations.
3
4 G. Schools which receive gifts or, donations, or state-
4
5 appropriated monies for the purpose of capital expenditures or
5
6 projects shall place such monies in the building fund, as provided
6
7 by Section 1-118 of this title, and not in the general fund. School
7
8 districts which receive gifts, grants, or donations of monies for
8
9 noncapital expenditures may place the monies in the general fund,
9
10 and such monies shall not be required to be used during the year in
10
11 which the money was received but may accumulate from year to year
11
12 and shall not be considered a part of the general fund collections
12
13 when calculating the general fund carryover as provided for in
13
14 subsection G of Section 18-200.1 of this title.
14
15 H. School districts which receive monies from rental, sale, or
15
16 lease of buildings, impact aid monies, or grants, gifts, or
16
17 donations for capital purposes, whether from state, federal, or
17
18 other sources, may place such monies in the building fund authorized
18
19 by Section 1-118 of this title or the general fund authorized by
19
20 this section.
20
21 I. Any construction of a building included as a capital
21
22 expenditure from the general fund of a school district which is
22
23 authorized and has had a contractual agreement concerning such
23
24 construction executed prior to July 1, 1991, may be proceeded with
24
Req. No. 167 Page 5
1 and completed as authorized prior to July 1, 1991, as a capital
1
2 expenditure from such general fund.
2
3 J. School districts receiving revenues authorized by Section 9B
3
4 of Article X of the Oklahoma Constitution shall be authorized to
4
5 make capital expenditures from the general revenue fund no greater
5
6 than the amount levied by the incentive millage.
6
7 K. Upon the approval of the State Board of Education, a school
7
8 district shall be authorized to make capital expenditures as defined
8
9 in this section from its general fund if:
9
10 1. A bond issue has been rejected at an election by the school
10
11 district electors voting on that question within the current school
11
12 year, as certified by the secretary of the county election board; or
12
13 2. The school district has voted indebtedness at any time
13
14 within the preceding three (3) school years through the issuance of
14
15 bonds or through approval by voters of issuance of new bonds for
15
16 more than eighty-five percent (85%) of the maximum allowable
16
17 pursuant to the provisions of Section 26 of Article X of the
17
18 Oklahoma Constitution as shown on the school district budget filed
18
19 with the State Board of Equalization for the current school year and
19
20 certifications by the Attorney General prior to April 1 of the
20
21 current school year. The State Board of Education shall establish
21
22 the rules to administer the provisions of this subsection which
22
23 shall include, but not be limited to, specification of a maximum
23
24 amount of general fund monies to be used for capital expenditures,
24
Req. No. 167 Page 6
1 the purposes for which such funds may be expended, and the period of
1
2 time in which such funds shall be encumbered.
2
3 L. Other provisions of this section notwithstanding, a school
3
4 district shall be authorized to make capital expenditures from the
4
5 general fund if the total assessed property valuation per average
5
6 daily attendance is less than sixty percent (60%) of the state
6
7 average total assessed property valuation per average daily
7
8 attendance and if, for each year in which general fund revenue is
8
9 used for capital expenditures, the district has voted the five-mill
9
10 building fund levy authorized in Section 10 of Article X of the
10
11 Oklahoma Constitution and has voted indebtedness through the
11
12 issuance of new bonds for at least eighty-five percent (85%) within
12
13 the last three (3) years of the maximum allowable pursuant to the
13
14 provisions of Section 26 of Article X of the Oklahoma Constitution
14
15 as shown on the school district budget filed with the State Board of
15
16 Equalization for the current school year and certifications by the
16
17 Attorney General prior to April 1 of the school year. Provided, the
17
18 maximum amount of general fund revenue used for capital expenditures
18
19 pursuant to this subsection shall not exceed five percent (5%) of
19
20 the total yearly revenue to the general fund. Said Such fund may
20
21 not be used for capital expenditures for more than five (5)
21
22 consecutive years and may only be utilized for remodeling or
22
23 construction of classroom facilities and such ancillary facilities
23
24 to said such classrooms as may be necessary. Provided, further, the
24
Req. No. 167 Page 7
1 State Superintendent of Public Instruction shall certify in writing,
1
2 prior to the expenditure of the funds for which provision is made in
2
3 this subsection, that such expenditures are in compliance with the
3
4 provisions of this subsection.
4
5 SECTION 2. AMENDATORY 70 O.S. 2021, Section 18-200.1, as
5
6 amended by Section 1, Chapter 280, O.S.L. 2023 (70 O.S. Supp. 2024,
6
7 Section 18-200.1), is amended to read as follows:
7
8 Section 18-200.1. A. Beginning with the 2022-2023 school year,
8
9 and each school year thereafter, each school district shall have its
9
10 initial allocation of State Aid calculated based on the state
10
11 dedicated revenues actually collected during the preceding fiscal
11
12 year, the adjusted assessed valuation of the preceding year, and the
12
13 weighted average daily membership for the school district of the
13
14 preceding school year. Each school district shall submit the
14
15 following data based on the first nine (9) weeks, to be used in the
15
16 calculation of the average daily membership of the school district:
16
17 1. Student enrollment by grade level;
17
18 2. Pupil category counts; and
18
19 3. Transportation supplement data.
19
20 On or before December 30, the State Department of Education
20
21 shall determine each school district's current year allocation
21
22 pursuant to subsection D of this section. The State Department of
22
23 Education shall complete an audit, using procedures established by
23
24 the Department, of the student enrollment by grade level data, pupil
24
Req. No. 167 Page 8
1 category counts, and transportation supplement data to be used in
1
2 the State Aid Formula pursuant to subsection D of this section by
2
3 December 1 and by January 15 shall notify each school district of
3
4 the district's final State Aid allocation for the current school
4
5 year. The January payment of State Aid and each subsequent payment
5
6 for the remainder of the school year shall be based on the final
6
7 State Aid allocation as calculated in subsection D of this section.
7
8 Except for reductions made due to the assessment of penalties by the
8
9 State Department of Education according to law, the January payment
9
10 of State Aid and each subsequent payment for the remainder of the
10
11 school year shall not decrease by an amount more than the amount
11
12 that the current chargeable revenue increases for that district.
12
13 B. The State Department of Education shall retain not less than
13
14 one and one-half percent (1 1/2%) of the total funds appropriated
14
15 for financial support of schools, to be used to make midyear
15
16 adjustments in State Aid and which shall be reflected in the final
16
17 allocations. If the amount of appropriated funds, including the one
17
18 and one-half percent (1 1/2%) retained, remaining after January 1 of
18
19 each year is not sufficient to fully fund the final allocations, the
19
20 Department shall recalculate each school district's remaining
20
21 allocation pursuant to subsection D of this section using the
21
22 reduced amount of appropriated funds.
22
23 C. On and after July 1, 1997, the amount of State Aid each
23
24 district shall receive shall be the sum of the Foundation Aid, the
24
Req. No. 167 Page 9
1 Salary Incentive Aid, and the Transportation Supplement, as adjusted
1
2 pursuant to the provisions of subsection G of this section and
2
3 Section 18-112.2 of this title; provided, no district having per
3
4 pupil revenue in excess of three hundred percent (300%) of the
4
5 average per pupil revenue of all districts shall receive any State
5
6 Aid or Supplement in State Aid.
6
7 The July calculation of per pupil revenue shall be determined by
7
8 dividing the district's second preceding year's total weighted
8
9 average daily membership (ADM) into the district's second preceding
9
10 year's total revenues excluding federal revenue, insurance loss
10
11 payments, reimbursements, recovery of overpayments and refunds,
11
12 unused reserves, prior expenditures recovered, prior year surpluses,
12
13 and less the amount of any transfer fees paid in that year.
13
14 The December calculation of per pupil revenue shall be
14
15 determined by dividing the district's preceding year's total
15
16 weighted average daily membership (ADM) into the district's
16
17 preceding year's total revenues excluding federal revenue, insurance
17
18 loss payments, reimbursements, recovery of overpayments and refunds,
18
19 unused reserves, prior expenditures recovered, prior year surpluses,
19
20 and less the amount of any transfer fees paid in that year.
20
21 D. For the 1997-98 school year, and each school year
21
22 thereafter, Foundation Aid, the Transportation Supplement, and
22
23 Salary Incentive Aid shall be calculated as follows:
23
24
24
Req. No. 167 Page 10
1 1. Foundation Aid shall be determined by subtracting the amount
1
2 of the Foundation Program Income from the cost of the Foundation
2
3 Program and adding to this difference the Transportation Supplement.
3
4 a. The Foundation Program shall be a district's higher
4
5 weighted average daily membership based on the first
5
6 nine (9) weeks of the current school year or the
6
7 preceding school year of a school district, as
7
8 determined by the provisions of subsection A of
8
9 Section 18-201.1 of this title and paragraphs 1, 2, 3,
9
10 and 4 of subsection B of Section 18-201.1 of this
10
11 title, multiplied by the Base Foundation Support
11
12 Level. However, for the portion of weighted
12
13 membership derived from nonresident, transferred
13
14 pupils enrolled in online courses, the Foundation
14
15 Program shall be a district's weighted average daily
15
16 membership of the preceding school year or the first
16
17 nine (9) weeks of the current school year, whichever
17
18 is greater, as determined by the provisions of
18
19 subsection A of Section 18-201.1 of this title and
19
20 paragraphs 1, 2, 3, and 4 of subsection B of Section
20
21 18-201.1 of this title, multiplied by the Base
21
22 Foundation Support Level.
22
23 b. The Foundation Program Income shall be the sum of the
23
24 following:
24
Req. No. 167 Page 11
1 (1) The the adjusted assessed valuation of the
1
2 current school year of the school district, minus
2
3 the previous year protested ad valorem tax
3
4 revenues held as prescribed in Section 2884 of
4
5 Title 68 of the Oklahoma Statutes, multiplied by
5
6 the mills levied pursuant to subsection (c) of
6
7 Section 9 of Article X of the Oklahoma
7
8 Constitution, if applicable, as adjusted in
8
9 subsection (c) of Section 8A of Article X of the
9
10 Oklahoma Constitution. For purposes of this
10
11 subsection, the "adjusted assessed valuation of
11
12 the current school year" shall be the adjusted
12
13 assessed valuation on which tax revenues are
13
14 collected 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. 167 Page 12
1 The items listed in divisions (3), (4), (5), and (6)
1
2 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. 167 Page 13
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. 167 Page 14
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).
16
17 c. Multiply the number of mills levied for general fund
17
18 purposes above the fifteen (15) mills required to
18
19 support Foundation Aid pursuant to division (1) of
19
20 subparagraph b of paragraph 1 of this subsection, not
20
21 including the county four-mill levy, by the remainder
21
22 of subparagraph b of this paragraph. The product
22
23 shall be the Salary Incentive Aid of the district.
23
24
24
Req. No. 167 Page 15
1 E. By June 30, 1998, the State Department of Education shall
1
2 develop and the Department and all school districts shall have
2
3 implemented a student identification system which is consistent with
3
4 the provisions of subsections C D and D E of Section 3111 of Title
4
5 74 of the Oklahoma Statutes. The student identification system
5
6 shall be used specifically for the purpose of reporting enrollment
6
7 data by school sites and by school districts, the administration of
7
8 the Oklahoma School Testing Program Act, the collection of
8
9 appropriate and necessary data pursuant to the Oklahoma Educational
9
10 Indicators Program, determining student enrollment, establishing a
10
11 student mobility rate, allocation of the State Aid Formula, and
11
12 midyear adjustments in funding for student growth. This enrollment
12
13 data shall be submitted to the State Department of Education in
13
14 accordance with rules promulgated by the State Board of Education.
14
15 Funding for the development, implementation, personnel training, and
15
16 maintenance of the student identification system shall be set out in
16
17 a separate line item in the allocation section of the appropriation
17
18 bill for the State Board of Education for each year.
18
19 F. 1. In the event that ad valorem taxes of a school district
19
20 are determined to be uncollectible because of bankruptcy, clerical
20
21 error, or a successful tax protest, and the amount of such taxes
21
22 deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or
22
23 an amount greater than twenty-five percent (25%) of ad valorem taxes
23
24 per tax year, or the valuation of a district is lowered by order of
24
Req. No. 167 Page 16
1 the State Board of Equalization, the school district's State Aid,
1
2 for the school year that such ad valorem taxes are calculated in the
2
3 State Aid Formula, shall be determined by subtracting the net
3
4 assessed valuation of the property upon which taxes were deemed
4
5 uncollectible from the assessed valuation of the school district and
5
6 the state. Upon request of the local board of education, it shall
6
7 be the duty of the county assessor to certify to the Director of
7
8 Finance of the State Department of Education the net assessed
8
9 valuation of the property upon which taxes were determined
9
10 uncollectible.
10
11 2. In the event that the amount of funds a school district
11
12 receives for reimbursement from the Ad Valorem Reimbursement Fund is
12
13 less than the amount of funds claimed for reimbursement by the
13
14 school district due to insufficiency of funds as provided in Section
14
15 193 of Title 62 of the Oklahoma Statutes, then the school district's
15
16 assessed valuation for the school year that such ad valorem
16
17 reimbursement is calculated in the State Aid Formula shall be
17
18 adjusted accordingly.
18
19 G. 1. Notwithstanding the provisions of Section 18-112.2 of
19
20 this title, a school district shall have its State Aid reduced by an
20
21 amount equal to the amount of carryover in the general fund of the
21
22 district as of June 30 of the preceding fiscal year, that is in
22
23 excess of the following standards for two (2) consecutive years:
23
24 Total Amount of Amount of
24
Req. No. 167 Page 17
1 General Fund Collections, General Fund
1
2 Excluding Previous Year Balance
2
3 Cash Surplus as of June 30 Allowable
3
4 Less than $1,000,000 48%
4
5 $1,000,000 - $2,999,999 42%
5
6 $3,000,000 - $3,999,999 36%
6
7 $4,000,000 - $4,999,999 30%
7
8 $5,000,000 - $5,999,999 24%
8
9 $6,000,000 - $7,999,999 22%
9
10 $8,000,000 - $9,999,999 19%
10
11 $10,000,000 or more 17%
11
12 2. By February 1 the State Department of Education shall send
12
13 by certified mail, with return receipt requested, to each school
13
14 district superintendent, auditor, and regional accreditation officer
14
15 a notice of and calculation sheet reflecting the general fund
15
16 balance penalty to be assessed against that school district.
16
17 Calculation of the general fund balance penalty shall not include
17
18 federal revenue. Within thirty (30) days of receipt of this written
18
19 notice the school district shall submit to the Department a written
19
20 reply either accepting or protesting the penalty to be assessed
20
21 against the district. If protesting, the school district shall
21
22 submit with its reply the reasons for rejecting the calculations and
22
23 documentation supporting those reasons. The Department shall review
23
24 all school district penalty protest documentation and notify each
24
Req. No. 167 Page 18
1 district by March 15 of its finding and the final penalty to be
1
2 assessed to each district. General fund balance penalties shall be
2
3 assessed to all school districts by April 1.
3
4 3. Any school district which receives proceeds from a tax
4
5 settlement or a Federal Emergency Management Agency settlement
5
6 during the last two (2) months of the preceding fiscal year shall be
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7 exempt from the penalties assessed in this subsection, if the
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8 penalty would occur solely as a result of receiving funds from the
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9 tax settlement.
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10 4. Any school district which receives an increase in State Aid
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11 because of a change in Foundation and/or Salary Incentive Aid
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12 factors during the last two (2) months of the preceding fiscal year
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13 shall be exempt from the penalties assessed in this subsection, if
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14 the penalty would occur solely as a result of receiving funds from
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15 the increase in State Aid.
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16 5. If a school district does not receive Foundation and/or
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17 Salary Incentive Aid during the preceding fiscal year, the State
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18 Board of Education may waive the penalty assessed in this subsection
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19 if the penalty would result in a loss of more than forty percent
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20 (40%) of the remaining State Aid to be allocated to the school
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21 district between April 1 and the remainder of the school year and if
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22 the Board determines the penalty will cause the school district not
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23 to meet remaining financial obligations.
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1 6. Any school district which receives gross production revenue
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2 apportionment during the 2002-2003 school year or in any subsequent
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3 school year that is greater than the gross production revenue
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4 apportionment of the preceding school year shall be exempt from the
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5 penalty assessed in this subsection, if the penalty would occur
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6 solely as a result of the gross production revenue apportionment, as
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7 determined by the State Board of Education.
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8 7. Beginning July 1, 2003, school districts that participate in
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9 consolidation or annexation pursuant to the provisions of the
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10 Oklahoma School Consolidation and Annexation Act shall be exempt
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11 from the penalty assessed in this subsection for the school year in
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12 which the consolidation or annexation occurs and for the next three
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13 (3) fiscal years.
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14 8. Any school district which receives proceeds from a sales tax
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15 levied by a municipality pursuant to Section 22-159 of Title 11 of
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16 the Oklahoma Statutes or proceeds from a sales tax levied by a
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17 county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes
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18 during the 2003-2004 school year or the 2004-2005 school year shall
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19 be exempt from the penalties assessed in this subsection, if the
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20 penalty would occur solely as a result of receiving funds from the
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21 sales tax levy.
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22 9. Any school district which has an amount of carryover in the
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23 general fund of the district in excess of the limits established in
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24 paragraph 1 of this subsection during the fiscal years beginning
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1 July 1, 2020, July 1, 2021, July 1, 2022, and July 1, 2023, shall
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2 not be assessed a general fund balance penalty as provided for in
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3 this subsection.
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4 10. For purposes of calculating the general fund balance
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5 penalty, the terms "carryover" and "general fund balance" shall not
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6 include federal revenue.
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7 H. In order to provide startup funds for the implementation of
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8 early childhood programs, State Aid may be advanced to school
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9 districts that initially start early childhood instruction at a
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10 school site. School districts that desire such advanced funding
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11 shall make application to the State Department of Education no later
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12 than September 15 of each year and advanced funding shall be awarded
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13 to the approved districts no later than October 30. The advanced
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14 funding shall not exceed the per pupil amount of State Aid as
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15 calculated in subsection D of this section per anticipated Head
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16 Start eligible student. The total amount of advanced funding shall
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17 be proportionately reduced from the monthly payments of the
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18 district's State Aid payments during the last six (6) months of the
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19 same fiscal year.
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20 I. H. 1. Beginning July 1, 1996, the Oklahoma Tax Commission,
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21 notwithstanding any provision of law to the contrary, shall report
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22 monthly to the State Department of Education the monthly
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23 apportionment of the following information:
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24 a. the assessed valuation of property,
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Req. No. 167 Page 21
1 b. motor vehicle collections,
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2 c. R.E.A. tax collected, and
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3 d. gross productions tax collected.
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4 2. Beginning July 1, 1997, the State Auditor and Inspector's
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5 Office of the State Auditor and Inspector, notwithstanding any
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6 provision of law to the contrary, shall report monthly to the State
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7 Department of Education the monthly apportionment of the proceeds of
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8 the county levy.
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9 3. Beginning July 1, 1996, the Commissioners of the Land
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10 Office, notwithstanding any provision of law to the contrary, shall
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11 report monthly to the State Department of Education the monthly
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12 apportionment of state apportionment.
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13 4. Beginning July 1, 1997, the county treasurers' offices,
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14 notwithstanding any provision of law to the contrary, shall report
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15 monthly to the State Department of Education the ad valorem tax
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16 protest amounts for each county.
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17 5. The information reported by the Tax Commission, the State
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18 Auditor and Inspector's Office of the State Auditor and Inspector,
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19 the county treasurers' offices, and the Commissioners of the Land
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20 Office, pursuant to this subsection shall be reported by a school
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21 district on forms developed by the State Department of Education.
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22 SECTION 3. REPEALER 70 O.S. 2021, Section 18-200.1, as
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23 amended by Section 1, Chapter 488, O.S.L. 2021, is hereby repealed.
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24 SECTION 4. This act shall become effective July 1, 2025.
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1 SECTION 5. It being immediately necessary for the preservation
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2 of the public peace, health, or safety, an emergency is hereby
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3 declared to exist, by reason whereof this act shall take effect and
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4 be in full force from and after its passage and approval.
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Req. No. 167 Page 23Every fact on this page links to its source, starting with the official bill record.