Oklahoma school finance : technical assistance document : sources of revenue, state aid formula, penalties/adjustments, 01/2014

              OKLAHOMA SCHOOL FINANCE
Technical Assistance Document
SOURCES OF REVENUE STATE AID FORMULA PENALTIES/ADJUSTMENTS
FINANCIAL SERVICES DIVISION Revised January 2014It is the policy of the Oklahoma State Department of Education (OSDE) not to discriminate on the basis of race, color, religion, gender, national origin, age, or disability in its programs or employment practices as required by Title VI and VII of the Civil Rights Act of 1964, Title 1X of the Education Amendments of 1972, and Section 504 of the Rehabilitation Act of 1973.
Civil rights compliance inquires related to the OSDE may be directed to the Affirmative Action Officer, Room 111, 2500 North Lincoln Boulevard, Oklahoma City, Oklahoma 73105-4599, telephone number (405) 522-4930; or the United States Department of Education’s Assistant Secretary for Civil Rights.
Inquires or concerns regarding compliance with the Title IX by local school districts should be presented to the local school district Title IX coordinator. This publication is issued by the OSDE as authorized by 70 O.S. § 3-104. Copies have not been printed but are available through the agency website.PREFACE
Pursuant to the Oklahoma statutes and State Board of Education regulations, certain individuals are appointed or designated by the local board of education to be responsible for proper receipting and disbursement of public funds within the public school districts in Oklahoma. Periodically, statutory provisions or board regulations are amended to meet current financial or administrative situations.
This Technical Assistance Document for School Finance should be utilized to complement the statutes and regulations. It is presented in an easy-to-use format using a combination of actual statutory/regulatory provisions and an easy-to-understand narrative.
The document provides an overview of revenues for local school districts and provides an explanation of the various sources. Typically, the State Aid Formula is the prominent source of funding for the average school district. The formula with its weighted components is explained in detail.
Various penalties/adjustments that affect school district funding are outlined and defined to allow school district personnel to monitor the local district's compliance with statutory provisions or board regulations. Policies/procedures governing school finance are also presented in an understandable manner. Members of the local board of education, superintendents, business office personnel, budget makers, independent auditors, and others who have the responsibility for school district funds, preparation of school district budgets, and the administration of local school districts should become familiar with this Technical Assistance Document for School Finance - January 2014.
Janet C. Barresi
State Superintendent of Public Instruction
i
TABLE OF CONTENTS
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii-iii
SECTION I—Sources of Revenue for Oklahoma School Districts
Revenues-State Totals, Chart No. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Local Sources of Revenue for School Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Ad Valorem Tax Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Separate Tax Levies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
General Fund Levies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Building Fund Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
County 4-mill Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Sinking Fund Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
County Apportionment and Other Local Miscellaneous Revenues . . . . . . . . . . . . . . . . . . . . . . . 4
Ad Valorem Property Classifications and Tax Levies, Chart No. 2 . . . . . . . . . . . . . . . . . . . . . . . . . 5
Ad Valorem Levies by Jurisdiction, Chart No. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
State Sources of Revenues for School Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
State-Dedicated Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Gross Production Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Motor Vehicle Collections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Rural Electric Association Cooperative Tax (R.E.A. Tax) . . . . . . . . . . . . . . . . . . . . . . . . . . 8
School Land Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
State-Appropriated Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Principal Sources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-11
“State Aid” In the Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Tentative Payment Schedule (State Aid) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Common Education Appropriations, Chart No. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SECTION II—State Aid Formula for Oklahoma School Districts.
State Aid Formula Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Changes in Formula and Pupil Weighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
State Aid Formula Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Changes in State Aid Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Foundation and Salary Incentive Aid Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Formula Weighted Average Daily Membership (ADM) by Year. . . . . . . . . . . . . . . . . . . . . . . . 17
Foundation Aid, Salary Incentive Aid, and Transportation Calculation . . . . . . . . . . . . . . . . . . . 18-21
Total Weighted Average Daily Membership (ADM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Raw “ADM” Weighted Grade Level Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Weights for Weighted Pupil Categories Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Weighted District Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Weighted Teacher Index Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Form for Calculating the State Aid Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
ii
SECTION III—Penalties/Adjustments for Oklahoma School Districts
Schedule of Penalties/Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Per Pupil Revenue in Excess of 150 Percent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-30
Per Pupil Revenue in Excess of 300 Percent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Maintenance of Effort Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Minimum Teacher Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Noncertified Teachers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Oklahoma Cost Accounting System Penalty for Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Penalty for Insufficient Days or Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Delinquent Final Certified and Support Personnel Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Noncompliance Penalty on Late Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Class Size Instructions and Penalty Examples
Class Size Audit Instructions/Penalties Grades K through 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37-40
Instructions/Penalties (Secondary) Grades 7 through 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41-43
General Fund Carryover Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44-47
Administrative Cost Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Penalty for Decreasing Salary and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Underpaid Teacher Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
State Aid Funds May be Withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Noncompliance Penalty on Late Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
State Aid Withheld for Failure to Comply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Gifted and Talented Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 State Student Record System Noncompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Special Student Adjustments and Information
Procedures and Weights for Out-of-Home Placement Students. . . . . . . . . . . . . . . . . . . . . . . . . . 52
SECTION I V —School Consolidation and Annexation in Oklahoma
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Voluntary Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Mandatory Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Voluntary Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Teacher Status Because of Annexation or Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Dispensing of School . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Petitions for Annexation or Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Requirements of Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Legal Election Days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Cost of Elections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Accountability at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 iii
SECTION I
SOURCES OF REVENUE
for
OKLAHOMA SCHOOL DISTRICTSPERCENT (%)
LOCAL AND COUNTY SOURCES AMOUNT OF TOTAL
35-mill Ad Valorem Tax……………………………….… $ 1,002,283,704
County 4-mill……………………………………………… $ 112,715,050
County Apportionment…………………………………… $ 23,312,203
Resale Property Fund…………………………………….. $ 2,145,900
Miscellaneous……………………………………………. $ 81,371,681
Total Local and County………………………………… $ 1,221,828,538 27.61%
STATE SOURCES (Dedicated and Appropriated)
Gross Production Tax………………………………………$ 60,498,956
Motor Vehicle Collections………………………………. $ 236,921,141
Rural Electrification Assoc. Cooperative Tax (R.E.A.)…. $ 35,044,429
State School Land Earnings……………………………… $ 93,479,897
State Aid Allocations…………………………………….. $ 1,827,647,640.60
Driver Education……………………………………………$ 900,000
Vehicle Tax Stamp…………………………………………$ 1,141,167
Farm Implement Tax Stamp……………………………… $ 215,874
Other Dedicated Revenue………………………………… $ 324,017
Flexible Benefit Allowance…………………………………$ 339,243,280
Alternative and At-Risk Education…………………………$ 12,184,285
Instructional, Cooperative and Tech. Educ. (I.C.T.E.)…… $ 9,052
Arts-in-Education………………………………………… $ 2,176
State-Categorical………………………………………….. $ 52,783,545
Special Programs…………………………………………. $ 925,032
Other State Sources……………………………………….. $ 14,538,518
Child Nutrition Programs………………………………… $ 763,704
Career-Technology Programs………………………………$ 19,057,978
Total State…………………………………………………$ 2,695,680,692 60.91%
FEDERAL SOURCES
Capital Outlay………………………………………………$ 71,942,547
Disadvantaged Students……………………………………$ 215,006,143
Individuals with Disabilities……………………………… $ 129,089,273
Minority…………………………………………………... $ 15,975,336
Operations………………………………………………… $ 8,074,201
Other Federal Sources………………………………………$ 24,413,623
Child Nutrition Programs………………………………… $ 37,239,899
Federal Vocational Education………………………………$ 6,318,254
Total Federal………………………………………………$ 508,059,276 11.48%
GENERAL FUND TOTAL…………………………………………$ 4,425,568,506 100.00%
Building Fund Total…………………………….…………$ 165,377,776
Sinking Fund Total……………………………………… $ 524,859,526
GRAND TOTAL……………………………..………………………$ 5,115,805,808
This chart reflects state totals for collections from the various sources for General Fund revenue and the amount
collected by source among the common schools of Oklahoma for the 2012-13 fiscal year as reported by the
Oklahoma Cost Accounting System. State totals for Building Fund and Sinking Fund collections are also included.
CHART #1
Revenues--State Totals
1
LOCAL SOURCES OF REVENUE FOR SCHOOL DISTRICTS
The principal sources of local revenue are as follows: General Fund Levies
Building Fund Levy County 4-mill Levy Sinking Fund Levy County Apportionment
Other Local Miscellaneous Revenues
The Ad Valorem Tax Levy
The property tax (ad valorem tax) is the traditional source of local revenue for schools throughout the United States. In Oklahoma, this tax is levied in mills (1 mill is 1/1000 of a dollar or .001) against real, personal and public service property. Ten mills equal one penny. Stated another way, a mill is a tax of one dollar per thousand dollars of property valuation subject to taxation.
Real property is the land itself and all rights and privileges that add value to the property, such as irrigation, mines, minerals, quarries, and trees on or under the same, and all buildings, structures, and improvements of any kind. Excluded are machinery and fixtures, which are defined as personal property. Property owners receive a tax exemption of $1,000 if the property is claimed as a homestead. Personal property includes all goods, chattels and effects; all improvements made by others upon lands; all stock of nurserymen; all horses, cattle, mules, sheep, swine, goats, and other livestock; all household furniture, and personal libraries; wagons, vehicles, or carriages; machinery and materials used by manufacturers and all manufactured articles; all goods and capital used in merchandising; all abstractors’ books and records; all agriculture implements and machinery; all tanks and containers used to hold or store oil or any of its by-products; all gas, oil, water or other pipelines; telephone or telegraph lines, railroad tracks, oil and petroleum products; and all other property having an actual, constructive or taxable situs in this state and not included within the definition of real property. Public service property is that property used to provide services, usually utility services, for the public in general. This includes oil and gas pipelines, generating plants for electricity, railroads and other such utilities.
Taxes are not levied on the full value of properties. The Constitution limits taxation to 35 percent of the fair cash value of the property. Fair cash value is the value and price at which a willing buyer would purchase property, and a willing seller would sell property, if both parties are knowledgeable about the property and its uses, and if neither party is under any undue pressure to buy or sell. Some percentage of full value is established which is called an assessment ratio. This percentage, when applied to the fair cash value, determines the assessed value at which property will be taxed. Real and personal property are assessed by a county official, the county assessor. Public service property is assessed by the state. The State Board of Equalization, with recommendations from the Oklahoma Tax Commission, Ad Valorem Division, orders equalization of locally assessed property when counties are not in compliance and ultimately approves all property value assessment, including public service property. The ratio used for public service property is 22.85 percent (22.85%), which is higher than the ratio that is used at the local level. Chart No. 2 (page 8) summarizes the various property classifications and school tax levies. 2
Separate Tax Levies
There are seven different ad valorem tax levies that are used in Oklahoma for the support of the public schools at the local level. The state Constitution provides for each levy, which in one way or another is constrained by the constitutional provisions. Three of the seven require direct authorization by a majority of electors in the school district at the annual school election. Chart No. 3 (page 9) illustrates the constitutional levies for taxing jurisdictions in Oklahoma.
Each levy is listed below with an explanation of the specific provisions of each:
General Fund Levies
MILLAGE LEVY AUTHORITY
Certification of Need Resolution by Board of Education 15 mills
Each board of education in Oklahoma is authorized to levy up to 15 mills (plus increased millage because of personal property tax adjustment) on the property in the district based on certification of need for the financial support of the schools. School districts should be aware that when this millage is increased, the higher millage rate will be used when calculating the amount of adjusted valuation that will be used as a chargeable in the Foundation Aid portion of the State Aid formula (70 O.S. § 18-200.1). The board is required to file a “Preliminary Estimate of Needs” that is published in a local newspaper no later than December 31 specifying a proposed budget for the coming year that demonstrates the need for the levy. The election for such levies and board member elections occur in school districts annually.
County Levy County Excise Board
5 mills (minimum)
There is a 15-mill county levy over which the county excise board has jurisdiction. The law requires that at least 5 mills of that 15 must be allocated to the schools. For all practical purposes, the other 10 mills are allotted to the support of county government, but technically, the law would allow the excise board to allocate a portion of the 10 mills to municipalities and/or school districts.
Emergency Levy Majority of voters in
5 mills (maximum) annual school election
This levy was an amendment to the Constitution. Originally, criteria constituting an emergency had to be met in order for a school district to ask for approval. Those emergency criteria were abandoned many years ago, and it is now a routine supporting levy for every school district in the state.
Local Support Levy Majority of voters in
10 mills (maximum) annual school election
This levy was another amendment to the Constitution of the state. As in the case of the emergency levy, it has become a routine tax issue that every district in the state levies every year.
These four levies add up to a total of 35 mills (plus increased millage because of personal property tax adjustment) for the General Fund. The system has evolved to the point that these millage levies are not really optional. They are also interrelated with state aid to the point that no district, even one with considerable property wealth, can afford not to levy the maximum. In effect, there is no constitutionally permissible way for districts, even by approval of voters, to raise additional ad valorem levies to support the general operation of the schools. 3
Building Fund Levy
Building Fund Levy Majority of voters in
5 mills (maximum) annual school election
The Constitution provides that each school district may levy up to 5 mills for the purpose of erecting, remodeling, and repairing school buildings, or for purchasing furniture. In the early history of the state, it was envisioned that the 5 mills might be sufficient to provide the money necessary for building facilities for the many school districts. However, it became unrealistic for most districts a long time ago.
Through various legal interpretations, the use of money in the Building Fund levy has been liberalized so that it can be used not only for maintenance, but also for the purchase of equipment. In some cases, it is used even for operational expenses. The Attorney General has ruled that payment of property and casualty insurance can be made from this fund.
County 4-mill Levy
4-mill Countywide Levy Constitutional
During the days of the so-called “separate” schools in Oklahoma, this levy was provided as a means of raising money to support those schools. When desegregation was implemented in Oklahoma in the mid-fifties, this 4-mill levy became a countywide source to be divided among the school districts within the county. This is the only school support levy that is countywide and is divided among the school districts in each county on the basis of each district’s average daily attendance. In some counties, this contributes to a much more equal distribution of at least these 4 mills of the money derived from a single piece of valuable industrial or public service property.
Sinking Fund Levy
Sinking Fund Levy Through bond issue election with 60 percent (60%) majority vote and judgments against
the district
Each school district in Oklahoma is authorized to borrow money up to an amount that does not exceed 10 percent of its total assessed valuation. Money is borrowed through the issuance of bonds after the bond issue has been approved by the voters. The issue does not carry unless 60 percent of those voting in the election vote “yes.”
A Sinking Fund levy is determined following the approval of the bond issue to yield enough money to pay the principal and the interest on the bond issue. In other words, the number of mills levied will vary from district to district in terms of the size of the bond issue, the term of the bonds (how long until they are paid off), and the interest rate. Many districts have no Sinking Fund levy, and others have levies exceeding 30 mills. Additionally, Sinking Fund levies may be ordered by the court to fund debts of the school district when the district has unlawfully expended beyond its appropriation.
County Apportionment and Other Local Miscellaneous Revenues
There is a county apportionment that comes from revenue from a mortgage tax in each county. It is distributed among the school districts on an average daily attendance basis. Other miscellaneous revenues, such as interest income, gifts, student fees, the sale of property, transfer fees, tuition, rental, and refunds are collected locally. 4
CHART NO. 2
Summary of
Ad Valorem Property Classifications and Tax Levies for School Districts
Ad Valorem Property includes these classifications:
I. Real Property
A. Residential
B. Commercial/Industrial
C. Agricultural
II.Personal Property**
III.Public Service Property
Ad Valorem Tax Levies for School Purposes
General Fund:
15-mill Levy
15 mills**
Certification of Need
County 4-mill Levy
4 mills
Constitutional
County 15-mill Levy
5 mills
Constitutional
Emergency Levy
5 mills
MajorityVote
Local Support Levy
10 mills
MajorityVote
General Fund = 39 mills
Building Fund: 5 mills Majority Vote
Sinking Fund: As voted for Bond Issues and levied for Judgments
** Counties who have done away with their individual personal property tax have been allowed to raise their 15-mill Levy based on a formula in Article X, Section 8A, Paragraph (b) of the Constitution. 5
CHART NO. 3
Ad Valorem Levies by Jurisdiction
Constitutional Current Mill Levy
Authority Levy by Jurisdictional Category Limitation
School Districts
Art. X, Sec. 9(a) 15-mill County Levy ..................................................................................... 5
Art. X, Sec. 9(b) County 4-mill Levy ....................................................................................... 4
Art. X, Sec. 9(c) School District Levy (Board Certified) .....................................................15+ Art. X, Sec. 9(d) Emergency Levy ........................................................................................... 5
Art. X, Sec. 9(d-1) Local Support Levy..................................................................................... 10
Art. X, Sec. 10 Building Fund Levy ...................................................................................... 5
Art. X, Sec. 26, 28 Sinking Fund Levy .......................................................................10% NAV*
County Government
Art. X, Sec. 9(a) 15-mill County Levy ...................................................................................10
Art. X, Sec. 9A Health Department Levy ............................................................................ 2.5
Art. X, Sec. 10 Building Fund Levy ...................................................................................... 5
Art. X, Sec. 35 Industry Development Incentive Bond Levy ................................................. 5
Art. X, Sec. 26, 28 Sinking Fund Levy .......................................................................10% NAV*
Municipal Government
Art. X, Sec. 10 Building Fund Levy ...................................................................................... 5
Art. X, Sec. 35 Industry Development Incentive Bond Levy ................................................. 5
Art. X, Sec. 26, 27, 28 Sinking Fund Levy ....................................................................... 10% NAV*
Special Districts
Art. X, Sec. 9B(A) Career Tech/Community College School Levy............................................. 5
Art. X, Sec. 9B(B) Career Tech Local Incentive Levy ................................................................ 5
Art. X, Sec. 10 Career Tech Building Fund Levy .................................................................. 5
Art. X, Sec. 9B(C) Career Tech Sinking Fund Levy .................................................... 5% NAV*
Art. X, Sec. 10A County and City-County Library Fund Levy ............................................. 1-4
Art. X, Sec. 9C(a) Emergency Medical Service District Levy .................................................... 3
Art. X, Sec. 9C(d) Emergency Medical Service District Sinking Fund Levy ............................. 3
Art. X, Sec. 9D(A) Solid Waste Management District Levy ........................................................ 3
Art. X, Sec. 9D(G) Solid Waste Management District Sinking Fund Levy ................................. 3
Art. X, Sec. 71Fire Protection District Levy ......................................................................... 7
Art. X, Sec. 7, 26 Fire Protection District Sinking Fund Levy ................................. 10% NAV* Art. X, Sec. 72Sewer Improvement District Levy ..............................................................10
Art. X, Sec. 7, 26 Sewer Improvement District Sinking Fund Levy
(on real property only)3 ................................................................10% NAV*
Art. X, Sec. 74 Rural Road Improvement District Levy ........................................................ 3
Art. X, Sec. 7 Rural Road Improvement District Sinking Fund Levy.................................. 5
1 See also 19 O.S., Sec. 901.1 et seq.
2 See also 19 O.S., Sec. 871 et seq.
3 Tax base limitation also applies to jurisdictional general fund.
4 See also 19 O.S., Sec. 902.1 et seq
*NAV: Net assessed valuation
6
STATE SOURCES OF REVENUE FOR SCHOOL DISTRICTS
Most school districts in Oklahoma receive more money from the state for the support of their schools than from
any other source. However, the money comes in a number of different ways. The two major categories of state money are the monies that come from dedicated revenues and those that come
from appropriations by the Legislature. In the case of the former, from time to time during the years since the state
came into existence, certain portions of certain taxes or other revenue sources have been earmarked for use by the
schools. These provisions have been incorporated in the statutes, and there is usually little or no discussion about
them each year as the Legislature meets. However, use of these earmarked taxes occurs when the state aid formula
is calculated for state appropriation purposes. The second category, the money that is received by the schools from appropriations by the Legislature, is the
largest single revenue source for almost all public schools in Oklahoma. Appropriated revenue is debated each time
the Legislature meets. The debate centers not only on how much money will be provided, but on how the money
will be distributed among school districts. The common school appropriation is by far the largest single
appropriation that the Legislature makes each year. Since it affects every school district in the state, the concerns
about how many dollars are spent and where the dollars go are universal and intense. Either directly or indirectly,
almost every person in Oklahoma is affected by the decisions the Legislature makes about how much money is to be
appropriated for the schools and how that money is to be distributed.
STATE-DEDICATED REVENUES
The principal sources of state-dedicated revenues are established in law and are very rarely changed by the
legislature. These revenue sources are:
Gross Production Tax
Motor Vehicle Collections Rural Electrification Association (R.E.A.) Tax
State School Land Earnings
Gross Production Tax
Since Oklahoma is an energy state, a major source of tax revenue has been the tax on oil, gas and other minerals
as they are produced. This tax is called gross production tax. A portion of the tax generated from production in
each county is allocated back to the county for distribution on an average daily attendance basis among the county’s
independent school districts (68 O.S. § 1004). Since some counties have large amounts of production, and others
very little, there is substantial variation in the revenues received by school districts from the portion of the gross
production tax that is dedicated to the public schools.
Motor Vehicle Collections
Revenues generated by all motor vehicle taxes and fees now go into one fund at the state level and are
apportioned to the recipients, including schools, from that fund. The money for schools is remitted to the respective
county and independent treasurers, but the amount of money received depends on the allocations from the state to
the respective school districts--not on the sales of tags in the respective counties. Effective October 1, 2000, and
approved by a popular vote of the people, registration fees for car tags were significantly reduced and a new fee
schedule went into effect. The most expensive car tag for Oklahoma residents is $91, excluding related fees;
however, those purchasing used vehicles now pay a higher excise tax fee than under the former schedule. Under the
updated fee schedule, funds collected for schools should remain constant with no adverse effect to school funding. 7
The percentage that comes to the schools is 36.2 percent (36.2%) of this total state fund (47 O.S. § 1104 B[1][c]). There is also a provision in the law, which states that all school districts receive the same amount of money per month as they did in the same month of the previous year. In effect, it is a guarantee provision of these collections. Money collected above what is necessary to meet the monthly guarantee provision will be distributed statewide on the basis of average daily attendance. If the monies fall below the monthly guarantee, all school districts are reduced proportionately.
A separate allocation of money to schools for boat and motor fees and for manufactured (mobile) homes no longer exists. They are combined with the other vehicle fees and registrations, which also include those for motorcycles, recreational vehicles, ambulances, and travel trailers.
A separate statute for manufactured homes requires that such homes be initially registered for one year with subsequent placement on the ad valorem tax rolls as either real or personal property.
Rural Electrification Association Cooperative Tax
(R.E.A. Tax)
A tax is levied on rural electric cooperatives in accordance to property valuation and distributed in proportion to the number of miles of transmission lines within each district served. Such money is considered in lieu of property tax and goes to the schools in the respective counties.
School Land Earnings
When Oklahoma came into the union, a substantial amount of federal lands were granted to Oklahoma from the federal government. The federal requirement was that the revenue from those lands must be used for the benefit of the public schools. The land is administered by the Commissioners of the Land Office and the revenue derived from it, whether it be interest or rent, for example, is distributed to school districts across the state on the basis of average daily attendance. The money derived from the selling of this property must go into what is called the “Permanent School Fund.” Only interest from the investment of that money can be distributed to the schools. The principal must be permanently maintained. 8
STATE-APPROPRIATED REVENUES
In the 2013 legislative session, the Legislature appropriated more than $2.4 billion for elementary
and secondary schools ofOklahoma.
A major function of the Legislature is to allocate the monies available to the state from taxes; the tax proceeds
go into the state’s general revenue fund. Higher education, career and technology education, highways, corrections,
and other state agencies compete with the schools to receive what they consider their share of the available money. The principal sources of appropriated revenues are as follows: ACE Remediation Oklahoma Parents as Teachers
ACE Technology Advanced Placement Incentives
Alternative and High Challenge Education
Driver Education Flexible Benefit Allowance – Certified/Support
Foundation and Salary Incentive Aid Purchase of Textbooks School Consolidation Assistance Fund
School Lunch – State Matching
National Board Certified Bonus
ACE Remediation
During 2013-14, $8,000,000 will be allocated to school districts for costs associated with providing remediation
to students on a per-student basis (see 70 O.S. § 1210.522). The per-student rate shall be based on the most current
test results with a maximum of $240 for each student scoring “Unsatisfactory” on a qualifying test and a maximum
of $180 for each student scoring “Limited Knowledge” on a qualifying test (see 70 O.S. § 1210.526). Funds for
remediation shall be used to provide intervention and/or remediation to any student in grade 6 through grade 12 who
has been determined to be in need of remediation or intervention, including but not limited to those students who
have scored at the unsatisfactory or limited knowledge level. Allowable expenditures include salaries and stipends
for highly qualified teachers and tutors under the supervision of highly qualified teachers; instructional materials
such as textbooks, workbooks, teacher-made materials, computer-assisted instructional software, manipulatives, and
classroom instructional tools necessary to provide remediation; assessments designed to monitor the progress of
students in remediation programs; transportation to and from tutoring sessions held outside of the school day; and
training in best practices for providing remediation. Funds for remediation may not be used for salaries, materials, or administrative services not directly related to remediation or intervention or for students who do not qualify
for remediation as described in this section” (OAC 210:10-13-2). ACE Technology
When the School Consolidation and Assistance Fund equals $5 Million dollars, monies above that limit are
allocated to school districts based upon the audited end-of-year Average Daily Membership (ADM) in Grades 8
through 12 of the preceding fiscal year. Schools with Grades 8-12 are to use the ACE Technology funds to purchase technology equipment (primarily computers, computer wiring) in order to conduct on-line student testing required by the Achieving Classroom Excellence Act of 2005.
9
Advanced Placement Incentives During 2013-14, $3,500,000 will be available for the purpose of expanding the Advanced Placement program in Oklahoma. Funds will be used for professional development, course materials, and school incentives.
Alternative and High Challenge Education Revenue is distributed through the Oklahoma State Board of Education (OSBE) for students who are at-risk of not completing a high school education. For 2013-14, the OSBE approved $15,027,366 for Alternative Education Academy programs. Programs include stand-alone schools, multidistrict cooperatives, evening programs, partnerships with career technology centers and community colleges, and alternative classrooms.
Driver Education
Revenue is appropriated by the Legislature and allocated to school districts as a reimbursement for providing a driver education program during the preceding school year. Courses offered during (1) the regular school day, (2) the summer, or (3) on Saturday will be reimbursed at $82.50 per pupil. Courses offered before or after the regular school day will be reimbursed at $95 per pupil.
Flexible Benefit Allowance (Certified and Support Personnel) The purpose of the Flexible Benefit Allowance (FBA) is to furnish school district employees with choices about insurance benefits or cash compensation. Flexible benefit allowance means amounts credited by the school district for each school district employee for the purpose of benefits under the cafeteria plan. For the 2013-14 school year, the FBA for certified personnel taking insurance with the district will be equal to 100 percent (100%) of the HealthChoice (Hi) option; but, for certified employees not taking insurance, the “In Lieu of FBA” amount is $69.71 a month. The FBA for full-time support employees taking insurance with the district will be equal to 100 percent (100%) of the HealthChoice (Hi) option; but, for full-time support employees not taking insurance, the “In Lieu of FBA” amount is $189.69 a month. The 2013-14 appropriation for certified staff exceeded $244 million; the appropriation for support staff exceeded $123 million.
Foundation and Salary Incentive Aid
Revenue is distributed through the state aid formula as administered by the OSBE. This source of appropriated funding is the primary funding provided to Oklahoma school districts.
Oklahoma Parents as Teachers
For 2013-14, $1,000,000 was approved by the OSBE for the Parent Training Program (Oklahoma Parents as Teachers [OPAT] – 70 O.S. § 10-105.3). The OPAT program is designed to foster an early partnership between home and school to support parents in preparation for their children’s formal years of schooling. The program serves families with children from birth to aged three and is designed to maximize a child’s overall development.
Reading Sufficiency Act
The OSBE also approved funds under the Reading Sufficiency Act (RSA). Under this act, students enrolled in the first, second, and third grades shall be assessed at the beginning of the school year and throughout the school year for the acquisition of reading skills. Students not reading at the appropriate grade level will be provided with a program of reading instruction and will be provided reading remediation.
10
To determine a per-student allocation amount, the total amount of funds available for allocation each year shall be divided by the total number of students in the state identified as in need of remediation or intervention in reading. Each school district shall be allocated an amount equal to the per-student allocation amount multiplied by the number of identified students enrolled in the school district. Beginning with the 2013-14 school year, the RSA funds will be allocated directly to the districts. The SDE will no longer hold back a percentage to allocate later in the year for the Summer Academy Reading Programs. This allows school districts to budget RSA funds at the local level.
Purchase of Textbooks
Purchase of textbooks is an operating expense, and the amount of funds available to a particular school district through the appropriations for textbook support is unrelated to its revenue-raising capacity, types of pupils, or other characteristics. Textbook monies are sent directly to schools based upon a district’s Average Daily Attendance multiplied by $55 (70 O.S. § 16-114a). If sufficient funding is not available, the $55 amount will be prorated. One percent (1%) of the Textbook appropriation will be retained by the Oklahoma State Department of Education (SDE) to increase funding for growth districts in January. If the increased ADA times $55 is greater than the retained amount, the additional allocation for the growth districts will be prorated. School districts are faced with ever- increasing costs of textbooks annually. The funds allocated for textbooks in Section 16-114a of this title may be used by a school district for supplementary textbooks and other instructional materials other than those selected and listed by the State Textbook Committee.
School Consolidation Assistance Fund For 2013-14, from the Oklahoma Education Lottery Trust Fund, $3,416,940 or so much thereof as necessary for transfer to the School Consolidation Assistance Fund. School districts that consolidate or annex are provided additional funds to ease the transition and costs incurred by the act. Once a capped amount of $5 Million is reached in this fund, excess monies are allocated for ACE Technology.
School Lunch—State Matching
Revenue is appropriated by the Legislature for the purpose of matching a portion of the federal funds expended by school districts for student lunches. 11
S M T W T F S S M T W T F S
1 2 3 4
1 2 3 4 5 6 5 6 7 8 9 10 11
7 8 9 10 11 12 13 12 13 14 15 16 17 18
14 15 16 17 18 19 20 19 20 21 22 23 24 25
21 22 23 24 25 26 27 26 27 28 29 30 31
28 29 30 31
*(No Scheduled State Aid Payments in July)
S M T W T F S S M T W T F S
1 2 3 1
4 5 6 7 8 9 10 2 3 4 5 6 7 8
11 12 13 14 15 16 17 9 10 11 12 13 14 15
18 19 20 21 22 23 24 16 17 18 19 20 21 22
25 26 27 28 29 30 31 23 24 25 26 27 28
S M T W T F S S M T W T F S
1
1 2 3 4 5 6 7 2 3 4 5 6 7 8
8 9 10 11 12 13 14 9 10 11 12 13 14 15
15 16 17 18 19 20 21 16 17 18 19 20 21 22
22 23 24 25 26 27 28 23 24 25 26 27 28 29
29 30 30 31
S M T W T F S S M T W T F S
1 2 3 4 5 1 2 3 4 5
6 7 8 9 10 11 12 6 7 8 9 10 11 12
13 14 15 16 17 18 19 13 14 15 16 17 18 19
20 21 22 23 24 25 26 20 21 22 23 24 25 26
27 28 29 30 31 27 28 29 30
S M T W T F S S M T W T F S
1 2 1 2 3
3 4 5 6 7 8 9 4 5 6 7 8 9 10
10 11 12 13 14 15 16 11 12 13 14 15 16 17
17 18 19 20 21 22 23 18 19 20 21 22 23 24
24 25 26 27 28 29 30 25 26 27 28 29 30 31
S M T W T F S S M T W T F S
1 2 3 4 5 6 7 1 2 3 4 5 6 7
8 9 10 11 12 13 14 8 9 10 11 12 13 14
15 16 17 18 19 20 21 15 16 17 18 19 20 21
22 23 24 25 26 27 28 22 23 24 25 26 27 28
29 30 31 29 30
NOVEMBER 2013
DECEMBER 2013
MAY 2014
JUNE 2014
JULY 2013*
AUGUST 2013
JANUARY 2014
FEBRUARY 2014
MARCH 2014
APRIL 2014
SEPTEMBER 2013
OCTOBER 2013
"STATE AID" IN THE BANK
(Foundation and Salary Incentive Aid)
Electronic Funds Transfer Dates
(Target Date for Payment is Bold and Outlined)
12
Tentative Payment Schedule Foundation and Salary Incentive Aid (State Aid)
Accumulated
Accumulated
Month
Percentage
Percentage
Month
Percentage
Percentage
July
0%
0%
January
9%
54%
August
8%
8%
February
9%
63%
September
10%
18%
March
9%
72%
October
9%
27%
April
9%
81%
November
9%
36%
May
10%
91%
December
9%
45%
June
9%
100%
To calculate the state aid payment each month, multiply the accumulated percentage (see chart above) by the most recent allocation, then subtract the amount paid to date. The result is the amount of payment for any given month.
Example: The accumulated percentage for September’s state aid is 18 percent (18%); (August 8% + September 10%). Multiply your district’s most recent allocation x 18%, subtract the amount already paid to date, and the result will be the payment amount for September. 13
CHART NO. 4
OKLAHOMA STATE DEPARTMENT OF EDUCATION
COMMON EDUCATION APPROPRIATIONS
14
ACTIVITY 2012-13 2013-14
Adult Education Matching - 750,000 $
AG in the Classroom 38,675 $ 38,675 $
Alternative and High Challenge Education 14,877,366 $ 15,027,366 $
*Driver Education - -
Early Childhood Initiative 10,000,000 $ 10,500,000 $
Early Intervention 14,417,922 $ 14,417,922 $
Education Leadership Oklahoma (National Board Cert. Bonus) 14,942,350 $ 14,942,350 $
Financial Support of Schools 1,816,091,355 $ 1,837,570,779 $
Flexible Benefit Allowance - Certified Personnel 226,842,833 $ 244,347,203 $
Flexible Benefit Allowance - Support Personnel 117,321,148 $ 123,433,659 $
Instructional Materials 33,000,000 $ 33,000,000 $
Oklahoma Arts Institute 350,000 $ 350,000 $
Oklahoma Parents as Teachers 1,000,000 $ 1,000,000 $
Personal Financial Literacy $ - 150,000 $
Reform Implementation
ACE Remediation 6,696,577 $ 8,000,000 $
AP Teacher Training and Test Fee Assistance 3,236,700 $ 3,500,000 $
Charter Schools Incentive Fund 50,000 $ 50,000 $
K-20 Center Okla C3 Standards Implementation 564,000 $ 564,000 $
K-2- Center Getting STEM Ready Elem Schools 300,000 $ 300,000 $
Think Through Math 1,500,000 $ 1,800,000 $
Reading Sufficiency $ - 6,500,000 $
Reward Schools Competitive Grant 400,000 $ -
TLE Development of Value Added Component 500,000 $ 2,000,000 $
3rd Grade Reading Readiness Support Teams 500,000 $ 500,000 $
Staff Development for Schools $ - 4,250,000 $
Okla Student Information System Data $ - 2,000,000 $
REACH3 Coaches $ - 4,250,000 $
Testing $ - 3,000,000 $
Teach for America $ - 2,500,000 $
***School Reforms Competitive Grants Pool 1,212,948 $ 2,800,000 $
Rural Infant Stimulation Environment Program 529,943 $ 529,943 $
School Lunch Matching 4,600,425 $ 4,600,395 $
**School Lunch Programs 359,863 $ 359,893 $
School Consolidation Assistance Fund 3,266,980 $ 3,416,940 $
State Dept. of Education (Agency operations, testing contracts) 22,426,642 $ 22,426,642 $
Teachers' Retirement Credit 35,311,375 $ 35,311,375 $
Teachers' Retirement System of Oklahoma (TRS) 3,266,980 $ 3,416,940 $
SUBTOTAL 2,333,604,082 $ 2,407,604,082 $
* Driver Education (Revolving Fund) 900,000 $ 900,000 $
BUDGET TOTAL 2,334,504,082 $ 2,408,504,082 $
*House Bill 1420 (1997-98) initiated a revolving fund for Driver Education.
**The amount shown for School Lunch Programs is for SDE use only: Maintenance of Effort.
***To include but not limited to: Robotics, Okla A+ Schools, Payne Education Center, Great Expectations, Street School, Literacy First, Science Fair. (Part of Reform Implementation.)SECTION II
STATE AID FORMULA
for
OKLAHOMA SCHOOL DISTRICTSSECTION II
STATE AID FORMULA CALCULATION
When the Legislature adopted new formulas for the distribution of state money in 1981, and amended those formulas in 1989 and 1996, it committed itself to several principles. One of these is often called “vertical equity.” That principle is simply an effort to recognize that the costs of providing education vary with students and with districts. Some students, who have one or more disabilities, may not receive an equal educational opportunity unless more money is spent on them than for nondisabled students. Such a need has long been recognized in Oklahoma through special supplements that school districts have received to support special education services.
It is equally true that various conditions within many school districts lead to higher expenses in the delivery of education to their pupils than in other districts. For example, the costs of education are greater in a district with a small number of pupils for each teacher. Additionally, if teachers’ salaries are inordinately high due to a concentration of salaries at the high end of the salary schedule, the costs for the school district are greater than would be the case in a district which has a high percentage of its teachers at the lower levels of its salary schedule.
Pupil Weighting
The Legislature chose to consider the cost factors through pupil weighting. This concept has been around for more than 60 years. Many states adopted pupil weighting systems in the 1970s and on into the 1980s. Actually, Oklahoma has had a limited form of pupil weighting for many years. Prior to the adoption of new formulas, secondary pupils were weighted at 1.2 as opposed to 1.0 for elementary pupils. The assumption of such weight was that secondary education is somewhat more expensive to provide than is elementary education.
If the weighting system considered the varying conditions in each school district in the state regarding both pupils and districts, then all that would remain would be to apply the formulas that consider the wealth of the various districts. In a perfect equalization program, the revenue of every school district would be identical per weighted pupil unit. Such a program would mean that the weighting system was taking into full account the differences in the kinds of pupils in each district as well as individual district characteristics. It would not mean rigidity because the variation in revenue per pupil in average daily attendance or membership might well be substantial. It would simply mean that some districts would have greater numbers of weighted pupil units than others.
Whatever the theoretical base, the present formula calls for the determination of numbers of weighted pupil units as the first step in determining a given district’s eligibility for state-appropriated money. What follows is a description of the weights used in Oklahoma at the present time, along with an explanation of how the number of weighted pupils in a given district is determined. The complexity of the formula makes it difficult for a local school district to easily calculate state aid at the district level. However, the formula has been presented in the next few pages using a step-by-step format to make the calculations easier to understand. 15
STATE AID FORMULA COMPONENTS
CHANGES IN STATE AID FORMULA
FROM: 2011-12 (End of year)
TO: 2012-13 (August 2013)
Foundation Aid:
Foundation Aid:-
Weighted ADM Factor $1,578.00
Weighted ADM Factor
$1,583.00
Transportation Factor 1.39 Transportation Factor 1.39
Salary Incentive Aid:
Salary Incentive Aid:
Weighted ADM Factor
$73.11
Weighted ADM Factor
$72.60
ADM = Average Daily Membership FOUNDATION AND SALARY INCENTIVE AID COMPONENTS: STATE AID FORMULA 2013-14
The same components are used in both the Foundation and Salary Incentive Aid parts of the State Aid Formula. Weighted ADM is based on the following:
1.Raw Average Daily Membership
2.Weighted ADM Calculation
a.Pupil Grade Level
b.Pupil Category
c.District Calculation
1.Small school district formula
or
2.District sparsity-isolation formula
d.Teacher IndexOnce a Weighted ADM is calculated for the 2011-12 data and for the 2012-13 data, whichever Weighted ADM is higher will be used for the initial, tentative allocation. The components will be collected and calculated again after the first nine weeks for a new nine-week Weighted ADM during the 2013-14 school year. Whichever year has the highest of the three Weighted ADMs will be used for the January final, tentative allocation.
16
Special Education = October 1, 2013
Gifted = October 1, 2013
Bilingual = October 1, 2013 Econ. Disadv. = October 2013
Teacher Index
District Weights:
= November 2013
2013-14 State Aid Formula
2011-12 Weighted ADM* 2012-13 Weighted ADM
FY12 Raw ADM x Grade Level Weight FY13 Raw ADM x Grade Level Weight Student Category Weights: Student Category Weights:
Special Education = October 1, 2011 Special Education = October 1, 2012
Gifted = October 1, 2011 Gifted = October 1, 2012
Bilingual = October 1, 2011 Econ. Disadv. = October 2011 Bilingual = October 1, 2012 Econ. Disadv. = October 2012
Teacher Index = November 2011 Teacher Index = November 2012 District Weights: District Weights:
Small School Weight Small School Weight
using final 2012 Raw ADM using final 2013 Raw ADM or or
Isolation Weight Isolation Weight
using final 2012 Raw ADM using final 2013 Raw ADM
Total 2011-12 Weighted ADM** Total 2012-13 Weighted ADM**
*ADM=Average Daily Membership
**The higher of the two totals is to be used for the 2013-14 initial allocation in July.
2013-14 Weighted ADM
First Nine-Week Raw ADM x Grade Level Weight Student Category Weights:
Small School Weight using 2013-14 First Nine-Week Raw ADM
or Isolation Weight using 2013-14 First Nine-Week Raw ADM
Total 2013-14 First Nine-Week WeightedADM*** ***The highest of the three totals is to be used for the 2013-14 allocation in January 2014.
17
FOUNDATION AND SALARY INCENTIVE AID CALCULATION
A. Calculation of Weighted ADM for each year to be considered.
1.Pupil Grade Level Weight Calculation
a.Raw ADM Calculation
Source:State Department of Education Audit.
(1) Review Audits.
(2) Using the Days of membership on audit, divide each grade’s membership by the number of days taught.
(3) Add each grade average to compile Raw ADM.
b.Weighted Pupil Grade Level Calculation
Source: Utilize computation of original ADM from Audit.
Procedure: (1) Total each grade average based on the following categories and multiply (x) grade totals by the following weights.
Early Childhood/PK 3* 1.2 Out of Home Placement (OHP): Early Childhood/PK(Half Day) 0.7 OHP1 1.5
Early Childhood/PK (Full Day) 1.3 OHP2 1.8
Kindergarten (Half Day) 1.3 OHP3 2.3
Kindergarten (Full Day) Beg. FY2006 1.5 OHP4 3.0
1st – 2nd grade 1.351
3rd grade 1.051 *3-year-olds with an “IEP”
4th – 6th grade 1.0 Note: PK = Prekindergarten
7th – 12th grade 1.2
(2) Add each weighted pupil grade level category computed above. This figure will be the Weighted Pupil Grade Level Calculation.
Weighted Pupil Category Calculation
Source: The Special Education Child Count form (October 1) and the Gifted and Talented Education Child Count Report (due by October 1) are collected each year. The students approved for free and reduced-price lunches in October are also considered. Bilingual counts are obtained from the October Accreditation Report.
Procedure: (1) Multiply the number of students counted in each category by the weight assigned to those categories in the law. The weights are as follows:
LD .40 MR (EMH+TMR) 1.30
HI (D+HH) 2.90 ED 2.50
VI 3.80 PH (OI + OHI) 1.20
MH 2.40 Gifted .34
SI .05 D/B 3.80
Bilingual .25 Spec. Ed. Summer 1.20
TBI 2.40 Economically
Autism 2.40 Disadvantaged .25
(2) Add the weighted categories computed above. This figure will be the Weighted Pupil Category calculation.
Weighted District Calculation
Source: Utilize the same year ADM to determine if district qualifies at less than 529 ADM.
Procedure: (1) If ADM is less than 529, the following formula is used to compute this area.
If district ADM is 529 or greater, go to Step 2.
Same Year 529 – Raw ADM =
x .2 = x =
529 Same Year Small School
Raw ADM District Weight 18
(2) District may qualify for district sparsity-isolation formula. Compute the following:
(a) If school district’s total area in square miles is
greater than the state average area in square miles (134), go to next step and compute areal density. If district has less than state average area in square miles (132), go to paragraph “d” at the end of the Weighted District Calculation.
(b) Compute areal density: School district’s same year Raw ADM divided by district’s total area in square miles =
District’s Areal Density If school district’s Areal Density is less than 2.40, calculate the District Sparsity-Isolation Formula as follows in the next step. If district has an areal density of 2.40 or greater, proceed to paragraph “d” at the end of the Weighted District Calculation.
(c) Group the subtotals of the same year Raw ADM (unweighted) as
follows:
Grades EC-5 + 23 = (Ca) Grades 6-8 + 133=(Cb) Grades 9-OHP + 128 = (Cc) Use these Grade Level Group amounts in the following formula:
1)74 divided by ("Ca" from_= + .85 = _x =
above) EC-5 EC-5 Cost
ADM Factor
2)122 divided by ("Cb" from_= + .85 = _x =
above) 6-8 6-8 Cost
ADM Factor
3)292 divided by ("Cc" from_= + .78 = _x =
above) 9-OHP 9-OHP Cost
ADM Factor
4)Sum 1 + 2 + 3 from abovedivided by district’s same
year RAW ADM_= - 1.00 =
District Cost Factor
5)(District’s Square Miles- 134) divided by 134 =
Area Factor
6)Multiply District Cost Factor (Line 4 above)by the lesser of the
Area Factor (Line 5 above)or 1.00 =
Isolation Factor
7)Multiply the Isolation Factor on line 6 times the same year Raw ADM
_=
Isolation Weight
(d) Select the greater weight of the Small School District Weight or the Isolation Weight and use that weight for the Weighted District Weight.
Weighted District Weight 19
4.Weighted Teacher Index Calculation
Source: Refer to the latest Teacher Personnel Report to determine the number of teachers, degrees held, and total years of experience.
Procedure: (1) Compile information on each teacher by type of degree held and years of experience.
(2) Add the total number of teachers within each degree level (Bachelor’s, Master’s, Doctorate) and group them by the following years of experience.
“B”
“M” or “MT”
“D”
Years of Experience
Degree
Degree
Degree
0-2
.7
.9
1.1
3-5
.8
1.0
1.2
6-8
.9
1.1
1.3
9-11
1.0
1.2
1.4
12-15
1.1
1.3
1.5
Over 15
1.2
1.4
1.6
(3) Multiply (x) the total number of teachers in each degree and years of experience level by the following weights assigned by law.
(4) Add (+) all of the weights computed for a total Degree Index.
(5) Divide (÷) this total Degree Index by the total number of teachers (not FTE).
This equals the Weighted Average District Teacher.
(6) Subtract (-) the Weighted Average State Teacher from Weighted Average District Teacher. This equals the School District Teacher Index.
(7) Multiply (x) School District Teacher Index times 0.7. This computation (School District Factor) is then multiplied (x) by a partial Weighted ADM. (This partial Weighted ADM is the total of Grade Level Weight and Pupil Category Weight for Economically Disadvantaged.)
(8) The final figure is the Teacher Index Weighted Calculation. The following
formula is used for this computation. Degree Index ÷ No. of Teachers = Weighted Average District Teacher (Round to 4 places) Weighted Average District Teacher (from above) (–) Weighted Average State Teacher 1.0806
= School District Tchr. Index x .7 = x ( + _) =
Grd. Wtd. ADM Econ. Dis. Wtd.
Weighted Teacher Index
B. Compiling Individual Weighted Calculations to determine Total Weighted ADM.
Source: Use weighted totals compiled for Pupil Grade Level, Pupil Category, District Calculation, and Teacher Index.
Procedure: Add each of these weighted areas together. This figure is the Total Weighted ADM for computing the Foundation Program and the Salary Incentive Program in the State Aid Formula. C. The Total Weighted ADM for 2013-14 is then multiplied by the Base Support Level of $1,574 for the Foundation Program in the State Aid Formula.
20
D. The Transportation Supplement shall be equal to the average daily haul (ADH) times the per capita allowance times the appropriate transportation factor. The ADH is the number of children in a district who are legally transported and who live one and one-half (1 ½) miles or more by commonly traveled road from the school attended. Students living less than one and one-half (1½) miles from school may be transported, but shall not be counted in determining state aid.
The Area Served, which is the total square miles in each school district, is required for calculating the transportation supplement. For independent districts with an elementary transportation area, the area served is the total square miles in the district plus the total square miles in the assigned transportation area outside the independent district.
The district ADH of the preceding year, divided by the district Area Served will provide a Density Figure*. Use the density figure in the chart below to determine the Per Capita Allowance.
ADH x Per Capita Allowance x Transportation Factor 1.39 (an appropriation level [factor] set by the Legislature) = Transportation Aid (transportation supplement) for a school. The current formula transportation factor is 1.39 and has been unchanged in statute for many years.
The Per Capital Allowance is determined using the following chart (70 O.S. § 18-200.1 [D-2]):
DENSITY
PER CAPITA
DENSITY
PER CAPITA
*FIGURE
ALLOWANCE
*FIGURE
ALLOWANCE
.3000 - .3083
$167.00
.9334 - .9599
$99.00
.3084 - .3249
$165.00
.9600 - .9866
$97.00
.3250 - .3416
$163.00
.9867 - 1.1071
$95.00
.3417 - .3583
$161.00
1.1072 - 1.3214
$92.00
.3584 - .3749
$158.00
1.3215 - 1.5357
$90.00
.3750 - .3916
$156.00
1.5358 - 1.7499
$88.00
.3917 - .4083
$154.00
1.7500 - 1.9642
$86.00
.4084 - .4249
$152.00
1.9643 - 2.1785
$84.00
.4250 - .4416
$150.00
2.1786 - 2.3928
$81.00
.4417 - .4583
$147.00
2.3929 - 2.6249
$79.00
.4584 - .4749
$145.00
2.6250 - 2.8749
$77.00
.4750 - .4916
$143.00
2.8750 - 3.1249
$75.00
.4917 - .5083
$141.00
3.1250 - 3.3749
$73.00
.5084 - .5249
$139.00
3.3750 - 3.6666
$70.00
.5250 - .5416
$136.00
3.6667 - 3.9999
$68.00
.5417 - .5583
$134.00
4.0000 - 4.3333
$66.00
.5584 - .5749
$132.00
4.3334 - 4.6666
$64.00
.5750 - .5916
$130.00
4.6667 - 4.9999
$62.00
.5917 - .6133
$128.00
5.0000 - 5.5000
$59.00
.6134 - .6399
$125.00
5.5001 - 6.0000
$57.00
.6400 - .6666
$123.00
6.0001 - 6.5000
$55.00
.6667 - .6933
$121.00
6.5001 - 7.0000
$53.00
.6934 - .7199
$119.00
7.0001 - 7.3333
$51.00
.7200 - .7466
$117.00
7.3334 - 7.6667
$48.00
.7467 - .7733
$114.00
7.6668 - 8.0000
$46.00
.7734 - .7999
$112.00
8.0001 - 8.3333
$44.00
.8000 - .8266
$110.00
8.3334 - 8.6667
$42.00
.8267 - .8533
$108.00
8.6668 - 9.0000
$40.00
.8534 - .8799
$106.00
9.0001 - 9.3333
$37.00
.8800 - .9066
$103.00
9.3334 - 9.6667
$35.00
.9067 - .9333
$101.00
9.6668 or more
$33.00
Note: If annexation or annexations or area served makes necessary an additional unit of transportation, adjustments may be made upon the basis of ADH and Area Served during the first one-half of the current school year. School districts becoming eligible for transportation aid for the first time will be calculated on the basis of an adjustment at midyear. (OAC 210: 25-3-5)
E. Total Weighted ADM is then multiplied by the Incentive Aid Factor of $72.90 for the Salary Incentive Aid in the State Aid Formula.
21
TOTAL WEIGHTED ADM*
Foundation and Salary Incentive Aid Components
Raw ADM
ADM Grade Weight
Special Education Weight
Gifted Weight
Bilingual Weight
Summer Program Weight
Economically Disadvantaged Weight
Small School Weight (#)
Isolation Weight (#)
Teacher Index
TOTAL WEIGHTED ADM
*ADM = Average Daily Membership
# Uses Higher of Small School Weight or Isolation Weight in the Total Weighted ADM Formula
22
RAW ADM
WEIGHTED PUPIL GRADE LEVEL CALCULATION
EC/PK 3* EC/PK 3* x 1.2 = EC/PK (Half Day) EC/PK (Half Day) x .7 = EC/PK (Full Day) EC/PK (Full Day) x 1.3 = KG (Half Day) KG (Half Day) x 1.3 = KG (Full Day) KG (Full Day) x 1.5 = 01 01
02 02
Total x 1.351 =
03 03 x 1.051 = 04 04
05 05
06 06
Total x 1.0 =
07 07
08 08
09 09
10 10
11 11
12 12
Total x 1.2 =
OHP1 OHP1 x 1.5 =
OHP2 OHP2 x 1.8 =
OHP3 OHP3 x 2.3 =
OHP4 OHP4 x 3.0 =
Original Raw ADM Grade Level
Weighted ADM
Grade Level Weight
*3-year-olds with an Individualized Education Program (IEP)
23
WEIGHTS FOR WEIGHTED PUPIL CATEGORIES (70 O.S. § 18-109.5 and 70 O.S. 18-201.1)
Learning Disabilities (LD)
x
.40
=
Hearing Impaired (HI) (D
x
2.90
=
Vision Impaired (VI)
x
3.80
=
Multiple Handicapped (MH)
x
2.40
=
Speech Impaired (SI)
x
.05
=
Mentally Retarded (MR)
x
1.30
=
(EducableMentally Handicapped [EMH] + TrainableMentally Retarded [TMR])
Emotionally Disturbed (ED)
x
2.50
=
PhysicallyHandicapped (PH)
x
1.20
=
(Orthopedically Impaired [OI] + Other Health Impaired [OHI])
Autism
x
2.40
=
Traumatic Brain Injury (TBI)
x
2.40
=
Deaf-Blind (D/B)
x
3.80
=
Special Education Summer Program
x
1.20
=
Total Special Education Weight Calculation
plus
Gifted
x
.34
=
Bilingual
x
.25
=
Economically Disadvantaged
x
.25
=
TOTAL WEIGHTED PUPIL CATEGORY CALCULATION
24
WEIGHTED DISTRICT CALCULATION SIZE OF DISTRICT
SMALL SCHOOL FORMULA
Raw ADM
529 – = x .2 x =
529 Same Year Small School
Raw ADM District Weight
DISTRICT SPARSITY-ISOLATION FORMULA
A. If school district’s total area in square miles is greater than the state average area in square miles (134), go to next step and compute areal density. If district has less than state average area in square miles (134), go to paragraph “D” at the end of the Weighted District Calculation.
B. Compute areal density: School district’s Raw ADM divided by district’s total area in square miles = District’s Areal Density
If school district’s areal density is less than 2.40, calculate the District Sparsity-Isolation Formula as follows in the next step. If district has an areal density of 2.40 or greater, proceed to Paragraph “D” at the end of the Weighted District Calculation
C. Group the subtotals of the Raw ADM (unweighted) as follows:
Grades EC-5
+
23
=
(Ca)
Grades 6-8
+
133
=
(Cb)
Grades 9-OHP
+
128
=
(Cc)
Use these Grade Level Group amounts in the following formula:
1)
74 divided by “Ca” from above
= + .85 = x
=
2)
EC-5 ADM
122 divided by “Cb” from above
= + .85 = x
EC-5 Cost Factor
=
3)
6-8 ADM
292 divided by “Cc” from above
= + .78 = x
6-8 Cost Factor
=
9-0HP ADM
9-OHP Cost Factor
4)Sum 1+2+3 from abovedivided by district’s Raw ADM =
–1.00 = District Cost Factor
5)(District’s Square Miles–134) divided by 134 = Area Factor
6)Multiply District Cost Factor (Line 4 above)by lesser of the Area Factor (Line 5 above)
or 1.00 = Isolation Factor
7)Multiply the Isolation Factor on line 6 times the Raw ADM= Isolation Weight
D. Select the greater weight of the Small School District Weight or the Isolation Weight and use that weight for the Weighted District Weight . 25
26
WEIGHTED TEACHER INDEX
1
.
1
1.2
1.3
1.4
1.5
1.6
Experience
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16+
TOTAL
“D”
Degree
0.9
1.0
1.1
1.2
1.3
1.4
Experience
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16+
“M” or “MT’
Degree
0.7
0.8
0.9
1.0
1.1
1.2
Experience
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16+
“B”
Degree
Degree Index
÷ No. of Teachers = Weighted Avg. Dist. Tchr.
(Round to 4 places)
–Weighted Avg. State Tchr. 1.0806 (based on FY13 data)
= School Dist. Tchr. Index x .7_ x ( + ) =
Grade Weight ADM Econ. Disadv. Wt. Weighted TeacherCALCULATING THE STATE AID FORMULA
FOUNDATION AID
Weighted ADM x Foundation Aid Factor
= (1)
SUBTRACT CHARGEABLE INCOME
(Valuations: Up to 11% - Down to 11%)
Prior Year Net Assessed Valuation (In January: Current Year Net Assessed Valuation)
Adjusted Valuation x 15 Mills: x .015 * =
*plus increased millage because of personal property tax adjustment
(Prior Year Collections of:)
75% of County 4-Mill Levy
x .75
=
School Land
Gross Production
Motor Vehicle Collections
R.E.A. Tax
TOTAL CHARGEABLES
TOTAL
=
(2)
FOUNDATION AID TOTAL (Amount [1] Less Amount [2]) = (3)
(Zero if Less Than Zero)
TRANSPORTATION:
(Average Daily Haul x Per Capita x Transportation Factor)
x x 1.39 TOTAL = (4)
ADH Per Capita Transp. Factor
SALARY INCENTIVE AID
A
Incentive Aid Factor x =
(Weighted ADM)
B. Adjusted District Assessed Valuation / 1000 =
C Step A (-) Step B =
Step C x 20 Mills = SALARY INCENTIVE AID = (5)
TOTAL STATE AID (Amount 3 + 4 + 5) =
*Stabilization Component of the American Recovery and Reinvestment Act (ARRA)
27SECTION III
PENALTIES/ADJUSTMENTS
for
OKLAHOMA SCHOOL DISTRICTSSCHEDULE OF PENALTIES/ADJUSTMENTS
Reports Must Be Filed:.................................................................................................................... Assessed as Needed
September 1
(No later than 10
–
–
Expenditure and Revenue Reports for Previous Fiscal Year
First Quarter Statistical Report
days after the end of
the first nine weeks)
February 1
–
Annual Final Personnel Reports for Certified and Support Personnel
(No later than 10 days after the close of school)
–
Annual Statistical Report
Per Pupil Revenue in Excess of 150 Percent ....................................................Assessed on Original Allocation in July
Per Pupil Revenue in Excess of 300 Percent ....................................................Assessed on Original Allocation in July
Maintenance of Effort Penalty.................................................................... Assessed on October Payment of State Aid
Minimum Teacher Salaries Penalty ............................................................ Assessed on October Payment of State Aid
Noncertified Teacher Penalty .................................................................. Assessed on October Payment of State AidOklahoma Cost Accounting System Penalty
for Noncompliance .................................................................... Assessed on the November Payment of State Aid Delinquent Final Certified and Support Personnel Reports......................Assessed on February Payment of State AidClass Size Penalties ....................................................................................... Assessed on March Payment of State Aid
General Fund Carryover Penalty ................................................................... Assessed on March Payment of State Aid
Administrative Cost Penalty .......................................................................... Assessed on March Payment of State Aid
Noncompliance Penalty on Late Audits .......................................................Assessed on August Payment of State Aid
Penalty for Insufficient Days or Hours (per school year) ......................................... Assessed on a case-by-case basisGifted and Talanted Penalty....................................................................................................... Assessed in SeptemberState Student Record System Noncompliance
28
PER PUPIL REVENUE IN EXCESS OF 150 PERCENT FOR SCHOOL DISTRICTS RECEIVING FUNDS
THROUGH THE WEIGHTED DISTRICT CALCULATION
SMALL SCHOOL WEIGHT OR
ISOLATION WEIGHT
Pursuant to 70 O.S. § 18-201.1 . . . If after the weighted district calculation is applied, the district’s projected per pupil revenue exceeds one hundred fifty percent (150%) of the projected state average per pupil revenue then the district’s State Aid shall be reduced by an amount that will restrict the district’s projected per pupil revenue to one hundred fifty percent (150%) of the projected state average per pupil revenue. Provided, in applying the restriction provided in this division, the district’s State Aid shall not be reduced by an amount greater than by the amount of State Aid which was generated by the weighted district calculation.
The July calculation of the projected per pupil revenue shall be determined by dividing the highest of the district’s preceding two years average daily membership (ADM) as weighted by the pupil grade level, the pupil category, the district and the teacher experience degree index calculations for projected State Aid into the district’s projected total revenue including projected funds for the State Aid Formula for the preceding year, net assessed valuation for the preceding calendar year times thirty-nine (39) mills, county revenues excluding the county four- mills revenues for the second preceding year, other state appropriations for the preceding year and the collections for the preceding year of state apportionment, motor vehicle revenue, gross production tax and R.E.A. tax.
The December calculation of the projected per pupil revenue shall be determined by dividing the highest of the district’s first nine (9) weeks of the current school year or the two preceding school years average daily membership (ADM) as weighted by the pupil grade level, the pupil category, the district and the teacher experience degree index calculations for projected State Aid into the district’s projected total revenues including funds for the December calculation of the current year State Aid Formula, net assessed valuation for the current calendar year times thirty- nine (39) mills, county revenues excluding the county four-mills revenue for the preceding year, other state appropriations for the preceding year and the collections for the preceding year of state apportionment, motor vehicle revenue, gross production tax and R.E.A. tax.
The district’s projected total revenues for each calculation shall exclude the following collections for the preceding year: federal revenue, insurance loss payments, reimbursements, recovery of overpayments and refunds, unused reserves, prior expenditures recovered, prior year surpluses, and other local miscellaneous revenues.
If the School District Per Pupil Revenue exceeds the State Average Per Pupil Revenue at 150 percent (150%), calculate the difference and multiply by the highest year Weighted ADM. This calculated product is the amount of revenue which the school district has in excess of 150 percent (150%) of the State Average Per Pupil Revenue. This amount in excess will be assessed as a penalty in state aid. However, the amount calculated as a penalty cannot be greater than the amount generated by the small school or isolation weight. Whichever is the smaller dollar amount will be the actual penalty amount. If required, such penalty will be assessed at the time of the initial and final allocation of state aid formula funds. 29