1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 359 By: Pugh
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6 AS INTRODUCED
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7 An Act relating to school funding; amending 70 O.S.
7 2021, Section 18-200.1, as last amended by Section 2,
8 Chapter 488, O.S.L. 2021, which relates to the
8 allocation of State Aid; modifying calculation of
9 Foundation Program Income and Salary Incentive Aid
9 beginning in certain school year; directing the State
10 Department of Education to include in its budget
10 request certain protested ad valorem tax revenue
11 amount; providing for codification; and providing an
11 effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 70 O.S. 2021, Section 18-200.1, as
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16 last amended by Section 2, Chapter 488, O.S.L. 2021, is amended to
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17 read as follows:
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18 Section 18-200.1. A. Beginning with the 2022-2023 2024-2025
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19 school year, and each school year thereafter, each school district
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20 shall have its initial allocation of State Aid calculated based on
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21 the state dedicated revenues actually collected during the preceding
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22 fiscal year, the adjusted assessed valuation of the preceding year,
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23 and the weighted average daily membership for the school district of
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24 the preceding school year. Each school district shall submit the
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 1 following data based on the first nine (9) weeks, to be used in the
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2 calculation of the average daily membership of the school district:
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3 1. Student enrollment by grade level;
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4 2. Pupil category counts; and
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5 3. Transportation supplement data.
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6 On or before December 30, the State Department of Education
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7 shall determine each school district’s current year allocation
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8 pursuant to subsection D of this section. The State Department of
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9 Education shall complete an audit, using procedures established by
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10 the Department, of the student enrollment by grade level data, pupil
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11 category counts, and transportation supplement data to be used in
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12 the State Aid Formula pursuant to subsection D of this section by
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13 December 1 and by January 15 shall notify each school district of
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14 the district’s final State Aid allocation for the current school
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15 year. The January payment of State Aid and each subsequent payment
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16 for the remainder of the school year shall be based on the final
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17 State Aid allocation as calculated in subsection D of this section.
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18 Except for reductions made due to the assessment of penalties by the
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19 State Department of Education according to law, the January payment
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20 of State Aid and each subsequent payment for the remainder of the
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21 school year shall not decrease by an amount more than the amount
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22 that the current chargeable revenue increases for that district.
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23 B. The State Department of Education shall retain not less than
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24 one and one-half percent (1 1/2%) of the total funds appropriated
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 1 for financial support of schools, to be used to make midyear
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2 adjustments in State Aid and which shall be reflected in the final
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3 allocations. If the amount of appropriated funds, including the one
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4 and one-half percent (1 1/2%) retained, remaining after January 1 of
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5 each year is not sufficient to fully fund the final allocations, the
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6 Department shall recalculate each school district’s remaining
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7 allocation pursuant to subsection D of this section using the
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8 reduced amount of appropriated funds.
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9 C. On and after July 1, 1997, the amount of State Aid each
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10 district shall receive shall be the sum of the Foundation Aid, the
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11 Salary Incentive Aid, and the Transportation Supplement, as adjusted
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12 pursuant to the provisions of subsection G of this section and
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13 Section 18-112.2 of this title; provided, no district having per
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14 pupil revenue in excess of three hundred percent (300%) of the
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15 average per pupil revenue of all districts shall receive any State
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16 Aid or Supplement in State Aid.
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17 The July calculation of per pupil revenue shall be determined by
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18 dividing the district’s second preceding year’s total weighted
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19 average daily membership (ADM) into the district’s preceding year’s
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20 total revenues excluding federal revenue, insurance loss payments,
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21 reimbursements, recovery of overpayments and refunds, unused
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22 reserves, prior expenditures recovered, prior year surpluses, and
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23 less the amount of any transfer fees paid in that year.
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 1 The December calculation of per pupil revenue shall be
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2 determined by dividing the district’s preceding year’s total
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3 weighted average daily membership (ADM) into the district’s
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4 preceding year’s total revenues excluding federal revenue, insurance
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5 loss payments, reimbursements, recovery of overpayments and refunds,
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6 unused reserves, prior expenditures recovered, prior year surpluses,
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7 and less the amount of any transfer fees paid in that year.
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8 D. For the 1997-98 school year, and each school year
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9 thereafter, Foundation Aid, the Transportation Supplement, and
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10 Salary Incentive Aid shall be calculated as follows:
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11 1. Foundation Aid shall be determined by subtracting the amount
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12 of the Foundation Program Income from the cost of the Foundation
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13 Program and adding to this difference the Transportation Supplement.
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14 a. The Foundation Program shall be a district’s higher
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15 weighted average daily membership based on the first
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16 nine (9) weeks of the current school year or the
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17 preceding school year of a school district, as
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18 determined by the provisions of subsection A of
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19 Section 18-201.1 of this title and paragraphs 1, 2, 3,
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20 and 4 of subsection B of Section 18-201.1 of this
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21 title, multiplied by the Base Foundation Support
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22 Level. However, for the portion of weighted
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23 membership derived from nonresident, transferred
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24 pupils enrolled in online courses, the Foundation
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 1 Program shall be a district’s weighted average daily
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2 membership of the preceding school year or the first
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3 nine (9) weeks of the current school year, whichever
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4 is greater, as determined by the provisions of
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5 subsection A of Section 18-201.1 of this title and
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6 paragraphs 1, 2, 3, and 4 of subsection B of Section
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7 18-201.1 of this title, multiplied by the Base
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8 Foundation Support Level.
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9 b. The Foundation Program Income shall be the sum of the
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10 following:
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11 (1) The adjusted assessed valuation of the current
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12 school year of the school district, minus the
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13 previous year protested ad valorem tax revenues
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14 held as prescribed in Section 2884 of Title 68 of
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15 the Oklahoma Statutes, multiplied by the mills
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16 levied pursuant to subsection (c) of Section 9 of
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17 Article X of the Oklahoma Constitution, if
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18 applicable, as adjusted in subsection (c) of
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19 Section 8A of Article X of the Oklahoma
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20 Constitution. For purposes of this subsection,
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21 the “adjusted assessed valuation of the current
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22 school year” shall be the adjusted assessed
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23 valuation on which tax revenues are collected
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24 during the current school year, and
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 1 (2) Seventy-five percent (75%) of the amount received
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2 by the school district from the proceeds of the
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3 county levy during the preceding fiscal year, as
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4 levied pursuant to subsection (b) of Section 9 of
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5 Article X of the Oklahoma Constitution, and
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6 (3) Motor Vehicle Collections, and
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7 (4) Gross Production Tax, and
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8 (5) State Apportionment, and
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9 (6) R.E.A. Tax.
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10 The items listed in divisions (1), (3), (4), (5), and
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11 (6) of this subparagraph shall consist of the amounts
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12 actually collected from such sources during the
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13 preceding fiscal year calculated on a per capita basis
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14 on the unit provided for by law for the distribution
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15 of each such revenue.
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16 2. The Transportation Supplement shall be equal to the average
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17 daily haul times the per capita allowance times the appropriate
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18 transportation factor.
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19 a. The average daily haul shall be the number of children
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20 in a district who are legally transported and who live
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21 one and one-half (1 1/2) miles or more from school.
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22 b. The per capita allowance shall be determined using the
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23 following chart:
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24 PER CAPITA PER CAPITA
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 1 DENSITY FIGURE ALLOWANCE DENSITY FIGURE ALLOWANCE
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2 .3000 - .3083 $167.00 .9334 - .9599 $99.00
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3 .3084 - .3249 $165.00 .9600 - .9866 $97.00
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4 .3250 - .3416 $163.00 .9867 - 1.1071 $95.00
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5 .3417 - .3583 $161.00 1.1072 - 1.3214 $92.00
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6 .3584 - .3749 $158.00 1.3215 - 1.5357 $90.00
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7 .3750 - .3916 $156.00 1.5358 - 1.7499 $88.00
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8 .3917 - .4083 $154.00 1.7500 - 1.9642 $86.00
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9 .4084 - .4249 $152.00 1.9643 - 2.1785 $84.00
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10 .4250 - .4416 $150.00 2.1786 - 2.3928 $81.00
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11 .4417 - .4583 $147.00 2.3929 - 2.6249 $79.00
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12 .4584 - .4749 $145.00 2.6250 - 2.8749 $77.00
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13 .4750 - .4916 $143.00 2.8750 - 3.1249 $75.00
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14 .4917 - .5083 $141.00 3.1250 - 3.3749 $73.00
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15 .5084 - .5249 $139.00 3.3750 - 3.6666 $70.00
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16 .5250 - .5416 $136.00 3.6667 - 3.9999 $68.00
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17 .5417 - .5583 $134.00 4.0000 - 4.3333 $66.00
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18 .5584 - .5749 $132.00 4.3334 - 4.6666 $64.00
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19 .5750 - .5916 $130.00 4.6667 - 4.9999 $62.00
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20 .5917 - .6133 $128.00 5.0000 - 5.5000 $59.00
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21 .6134 - .6399 $125.00 5.5001 - 6.0000 $57.00
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22 .6400 - .6666 $123.00 6.0001 - 6.5000 $55.00
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23 .6667 - .6933 $121.00 6.5001 - 7.0000 $53.00
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24 .6934 - .7199 $119.00 7.0001 - 7.3333 $51.00
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 1 .7200 - .7466 $117.00 7.3334 - 7.6667 $48.00
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2 .7467 - .7733 $114.00 7.6668 - 8.0000 $46.00
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3 .7734 - .7999 $112.00 8.0001 - 8.3333 $44.00
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4 .8000 - .8266 $110.00 8.3334 - 8.6667 $42.00
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5 .8267 - .8533 $108.00 8.6668 - 9.0000 $40.00
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6 .8534 - .8799 $106.00 9.0001 - 9.3333 $37.00
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7 .8800 - .9066 $103.00 9.3334 - 9.6667 $35.00
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8 .9067 - .9333 $101.00 9.6668 or more $33.00
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9 c. The formula transportation factor shall be 1.39.
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10 3. Salary Incentive Aid shall be determined as follows:
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11 a. Multiply the Incentive Aid guarantee by the district’s
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12 higher weighted average daily membership based on the
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13 first nine (9) weeks of the current school year or the
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14 preceding school year of a school district, as
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15 determined by the provisions of subsection A of
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16 Section 18-201.1 of this title and paragraphs 1, 2, 3,
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17 and 4 of subsection B of Section 18-201.1 of this
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18 title.
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19 b. Divide the district’s adjusted assessed valuation of
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20 the current school year minus the previous year’s
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21 protested ad valorem tax revenues held as prescribed
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22 in Section 2884 of Title 68 of the Oklahoma Statutes,
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23 by one thousand (1,000) and subtract the quotient from
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 1 the product of subparagraph a of this paragraph. The
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2 remainder shall not be less than zero (0).
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3 c. Multiply the number of mills levied for general fund
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4 purposes above the fifteen (15) mills required to
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5 support Foundation Aid pursuant to division (1) of
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6 subparagraph b of paragraph 1 of this subsection, not
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7 including the county four-mill levy, by the remainder
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8 of subparagraph b of this paragraph. The product
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9 shall be the Salary Incentive Aid of the district.
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10 E. By June 30, 1998, the State Department of Education shall
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11 develop and the Department and all school districts shall have
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12 implemented a student identification system which is consistent with
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13 the provisions of subsections C and D of Section 3111 of Title 74 of
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14 the Oklahoma Statutes. The student identification system shall be
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15 used specifically for the purpose of reporting enrollment data by
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16 school sites and by school districts, the administration of the
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17 Oklahoma School Testing Program Act, the collection of appropriate
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18 and necessary data pursuant to the Oklahoma Educational Indicators
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19 Program, determining student enrollment, establishing a student
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20 mobility rate, allocation of the State Aid Formula and midyear
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21 adjustments in funding for student growth. This enrollment data
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22 shall be submitted to the State Department of Education in
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23 accordance with rules promulgated by the State Board of Education.
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24 Funding for the development, implementation, personnel training and
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 1 maintenance of the student identification system shall be set out in
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2 a separate line item in the allocation section of the appropriation
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3 bill for the State Board of Education for each year.
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4 F. 1. In the event that ad valorem taxes of a school district
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5 are determined to be uncollectible because of bankruptcy, clerical
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6 error, or a successful tax protest, and the amount of such taxes
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7 deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or
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8 an amount greater than twenty-five percent (25%) of ad valorem taxes
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9 per tax year, or the valuation of a district is lowered by order of
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10 the State Board of Equalization, the school district’s State Aid,
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11 for the school year that such ad valorem taxes are calculated in the
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12 State Aid Formula, shall be determined by subtracting the net
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13 assessed valuation of the property upon which taxes were deemed
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14 uncollectible from the assessed valuation of the school district and
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15 the state. Upon request of the local board of education, it shall
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16 be the duty of the county assessor to certify to the Director of
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17 Finance of the State Department of Education the net assessed
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18 valuation of the property upon which taxes were determined
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19 uncollectible.
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20 2. In the event that the amount of funds a school district
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21 receives for rei