Bill Text For HB2078 - Enrolled

ENROLLED HOUSE

BILL NO. 2078                       By: Hilbert, Hasenbeck, Davis, Echols, O'Donnell and West (Tammy) of the House

 

                                               and

 

                                        Taylor of the Senate

 

 

 

 

 

 

An Act relating to school funding; amending 70 O.S. 2011, Sections 18-200.1, as amended by Section 1, Chapter 128, O.S.L. 2020 and 18-201.1, as last amended by Section 3, Chapter 61, O.S.L. 2020 (70 O.S. Supp. 2020, Sections 18-200.1 and 18-201.1), which relate to State Aid; modifying calculation for initial allocation of State Aid; adjusting years of data to be used in calculating average daily membership; modifying the July calculation of per pupil revenue; revising calculation for Foundation Aid; altering calculation for Salary Incentive Aid; increasing percentages of allowable general fund carryover; prohibiting assessment of carryover penalty in certain fiscal years; adjusting weighted calculations for weighted average daily membership; revising July and December calculations for projected per pupil revenue; providing an effective date; and providing for conditional effect.

 

 

 

 

SUBJECT: School funding

 

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

 

SECTION 1.     AMENDATORY     70 O.S. 2011, Section 18-200.1, as amended by Section 1, Chapter 128, O.S.L. 2020 (70 O.S. Supp. 2020, Section 18-200.1), is amended to read as follows:

 

Section 18-200.1  A.  Beginning with the 1997-98 2022-2023 school year, and each school year thereafter, each school district shall have its initial allocation of State Aid calculated based on the state dedicated revenues actually collected during the preceding fiscal year, the adjusted assessed valuation of the preceding year and the highest weighted average daily membership for the school district of the two (2) preceding school years; however, the weighted membership of nonresident, transferred pupils enrolled in online courses shall be based on the weighted average daily membership of the preceding school year.  Each school district shall submit the following data based on the first nine (9) weeks, to be used in the calculation of the average daily membership of the school district:

 

1.  Student enrollment by grade level;

 

2.  Pupil category counts; and

 

3.  Transportation supplement data.

 

On or before December 30, the State Department of Education shall determine each school district's current year allocation pursuant to subsection D of this section.  The State Department of Education shall complete an audit, using procedures established by the Department, of the student enrollment by grade level data, pupil category counts and transportation supplement data to be used in the State Aid Formula pursuant to subsection D of this section by December 1 and by January 15 shall notify each school district of the district's final State Aid allocation for the current school year.  The January payment of State Aid and each subsequent payment for the remainder of the school year shall be based on the final State Aid allocation as calculated in subsection D of this section.  Except for reductions made due to the assessment of penalties by the State Department of Education according to law, the January payment of State Aid and each subsequent payment for the remainder of the school year shall not decrease by an amount more than the amount that the current chargeable revenue increases for that district.

 

B.  The State Department of Education shall retain not less than one and one-half percent (1 1/2%) of the total funds appropriated for financial support of schools, to be used to make midyear adjustments in State Aid and which shall be reflected in the final allocations.  If the amount of appropriated funds, including the one and one-half percent (1 1/2%) retained, remaining after January 1 of each year is not sufficient to fully fund the final allocations, the Department shall recalculate each school district's remaining allocation pursuant to subsection D of this section using the reduced amount of appropriated funds.

 

C.  On and after July 1, 1997, the amount of State Aid each district shall receive shall be the sum of the Foundation Aid, the Salary Incentive Aid and the Transportation Supplement, as adjusted pursuant to the provisions of subsection G of this section and Section 18-112.2 of this title; provided, no district having per pupil revenue in excess of three hundred percent (300%) of the average per pupil revenue of all districts shall receive any State Aid or Supplement in State Aid.

 

The July calculation of per pupil revenue shall be determined by dividing the district's second preceding year's total weighted average daily membership (ADM) into the district's second preceding year's total revenues excluding federal revenue, insurance loss payments, reimbursements, recovery of overpayments and refunds, unused reserves, prior expenditures recovered, prior year surpluses, and less the amount of any transfer fees paid in that year.

 

The December calculation of per pupil revenue shall be determined by dividing the district's preceding year's total weighted average daily membership (ADM) into the district's preceding year's total revenues excluding federal revenue, insurance loss payments, reimbursements, recovery of overpayments and refunds, unused reserves, prior expenditures recovered, prior year surpluses, and less the amount of any transfer fees paid in that year.

 

D.  For the 1997-98 school year, and each school year thereafter, Foundation Aid, the Transportation Supplement and Salary Incentive Aid shall be calculated as follows:

 

1.  Foundation Aid shall be determined by subtracting the amount of the Foundation Program Income from the cost of the Foundation Program and adding to this difference the Transportation Supplement.

 

a.   The Foundation Program shall be a district's highest higher weighted average daily membership based on the first nine (9) weeks of the current school year, the preceding school year or the second or the preceding school year of a school district, as determined by the provisions of subsection A of Section 18-201.1 of this title and paragraphs 1, 2, 3 and 4 of subsection B of Section 18-201.1 of this title, multiplied by the Base Foundation Support Level.  However, for the portion of weighted membership derived from nonresident, transferred pupils enrolled in online courses, the Foundation Program shall be a district's weighted average daily membership of the preceding school year or the first nine (9) weeks of the current school year, whichever is greater, as determined by the provisions of subsection A of Section 18-201.1 of this title and paragraphs 1, 2, 3 and 4 of subsection B of Section 18-201.1 of this title, multiplied by the Base Foundation Support Level.

 

b.   The Foundation Program Income shall be the sum of the following:

 

(1)  The adjusted assessed valuation of the current school year of the school district, minus the previous year protested ad valorem tax revenues held as prescribed in Section 2884 of Title 68 of the Oklahoma Statutes, multiplied by the mills levied pursuant to subsection (c) of Section 9 of Article X of the Oklahoma Constitution, if applicable, as adjusted in subsection (c) of Section 8A of Article X of the Oklahoma Constitution.  For purposes of this subsection, the "adjusted assessed valuation of the current school year" shall be the adjusted assessed valuation on which tax revenues are collected during the current school year, and

 

(2)  Seventy-five percent (75%) of the amount received by the school district from the proceeds of the county levy during the preceding fiscal year, as levied pursuant to subsection (b) of Section 9 of Article X of the Oklahoma Constitution, and

 

(3)  Motor Vehicle Collections, and

 

(4)  Gross Production Tax, and

 

(5)  State Apportionment, and

 

(6)  R.E.A. Tax.

 

The items listed in divisions (3), (4), (5), and (6) of this subparagraph shall consist of the amounts actually collected from such sources during the preceding fiscal year calculated on a per capita basis on the unit provided for by law for the distribution of each such revenue.

 

2.  The Transportation Supplement shall be equal to the average daily haul times the per capita allowance times the appropriate transportation factor.

 

a.   The average daily haul shall be the number of children in a district who are legally transported and who live one and one-half (1 1/2) miles or more from school.

 

b.   The per capita allowance shall be determined using the following chart:

 

PER CAPITA                            PER CAPITA

DENSITY FIGURE     ALLOWANCE         DENSITY 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

 

c.   The formula transportation factor shall be 1.39.

 

3.  Salary Incentive Aid shall be determined as follows:

 

a.   Multiply the Incentive Aid guarantee by the district's highest higher weighted average daily membership based on the first nine (9) weeks of the current school year, the preceding school year or the second or the preceding school year of a school district, as determined by the provisions of subsection A of Section 18-201.1 of this title and paragraphs 1, 2, 3 and 4 of subsection B of Section 18-201.1 of this title.

 

b.   Divide the district's adjusted assessed valuation of the current school year minus the previous year's protested ad valorem tax revenues held as prescribed in Section 2884 of Title 68 of the Oklahoma Statutes, by one thousand (1,000) and subtract the quotient from the product of subparagraph a of this paragraph.  The remainder shall not be less than zero (0).

 

c.   Multiply the number of mills levied for general fund purposes above the fifteen (15) mills required to support Foundation Aid pursuant to division (1) of subparagraph b of paragraph 1 of this subsection, not including the county four-mill levy, by the remainder of subparagraph b of this paragraph.  The product shall be the Salary Incentive Aid of the district.

 

E.  By June 30, 1998, the State Department of Education shall develop and the Department and all school districts shall have implemented a student identification system which is consistent with the provisions of subsections C and D of Section 3111 of Title 74 of the Oklahoma Statutes.  The student identification system shall be used specifically for the purpose of reporting enrollment data by school sites and by school districts, the administration of the Oklahoma School Testing Program Act, the collection of appropriate and necessary data pursuant to the Oklahoma Educational Indicators Program, determining student enrollment, establishing a student mobility rate, allocation of the State Aid Formula and mid-year adjustments in funding for student growth.  This enrollment data shall be submitted to the State Department of Education in accordance with rules promulgated by the State Board of Education.  Funding for the development, implementation, personnel training and maintenance of the student identification system shall be set out in a separate line item in the allocation section of the appropriation bill for the State Board of Education for each year.

 

F.  1.  In the event that ad valorem taxes of a school district are determined to be uncollectible because of bankruptcy, clerical error, or a successful tax protest, and the amount of such taxes deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or an amount greater than twenty-five percent (25%) of ad valorem taxes per tax year, or the valuation of a district is lowered by order of the State Board of Equalization, the school district's State Aid, for the school year that such ad valorem taxes are calculated in the State Aid Formula, shall be determined by subtracting the net assessed valuation of the property upon which taxes were deemed uncollectible from the assessed valuation of the school district and the state.  Upon request of the local board of education, it shall be the duty of the county assessor to certify to the Director of Finance of the State Department of Education the net assessed valuation of the property upon which taxes were determined uncollectible.

 

2.  In the event that the amount of funds a school district receives for reimbursement from the Ad Valorem Reimbursement Fund is less than the amount of funds claimed for reimbursement by the school district due to insufficiency of funds as provided in Section 193 of Title 62 of the Oklahoma Statutes, then the school district's assessed valuation for the school year that such ad valorem reimbursement is calculated in the State Aid Formula shall be adjusted accordingly.

 

G.  1.  Notwithstanding the provisions of Section 18-112.2 of this title, a school district shall have its State Aid reduced by an amount equal to the amount of carryover in the general fund of the district as of June 30 of the preceding fiscal year, that is in excess of the following standards for two (2) consecutive years:

 

Total Amount of                         Amount of

General Fund Collections,             General Fund

Excluding Previous Year                   Balance

Cash Surplus as of June 30              Allowable

 

        Less than $1,000,000                        40% 48%

 

        $1,000,000 - $2,999,999                     35% 42%

 

            $3,000,000 - $3,999,999                     30% 36%

 

            $4,000,000 - $4,999,999                     25% 30%

 

            $5,000,000 - $5,999,999                     20% 24%

 

            $6,000,000 - $7,999,999                     18% 22%

 

            $8,000,000 - $9,999,999                     16% 19%

 

           $10,000,000 or more                          14% 17%

 

2.  By February 1 the State Department of Education shall send by certified mail, with return receipt requested, to each School District Superintendent, Auditor and Regional Accreditation Officer a notice of and calculation sheet reflecting the general fund balance penalty to be assessed against that school district.  Calculation of the general fund balance penalty shall not include federal revenue.  Within thirty (30) days of receipt of this written notice the school district shall submit to the Department a written reply either accepting or protesting the penalty to be assessed against the district.  If protesting, the school district shall submit with its reply the reasons for rejecting the calculations and documentation supporting those reasons.  The Department shall review all school district penalty protest documentation and notify each district by March 15 of its finding and the final penalty to be assessed to each district.  General fund balance penalties shall be assessed to all school districts by April 1.

 

3.  Any school district which receives proceeds from a tax settlement or a Federal Emergency Management Agency settlement during the last two (2) months of the preceding fiscal year shall be exempt from the penalties assessed in this subsection, if the penalty would occur solely as a result of receiving funds from the tax settlement.

 

4.  Any school district which receives an increase in State Aid because of a change in Foundation and/or Salary Incentive Aid factors during the last two (2) months of the preceding fiscal year shall be exempt from the penalties assessed in this subsection, if the penalty would occur solely as a result of receiving funds from the increase in State Aid.

 

5.  If a school district does not receive Foundation and/or Salary Incentive Aid during the preceding fiscal year, the State Board of Education may waive the penalty assessed in this subsection if the penalty would result in a loss of more than forty percent (40%) of the remaining State Aid to be allocated to the school district between April 1 and the remainder of the school year and if the Board determines the penalty will cause the school district not to meet remaining financial obligations.

 

6.  Any school district which receives gross production revenue apportionment during the 2002-2003 school year or in any subsequent school year that is greater than the gross production revenue apportionment of the preceding school year shall be exempt from the penalty assessed in this subsection, if the penalty would occur solely as a result of the gross production revenue apportionment, as determined by the State Board of Education.

 

7.  Beginning July 1, 2003, school districts that participate in consolidation or annexation pursuant to the provisions of the Oklahoma School Voluntary Consolidation and Annexation Act shall be exempt from the penalty assessed in this subsection for the school year in which the consolidation or annexation occurs and for the next three (3) fiscal years.

 

8.  Any school district which receives proceeds from a sales tax levied by a municipality pursuant to Section 22-159 of Title 11 of the Oklahoma Statutes or proceeds from a sales tax levied by a county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes during the 2003-2004 school year or the 2004-2005 school year shall be exempt from the penalties assessed in this subsection, if the penalty would occur solely as a result of receiving funds from the sales tax levy.

 

9.  Any school district which has an amount of carryover in the general fund of the district in excess of the limits established in paragraph 1 of this subsection during the fiscal year years beginning July 1, 2019 2022, and July 1, 2023, shall not be assessed a general fund balance penalty as provided for in this subsection.

 

10.  For purposes of calculating the general fund balance penalty, the terms "carryover" and "general fund balance" shall not include federal revenue.

 

H.  In order to provide startup funds for the implementation of early childhood programs, State Aid may be advanced to school districts that initially start early childhood instruction at a school site.  School districts that desire such advanced funding shall make application to the State Department of Education no later than September 15 of each year and advanced funding shall be awarded to the approved districts no later than October 30.  The advanced funding shall not exceed the per pupil amount of State Aid as calculated in subsection D of this section per anticipated Head Start eligible student.  The total amount of advanced funding shall be proportionately reduced from the monthly payments of the district's State Aid payments during the last six (6) months of the same fiscal year.

 

I.  1.  Beginning July 1, 1996, the Oklahoma Tax Commission, notwithstanding any provision of law to the contrary, shall report monthly to the State Department of Education the monthly apportionment of the following information:

 

a.   the assessed valuation of property,

 

b.   motor vehicle collections,

 

c.   R.E.A. tax collected, and

 

d.   gross productions tax collected.

 

2.  Beginning July 1, 1997, the State Auditor and Inspector's Office, notwithstanding any provision of law to the contrary, shall report monthly to the State Department of Education the monthly apportionment of the proceeds of the county levy.

 

3.  Beginning July 1, 1996, the Commissioners of the Land Office, notwithstanding any provision of law to the contrary, shall report monthly to the State Department of Education the monthly apportionment of state apportionment.

 

4.  Beginning July 1, 1997, the county treasurers' offices, notwithstanding any provision of law to the contrary, shall report monthly to the State Department of Education the ad valorem tax protest amounts for each county.

 

5.  The information reported by the Tax Commission, the State Auditor and Inspector's Office, the county treasurers' offices and the Commissioners of the Land Office, pursuant to this subsection shall be reported by school district on forms developed by the State Department of Education.

 

SECTION 2.     AMENDATORY     70 O.S. 2011, Section 18-201.1, as last amended by Section 3, Chapter 61, O.S.L. 2020 (70 O.S. Supp. 2020, Section 18-201.1), is amended to read as follows:

 

Section 18-201.1  A.  Beginning with the 2020-21 school year, and each school year thereafter, the weighted membership of a school district for calculation of Foundation Aid purposes pursuant to paragraph 1 of subsection D of Section 18-200.1 of this title shall be the sum of the weighted pupil grade level calculation, the weighted pupil category calculation, the weighted district calculation and the weighted teacher experience and degree calculation.  The weighted membership of a school district for calculation of Salary Incentive Aid purposes pursuant to paragraph 3 of subsection D of Section 18-200.1 of this title shall be the sum of the weighted pupil grade level calculation, the weighted pupil category calculation, the weighted district calculation and the weighted teacher experience and degree calculation.

 

B.  The Beginning with the 2022-2023 school year, the weighted calculations provided for in subsection A of this section shall be based on the highest higher weighted average daily membership of the first nine (9) weeks of the current school year, the preceding school year or the second or the preceding school year of a school district, unless otherwise specified.  The highest higher of the three (3) two (2) weighted average daily memberships shall be used consistently in all of the calculations; however, the weighted calculation for a statewide virtual charter school experiencing a significant decline in membership shall be based on the first nine (9) weeks of the current school year and not on the preceding school year or the second preceding school year for the statewide virtual charter school.  For purposes of this subsection, "significant decline in membership" means equal to or greater than a fifteen percent (15%) decrease in average daily membership from the preceding school year to the average daily membership of the first nine (9) weeks of the current school year.  The average daily membership data used for all calculations in paragraphs 1, 2, 3 and 4 of this subsection shall be the same as used in the calculation of the State Aid Formula.  The weighted calculations provided for in subsection A of this section shall be determined as follows:

 

1.  The weighted pupil grade level calculation shall be determined by taking the highest average daily membership and assigning weights to the pupils according to grade attended as follows:

 

GRADE LEVEL                             WEIGHT

 

a.   Half-day early childhood programs            .7

 

b.   Full-day early childhood programs           1.3

 

c.   Half-day kindergarten                      1.3

 

d.   Full-day kindergarten                      1.5

 

e.   First and second grade                     1.351

 

f.   Third grade                                1.051

 

g.   Fourth through sixth grade                 1.0

 

h.   Seventh through twelfth grade               1.2

 

i.   Out-of-home placement                      1.50

 

Multiply the membership of each subparagraph of this paragraph by the weight assigned to such subparagraph of this paragraph and add the totals together to determine the weighted pupil grade level calculation for a school district.  Determination of the pupils eligible for the early childhood program weight shall be pursuant to the provisions of Section 1-114 of this title.  The pupils eligible for the out-of-home placement pupil weight shall be students who are not residents of the school district in which they are receiving education pursuant to the provisions of subsection D of Section 1-113 of this title.  Such weight may be claimed by the district providing educational services to such student for the days that student is enrolled in that district.  If claimed, the out-of-home placement weight shall be in lieu of the pupil grade level and any pupil category weights for that student.  Provided, if a student resides in a juvenile detention center that is restricted to less than twelve (12) beds, the out-of-home placement pupil weight for such students shall be calculated as follows: for a center with six (6) beds - 3.0; for a center with eight (8) beds - 2.3 and for a center with ten (10) beds - 1.80.

 

2.  The weighted pupil category calculation shall be determined by assigning a weight to the pupil category as follows:

 

CATEGORY                                  WEIGHT

 

a.   Visual Impairment                           3.8

 

b.   Specific Learning Disability                 .4

 

c.   Deafness or Hearing Impairment              2.9

 

d.   Deaf-Blindness                              3.8

 

e.   Intellectual Disability                     1.3

 

f.   Emotional Disturbance                       2.5

 

g.   Gifted                                      .34

 

h.   Multiple Disabilities                       2.4

 

i.   Orthopedic Impairment                       1.2

 

j.   Speech or Language Impairment                .05

 

k.   Bilingual                                    .25

 

l.   Special Education Summer Program             1.2

 

m.   Economically Disadvantaged                   .25

 

n.   Optional Extended School Year Program                             As determined by

                                        the State Board

                                        of Education

 

o.   Autism                                     2.4

 

p.   Traumatic Brain Injury                      2.4

 

q.   Other Health Impairment                     1.2

 

Except as otherwise provided, multiply the number of pupils approved in the school year with the highest average daily membership in each category by the weight assigned to such category and add the totals together to determine the weighted pupil category calculation for a school district.  For the 1996-97 school year, the number to be multiplied by the weight assigned to the gifted category in subparagraph g of this paragraph shall be the lesser of (1) the sum of the number of students who scored in the top three percent (3%) on any national standardized test of intellectual ability plus the number of students identified as gifted pursuant to subparagraphs a through d of paragraph 1 of Section 1210.301 of this title or (2) the sum of the number of students who scored in the top three percent (3%) on any national standardized test of intellectual ability plus eight percent (8%) of the total average daily membership of the school district for the preceding school year.  For the 1997-98 school year and subsequent school years, the number to be multiplied by the weight assigned to the gifted category in subparagraph g of this paragraph shall be the lesser of (1) the sum of the number of students who scored in the top three percent (3%) on any national standardized test of intellectual ability plus the number of students identified as gifted pursuant to subparagraphs a through d of paragraph 1 of Section 1210.301 of this title, or (2) the sum of the number of students who scored in the top three percent (3%) on any national standardized test of intellectual ability plus eight percent (8%) of the total average daily membership of the school district for the first nine (9) weeks of the school year.

 

3.  The weighted district calculation shall be determined by determining the calculations for each school district for both the small school district formula and the district sparsity - isolation formula, applying whichever is the greater of the calculations of the two formulas and then applying the restrictions pursuant to subparagraph c of this paragraph.

 

a.   Small school district formula:  529 minus the average daily membership divided by 529 times .2 times total average daily membership.

 

The small school district formula calculation shall apply only to school districts whose highest average daily membership is less than 529 pupils.  School districts which are consolidated or annexed after July 1, 2003, pursuant to the Oklahoma School Voluntary Consolidation and Annexation Act shall have the weighted district size calculation for the three (3) school years following the fiscal year in which such consolidation occurred calculated to be the sum of the individual consolidated districts computed as if the consolidation had not taken place.  Thereafter, any such district which is consolidated pursuant to the Oklahoma School Voluntary Consolidation and Annexation Act shall not qualify for the weighted district calculation unless the district can satisfy the specifications herein.  Subject to the provisions of subparagraph c of this paragraph, the resulting number shall be counted as additional students for the purpose of calculating State Aid.

 

b.   District sparsity - isolation formula:

 

The district sparsity - isolation formula calculation shall apply only to school districts:

 

(1)  whose total area in square miles is greater than the average number of square miles for all school districts in this state; and

 

(2)  whose areal density is less than one-fourth (1/4) of the state average areal density.  Areal density shall be determined by dividing the school district's average daily membership by the school district's total area in square miles.

 

The district sparsity - isolation formula calculation shall be calculated as follows:

 

The school district student cost factor multiplied by the school district area factor.  The resulting product shall be multiplied by the school district's average daily membership.  Subject to the provisions of subparagraph c of this paragraph, the resulting number shall be counted as additional students for the purpose of calculating State Aid.

 

The school district student cost factor shall be calculated as follows:

 

The school district's average daily membership shall be categorized into the following grade level groups and applied to the appropriate formulas as computed below:

 

Grade Level Group

 

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

Level ADM plus 23,

add .85 to the quotient, then

multiply the sum by the Grade

Level ADM.

 

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

Level ADM plus 133,

 

add .85 to the quotient, then

multiply the sum by the Grade

Level ADM.

 

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

Level ADM plus 128,

add .78 to the quotient, then

multiply the sum by the Grade

Level ADM.

 

The sum of the grade level group's average daily membership shall be divided by the school district's average daily membership.  The number one (1.0) shall be subtracted from the resulting quotient.

 

The school district area cost factor shall be calculated as follows:

 

Subtract the state average district area from the district area, then divide the remainder by the state average district area;

 

however, the district area cost factor shall not exceed one (1.0).

 

The State Board of Education shall define geographical barriers whose location in a school district would inhibit the district from consolidation or annexation.  The Board shall make available an application process, review applications, and for districts the Board deems necessary allow additional square miles to be used for the purposes of calculations used for the weighted district sparsity - isolation formula.  Provided, that the additional square miles allowed for geographical barriers shall not exceed thirty percent (30%) of the district's actual size.

 

c.   State Aid funds which a district is calculated to receive as a result of the weighted district calculation shall be restricted as follows:

 

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 (2) years year's 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 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 higher of the district's first nine (9) weeks of the current school year or the two (2) preceding school years year's 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 second 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.

 

4.  The weighted teacher experience and degree calculation shall be determined in accordance with the teacher experience and degree index.  The State Department of Education shall determine an index for each state teacher by using data supplied in the school district's teacher personnel reports of the preceding year and utilizing the index as follows:

 

TEACHER EXPERIENCE - DEGREE INDEX

 

EXPERIENCE         BACHELOR'S          MASTER'S         DOCTOR'S

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

 

The school district teacher index for each school district shall be determined by subtracting the weighted average state teacher from the weighted average district teacher.  Multiply the school district teacher index if greater than zero by .7 and then multiply that product by the sum of the district's weighted pupil grade level calculation provided in paragraph 1 of this subsection and the weighted pupil category calculation provided in subparagraph m of paragraph 2 of this subsection to determine the weighted teacher experience and degree calculation.

 

SECTION 3.  This act shall become effective July 1, 2022.

 

SECTION 4.  The provisions of this act shall be contingent upon the enactment of the provisions of either House Bill No. 2074 or Senate Bill No. 783 of the 1st Session of the 58th Oklahoma Legislature and shall not become operative as law otherwise.

 

Passed the House of Representatives the 24th day of February, 2021.

 

 

 

                            

                                   Presiding Officer of the House

                                               of Representatives

 

 

Passed the Senate the 31st day of March, 2021.

 

 

 

                             

                                  Presiding Officer of the Senate

 

 

 

OFFICE OF THE GOVERNOR

Received by the Office of the Governor this ____________________ day of ___________________, 20_______, at _______ o'clock _______ M.

By: _________________________________

Approved by the Governor of the State of Oklahoma this _________ day of ___________________, 20_______, at _______ o'clock _______ M.

 

 

                                  _________________________________

                                  Governor of the State of Oklahoma

 

OFFICE OF THE SECRETARY OF STATE

Received by the Office of the Secretary of State this __________ day of ___________________, 20_______, at _______ o'clock _______ M.

By: _________________________________

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