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70-18-200.1.


70-18-200.1.


    A.  Beginning with the 1997-98 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.  The State Department of Education shall notify each
school district by July 15 of the district's initial allocation
level.  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, each school
district shall receive a proportionate reduction in funding.
    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
              weighted average daily membership based on the first
              nine (9) weeks of the current school year, the
              preceding school year or the second 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.
         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 weighted average daily membership based on the
              first nine (9) weeks of the current school year, the
              preceding school year or the second 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.
    For the 1997-98 school year, school districts who had over One
Hundred Fifty Thousand Dollars ($150,000.00) held in protest by a
commercial entity as part of the 1995 assessed valuation shall have
the protested amount subtracted from the current year assessed
valuation as used for the purposes of calculating State Aid.
    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.  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:
              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%
           $1,000,000 - $2,999,999                           35%
           $3,000,000 - $3,999,999                           30%
           $4,000,000 - $4,999,999                           25%
           $5,000,000 - $5,999,999                           20%
           $6,000,000 - $7,999,999                           16%
           $8,000,000 - $10,000,000                          12%
           More than $10,000,000                              8%
    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.  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.  Any school district which receives proceeds
from a tax 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.
    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 Oklahoma 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 Oklahoma 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 Oklahoma 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.



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