Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB706 Compare Versions

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28		-	~~ENGROSSED~~ SENATE
29		-	~~BILL NO.~~ ~~706 By: Pugh of the Senate~~
	29	+	SENATE FLOOR VERSION
	30	+	February 11, 2025
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31		-	and
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33		-	Lowe (Dick) of the House
	33	+	SENATE BILL NO. 706 By: Pugh
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38	39		An Act relating to school funding; amending 70 O.S.
39	40		2021, Section 1-117, which relates to school district
40	41		general funds; updating statutory reference; removing
41	42		language exempting ce rtain funds from calculation of
42	43		general fund carryover; amending 70 O.S. 2021,
43	44		Section 18-200.1, as amended by Section 1, Chapter
44	45		280, O.S.L. 2023 (70 O.S. Supp. 2024, Section 18 -
45	46		200.1), which relates to State Aid; modifying certain
46	47		calculation of per pupi l revenue; removing
47	48		limitations on school district general fund
48	49		carryover, method for calculating carryover amount,
49	50		and penalties for exceeding limitations; updating
50	51		statutory language; repealing 70 O.S. 2021, Section
51	52		18-200.1, as amended by Section 1, Cha pter 488,
52	53		O.S.L. 2021, which relates to State Aid; providing an
53	54		effective date; and declaring an emergency .
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58	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
59	60		SECTION 1. AMENDATORY 70 O.S. 2021, Section 1 -117, is
60	61		amended to read as follows:
61	62		Section 1-117. A. The general fund of any school district is
62	63		hereby defined as a current expense fund and shall consist of all
63	64		revenue or monies that can legally be expended within a certain
64	65		specified fiscal year, but shall not be consi dered as including any
65	66		money derived from a special building fund levy made in accordance
66	67		with the provisions of Section 10 of Article X of the Oklahoma
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93	95		Constitution, nor shall it include any monies derived from the sale
94	96		of bonds issued under the provision s of Section 26 of Article X of
95	97		the Oklahoma Constitution. All monies derived from the proceeds of
96	98		the school levies made pursuant to the provisions of Section 9 of
97	99		Article X of the Oklahoma Constitution shall be placed in the
98	100		general fund provided by thi s section. Expenditures from the
99	101		general fund shall be noncapital in nature. All monies derived from
100	102		state-dedicated revenue, state -appropriated revenue unless otherwise
101	103		provided for by law, and county sources shall be placed in the
102	104		general fund provided for by this section. Except as provided for
103	105		in subsections F, K, and L of this section, a district shall not be
104	106		authorized to make capital expenditures as defined by this section
105	107		from the general fund.
106	108		B. For purposes of this section, state -dedicated revenue shall
107	109		be any registration or license fees, taxes, or penalties collected
108	110		at the state level and distr ibuted to common school districts.
109	111		County sources shall be all funds collected by the county and
110	112		distributed to common school districts but shall no t include any
111	113		funds derived from the building fund levy made in accordance with
112	114		the provisions of Section 10 of Article X of the Oklahoma
113	115		Constitution or funds derived from the sinking fund levy made in
114	116		accordance with the provisions of Section 26 of Artic le X of the
115	117		Oklahoma Constitution.
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142	145		C. For the purposes of this section, a capital expenditure
143	146		shall be an expenditure which results in the acquisition of fixed
144	147		assets or additions to fixed assets. Capital expenditures shall
145	148		include, but shall not be limi ted to, purchases of land or existing
146	149		buildings, purchases of real property, improvements of grounds and
147	150		sites for construction purposes, all expenditures for construction
148	151		of buildings unless authorized by the State Board of Education or
149	152		the State Board of Career and Technology Education upon application
150	153		to the appropriate state board pursuant to subsection F o f this
151	154		section, additions to buildings, remodeling of buildings if such
152	155		remodeling involves changes to roof structures or load -bearing
153	156		walls, professional services, salaries and expenses of architects
154	157		and engineers hired or assigned to capital projects except for such
155	158		services, salaries and expenses as are applicable in preparation for
156	159		a bond issue, expenditures for the initial installation and
157	160		extension of service systems and built -in heat or air equipment to
158	161		existing buildings, expenditures for the replac ement of a building
159	162		which has been destroyed, installments and lease payments on
160	163		property, including interest, that have a terminal date and result
161	164		in the acquisition of property, and expenditures for preliminary
162	165		studies made prior to the time that authority to proceed with a
163	166		construction project is given if authority is received within the
164	167		same fiscal year that the expenditure was made.
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191	195		D. Noncapital expenditures shall include, but shall not be
192	196		limited to, expenditures for maintenance, repair , and replacement of
193	197		property and equipment, initial or additional purchases of furniture
194	198		and equipment, direct expenses for maintenance of plant , including
195	199		grounds, salaries for maintenance of plant , including salaries for
196	200		the upkeep of grounds, and repair and replacement of building
197	201		structures which do not add to existing facilities and which do not
198	202		involve changes in roof structures or load -bearing walls and whi ch
199	203		are not classified as a capital expenditure by this section.
200	204		E. The State Board of Education shall adop t and amend
201	205		regulations regarding the classification, definition , and financial
202	206		administration of funds, accounts , and expenditures in accordance
203	207		with the requirements of this section.
204	208		F. A school district shall be authorized to make capital
205	209		expenditures from the general fund to defray the cost of rebuilding
206	210		a school building only if a school building or facility has been
207	211		destroyed by a fire or natura l disaster, such as flood, tornado , or
208	212		other act of God, or by an act of a public enemy of the United
209	213		States or this state and monies received by the district through
210	214		insurance coverage, federal reimbursement, contributions , and
211	215		allocation from the State B oard of Education from the State Public
212	216		Common School Building Equalization Fund are insufficient to rebuild
213	217		the facility. Capital expenditures from the general fund pursuant
214	218		to this subsection shall be limited to an amount necessary to defray
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241	246		the cost of rebuilding the facility which exceeds monies received by
242	247		the school district through insurance, federal re imbursement,
243	248		contributions, and state allocations.
244	249		G. Schools which receive gifts or, donations, or state-
245	250		appropriated monies for the purpose of cap ital expenditures or
246	251		projects shall place such monies in the building fund, as provided
247	252		by Section 1-118 of this title, and not in the general fund. School
248	253		districts which receive gifts, grants, or donations of monies for
249	254		noncapital expenditures may place the monies in the general fund,
250	255		and such monies shall not be required to be used during the year in
251	256		which the money was received but may accumulate from year to year
252	257		and shall not be considered a part of the general fund collections
253	258		when calculating the g eneral fund carryover as provided for in
254	259		subsection G of Section 18 -200.1 of this title.
255	260		H. School districts which receive monies from rental, sale, or
256	261		lease of buildings, impact aid monies, or grants, gifts , or
257	262		donations for capital purposes, whether fro m state, federal, or
258	263		other sources, may place such monies in the building fund authorized
259	264		by Section 1-118 of this title or the general fund authorized by
260	265		this section.
261	266		I. Any construction of a building included as a capital
262	267		expenditure from the general f und of a school district which is
263	268		authorized and has had a contractual agreement concerning such
264	269		construction executed prior to July 1, 1991, may be proceeded with
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291	297		and completed as authorized prior to July 1, 1991, as a capital
292	298		expenditure from such genera l fund.
293	299		J. School districts receiving revenues authorized by Section 9B
294	300		of Article X of the Oklahoma Const itution shall be authorized to
295	301		make capital expenditures from the general revenue fund no greater
296	302		than the amount levied by the incentive millage.
297	303		K. Upon the approval of the State Board of Education, a school
298	304		district shall be authorized to make capital expenditures as defined
299	305		in this section from its general fund if:
300	306		1. A bond issue has been rejected at an election by the school
301	307		district electors voting on that question within the current school
302	308		year, as certified by the secretary of the county election board; or
303	309		2. The school district has voted indebtedness at any time
304	310		within the preceding three (3) school years through the issuance of
305	311		bonds or through approval by voters of issuance of new bonds for
306	312		more than eighty-five percent (85%) of the maximum allowable
307	313		pursuant to the provisions of Section 26 of Article X of the
308	314		Oklahoma Constitution as shown on the school district budget filed
309	315		with the State Board of Equalization for the current school year and
310	316		certifications by the Attorney General prior to Apr il 1 of the
311	317		current school year. The State Board of Education shall establish
312	318		the rules to administer the provisions of this subsection which
313	319		shall include, but not be limited to, specification of a maximum
314	320		amount of general fund monies to be used for capital expenditures,
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341	348		the purposes for which such funds may be expended , and the period of
342	349		time in which such funds shall be encumbered.
343	350		L. Other provisions of this section notwithstanding, a school
344	351		district shall be authorized to make capital expenditures f rom the
345	352		general fund if the total assessed property valuation per average
346	353		daily attendance is less than sixty percent (60%) of the state
347	354		average total assessed property valuation per average daily
348	355		attendance and if, for each year in which general fund revenue is
349	356		used for capital expenditures, the district has voted the five -mill
350	357		building fund levy authorized in Section 10 of Article X of the
351	358		Oklahoma Constitution and has voted indebtedness through the
352	359		issuance of new bonds for at least eighty -five percent (85%) within
353	360		the last three (3) years of the maximum allowable pursuant to the
354	361		provisions of Section 26 of Article X of the Oklahoma Constitution
355	362		as shown on the school district budget filed with the State Board of
356	363		Equalization for the current school year and certifications by the
357	364		Attorney General prior to April 1 of the school year. Provided, the
358	365		maximum amount of general fund revenue used for capital expenditures
359	366		pursuant to this subsection shall not exceed five percent (5%) of
360	367		the total yearly revenue to the general fund. Said Such fund may
361	368		not be used for capital expenditures for more than five (5)
362	369		consecutive years and may only be utilized for rem odeling or
363	370		construction of classroom facilities and such ancillary facilities
364	371		to said such classrooms as may be necessary. Provided, further, the
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391	399		State Superintendent of Public Instruction shall certify in writing,
392	400		prior to the expenditure of the funds fo r which provision is made in
393	401		this subsection, that such expenditures are in compliance with the
394	402		provisions of this subsection.
395	403		SECTION 2. AMENDATORY 70 O.S. 2021, Section 18 -200.1, as
396	404		amended by Section 1, Chapter 280, O.S.L. 2023 (70 O.S. Supp. 2024,
397	405		Section 18-200.1), is amended to read as follows:
398	406		Section 18-200.1. A. Beginning with the 2022 -2023 school year,
399	407		and each school year thereafter, each school district shall have its
400	408		initial allocation of State Aid calculated based o n the state
401	409		dedicated revenues actually collected during the preceding fiscal
402	410		year, the adjusted assessed v aluation of the preceding year, and the
403	411		weighted average daily membership for the school district of the
404	412		preceding school year. Each school district shall submit the
405	413		following data based on the first nine (9) weeks, to be used in the
406	414		calculation of the average daily membership of the school district:
407	415		1. Student enrollment by grade level;
408	416		2. Pupil category counts; and
409	417		3. Transportation supplement da ta.
410	418		On or before December 30, the State Department of Education
411	419		shall determine each school district ’s current year allocation
412	420		pursuant to subsection D of this section. The State Department of
413	421		Education shall complete an audit, using procedures establishe d by
414	422		the Department, of the student enrollment by grade level data, pupil
415	423
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441	450		category counts, and transportation supplement data to be used in
442	451		the State Aid Formula pursuant to subsection D of this section by
443	452		December 1 and by January 15 shall notify each sch ool district of
444	453		the district’s final State Aid allocation for the current school
445	454		year. The January payment of State Aid and each subsequent payment
446	455		for the remainder of the school year shall be based on the final
447	456		State Aid allocation as calculated in subs ection D of this section.
448	457		Except for reductions made due to the assessment of penalties by the
449	458		State Department of Education according to law, the January payment
450	459		of State Aid and each subsequent payment for the remainder of the
451	460		school year shall not decr ease by an amount more than the amount
452	461		that the current chargeable revenue increases for that district.
453	462		B. The State Department of Education shall retain not less than
454	463		one and one-half percent (1 1/2%) of the total funds appropriated
455	464		for financial support of schools, to be used to make midyear
456	465		adjustments in State Aid and which shall be reflected in the final
457	466		allocations. If the amount of appropriated funds, including the one
458	467		and one-half percent (1 1/2%) retained, remaining after January 1 of
459	468		each year is not sufficient to fully fund the final allocations, the
460	469		Department shall recalculate each school district ’s remaining
461	470		allocation pursuant to subsection D of this section using the
462	471		reduced amount of appropriated funds.
463	472		C. On and after July 1, 1997, the a mount of State Aid each
464	473		district shall receive shall be the sum of the Foundation Aid, the
465	474
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491	501		Salary Incentive Aid, and the Transportation Supplement, as adjusted
492	502		pursuant to the provisions of subsection G of this section and
493	503		Section 18-112.2 of this title; p rovided, no district having per
494	504		pupil revenue in excess of three hundred percent (300%) of the
495	505		average per pupil revenue of all districts shall receive any State
496	506		Aid or Supplement in State Aid.
497	507		The July calculation of per pupil revenue shall be determined by
498	508		dividing the district ’s second preceding year ’s total weighted
499	509		average daily membership (ADM) into the district ’s second preceding
500	510		year’s total revenues excluding federal revenue, insurance loss
501	511		payments, reimbursements, recovery of overpayments and ref unds,
502	512		unused reserves, prior expenditures recovered, prior year surpluses,
503	513		and less the amount of any trans fer fees paid in that year.
504	514		The December calculation of per pupil revenue shall be
505	515		determined by dividing the district ’s preceding year’s total
506	516		weighted average daily membership (ADM) into the district ’s
507	517		preceding year’s total revenues excluding federal revenue, insurance
508	518		loss payments, reimbursements, recovery of overpayments and refunds,
509	519		unused reserves, prior expenditures recovered, prior year surpl uses,
510	520		and less the amount of any transfer fees paid in that year.
511	521		D. For the 1997-98 school year, and each school year
512	522		thereafter, Foundation Aid, the Transportation Supplement, and
513	523		Salary Incentive Aid shall be calculated as follows:
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540	551		1. Foundation Aid s hall be determined by subtracting the amount
541	552		of the Foundation Program Income from the cost of the Foundation
542	553		Program and adding to this difference the Transportation Supplement.
543	554		a. The Foundation Program shall be a district ’s higher
544	555		weighted average daily membership based on the first
545	556		nine (9) weeks of the current school year or the
546	557		preceding school year of a school district, as
547	558		determined by the provisions of subsection A of
548	559		Section 18-201.1 of this title and paragraphs 1, 2, 3,
549	560		and 4 of subsection B of S ection 18-201.1 of this
550	561		title, multiplied by the Base Foundation Support
551	562		Level. However, for the portion of weighted
552	563		membership derived from nonresident, transferred
553	564		pupils enrolled in online courses, the Foundation
554	565		Program shall be a district ’s weighted average daily
555	566		membership of the preceding school year or the first
556	567		nine (9) weeks of the current school yea r, whichever
557	568		is greater, as determined by the provisions of
558	569		subsection A of Section 18 -201.1 of this title and
559	570		paragraphs 1, 2, 3, and 4 of subsectio n B of Section
560	571		18-201.1 of this title, multiplied by the Base
561	572		Foundation Support Level .
562	573		b. The Foundation Program Income shall be the sum of the
563	574		following:
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571	583		7
572	584		8
573	585		9
574	586		10
575	587		11
576	588		12
577	589		13
578	590		14
579	591		15
580	592		16
581	593		17
582	594		18
583	595		19
584	596		20
585	597		21
586	598		22
587	599		23
588	600		24
589	601
590	602		(1) The the adjusted assessed valuation of the
591	603		current school year of the school district, minus
592	604		the previous year protested ad valorem tax
593	605		revenues held as prescribed in Section 2884 of
594	606		Title 68 of the Okla homa Statutes, multiplied by
595	607		the mills levied pursuant to subsection (c) of
596	608		Section 9 of Article X of the Oklahoma
597	609		Constitution, if applicable, as ad justed in
598	610		subsection (c) of Section 8A of Article X of the
599	611		Oklahoma Constitution. For purposes of this
600	612		subsection, the “adjusted assessed valuation of
601	613		the current school year ” shall be the adjusted
602	614		assessed valuation on which tax revenues are
603	615		collected during the current school year, and
604	616		(2) Seventy-five seventy-five percent (75%) of the
605	617		amount received by the school district from the
606	618		proceeds of the county levy during the preceding
607	619		fiscal year, as levied pursuant to subsection (b)
608	620		of Section 9 of Article X of the Oklahoma
609	621		Constitution, and
610	622		(3) motor vehicle collections, and
611	623		(4) gross production tax, and
612	624		(5) state apportionment, and
613	625		(6) R.E.A. tax.
614	626
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616	629		2
617	630		3
618	631		4
619	632		5
620	633		6
621	634		7
622	635		8
623	636		9
624	637		10
625	638		11
626	639		12
627	640		13
628	641		14
629	642		15
630	643		16
631	644		17
632	645		18
633	646		19
634	647		20
635	648		21
636	649		22
637	650		23
638	651		24
639	652
640	653		The items listed in divisions (3), (4), (5), and (6)
641	654		of this subparagraph shall consist of the amounts
642	655		actually collected from such sources during the
643	656		preceding fiscal year calculated on a per capita basis
644	657		on the unit provided for by law for the distribution
645	658		of each such revenue.
646	659		2. The Transportation Supplement shall be equal to the average
647	660		daily haul times the per capita allowance times the appropriate
648	661		transportation factor.
649	662		a. The average daily haul shall be the number of children
650	663		in a district who are legally transported and who live
651	664		one and one-half (1 1/2) miles or more from school.
652	665		b. The per capita allowan ce shall be determined using the
653	666		following chart:
654	667		PER CAPITA PER CAPITA
655	668		DENSITY FIGURE ALLOWANCE DENSITY FIGURE ALLOWANCE
656	669		.3000 - .3083 $167.00 .9334 - .9599 $99.00
657	670		.3084 - .3249 $165.00 .9600 - .9866 $97.00
658	671		.3250 - .3416 $163.00 .9867 - 1.1071 $95.00
659	672		.3417 - .3583 $161.00 1.1072 - 1.3214 $92.00
660	673		.3584 - .3749 $158.00 1.3215 - 1.5357 $90.00
661	674		.3750 - .3916 $156.00 1.5358 - 1.7499 $88.00
662	675		.3917 - .4083 $154.00 1.7500 - 1.9642 $86.00
663	676		.4084 - .4249 $152.00 1.9643 - 2.1785 $84.00
664	677
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666	680		2
667	681		3
668	682		4
669	683		5
670	684		6
671	685		7
672	686		8
673	687		9
674	688		10
675	689		11
676	690		12
677	691		13
678	692		14
679	693		15
680	694		16
681	695		17
682	696		18
683	697		19
684	698		20
685	699		21
686	700		22
687	701		23
688	702		24
689	703
690	704		.4250 - .4416 $150.00 2.1786 - 2.3928 $81.00
691	705		.4417 - .4583 $147.00 2.3929 - 2.6249 $79.00
692	706		.4584 - .4749 $145.00 2.6250 - 2.8749 $77.00
693	707		.4750 - .4916 $143.00 2.8750 - 3.1249 $75.00
694	708		.4917 - .5083 $141.00 3.1250 - 3.3749 $73.00
695	709		.5084 - .5249 $139.00 3.3750 - 3.6666 $70.00
696	710		.5250 - .5416 $136.00 3.6667 - 3.9999 $68.00
697	711		.5417 - .5583 $134.00 4.0000 - 4.3333 $66.00
698	712		.5584 - .5749 $132.00 4.3334 - 4.6666 $64.00
699	713		.5750 - .5916 $130.00 4.6667 - 4.9999 $62.00
700	714		.5917 - .6133 $128.00 5.0000 - 5.5000 $59.00
701	715		.6134 - .6399 $125.00 5.5001 - 6.0000 $57.00
702	716		.6400 - .6666 $123.00 6.0001 - 6.5000 $55.00
703	717		.6667 - .6933 $121.00 6.5001 - 7.0000 $53.00
704	718		.6934 - .7199 $119.00 7.0001 - 7.3333 $51.00
705	719		.7200 - .7466 $117.00 7.3334 - 7.6667 $48.00
706	720		.7467 - .7733 $114.00 7.6668 - 8.0000 $46.00
707	721		.7734 - .7999 $112.00 8.0001 - 8.3333 $44.00
708	722		.8000 - .8266 $110.00 8.3334 - 8.6667 $42.00
709	723		.8267 - .8533 $108.00 8.6668 - 9.0000 $40.00
710	724		.8534 - .8799 $106.00 9.0001 - 9.3333 $37.00
711	725		.8800 - .9066 $103.00 9.3334 - 9.6667 $35.00
712	726		.9067 - .9333 $101.00 9.6668 or more $33.00
713	727		c. The formula transportation factor shall be 2.0.
714	728
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716	731		2
717	732		3
718	733		4
719	734		5
720	735		6
721	736		7
722	737		8
723	738		9
724	739		10
725	740		11
726	741		12
727	742		13
728	743		14
729	744		15
730	745		16
731	746		17
732	747		18
733	748		19
734	749		20
735	750		21
736	751		22
737	752		23
738	753		24
739	754
740	755		3. Salary Incentive Aid shall be determined as follows:
741	756		a. Multiply the Incentive Aid guarantee by the district ’s
742	757		higher weighted average daily membership based on the
743	758		first nine (9) weeks of t he current school year or the
744	759		preceding school year of a school district, as
745	760		determined by the provisions of subsection A of
746	761		Section 18-201.1 of this title and paragraphs 1, 2, 3,
747	762		and 4 of subsection B of Section 18 -201.1 of this
748	763		title.
749	764		b. Divide the district’s adjusted assessed valuation of
750	765		the current school year minus the previous year ’s
751	766		protested ad valorem tax revenues held as prescribed
752	767		in Section 2884 of Title 68 of the Oklahoma Statutes,
753	768		by one thousand (1,000) and subtract the quotient from
754	769		the product of subparagraph a of this paragraph. The
755	770		remainder shall not be less than zero (0).
756	771		c. Multiply the number of mills levied for general fund
757	772		purposes above the fifteen (15) mills required to
758	773		support Foundation Aid pursuant to division (1) of
759	774		subparagraph b of paragraph 1 of this subsection, not
760	775		including the county four -mill levy, by the remainder
761	776		of subparagraph b of this paragraph. The product
762	777		shall be the Salary Incentive Aid of the district.
763	778
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765	781		2
766	782		3
767	783		4
768	784		5
769	785		6
770	786		7
771	787		8
772	788		9
773	789		10
774	790		11
775	791		12
776	792		13
777	793		14
778	794		15
779	795		16
780	796		17
781	797		18
782	798		19
783	799		20
784	800		21
785	801		22
786	802		23
787	803		24
788	804
789	805		E. By June 30, 1998, the State Department of Education shall
790	806		develop and the Department and all school districts shall have
791	807		implemented a student identification system which is consistent with
792	808		the provisions of subsections C D and D E of Section 3111 of Title
793	809		74 of the Oklahoma Statutes. The student identific ation system
794	810		shall be used specifically for the purpose of reporting enrollment
795	811		data by school sites and by school districts, the administration of
796	812		the Oklahoma School Testing Program Act, the collection of
797	813		appropriate and necessary data pursuant to the Ok lahoma Educational
798	814		Indicators Program, determining student enrollment, establishing a
799	815		student mobility rate, allocation of the State Aid Formula, and
800	816		midyear adjustments in funding for student growth. This enrollment
801	817		data shall be submitted to the State D epartment of Education in
802	818		accordance with rules promulgated by the State Board of Education.
803	819		Funding for the development, implementation, personnel training, and
804	820		maintenance of the student identification system shall be set out in
805	821		a separate line item in the allocation section of the appropriation
806	822		bill for the State Board of Education for each year.
807	823		F. 1. In the event that ad valorem taxes of a school district
808	824		are determined to be uncollectible because of bankruptcy, clerical
809	825		error, or a successful tax p rotest, and the amount of such taxes
810	826		deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or
811	827		an amount greater than twenty -five percent (25%) of ad valorem taxes
812	828		per tax year, or the valuation of a district is lowered by order of
813	829
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815	832		2
816	833		3
817	834		4
818	835		5
819	836		6
820	837		7
821	838		8
822	839		9
823	840		10
824	841		11
825	842		12
826	843		13
827	844		14
828	845		15
829	846		16
830	847		17
831	848		18
832	849		19
833	850		20
834	851		21
835	852		22
836	853		23
837	854		24
838	855
839	856		the State Board of Equalization, the school district ’s State Aid,
840	857		for the school year that such ad valorem taxes are calculated in the
841	858		State Aid Formula, shall be determined by subtracting the net
842	859		assessed valuation of the property upon which taxes were deemed
843	860		uncollectible from the assessed valuation of the school district and
844	861		the state. Upon request of the local board of education, it shall
845	862		be the duty of the county assessor to certify to the Director of
846	863		Finance of the State Department of Education the net assessed
847	864		valuation of the property upon which taxes were determined
848	865		uncollectible.
849	866		2. In the event that the amount of funds a school district
850	867		receives for reimbursement from the Ad Valorem Reimbursement Fund is
851	868		less than the amount of funds claimed for reimbursement by the
852	869		school district due to insufficiency of funds as provided in Section
853	870		193 of Title 62 of the Oklahom a Statutes, then the school district ’s
854	871		assessed valuation for the school year that such ad valorem
855	872		reimbursement is calculated in the State Aid Formula shall be
856	873		adjusted accordingly.
857	874		G. 1. Notwithstanding the provisions of Section 18 -112.2 of
858	875		this title, a school district shall have its State Aid reduced by an
859	876		amount equal to the amount of carryover in the general fund of the
860	877		district as of June 30 o f the preceding fiscal year, that is in
861	878		excess of the following standards for two (2) consecutive years:
862	879		Total Amount of Amount of
863	880
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865	883		2
866	884		3
867	885		4
868	886		5
869	887		6
870	888		7
871	889		8
872	890		9
873	891		10
874	892		11
875	893		12
876	894		13
877	895		14
878	896		15
879	897		16
880	898		17
881	899		18
882	900		19
883	901		20
884	902		21
885	903		22
886	904		23
887	905		24
888	906
889	907		General Fund Collections, General Fund
890	908		Excluding Previous Year Balance
891	909		Cash Surplus as of June 30 Allowable
892	910		Less than $1,000,000 48%
893	911		$1,000,000 - $2,999,999 42%
894	912		$3,000,000 - $3,999,999 36%
895	913		$4,000,000 - $4,999,999 30%
896	914		$5,000,000 - $5,999,999 24%
897	915		$6,000,000 - $7,999,999 22%
898	916		$8,000,000 - $9,999,999 19%
899	917		$10,000,000 or more 17%
900	918		2. By February 1 the State Department of Education shall send
901	919		by certified mail, with return receipt requested, to each school
902	920		district superintendent, auditor, and regional accreditation officer
903	921		a notice of and calculation sheet reflecting the general fund
904	922		balance penalty to be assessed again st that school district.
905	923		Calculation of the general fund balance penalty shall not include
906	924		federal revenue. Within thirty (30) days of receipt of this written
907	925		notice the school district shall submit to the Department a written
908	926		reply either accepting or p rotesting the penalty to be assessed
909	927		against the district. If protesting, the school district shall
910	928		submit with its reply the reasons for rejecting the calculations and
911	929		documentation supporting those reasons. The Department shall review
912	930		all school district penalty protest documentation and notify each
913	931
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915	934		2
916	935		3
917	936		4
918	937		5
919	938		6
920	939		7
921	940		8
922	941		9
923	942		10
924	943		11
925	944		12
926	945		13
927	946		14
928	947		15
929	948		16
930	949		17
931	950		18
932	951		19
933	952		20
934	953		21
935	954		22
936	955		23
937	956		24
938	957
939	958		district by March 15 of its finding and the final penalty to be
940	959		assessed to each district. General fund balance penalties shall be
941	960		assessed to all school districts by April 1.
942	961		3. Any school district which receives proceeds from a tax
943	962		settlement or a Federal Emergency Management Agency settlement
944	963		during the last two (2) months of the preceding fiscal year shall be
945	964		exempt from the penalties assessed in this subsection, if the
946	965		penalty would occur solely as a r esult of receiving funds from the
947	966		tax settlement.
948	967		4. Any school district which receives an increase in State Aid
949	968		because of a change in Foundation and/or Salary Incentive Aid
950	969		factors during the last two (2) months of the preceding fiscal year
951	970		shall be exempt from the penalties assessed in this subsection, if
952	971		the penalty would occur solely as a result of receiv ing funds from
953	972		the increase in State Aid.
954	973		5. If a school district does not receive Foundation and/or
955	974		Salary Incentive Aid during the preceding fisca l year, the State
956	975		Board of Education may waive the penalty assessed in this subsection
957	976		if the penalty would result in a loss of more than forty percent
958	977		(40%) of the remaining State Aid to be allocated to the school
959	978		district between April 1 and the remainde r of the school year and if
960	979		the Board determines the penalty will cause the school district not
961	980		to meet remaining financial obligations.
962	981
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964	984		2
965	985		3
966	986		4
967	987		5
968	988		6
969	989		7
970	990		8
971	991		9
972	992		10
973	993		11
974	994		12
975	995		13
976	996		14
977	997		15
978	998		16
979	999		17
980	1000		18
981	1001		19
982	1002		20
983	1003		21
984	1004		22
985	1005		23
986	1006		24
987	1007
988	1008		6. Any school district which receives gross production revenue
989	1009		apportionment during the 2002 -2003 school year or in an y subsequent
990	1010		school year that is greater than the gross production revenue
991	1011		apportionment of the preceding school year shall be exempt from the
992	1012		penalty assessed in this subsection, if the penalty would occur
993	1013		solely as a result of the gross production revenu e apportionment, as
994	1014		determined by the State Board of Education.
995	1015		7. Beginning July 1, 2003, school district s that participate in
996	1016		consolidation or annexation pursuant to the provisions of the
997	1017		Oklahoma School Consolidation and Annexation Act shall be exempt
998	1018		from the penalty assessed in this subsection for the school year in
999	1019		which the consolidation or annexation occurs and for the next three
1000	1020		(3) fiscal years.
1001	1021		8. Any school district which receives proceeds from a sales tax
1002	1022		levied by a municipality pursuant to Section 22-159 of Title 11 of
1003	1023		the Oklahoma Statutes or proceeds from a sales tax levied by a
1004	1024		county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes
1005	1025		during the 2003-2004 school year or the 2004 -2005 school year shall
1006	1026		be exempt from the penalti es assessed in this subsection, if the
1007	1027		penalty would occur solely as a result of receiving funds from the
1008	1028		sales tax levy.
1009	1029		9. Any school district which has an amount of carryover in the
1010	1030		general fund of the district in excess of the limits established in
1011	1031		paragraph 1 of this subsection during the fiscal years beginning
1012	1032
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1014	1035		2
1015	1036		3
1016	1037		4
1017	1038		5
1018	1039		6
1019	1040		7
1020	1041		8
1021	1042		9
1022	1043		10
1023	1044		11
1024	1045		12
1025	1046		13
1026	1047		14
1027	1048		15
1028	1049		16
1029	1050		17
1030	1051		18
1031	1052		19
1032	1053		20
1033	1054		21
1034	1055		22
1035	1056		23
1036	1057		24
1037	1058
1038	1059		July 1, 2020, July 1, 2021, July 1, 2022, an d July 1, 2023, shall
1039	1060		not be assessed a general fund balance penalty as provided for in
1040	1061		this subsection.
1041	1062		10. For purposes of calculating the general fund balance
1042	1063		penalty, the terms “carryover” and “general fund balance ” shall not
1043	1064		include federal revenue.
1044	1065		H. In order to provide startup funds for the implementation of
1045	1066		early childhood programs, State Aid may be advanced to school
1046	1067		districts that initiall y start early childhood instruction at a
1047	1068		school site. School districts that desire such advanced funding
1048	1069		shall make application to the State Department of Education no later
1049	1070		than September 15 of each year and advanced funding shall be awarded
1050	1071		to the approved districts no later than October 30. The advanced
1051	1072		funding shall not exceed the per pupil amount of State Aid as
1052	1073		calculated in subsection D of this section per anticipated Head
1053	1074		Start eligible student. The total amount of advanced funding shall
1054	1075		be proportionately reduced from the monthly payments of the
1055	1076		district’s State Aid payments during the last six (6) m onths of the
1056	1077		same fiscal year.
1057	1078		I. H. 1. Beginning July 1, 1996, the Oklahoma Tax Commission,
1058	1079		notwithstanding any provision of law to the contrary, shall report
1059	1080		monthly to the State Department of Education the monthly
1060	1081		apportionment of the following information:
1061	1082		a. the assessed valuation of property,
1062	1083
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1064	1086		2
1065	1087		3
1066	1088		4
1067	1089		5
1068	1090		6
1069	1091		7
1070	1092		8
1071	1093		9
1072	1094		10
1073	1095		11
1074	1096		12
1075	1097		13
1076	1098		14
1077	1099		15
1078	1100		16
1079	1101		17
1080	1102		18
1081	1103		19
1082	1104		20
1083	1105		21
1084	1106		22
1085	1107		23
1086	1108		24
1087	1109
1088	1110		b. motor vehicle collections,
1089	1111		c. R.E.A. tax collected, and
1090	1112		d. gross productions tax collected.
1091	1113		2. Beginning July 1, 1997, the State Auditor and Inspector ’s
1092	1114		Office of the State Auditor and Inspector , notwithstanding any
1093	1115		provision of law to the contrary, shall report monthly to the State
1094	1116		Department of Education the monthly apportionment of the proceeds of
1095	1117		the county levy.
1096	1118		3. Beginning July 1, 1996, the Commissioners of the Land
1097	1119		Office, notwithstanding any provision of law to the contrary, shall
1098	1120		report monthly to the State Department of Education the monthly
1099	1121		apportionment of state apportionment.
1100	1122		4. Beginning July 1, 1997, the county treasurers ’ offices,
1101	1123		notwithstanding any provision of law to the contrary, shall report
1102	1124		monthly to the State Department of Education the ad valorem tax
1103	1125		protest amounts for each county.
1104	1126		5. The information reported by the Tax Commi ssion, the State
1105	1127		Auditor and Inspector ’s Office of the State Auditor and Inspector ,
1106	1128		the county treasurers ’ offices, and the Commissioners of the Land
1107	1129		Office, pursuant to this subsection shall be reported by a school
1108	1130		district on forms developed by the State Department of Education.
1109	1131		SECTION 3. REPEALER 70 O.S. 2021, Section 18 -200.1, as
1110	1132		amended by Section 1, Chapter 488, O.S.L. 2021, is hereby repealed.
1111	1133		SECTION 4. This act shall become effective July 1, 2025.
1112	1134
1113		-	ENGR. S. B. NO. 706 Page 23 1
	1135	+	SENATE FLOOR VERSION - SB706 SFLR Page 23
	1136	+	(Bold face denotes Committee Amendments) 1
1114	1137		2
1115	1138		3
1116	1139		4
1117	1140		5
1118	1141		6
1119	1142		7
1120	1143		8
1121	1144		9
1122	1145		10
1123	1146		11
1124	1147		12
1125	1148		13
1126	1149		14
1127	1150		15
1128	1151		16
1129	1152		17
1130	1153		18
1131	1154		19
1132	1155		20
1133	1156		21
1134	1157		22
1135	1158		23
1136	1159		24
1137	1160
1138	1161		SECTION 5. It being immediately necessary for the preservation
1139	1162		of the public peace, health, or safety, an emergency is hereby
1140	1163		declared to exist, by reason whereof this act shall take effect and
1141	1164		be in full force from and after its passage and approv al.
1142		-	Passed the Senate the 12th day of March, 2025.
1143		-
1144		-
1145		-
1146		-	Presiding Officer of the Senate
1147		-
1148		-
1149		-	Passed the House of Representatives the ____ day of __________,
1150		-	2025.
1151		-
1152		-
1153		-
1154		-	Presiding Officer of the House
1155		-	of Representatives
1156		-
	1165	+	COMMITTEE REPORT BY: COMMITTEE ON EDUCATION
	1166	+	February 11, 2025 - DO PASS