State Aid Formula Overview Senate Education Committee February 28, 2017 Matt Holder Deputy Superintendent of Finance and Federal Programs matt.holder@sde.ok.gov 405-522-3713 1
State Aid Funding Formula History The State Aid Funding Formula is designed to create “ vertical and horizontal equity ” among school districts. The current formula was adopted in the early 1980’s and amended in 1989 and 1996. Laws 1981, H.B.1236, Chapter 347, Sections 13 & 15 2
State Aid Funding Formula History • Vertical Equity – Cost to Educate Students Average Daily Membership (ADM) Weights: Grade, Pupil Categories, and District • Horizontal Equity – Wealth of the District Local and County Revenue State Dedicated Revenue State Appropriated Revenue Provide funding equity across districts. 3
What makes up the FY17 Formula? $1,870,703,624 • $1,038,594,450 from the General Revenue (GR) Fund $47,885,560 more than in FY 16 • $696,954,056 from the Education Reform Revolving Fund (1017) $31,881,504 less than in FY 16 • $41,168,478 from the Common Education Technology Fund $6,203,821 less than in FY 16 (Fund collected approx. $31m in FY 16) • $4,723,795 from the Mineral Leasing Fund $678,715 less than in FY 16 • $23,397,757 from the Oklahoma Lottery Trust Fund $6,018,160 less than in FY 16 • $65,865,088 from SB 1584 (Rainy Day Fund) $9,134,912 less than in FY 16 4
State Aid Funding Formula State Aid formula calculation sheet consists of three (3) parts. 1. Foundation Aid: a. Weighted Average Daily Membership (WADM) times Foundation Aid Factor b. Less Chargeables (Local (15+), County, & State Dedicated) 2. Transportation: a. Average Daily Haul Times Per Capita b. Times Transp. Factor 3. Salary Incentive Aid: a. WADM times Salary Incentive Aid Factor b. Less Adjusted Valuation c. Times Incentive Mills (20) Basic State Aid Allocation (Sum of 1 + 2 + 3) 70 O.S. §18-200.1 5
Seven Sources of Formula Revenue LOCAL AND COUNTY REVENUES: 1. AD VALOREM TAXES (used in Foundation and Salary Incentive Aid) 2. COUNTY 4-MILL STATE - DEDICATED REVENUES: 3. GROSS PRODUCTION TAX 4. MOTOR VEHICLE COLLECTIONS 5. RURAL ELECTRIFICATION ASSOCIATION (REA) TAX 6. STATE SCHOOL LAND EARNINGS STATE APPROPRIATED: 7. FINANCIAL SUPPORT OF SCHOOLS (FORMULA FUNDING) 6
7 (Please see enlarged version on p. 46)
Chargeables (used to calculate Foundation Aid*) LOCAL AND COUNTY REVENUES: 1. AD VALOREM TAXES (used in Foundation and Salary Incentive Aid) 2. COUNTY 4-MILL STATE - DEDICATED REVENUES: 3. GROSS PRODUCTION TAX 4. MOTOR VEHICLE COLLECTIONS 5. RURAL ELECTRIFICATION ASSOCIATION (REA) TAX 6. STATE SCHOOL LAND EARNINGS *Foundation aid factor currently calculated at $1,587.00 8
District WADM Components • Average Daily Membership with Grade Level Weights • Special Categories (Special Education, Economically Disadvantage, Gifted, Bilingual) • Teacher Index • District Calculations (Greater Weight of Small School or Isolation) 70 O.S. §18-201.1 9
Data Elements for Weighted ADM ATTENDANCE AUDITS (FQSR & ASR) SPECIAL ED. COUNTS (OK EdPlan) BILINGUAL COUNTS (Consolidated Rpt.) ECONOMICALLY DISADVANTAGED (Free / Reduced ELIGIBLE Counts) GIFTED COUNTS (Consolidated Rpt.) 1 70 O.S. §18-201.1 0
Grade Weights PK 3 (3 yr. old w/ IEP) 1.2 Early Child. / PK (Half Day) 0.7 Early Child. / PK (Full Day) 1.3 Kindergarten (Half Day) 1.3 Kindergarten (Full Day) 1.5 1st - 2nd grade 1.351 3rd grade 1.051 4th - 6th grade 1.0 7th - 12th grade 1.2 Out-of-Home Placement 1.5 1 70 O.S. §18-201.1 1
Weighted Pupil Categories SPECIAL EDUCATION WEIGHTS: LD 0.40 ID (formerly MR) 1.30 HI (D + HH) 2.90 ED 2.50 VI 3.80 PH (OI + OHI) 1.20 MD (MH) 2.40 D/B 3.80 SI 0.05 TBI 2.40 Autism 2.40 OTHER CATEGORIES: Gifted 0.34 Economically 0.25 Bilingual 0.25 Disadvantaged 1 70 O.S. §18-201.1 2
Weighted Pupil Categories Hearing Impairment (HI) 2.90 Speech or Language Impairment (SI) 0.05 Vision Impairment (VI) 3.80 Emotional Disturbance (ED) 2.50 Orthopedically Impairment (OI) 1.20 Other Health Impairment (OHI) 1.20 Specific Learning Disabilities (LD) 0.40 Deaf-Blind (D/B) 3.80 Multiple Disabilities (MD) 2.40 Autism 2.40 Traumatic Brain Injury (TBI) 2.40 Intellectually Disabled (ID) 1.30 Spec. Educ. Summer Program 1.20 Gifted 0.34 Bilingual 0.25 Economically Disadvantaged 0.25 1 70 O.S. §18-201.1 3
Student Weights Example First Grade Student 1.351 Learning Disability 0.40 Economically Disadvantaged 0.25 Total weight for this student 2.001 1 4
Teacher Index Number Of Teachers Level Of Degree Index Is Determined By Comparing Prior Year Total To The State Average 1 70 O.S. §18-201.1 5
Teacher Index 1 6
Teacher Index Degree Index ÷ Number Of Teachers 45.9 ÷ 39 = Weighted Average District Teacher 1.1769 MINUS Weighted Average State Teacher 1.0969 = School District Teacher Index 0.0800 X 0.7 = 0.0560 (Grade Weight ADM + Econ. Disadv.) X (487.51 + 39.25) = 29.50 Weighted Teacher Index 1 7
District Weights SMALL SCHOOL WEIGHT Small school district calculation shall apply only to school districts whose average daily membership (ADM) is less than 529 If ADM is less than 529, calculate the small school weight 1 70 O.S. §18-201.1 8
District Weights SPARSITY/ ISOLATION WEIGHT If district area in square miles is greater than the state average area in square miles (136): compute areal density If district areal density is less than 2.47, calculate the district sparsity isolation weight 1 70 O.S. §18-201.1 9
District High Year WADM Comparison 2014-15 2015-16 2016-17 WEIGHTED ADM First Nine Weeks Average Daily Membership 90.33 101.30 111.64 With Grade Weights 10.56 14.19 18.33 Special Ed. Weights 1.50 4.40 2.45 Summer Program 0 0 0 Gifted 2.54 2.72 3.70 Bilingual 25.75 20.25 22.25 Teacher Index 6.88 3.08 2.98 Economically Disadv. 25.00 20.00 21.75 Small School 14.98 16.38 18.45 OR Isolation 0 0 0 TOTAL WEIGHTED ADM: 177.54 182.32 201.55 2 0
District High Year WADM FY2015-16 FY2016-17 FY2014-15 177.54 182.32 201.55 TOTAL WADM: X X X (TIMES) ** $ 3,050.60 $ 3,050.60 FORMULA FACTORS * TOTAL $$ EQUALS: $ 556,185 $ 614,848 JULY JANUARY FUNDING* FUNDING* * Chargeables Not Considered **Assuming no midyear factor change 2 1
District High Year WADM FY2015-16 FY2016-17 FY2014-15 TOTAL WADM: 182.32 179.42 175.55 X (TIMES) X FORMULA FACTORS * $ 3,050.60 ** TOTAL $$ EQUALS: $ 556,185 $ 556,185 JULY JANUARY FUNDING* FUNDING* * Chargeables Not Considered **Assuming no midyear factor change 2 2
Transportation Figured by using: • Transportation Factor -1.39 the same since 1983 • Average Daily Haul -Most Recent Data • Area Served -Total Square Miles 2 70 O.S. §18-200.1 3
Salary Incentive Aid WADM times Salary Incentive Aid Factor (currently calculated at $73.18) Less Adjusted Valuation Times Incentive Mills (20) 2 4
Virtual Charter Schools State Aid Funding Formula 2 5
WADM for All New Charters 70 §3-142(B)(1): The weighted average daily membership for the first year of operation of a charter school shall be determined initially by multiplying the actual enrollment of students as of August 1 by 1.333. The charter school shall receive revenue equal to that which would be generated by the estimated weighted average daily membership calculated pursuant to this paragraph. At midyear , the allocation for the charter school shall be adjusted using the first quarter weighted average daily membership for the charter school calculated pursuant to subsection A of this section. 2 6
Initial WADM for Virtual Charters 70 §3-142(B)(2): For the purpose of calculating weighted average daily membership pursuant to Section 18-201.1 of this title and State Aid pursuant to Section 18-200.1 of this title, the weighted average daily membership for the first year of operation and each year thereafter of a full-time virtual charter school shall be determined by multiplying the actual enrollment of students as of August 1 by 1.333. The full-time virtual charter school shall receive revenue equal to that which would be generated by the estimated weighted average daily membership calculated pursuant to this paragraph. At midyear , the allocation for the full-time virtual charter school shall be adjusted using the first quarter weighted average daily membership for the virtual charter school calculated pursuant to subsection A of this section. 2 7
Revenue Comparison (traditional vs charter) Revenue Source District A Charter A Difference County 4-Mill $75,000 $0 ($75,000) School Land $25,000 $0 ($25,000) Gross Production $50,000 $0 ($50,000) State Aid $1,050,800 $1,575,800 $525,000 Foundation Aid (15 Mills) $150,000 $0 ($150,000) Incentive Aid (20 Mills) $200,000 $0 ($200,000) Motor Vehicle $25,000 $0 ($25,000) REA Tax $0 $0 $0 Total $1,575,800 $1,575,800 $0 2 8
Virtual Charter Allocations Amount in Millions 70 $59.1 60 50 $44.5 ABLE 40 INSIGHT $35.3 CONNECTIONS 30 OK VIRTUAL $24.3 $19.8 EPIC 20 10 0 FY2013 FY2014 FY2015 FY2016 FY2017 2 9
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