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OASA FY25 Mid-Term Factor Estimate
by CCOSA
OASA works diligently to provide formula funding projections for schools to assist them in preparing their budgets and adjusting when needed.
By Derald Glover, OASA Assistant Executive Director
Facts
■ The state legislature added $26.2 million to last year’s allocation for the state funding formula for FY25.
■ The initial FY25 state aid factor considered the actual collections of the dedicated chargeables for FY24 (all 12 months).
■ Dedicated chargeable totals were down $41,967,132 over last year due to a large drop in gross production and a smaller reduction in REA tax.
■ Schools “off the formula” made up approximately 44% of the gross production collections and about 11% of all
Assumptions
other chargeable collections, resulting in these schools absorbing approximately $28.4 million of the $41.9 million loss in chargeables to the factor.
■ For initial funding, the state held out 2% ($59,285,102) of the total allocation for mid-term growth, as well as approximately $13-$14 million for Lindsey Nicole Henry and new charter schools.
■ FY24 final WADM increased from the first quarter total of 1,198,168 to 1,200,259 due to corrections in the teacher index, according to the Oklahoma State Department of Education (OSDE).
■ Last year’s FY24 initial factor was $4,162, and the final FY24 factor was $4,214.
■ The initial FY25 factor was $4,195.41, which was a decrease of $19 from the end of FY24.
■ Additional allocations outside the state aid formula were:
■ $125 million for Redbud
■ $50 million per year for FY24, FY25, FY26 (approx. $92,000 per school per year) for school security programs mandated under HB 2903 (2023).
■ Last year’s WADM growth was 26,000. We will assume that same growth at this time.
■ Ad valorem growth estimates in all counties sit at approximately $70 million (an approximately 4.3% growth average).
Mid-Term Factor Calculations FY25 (as of October 2024)
For clarity, numbers and calculations are provided below. Please understand that these variables are estimates based upon data from recent years. This is simply a guide to give schools an idea of what the mid-term factor could look like. Updated estimates will be given as new information is received.
Available Formula Dollars:
Initial Allocation (FY23 allocation plus $26,263,520).......... $2,964,255,079
LNH Scholarship (FY24 total) ......................................................... -$13,000,000
Transportation (FY24 final) -$37,165,016
Adjustments, Penalties, New Charters -$1,634,529
Local Revenue (Chargeables) ................................................... +$2,252,436,941
Total Dollars Available ...................................................... $5,164,892,475
WADM Calculations:
Initial FY25 WADM (FY24 final count) = 1,226,259
$5,164,892,475 / 1,226,259 = $4,212 (Mid-Term Factor)
Gain(loss) to end of FY24 factor $4,214 - $4,212 = [$2]
Gain(loss) to FY25 initial state aid factor $4,212 - $4,195 = $17
It should be noted that the largest impacts on the mid-term factor change was adding back in the 2% holdout, the estimated $70 million* growth in ad valorem collections, and the additional 26,000* WADM estimate.
High Year WADM Growth at Mid-Term
Reminder!
This is an early estimate that can change several dollars due to unforeseen enrollment and ad valorem changes. We are using the ad valorem chargeable estimate increase ($70 million) based upon current submitted values on the State Auditor’s website. The OSDE will likely send out allocation notices in late December or early January. ■
Ad Valorem Chargeable Increases Over the Years
$113,399,743
$93,921,874
$39,442,783
$51,377,916
.......... $53,295,030
$60,764,332
............. $55,976,511 16-17 $48,104,385 15-16 ........... $57,676,004 14-15 $45,101,125
* FY12: Charters began 1.331 initial funding adj. at mid-term.
** FY21: Charter schools began to be funded same as traditional.
*** FY22: Virtuals that dropped 15% WADM were funded on current year.
**** FY23: First year that schools lost two year lookback for initial funding. Econ. Dis. weight changed.
