OASA Early FY24 Mid-Term Factor Estimate

To help our members as they monitor their budgets throughout the school year, OASA is providing a very early estimate for the Fiscal Year 2024 mid-term factor. Note! This estimate requires OASA to project Weighted Average Daily Membership (WADM) growth, the increase in ad valorem chargeables, and the final month of County 4 Mill collections.

Facts

■ For this year’s funding formula, the state added slightly over $500 million to last year’s allocation. This increase was intended to cover the cost of the mandated teacher pay raises. For many schools, money was left over for support raises and operational costs. Schools experiencing a loss in students or increased chargeables may have received less state aid than they anticipated.

■ The state held out approximately 1.5% (instead of the 2% held out last year) of the total allocation for mid-term growth. Money was also held out for the Lindsey Nicole Henry scholarship program, new charter schools, and raises for districts off the formula.

■ For FY24, schools were funded initially on the FY23 final WADM calculated in June plus the addition of weights for economically disadvantaged students (.25 to .3) and small schools (529 WADM to 750 WADM). The mid-term factor will consider the highest WADM of either the initial WADM or the first quarter WADM.

■ The Transportation Factor increased from 1.39 to 2.00 and is not included in the state aid factor.

■ The initial FY24 state aid factor included actual collections of the dedicated chargeables for FY23.

■ Additional funds allocated to schools that did not run through the formula include:

■ $125 million for Redbud School Grants.

■ $50 million per year for three years (approx. $92,000 per district per year) for school security expenses.

Assumptions and Estimated Values for Mid-Term

■ Last year was the first year the mid-term factor only considered the initial WADM compared to the first quarter WADM. Last year’s growth in WADM was approximately 21,000. With that single year as a guide, this estimate will use a WADM growth of 20,000.

■ At the time of this calculation, 76 of 77 counties had reported their valuations on the State Auditor website. Using those values, OASA estimates the ad valorem chargeable growth to be just over $90 million.

■ The final month of County 4 Mill collections is the last variable that affects the state mid-term factor. Over the years, it has resulted in a growth of between $2 million and $10 million. OASA is using an estimate of $6 million for this calculation.

Guidance

For clarity, the above numbers and calculations are provided below. This guide, with some variables estimated, is intended to give schools an idea of the mid-term factor using information available now. Updated estimates will be provided as new information is received. The Oklahoma State Department of Education will likely send out allocation notices in late December or early January.

FY24 Mid-Term Formula Estimates & Calculations

(After money was set aside for growth, LNH, raises for schools outside of the formula, new charters, and penalties/adjustments)

(After $119,778,435 is deducted for the 90 districts off the formula)

Valuation Increase Estimate .............................................................................................. + $90,009,022

Plus County 4 Mill Final Month Collections Estimate ........................................................... + $6,000,000

Total ................................................................................................................................................. $5,053,983,545

WADM Calculations:

Projected FY24 Mid-Year WADM (20,000 increase based upon FY23) 1,200,846 $5,053,983,545 / 1,200,846 = $4,208.69 (Estimate)

Gain to factor: ................................................................................. $4,209 – $4,162 = $47/WADM increase

Reminder! This is a very early estimate. Many variables can change this estimate by several dollars. We are using the ad valorem chargeable estimate ($90 million) based upon current submitted values on the State Auditor’s website.