1. Presented by Steven Crawford June 13/15, 2017 OSAC Conference
Financial Update FY2018
Presented by
Steven Crawford
June 13/15, 2017
OSAC Conference

2. State Budget and Funding Information
All data provided by:
Oklahoma Legislative Staff
Oklahoma Policy Institute
Oklahoma State Department of Education
Oklahoma Tax Commission
Commissioners of the Land Office

3. Mandatory 0.7% Cut Due to General Revenue Failure
Purpose GR Reduction Adjusted % Formula $1,038,594,450 $7,270,161 $1,031,324, % Activities $91,956,442 $643,695 $91,312, % FBA $442,030,522 $3,094,213 $438,936, % Math $1,000,000 $7,000 $993, % SDE $15,831,344 $110,819 $15,720, % Total GR Reduction $11,125,889

4. Education Reform Revolving Fund 1017
Purpose GR Reduction Adjusted % Formula $696,954,056 $39,151,255 $657,802, %

5. Total Impact to funding formula:
Overall Impact
Total Reduction: $50,277,144.31
Total Impact to funding formula:
$46,421,416.15
General Revenue: $7,270,161.15
1017: $39,151,255.00

6. Cash Shortfalls
In the June payment, the formula will be adjusted to reflect the actual cash shortage – once it is known.

7. Current Financial Status
February 23rd Allocation changes
WADM $3,008.60
Reduction of $42.00/WADM
March-May Combined Payment Reduction
$43.1 million cash shortfall
88.62% of payment received instead of 91%

8. Changes to Public School Activities
Total Reduction: $643,695.09
NBCT: $593, (All payments have been made)
Oklahoma Technical Assistance Center: $50,000

9. Ad Valorem Reimbursement for FY 2017
SB 842 provides an appropriation to the State Board of Education from the State Rainy Day fund for FY 2017 in the amount of $60,185,

10. FY17 Ad Valorem Reimbursement
Expect the majority of the ad valorem reimbursement payments to be made to school districts before June 30.
SB 842 appropriated $60,185,000 from Rainy Day Fund, effective June 15.
Approximately $3,000,000 is currently in the account.
SB 860 appropriated $9,815,000 and was signed by the Governor June 1.

11. FY 2018 Budget
SB 860 provides the general appropriation to the various agencies of state government.
SB 852 provides an appropriation to Common Education from the State Rainy Day Fund for FY 2018 in the amount of $ 33,000,
HB 2360 provides an appropriation to Common Education from the State Rainy Day Fund for FY 2018 in the amount of $18,000,
This is the only withdrawal from Rainy Day Fund for FY 2017 budget

12. SB 842-GA Bill for FY 2018 “Financial Support of Schools”:
General Revenue $1,036,429,437.00
1017 Fund $ ,407,138.00
Tech. Revolving Fund $ ,372,299.00
Mineral Leasing (2018) $ ,275,000.00
Mineral Leasing (2016) $ ,624,038.00
Lottery (2018) $ ,939,910.00
Lottery (2016) $ ,429,844.00
School Consolidation Fund (260) $ ,
SB 852 (RDF) $ ,000,000.00
HB 2360 (RDF) $ ,000,000.00
Total Formula $ for FY $1,870,977,666.00

13. SB 1616 – GA Bill for FY 2017 “Financial Support of Schools”:
General Revenue: $ 1,038,594,450.00
SB 1584 (RDF): $ ,865,088.00
1017 Fund: $ ,954,056.00
Tech. Revolving Fund: $ ,168,478.00
Mineral Leasing (2017): $ ,610,000.00
Mineral Lease (2015): $ ,113,795.00
Lottery (2017): $ ,116,071.00
Lottery (2015): $ ,281,686.00
TOTAL Formula FY17 $1,870,703,624.00

14. FY 2018 vs 2017
GR $1,036,429,437 $1,038,594,450 -$ 2,165,013
1017 $ 695,407,138 $ 696,954,056 -$ 1,546,918
Tech $ ,372,299 $ ,168,478 +$ 6,203,821
ML 18 $ ,275,000 $ ,610,000 +$ ,000
ML 16 $ ,624,038 $ ,113,795 +$ 1,510,243
Lot 18 $ ,939,910 $ ,116,071 +$ 4,823,839
Lot 16 $ ,429,844 $ ,281,686 +$ 4,148,158
RDF $ ,000,000 $ ,865,088 -$14,865,000
Consol $ ,500, $ 2,500,000
Total $1,870,977,666 $1,870,703,624 +$ ,042

15. History from FY 12 to FY 18 Textbook Allocation FY 12: $ 33,000,000.00

16. The SDE Activities Budget

17. History from FY 12 to FY 18 FY 12: $ 401,224,655.00
Lump sum given to SBE without line items
FY 13: $ 7,925,974.00
FY 14: $ 507,772,781.00
FY 15: $ 5,400,000.00
Lump sum given to SBE for school reward grants
FY 16: $ 130,178, $ 116,373, (w/ rev. failure)
FY 17: $ 91,956,442.00
Lump sum given to SBE without Line Items
FY 18; $ 92,074,033.00

18. Math Intervention Partnership
Section 10 of SB 1616 makes an appropriation of $1,000, for the “support of a partnership for math intervention for grades 4-8.”

19. FY 2018 Activities Account
$92,074, is appropriated to the Oklahoma State Board of Education to be used at the discretion of the State Board to fund various reforms, academic programs, and other services. This is an $882, cut from the initial FY 17 levels.

20. FY 17: Activities Account
Program Name
FY 17 Allocation
Percentage Cut vs. FY 16
Alt. Ed.
$ ,472,400.00
30.91%
Sooner Start
$ 14,400,341.00
0.00%
School lunch
$ ,500,000.00
29.35%
OTRS
$ 32,712,137.00
National Board
$ ,500,000.00
41.04%
Testing / ACE
$ 11,064,293.00
11.39%
Subtotal for Required Programs
$ 76,649,171.00
Total Available for FY 17 Activities Account
$ 91,556,442.00
23.84%

21. FY 17: Activities Account
Program Name
FY 17 Allocation
Percentage Cut vs. FY 16
RSA
$ ,507,271.00
30.57%
Student Information System
$ ,053.00
61.81%
AP, AVID, NMSI
$ ,100,000.00
65.02%
Early Childhood
$ ,000,000.00
23.72%
TLE
$ ,947.00
90.41%
Standards Implementation
$ ,000.00
0.00%
Alt. Ed. (OTAC)
$ ,000.00
49.94%
Great Expectations
$ ,000.00
73.11%
Teach for America
$ ,000.00
89.99%
Street School
25.00%
Arts Institute
$ ,000.00
71.39%
Subtotal for Non-mandated Programs
$ 15,707,271.00

22. FBA Appropriation in FY2018
Certified Personnel:
$ 299,320,340.00
Support Personnel:
$ 163,375,627.00
Total FY 18 FBA Appropriation: $ 462,695,967.00, an increase of $20,665, over FY 17 levels.
FY 2016 FBA Allocations
Certified Personnel:
$ 267,559,579.00
Support Personnel:
$ 148,463,986.00
Total FBA Appropriation: $ 416,023,565.00

23. Flexible Benefit Allowance Allocation
(In Millions $)
This slide simply shows the trend line of how health insurance has increased since $151.4 million increase over the last seven years.

24. FY2018: Other Common Education Appropriations
SDE Agency Operations: $ 15,681,105.00
Consolidation Assistance Fund: $ 2,882, (Lottery 2018)
Consolidation Assistance Fund: $ , (Lottery 2016)
OTRS Dedicated Revenue Fund: $ 2,882, (Lottery 2018)
OTRS Dedicated Revenue Fund: $ , (Lottery 2016)
Total: $ 22,652,763.00
Difference FY18 – FY17: (+) $ 1,621,917.00
FY 2016 Additional Appropriations
SDE Agency Operations: $ 22,399,295.00
Consolidation Assistance Fund: $ 2,717, (lottery 2016)
Consolidation Assistance Fund: $ , (lottery 2014)
OTRS Dedicated Revenue Fund: $ 2,717, (lottery 2016)
OTRS Dedicated Revenue Fund: $ , (lottery 2014)
Total Additional Appropriations: $ 28,936,165.00

25. Historical Review

26. Total Appropriations Comparison
FY 2012: $ 2,278,158,382.00
FY 2013: $ 2,333,604,082.00
FY 2014: $ 2,407,604,102.00
FY 2015: $ 2,479,424,061.00
FY 2016: $ 2,484,873,132.00
FY 2017: $ 2,426,721,434.00
FY 2018: $ 2,448,399,829.00
Difference FY2018 – FY2017: (+) $ 21,678,395.00

27. State Aid Factors / Per Pupil Funding
Fiscal Year
Initial Notice
Final Notice
Growth / Decline Within Fiscal Year
FY 2009
$ 3,221.40
$ 3,275.60
+ $ 54.20
FY 2010
$ 3,291.60
$ 3,206.62
- $ 84.98
FY 2011
$ 3,110.38
$ 3,111.58
+ $
FY 2012
$ 3,041.40
$ 3,040.20
- $
FY 2013
$ 3,039.20
$ 3,035.00
- $
FY 2014
$ 3,038.60
$ 3,032.00
- $
FY 2015
$ 3,077.20
$ 3,075.80
- $
FY 2016
FY 2017
$ 3,079.60
$ 3,050.60
$ 3,049.80
$ 3,008.60*
- $ 29.80
- $ 41.40
* As of SDE Tentative Final Allocation Notice dated 05/05/2017

28. Loss Per Weighted Student State Appropriated Dollars
FISCAL YEAR
FY 2009 FINAL ALLOCATION NOTICE
TENTATIVE FINAL ALLOCATION NOTICE FOR FISCAL YEAR
DIFFERENCE COMPARED TO FY 2009
FY 2009
$ 3,221.40
$ 3,275.60
N/A
FY 2010
$ 3,206.62
- $
FY 2011
$ 3,111.58
- $
FY 2012
$ 3,040.20
- $
FY 2013
$ 3,035.00
- $
FY 2014
$ 3,032.00
- $
FY 2015
$ 3,075.80
- $
FY 2016
FY 2017
$ 3,050.60
$ 3,049.80*
$ 3,008.60
- $
- $
* As of SDE Tentative Final Allocation Notice dated 05/05/2017

29. Weighted Student Numbers
Fiscal Year
Initial Notice
Final Notice
Growth
FY 2010
996,510.32
1,018,540.10
22,029.78
FY 2011
1,013,727.86
1,036,456.96
22,729.10
FY 2012
1,030,947.83
1,053,078.80
22,130.97
FY 2013
1,041,986.72
1,071,200.32
29,213.60
FY 2014
1,057,955.47
1,088,759.91
30,804.44
FY 2015
1,075,133.91
1,105,279.04
30,145.13
FY 2016
FY 2017
1,088,632.55
1,099,516.99
1,123,016.13
1,138,464.44
34,383.58
38,947.45
Average WADM Growth Prior Four Years
33,570.15
* As of SDE Tentative Final Allocation Notice dated 05/05/2017

30. Weighted Student Increase
Comparing Initial FY2009 to Final FY2017*, Oklahoma’s enrollment has increased by 141, weighted students.
* As of SDE Tentative Final Allocation Notice dated 05/05/2017

31. Per Pupil Funding Reduction
Comparing Final Allocation Notice of FY2009 to Tentative Final Allocation Notice of FY2017* the amount of state aid available per student is considerably less!
Schools now have $ less per weighted student.
* As of SDE Tentative Final Allocation Notice dated 05/05/2017

32. Returning to Pre-Recession Per Pupil Formula Funding Levels
Enrollment Increase Initial ‘09 to April ’17 = 141,954.12
Current Per Pupil Funding = $ 3,008.60
Restore Per Pupil Funding = $
1,141, X $3, = $3,740,584,915.47
1,141, X $3, = $3,435,683,165.43
Difference $ 304,901,750.04
Numbers as of 05/05/2017

33. Difference of FY2009 – FY2017: (-) $ 166,022,334.00
State Appropriations from the Legislature to the Financial Support of Public Schools
2018 $ 1,870,977,666.00
2017 $ 1,870,703,624.00
After GR & 1017 Failure $ 1,824,282,208 (as of 05/05/2017)
2016 $ 1,876,735,176.00
After GR Failure $ 1,846,436,409 (as of 04/08/2016)
2015 $ 1,877,570,777.00
2014 $ 1,837,570,779.00
2013 $ 1,816,091,355.00
2012 $ 1,814,403,898.00
2011 $ 1,894,000,000.00
2010 $ 1,924,000,000.00
2009 $ 2,037,000,000.00
Difference of FY2009 – FY2017: (-) $ 166,022,334.00

34. The Cumulative Effect
The Oklahoma Legislature has annualized funding cuts to the state aid funding formula.
For the period of FY 2010 through FY 2017, common education has sustained $ 1,735,372, in reduced State Aid!
Annualized Cuts as compared to FY 09 state appropriations to formula:
FY 10: 113,000,000.00
FY 11: 143,000,000.00
FY 12: 222,596,102.00
FY 13: 220,908,645.00
FY 14: 199,429,221.00
FY 15: 159,429,223.00
FY 16: 160,264,824.00
FY 17: 166,296,376.00 
Cumulative Effect: 1,218,628,015.00
Total state aid: 13,040,371, (10-16)
Potential state aid: 14,259,000, (10-16 at 09 levels)
Difference: 1,218,628,015.00

35. Looking Ahead for Initial FY2018

36. Average Decrease in Statewide WADM Prior Year Final Allocation vs
Average Decrease in Statewide WADM Prior Year Final Allocation vs. Current Year Initial Allocation
Fiscal Year
Final Notice
Initial Notice
Difference
FY 2012
1,053,066.77
FY 2013
1,041,986.72
(11,080.05)
1,071,320.35
FY 2014
1,057,955.47
(13,364.88)
1,088,587.43
FY 2015
1,075,133.91
(13,453.52)
1,105,279.04
FY 2016
1,088,728.88
(16,550.16)
FY 2017
1,123,016.13
1,138,464.44
FY 2018
1,099,516.99
1,115, est
(23,499.14)
(23,000.00) est
Average Decline
From Final Notice to Initial Notice
(17,973.54)
* As of SDE Tentative Final Allocation Notice dated 05/05/2017

37. Chargeable Revenues Available for Initial Allocation July 2017
Chargeable Revenue Stream
Tentative Allocation Notice FY 2018
Final Allocation Notice FY 2017
Difference
Gross Production
$ ,879,495
$ ,773,680
$ ,105,815
Rural Electric
$ ,899,601
$ ,598,762
$ ,839
Motor Vehicle
$ ,630,834
$ ,872,024
$ (13,241,190)
School Land
$ ,621,830
$ ,171,961
$ ,449,869
Ad Valorem
$ 1,080,098,100
$ ???
County Four Mill
$ ,525,698
$ ,930,749
$ ,594,949
TOTAL
$ 1,621,655,558
$ 1,625,445,276
$ (3,789,718)

38. Initial FY2017 Factor
I believe that the FY2018 initial funding factor will be approximately $3, per WADM.
This represents a $42.00 increase from your current funding factor of $3, per WADM.

39. Midterm FY17
If current revenue and enrollment trends remain steady, and if the state budget does not fail, we believe that the factors at midterm could be approximately $ 3, per WADM.

40. I believe the FY2018 Midterm Factor will be approximately $3,050
I believe the FY2018 Midterm Factor will be approximately $3, per WADM.

41. Steven Crawford Crawford Consulting, LLC