Opinion ID: 1384601
Heading Depth: 2
Heading Rank: 2

Heading: State-Generated Revenue

Text: The other primary source of revenue for public schools is the State itself. State sources of revenue include various taxes designated for school purposes, proceeds from the permanent school fund and monies allocated for specific programs or expenditures. The most important source, State Aid, [9] was designed to allow the State and the local school districts to work together to provide full educational opportunities for every child in Oklahoma. The State Aid program consists of two parts, Foundation Program Aid and Incentive Aid. [10] The Foundation Program consists of a certain amount of money per pupil which the Legislature has determined to be necessary to operate a minimum program within a school district. From this amount are subtracted various sums, known as Foundation Program Income, which are received by a district from certain sources. One of these items is the net assessed valuation of the property within the district during the preceding year multiplied by fifteen mills. In theory, Foundation Program Income reflects a district's wealth and ability to support itself. A transportation supplement is added to the difference between the Foundation Program and Foundation Program Income. The total of these is Foundation Aid. In addition to Foundation Aid, a district also may receive certain funds known as Incentive Aid. [11] The Incentive Aid formula has a two-fold purpose: (1) to reflect the district's property valuation per ADA in relation to the average valuation per ADA within the State and (2) to recognize the effort, in the form of mills exceeding fifteen, which the district makes by way of levies to finance its schools. The formula includes minimum and maximum amounts which the school districts may receive. As a result, districts which otherwise would not qualify for Incentive Aid, or would qualify for only a smaller amount, receive at least the minimum amount; and districts whose need is greater may not receive more than the maximum amount. All districts receive some Incentive Aid, with the poorest districts receiving only about twice as much as the richest. In addition to the monies distributed through Foundation and Incentive Aid, a large portion of the funds appropriated for education are allocated to flat grants to all school districts. These grants have been awarded on a purely categorical basis, without consideration of the district's financial ability. Some grants have been distributed through the State Aid program for special education, vocational education and transportation. The largest allocation of this type has been for school personnel salary increases. The Legislature has increased these grants over the years; and so the percentage of the total education funds which are allocated to the State Aid program has become smaller. In recent years state resources have begun to constitute a greater percentage of total school revenues. As recently as 1968-69, local sources accounted for more than half the revenues received by the districts. After that time period, this figure began to decline and the percentage provided by the State began to increase. In 1978-79 the districts received 53% of their total revenues from the State and only 36% from local sources.