§ 70-18-124 — Withholding certain expenditures from Foundation and

Salary Incentive Aid. A. Any school district with an average daily attendance (ADA) of more than one thousand five hundred (1,500) students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than five percent (5%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the five percent (5%) withheld the following year from the Foundation and Salary Incentive Aid for the school district. B. Any school district with an average daily attendance (ADA) of more than five hundred (500) students but not more than one thousand five hundred (1,500) students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than seven percent (7%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the seven percent (7%) withheld the following year from the Foundation and Salary Incentive Aid for the school district. C. Any school district with an average daily attendance (ADA) of five hundred (500) or fewer students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than eight percent (8%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the eight percent (8%) withheld the following year from the Foundation and Salary Incentive Aid for the school district. D. The provisions of this section shall apply to school districts, charter schools, and virtual charter schools which contract with an educational management organization as defined in Section 5-200 of this title. The expenditure limits shall not exceed the percentages prescribed in subsections A, B, and C of this section, and the calculation of administrative services for schools which contract with an educational management organization shall be the combined amount of administrative services expended by the school and the educational management organization. E. For purposes of this section, “administrative services” means costs associated with: 1. Staff for the board of education; 2. The secretary/clerk for the board of education; 3. Staff relations; 4. Negotiations staff; 5. Immediate staff of the superintendent, any elementary superintendent, or any assistant superintendent; 6. Any superintendent, elementary superintendent, or assistant superintendent; 7. Any employee of a school district employed as a director, coordinator, supervisor, or who has responsibility for administrative functions of a school district; 8. Any consultant hired by the school district; and 9. Administrative services paid to an educational management organization as defined in Section 5-200 of this title. F. If an employee of a school district is employed in a position where part of the employee’s time is spent as an administrator and part of the time is spent in nonadministrative functions, the percentage of time spent as an administrator shall be included as administrative services. A superintendent who spends part of the time performing exempted nonadministrative services such as teaching in the classroom, serving as a principal, counselor, or library media specialist, can code up to forty percent (40%) of their salary to other nonadministrative functions. The total amount of time a superintendent of a school district spends performing services for a school district shall be included as administrative services even if part of the time the superintendent is performing nonexempted nonadministrative service functions. The total amount received by a superintendent from the school district as salary, for the performance of administrative and nonexempted nonadministrative services, shall be recorded under the code for superintendent salary as provided for in the Oklahoma Cost Accounting System. G. Each school site within a school district shall take steps to ensure that the administrative costs for the school comply with the expenditure limits established for school districts in this section. H. Funds withheld pursuant to the provisions of this section shall be distributed through the State Aid formula to the districts not so penalized. I. For the 2003-04 and 2004-05 school year, school districts shall report to the State Department of Education the costs associated with administrative services for the school district as defined in subsection E of this section.

Legislative History

Added by Laws 1985, c. 329, § 26, emerg. eff. July 30, 1985. Amended by Laws 1987, c. 204, § 115, operative July 1, 1987; Laws 1999, c. 320, § 32, eff. July 1, 1999; Laws 2003, c. 434, § 16; Laws 2011, c. 86, § 1, eff. July 1, 2011; Laws 2011, c. 155, § 1; Laws 2023, c. 323, § 19, eff. July 1, 2024.