Going Bold, Not Broke, in Oklahoma: Education Savings Accounts

A common critique often put forth by school choice opponents is that such programs will divert students from districts, therefore “siphoning” resources from public schools. Opponents of the proposed Oklahoma education savings account program are no different.

The executive director of the Oklahoma State School Boards Association recently wrote an opinion expressing this concern, claiming that “vouchers won’t save public schools money.” First, there is a distinctive difference between school vouchers and education savings accounts (ESAs). Putting that argument aside, I set out to examine the potential fiscal impact of HB 2949, an ESA bill that, before missing legislative deadline this week, could have granted educational freedom to most children in the Sooner State.

Based on data from the Oklahoma Department of Education (OKDOE), U.S. Department of Agriculture, National Center for Education Statistics at the U.S. Department of Education, and the U.S. Census Bureau, I have estimated the impact of Oklahoma’s HB 2949 ESA program could have had on state taxpayers and school districts.

The overall net fiscal impact is defined completely by the difference between the amount of financial assistance afforded by the program to participating Oklahoma families and the cost to educate students in public schools. It is also worth noting that this analysis does account for the likelihood that not all students would be diverted from public schools. There is a chance that some students eligible for the program (i.e. those in prekindergarten and kindergarten) who enroll in a private school via the program would attend a private school, even if the program did not exist.

After my calculations are complete, we’ll know the fiscal effect of such an ESA program based on whether the final impact number is positive, negative, or neutral (zero). A positive impact implies a financial surplus is created for the state or school district. A negative impact implies that a financial deficit is created for the state or school district. A neutral impact implies the state or school district is made neither better nor worse off financially.

 

About the Oklahoma ESA Bill

Student Eligibility and Funding Restrictions

HB 2949 would have created education savings accounts to assist Oklahoma students with unique needs and/or financial challenges.

ESAs allow parents to receive a deposit of public funds into government-authorized savings accounts to use on educational expenses. Those funds can cover private school tuition and fees, online learning programs, curriculum, private tutoring, educational therapies, college course costs, and even other higher education expenses.

Eligibility for Oklahoma’s potential ESA program is limited to students who are:

  1. currently eligible to attend prekindergarten or kindergarten; or
  2. enrolled in a public school where the student is being counted for funding purposes or was enrolled and counted for funding purposes during the most recently concluded school year if the public school is not yet enrolling students for the next school year; or
  3. a new resident of the state; or
  4. participating in or previously participating in the Lindsey Nicole Henry Scholarships for Students with Disabilities Program during the current or a previous school year; or
  5. in the household of a member of the United States Armed Forces transferred from out of state or from a foreign country pursuant to a permanent change-of-station order of the parent.

The ESA will be funded in a stepwise manner as illustrated by the table below.

Table of income eligibility-based ESAs

CriteriaIncome limit, household of threeIncome limit, household of fourESA amount as % of state aidAverage ESA amount
up to 100% FRL*$37,167$44,86390%$4,484
100–200% FRL$74,333$89,72560%$2,989
over 200% FRLn/an/a30%$1,495
*FRL = free and reduced-price lunch

Source: U.S. Department of Agriculture, Food and Nutrition Service; Oklahoma Department of Education


Note: Average state aid for 2014–15 was $4,982, computed based on a state aid factor of $3,053.60

I estimate 696,797 children, or 88 percent of all children between ages 3 and 18, would be eligible for an ESA. And because a nearly universal ESA program like this has been enacted only in Nevada (which is currently stalled in litigation), it is very difficult to predict with high confidence how participation in the program will play out, even in the near future. Although, we know school choice programs across the nation have been a source of savings to state taxpayers at various participation levels (e.g. Costrell, 2010; Spalding, 2014).

 

Setting Up the Analysis

In order to evaluate the potential fiscal impact of the Oklahoma education savings account program on the state and school districts, I chose to consider the impact of $1 million spent on the program. The bill does not allow families to receive and use ESAs if their children are enrolled in public schools. For simplicity, I assume that each ESA is fully used to enroll a child in a private school or to customize an education 100 percent outside public district schools. We do not assume any portion of unused funds return to the state.

Below, I calculate the estimated average ESA amount and use that amount to determine how many ESAs $1 million would fund. Of that group of ESA users, we then must determine how many would be diverted from public schools and how many would have gotten their schooling outside the public system without financial assistance from the ESA program. That information will then allow us to estimate the fiscal impacts of the ESA program on the state and local school districts.

Calculating the Average Oklahoma Education Savings Account Funding Amount

The table above reported the average ESA amount for each eligibility group. I estimate the overall average ESA amount would be $3,878 based on the following weights:

  • I assume 61.4 percent of ESAs will be awarded to students eligible for free or reduced-price lunch (FRL) programs (This rate is the same as the statewide FRL rate for all public schools in Oklahoma.);
  • I assume 36.7 percent of ESAs are awarded to students from households that have income between 100 percent and 200 percent of the FRL income requirement (This rate is based on S. Census data that report the income distribution of Oklahoma households with children under 18);
  • and the remaining 1.9 percent of ESAs would be awarded to students from households whose income exceeds 200 percent of the FRL threshold.

 

Calculating How Many Oklahoma ESAs $1 million is Likely to Fund

After estimating the average ESA amount, we can use that amount to compute the number of accounts that $1 million could fund. Dividing $1 million by the average ESA amount of $3,878 yields the number of accounts that can be funded: 258.

 

Calculating the Number of Oklahoma ESA Students Not Diverted from Public Schools

It is unlikely that all of the 258 students enrolling in the ESA program will be diverted from public schools because a subgroup of those students would likely enroll in a private school even without the financial assistance of an ESA. For instance, because students in kindergarten are not required to attend a public school for 100 days, it may be the case that some ESA users in pre-kindergarten or kindergarten would have enrolled in a private school without the program.

Although we do not know with certainty if and to what extent this will happen, I account for this propensity in the analysis.

To overestimate the number in this group, I assume the propensity to enroll in a private school is double Oklahoma’s private school enrollment rate, which would equate to 7.6 percent. Then, I rounded this figure up to 10 percent to reflect similar estimates from other fiscal work (see p. 11 of University of Arkansas economist Bob Costrell’s 2008 report).

From there, I multiplied that rate by the percent share of children enrolled in prekindergarten and kindergarten in public school (13.7 percent). (Remember, the bill has a prior-public-school requirement for children in all other grades.) That yielded 1.4 percent, implying that 1.4 percent of all ESA users would likely have attended a private school without the program in place. It follows that out of the group of 258 ESA users, four prekindergarten or kindergarten students would have enrolled in a private school without financial assistance.

Therefore, of 258 ESA students funded by $1 million, 254 would be diverted from public schools. This group would provide cost burden relief to the state and school districts.

 

Calculating Fiscal Impact of Oklahoma ESAs on State Expenditures

Having determined how many students will be diverted from public schools among ESA recipients, we can estimate the impact of the program on state expenditures.

For each student diverted from a public school, the state avoids spending $4,982 to educate them.

Thus, the state will avoid paying $1.27 million for those 254 students, thereby more than completely offsetting the $1 million cost of the ESA program and saving the state $267,000.

 

Calculating the Fiscal Impact of Oklahoma ESAs on School Districts

A final, and crucial, determinant of the impact of an ESA program on local school districts lies in their variable costs.

Using financial data from the OKDOE, the estimate for short-run variable costs include categorical expenditures for Instruction, Student Support Services, and Instructional Staff Support Services. They exclude all other fixed and semi-fixed costs categories. Based on these data, about 56.7 percent of total costs per student are variable in the short run, implying that over 43 percent of costs are fixed or semi-fixed in the short run.

(Note that our estimate of variable costs is very cautious and excludes all fixed and semi-fixed cost expenditures such as all costs associated with Administration, Student Transportation Services, Enterprise Operations, Child Nutrition Programs Operations, Operation and Maintenance of Plant Services, Community Services Operations, all capital outlay, and Debt Service.)

The actual share of total costs that are variable is likely larger. In the long run, all costs are variable—a fundamental economic and accounting principle.

Based on this accounting, variable cost per student is $5,091. This represents 57 percent of total Oklahoma public school per-pupil spending of state, federal, and local funds.

If the funding diverted per ESA student was less than the average variable cost, then the average funding per student who remains in public school would rise—yielding a net positive impact. Under that scenario, students diverted from public schools would result in savings for a district, provided the district actively adjusts costs as its student enrollment changes. If the two values were equal, then the district would incur a fiscally neutral impact.

To sum up, I estimate the following fiscal impacts for each $1 million spent on Oklahoma’s ESA program are:

  • The total cost of funding $1 million worth of ESAs would be offset by $1.27 million in savings from students being diverted from public schools, resulting in a net positive state impact of $267,196;
  • School districts would experience a reduction in state aid by $1.27 million;
  • However, on average, school districts would also have $1.3 million in cost burden relief when students leave with ESAs, implying a net positive impact of $27,624 for the average school district for each $1 million spent;
  • For context, Oklahoma public schools received more than $2.77 billion last year in state tax dollars, $469 million in federal tax dollars, and $1.25 billion in local property tax dollars.
  • There would be little-to-no impact on federal revenue and no impact on local property taxes purposed for education because this program affects only state tax dollars. Property tax levies are set each year by local governments, and school districts have discretion only over levying for bond proposals and bond repayments. Local taxes are set independent of student enrollment, implying that enrollment fluctuations do not affect property taxes. Either way you cut it, public schools still keep at least most federal and all local education dollars even if they lose students (keep in mind these are students that these districts are no longer responsible for educating), further increasing the total funds they can spend per student still enrolled in their schools.

Notably, the $1.3 million savings to districts does not reflect a direct reduction in expenditures. Rather, it reflects relief from cost burden to teach ESA students, so districts will still have to make decisions about cutting costs in the face of enrollment declines.

Here is how all of our calculations look in a simple table:

Fiscal Impact Estimates for $1M in ESA Expenditures

Total number of students in OK eligible for ESA696,797
Percent of all students eligible88%
Estimated average ESA amount$3,878
Number of ESA accounts funded258
Estimated number of ESA students diverted with public schools with $1M spent on program254
Total state expenditures on ESA program to fund 258 students($1,000,550)
Reduction in state support from diverted students$1,267,747
Net state impact$267,196
Estimated reduction in state aid revenue to school districts for diverted ESA students($1,267,747)
Average variable educational cost per student†$5,091
Total cost burden relief to school districts for diverted students$1,295,370
Net local school district savings$27,624
Combined net state and local school district impact$294,820

Sources: Based on data from Oklahoma State Department of Education, U.S. Census Bureau, U.S Department of Education


Note: Parentheses indicates negative number


† Variable costs include expenditures for Instruction, Student Support Services, and Instructional Staff Support Services. They exclude all other expenditures, including the following fixed and semi-fixed costs: all costs for Administration, Student Transportation Services, Enterprise Operations, Child Nutrition Programs Operations, Operation and Maintenance of Plant Services, Community Services Operations, all capital outlay, and Debt Service

Calculating Fiscal Impact of ESAs for Local Oklahoma School Districts

The above discussion estimates the fiscal impact on the “average” school district. Because school funding streams don’t flow to school districts in an even manner, we expect fiscal impacts to vary by district.

The reason? Some districts receive the vast majority of their revenue from the state while other districts rely heavily on property taxes. As long as variable costs exceed the reduction in state aid for each diverted student, the district will incur a positive fiscal impact.

For almost 80 percent of all school districts in Oklahoma, the average variable cost for each student diverted from public schools exceeds per-student state aid.

This is shown in the table below, which reports the following for each school district:

  • average daily membership (ADM),
  • total revenue per ADM,
  • state aid per ADM,
  • state aid as a percent of total cost,
  • average variable cost (AVC), and
  • the difference between AVC and state aid per ADM.

This final element is positive for 413 Oklahoma school districts and negative for 103 school districts. Even for most of the districts that receive the most funding from the state, the ESA program would have a positive fiscal impact. Of the 116 districts that receive more than half of their revenue from state aid, 41 would face a negative impact that averages $404 per student. In reality, because of hold harmless provisions, these districts would not be affected by the ESA program in the first two years.

Contrary to opponents’ assertions that it “drains” or “siphons” resources from public schools, this analysis shows how an Oklahoma education savings account program could instead offer a potential and welcome source of savings for school districts by increasing their flexibility to direct education dollars.

Oklahoma School District Costs and State Aid

DistrictAvg Daily Membership (ADM)Total revenue per ADMAvg state aid per ADMState aid as % of totalAvg Variable Cost (AVC)AVC - State aid
ACHILLE301.4$13,077$5,79044%$6,541$751
ADA2,710.90$11,251$5,32447%$6,529$1,205
ADAIR1,049.50$9,910$4,53946%$4,842$302
AFTON560.5$9,705$5,33755%$5,494$157
AGRA409.7$10,524$5,05648%$6,310$1,254
ALBION77.4$14,948$6,31642%$6,884$568
ALEX307.2$11,823$5,31645%$5,540$224
ALINE-CLEO154.9$22,174$6,05827%$8,045$1,987
ALLEN492.6$11,667$4,86142%$5,137$277
ALLEN-BOWDEN370.6$10,735$5,49951%$5,319($179)
ALTUS3,536.30$9,954$5,04451%$5,712$669
ALVA1,030.70$18,822$4,93526%$7,268$2,332
AMBER-POCASSET481.5$15,431$5,04933%$5,708$660
ANADARKO1,896.30$12,287$4,90740%$6,170$1,263
ANDERSON274.2$15,039$5,06534%$5,335$269
ANTLERS1,023.20$9,440$4,94252%$5,936$995
ARAPAHO-BUTLER398.4$15,822$6,46241%$6,148($314)
ARDMORE3,115.20$12,937$4,98739%$5,586$599
ARKOMA423.1$9,346$4,81652%$5,331$516
ARNETT213.8$22,924$6,65629%$7,823$1,167
ASHER263.7$11,844$5,24444%$5,075($169)
ATOKA926.5$10,674$5,32750%$5,547$220
AVANT78.3$16,704$5,97736%$7,263$1,286
BALKO156$29,386$7,10724%$10,581$3,474
BANNER208.8$18,176$4,97527%$5,274$299
BARNSDALL432.4$11,488$5,13745%$5,682$545
BARTLESVILLE6,042.80$13,024$4,78637%$5,478$692
BATTIEST269.5$15,873$7,01344%$6,495($518)
BEARDEN100.1$15,558$5,99539%$5,883($112)
BEAVER378.1$15,058$6,05740%$5,621($436)
BEGGS1,172.00$11,604$4,71441%$5,723$1,009
BELFONTE200.3$15,183$5,72038%$7,730$2,010
BENNINGTON288.1$17,007$6,37037%$6,713$343
BERRYHILL1,270.10$10,315$4,30942%$4,684$375
BETHANY1,690.90$9,817$5,39655%$5,608$211
BETHEL1,318.80$8,948$4,71953%$5,171$451
BIG PASTURE202.2$13,036$6,37849%$6,491$113
BILLINGS65.7$17,241$8,12847%$9,072$944
BINGER-ONEY397.6$13,081$5,22540%$5,205($20)
BISHOP519.2$10,596$4,90246%$4,671($231)
BIXBY5,807.70$14,429$4,61032%$4,873$263
BLACKWELL1,371.60$9,478$4,94652%$4,951$4
BLAIR295.4$9,934$5,13352%$5,774$641
BLANCHARD1,950.40$10,562$4,60244%$4,615$13
BLUEJACKET195.5$17,886$6,47936%$6,809$330
BOISE CITY289.4$17,153$6,71639%$7,126$410
BOKOSHE217.8$11,233$5,28647%$6,014$728
BOONE-APACHE594$12,275$4,81639%$5,259$443
BOSWELL376.2$11,323$5,51149%$5,962$451
BOWLEGS287.9$9,893$5,20153%$6,005$804
BOWRING75.3$16,776$7,84047%$5,672($2,168)
BRAGGS181.3$17,299$6,03335%$6,726$693
BRAY-DOYLE364.9$20,353$6,11130%$6,079($32)
BRIDGE CREEK1,494.90$9,968$4,59046%$4,619$29
BRIGGS487.9$14,398$5,23236%$5,411$180
BRISTOW1,709.50$10,822$5,28349%$5,404$121
BROKEN ARROW18,364.50$13,722$4,79335%$5,080$288
BROKEN BOW1,728.40$10,125$4,82748%$5,538$711
BRUSHY377.7$10,292$5,14350%$4,724($419)
BUFFALO281.4$16,246$6,90242%$7,598$695
BUFFALO VALLEY156.3$10,351$5,97758%$6,121$144
BURLINGTON152.5$46,761$7,69216%$10,904$3,212
BURNS FLAT-DILL CITY678$11,011$4,74243%$6,018$1,276
BUTNER238.7$13,514$5,37840%$6,142$764
BYNG1,783.70$10,652$5,48051%$6,055$575
CACHE1,842.30$15,795$4,72030%$5,591$871
CADDO457.9$12,339$5,66846%$5,979$311
CALERA696.5$10,261$5,43453%$5,261($173)
CALUMET277.4$35,698$4,92514%$7,352$2,427
CALVIN172.7$24,478$6,11425%$9,144$3,030
CAMERON284.1$9,198$5,63761%$5,604($33)
CANADIAN459.3$13,219$5,65743%$6,571$914
CANEY257.7$11,112$5,27447%$7,146$1,872
CANEY VALLEY770.3$12,146$4,93941%$5,595$656
CANTON411.4$21,654$5,93827%$7,698$1,760
CANUTE437.1$13,581$4,84736%$5,416$569
CARNEGIE565.1$12,217$5,23843%$5,327$88
CARNEY223.3$10,453$5,38652%$5,185($201)
CASHION501.9$14,301$4,48831%$5,241$753
CATOOSA2,128.90$13,998$4,92335%$6,247$1,324
CAVE SPRINGS190.1$13,635$5,50940%$5,936$427
CEMENT236.4$12,795$5,42942%$5,562$133
CENTRAL520.6$9,550$4,81250%$5,027$215
CENTRAL HIGH432.4$9,827$4,66447%$4,441($223)
CHANDLER1,211.00$10,240$4,53844%$4,604$66
CHATTANOOGA223.7$20,909$6,94133%$8,052$1,110
CHECOTAH1,547.30$11,375$5,11145%$5,489$379
CHELSEA913$10,513$5,18549%$5,766$581
CHEROKEE385.8$27,215$5,41820%$8,218$2,801
CHEYENNE363.2$28,362$6,03421%$8,663$2,630
CHICKASHA2,458.30$11,431$5,03744%$5,451$414
CHISHOLM1,039.70$15,101$4,55430%$4,850$295
CHOCTAW-NICOMA PARK5,614.50$11,203$4,62941%$5,041$412
CHOUTEAU-MAZIE895.5$14,517$5,05635%$6,984$1,928
CIMARRON268.2$15,517$5,28434%$6,823$1,539
CLAREMORE4,072.10$11,198$4,62241%$5,525$903
CLAYTON285.1$14,277$8,21758%$7,829($388)
CLEORA120.3$35,724$5,93717%$8,310$2,373
CLEVELAND1,655.70$11,354$4,92343%$5,297$374
CLINTON2,305.30$12,103$5,19943%$5,553$353
COALGATE726.5$13,748$6,16045%$7,257$1,097
COLBERT830.7$11,314$5,53749%$5,807$270
COLCORD572.3$9,881$5,49456%$5,904$409
COLEMAN187$11,215$5,86752%$6,662$795
COLLINSVILLE2,679.10$8,249$4,44154%$4,591$150
COMANCHE1,046.40$10,608$4,91946%$5,866$948
COMMERCE864.6$9,996$5,36054%$5,858$498
COPAN238.1$15,690$4,99332%$5,649$656
CORDELL739.9$15,947$5,71036%$6,091$381
COTTONWOOD180.1$16,940$7,65145%$9,163$1,512
COVINGTON-DOUGLAS271.6$19,444$6,50333%$6,576$73
COWETA3,291.10$10,422$4,57344%$4,710$136
COYLE302.2$12,144$6,14251%$5,910($232)
CRESCENT654.6$10,456$4,81146%$6,018$1,208
CROOKED OAK1,172.50$15,949$5,52735%$6,029$502
CROWDER468.5$11,728$5,33145%$5,846$516
CRUTCHO391$13,437$5,22439%$5,034($190)
CUSHING1,802.80$18,859$5,19928%$5,713$514
CYRIL373.1$9,819$5,08152%$5,448$367
DAHLONEGAH131.4$19,922$5,59728%$8,756$3,158
DALE742.5$9,500$4,89552%$4,806($89)
DARLINGTON234$20,566$5,31126%$7,292$1,981
DAVENPORT378.9$10,228$5,04349%$4,464($579)
DAVIDSON73$10,398$6,37361%$8,537$2,165
DAVIS1,062.60$9,008$4,70552%$5,069$363
DEER CREEK5,372.20$14,128$4,51532%$4,356($160)
DEER CREEK-LAMONT176.7$27,582$7,13926%$9,767$2,628
DENISON278$9,788$5,51656%$5,463($52)
DEPEW373$12,292$5,22442%$5,312$89
DEWAR409.8$8,641$5,00658%$5,342$335
DEWEY1,257.60$9,780$00%$4,853$4,853
DIBBLE678.6$10,181$4,69046%$5,272$581
DICKSON1,299.00$10,624$4,76645%$5,240$474
DOVER176.3$16,707$6,01336%$8,902$2,889
DRUMMOND317.5$14,436$5,09935%$6,169$1,071
DRUMRIGHT580.3$10,735$5,19348%$5,704$511
DUKE196.2$12,831$5,16440%$6,152$989
DUNCAN3,777.70$11,991$4,59338%$5,215$622
DURANT3,614.50$11,564$5,28646%$5,782$496
EAGLETOWN187.7$16,577$8,16749%$8,694$527
EARLSBORO240.4$10,374$5,47853%$5,194($284)
EDMOND23,444.90$15,227$4,58930%$4,862$273
EL RENO2,545.70$15,280$5,12434%$5,499$376
ELDORADO86$19,197$7,55639%$8,825$1,270
ELGIN2,200.40$9,817$4,67048%$4,590($79)
ELK CITY2,258.00$10,097$4,69146%$5,314$624
ELMORE CITY-PERNELL495$14,619$5,94541%$5,684($261)
EMPIRE475.8$11,006$4,89044%$5,589$699
ENID7,933.60$10,916$5,03546%$5,609$574
ERICK256.5$14,359$6,60646%$7,229$623
EUFAULA1,208.70$10,673$5,22349%$5,848$625
FAIRLAND601.6$10,523$5,36451%$5,868$504
FAIRVIEW744.1$12,276$5,62846%$6,812$1,184
FANSHAWE66.5$12,854$5,89346%$6,109$217
FARGO199.4$38,240$5,43514%$8,905$3,471
FELT82.4$20,062$8,90344%$7,960($943)
FLETCHER474.6$10,704$4,95946%$5,172$213
FLOWER MOUND329.6$8,692$4,68054%$4,739$59
FOREST GROVE175.9$13,652$5,78542%$5,494($291)
FORGAN142.9$27,846$8,51031%$9,916$1,406
FORT COBB-BROXTON324.8$15,618$5,47835%$7,283$1,804
FORT GIBSON1,898.60$11,113$4,69742%$5,478$781
FORT SUPPLY136.5$48,961$6,84914%$11,378$4,529
FORT TOWSON410.5$10,403$5,36252%$6,158$796
FOX316.5$18,067$5,11628%$5,608$492
FOYIL554.9$9,273$5,20556%$5,579$374
FREDERICK868.6$10,889$5,00846%$5,829$821
FREEDOM86.9$33,564$8,06124%$11,838$3,777
FRIEND276.9$9,561$4,78050%$4,532($248)
FRINK-CHAMBERS428.6$11,568$4,90942%$4,799($110)
FRONTIER389.1$30,583$6,24520%$8,850$2,605
GAGE79.1$22,869$6,50328%$12,461$5,958
GANS420$9,731$5,52157%$4,874($647)
GARBER376.8$17,066$5,21531%$5,723$508
GEARY413.4$14,584$6,16142%$6,259$98
GERONIMO331.4$13,836$5,41039%$6,176$767
GLENCOE343$12,563$5,09841%$5,539$440
GLENPOOL2,625.00$10,362$4,85747%$5,448$590
GLOVER77.9$11,569$6,39555%$5,889($506)
GOODWELL249.3$8,864$4,97756%$4,607($370)
GORE472.3$14,211$5,31337%$6,100$787
GRACEMONT147.2$13,959$5,53840%$6,942$1,405
GRAHAM-DUSTIN168.5$24,585$6,13825%$8,763$2,624
GRAND VIEW619.8$10,564$00%$6,121$6,121
GRANDFIELD250.8$11,387$5,75251%$5,856$103
GRANDVIEW136.3$11,674$5,92151%$4,533($1,388)
GRANITE279.7$11,714$5,69849%$6,328$630
GRANT155.7$12,626$6,94355%$7,127$184
GREASY93.2$14,116$6,91449%$6,593($320)
GREENVILLE126.8$14,425$6,29844%$5,113($1,185)
GROVE2,485.30$10,180$4,88648%$5,714$828
GROVE455.3$18,724$4,48624%$5,138$652
GUTHRIE3,479.80$8,621$4,66554%$4,943$277
GUYMON2,883.90$10,298$5,15950%$5,340$181
GYPSY91.9$15,712$7,00545%$6,445($560)
HAILEYVILLE361.1$12,499$5,70146%$6,680$980
HAMMON265.9$32,242$6,34520%$8,660$2,315
HANNA96.7$22,509$7,30032%$8,919$1,618
HARDESTY95.9$21,994$7,72235%$9,077$1,356
HARMONY207.4$11,978$6,42354%$5,879($544)
HARRAH2,085.40$11,700$4,98943%$5,419$430
HARTSHORNE791.3$12,372$5,05541%$6,139$1,084
HASKELL824.4$10,961$5,24148%$5,422$181
HAWORTH619.1$11,706$5,72949%$5,726($3)
HAYWOOD138.2$14,118$6,48346%$5,645($838)
HEALDTON512.8$11,177$5,19246%$5,596$404
HEAVENER1,055.10$12,511$5,09141%$6,877$1,785
HENNESSEY909.2$13,309$5,30540%$5,464$159
HENRYETTA1,252.10$10,223$5,11950%$5,491$372
HILLDALE1,889.40$10,533$4,72145%$4,945$224
HINTON678.4$14,237$4,97635%$4,871($106)
HOBART870$10,954$4,76343%$4,860$97
HODGEN256.2$10,748$5,26549%$5,882$617
HOLDENVILLE1,064.80$9,113$5,36859%$5,898$530
HOLLIS535.9$12,296$6,13350%$6,554$421
HOLLY CREEK223.2$10,239$5,65755%$5,926$269
HOMINY585.2$12,442$5,11441%$5,742$628
HOOKER652.5$10,822$5,86854%$5,354($515)
HOWE575.3$9,649$4,98152%$4,845($136)
HUGO1,160.40$10,686$5,24349%$5,666$423
HULBERT614.9$12,156$4,93741%$6,190$1,253
HYDRO-EAKLY424.6$18,094$5,68631%$6,863$1,177
IDABEL1,232.50$10,872$5,33949%$6,016$677
INDIAHOMA217.8$12,666$5,54644%$7,212$1,666
INDIANOLA218.1$18,502$5,95832%$6,294$337
INOLA1,389.20$11,301$4,80643%$5,322$516
JAY1,689.80$13,079$5,19740%$7,457$2,260
JENKS11,376.30$17,405$4,81028%$5,406$596
JENNINGS201.9$11,586$5,41947%$6,368$949
JONES1,102.50$10,340$4,61145%$4,860$249
JUSTICE170$24,617$5,77523%$9,134$3,359
JUSTUS-TIAWAH498$13,562$4,54033%$5,142$602
KANSAS881.2$11,348$5,29247%$6,097$805
KELLYVILLE1,105.50$9,951$4,89649%$5,243$347
KENWOOD97.8$12,905$5,68644%$6,374$688
KEOTA419.3$13,566$5,21538%$6,835$1,620
KETCHUM611$14,899$5,30636%$6,139$833
KEYES74.6$28,798$8,57930%$9,702$1,123
KEYS847.6$11,317$4,86643%$5,995$1,129
KEYSTONE306.4$10,683$5,49951%$5,540$41
KIEFER698.7$12,816$4,91138%$4,738($173)
KILDARE76.9$21,701$5,56926%$6,791$1,222
KINGFISHER1,425.90$10,660$4,92546%$5,945$1,020
KINGSTON1,210.00$12,480$5,05040%$5,752$702
KINTA192.2$13,863$5,68041%$6,767$1,087
KIOWA310.4$27,789$6,83425%$9,677$2,843
KONAWA702.1$11,561$4,86842%$5,772$905
KREBS401.6$18,006$5,13128%$4,801($330)
KREMLIN-HILLSDALE294.2$15,498$4,89432%$5,136$242
LANE278.6$15,456$6,38341%$7,569$1,186
LATTA851.8$11,858$5,16144%$5,551$391
LAVERNE492.8$12,460$5,83947%$6,074$235
LAWTON15,059.80$11,023$5,11546%$5,638$523
LE FLORE210.4$12,486$5,73546%$6,308$573
LEACH156.1$11,446$5,02744%$5,343$316
LEEDEY220.3$47,217$6,98915%$10,084$3,095
LEXINGTON1,148.70$9,489$4,71550%$4,703($12)
LIBERTY558.7$5,000$4,54191%$2,486($2,055)
LIBERTY271.7$20,447$5,71728%$10,952$5,235
LINDSAY1,279.20$10,241$4,65945%$5,145$486
LITTLE AXE1,241.70$10,067$5,06350%$4,934($130)
LOCUST GROVE1,426.90$10,582$5,47652%$5,854$378
LOMEGA237.9$19,476$6,62034%$7,424$805
LONE GROVE1,513.80$11,032$4,58342%$4,949$365
LONE STAR909.5$7,951$4,42556%$4,547$123
LONE WOLF85.7$12,358$7,00157%$7,358$357
LOOKEBA SICKLES265.8$10,299$5,15650%$5,110($46)
LOWREY137.8$14,613$5,77440%$6,350$576
LUKFATA375.9$10,139$4,77247%$4,672($100)
LUTHER937$12,487$4,59437%$5,505$911
MACOMB287.7$9,810$5,47756%$5,266($210)
MADILL1,723.10$11,201$5,18646%$5,614$429
MANGUM693.1$10,666$6,03157%$5,904($127)
MANNFORD1,568.90$9,497$5,01453%$5,249$235
MANNSVILLE98$16,505$6,32538%$6,478$154
MAPLE159.1$35,405$4,70013%$10,063$5,362
MARBLE CITY130$14,397$6,08142%$5,784($297)
MARIETTA1,050.70$11,136$5,03145%$4,829($202)
MARLOW1,458.80$9,734$4,74749%$5,144$396
MARYETTA682.8$14,539$5,02635%$6,601$1,574
MASON270.1$12,937$5,40342%$5,912$510
MAUD326.5$14,288$5,31837%$7,119$1,801
MAYSVILLE366.2$12,002$5,07742%$5,360$282
MCALESTER3,097.00$9,009$4,87554%$5,360$485
MCCORD256.7$11,755$5,13444%$4,761($373)
MCCURTAIN231.3$10,661$5,92356%$5,561($363)
MCLOUD1,847.10$8,933$4,87655%$5,250$375
MEDFORD276$48,560$6,61114%$9,308$2,697
MEEKER852.2$9,015$4,73553%$5,359$624
MERRITT777.9$12,856$4,90438%$4,951$48
MIAMI2,483.80$9,582$4,98452%$5,476$491
MIDDLEBERG198.2$14,977$5,10834%$4,941($167)
MIDWAY216.4$12,536$6,37151%$6,735$364
MIDWEST CITY-DEL CITY14,566.60$12,357$4,79939%$5,272$474
MILBURN182.4$11,841$5,82949%$6,138$309
MILL CREEK160.7$11,794$5,55647%$5,363($193)
MILLWOOD965.7$13,358$5,07738%$5,766$690
MINCO576.4$17,523$4,68027%$5,516$836
MOFFETT365.2$11,096$4,97245%$5,267$295
MONROE106.2$13,659$5,95344%$5,862($91)
MOORE23,437.20$11,179$4,73242%$4,949$217
MOORELAND516.2$14,522$5,96241%$6,380$418
MORRIS1,077.20$9,748$4,73249%$5,176$444
MORRISON537.9$14,953$4,96533%$5,907$942
MOSELEY219.8$11,629$5,69649%$6,322$626
MOSS289.5$11,684$5,69749%$4,979($718)
MOUNDS578.9$11,882$4,99542%$5,329$333
MOUNTAIN VIEW-GOTEBO259.8$21,514$6,60631%$6,569($36)
MOYERS211.5$11,449$6,20054%$6,132($68)
MULDROW1,495.10$9,498$5,18155%$5,986$805
MULHALL-ORLANDO236$14,148$6,36645%$6,953$588
MUSKOGEE6,083.20$9,945$4,87449%$5,622$748
MUSTANG10,434.40$11,405$4,62641%$4,878$252
NASHOBA49.8$13,156$10,63881%$7,091($3,547)
NAVAJO469.7$10,339$4,54044%$5,365$824
NEW LIMA289.1$10,650$5,57452%$5,483($92)
NEWCASTLE2,018.30$11,049$4,73343%$4,614($118)
NEWKIRK858.7$12,693$4,75137%$5,648$897
NINNEKAH551.5$12,703$4,84138%$5,139$298
NOBLE2,871.90$9,436$4,74350%$4,910$166
NORMAN15,725.70$11,637$4,98543%$5,507$522
NORTH ROCK CREEK581.1$15,794$4,79430%$5,672$878
NORWOOD198.2$12,750$5,89346%$5,766($127)
NOWATA949.4$10,954$4,94045%$5,682$742
OAK GROVE185.5$10,050$4,83948%$4,193($646)
OAKDALE603.7$22,031$4,45720%$5,533$1,076
OAKS-MISSION244.1$14,198$5,67740%$6,612$935
OILTON277.3$11,726$5,45146%$5,609$158
OKARCHE332.2$17,173$5,01629%$5,596$580
OKAY406.9$11,086$5,18347%$6,053$871
OKEENE332.4$17,663$6,12035%$8,289$2,169
OKEMAH856.6$11,908$5,30745%$6,494$1,187
OKLAHOMA CITY40,641.20$15,944$5,12532%$6,176$1,051
OKLAHOMA UNION669.1$11,362$5,48748%$5,720$233
OKMULGEE1,529.60$11,899$5,19844%$5,572$374
OKTAHA768.3$8,586$4,80756%$4,957$150
OLIVE367.1$12,596$5,05340%$5,697$644
OLUSTEE156.1$12,433$6,14849%$6,541$393
OOLOGAH-TALALA1,812.50$9,545$4,57548%$4,718$143
OPTIMA65.1$13,756$6,01244%$7,791$1,779
OSAGE163.6$17,971$5,81832%$6,154$336
OSAGE HILLS178.9$12,636$5,01440%$5,307$293
OWASSO9,644.80$11,612$4,42938%$4,624$195
PADEN240.7$13,902$5,83142%$6,207$377
PANAMA725$8,946$4,88055%$5,441$562
PANOLA165.7$13,816$6,20745%$6,006($201)
PAOLI255.8$10,320$5,42753%$6,086$658
PAULS VALLEY1,320.60$11,964$5,13643%$6,090$954
PAWHUSKA826.8$12,027$4,93341%$5,812$879
PAWNEE746$9,855$5,32054%$5,500$180
PEAVINE130.2$11,095$6,60360%$7,153$550
PECKHAM102$17,401$5,98234%$6,141$160
PEGGS248.7$14,247$5,49939%$6,460$961
PERKINS-TRYON1,513.00$9,716$4,57347%$4,834$261
PERRY1,189.20$10,848$4,55942%$4,616$57
PIEDMONT3,428.00$10,677$4,65144%$4,755$104
PIONEER391.2$10,762$4,46942%$4,594$126
PIONEER-PLEASANT VALE535.9$16,798$4,97630%$5,778$802
PITTSBURG141$13,200$6,29048%$7,122$832
PLAINVIEW1,526.10$11,402$4,85243%$5,575$723
PLEASANT GROVE274.9$11,104$5,84753%$5,516($331)
POCOLA816$8,659$4,87156%$4,976$105
PONCA CITY5,172.30$14,404$4,89634%$5,529$633
POND CREEK-HUNTER349$25,160$5,93024%$7,715$1,785
PORTER CONSOLIDATED543.4$11,835$4,96442%$5,315$351
PORUM502.9$10,044$4,96249%$5,724$761
POTEAU2,344.10$9,471$4,97453%$5,546$571
PRAGUE1,060.90$11,594$4,72441%$5,553$829
PRESTON571.3$11,318$4,55640%$4,539($17)
PRETTY WATER265$11,240$5,38248%$5,069($314)
PRUE322$11,726$5,30945%$5,313$5
PRYOR2,658.80$12,712$4,93339%$5,830$896
PURCELL1,429.30$11,754$4,95842%$5,413$454
PUTNAM CITY19,250.30$13,974$5,09236%$5,714$622
QUAPAW616$10,270$5,04149%$5,888$847
QUINTON477.7$12,767$5,59644%$6,438$842
RATTAN488.8$14,211$6,15543%$7,176$1,021
RAVIA95.7$13,712$6,09944%$6,748$649
RED OAK271.4$12,220$5,33944%$5,290($49)
REYDON140.5$51,956$6,54613%$10,740$4,194
RINGLING440.7$10,541$6,17259%$5,800($372)
RINGWOOD411.2$13,513$4,78735%$5,217$430
RIPLEY459.5$16,327$5,13331%$5,397$264
RIVERSIDE163.1$15,967$5,42034%$5,626$207
ROBIN HILL279.8$11,173$5,17446%$4,372($802)
ROCK CREEK480.1$12,167$6,04950%$5,440($608)
ROCKY MOUNTAIN178.8$15,957$5,99838%$6,785$787
ROFF339.1$11,238$5,44748%$5,253($195)
ROLAND1,082.40$9,423$5,13054%$5,280$150
RUSH SPRINGS566.6$9,528$4,90752%$5,733$826
RYAL65.9$15,975$6,78142%$8,903$2,122
RYAN259.2$12,959$6,65551%$6,167($488)
SALINA811$12,701$5,23541%$5,852$617
SALLISAW1,968.70$11,886$5,11743%$5,435$318
SAND SPRINGS5,267.40$12,985$4,78137%$5,392$611
SAPULPA4,037.40$13,226$4,82837%$5,573$744
SASAKWA223.7$12,777$5,41142%$6,421$1,011
SAVANNA377.4$10,458$5,72955%$5,607($122)
SAYRE767.5$23,192$4,60520%$5,147$541
SCHULTER143.8$15,812$5,59935%$6,907$1,308
SEILING448.5$18,081$5,83232%$6,942$1,110
SEMINOLE1,802.00$11,043$4,73343%$5,502$769
SENTINEL341.9$17,431$6,19536%$6,777$583
SEQUOYAH1,358.00$10,604$4,54243%$4,829$287
SHADY GROVE152.9$12,369$6,39652%$7,242$845
SHADY POINT137.6$11,441$5,75650%$6,276$520
SHARON-MUTUAL303.7$22,244$6,55129%$7,357$806
SHATTUCK377.5$26,209$5,78822%$8,467$2,680
SHAWNEE3,955.40$10,492$4,92847%$5,537$609
SHIDLER239.9$14,329$6,61446%$6,693$79
SILO863.2$9,572$5,11353%$5,567$454
SKIATOOK2,538.50$10,833$4,56442%$4,845$282
SMITHVILLE282.1$17,306$7,12241%$7,837$715
SNYDER444.8$12,942$6,37249%$7,054$682
SOPER400.1$10,831$5,04447%$5,411$367
SOUTH COFFEYVILLE260.9$8,519$5,25062%$5,262$12
SOUTH ROCK CREEK410.8$11,391$4,86043%$4,666($193)
SPAVINAW88.7$13,443$5,80743%$4,822($985)
SPERRY1,234.30$10,937$4,70043%$5,044$344
SPIRO1,127.10$10,115$4,92149%$5,502$581
SPRINGER204.9$19,601$5,52728%$8,427$2,899
STERLING408.4$10,636$5,16749%$5,749$583
STIDHAM100$10,527$6,43461%$5,493($941)
STIGLER1,372.50$9,909$4,99850%$5,905$907
STILLWATER6,151.50$12,062$4,83840%$5,332$494
STILWELL1,349.00$11,342$5,36547%$6,698$1,333
STONEWALL454.7$12,602$5,98047%$6,148$168
STRAIGHT47.6$22,868$5,38124%$7,962$2,581
STRATFORD712$11,316$4,99944%$6,071$1,072
STRINGTOWN257.9$11,330$5,78951%$5,023($766)
STROTHER420.3$8,340$4,84958%$4,673($176)
STROUD814.4$29,470$4,80316%$5,718$914
STUART281.6$14,106$5,08736%$5,940$854
SULPHUR1,559.40$9,106$4,85653%$5,118$262
SWEETWATER128.3$81,846$6,4058%$11,474$5,069
SWINK175.8$13,121$6,33748%$5,132($1,206)
TAHLEQUAH3,494.80$12,046$5,26044%$5,952$692
TALIHINA605.4$10,484$5,15449%$6,549$1,395
TALOGA75.8$60,854$10,52917%$14,984$4,454
TANNEHILL171.9$13,583$5,90643%$6,198$292
TECUMSEH2,249.60$9,246$4,77652%$5,557$781
TEMPLE173.2$12,492$5,85447%$5,760($94)
TENKILLER292.2$14,180$6,11343%$6,762$650
TERRAL66$19,338$8,82246%$7,195($1,628)
TEXHOMA282.1$14,465$6,16543%$5,184($981)
THACKERVILLE323.9$14,548$5,89541%$6,110$215
THOMAS-FAY-CUSTER UNIFIED DIST490.6$14,489$6,05542%$6,022($33)
TIMBERLAKE281.6$35,861$6,36118%$10,864$4,503
TIPTON321.1$15,211$6,14440%$8,883$2,739
TISHOMINGO981.2$11,109$4,75343%$6,219$1,466
TONKAWA727.3$10,622$4,66644%$5,342$676
TULSA39,497.30$15,014$5,20535%$6,051$846
TUPELO271$13,746$5,88943%$6,113$224
TURKEY FORD92.4$12,353$5,64546%$5,831$185
TURNER329.1$15,972$5,96937%$5,830($138)
TURPIN428.3$15,394$6,09140%$6,863$772
TUSHKA455.6$11,024$5,02946%$5,258$229
TUSKAHOMA81.8$16,047$7,47947%$7,568$89
TUTTLE1,834.90$10,355$4,54644%$4,610$64
TWIN HILLS368.8$10,370$5,07049%$4,936($134)
TYRONE248.8$11,254$4,99844%$4,953($45)
UNION15,699.60$17,262$4,96029%$5,128$168
UNION CITY295.9$11,789$5,16044%$5,014($145)
VALLIANT896.8$13,046$5,07639%$5,628$552
VANOSS534.6$12,192$5,31844%$5,302($16)
VARNUM294.8$11,630$4,92542%$5,262$337
VELMA-ALMA485.8$13,650$5,37339%$5,965$592
VERDEN264.6$12,082$5,10842%$6,500$1,392
VERDIGRIS1,255.70$15,529$4,60030%$4,712$112
VIAN1,014.00$9,378$4,74251%$5,038$296
VICI347.9$17,381$6,02335%$6,626$603
VINITA1,623.50$10,225$5,08650%$5,706$620
WAGONER2,289.60$9,478$4,94152%$5,110$169
WAINWRIGHT119.9$12,837$6,40150%$5,635($767)
WALTERS727$9,110$4,63851%$4,903$264
WANETTE185.6$15,061$5,99940%$9,539$3,539
WAPANUCKA249.1$12,774$5,59444%$5,711$118
WARNER765.4$11,097$4,98445%$5,684$699
WASHINGTON997.6$8,841$4,43850%$4,475$37
WATONGA765.8$12,567$4,91639%$5,627$711
WATTS337.5$9,928$5,45855%$5,095($363)
WAUKOMIS394.3$11,255$4,91144%$4,941$30
WAURIKA416.1$11,761$6,14252%$5,820($322)
WAYNE542.9$14,474$5,34937%$5,270($78)
WAYNOKA293.2$27,528$6,13122%$6,784$652
WEATHERFORD2,244.60$14,123$4,68533%$4,990$305
WEBBERS FALLS269.2$15,253$5,68637%$5,668($18)
WELCH337.6$13,055$6,70651%$6,898$191
WELEETKA415.8$12,120$5,93649%$6,411$475
WELLSTON640.9$9,415$4,79551%$4,849$54
WESTERN HEIGHTS3,805.30$13,928$5,10937%$5,860$751
WESTVILLE1,139.30$8,771$5,01557%$5,994$979
WETUMKA462.7$12,273$5,21342%$5,753$541
WEWOKA789.3$14,062$5,00436%$6,318$1,314
WHITE OAK42.7$37,266$7,41020%$9,342$1,932
WHITE ROCK127.9$11,034$5,73752%$6,034$297
WHITEBEAD400.9$8,786$4,83555%$5,470$634
WHITEFIELD130.8$8,695$5,47763%$5,412($64)
WHITESBORO209.4$13,288$7,40956%$6,848($561)
WICKLIFFE144.6$12,501$5,31643%$6,641$1,325
WILBURTON910.7$10,015$4,88449%$5,699$815
WILSON480.7$12,160$5,00641%$5,998$992
WILSON229.8$11,062$5,40849%$6,426$1,018
WISTER596.3$8,970$4,83554%$5,051$215
WOODALL482.8$13,363$5,05638%$5,621$565
WOODLAND439.2$13,581$6,36947%$6,070($299)
WOODWARD3,026.00$12,327$4,67638%$5,552$876
WRIGHT CITY458.1$10,289$5,11050%$5,851$741
WYANDOTTE816.7$11,671$4,65540%$5,432$776
WYNNEWOOD708.8$11,264$4,85343%$5,928$1,075
WYNONA118.9$12,179$5,79648%$5,693($103)
YALE449$10,509$5,21850%$5,663$445
YARBROUGH123.9$21,071$8,07638%$7,072($1,004)
YUKON8,143.20$11,482$4,74841%$4,765$17
ZANEIS279.3$11,094$5,10646%$4,549($557)
ZION354.4$9,823$5,08852%$6,108$1,020
STATEWIDE682,053.10$12,746$4,87938%$5,522$643

* Note: Average variable cost is based on only Instruction costs; it omits all other costs, including Student Support Services, Instructional Staff Support Services, Adminstration, Student Transportation Services, Enterprise Operations, Child Nutrition Programs Operations, Operation and Maintenance of Plant Services, Community Services Operations, all capital outlay, and Debt Service.


State aid per ADM is computing by applying the ratio, WADM/ADM, to the State Aid Factor, equal to $3,053.60 and derived using data from the OK DOE's State Aid Allocation 2015-2016, Tentative Final State Allocation report, http://sde.ok.gov/sde/sites/ok.gov.sde/files/documents/files/B17004W%20%20Calc.%20010816.pdf


Source: State Expenditure And Revenue Reports From OCAS, https://sdeweb01.sde.ok.gov/OCAS_Reporting/StateReports.aspx


Note: parentheses indicates negative number

For a full breakdown of every Oklahoma school district, see the table below. If you would like to contact the author for more information regarding these calculations, please comment below or email marty@edchoice.org.


1. The mechanics of school funding in Oklahoma are complex, and estimating the state foundation aid per student is no straightforward task.

To compute state aid per pupil, one must first calculate the state aid factor per weighted average daily membership (WADM). I used financial data from the OKDOE. I start with two components, the Foundation Aid Factor ($1,601.00) and the Salary Incentive Aid Guarantee Factor ($72.63). The State Aid Factor is obtained by multiplying $72.63 by 20 and adding this result to the Foundation Aid Factor. This yields $3,053.60.

I then multiply this amount by the WADM (1,123,016.13 for SY 2015-16), getting $3.429 million. Dividing this result by the (unweighted) Average Daily Membership (ADM) of 688,274.2 yields $4,982 per ADM. This is the base amount on which the ESA is determined. I’ll refer to this amount as average state aid. It should be noted that this amount, in practice, will vary by student as it depends on their individual characteristics (e.g. whether they have special needs, are enrolled in free and reduced-price lunch programs, etc.). It is simply not practical to account for every possible permutation (in terms of student enrollment and student characteristics) for this program. Instead, I will estimate “average” impacts on both the state and school districts.