Okla. Stat. tit. 70, § 70-18-124

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;

Oklahoma Statutes - Title 70. Schools Page 846

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
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.