STATE AID PREDICTIONS
The greatest game in school finance prognostication is to predict what the state aid factors will be. This is like reading tea leaves and thinking you have a clue. We believe the factor will be somewhere around depending on the initial WADM calculation. That’s a guess based on the analysis of factors. Our model has had numbers from $3,326 to $3,459 in the most perfect situation, but the most reliable and consistent number when we ran the model was around give or take $5/WADM. I realize this sound like a weather forecast, but it is important to remember these numbers aren’t real until after we see the actual WADM and how chargeables are calculated.
One major unforeseen positive that came out of the Supreme Court ruling is Oklahoma schools' credit rating. Moody’s released a report on Friday, June 29 stating schools' credit rating became more credit positive with Supreme Court ruling. The main reason is that State Aid will offset the teacher pay raises. This will have the tendency to charge more
interest on items such as lease-purchases, bond issues and other simple debt instruments.