FY 23 Redbud School Grant Update

Dear Superintendent,

During FY 22, $32.5 million was distributed to districts and eligible charter schools in the first year of the Redbud School Grant. The initial allocation was in January 2022 and then adjusted in June 2022.  However,  FY 23 will not be done in the same format and therefore we would like to alert you of the status of Redbud School Grant allocations for this school year.

The Oklahoma State Department of Education has to date received only one deposit in July in the amount of $2.8 million and this is from FY 22 collections. Pursuant to  SB229, Section 2 (C), FY 23 Apportionment of Medical Marijuana seven percent (7%) excise tax is as follows:

• Proceeds of the seven percent (7%) levy will first go to cover the FY 23 Oklahoma Medical Marijuana Authority (OMMA) budget; any surplus will then be apportioned:
  • 75% to General Revenue for Redbud School Grants;
  • 25% to Drug and Alcohol Rehab Fund

Additionally, per 68 O.S. 2021, Section 1353, from General Revenue, an amount shall be apportioned to Redbud School Grants, if any, pursuant to Title 70 Section 3-104, not to exceed state sales tax generated by Medical Marijuana sales in the preceding year.  If the 75% to General Revenue amount does not fully fund Redbud by the last month of the fiscal year, an amount up to $38,709,798 will be apportioned from sales tax in the last month of the fiscal year to fund Redbud through apportionment to General Revenue.

For FY 23, The Oklahoma Tax Commission forecasted $59,565,000 for the gross Medical Marijuana collections.  In addition, OMMA provided a budget figure of $57,389,441.  As a result, the vast majority of FY 23 Redbud funding will come from the Medical Marijuana sales tax, which will not be available until the end of the fiscal year.

Throughout this fiscal year, we will provide funding updates on the FY 23 Redbud School Grants.   

Please contact the State Aid office if you have any questions.