House Unveils Education Budget Plan

The state House of Representatives filed new bill language that would tie $500 million in new education funding, including a teacher pay raise, to a tax credit for families who homeschool or send their children to private school. The four components have since been split into two bills both of which passed in committee on Thursday. Below are the details as the bills are currently written.

HB 2775:

Teacher Pay Raise

● $150 million for a $2,500 across-the-board teacher pay raise.

● The raise would be mandated for “active classroom teachers” working in an Oklahoma public school this year who remain at the same school next year.The raise would not increase the statewide minimum salary schedule, and teachers would receive the full raise even if their district pays above the state minimum.

● This money would flow through the school funding formula.

Redbud Fund

● An additional $50 million for Redbud school grants, which helps with building-related needs for public schools that receive little or no building fund revenue.

Oklahoma Student Fund

● $300 million distributed on a per-student basis with a $2 million per-district limit.

● The bill lists a variety of ways the additional funding could be spent; specifically prohibits spending on administrator salaries.

● This money would not go through the school funding formula so every district would benefit.

● The $2 million cap would mean the state’s largest school districts would receive less per student than smaller districts.

● The largest districts could receive as little as $61 per student and at least $100 million would be redistributed among smaller districts.

HB 1935:

Oklahoma Parental Choice Tax Credit Program

● Private school: Up to $5,000 tax credit per student attending an accredited private school.

● Home school: Up to $2,500 tax credit per home-school student for qualified expenses.

● Based on qualified expenses and refundable so the tax filer could receive a refund even if they don’t owe taxes.

● Tax filers with a student who receives a Lindsey Nicole Henry voucher to attend a private school would be eligible.

● Tax credits would be temporarily suspended if education appropriations fall below that for fiscal year 2024.

● Tax credits would be reduced proportionally in the event of a statewide revenue failure.

● State tax and education officials would be required to verify a student claimed by a taxpayer receiving a credit isn’t enrolled in an Oklahoma public school.

● Tax filers claiming either tax credit would need to maintain receipts documenting the qualified expenses.