SB 706 Oklahoma Senate · 2026 Regular Session

School funding; removing limitations on school district general fund carryover and penalties for exceeding limitations. Effective date. Emergency.

SB 706 removes restrictions on Oklahoma school districts' ability to carry over unused general fund money from one fiscal year to the next and eliminates penalties for exceeding previous spending limits. It directly affects all public school districts by updating funding rules in statutes (70 O.S. §§ 1-117 and 18-200.1) to allow districts greater flexibility in managing operating funds. The bill amends language defining "general fund" and repeals prior limitations on carryover amounts and penalties. This change simplifies financial administration without altering how districts receive state aid or fund capital projects.

Issues: ✓ Education

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2025

Committee Review

Apr 2026

Senate Passage

Mar 2025

House Passage

Governor

Introduced Feb 3, 2025 Last action Apr 13, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

Proposed Committee Substitute (sub committee) 1 → Floor (Senate) · 6 edits

MODERATE

The bill was completely rewritten to replace a committee substitute version with a Senate Floor version. The new text shifts the focus from a specific 'Grow Your Own Educator' program to a broader definition of school district general funds, clarifying what counts as capital versus noncapital expenditures. It also updates the legal citation for State Aid and repeals an older, conflicting section regarding State Aid.

Scope change

The bill's scope expanded from a narrow focus on teacher recruitment grants to a comprehensive update of school funding definitions and expenditure rules.

DEFINITION

The definition of 'general fund' was updated to explicitly exclude special building fund levies and bond proceeds, clarifying that these must be kept separate.

Detailed definitions for 'capital expenditures' and 'noncapital expenditures' were added, specifying exactly which purchases (like land, construction, or repairs) count as each.

ELIGIBILITY

The specific 'Grow Your Own Educator Program' and its eligibility criteria for tuition assistance were removed from the text.

FISCAL

The 'Grow Your Own Educator Revolving Fund' and rules for matching grants were removed.

SCOPE

The bill now includes provisions allowing school districts to use general funds to rebuild facilities destroyed by fire or natural disasters if insurance and state aid are insufficient.

TECHNICAL

The statutory citation for State Aid was updated to reflect the current law, and an older, conflicting section was repealed.

Floor votes · Senate Mar 12, 2025

How they voted

46–0

Passed · 3 other

Total votes 49

Mar 12, 2025

D Democratic9

9 Yea

100% Yea

R Republican40

37 Yea 3

92% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 13, 2026

Lower · Passed

Recommendation to the full committee; Do Pass, amended by committee substitute Appropriations and Budget Education Subcommittee

lower

Apr 2, 2025

Committee

Referred to Appropriations and Budget Education Subcommittee

lower

Mar 13, 2025

Introduced

First Reading

lower

Mar 13, 2025

Upper · Passed

Engrossed to House

upper

Mar 12, 2025

Committee

Referred for engrossment

upper

Mar 12, 2025

Upper · Passed

Measure and Emergency passed: Ayes: 44 Nays: 0

upper

Feb 11, 2025

Upper · Passed

Reported Do Pass Education committee; CR filed

upper

Feb 3, 2025

Introduced

First Reading

upper

2 primary · 0 co-sponsors