House Bill No. 1086, introduced by Representative Lowe, seeks to amend Oklahoma's school funding laws by updating statutory references and modifying the calculation of per pupil revenue for state aid. A significant change includes the removal of language that previously exempted certain funds from the general fund carryover calculation, allowing for a more thorough evaluation of school district finances. The bill also introduces provisions permitting school districts to make capital expenditures from the general fund under specific conditions, such as when a school building is destroyed by a disaster and other funding sources are inadequate. Additionally, it clarifies definitions of capital and noncapital expenditures and establishes guidelines for utilizing state-dedicated revenues and county sources.

The bill further enhances the calculation and distribution of State Aid by implementing a new student identification system to improve enrollment data reporting and educational program administration. It mandates the State Department of Education to develop this system by June 30, 1998, with funding allocated through a separate line item in the State Board of Education's appropriation bill. The legislation also outlines conditions for adjusting State Aid based on uncollectible ad valorem taxes, introduces penalties for excessive general fund carryover, and specifies exemptions from penalties under certain circumstances. The bill allows for advanced State Aid funding for early childhood programs and is set to take effect on July 1, 2025, with an emergency clause for immediate implementation upon passage.