House Bill No. 1086, introduced by Representative Lowe, seeks to amend Oklahoma's school funding laws by updating statutory references and removing exemptions for certain funds from the general fund carryover calculation. The bill modifies 70 O.S. 2021, Section 1-117, and adjusts the calculation of per pupil revenue in 70 O.S. 2021, Section 18-200.1, to ensure that the funding formula accurately reflects state-dedicated revenues from the previous fiscal year. It also introduces provisions for capital expenditures from the general fund under specific circumstances, such as disaster recovery, and clarifies definitions related to capital and noncapital expenditures.

Additionally, the bill establishes a new student identification system to improve enrollment data reporting and outlines the process for determining Salary Incentive Aid based on weighted average daily membership and assessed valuation. It specifies conditions for reducing state aid due to uncollectible taxes or excess carryover and provides exemptions from penalties related to general fund balance carryover in certain situations. The bill mandates monthly financial reporting from the Oklahoma Tax Commission and other state offices to the State Department of Education. With an effective date of July 1, 2025, the bill includes an emergency clause for immediate implementation upon passage.