Bill No. 706, introduced by Senator Pugh and Representative Lowe, amends existing laws related to school funding in Oklahoma by updating statutory references and removing exemptions for certain funds from the general fund carryover calculation. The bill modifies the calculation of per pupil revenue, eliminates limitations on school district general fund carryover, and repeals a previous section related to State Aid. New provisions are inserted to provide greater flexibility for school districts in managing their general funds, particularly allowing the use of general fund revenues for capital expenditures under specific conditions, such as rejected bond issues or low property valuations.

Additionally, the bill establishes a new framework for determining Salary Incentive Aid based on a district's weighted average daily membership and assessed valuation, while detailing adjustments for uncollectible ad valorem taxes. It deletes previous penalties for excess carryover in general funds, which affected State Aid, and introduces guidelines for advanced funding to support early childhood programs. The bill also mandates the development of a student identification system by June 30, 1998, and updates reporting requirements for state agencies to improve financial data tracking. The act is set to take effect on July 1, 2025, with an emergency clause for immediate implementation upon passage.