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 eliminates limitations on school district general fund carryover, modifies the method for calculating carryover amounts, and repeals penalties for exceeding those limitations. It also streamlines the funding process by repealing a previous section of law related to State Aid, allowing for greater flexibility in how school districts utilize their general funds, particularly in capital expenditures under specific conditions.

Additionally, the bill establishes a new framework for determining Salary Incentive Aid based on weighted average daily membership and assessed valuation, while addressing adjustments for uncollectible ad valorem taxes. It mandates the development of a student identification system by June 30, 1998, to improve data collection for enrollment and funding. Significant deletions include the removal of penalties related to general fund carryover amounts and updates to reporting requirements for state agencies to ensure accurate data is provided to the State Department of Education. The act is set to take effect on July 1, 2025, with an emergency clause for immediate implementation upon passage and approval.