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 language that previously exempted certain funds from the calculation of general fund carryover. 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, thereby streamlining the funding process for school districts. It also introduces changes to the definitions and classifications of capital and noncapital expenditures, allowing for greater flexibility in utilizing general funds, particularly permitting capital expenditures under specific conditions.

Additionally, the bill establishes a new student identification system to enhance enrollment data reporting and outlines the process for determining Salary Incentive Aid based on weighted average daily membership and adjusted assessed valuation. Significant deletions include the removal of penalties for school districts with excess carryover in their general fund and various exemptions related to those penalties. The bill modifies reporting requirements for state agencies to ensure timely data provision to the State Department of Education and is set to take effect on July 1, 2025, with an emergency clause for immediate implementation upon passage.