The bill establishes the Oklahoma School Districts Carryover Investment Fund, enabling school districts to create individual accounts for investing carryover funds from their general fund. The State Treasurer will appoint qualified investment managers to oversee these investments, which must align with state retirement fund strategies. The bill outlines specific requirements for deposits and withdrawals, including a 30-day notification period for transactions, and mandates that investment managers maintain a reasonable level of liquidity. It also allows for the realization of losses if beneficial for long-term returns.

Additionally, the bill amends existing law regarding the calculation of State Aid for school districts by excluding certain carryover funds from reductions in State Aid, thus preventing penalties for maintaining a carryover balance above specified thresholds. It introduces exemptions from penalties for school districts receiving increased state aid or facing significant losses, particularly if exceeding 40% of their allocation. The legislation clarifies that carryover amounts in the general fund will not be penalized under certain conditions and allows for advanced state aid funding for early childhood programs. The act is set to take effect on November 1, 2025.