The bill amends 70 O.S. 2021, Section 18-200.1, which governs State Aid for school districts in Oklahoma. It eliminates previous restrictions on the general fund carryover for school districts, including the calculation method and penalties for exceeding limits. The bill also updates statutory language and repeals an earlier amendment related to State Aid. It establishes that the initial allocation of State Aid for each school district will be based on actual state revenues, assessed valuations, and weighted average daily membership from the previous fiscal year. Additionally, it mandates that the State Department of Education retain a portion of total appropriated funds for midyear adjustments and outlines the calculation process for various types of State Aid while ensuring that January payments do not decrease significantly.

Moreover, the bill proposes amendments to funding and reporting requirements for early childhood education programs, removing the penalty for school districts starting early childhood instruction in 2024 and clarifying that federal revenue will not factor into the general fund balance penalty. It establishes a process for districts to apply for advanced State Aid funding for early childhood programs, with specific deadlines. The bill also requires state and county offices, including the Oklahoma Tax Commission, to report monthly financial information to the State Department of Education. It repeals a previous section of law, sets an effective date of July 1, 2026, and declares an emergency for immediate implementation upon passage and approval.