This bill amends 70 O.S. 2021, Section 5-141, which governs administrator compensation and benefits in Oklahoma school districts. It introduces a prohibition against using State Aid funds for certain administrative expenses, specifically severance payments, contract buyouts, or termination settlements for superintendents and central office administrators. These payments are classified as excess administrative expenditures and must be funded exclusively with local revenue. Additionally, the bill defines the term "administrator" to include superintendents, assistant superintendents, principals, and assistant principals, and outlines what constitutes "administrative expenditures."

The bill also updates internal citations within the law and mandates that school districts adopt a minimum salary schedule for teachers, which must be submitted to the State Board of Education. It emphasizes that salaries for teachers should not be calculated solely based on the salaries of administrators and encourages districts to create compensation schedules that reflect their specific policies and circumstances. The State Department of Education is tasked with compiling and reporting the minimum salary schedules for all school districts annually. The effective date for this act is set for November 1, 2026.