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An Act
ENROLLED SENATE
BILL NO. 1126 By: Hall and Haste of the
Senate
and
Caldwell (Trey) and Kane of
the House
An Act relating to education; specifying
apportionment of certain appropriated funds;
providing for the budgeting of funds in certain
categories and amounts; requiring development of
certain performance measures; requiring transfers of
certain funds; limiting authority to reduce certain
apportionments; requiring certain funds to be
expended for certain purposes; stating purposes for
allocated funds; requiring certain transfer of funds;
stating legislative intent regarding expenditures for
direct costs; prohibiting the State Department of
Education from contracting for certain administrative
costs in certain program; providing for duties and
compensation of employees of the State Department of
Education; requiring the reduction or withholding of
State Aid funds for certain purposes; authorizing the
State Board of Education to request transfer of
certain funds; authorizing the request of early
allocations for certain funds; requiring proportional
reductions of allocations under certain conditions;
authorizing exemption from budgetary limits for
unanticipated federal funds; providing procedures;
requiring approval of exemption request under certain
conditions; requiring budgeting of certain funds in
certain years; requiring certain budgeting
procedures; prohibiting certain budgeting procedures;
providing an effective date; and declaring an
emergency.
ENR. S. B. NO. 1126 Page 2
SUBJECT: State Department of Education budget limits
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. For the fiscal year ending June 30, 2026, for the
support of public school activities by the State Board of Education
payable from monies appropriated and authorized by Enrolled House
Bill No. 2766 of the 1st Session of the 60th Oklahoma Legislature
shall be apportioned as follows:
1. Funds appropriated and authorized by Sections 1, 2, 3, 4, 5,
6, 7, and 18 of Enrolled House Bill No. 2766 of the 1st Session of
the 60th Oklahoma Legislature:
Local- and State-supported
Financial Support of Public
Schools $3,120,730,927.00
SUBTOTAL, PARAGRAPH 1 $3,120,730,927.00
2. Funds appropriated by Sections 8, 9, 10, 12, 17, and 19 of
Enrolled House Bill No. 2766 of the 1st Session of the 60th Oklahoma
Legislature:
Certified Employee Health Benefit
Allowance $410,851,159.00
Support Employee Health Benefit
Allowance $247,723,418.00
Teachers’ Retirement Credit $35,000,000.00
Purchase of Textbooks and
Instructional Materials $45,190,000.00
Public School Paid Maternity Leave
Revolving Fund $6,500,000.00
Student Teacher Compensation $2,650,000.00
Alternative and High Challenge
Education $14,000,000.00
ENR. S. B. NO. 1126 Page 3
Education Leadership Oklahoma $4,500,000.00
Advanced Placement Incentives $1,559,863.00
Strong Readers Act $17,500,000.00
Required Assessments $13,405,685.00
Street School $200,000.00
Ag in the Classroom $38,000.00
Imagine Math $1,000,000.00
Imagine Reading $1,000,000.00
Oklahoma Imagination Library
Program $2,000,000.00
Oklahoma Arts Institute $320,000.00
Early Intervention $16,725,341.00
Great Expectations $500,000.00
Early Childhood Initiative $14,000,000.00
School Lunch Matching $3,140,137.00
Nationally Recognized Career
Readiness Assessments $250,000.00
Civil Rights Curriculum $50,000.00
SUBTOTAL, PARAGRAPH 2 $838,103,603.00
3. Funds appropriated by Section 11 of Enrolled House Bill No.
2766 of the 1st Session of the 60th Oklahoma Legislature:
ENR. S. B. NO. 1126 Page 4
Administrative and Support
Functions of the State Department
of Education $18,145,366.00
SUBTOTAL, PARAGRAPH 3 $18,145,366.00
TOTAL State School Aid and Programs $3,976,979,896.00
SECTION 2. For the fiscal year ending June 30, 2026, the State
Board of Education shall budget all funds in the following
categories and amounts:
Category Total
Payroll, Salaries or Wages, $22,627,959.00
Including Tax-sheltered Deferment
Contracts and Longevity Payments
Authorized by State Statutes
Professional and Personal Services
Contracts $33,645,498.00
Other Operating Funds $3,927,205,809.00
Expenditure of Federal Funds $634,934,710.00
TOTAL $4,618,413,9761.00
The agency shall develop outcome-based performance measures for
each budget category.
SECTION 3. The funds appropriated in Sections 13 and 14 of
Enrolled House Bill No. 2766 of the 1st Session of the 60th Oklahoma
Legislature in the amount of Three Million Two Hundred Fifty
Thousand Dollars ($3,250,000.00) shall be transferred to the School
Consolidation Assistance Fund.
SECTION 4. The funds appropriated in Sections 15 and 16 of
Enrolled House Bill No. 2766 of the 1st Session of the 60th Oklahoma
Legislature in the amount of Three Million Two Hundred Fifty
Thousand Dollars ($3,250,000.00) shall be transferred to the
Teachers’ Retirement System Dedicated Revenue Revolving Fund.
ENR. S. B. NO. 1126 Page 5
SECTION 5. The funds allocated in Section 1 of this act
specifically for the purpose of funding the Teachers’ Retirement
Credit shall be transferred to the Teachers’ Retirement System of
Oklahoma.
SECTION 6. If the funds allocated in Section 1 of this act
specifically for the purpose of funding the Teachers’ Retirement
Credit are insufficient to fully fund the employee contribution
credits provided for in Section 17-108.2 of Title 70 of the Oklahoma
Statutes as invoiced by the Teachers’ Retirement System of Oklahoma,
the State Department of Education may reduce in equal proportions
funds allocated in Section 1 of this act to Alternative and High
Challenge Education, Education Leadership Oklahoma, Advanced
Placement Incentives, Strong Readers Act, Required Assessments,
Street School, Ag in the Classroom, Imagine Math, Imagine Reading,
Oklahoma Imagination Library Program, Oklahoma Arts Institute, Great
Expectations, Nationally Recognized Career Readiness Assessments,
and Civil Rights Curriculum. The total amount of funds reduced
shall not exceed the additional amount required to fully fund the
employee contribution credits.
SECTION 7. The funds allocated in Section 1 of this act for the
purpose of funding Education Leadership Oklahoma shall be expended
as follows:
1. Two Hundred Fifty Thousand Dollars ($250,000.00) shall be
transferred to the Oklahoma National Board Certification Revolving
Fund, created in Section 6-204.4 of Title 70 of the Oklahoma
Statutes, for the purpose of awarding annual bonuses as directed;
and
2. Four Million Two Hundred Fifty Thousand Dollars
($4,250,000.00) shall be transferred to the Oklahoma School
Psychologist, Speech-Language Pathologist, and Audiologist National
Certification Revolving Fund, created in Section 6-206.1 of Title 70
of the Oklahoma Statutes, for the purpose of awarding annual bonuses
as directed.
SECTION 8. The funds allocated in Section 1 of this act for
Advanced Placement Incentives shall be expended for the purpose of
providing assistance for students in financial need, providing
ENR. S. B. NO. 1126 Page 6
grants to districts wanting to start new advanced placement (AP)
programs, and expanding professional development, pursuant to the
provisions of Section 1210.703 of Title 70 of the Oklahoma Statutes.
SECTION 9. The funds allocated in Section 1 of this act for the
Strong Readers Act shall be expended pursuant to the provisions of
Section 1210.508A et seq. of Title 70 of the Oklahoma Statutes.
SECTION 10. The funds allocated in Section 1 of this act for
Required Assessments shall be expended for the purpose of
administering a statewide student assessment system for grades three
through twelve, pursuant to Section 1210.508 of Title 70 of the
Oklahoma Statutes.
SECTION 11. The funds allocated in Section 1 of this act for
Alternative and High Challenge Education shall be expended for the
purpose of operating the statewide system of alternative education
programs, as provided in Section 1210.568 of Title 70 of the
Oklahoma Statutes, and for encouraging school districts to
participate in innovative alternative education programs.
SECTION 12. The funds allocated in Section 1 of this act for
Early Intervention shall be transferred to the Early Intervention
Revolving Fund (250). It is the intent of the Legislature that
funding available for SoonerStart Early Intervention Services be
expended for direct services to eligible infants and toddlers and
their families. The State Department of Education shall not
contract, pay, or reimburse for administrative cost recovery
personnel, accounting, management information system costs, and
maintenance and operations at the state or local level or indirect
costs which do not comply with the requirements of Section 13-125 of
Title 70 of the Oklahoma Statutes.
SECTION 13. The funds allocated in Section 1 of this act for
the Early Childhood Initiative shall be expended for the purpose of
funding the early childhood program pursuant to the provisions of
Section 10-105.4 of Title 70 of the Oklahoma Statutes.
SECTION 14. Of the funds allocated in Section 1 of Enrolled
House Bill No. 2766 of the 1st Session of the 60th Oklahoma
Legislature, Five Million Dollars ($5,000,000.00) shall be deposited
in the Grow Your Own Educator Revolving Fund pursuant to the
ENR. S. B. NO. 1126 Page 7
provisions of Section 2 of Enrolled Senate Bill No. 235 of the 1st
Session of the 60th Oklahoma Legislature.
SECTION 15. The funds allocated in Section 1 of this act for
Civil Rights Curriculum shall be expended pursuant to the provisions
of Section 11.103.6p of Title 70 the Oklahoma Statutes.
SECTION 16. State Aid funds shall be reduced or withheld by the
State Board of Education in an amount necessary to ensure compliance
with this act.
SECTION 17. The State Board of Education is authorized to
request the Office of Management and Enterprise Services to transfer
appropriated funds to the appropriate dispensing fund.
SECTION 18. The Superintendent of Public Instruction may
request through the Director of the Office of Management and
Enterprise Services the early transfer by the Oklahoma Tax
Commission of tax collections to the Education Reform Revolving Fund
for the purpose of early allocation to the State Board of
Education’s disbursing funds to alleviate cash-flow problems.
SECTION 19. If funds appropriated in Sections 1 through 19 of
Enrolled House Bill No. 2766 of the 1st Session of the 60th Oklahoma
Legislature are not sufficient to fully fund the provisions of this
act, each school district that qualifies for funds, excluding
Financial Support of Public Schools, pursuant to the provisions of
this act shall take a proportionate reduction.
SECTION 20. A. The Superintendent of Public Instruction may
request, in the manner provided in this section, that receipt and
expenditure of unanticipated federal funds awarded after July 1,
2024, be exempt from expenditure limitations and from budgetary
limitations.
1. The Superintendent shall make a request for exemption to the
Office of Management and Enterprise Services in writing and file a
revised budget work program.
2. The Superintendent shall also file copies of the request for
exemption and budget work program revisions with the chair of the
Appropriations Committee of the Oklahoma State Senate and the chair
ENR. S. B. NO. 1126 Page 8
of the Appropriations and Budget Committee of the Oklahoma House of
Representatives. The chair of the Appropriations Committee of the
Oklahoma State Senate and/or the chair of the Appropriations and
Budget Committee of the Oklahoma House of Representatives shall
notify the Office of Management and Enterprise Services of any
noncompliance of the request with legislative intent within twelve
(12) calendar days of receipt of the exemption request.
B. The Office of Management and Enterprise Services shall
approve the request for exemption unless both the chair and vice
chair of the Legislative Oversight Committee on State Budget
Performance provide written notification to the Office of Management
and Enterprise Services within twelve (12) calendar days of the
Committee’s receipt of the exemption request that the exemption
subverts the intention and objectives of the Legislature in
establishing the original limit. The Office of Management and
Enterprise Services shall give written notice of approval or
disapproval of each exemption to the agency, the Governor, the chair
of the Appropriations Committee of the Oklahoma State Senate, and
the chair of the Appropriations and Budget Committee of the Oklahoma
House of Representatives within eighteen (18) calendar days of
receiving the request.
SECTION 21. It is the intent of the Legislature that compliance
with the provisions of this act is enforceable pursuant to the
provisions of paragraph 9 of subsection A of Section 18b of Title 74
of the Oklahoma Statutes.
SECTION 22. This act shall become effective July 1, 2025.
SECTION 23. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. S. B. NO. 1126 Page 9
Passed the Senate the 20th day of May, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 22nd day of May, 2025.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________