Oklahoma Senate Bill SB579

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23
• Report Pass: 2/13/23
• Refer: 2/13/23

Caption

Ad valorem; creating School District Ad Valorem Protest Assistance Revolving Fund; authorizing loans and one-time funds for school districts, Effective date.

Impact

If enacted, SB579 is expected to significantly impact how school districts manage their finances during periods of budget shortfall caused by external factors. By providing loans equivalent to the amount that districts would have received from taxes held in protest, and one-time funds accounting for valuation errors, the legislation intends to mitigate the financial strain on schools, allowing them to continue functioning effectively even when tax revenues fluctuate.

Summary

Senate Bill 579 aims to establish the School District Ad Valorem Protest Assistance Revolving Fund, which will provide financial support to local school districts affected by reductions in funding due to ad valorem protests. The bill proposes that the State Board of Education will oversee the fund, allowing it to offer loans and one-time financial assistance to districts whose budgets have been adversely impacted by these protests or errors in property valuation by county assessors. This approach is designed to ensure that schools can maintain stable operations despite unexpected fiscal challenges.

Contention

Notably, the bill highlights a potential point of contention regarding the availability of sufficient funds in the revolving fund to meet the demand for loans and grants from multiple school districts simultaneously. Critics may raise concerns about the sustainability of such a fund and the impacts on state financial planning. Additionally, the bill's implementation depends on the efficient management of applications and timely disbursement of funds, which will be crucial in addressing the financial needs of affected districts.