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b e t t e r s chools | SP R I N G 2 0 2 4
The Enduring Impact of House Bill 1017 on Oklahoma Public Education More than 30 years after its passage, CCOSA is working to ensure funding from this landmark law is aligned with its intent. Since its approval more than 30 years ago, House Bill 1017 (HB 1017) has become a bedrock for Oklahoma public education, its influence still present in many aspects of schools. Its ultimate passage, however, was not an easy feat. The 1980s was a tumultuous time in Oklahoma public schools, with several lawsuits centered around the lack of equity in school funding across the state. In 1980, a group of schools formed the Fair School Finance Council of Oklahoma (FSFC), and in 1990, forty of those schools filed suit against the state, contending the state’s funding system delivered insufficient funds to offer an adequate education to all students. During this time, an education reform study, Task Force 2000, recommended several reform measures to the legislature to address large class sizes, teacher pay and certification, and state testing. Due to the task force, the efforts of FSFC, and a potential teacher walkout, HB 1017 was approved. It is important to note that Republican governor Henry Bellmon championed this reform effort. It did not come without a fight. Opposition to the tax increases needed to fund the new law was significant. Ultimately, a 1991 vote of the people established that no further tax increases could be passed without a 3/4th majority vote of the legislature or a vote of the people. That compromise has proven to be problematic – it has been very difficult to pass a tax increase for needed services since its passage. HB 1017 stands as possibly the most significant education reform measure ever passed by the Oklahoma legislature. The law created the Education Reform Revolving Fund (ERRF) which, along with the general revenue fund, mineral leasing fund, education technology fund, and lottery fund, provide all the money for the state funding formula. CCOSA monitors these funds on a monthly basis, and in summer 2023, we noted that the ERRF had reserves of over $500 million, funds that should be allocated to schools for the reforms established in HB 1017.
In recent months, Oklahoma elected officials have proposed using ERRF reserves for initiatives outside the scope of HB 1017. Because of CCOSA’s monitoring of the funds, we researched the growth of the reserves by comparing appropriations over the last eight years to collections and notified some elected officials that the proposed use was outside the scope of the fund. The fund has consistently overcollected, particularly in the last three years. According to the latest Board of Equalization report, they are at $580 million, and if collections come in as projected, the figure could grow to $630 million. Knowing the history of HB 1017 is critical to protecting these dedicated dollars for education. It is important to shine light on the excess ERRF reserves and to ensure that any proposed uses meet the intent of the law to help schools continue to reduce class sizes, hire staff, pay teachers, and other purposes identified in state law. HB 1017 brought sweeping changes to public education, but even with the tax increases, funding was unable to meet all of its reform measures, and many fell to the wayside. Many small schools consolidated during the years following its passage. However, it still represented
HENRY BELLMON COLLECTION, OKLAHOMA HISTORICAL SOCIETY
By Derald Glover, OASA Assistant Executive Director
Henry Bellmon was Oklahoma’s Governor from 1963-1967 and from 1987-1991. a significant effort to address various issues plaguing the state’s education system and was intended to improve the quality of education for Oklahoma’s students. Let's review its key aspects.
Funding Mechanism The law established the ERRF to provide a dedicated source of funding for education. By leveraging multiple funding sources, including sales tax increases, income tax revisions, lottery revenue, and other sources, HB 1017 was intended to provide a stable and robust financial foundation for its initiatives. This diversified funding approach helped to ensure that the reforms outlined in the law could be adequately funded and sustained over time, facilitating long-term improvements in Oklahoma’s education system. ERRF derived its funding from various sources to support its initiatives to improve education in Oklahoma: ■ Sales Tax Increase: One of the
primary funding sources for HB 1017 was a one-cent increase in the state sales tax. This increase was specifically earmarked for education and represented a significant commitment of state resources to support the reforms outlined in the law.