HOUSE BILL 1229 Analysis

   House Bill 1229 is a revision to the Virtual Charter Schools Act, amending 70 O.S. 2011, Section 3-104, which relates to the State Board of Education (SBE) powers and duties. It strikes reference to Statewide Virtual Charter School Board (SVCSB), which relates to charter school funding - and transfers sponsorship authority to the State Board of Education. It actually eliminates the Statewide Virtual Charter School Board and grants the State Board of Education sole sponsorship authority, and transfers powers and duties to the State Department of Education (SDE).
   Traditional public school supporters may believe this transfer of authority from the SVCSB to the SBE is a good thing (the SVCSB Chairman, Mat Hamrick, slammed legislation authored by Senator Ron Sharp - which aimed to provide more financial transparency for virtual charter schools.) It is in reality - one more bill which could reduce traditional public schools' state funding... and here's how:
   Section 21 of 70 O.S. 2011 states that one duty of the SBE is to administer the State Public Common School Building Equalization Fund (SBEF)established by the Oklahoma Constitution. The SVCSB has no such constitutional authority. The only issue is that no state funds have ever been appropriated to the SBEF! Section 21 further states that "any monies as may be appropriated or designated by the Legislature, other than ad valorem (property) taxes, any other funds identified by the SDE, which may include, but not be limited to, grants-in-aid from the federal government for building purposes, etc. shall be deposited in the State Public Common School Building Equalization Fund. The fund shall be used to aid school districts and charter schools in acquiring buildings..."
   Since no funds have ever been appropriated to the Fund, there is reason to believe that funding will now be appropriated within HB 1229. Section 21 goes on - If sufficient monies are available in the fund, the Board shall solicit proposals for grants from school districts and charter schools and shall determine the process for consideration of proposals. Grants shall be awarded only to school districts which have a total assessed property valuation per average daily membership that is less than the state average total assessed property valuation per average daily membership and, at the time of application, the district has voted the five-mill building fund levy authorized in Section 10 of Article X of the Oklahoma Constitution, and has voted indebtedness through the issuance of new bonds for at least fifty percent (50%) within the last three (3) years of maximum allowable pursuant to the provisions of Section 26 of Article X of the Oklahoma Constitution... Grants shall be awarded only to charter schools which have secured matching funds for the specific purpose of  acquiring buildings... The amount of each grant awarded... shall not exceed Four Million Dollars ($4,000,000.00)...
For all intent and purposes - it appears lawmakers are on the verge of infusing the State Public Common School Building Equalization Fund with Millions of Dollars. The new Law may give us a hint as to where the funds may originate - any monies as may be appropriated or designated by the Legislature, other than ad valorem taxes... This technically allows the Legislature to appropriate funding for school building purposes. Since no new revenue steams have been identified for school building purposes, the funding would naturally originate in State appropriated dollars for public education. For instance, if the Legislature intends to appropriate a specific dollar amount to the SDE for distribution to public schools, it could reduce that appropriation by Millions of Dollars - and appropriate it to the SBEF instead. Many public school finance experts believe the Legislature will do this: Rob Peter to pay Paul.
   In addition, HB 1229 cleverly eliminates most traditional public schools from receiving any appropriated funds for building purposes, as almost all traditional schools are at least 50% indebted and have voted the five mill building levy. This insertion of restrictions for traditional schools narrows the building funds to only public charter schools. Among those charter schools expecting a windfall of tax dollars is the Epic Blended Learning Schools, which could realize the maximum $4,000,000.00 for each school... and our traditional public schools will pay for it!