Governor Kevin Stitt has released a report recommending changes to Oklahoma’s school finance system, including how districts handle carryover funds and requirements for instructional days.
The report was prepared by Dan Hamlin during his time as Oklahoma Secretary of Education in response to an executive order from Stitt. It examines school district finances, instructional days and funding differences between traditional districts and brick-and-mortar public charter schools.
“The people of Oklahoma expect every education dollar to reach the classroom and make a difference for kids, not get lost in bureaucracy or sit idle in bank accounts,” Stitt said. “This report demonstrates that there is work to do on how we allocate and spend education funds.”
Among its recommendations, the report calls for allowing districts to use carryover funds and interest earnings for teacher compensation without facing excess-carryover penalties. It also recommends allowing districts to establish restricted endowment funds for teacher compensation.
The report recommends limiting waivers from the state’s minimum instructional-day requirement to districts receiving an A rating on the state report card. It also calls for developing a strategy to reduce funding disparities between school districts and brick-and-mortar public charter schools.
According to the report, total district carryover balances increased from $2.8 billion in 2019 to about $4.5 billion in 2025. Carryover balances represented roughly 30% of annual public school revenue in 2025.
The report also found differences in the number of in-person instructional days offered by districts. A review of 12 district calendars found between 141 and 172 in-person instructional days, a difference of 31 days.
“Over a student’s 13-year K–12 education, the gap between some districts in Oklahoma amounts to more than two full years of in-person learning for students,” Hamlin said.
The report also found discrepancies between some school calendars published by districts and figures reported to the Oklahoma State Department of Education and recommends more consistent statewide reporting and random audits of district calendars.
The report is intended to establish an annual review of selected parts of Oklahoma’s school finance system and provide policy recommendations to the governor and legislative leaders.
