Education Funding Tax




If this proposal is approved, Article 8-C would be added to the Oklahoma Constitution creating a limited purpose fund—the Education Improvement Fund.
An increase of the sales and use tax by one cent on the dollar would provide revenue for the fund. School districts that benefit from the fund would be subject to an annual audit. Funds generated by the tax cannot be used to replace other state funding of common, higher, career and technology, and early childhood education.
The provisions of the new article require a minimum $5,000 salary increase for teachers over the salaries paid in the year prior to adoption. The funds generated would not be used to increase the salaries of school superintendents or to add superintendent positions.
Oklahoma’s average compensation for teachers, including salary and benefits, is $44,921. According to the National Education Association, Oklahoma ranks 49th in the nation in teacher pay.
A section within the new article to the state con-stitution establishes that monies collected would be distributed as follows:
  • 69.5 percent to common education
    • 86.33 percent of common education funding would be used to provide teachers with a minimum $5,000 raise and otherwise address or prevent teacher and certified instruction staff shortages.
    • 13.67 percent of common education funding would be used to adopt or expand, but not maintain, pro-grams, opportunities or reforms for improving read-ing in early grades, improving high school graduation rates, and increasing college and career readiness.
  • 19.25 percent to higher education
  • 3.25 percent to career and technology education
  • 8 percent to early childhood education


Is A Sales Tax The Solution to Oklahoma’s Education Funding Problems?

OETA State Question 779


  • There is no greater need in Oklahoma than the adequate funding of education for our children. As of 2016, the Oklahoma Legislature has not approved an across-the-board salary increase for teachers in eight years.
  • The measure would ensure a guaranteed source of additional education funds that cannot be used for other purposes by the legislature.
  • The proposed salary increase would be permanent, not a one-time “bonus.” This would aid in the recruitment of new teachers and retention of experienced teachers.


  • A sales tax disproportionately impacts lower-income people, a concern especially in Oklahoma, whose poverty rate is higher than the national average.
  • If approved, SQ 779 would set a harmful precedent in public policy making by weakening the state legislature’s obligation to fund education adequately.
  • Higher state sales taxes would hurt city governments’ ability to raise or maintain their own sales taxes, on which they rely heavily to pay for services such as police and fire protection and water, sanitation, and streets services.


This measure adds a new Article to the Oklahoma Constitution. The article creates a limited purpose fund to increase funding for public education. It increases State sales and use taxes by one cent per dollar to provide revenue for the fund. The revenue to be used for public education shall be allocated: 69.50% for common school districts, 19.25% for the institutions under the authority of the Oklahoma State Regents for Higher Education, 3.25% for the Oklahoma Department of Career and Technology Education, and 8% for the State Department of Education. It requires teacher salary increases funded by this measure raise teacher salaries by at least $5,000 over the salaries paid in the year prior to adoption of this measure. It requires an annual audit of school districts’ use of monies. It prohibits school districts’ use of these funds for increasing superintendents’ salaries or adding superintendent positions. It requires that monies from the fund not supplant or replace other educational funding. If the Oklahoma Board of Equalization determines funding has been replaced, the Legislature may not make any appropriations until the amount of replaced funding is returned to the fund. The article takes effect on July 1 after its passage.