Last year, Oklahoma lawmakers increased state formula funding per student by 19 percent after adjusting for inflation – the largest increase among states that have made the deepest cuts to education funding over the past decade, the report shows. While this is an important step forward, Oklahoma still has a long way to go. State aid per pupil funding remains 15 percent below its 2008 pre-recession level adjusted for inflation.
“Oklahoma has made some important improvements but we must do much more to get our education system back on track. Otherwise, we risk falling even further behind the states that are currently investing in a better-educated population,” warned David Blatt, Oklahoma Policy Institute Executive Director.
The bulk of the increase in education funding went to pay for an average $6,100 teacher pay raise, the first across-the-board pay raise for Oklahoma teachers in a decade. However, schools received virtually no additional funding for school operations to restore lost staff or to reverse program cuts. Formula funding is the primary state revenue source for schools and an especially important funding source for schools in high-poverty areas, which disproportionately educate children of color. Today, Oklahoma schools serve 54,000 more students than a decade ago, but have 1,100 fewer fine arts classes, 391 fewer support staff, and larger class sizes. Educators have carried this extra burden, and it is unsurprising that teachers cite deteriorating work conditions as a significant factor in their decision to leave the classroom.
Oklahoma teachers were not alone in fighting back against the impact of budget cuts in their classrooms. Oklahoma was one of five states – along with Arizona, North Carolina, Kentucky and West Virginia – where teachers protested for increased education funding last year. In all these states, except Kentucky, the protests led to state aid increases between 3 to 9 percent after inflation, which was considerably less than the 19 percent increase in Oklahoma. However, even with last year’s funding boost, Oklahoma remains 15 percent below where we were in 2008 in per pupil formula funding adjusted for inflation. Only Texas has cut per pupil funding more during this period.
While the recession contributed to Oklahoma’s revenue shortfalls, lawmakers enacted income and corporate tax cuts during the downturn that made it harder to recover and restore education funding. An OK Policy study found that the total cost of Oklahoma’s cuts to the top income tax rate since 2004 reached $1.022 billion per year. Based on the current proportion of the budget going to education, these tax cuts have resulted in a loss of $356 million annually from K-12 funding. Considering that Oklahoma’s state aid formula for schools has dropped about $179 million since FY 2008, these tax cuts have made it substantially more difficult to restore funding.
Increases in state funding can both improve educational outcomes for students and a state’s economy in the long term. Last year, the Legislature took important steps to restore what has been cut, but more state aid funding is needed to fully revive our schools. Finding new revenue sources to invest in Oklahoma schools means creating a future where fewer Oklahomans live in poverty and strengthening our economy for everyone.
To read and download the full report from the Center on Budget and Policy Priorities, click here
