How do school bonds work in Oklahoma? Behind the 60% supermajority vote

In Oklahoma, school bonds and tax elections are mechanisms that school districts use to raise funds for various purposes, such as constructing new facilities, renovating existing structures, supporting operational expenses, or levying certain taxes to fund other needs. Here's an overview of how these processes work:

School Bond Elections:

1. Purpose: School bonds are typically issued to fund capital improvements like building new schools, upgrading facilities, or purchasing equipment, including busses.
2. Proposal Development: The school district's board of education identifies the need for funding and develops a bond proposal outlining the projects and the amount of money required.
3. Election Authorization: The board passes a resolution to call for a bond election and submits it to the county election board.
4. Voter Approval: For the bond to be issued, it must receive at least a 60% supermajority vote in favor during the election.
5. Issuance and Repayment: If approved, the bonds are issued, and the school district repays the debt over time, typically through property taxes levied within the district.

Related Coverage: What to know about school bond packages for February special election in Green Country

Why do school bond approvals have to be 60%?

The 60% supermajority requirement for school bond approvals in Oklahoma is rooted in the state's constitution. Specifically, Article X, Section 26 of the Oklahoma Constitution mandates that any political subdivision, including school districts, must obtain approval from three-fifths (60%) of the voters to incur debt through bond issuance. This provision has been a part of the state's foundational legal framework since the constitution's adoption in 1907.

However, before the 1955 amendment, the Oklahoma Constitution did not require a 3/5 (60%) supermajority for school bond issues. Instead, a simple majority (more than 50%) was sufficient for approval. This change was part of an effort to impose stricter controls on the ability of public entities to incur debt and to require broader voter support for such financial decisions.

Specifically, Oklahoma Statutes Title 70, Section 15-101 outlines the conditions under which school districts may issue bonds for purposes such as purchasing school sites, constructing or purchasing school buildings, making repairs, acquiring furniture and fixtures, or improving school sites. The statute mandates that before any bonds can be issued, the board of education must hold an election within the district to seek voter approval.

Over the years, this supermajority requirement has been a topic of discussion and critique. For instance, a 1999 article from The Oklahoman highlighted concerns about the fairness of the rule, suggesting that it allows a minority to override the majority's will.

Article X, Section 26 of the Oklahoma Constitution:

1. Oklahoma Constitution - Article X, Section 26

Oklahoma Statutes Title 70, Section 15-101:

1. Title 70, Section 15-101 (Oklahoma Statutes)

Five Mill Levy Limit

In Oklahoma, there is a five-mill levy limit on property taxes in school districts, as outlined in Article X, Section 9B of the Oklahoma Constitution. This means that school districts cannot levy more than five mills on the total value of taxable property. However, there are exceptions for new construction and bond taxes, which can be levied separately from the five-mill cap. In total, property taxes for both schools and municipalities cannot exceed fifteen mills.

Incentive Levy

Oklahoma also allows school districts to use an incentive levy, which requires voter approval. Once approved, the levy remains in place every year until voters repeal it. If voters approve the incentive levy for three consecutive elections, it must continue without needing further approval until it is repealed. This levy can help fund various capital improvements, like building new schools or purchasing property, while staying within the state's tax limits.