House Bill 3705 from Speaker Kyle Hilbert, R-Bristow, would raise the program cap from $250 million to $275 million.
The program provides a $5,000 to $7,500 tax credit for parents whose children attend eligible private schools, and a $1,000 credit for homeschool families. It originally passed in 2023.
In discussion, House Minority Leader Cyndi Munson, D-Oklahoma City, echoed concerns from her caucus about fairness.
“If we’re going to use public dollars and fund private schools, we should ask of them what we ask of our public schools,” Munson said. “There should be oversight. There should be transparency.”
Hilbert responded in debate, saying the “ultimate accountability” was the ability of parents to pull their children out of a school they did not like.
Traditional public schools are required to take all children in their districts, and most charter schools operate on a lottery system. Private schools can choose which students to admit.
Private schools are also not bound by regulations that public schools must operate under to receive state funds, such as state testing requirements, academic standards, classroom size limitations, minimum salary schedules and rules about what can be discussed in the classroom.
According to data from Private School Review, tuition at Oklahoma private schools has increased 61% since the 2023-24 school year.
Though the program was billed as a way to help lower-income families afford private school, data from the Oklahoma Tax Commission show more than $56 million was awarded to families with incomes of over $225,000. For families with incomes of $75,000 or less, $55 million was awarded.
According to the OTC, $248.4 million was expended on private school tuition last year, and an additional $2.6 million — not subject to the cap — went to financially disadvantaged and homeless students.
Rep. Chad Caldwell, R-Enid, said the program's success can be measured by how many families have applied for it.
“Our tax dollars should follow Oklahoma students to the school that best meets their needs,” Caldwell said in a news release. “Oklahoma families clearly value this program, as shown by record application numbers this year.”
The bill is part of a larger budget agreement that includes $2,000 teacher pay raises — a yoke House democrats repeatedly bemoaned.
“Tying a teacher pay raise to private school funding is offensive,” Munson said in a news release. “$275 million would be transformative for our public schools and allow for an even higher teacher pay raise than what has been proposed by Republican leaders.”
House Bill 3705 passed 70-19. Four Republicans voted against the bill: Rep. Nick Archer, R-Elk City; Rep. Bob Culver, R-Tahlequah; Rep. Ronny Johns, R-Ada; and Rep. Judd Strom, R-Copan. Two members abstained: Rep. Jason Blair, R-Moore, and Rep. Ellyn Hefner, D-Oklahoma City.
The bill now heads to the Senate.
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