OKLAHOMA CITY — Almost $2 million from a tax credit program intended to help families afford private school instead went to parents’ debts and delinquent taxes.

The Oklahoma Tax Commission has deducted 1,249 parental choice tax credit payments from applicants who had unpaid taxes or a debt claim filed against them, the agency reported in response to an open records request from Oklahoma Voice. 

Payments were reduced by a total of $1,926,240. The program’s total budget this year is $150 million. 

Gov. Kevin Stitt has signed into law a bill meant to prevent future deductions. House Bill 3388 clarifies the credits are non-taxable income and can’t be reduced for outstanding debts. 

The legislation that created the tax credit program last year included no such prohibition, prompting lawmakers to clarify the law this session.

“The Tax Commission was following the law as written at the time of implementation,” Stitt said in a statement. “I’m always grateful when agencies operate with due diligence. Moving forward, lawmakers have changed that statute and I have signed that into law.”

More: Oklahoma’s parental choice tax credit update: ‘Non-priority’ applications now being reviewed

Senate President Pro Tem Greg Treat, R-Oklahoma City, said the clarification was necessary so a parent’s debt wouldn’t hamper a student’s opportunity to attend private school.

“We don’t tell a child they can’t go to public school because their parent’s behind on taxes, and we’re not going to tell a child in need that they can’t go to a private school that meets their needs based on their parent’s lack of compliance,” Treat said while speaking with reporters last week.

Legislative Democrats questioned whether the measure is another hand-out to families already enrolled in exclusive schools.

“For anybody else, if they had a tax liability, they would be required to pay it, and these folks are not,” Rep. Andy Fugate, D-Del City, said. “So, we’re giving them taxpayer dollars, and we’re saying you don’t have to pay what you owe the people of Oklahoma.”

What to know about the private school tax credit

The refundable tax credits offer $5,000 to $7,500, depending on total household income, to offset costs of sending children to private schools. Although a credit reduces a family’s state tax obligation, the commission issues a check to recipients to reimburse approved educational expenses, like tuition, tutoring or testing fees.

The initiative launched in December to significant demand. About 36,000 people have applied, most of whom did so in the first 90 minutes of the application window.

There is no income limit to apply, but children from households earning $150,000 or below had priority consideration.

The Tax Commission is still reviewing applications and disbursing funds. About 16,800 priority applicants and 4,300 without priority have been approved, accounting for $125 million of the $150 million budget, the agency reported this week.

Oklahoma will allocate $200 million for the program in 2025 and $250 million in 2026.

Oklahoma Voice is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oklahoma Voice maintains editorial independence. Contact Editor Janelle Stecklein for questions:info@oklahomavoice.com. Follow Oklahoma Voice onFacebook andTwitter.

TULSA, Okla. — The battle over religion and schools in the Sooner state is taking a new form, as students may be excused from classes to attend religious courses.

A bill making its way through the state capital that would clarify an already existing law.

State Representative Clay Staires (R-Skiatook) wroteHouse Bill 1425. Tulsa parent Meegan Clark supports it.

“I think we absolutely need to get God back into school and be giving teaching opportunities for religion,” said Clark.

She was eating lunch with her daughter. She said she believes this bill is no different than the other school activities.

“I don’t feel like it’s any different than having satanic clubs for after-school programs or dungeons and dragons or anything that omits Jesus or religion of any kind from them. So I feel it’s equal,” said Clark.

2 News went in-depth to see what the bill entails and what it means for schools.

The bill will allow schools to excuse students for a maximum of three class periods a week to attend a religious course.

“Right now, it is legal for it to happen in Oklahoma. But nobody knows how to do it, and so you can do it, and you can do it wrong, and next thing you know, you’re up for lawsuits and stuff like that,” said Staires

Staires said the school’s leadership will determine the instruction. The schools can decide how frequently and when students will be allowed off campus.

The bill said no taxpayer dollars would be used for funding. Staires said the organization would need to provide the transportation to avoid school funding.

Staires said schools can offer the courses to all age groups. However, students are required to have their parent’s permission before attending the classes.

“The vast majority of states that are doing this is happening with young kids, and that’s why there needs to be a bus that transports them from place to place because you know they’re not driving themselves,” said Clark.

The bill specifically states that all denominations are welcome to teach students.

Representative Staires said the bill was approved in the Oklahoma House of Representatives and sent to the State Senate. The bill was then amended and approved by the Senate.

Before going to the governor’s desk, the amended version goes back to the House for final approval.

Representative Staires said all religious organizations will be vetted before beginning the courses.

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