Public K-12 school districts – Oklahoma – State’s top court rejects challenge to taxes for teacher pay increases, a credit positive

Source: Adebola Kushimo, Roger S Brown, Alexandra S. Parker, Moody’s, Sector Comment, June 27, 2018
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On June 22, the Oklahoma (Aa2 negative) Supreme Court rejected an effort to nullify a legislative package that increases state taxes to provide teachers with a pay raise. The court refused to permit a referendum that would have given voters a chance to block the tax increases, which include tax hikes on gasoline and oil production. The ruling is credit positive for school districts because it preserves state funding for the teacher pay increases, which came as teachers threatened to strike earlier this year and eventually did. The activists opposing the tax increases could still mount another effort to hold a referendum, hoping voters will overturn the tax hikes. The court noted that they have until July 18 to submit a new list of signatures that could lead to a November vote…..