DALLAS - An Oklahoma group seeking $500 million of state bonds to build school storm shelters will begin a second petition drive in May to put a constitutional amendment to authorize the debt on the November ballot.
Take Shelter Oklahoma said it would rewrite the proposal rather than use amended petitions with a state-approved ballot title.
The Oklahoma Supreme Court refused April 21 to reconsider the organization's protest of Attorney General Scott Pruitt's decision to re-write the ballot title for the proposed State Question 767.
The bonds would be supported with $40 million a year of revenues from the business franchise tax. The revenue currently goes into the general fund.
Pruitt ordered changes to the initiative petition to reflect the source of the funding for the bonds.
"It does not explain the loss to the state's general revenue fund that would occur when bonds are issued and franchise tax revenues are used to repay the bond obligations authorized in the proposal," Pruitt said. "It fails to explain that if the state franchise tax revenues are not sufficient to pay off the bond obligations, there may not be any funds available to pay the bond holders."
The court upheld Pruitt's wording and gave petitioners 90 days, beginning April 22, to gather 155,000 signatures needed for a statewide vote. It allowed a second attempt for the initiative but rejected an appeal by Take Shelter Oklahoma that state be required to count 100,000 signatures gathered before Pruitt ordered the changes.
The pro-bond group was formed after seven students died when a tornado hit an elementary school in Moore, Okla., in May 2013.
Gov. Mary Fallin said in January she supports a constitutional amendment that would allow school districts to seek a one-time increase in the property tax rate to support bonds for shelter construction or other safety needs.
State Rep. Joe Dorman, D-Rush Springs, said Fallin's option would increase local property taxes and create difficulties for districts at or near the debt limit of 10% of district property valuations.
"The governor has called for additional debt to be put on the district that they have no way of paying back under the law and is asking them to pursue a plan that's fiscally irresponsible," said Dorman, who is running for governor.
An earlier petition period that ended in December 2013 fell short of the required number of valid signatures using the amended wording.
