Windfall: How Oklahoma's Turbines Affect Rural School Funding

Abstract

Oklahoma’s rural schools are struggling to effectively educate their students. Because of the sparsity of students and geographic isolation, rural schools have higher transportation costs, have trouble affording capital outlay spending, and have difficulties in recruiting and retaining teachers. Oklahoma’s current funding measures are insufficient to address these unique needs as the inability to pass bonds and the disparities in local property tax revenue create significant funding and learning inequities in Oklahoma schools. The state’s production tax credit incentivized a boon in wind turbine installation during the past couple decades. The sudden and exogenous increase in property taxes gives us an opportunity to evaluate the effect of the policy on Oklahoma schools, providing information more broadly on the rural school funding pipeline, from commercial ventures to benefits for students. The installation of a turbine in a district dramatically increased per pupil expenditures by thousands of dollars. School districts hired more staff and teachers while also increasing their capital outlay spending.