This is an exploratory study designed to assist in understanding how funding mechanisms in Oklahoma influence school districts in pursuing capital outlay projects, including an emphasis on the differences between rural and non-rural schools. This study also includes an examination of how school performance as determined by the academic performance index is affected by these same mechanisms. The funding mechanisms considered include capital outlay expenditures per pupil, net assessed valuation per pupil, bond issue passage rates, participation in free lunch program, and rurality. Descriptive statistics are presented along with t-tests, correlations, and regressions analysis.

Rural and non-rural were found to be significantly different in net assessed valuation and capital outlay expenditure but not bond passage rate. Socio-economic status was significantly related to and a predictor of capital outlay expenditures. Capital outlay expenditure, net assessed valuation, nor rurality was significantly related to district API scores.