Oklahoma House Appropriations and Budget Chairman Trey Caldwell, R-Faxon, announced today a joint resolution that would place a constitutional amendment before Oklahoma voters to restructure how the investment returns from the Tobacco Settlement Endowment Trust (TSET) are managed and distributed.

This measure expands what TSET can hold by allowing real property, stocks and other equity investments to be added to the trust, not just cash. It would eliminate the TSET Board of Directors entirely and transfer all remaining responsibilities to the existing Board of Investors (BoI), whose role would be expanded to fully managing, administering and transferring trust assets and earnings.

Under the proposal, TSET earnings would be distributed annually in a fixed order: first to fully fund Oklahoma’s Promise (OHLAP) scholarships, and then any remaining earnings would be transferred to the Education Reform Revolving Fund (the 1017 Fund). Because the distribution formula would be set in the Constitution, the Board of Directors would no longer be necessary.

"By eliminating duplicative administrative structures and prioritizing funding for Oklahoma’s Promise and the 1017 Fund, this reform delivers real savings and results," said Caldwell.

The reform is intended to simplify TSET’s structure, reduce administrative costs and increase the amount of money going directly to scholarships and education funding. Eliminating the Board of Directors and associated staff functions is projected to save at least $4.19 million annually. Based on an average $6,000 Oklahoma’s Promise award, those savings alone could fund scholarships for nearly 700 additional Oklahoma students each year.

"This resolution reflects a practical, good-government approach," said Caldwell. "The goal is to fully fund every Oklahoma student who can academically qualify for Oklahoma's Promise to go to college and career tech tuition-free, as well as students seeking apprenticeships."