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Proposed Legislation Seeks to Increase Rainy Day Fund

An Oklahoma state senator has introduced legislation to set the cap on the state’s Rainy Day Fund at 15 percent (approximately $24 billion) of the total state budget.

Senator David Holt of Oklahoma City says that while Senate Joint Resolution 44 doesn’t fix the short-term budget crisis the state faces, he believes this long-term planning is necessary to avoid a similar budget crisis in the future.

“We also have to jump on these lessons while they are fresh. And I think one of the lessons we’re learning here is that we’ve had a hundred years of an energy-based economy. We know that the energy industry rises and falls, and yet we don’t have a savings account that appreciates that fact.”

Currently, the Rainy Day Fund’s 15 percent cap is measured against the general revenue fund certification, which was just $5.6 billion for the most recent budget, less than a quarter of the dollar amount actually spent by the state.

"Our current Rainy Day Fund gives a false sense of security by measuring itself against an artificial number that is less than a quarter of the state’s actual spending. No responsible citizen would run their household this way, and neither should we.”

Holt also voiced his support for budget-only legislative sessions to devote more time into thinking solely about the state’s budget.

Senate Joint Resolution 30, authored by Senate President Pro Tempore Brian Bingman, proposes just that. SJR 30, which has passed the Senate and awaits consideration in the House, would allow consideration of the budget every year, but would limit proposals for statutory changes to every other year.

SJR 44 can be considered by the Legislature during the session that begins February 1. Because it is a proposed amendment to the Constitution, it would be placed on the November 2016 ballot for consideration by the voters. SJR 30 is also eligible for further consideration this upcoming legislative session, and would also require a vote of the people to become law.

Ryan LaCroix is the Director of Content and Audience Development for KOSU.
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