Oklahoma House Bill HJR1001

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21
• Report Pass: 2/16/21
• Engrossed: 3/15/21
• Refer: 3/17/21

Caption

Oklahoma Constitution; Constitutional Reserve Fund; maximum fund balance; computation; ballot title; filing.

Impact

The proposed changes in HJR1001 are intended to enhance the flexibility of the Reserve Fund's balance, allowing for a more responsive approach to state revenue fluctuations. By using total expenditures instead of revenue estimates for the computation of the maximum fund balance, it is expected that the state can maintain a more substantial safety net during economic downturns or revenue shortfalls. The adjustments would potentially allow the legislature to manage appropriations more effectively while aligning with actual financial needs.

Summary

HJR1001 is a joint resolution proposing an amendment to Section 23 of Article X of the Oklahoma Constitution. This amendment aims to modify the provisions regarding the maximum balance of the Constitutional Reserve Fund, commonly referred to as the Rainy Day Fund. The amendment changes the computation method of the maximum balance of this fund, transitioning from estimates based on revenue forecasts to calculations based on a percentage of total state expenditures, including both state appropriations and federal funds.

Sentiment

The sentiment around HJR1001 appears to be generally supportive among legislators, as indicated by the unanimous vote of 93-0 during its third reading in the House. This consensus suggests a recognition of the importance of financial security for state operations in times of economic uncertainty. However, the sentiment may also involve concerns from fiscal conservatives wary of altering the foundational principles governing state financial management.

Contention

While the resolution passed with little opposition, there could be underlying debates about the sustainability of relying on a percentage of total expenditures for determining the Reserve Fund's maximum balance. Critics may argue that this could lead to higher spending or less stringent budgeting practices in the long run. Thus, the resolution may ignite discussions around fiscal responsibility and the balance between maintaining a reserve for emergencies and ensuring that state funds are used effectively for public services.