Oklahoma Senate Bill SB591

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

State Treasurer; implementing program to invest certain funds as a hedge against revenue volatility. Effective date.

Impact

The bill amends existing provisions related to the Revenue Stabilization Fund, thereby enabling the State Treasurer to pursue investments in commodity futures contracts and options on those contracts. This change signifies a strategic approach to managing state funds, allowing for potential growth and stability. The legislation assures that the fund, which is tailored for state fiscal emergencies, is more actively used to address revenue dips, benefiting the state's budgetary resilience during economic downturns.

Summary

Senate Bill 591 (SB591) focuses on the implementation of a state program aimed at utilizing certain funds for investment purposes. Specifically, the bill allows the State Treasurer to invest up to $2 million annually from the Revenue Stabilization Fund. The investments are intended as a hedge against the volatility of revenues collected from the state’s tax system. This program attempts to mitigate revenue fluctuations and enhances financial stability for the state during periods of economic uncertainty.

Contention

Notably, one point of contention surrounding SB591 may involve concerns over the appropriateness and risks associated with investing state funds, especially in volatile markets such as commodities. Critics may argue that such investment strategies could lead to unforeseen losses or mismanaged funds at the state level. Supporters, however, advocate that this approach represents a progressive step in financial management, potentially generating additional revenue for the state by employing part of the stabilization fund in a strategic manner.