Oklahoma Senate Bill SJR14

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Constitutional amendment; increasing maximum deposited into Constitutional Reserve Fund. Ballot title.

Impact

If passed, this amendment would have significant implications for state fiscal management and planning. The increase in the reserve cap would enhance the state's ability to address economic uncertainties and maintain services during challenging financial times. Lawmakers and fiscal analysts have suggested that having a stronger reserve fund could provide both stability for the state's budget and flexibility in times of economic downturn, ultimately benefiting public service funding and economic initiatives.

Summary

SJR14 proposes an amendment to Section 23 of Article X of the Oklahoma Constitution, aimed at increasing the maximum amount that can be deposited into the Constitutional Reserve Fund from the current cap of 15% to 30% of the amount certified for the preceding fiscal year. This proposed change seeks to bolster the state's financial resilience by allowing for a larger reserve that can be utilized during times of fiscal shortfall or emergency. The intent of the resolution is to ensure that the state's budget remains balanced by allowing for a greater cushion in reserves.

Contention

However, there are points of contention regarding the amendment. Critics argue that increasing the reserve fund cap may divert attention and resources from immediate fiscal needs and public priorities. Additionally, some legislators express concerns that a larger reserve could lead to complacency in budgeting practices, potentially resulting in less rigorous fiscal discipline. The debate focuses on balancing adequate reserves with responsible and immediate funding of state programs and services.