Oklahoma House Bill HJR1021

Oklahoma 2024 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23

Caption

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

Summary

HJR1021 is a proposed amendment to the Oklahoma Constitution that seeks to modify the provisions regarding the maximum balance of the Constitutional Reserve Fund, also commonly known as the Rainy Day Fund. The amendment proposes a shift in the methodology used to compute this maximum balance, transitioning from estimates provided by the State Board of Equalization towards a framework based on a percentage of total state expenditures. This approach aims to create a more dynamic computation aligned with actual financial activity within the state government. The new formula would ensure that all appropriated funds and federal contributions are considered in determining the maximum balance for the Reserve Fund. Notably, it would exclude revolving funds utilized by state agencies and non-tax revenue sources, focusing solely on the funds that contribute to the state's comprehensive financial picture. The goal of such a change is to enhance flexibility in budget management while maintaining a buffer for financial emergencies. Critics of HJR1021 may argue that changing how the Fund's balance is computed could lead to unpredictable allocations and potentially diminish the stability that the Rainy Day Fund offers. Detractors are concerned about a reduced ability to respond to fiscal shortfalls or economic downturns if the moneys available in the fund are miscalculated during fiscal planning. They express apprehension about the implications this could have on social services and other critical state functions, especially those reliant on stable funding during economic instability. Supporters assert that a more responsive funding mechanism will allow for better alignment of the Reserve Fund with actual state financial needs and conditions. They argue that the old methods were outdated and inadequately reflected the state's fiscal realities. By ensuring that the balance is tied directly to real economic activity rather than fixed estimations, proponents believe that HJR1021 could promote a prudent fiscal policy and ultimately serve the people of Oklahoma better.