OKLAHOMA CITY (AP) - A comprehensive study of the United States withdrawal policy shows that Oklahoma’s Constitutional Reserve Fund meets adequate and best-practice levels.
The study conducted by The Pew Charitable Trusts focused on the formal procedures of withdrawing money, The Oklahoman (https://bit.ly/2oi5CH1 ) reported. It shows six states don’t have any requirements to withdraw from their funds, meaning legislatures can empty the funds at any time and for any reason.
“In an absence of conditions, states have no context for why they were saving money in the first place,” said Pew researcher Robert Zahradnik. “The decision of when to withdraw is tough enough. Doing it without conditions makes it even harder.”
Oklahoma’s fund can be used if needed to make up for a revenue failure this year, if a revenue shortfall is expected for next year or if there’s a declared emergency.
While Oklahoma has conditions in place, the entire balance of the fund has been borrowed to help pay its monthly bills, without legislative approval. The balance must be paid back before July 1.
Last year, Republican Rep. John Montgomery and Republican state Sen. David Holt created a revenue stabilization fund.
In addition to the reserve fund, Oklahoma lawmakers can use the stabilization fund to soften economic downswings.
“I feel pretty strongly those two tools will be very instrumental going forward,” said Montgomery. “Obviously, without deposits going in, it’s kind of hard to use those.”
Montgomery said the overall policies for the stabilization fund are good, but more money should be deposited if possible.
“There’s definitely room for improvement,” Montgomery said.
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Information from: The Oklahoman, https://www.newsok.com
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