State Sen. Joe Newhouse, R-Broken Arrow, says Oklahomans should decide if the legislature can save additional funds each year by increasing the constitutional savings cap on the Rainy Day Fund, which is the state’s emergency savings account.
The legislature has the discretionary power to decide how much money to save while building the yearly state budget. Currently, the savings cap is 15 percent of the amount certified for the prior fiscal year’s General Revenue Fund. Senate Joint Resolution 30 proposes a constitutional amendment to increase the maximum savings deposit from 15 percent to 30 percent.
Newhouse says increasing this cap is a strategic financial move that allows state leaders more flexibility in saving, which could provide economic stability and certainty for future state operations.
“It’s important for our economy that Oklahoma is financially sound,” Newhouse said. “Practicing fiscal discipline while our businesses and industries are flourishing is a smart financial move. A strong savings account helps to boost the state’s credit rating and offers assurances that we can take care of our core services even in an economic downturn.”
Moody’s Investor Service recently changed Oklahoma’s outlook from “stable” to “positive” due to the state’s strong financial management and commitment to increasing reserves.
The commitment to financial stability is a priority for Gov. Kevin Stitt and his administration. He recently endorsed Newhouse’s proposal in the State of the State address.
“Senator Joe Newhouse has filed legislation that would give Oklahomans a voice this year on increasing the Constitutional cap on our state’s Rainy Day Fund to 30 percent,” Stitt said. “Let’s get it to a vote of the people.”
If passed, SJR 30 could be seen on the ballot as a state question later this year.
For more information, contact:
Sen. Joe Newhouse at 405-521-5675, or email Joe.Newhouse@oksenate.gov.