Oklahoma’s reserve fund policy meets best-practice levels
AP - April 18, 2017 8:36 am
(Information from: The Oklahoman, http://www.newsok.com)
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 Oklahoman reports the study conducted by The Pew Charitable Trusts focused on the formal procedures of withdrawing money. 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.
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.