State Question 757: State rainy day fund
Posted: 10/07/2010
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By: Marla Carter
The financial dark cloud over the state budget unleashed. When it rains, it pours.
From education, to health care, even public safety, it seems every state agency was hit by the state's $1.2 billion shortfall, but there was an umbrella that helped ease the downpour: the rainy day fund.
It provided a $600 million cushion, but after the last legislative session's budget woes, it now sits at zero.
It's one reason why some lawmakers want to prevent that from happening again.
"It's just like a family in Oklahoma. Many people have been told for years that they ought to keep six months salary for when times get tough, or they lose a job. In Oklahoma we have 10%, that's a little over a month's savings account ,and by increasing it from 10% to 15%, I think it's the right thing to do," said Senator John Ford.
The idea is to slowly fill the fund back up when the excess funds are there.
Senator John Ford proposed increasing the fund back in 2007 and says if lawmakers had acted at that time, the fund would've been $300 million richer this year.
"Those are dollars we could've used for teachers' salaries. We could've used for roads and bridges. We could've used for corrections. I think it's the right thing to do when times are good to go ahead and build your savings account up and then hold that savings account for when times are not as good," said Ford.
"We're not going to have enough revenue to create a rainy day fund, much less a 10% or 15% excess," said State Representative Mike Reynolds, (R)-Oklahoma City.
Reynolds says it's not something that we need to address now, especially with ten other state questions on the ballot.
Plus, he says if the state has extra cash, it should go back to citizens.
"If the rainy day fund wasn't increased by that amount the money could and should be returned to the taxpayers in the form of reduced tax rates and things of that nature," said Reynolds.
"If we, number one, set the tax rate at a rate that's good for the citizens and then by having the rainy day fund then we're managing the fluctuations that are beyond our control," said Ford.
One thing all these lawmakers agree on is that another economic washout would be devastating. The question is how big of an umbrella does the state need for any future storm.
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CLICK HERE FOR IN DEPTH COVERAGE OF THE STATE QUESTIONS
STATE QUESTION NO. 744 (INITIATIVE PETITION NO. 391)
If approved by voters, this would amend the Oklahoma constitution to mandate that the state spend the same amount of money per student as the average spent by the surrounding states. CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 744
STATE QUESTION NO. 746 (LEGISLATIVE REFERENDUM NO. 347)
If approved by voters, this would require voters to provide documentation of their identity, and specifies the types of proof that would be accepted. CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 746
STATE QUESTION NO. 747 (LEGISLATIVE REFERENDUM NO. 348)
If approved by voters, this would amend the Oklahoma constitution to impose term limits on statewide elected offices, including governor, lieutenant governor, attorney general, and treasurer. CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 747
STATE QUESTION NO. 748 (LEGISLATIVE REFERENDUM NO. 349)
If approved by voters, this would amend the Oklahoma constitution to change the way that apportionment (splitting of the state into house and senate districts) takes place.CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 748
STATE QUESTION NO. 750 (LEGISLATIVE REFERENDUM NO. 350)
If approved by voters, this would amend the Oklahoma constitution to change the rules governing initiative petitions and referendum petitions.CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 750
STATE QUESTION NO. 751 (LEGISLATIVE REFERENDUM NO. 351)
If approved by voters, this would amend the Oklahoma constitution to mandate that all state business be conducted in English. CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 751
STATE QUESTION NO. 752 (LEGISLATIVE REFERENDUM NO. 352)
If approved by voters, this would amend the Oklahoma constitution to change the makeup of the Judicial Nominating Commission, the body which recommends judges to the governor for appointment. CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 752
STATE QUESTION NO. 754 (LEGISLATIVE REFERENDUM NO. 354)
If approved by voters, this would amend the Oklahoma constitution to change the rules for how the state legislature can designate the distribution of funds.
STATE QUESTION NO. 755 (LEGISLATIVE REFERENDUM NO. 355)
If approved by voters, this would amend the Oklahoma constitution to make it illegal for Oklahoma courts to consider international law -- and specifically, Sharia law -- when ruling on cases. CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 755
STATE QUESTION NO. 756 (LEGISLATIVE REFERENDUM NO. 356)
If approved by voters, this would add a new section to the Oklahoma constitution which would make it illegal to force participation in a health care system.
STATE QUESTION NO. 757 (LEGISLATIVE REFERENDUM NO. 357)
If approved by voters, this would amend the Oklahoma constitution to increase the amount of surplus revenue that goes into the state's "Rainy Day" fund. CLICK HERE FOR FULL COVERAGE OF STATE QUESTION 757
