A constitutional limit on state-supported debt service would go to Oklahoma voters under a proposal sponsored by Sen. Josh Breechen, R-Coalgate, and Rep. Jason Murphey, R-Gutherie.
Senate Joint Resolution 10 was approved last week by the Senate Appropriations Committee.
Annual debt service would be capped at 4.5% of the average state revenues over the past five fiscal years as determined by the State Board of Equalization. Lawmakers could raise the annual limit by declaring an emergency with a two-thirds vote. Current debt service on Oklahoma’s $1.5 billion of state tax-supported debt is less than the proposed limit at $200 million a year.
The Board of Equalization last week adopted an official revenue estimate of $7.04 billion of general fund collections in fiscal 2014, giving lawmakers an additional $213 million to allocate.
Oklahoma will have an ending surplus of $83.3 million, which will boost the state’s rainy-day fund to $660.8 million with the July deposit.