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Oklahoma State Capitol. (Image: Ben Dunham via Flickr)

Lawmakers OK new fund to soften blows from revenue failures

OKLAHOMA CITY (AP) — A bill to establish a new fund to ease the impact of future mid-year revenue failures is heading to the governor.

The bill passed the Senate Tuesday on a 42-2 vote and would direct excess oil-and-gas production taxes and corporate income taxes to a new Revenue Stabilization Fund. The fund could be used when mid-year revenues are lower than projected in the state budget.

If signed by the governor, it would authorize the director of the Office of Management and Enterprise Services to withdraw up to 25 percent of the fund’s balance in the event of a revenue failure.

The state has seen multiple revenue failures this year, prompting officials to slash agency budgets across the board and take money from the state’s rainy day fund for schools and prisons.

Related: Oklahoma House votes to cap tax credit for at-risk oil wells.

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