TRANSCRIPT
Dick Pryor: This is Capitol Insider - taking you inside politics, policy, and government in Oklahoma. I'm Dick Pryor with Quorum Call publisher, Shawn Ashley. Shawn, General Revenue Fund figures for fiscal year 2026, which ended on June 30th, show a strong financial position for the state heading into the next legislative session. The data released by the Office of Management and Enterprise Services indicates a continued upward trend for the economy.
Shawn Ashley: That's right. General Revenue Fund collections for fiscal year 2026 totaled $8.9 billion.That was $612.1 million or 7.4 percent above the estimate for the year and $143.4 million or 1.6 percent above fiscal year 2025 collections. Office of Management and Enterprise Services Director Mark Wood said the state of Oklahoma ended FY 2026 in a strong financial position and he noted collections exceeded prior year receipts for the second consecutive year and surpassed the full year estimate for the sixth consecutive year. In addition to the more than 600 million dollars in collections above the estimate, the end of the fiscal year frees up more than 400 million dollars that was held in reserve in the event receipts came in the opposite direction, below the estimate.
Dick Pryor: So that's about a billion dollars. What happens with that extra money?
Shawn Ashley: Normally, collections over the estimate are deposited in the Rainy Day Fund, but that fund is at its maximum cap, $1.3 billion. So, this money will be carried forward as cash and will be available to be appropriated by lawmakers during the 2027 legislative session.
Dick Pryor: What would it take for the legislature to raise the cap on the Rainy Day Fund so that more money can be deposited in it?
Shawn Ashley: The cap on the Rainy Day Fund is set in the Oklahoma Constitution at 15% of the prior fiscal year certified revenue. So, it takes a constitutional amendment to increase it. Governor Stitt has encouraged lawmakers several times to raise that cap, but the legislature has yet to send such a proposal to a vote of the people. When the Rainy Day Fund was first created by voters with the passage of State Question 587 in 1985, the cap was 10% of prior fiscal year certified revenue. But voters approved State Question 757 in 2010 that raised it to its current 15% level.
Dick Pryor: Shawn, what does it take to tap into the Rainy Day Fund?
Shawn: It takes a declaration of the governor and special votes in both chambers of the legislature in order for lawmakers to be able to appropriate that money. And it's been a number of years since they have actually tapped into those funds.
Dick Pryor: Data centers have become a hot topic on the campaign trail here and around the nation. It's something lawmakers will likely deal with in the next legislative session. And a couple of bills from this past session will provide a starting point for those discussions. What do those bills do?
Shawn Ashley: House Bill 2992 creates the Data Center Consumer Protection Act of 2026. And it requires large load electricity customers like data centers to bear the cost of infrastructure improvements to provide electricity to their facilities rather than passing those costs on to other consumers. It also includes language that requires proposed large load facilities to notify neighboring landowners of their intention to develop such a facility.
Senate Bill 259 updates statutes regarding groundwater permits and imposes certain metering and measurement requirements that currently are not in place and allows the Water Resources Board to impose fines and fees for those that use amounts of groundwater in excess of what they are allocated. It also requires data centers to use closed loop cooling systems rather than evaporative systems that consume more water.
Dick Pryor: Legislative interim studies are starting at the Capitol. What's first on the agenda?
Shawn Ashley: County fairground needs. The Senate Local and County Government Committee will hear a study on the issue Tuesday that was requested by Senator David Bullard. Now, I was surprised to find there are more than 20 sections of law related to county fairs and their funding in state statute and in 2003 the legislature created the County Fair Enhancement Act which is funded from donations made by taxpayers from their individual and corporate income tax refunds. And that money is then distributed as grants by the Department of Agriculture to local county fairs. But since we started this conversation talking about state revenue, in FY 2025, the most recent year for which debt is available, the fund received no donations.
Dick Pryor: All right, that's a start and there are many more interim studies ahead.
Shawn Ashley: That's right.
Dick Pryor: Thank you, Shawn.
Shawn Ashley: You're very welcome.
Dick Pryor: For more information, go to quorumcall.online. You can find video of Capitol Insider segments on the KGOU You Tube channel. Audio and transcripts are at kgou.org and look for Capitol Insider where you get podcasts. Until next time, with Shawn Ashley, I'm Dick Pryor.
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