Oklahoma § 62-34.200

§ 62-34.200.

Debt limit.

Oklahoma Statutes - Title 62. Public Finance

A. The State of Oklahoma shall not become indebted in an amount

that causes total annual debt service payments from the General

Revenue Fund to exceed five percent (5%) of the average of the

general fund revenue, as certified by the State Board of

Equalization in December of each calendar year, for the preceding

five (5) fiscal years. The Legislature, upon an affirmative vote of

two-thirds of the members of both houses, may declare an emergency

and permit the total annual debt service payments of the state to

exceed the amount provided in this section.

B. The state shall not be in violation of the provisions of

this section if a decline in the average of the general fund

revenue, as certified by the State Board of Equalization in December

of each calendar year, for the preceding five (5) fiscal years,

results in annual debt service payments exceeding the limit provided

in subsection A of this section; provided that, the state shall not

incur any additional debt service payments so long as the amount of

debt service payments, as defined in this section, continue to

exceed five percent (5%) of the average of the general fund revenue,

as certified by the State Board of Equalization in December of each

calendar year, for the preceding five (5) fiscal years.

C. For purposes of calculating the total amount of indebtedness

as provided in subsection A of this section, annual debt service

payments shall not include any indebtedness incurred through the

master lease program as provided in Sections 3206.6 and 3206.6a of

Title 70 of the Oklahoma Statutes, pursuant to a declaration of an

emergency as provided in subsection A of this section or any general

obligation bonds issued pursuant to Section 39A of Article X of the

Oklahoma Constitution.

Added by Laws 2013, c. 399, § 1, eff. Nov. 1, 2013.

§62-34.200-1. Debt affordability study.

A. The State Treasurer in cooperation with the Office of

Management and Enterprise Services shall produce a written debt

affordability study (study) to be presented to the Legislature and

the Governor.

B. The study shall be used to determine Oklahoma's debt

position relative to its benchmark debt ratio of debt service as a

percentage of revenues. The study shall incorporate information

available in other sources, such as the Annual Bonded Indebtedness

Report produced by the State Treasurer, into an analysis of

Oklahoma's debt position.

C. The study shall include the net tax-supported and net

revenue-supported debt of this state for the most recently concluded

fiscal year. It shall also include the debt for the most recently

concluded fiscal year of state agencies and state-beneficiary public

trusts which are authorized to issue debt.

D. The study shall include the following:

Oklahoma Statutes - Title 62. Public Finance

1. Projections of debt service, future debt issuance, and debt

to capacity, such as debt service as a percentage of revenues. Each

projection shall extend at least five (5) years from the study's

fiscal year of publication;

2. A discussion of Oklahoma's unfunded pension liabilities and

the impact of these liabilities on the state's ability to borrow and

cost of debt;

3. An identification and calculation of relevant metrics

including, but not limited to, debt service as a percentage of

revenues, total debt as a percentage of state personal income, and

total debt per capita;

4. A comparison of debt metrics to a select group of at least

ten other states so that Oklahoma may be able to measure and

contextualize its debt relative to other states;

5. A sensitivity analysis to understand the effects of

uncertain conditions. This sensitivity analysis may include

analysis on the impact of debt ratios of revenues being above or

below expectations or interest rates increasing or decreasing from

positions at time of publication; and

6. An estimate of available debt capacity the state may issue

over the next five (5) years without causing the benchmark debt

ratio of debt service as a percentage of revenues to exceed five

percent (5%). This estimate is based on the state's net taxsupported debt and the debt of the relevant state units and

agencies.

E. In preparing any authorization of new debt, the debt-issuing

entity, the Legislature, and the Governor shall take the study's

recommendations and estimates into consideration. In addition, the

study's recommendations and estimates shall be taken into

consideration by the Legislature and the Governor during capital

planning and budgeting processes.

F. The State Treasurer and the Office of Management and

Enterprise Services shall report the results of the study to the

Legislature by transmitting a copy to the Speaker of the House of

Representatives, the President Pro Tempore of the State Senate, and

to the Governor on or before January 15 of each year.

G. The study's recommendations and estimates shall be advisory

and not binding.

Added by Laws 2017, c. 278, § 1, eff. Nov. 1, 2017. Amended by Laws

2019, c. 53, § 11, eff. Nov. 1, 2019.