SB1455 Oklahoma’s Plan to Use Investment Gains for Salaries Hits a Roadblock

Legislature rejects bill allowing investment money for capitol salaries

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What did SB1455 want to accomplish?

SB1455 is a bill that wanted to change an existing law to let the Oklahoma Capitol Improvement Authority use money made from investments in the Legacy Capital Financing Fund.

Here’s what the money would have been used for:

1. Paying Salaries and Other Costs: The Authority can use the investment money to pay employees and handle other costs that come up when managing and distributing funds from this account.
2. Updating the Law: The bill updates some of the language in the original law to keep it current.

Who would have benefited from this law?

Here are the people and groups who would benefit from this law:

✔️Oklahoma Capitol Improvement Authority: This organization would have more flexibility to cover costs like salaries and administration, making it easier to manage the Legacy Capital Financing Fund efficiently.

✔️State Employees: Staff working under the Oklahoma Capitol Improvement Authority would have their salaries covered directly by investment returns, providing secure funding for their positions.

✔️Oklahoma Taxpayers: By using investment returns rather than relying on additional taxpayer money, this bill helps keep costs lower for taxpayers.

✔️State Budget Planners: The bill could make budgeting easier, as the Authority can fund its costs through investment gains, potentially freeing up state budget funds for other projects.

✔️Oklahoma Infrastructure Projects: With smoother management and funding, infrastructure projects supported by the Authority could benefit, as they might receive more timely distributions and resources.

What are some concerns people might have about this law?

Some of these may be why the bill failed to pass:

⚠️Less Money for Projects: Using investment returns to pay salaries and administrative costs could mean less funding is available for actual infrastructure or improvement projects.

⚠️Dependence on Investment Performance: Since salaries and costs would rely on investment returns, a downturn in investments could affect funding stability for these expenses, possibly causing budget issues.

⚠️Reduced Oversight of Spending: Giving the Oklahoma Capitol Improvement Authority more freedom in spending might reduce oversight, which could lead to less transparency and potential misuse of funds.

⚠️Risk of Administrative Cost Increases: If administrative costs go up, more of the fund’s earnings might be diverted from projects to cover these extra expenses.

⚠️Impact on Taxpayer Expectations: Taxpayers might expect that funds for state improvement projects would go directly to those projects rather than administrative costs, which could lead to public dissatisfaction or misunderstandings about fund use.

This bill was introduced on 2/15/24 by Senator Roger Thompson [R] and Representative Kevin Wallace [R].

Due to a lack of support, missed deadlines, committee action, leadership decisions or veto, this bill failed to pass and will not be signed into law.

➡️Is this something that you think Oklahomans need? How would it have benefited the county you live in?

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