OKLAHOMA CITY – A measure to limit bonded debt and ensure the public’s tax dollars are spent and protected in a responsible manner passed out of the Oklahoma House today.
House Bill 2195, by Speaker of the House T.W. Shannon, would establish a cap on the nominal state bond debt to not rise above current levels. Today, outstanding tax supported bond debt is just under $2 billion. This does not include the nearly $12 billion in unfunded pension liabilities.
Under the bill, if a new bond was requested, the state debt would have to be lower than it is currently by more than the cost of the new bond in order to be obtained. Simply put, this bill means the state’s debt load can only go down, not up.
“Politicians can always come up with reasons to spend money, and we’ve seen what unchecked spending has done in Washington, D.C.,” said Speaker Shannon, R-Lawton. “As conservatives, we must ensure Oklahoma does not go down the same path. With a credit limit in place, we can be better stewards of taxpayers’ money and avoid forcing unneeded debt on future generations.”
HB 2195 now advances to the Senate.