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Oklahoma
State Senate
Communications Division
State Capitol
Oklahoma City, Oklahoma 73105
For Immediate Release: January 17, 2012
Sen. Dan Newberry
Newberry files debt reduction proposal
Sen. Dan
Newberry has filed legislation aimed at reducing Oklahoma’s
long term fiscal burden by guaranteeing a percentage of spillover
funding is dedicated toward paying the state’s pension liability
debt.
Senate Bill 1264 would take effect after the state’s Rainy
Day Fund is full. The measure would then ensure that 33 percent
of any spillover funding is applied toward the reduction of pension
liability debt. Once pension liability is funded at 80 percent,
the same percentage of spillover funding would be dedicated to reducing
the state’s bonded indebtedness.
“Faced with budget shortfalls, the Legislature in recent years
has streamlined state government and reduced waste,” said
Newberry, R-Tulsa. “With recovery on the horizon, it only
makes sense that we also focus on assuring the long-term fiscal
viability of state government. With capital fleeing other states
that have failed to control their long-term debts, it’s important
we take action to prevent such a scenario.”
Newberry noted that while recent reforms have set the state on a
path toward long-term fiscal stability, his proposal would further
strengthen Oklahoma’s retirement systems.
“In order to assure our long-term economic health, we must
reduce our debt,” Newberry said. “When debt grows, taxes
grow. We want to grow jobs and one of the nation’s strongest
economies. Proposals like this are an important part of that effort.”
Rep. Randy McDaniel said pension reform will protect Oklahoma from
the financial problems many other states have faced.
“Reducing our pension liability debt is critical to ensure
the long-term viability of the state pension system,” said
McDaniel, R-Oklahoma City. “This legislation ensures that
we take care of our past obligations before new spending proposals
are considered.”
For more information contact:
Sen. Newberry: (405) 521-5600
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