Lawmakers consider $300M roads bond

A proposal to use $300 million in bonds to help the state’s ailing budget situation is getting some pushback.

House Minority Leader Scott Inman said Republicans have proposed passing a $300 million bond to help fund road projects.

“It only pushes us further into debt,” Inman, D-Del City, said. “It is not fiscally responsible or fiscally conservative to balance the budget on the state’s credit card.”

The Oklahoma Department of Transportation receives what is called “off the top” money, or funds that go straight to the agency rather than being appropriated by lawmakers. The agency receives slightly more than $500 million in “off-the-top” funds. Each year, $59.7 million is added until the cap of $575 million is reached in 2019, said Michael Patterson, Oklahoma Department of Transportation executive director.

The agency will continue to get the $575 million annually, according to the transportation department. The plan includes removing some of the off-the-top money and replacing it with bond funding, allowing lawmakers to use the $300 million to plug holes in the state budget.

The state expects to have about $878 million less to spend in crafting a fiscal year 2018 budget.

Last year, lawmakers clawed back funds from the agency after passing a $200 million bond issue with the understanding it was a one-time event.

Patterson said the offthe-top arrangement, passed by lawmakers, allows the agency certainty when planning road projects.

The bonds must go to future highway projects, not ones currently in the works, Patterson said. That creates financial problems for the agency, Patterson said.

“We are opposed to another bond,” Patterson said.

“It will affect the eightyear plan going forward and our ability to pay current bills.”

Inman said Gov. Mary Fallin has been critical of the use of one-time gimmicks to balance the budget. Inman said that if the Republican budget plan includes bonds, he hopes Fallin will veto the budget. If that occurs, lawmakers are looking at a special session, Inman said.

Michael McNutt, a spokesman for Fallin, said the governor will withhold comment while proposals are being developed.

“Bonding is something that is always considered when in a contraction cycle as we have experienced the last few years,” said House Speaker Charles McCall, R-Atoka. “I can’t say that it is a firm part of our budget plan, but I can certainly confirm there have been discussions about bonds.”