Oklahoma passes bill creating revolving loan fund for state capital projects
1 min read
Oklahoma, which has been prevented from issuing bonds due to a delayed annual audit, could turn to a new state-financed revolving loan fund for capital projects under a bill passed by lawmakers last week.
149 ratings on CreditWatch with negative implications in the absence of timely audits.
Thompson said the legislation would save money for the state, which is on track to spend $55 million this year for interest payments on outstanding bonds.
The bill would create an approximately $600 million Legacy Capital Financing Fund within the state treasury for the Oklahoma Capitol Improvement Authority, which would loan money to state agencies to fund projects over a 20-year term.
Oklahoma had about $1.45 billion of Capitol Improvement Authority lease revenue bonds outstanding as of Dec. 31.
The ranks of eligible muni bond underwriters in the state was thinned in May when Wells Fargo, JP Morgan Chase, and Bank of America were included on the Oklahoma Treasurer’s list of 13 financial institutions determined to be boycotting the oil and gas industry.
A 2022 Oklahoma law prohibits state and local government contracts valued at $100,000 or more with companies that boycott.
