Rep. Ben Sherrer
State Representative - District 8
OKLAHOMA CITY — After five weeks in the legislative session we are moving through the nearly 550 bills that came out of committees and are now eligible for consideration before the full House of Representatives.
With the focus being on the budget I have been particularly interested measures that save money and look forward to stabilization in the future. That’s why I am very supportive of a plan to create a state energy stabilization fund. Similar to the Rainy Day Fund, which is unique to Oklahoma, the energy stabilization fund would serve a similar purpose The plan calls for an automatic collection of gross production taxes above a three year average for deposit into the fund. In years when gross production taxes fall below the three year average, the fund will automatically deposit the difference into the state’s general revenue fund to help mitigate budget shortfalls.
Wild swings in natural gas prices and the economic ramifications of price instability are one of the main causes of the state’s current budget shortfall. The automatic deposits and collections will help minimize the impact of constant fluctuations in energy prices, which often heavily influence revenue collections in the state budget. Under the plan, interest from the principal in the fund would be used to fund enhanced energy recovery research. It is predicted Oklahoma may be sitting on untapped energy resources because the technology to get those resources out of the ground does not yet exist. The fund would not only serve as a way to stabilize energy tax collections, but also help expand research that over time could give a boost to Oklahoma’s economy.
Please let me hear from you on this or any other issue now pending before the legislature. I can be reached at ben@bensherrer.com or 800-522-8502. Until next week, God bless you.
• Ben Sherrer is state representative for District 8, representing is state senator for District 2, representing Rogers, Mayes and Wagoner counties.
