The Latest in Oklahoma: September 20, 2024
A&A Advocates
Oklahoma’s credit rating has been upgraded by Moody’s from Aa2 to Aa1, the second-highest possible rating, reflecting the state’s strong financial position, low debt burden, and economic diversification. Treasurer Todd Russ attributed the upgrade to the state’s responsible budgeting practices and efforts by Governor Stitt and the Legislature to maintain financial stability. Moody’s highlighted Oklahoma’s conservative budget management, low fixed costs, and balance sheet strengths.
The Oklahoma Women, Infants, and Children (WIC) Program will transition from Gerber to Similac brand infant formulas starting in October to comply with cost containment requirements. Families currently using Gerber formulas will be automatically switched to comparable Similac options, which meet FDA standards for nutrition and quality. Oklahoma WIC will offer milk-based, low-lactose, and soy-based formula options under the new contract. Medically necessary formulas will remain unchanged.
In August, Oklahoma’s General Revenue Fund (GRF) collected $603 million, which is 2.3% below the monthly estimate and 1% lower than August 2023. For the first two months of fiscal year 2025, total GRF collections reached $1.2 billion, slightly below estimates but 0.9% higher than the previous year. OMES Director Rick Rose attributed the shortfall to lower-than-expected gas prices, which caused a 39% drop in gross production gas revenue. Despite the expected decline in sales tax due to the grocery tax reduction, collections aregenerally aligned with forecasts.
The Federal Reserve has cut interest rates by half a point, marking the first reduction since March 2020. This rate cut, which brings the benchmark rate down from a two-decade high, is expected to positively affect mortgages, credit cards, and loans, although the impact may take time to fully materialize. Steve Agee, dean of Oklahoma City University’s School of Business, noted that inflation has fallen below 3%, and mortgage rates have already dropped to 6.2% from 8% last year. With increased buying power, local realtors suggest it’s a good time to enter the housing market.
Update on Interim Studies
Updates on interim studies will be available in the coming weeks. Click the links to view House studies and Senate studies.
Quote of the Week
“Through close collaboration with the Governor’s Office, the State Election Board, and our colleagues in the Legislature, Oklahoma has fortified our electoral process,” Oklahoma Secretary of State, Josh Cockroft, said in regard to the purge of over 400,000 ineligible voters from the Oklahoma voter rolls. “We’ve aggressively pursued policies to ensure voting is secure and accurate, and we’re innovating to protect our elections from emerging technology like AI. In Oklahoma, every eligible citizen will have their vote counted and their voice heard.”