Oklahoma's attorney general says the state’s finance officials can legally borrow money from Oklahoma’s Constitutional Reserve Fund.
Finance Secretary Preston Doerflinger has borrowed $240.7 million, the entire balance of the fund, this budget year to cover the state’s expenses.
Doerflinger requested Attorney General Mike Hunter’s opinion of whether it’s legal to borrow from the fund, since the Oklahoma Constitution states the finance secretary can transfer state funds to cover expenses when revenue is down.
Hunter wrote in an opinion released Monday that transfers from the fund are legal if they’re temporary. Under the Constitution the borrowed funds are to be replenished by the end of the fiscal year.
Hunter also said that transfers from the fund must be based on a reasonable estimate.