State Treasurer Todd Russ is excited about the future of Oklahoma. Despite a minor revenue dip, Oklahoma’s financial standing remains remarkably strong compared to the past decade. Its investment portfolio, meticulously managed, yields significant returns, exceeding the previous year’s performance.
“I manage about a sixteen-to-seventeen-billion-dollar investment portfolio for the state of unspent money,” Russ said. “The year before I became State Treasurer, they generated about seventy million dollars on that. For 2024, my office generated 376 million dollars on that, and that number has gone up as far as investment numbers. These are historical, out of the park, record-highs that we are seeing happening out of the treasury right now.”
December’s gross receipts, though slightly down, paint a picture of an overall positive trajectory. As the new year approaches, Russ’s confidence in Oklahoma’s financial future is unwavering.
Key highlights from December’s report:
- Income tax collections surged by 48.1 percent, marking a strong rebound in personal and corporate tax contributions.
- Sales and use tax revenue increased by 0.9 percent, indicating steady consumer activity during the holiday season.
- Gross production tax revenue climbed by 18.8 percent, signaling a temporary recovery in the oil and gas sector.
- Motor vehicle tax revenue rose by 20.5 percent, demonstrating strong demand in the auto market.
Treasurer Todd Russ commented on the report, stating, “While the state’s revenue trends may seem wobbly, this is typical for the current economic conditions caused by Fed adjustments.”
Recent Federal Reserve policies, including interest rate adjustments to combat inflation, have influenced consumer spending, investment activity, and business growth across the country. Higher borrowing costs have affected markets, but Oklahoma’s December tax collections suggest that parts of the economy remain resilient. The state’s ability to sustain revenue growth despite these financial conditions reflects its diversified economy and steady employment levels.
“Oklahoma’s economy is diversified,” he said. “Agriculture is still a big part of it, but we have had a lot of things come into the state. Oklahoma is the best-kept secret in the nation that got out. Businesses are looking to come into Oklahoma, and it has really built up a strong economic base for the state.”
The conversation then shifted toward Oklahoma’s economic growth, particularly in rural areas. Todd was brimming with excitement about the state’s initiatives designed to bolster this growth. He spoke of the Oklahoma Agricultural Linked Deposit Program, a beacon of hope for struggling agricultural lenders and their customers while explaining that it has been under-utilized for many years.
“For ag lenders and ag people that might be struggling, we have a program through the treasury that will make a discount deposit to that ag lender that has an ag customer that needs a little hand up,” Russ explained.
Another program, IntraFi, empowered community banks by allowing them to leverage state deposits, improving their liquidity and lending capacity.
“When the rates went up, especially the smaller banks, were just screaming for deposits, and liquidity,” Russ shared. “We got this opportunity where they don’t have to pledge security to take deposits. They can go through the IntraFi program and that helps them dramatically.”
Eager to share more details, Todd encouraged people to explore the Treasurer’s website, a treasure trove of information on these programs and others.
Economic diversification is another topic on Russ’s agenda. While acknowledging oil and gas as a cornerstone of Oklahoma’s economy, he emphasized a crucial shift indicating that the reliance on these resources has lessened, with rig counts now constituting less than half of the state’s total. Oklahoma is embracing a new era, one fueled by renewable energy. Wind power has become a dominant force, generating a staggering 48% of the state’s electricity.
“When I got into politics 25 or 30 years ago, oil and gas numbers were probably a third of our state’s appropriated budget,” Russ shared. “Today, it is in the ten percent range. That is a significant difference that tells you a lot about makeup of the state’s financial footing, now because the oil and gas haven’t gone away. It is that we have built around that and bolted on so many other things from IT to research to aerospace engineering. That is where you get that budget that went from $6.8 billion to $12 billion in the revenues that we are seeing in the state.”
Oil rigs are being built more efficiently nowadays as well, resulting in fewer rigs on the horizon, but record production numbers.
Looking ahead, Russ painted a vibrant picture of Oklahoma’s future. Upcoming attractions and events promise to draw tourists in droves, injecting a surge of revenue into the state’s coffers.
“People don’t think about that when they think about revenue coming into the state,” Russ said. “Tourism is a significant number and that is just going to grow.”
He recounted his experience hosting representatives from Moody’s and Standard & Poor’s, two of the largest bond rating agencies in the United States. These visits weren’t merely business trips; they were opportunities to showcase Oklahoma’s charm and economic potential.
“It is a big deal to get a good rating on our bonds, and we haven’t had a rating upgrade in twenty years, as a matter of fact, we’ve been downgraded,” Russ admitted.
His office invited the representatives to the state and took them on a grand tour including breakfast with the Governor, a tour of the Capitol and Treasury, a visit to Tinker Air Force Base, a special tour of private aerospace facilities, energy facilities, and downtown Oklahoma City.
“We tried to show them as many things about Oklahoma as we could in a day,” Russ said. “They were absolutely blown away!”
Impressed by what they saw, the agencies rewarded Oklahoma with an improved bond rating, a testament to the state’s resilience and growth. “We just lack one bump to getting probably one of the highest ratings you can get on our bonds, now,” Russ said excitedly.
As the meeting concluded, a sense of optimism lingered. Oklahoma’s financial health is robust, its economy on an upswing, and its future brimming with promise. With dedicated leadership and innovative programs, Oklahoma is poised to continue its journey toward a brighter tomorrow.
“There is nothing like good neighbors and good friends,” Russ shared. “That is what Oklahoma is made up of – people who hold on to neighborly values and our faith and the values that come from those things. It is hard to beat.”
Read the full December Gross Revenue report at: treasurer.ok.gov.
