County devotes $500,000 to rainy day program

Nov. 8—County rainy day programs become more common as Cleveland County allocates $500,000 from its annual budget in preparation for emergencies and natural disasters.

"Finding government efficiencies. That's what it's about," said Jacob McHughes, District 2 county commissioner and member of the Cleveland County budget board.

Counties are able to secure funds thanks to the Senate Bill 280, which passed the state legislature unanimously in 2021. According to the legislation, about one half of the fund can be used in the case of natural disasters, and other parts of the program can be used for budgetary supplements and revenue failures.

At the time, McHughes was the legislative liaison who worked with Sen. Marty Quinn, R-Claremore, and other state lawmakers to author and run the bill.

The program is "mirrored" off the state's rainy day fund, and is the first of its kind for counties in Oklahoma, McHughes said.

"The first leg of it was actually getting the legislation passed, but this is the second leg of it where we're doing what we're supposed to be doing as county officials by putting half a million dollars into that account," he said.

Cleveland County Treasurer Jim Reynolds said the fund allows the county to be responsible financially.

"It kind of protects the money from this rogue spending that could happen under circumstances and with the wrong elected officials," he said.

"I like seeing more of it go into these reserve funds because there's more protections and safeguards to make sure that it is there for a true emergency," he added.

McHughes said that before this legislation there was no good way for counties to retain money for certain emergencies.

Reynolds explained that before funds could be used from the capital fund, but that spending is usually under the discretion of the commissioners.

"The commissioners have all legal rights to go and spend that money to buy buildings, to replace carpet, to change air conditioning systems, buy generators, whatever the need may be, they can do that. And it is their decision and their decision alone," he said.

The rainy day fund allocation is decided by the budget board, which includes the commissioners and other elected county officials, McHughes said.

"Just makes good common sense," said State Representative Justin Humphrey, R-Lane, who helped lobby for the bill at the time.

"It's just something that I was trying to help every county be able to do," he said.

Humphrey said that not every county is able to allocate funds in this way despite the bill because it depends on available resources, which some counties may not have.

"Most counties don't really have the funds to actually put money in, they're just strapped, you know, they're just trying to make it day to day, so that would only help a few counties," he said.

McHughes said that Cleveland County and Rogers County both put money into rainy day programs, and Cleveland County has made the highest allocation between the two.

In a statement sent Friday, Sen. Mary Boren, D-Norman, said: "I've noticed a growing trend to expand the power of county government in Oklahoma. Establishing a rainy-day fund is consistent with that effort. While it is wrong to keep taxpayer money from funding projects and services, it is wise to set aside the right amount in case of unexpected weather-related events that are demanding of our counties' resources. Ideally, a rainy day fund is a small percentage of the overall revenue. In Cleveland County an allocation of $500,000 to the rainy-day fund seems to be a small percentage of the overall budget. Citizens are right to monitor rainy day funds to make sure they are the right amount and are used for authentic unexpected needs, instead of a way to justify the reduction of core services."