Roads and bridges; creating the Preserving and Advancing City and Town Transportation Fund. Effective date. Emergency.
Summary
SB1358 revises the state sales tax apportionment formula to redirect a portion of sales tax revenue into transportation-related and other state funds in future fiscal years. The bill changes the General Revenue Fund share beginning in FY 2028, adds a new 0.50% apportionment to a newly created Preserving and Advancing City and Town Transportation Fund beginning in FY 2028, and also continues existing allocations to education, teacher retirement, tourism, and historical society funds. It further provides for a separate $50 million annual transfer to the Oklahoma Capital Assets Maintenance and Protection Fund beginning in FY 2029.
The new city and town transportation fund is established in the State Treasury as a continuing revolving fund. Money in the fund may be used beginning in FY 2027 for the construction, reconstruction, and maintenance of municipal roads and bridges, but only after the municipality submits a project to the Department of Transportation for review and confirmation. The Department must evaluate projects using criteria such as innovation, readiness, structural adequacy, safety, serviceability, necessity for public use, and other transportation-related factors before funds are allocated.
Impact
The bill amends 68 O.S. Section 1353, which governs how sales tax revenues are apportioned among state funds, by adjusting future percentages and creating a new dedicated transportation funding stream. It also creates a new codified section in Title 69 establishing the Preserving and Advancing City and Town Transportation Fund and setting out the process for municipal project eligibility and Department of Transportation confirmation. In practical terms, the bill would shift a portion of state sales tax revenue away from the General Revenue Fund and into targeted transportation and capital maintenance uses, affecting municipalities, the Department of Transportation, and state budget allocations.
Sentiment
Based on the bill text and available legislative context, the measure appears to be framed positively as a transportation investment bill, with an emphasis on local road and bridge needs and infrastructure preservation. There are no recorded committee transcripts or votes in the provided material, so there is no direct evidence of opposition or support from debate. The bill’s emergency clause and effective date suggest proponents view the funding changes as time-sensitive and important for public safety and infrastructure needs.
Contention
The main policy tension in SB1358 is fiscal: it diverts sales tax revenue from the General Revenue Fund to a new municipal transportation fund and other earmarked uses, which could reduce flexible state revenue available for general appropriations. Another potential point of contention is the Department of Transportation’s gatekeeping role, since municipalities must obtain departmental confirmation before receiving funds, which may raise concerns about local control, administrative burden, or project selection criteria. The bill also makes long-term changes to revenue apportionment, which may draw scrutiny from budget writers and stakeholders focused on education, general government funding, and transportation priorities.
Tourism; increasing apportionment to Tourism funds; removing apportionment cap; limiting funds for operations; eliminating prohibition to spend certain funds on salaries; effective date; emergency.