In Oklahoma, we pride ourselves on hard work – consistent with our state’s motto, “labor conquers all things.” Our government leaders have been working hard to attract more job creators, investors, and workers to the Sooner State, highlighting the fact that living costs in Oklahoma are up to 40% lower than the national average. Combined with our low-tax and reasonable regulatory environment, our state’s attractive cost of living has helped us encourage companies to break ground on major projects in recent years that have created thousands of new jobs and billions in private investment to fuel our state’s economic growth.

However, this potent recipe for success is at risk as a result of recent laws that impose new, unexpected financial burdens on taxpayers. Specifically, laws that prohibit certain financial institutions from doing business in Oklahoma – spurred by misinformation about their banking practices and a desire by politicans to score political ‘points’ – have shut out many of the nation’s largest banks, reducing competition in the municipal bond market and raising the cost of local debt that is ultimately passed along to taxpayers.

Due to an overly broad interpretation of this law, large financial institutions like Wells Fargo, Bank of America, and JPMorgan Chase could be pushed out of the market for allegedly ‘boycotting’ the fossil fuel industry, despite investing trillions of dollars in fossil fuel projects in recent years. These laws have caused confusion and concern for local governments and other public institutions in Oklahoma, and our taxpayers, our state pension system, and our overall business environment have become collateral damage.

When taxpayers vote to approve local bonds, they expect the government to get them the best bang for their buck. If government tightens the competition in the municipal bond market to score political points, and there are no financial institutions large enough to offer attractive interest rates, taxpayers are left to pay the balance of the additional costs that are piled on to the local government’s debt.

It's important for our state’s leaders to recognize that pushing legislation that prioritizes short-term political ‘wins’ over the fiscal health of our local institutions could very well lead to a slippery slope of harmful legislation. This is of particular concern when extended to other critical industries in Oklahoma like agriculture, where the reduction of financing options will drive borrowing prices even higher for our producers.

Infrastructure and other crucial local government projects to support Oklahoma’s growing economy are at risk of stalling if big banks are kicked out for politically-motivated reasons. We need to work harder to net positive outcomes, or else our business, taxpayers, and communities will pay the consequences.

John Sparks, Former Oklahoma State Senator, Norman

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