State Treasurer Todd Russ Applauds Successful Bond Offering to Fund $275 Million in Transportation Improvements

OKLAHOMA CITY (May 8, 2025) – Within the Oklahoma State Treasurer’s Office is the Oklahoma Capitol Improvement Authority (OCIA), which took official action with financing a $275 million infrastructure package in partnership with the Oklahoma Department of Transportation (ODOT).

Approved earlier this year by the OCIA Board as authorized by the Legislature, the bond financing will fund major transportation improvements across the state, such as upgrades to the Roosevelt Bridge over Lake Texoma, a new truck bypass on U.S. Highway 81 in Chickasha and the widening of I-35 from south of Purcell to Ardmore.

“This is a strong example of careful and responsible financial management,” said State Treasurer Todd Russ. “Upgrades and maintenance can be painful, but they are extremely vital. By acting at the right time in the bond market, we are securing the best possible rates to finance important transportation upgrades that will benefit Oklahoma families and businesses for years to come.”

The OCIA Board—chaired by Governor Kevin Stitt, with Lt. Governor Matt Pinnell as Vice Chair, and Treasurer Russ serving as Secretary—approved the project in February 2025. Other board members include Tim Gatz, Rick Rose, Sterling Zearley, Charles Prater and Jeffrey Cartmell. The Office of the State Treasurer, on behalf of OCIA, executes the bond financing to generate project funds.

The Board authorized the issuance of the Oklahoma Capitol Improvement Authority State Highways Capital Improvement Revenue Bonds, Series 2025A, in an amount not to exceed $275 million. These funds will be used for construction, maintenance, and improvements to state highway and bridge infrastructure. As part of the state's goal of becoming the top 10 nationwide in sound roads and bridges, this funding is crucial to continuing the positive momentum created over the last ten years.

The pricing was competitive with strong investor demand, which in conjunction with the tax-exempt status of the bonds, allowed for tightening of spreads and a lower cost of capital on the financing —further evidence of the state’s strong credit standing and market timing.

“We carefully watched the market and weighed the best possible time to act, and result spoke to those efforts,” said Treasurer Russ. “OCIA’s role within the Office of the State Treasurer ensures Oklahoma can respond quickly and effectively in moments like this—making the most of market conditions and investing wisely in our state’s future.”

Bond proceeds will be delivered promptly to ODOT to begin the authorized projects.

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Photo: State Treasurer Todd Russ

Contact: Lara Blubaugh
lara.blubaugh@treasurer.ok.gov

Treasurer Todd Russ, along with Governor Kevin Stitt, Pro Tempore Lonnie Paxton and Speaker Kyle Hilbert, today celebrated Oklahoma’s strong financial standing after S&P Global Ratings upgraded the state’s credit rating. S&P Global Ratings raised Oklahoma’s issuer credit rating to ‘AA+’ from ‘AA,’ marking the state’s highest rating in decades. Additionally, the agency upgraded its rating to ‘AA’ from ‘AA-’ on appropriation-backed debt issued by the Oklahoma Capitol Improvement Authority (OCIA) and the Oklahoma Development Finance Authority (ODFA). S&P also assigned an ‘AA’ rating to OCIA’s upcoming $256 million bond issue for the Oklahoma Department of Transportation (ODOT) that is expected to price mid-April.

S&P revised the outlook on Oklahoma’s rating to Positive from Stable in July 2023. The latest upgrade reflects the state’s commitment to responsible financial management, including consistently positive financial results, a dedication to funding pension liabilities, and maintaining high reserve balances to cushion against economic uncertainty. Oklahoma's credit rating was 'AA+' in 2016 before experiencing a downgrade, but through years of disciplined financial management and economic growth, the state has regained its strong standing. This return to ‘AA+’ reflects the commitment to responsible budgeting, maintaining healthy reserves, and fostering economic growth—ensuring long-term stability for taxpayers and businesses alike.

Oklahoma’s latest gross receipts report highlights a significant improvement in revenue collections for December 2024 compared to the previous month. While year-over-year numbers are slightly down, the month-over-month growth of 17 percent reflects positive economic momentum heading into the new year.

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.

Looking ahead, the Treasurer’s office will continue monitoring economic trends for stability and fiscal responsibility as Oklahoma navigates shifting economic conditions.

Read the full report.