Henry optimistic about revenue spike

By Michael McNutt

Published: June 12, 2008

Prospects for raises next year for state employees and teachers are "certainly brighter” if state revenues continue to improve, Gov. Brad Henry said Wednesday.

Better than expected revenue collections for May are encouraging. That breaks a string of four consecutive months in which state revenue fell below estimates, the governor said. But he said he considers the collections a spike instead of a trend.

"I am certainly cautiously optimistic, but I'm very aware of the national economy and the reverberations across the nation including Oklahoma,” he said.

Henry supported pay raises for teachers and state workers for the 2009 fiscal year which starts July 1, but a slower state economy and new tax cuts that bit into state revenues resulted in a standstill budget.

Henry presided over a meeting of the state Board of Equalization on Wednesday. The board, which sets the amount of money legislators can spend, approved the addition of $31.2 million to the 2009 fiscal year budget through the passage of Senate Bill 2034. The money already is included in the state's $7.1 billion budget for the upcoming fiscal year.

Most of the money comes from a procedure set up that allows delinquent taxpayers to pay overdue state income or sales taxes without interest or penalties.

Delinquent taxpayers have to pay their taxes to the Oklahoma Tax Commission between Sept. 15 and Nov. 14 to avoid being assessed penalties or interest.

Two other counties, Atoka and Ellis, have made enough improvements that they are now in compliance with required procedures, said Jeff Spelman, director of the Oklahoma Tax Commission's ad valorem division. Caddo, Tillman and Love counties are not in compliance.

Counties found to be out of compliance could have a problem with records, office procedures or outdated property values, he said.

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