Oklahoma leaders split on budget fix
Governor opposes cuts; GOP members hope to avoid draining Rainy Day fund to end shortfall
BY MICHAEL MCNUTT
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Published: November 16, 2009
The governor and legislative leaders disagree on how much of the state’s savings account should be used to deal with this fiscal year’s budget, which is now on track to come in about $1 billion short of estimates.
Oklahoma Gov. Brad Henry speaks to reporters during the Oklahoma Associated Press' annual legislative forum at the Oklahoma state Capitol building Tuesday, Jan. 27, 2009. (AP Photo/Bill Waugh)
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Billion-dollar problem
• This fiscal year’s budget is $7.2 billion.
• Collections for the state’s general revenue fund, the principal source of legislative appropriations, were estimated to bring in $5.4 billion.
• Projections now indicate income for the general revenue fund will amount to about $4.4 billion, or about $1 billion below the estimate.
Bottomed out? State Treasurer Scott Meacham said the most recent revenue collections could indicate the state’s economy has bottomed out. October’s shortfall was 18.2 percent below estimates, or nearly 8 points better than the first three months of the fiscal year. Corporate income tax collections were 90.3 percent above the estimate, which Meacham said indicates the recession may be losing its grip on the national economy. "Corporate income tax collections tend to be the most tied to the national economy because we get allocations from corporations that operate in multiple jurisdictions,” he said. "When the economy turned bad nationally, it was our corporate collections that fell first.” Also, natural gas prices increased earlier this month to nearly $5 per 1,000 cubic feet, more than twice the amount it was a couple months ago. The state’s budget estimated natural gas prices at $5.22 per 1,000 cubic feet; a year ago natural gas was about $7 per 1,000 cubic feet.
State to need $600M by June Meacham said he estimates the state will come up short by about $600 million by the end of the fiscal year, June 30. The state still has about $600 million in federal stimulus money that legislators put aside for the 2011 fiscal year budget. About $630 million in federal stimulus money was used in this year’s budget.
• This fiscal year’s budget is $7.2 billion.
• Collections for the state’s general revenue fund, the principal source of legislative appropriations, were estimated to bring in $5.4 billion.
• Projections now indicate income for the general revenue fund will amount to about $4.4 billion, or about $1 billion below the estimate.
Bottomed out? State Treasurer Scott Meacham said the most recent revenue collections could indicate the state’s economy has bottomed out. October’s shortfall was 18.2 percent below estimates, or nearly 8 points better than the first three months of the fiscal year. Corporate income tax collections were 90.3 percent above the estimate, which Meacham said indicates the recession may be losing its grip on the national economy. "Corporate income tax collections tend to be the most tied to the national economy because we get allocations from corporations that operate in multiple jurisdictions,” he said. "When the economy turned bad nationally, it was our corporate collections that fell first.” Also, natural gas prices increased earlier this month to nearly $5 per 1,000 cubic feet, more than twice the amount it was a couple months ago. The state’s budget estimated natural gas prices at $5.22 per 1,000 cubic feet; a year ago natural gas was about $7 per 1,000 cubic feet.
State to need $600M by June Meacham said he estimates the state will come up short by about $600 million by the end of the fiscal year, June 30. The state still has about $600 million in federal stimulus money that legislators put aside for the 2011 fiscal year budget. About $630 million in federal stimulus money was used in this year’s budget.
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Who told you Maps 3 takes state funds? They lied to you. It is funded by the 1 cent Oklahoma City sales tax increase passed in the late 1990s.
You are exactly right. Per the ODMHSAS Press Release from 11/13/09, "Other cuts may be realized as a result of agency streamlining and announced furlough days for department leadership". So basically the ODMHSAS has admitted that the very last step they will take would be to have the people in charge (ie 'department leadership'), who earn the most money, take furlough days. The department would rather cut services than (God forbid) their own management take required time off. And this is a perfect example as to why the state is having budget problems.
These politicians easily hand budget cuts to every single state agency forcing furloughs, RIFs, and service reductions, but don't take any cuts themselves or even forgo their own per diem. Now they want to micromanage the agency services... and heaven forbid they actually rebuild a tax base they've managed to gut in the last 10 years?
Foolish politicians!
1. The state is the largest employer in Oklahoma, you start cutting jobs, less tax revenue and more strain on state's unemployment benefits.
2. Maps 3 is not a tax increase and will create 1,000s of jobs which means less unemployment rates and more tax revenue.
3. This is exactly why we have a rainy day fund. Oil business' revenues are shooting back up and those tax dollars will soon be coming back in.
4. If you have to cut somewhere, start with corrections. Too many addicts are sent to prison to learn how to be criminals. Its a spiral out of control.
Don't worry, I'm sure your elected legislators are at this very minute preparing a bunch of worthless, trivial ways to spend what money you don't have in the upcoming session.....
Where will they get the revenue? They'll just keep slashing essential services so they have some "play money" for their upcoming session of "pocket lining".......
You elected 'em, you deal with the consequences......
Probably doesn't matter anyway, if they were in session they'd be worried about 10 commandments monuments and horse teeth filing instead of trying to make this desolate dirt hole and it's "Joe Dirt" inhabitants a better way of life...