OPEA

In spite of the one month revenue recovery announced on March 9, FY 11 will still be tough for the state budget.

State revenue collections in February exceeded the official estimate for the first time since December 2008, but fell short of prior year collections for the same month.  State revenue watchers were relieved to see the rebound.  However, it is too late to help appropriations for the fiscal year beginning in July.

According to the Oklahoma Constitution, the revenue available for state leaders to appropriate during session for the following fiscal year is calculated for the last time in February.  Therefore any recent recovery cannot help cushion the blow in the budget crisis.  While state leaders cannot appropriate funds not included in the estimate during this session, they can come back and distribute any funds above the estimate at the beginning of next year.

The final certification leaves $1.55 billion less available for appropriation than was appropriated this fiscal year, after the budget cuts.  If the remainder of the stimulus funds and additional Rainy Day funds are used, the gap is $800 million between the final FY 10 budget and the funds available for FY 11.

“This means additional deep cuts to state agencies that are already struggling to make ends meet,” said OPEA Policy and Research Director Trish Frazier.  “The budget talks are just now beginning. OPEA is adamant that the cuts be shared by all functions of government.  In addition, the association is working with legislators to identify possible loopholes or exemptions to repeal for additional revenue.”

“With the current cuts, state agencies are not filling critical vacancies, offering VOBOs, furloughing employees, and in some cases RIFing dedicated public servants,” said Frazier.  “With each VOBO, retirement or RIF, the state is losing critical expertise in public services the people of Oklahoma expect and deserve.  This is taking a toll on services, the workers who are being forced out and adding to the stress and additional workload on those left behind.”

For more information on the state budget go to the Oklahoma Policy Institute Website at www.okpolicy.org.