Oklahoma state budget
From Sunshine Review
Oklahoma is facing an estimated $640 million deficit for the current FY 2010 that will end June 30, 2010. State revenues are well below last year and the modified projections that served as the basis for building the $7.2 billion budget, which increased appropriations 1.5% above the FY 2009 budget. FY 2010's first quarter revenue collections were 30% below first quarter FY 2009 and 26% less than the estimate. Gov. Brad Henry and leaders from the Oklahoma Legislature announced October 27, 2009 state agencies should expect the 5% ordered reductions in place since July will continue for the remainder of the fiscal year.[1][2]
Oklahoma has nearly $600 million in its Rainy Day Fund, but has limitations in using it to fill the budget shortfall. Three-eighths of the fund may be used to fill the 2010 mid-year gap, three-eighths may be used for the next fiscal year, and the remaining quarter may be used in a declared emergency by the Governor with a three-quarter vote of the Legislature. David Blatt, director of policy at the Oklahoma Policy Institute, was asked in October 13, 2009 what seems to be the plan of state leaders to address the deficit. Blatt responded, "The answer is that there is no official plan that has been announced or even really debated. But we can kind of glean a behind-the-scenes or ad hoc strategy. There doesn't seem to be any initiative for a special session of the Legislature to tap the Rainy Day Fund, allocate cuts or find additional revenue."[3]
Gov. Henry stated October 27, 2009, “When the regular legislative session convenes in February, we will have a better picture of the overall revenue outlook and more tools available to address the shortfall. We know the cuts will cause additional hardship for agencies and programs, but given the short-term fiscal outlook, there are no good options available.”[4]
[edit] Budget Background
The Oklahoma state fiscal year begins July 1 and ends June 30. On October 1 all of the state's agencies submit their budget requests to the Governor and the Legislature. The Governor presents his proposed budget the first Monday in February. From February through April state officials deliberate on the proposed budget. By early June the Governor evaluates any and all changes before a final decision is approved.[5]
The Oklahoma Policy Institute notes that, "Oklahoma's state and local governments face a long-term fiscal gap in which ongoing revenues will not be enough to pay ongoing spending commitments. The fiscal gap results from rapidly increasing health care costs, an aging population, and commitments for employee and retiree benefits."[6]
See Oklahoma state budget (2008-2009) for more information.
[edit] Accounting Principles
The Oklahoma State Auditor and Inspector audits state and local agencies in the state, publishing its audit reports online. The Oklahoma State Auditor and Inspector is a statewide elected position serving a 4-year term. The office of Examiner and Inspector and the State Auditor was consolidated in a special election on July 22, 1975. Steve Burrage was appointed to the position by Gov. Henry on July 10, 2008 after the June 16, 2008 resignation of Jeff A. McMahan under indictment for accepting improper cash and gifts from an Oklahoma businessman.[7][8]
The Institute for Truth in Accounting (IFTA) rates Oklahoma “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Oklahoma's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[9] Oklahoma's CAFRs are annual publications of the Oklahoma Office of State Finance and prepared by the Division of Central Accounting and Reporting. The Oklahoma State Comptroller directs the daily operations of the Division of Central Accounting and Reporting. Brenda Bolander is Oklahoma's State Comptroller and Michael Clingman is Director (appointed by the Governor and approved by the Senate) of the Oklahoma Office of State Finance.[10]
| Credit Rating | Fitch | Moody's | S&P |
| Oklahoma[11] | AA | Aa3 | AA+ |
Oklahoma OpenBooks is the name of the publicly available website created by the Oklahoma government. It discloses information about Oklahoma's spending and budget, and is managed by the Office of State Finance. It is one of the few state websites that passes all five criteria of the Sunshine Review's transparency checklist.
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The cost of creating the Oklahoma OpenBooks Web site was approximately $40,000. The Web site was paid for out of existing Office of State Finance funds, staff and through achieved efficiencies. A few members of the Office of State Finance Information Services Division and Administrative Division staff were used on a part time basis in addition to the services of the company that manages the State's site, OK.gov.
The Oklahoma OpenBooks page provides a searchable database of state expenditures and revenues. How often the Office of State Finance updates the database varies, depending upon the type of information being updated. For example, payroll and expenditures information is updated monthly, whereas the list of vendors is updated annually.[12]
The following table is helpful in evaluating the level of transparency provided by Oklahoma OpenBooks:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary |
|---|---|---|---|---|---|---|
| Oklahoma OpenBooks |  | | |  | | |
For further information, see
- Oklahoma OpenBooks, official Web site.
[edit] References
- ↑ Tulsa World, "Oklahoma governor announces state budget cuts," October 27, 2009
- ↑ The Edmond Sun, "Skimpy revenue dims state budget picture," October 15, 2009
- ↑ The Edmond Sun, "Skimpy revenue dims state budget picture," October 15, 2009
- ↑ Tulsa World, "Oklahoma governor announces state budget cuts," October 27, 2009
- ↑ Oklahoma Open Books,"overview of the process" retrieved February 19,2009
- ↑ Oklahoma Policy Institute, "Oklahoma Policy Institute's Online Budget Guide," October 2009
- ↑ Oklahoma State Auditor and Inspector Web site, retrieved November 6, 2009
- ↑ NewsOK, "McMahan resigns; impeachment off," June 16, 2008
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ Oklahoma Office of State Finance Web site, retrieved November 6, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ How to Use OpenBooks
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