Oklahoma state budget
From Sunshine Review
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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]
[edit] Budget figures
The following table provides a history of Oklahoma's expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $15.9 [7] | $89.8 [7] |
| 2001 | $18.3 [7] | $94.3 [7] |
| 2002 | $20.7 [7] | $97.2 [7] |
| 2003 | $20.8 [7] | $103.5 [7] |
| 2004 | $20.8 [7] | $111.5 [7] |
| 2005 | $22.0 [7] | $120.8 [7] |
| 2006 | $23.9 [7] | $130.1 [7] |
| 2007 | $26.0 [7] | $140.2 [7] |
| 2008 | $28.3 [7] | $149.2 [7] |
| 2009 | $30.8* [7] | $159.8* [7] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
- 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.[8][9]
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.[10] 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.[11]
| Credit Rating | Fitch | Moody's | S&P |
| Oklahoma[12] | 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.
Sign up for the showmethespending.com weekly transparency e-updates. As transparency news about Oklahoma becomes available, it will be sent out by email and posted here.
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.[13]
[edit] Budget Transparency
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.
Sign up for the showmethespending.com weekly transparency e-updates. As transparency news about Oklahoma becomes available, it will be sent out by email and posted here.
[edit] Legislation
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.
[edit] Government tools
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.[14]
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] Limitations and Suggestions
The site should post line-item expenditures.
[edit] Support for database
In addition to the original sponsors and cosponsors of Oklahoma Senate Bill 1, various individuals and organizations promoted the creation of this database.
The concept of transparency received support from Governor Brad Henry in his State of the State address from February, 2007. He stated then,
Every Oklahoman deserves to know how their tax dollars are spent. This year, I ask for your help in establishing an easily accessible Web site in which citizens can see exactly how their money is spent. We demand accountability of state agencies and departments, and it's only fair that voters demand accountability from us.[15]
U.S. Senator Tom Coburn advocated the bill's passage, saying that "The only reason to oppose transparency and openness in government would be if you have something to hide. I hope the governor will support transparency and openness in government and quickly sign state Senate Bill 1 into law."[16]
Groups such as the National Taxpayers Union[17] and Americans for Tax Reform[18] supported creation of the database as well.
[edit] Public employee salaries
Information about public employee salaries is available here.
[edit] Economic Stimulus Transparency
- The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[19]
- Oklahoma will receive an estimated $1,878,254,929.[20]
- The economic recovery website to show how legislators and government officials in Oklahoma are spending Federal funds is available here.
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[21][22]
Oklahoma has five Congressional Districts, yet ARRP has given $1 million to its 6th District. The 6th District was eliminated by the 2000 census.
The state’s non-existent 51st District received $10.6 million in stimulus funds. In all, the phantom districts accrued more than $19 million, used to create or save 15 jobs. This amounts to nearly $1.3 million per job.[23]
[edit] See Also
Oklahoma taxpayer-funded lobbying
[edit] External links
- Oklahoma Council of Public Affairs
- Oklahoma OpenBooks, official website
- Oklahoma Office of State Finance
- Study of State Budget Gaps
- Oklahoma Government spending
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
[edit] Additional reading
[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
- ↑ 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 US Government spending,"Oklahoma state and local spending," retrieved February 20,2009
- ↑ 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
- ↑ How to Use OpenBooks
- ↑ Governor Brad Henry's State of the State Address, February 5, 2007
- ↑ Dr. Coburn Comments on State Taxpayer Transparency Act, June 4, 2007
- ↑ An Open Letter to Oklahoma Governor Brad Henry: Sign the Taxpayer Transparency Act, May 31, 2007
- ↑ Let The Sunshine In!, March 9, 2007
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal,"Stimulus Spending by State," March 12,2009
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Oklahoma, Watchdog.org, November 17, 2009
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