Oklahoma state budget (2008-2009)
From Sunshine Review
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In February Gov. Brad Henry announced that Oklahoma's budget situation is "not good news" - a $900 million shortfall for FY 2010. However, in his recent budget proposal for FY 2010 Henry suggested cuts in a number of state agencies with the exception of education, public safety and transportation.[1] But even with budget cuts in the future Gov. Henry said that he does not anticipate furloughs or layoffs. Most state legislators said that they are opposed to using the state's "Rainy Day Fund."[2] House Speaker Chris Benge called the budget shortfall "an opportunity to make more efficient use of the money we are currently spending."[1]
In August 2009 state officials announced that because of a continued decline in state revenue all state agencies would receive a 5% cut in budget allocations.[3]
[edit] Impact of budget woes
- Main article: State budget crisis, 2009-2010
- In January Oklahoma unemployment numbers revealed that approximately 84,000 claims were processed in the month of December, a 5,000 claim increase from November.[4] But despite the rapid increase Oklahoma's unemployment rate, 4.8 percent in December, is still below the national average of 7.6 percent according to the Oklahoma Employment Security Commission.[5] In November Oklahoma's rate was at 4.9 percent, 0.8 percent higher than the rate in December 2007. Since December 2007 the state has seen an approximately one percent increase in nonfarm employment.[5] [6]
- In February the Governor announced that in light of the state's budget deficit cuts would need to made across the board, including travel expenses for example for the state's university and college system. Rep. Ken Miller said that travel is "one of the first places to look," particularly during a "lean year." In order to prevent increases in tuition state regents requested $80 million in additional funds for FY 2010.[7]
- Oklahoma's department of environmental protection is facing a 20 percent cut and the water resources board is facing a 25 percent cut. The cuts said Duane Smith, Oklahoma water resources' board executive director, will require fee increases. "Some of these fees have not been increased in 20, 30 years," he added.[8]
[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.[9]
According to a recent analysis by Americans for Prosperity, in 1996, Oklahoma’s entire state budget was $3.4 billion. In 2008, the education budget alone was $3.8 billion.[10] The budget for fiscal year 2009 totals $7.1 billion.[11]
[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 [12] | $89.8 [12] |
| 2001 | $18.3 [12] | $94.3 [12] |
| 2002 | $20.7 [12] | $97.2 [12] |
| 2003 | $20.8 [12] | $103.5 [12] |
| 2004 | $20.8 [12] | $111.5 [12] |
| 2005 | $22.0 [12] | $120.8 [12] |
| 2006 | $23.9 [12] | $130.1 [12] |
| 2007 | $26.0 [12] | $140.2 [12] |
| 2008 | $28.3 [12] | $149.2 [12] |
| 2009 | $30.8* [12] | $159.8* [12] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
[edit] Ideas about why the crisis exists
- August 2009 revenue reports revealed that July 2009 revenue totaled $336.7 million, approximately 26.3% or $120.4 million less than a year ago. July revenues were $74.4 million (18.1%) below earlier 2009 estimates.[3]
- Recently Oklahoma experienced a loss of $610 million in revenues and approximately $180 million in one-time revenue sources. Also federal money for the state's Medicaid program and programs like the teachers' program have also declined.[13]
- According to reports there are approximately $12 million dollars in uncollected taxes.[7]
- On February 19 Rep. Richard Morrissette said that Senate staff raises are "absolutely excessive" and that the pay raises for Senate Republican leadership and legal counsel is not right when other state employees haven't received pay raises in years.[14] However, Senate Pro Tempore Glen Coffee said in a statement that his current staff is smaller and is nearly $113,000 less in compensation than former Senate Pro Tempore Mike Morgan's. Raises for Coffee's staff ranged from approximately $2,000 to $17,164.[14]
[edit] Proposed actions
[edit] Governor Brad Henry
According to Gov. Henry's proposed budget, $7 billion, he suggests a balanced budget that equals approximately $102.5 million less than the current budget and an additional $300 million in budget cuts.[15] [13]Potential reforms include a ten percent cut in travel for all public safety agencies with the exception of law enforcement.[7] The Governor all suggested efficiency reforms which he said could result in $45 million in savings. In addition Henry said that he would like to step up efforts to collect money owed from delinquent taxpayers that would in turn result in approximately $12 million in savings.[7] According to state treasurer Scott Meacham cuts will be made in all agencies with the exception of education, public safety, transportation and health care.[1]
[edit] Republicans
Despite Oklahoma's impending deficit, Republican lawmakers said that they would prefer not to use the "rainy day fund" just yet. In February House Speaker Chris Benge said,"I've seen in the past when previous legislatures have appropriated Rainy Day (money) prematurely." Glen Coffee, Senate President Pro Tempore, said that he also agreed with Benge's point.[13] The "Rainy Day Fund" totals approximately $600 million.[16] Some Republicans said that they are wary of President Barack Obama's stimulus package and said that it's important to make all of the necessary cuts. "We must be careful to not over commit these dollars for recurring expenditures that can't be covered once the funds are depleted," said House appropriations chairman Ken Miller and Felecia Jones. [1]
[edit] Democrats
On February 18 the Oklahoma Democratic Party announced that they are launching an "aggressive campaign" to inform citizens on key state issues and how Republicans aren't addressing problems appropriately. For example, Rep. Richard Morrissette said that he is concerned about continued pay raises in the state senate.[17][18] Democratic Party Chairman Ivan Holmes said that President Barack Obama's economic stimulus bill will "help Oklahoma tremendously." [18]
[edit] Economic Stimulus Package
Oklahoma is expected to receive $2.6 billion of the $787 billion dollar economic stimulus package.[19] According to White House officials the package is expected to create approximately 40,000 jobs.[20]
According to preliminary reports Oklahoma is expected to receive:[21] [22]
- $460 million towards highway and bridge projects
- $136 million towards schools that have low income students
- $147 million towards special education
- $7.1 million for technology improvements
- $900 million towards Medicaid funding
- $470 million towards the state fiscal stabilization fund
[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.[23]
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.[24]
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."[25]
Groups such as the National Taxpayers Union[26] and Americans for Tax Reform[27] supported creation of the database as well.
[edit] Public employee salaries
Information about public employee salaries is available here.
[edit] Economic Stimulus Transparency
- The Economic Recovery and Reinvestment Act 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.[28]
- Oklahoma will receive an estimated $1,878,254,929.[29]
- The economic recovery website to show how legislators and government officials in Oklahoma are spending Federal funds is available here.
[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
- ↑ 1.0 1.1 1.2 1.3 Associated Press,"State revenue shortfall $612 million,"February 17,2009
- ↑ Tulsa World,"Budget shortfall confirmed," February 18,2009
- ↑ 3.0 3.1 Associated Press,"Oklahoma schools dealing with 5 percent budget cut," August 12, 2009
- ↑ KTUL,"Workforce Oklahoma Struggling As Unemployment Numbers Rise," January 29,2009
- ↑ 5.0 5.1 Tulsa World,"State unemployment rate rises," January 28,2009
- ↑ OESC,"Oklahoma's state unemployment continues rising in December," January 27,2009
- ↑ 7.0 7.1 7.2 7.3 News OK,"Where would Oklahoma budget cuts come from?," February 3,2009
- ↑ Associated Press,"Oklahoma's environmental agencies face big cuts," February 9,2009
- ↑ Oklahoma Open Books,"overview of the process" retrieved February 19,2009
- ↑ The Oklahoman, "How much is enough?", November 22, 2008
- ↑ Oklahoma office of state finance,"FY 2009 budget," February 4,2009
- ↑ 12.00 12.01 12.02 12.03 12.04 12.05 12.06 12.07 12.08 12.09 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 US Government spending,"Oklahoma state and local spending," retrieved February 20,2009
- ↑ 13.0 13.1 13.2 NewsOK,"Oklahoma budget picture to be clearer," February 15,2009
- ↑ 14.0 14.1 News OK,"Oklahoma Democrat fights Senate staff raises," February 19,2009
- ↑ Oklahoma Office of State Finance,"FY2010 Executive Budget,"February 2,2009
- ↑ Oklahoma Finances,"Open Books,"retrieved February 19,2009
- ↑ News OK,"Oklahoma Democrat fights Senate staff raises," February 19,2009
- ↑ 18.0 18.1 KSBI-TV,"OK Democrats Aggressively Campaign,"February 18,2009
- ↑ KJRH,"The economic stimulus package passed, so what does it mean for Oklahoma?," February 15,2009
- ↑ The White House,"American Recovery and Reinvestment Act:State by state jobs impact," February 13,2009
- ↑ Tulsa World,"New projects awaited," February 18,2009
- ↑ Associated Press,"Impact of stimulus on Oklahoma budget uncertain," February 19,2009
- ↑ 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
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