Figures shown in the spending request do not reflect the actual appropriations for Fiscal Year 2011, which must be authorized by the
Legislature.
Overview
Oklahoma's $6.7 billion state budget for FY2011 was approved in May 2010[1] and is $400 million less than the previous budget.[2] State revenues declined almost 17% in FY2010, down approximately $945 million from FY2009.[3] As a result, lawmakers cut state agency budgets 7.5% midway through FY2010. Then lawmakers relied on a combination of fee hikes, deferred tax credits and further cuts to state agencies (3% cut in general) to help balance the FY2011 budget.[3] That was not, however, enough and lawmakers additionally relied on $500 million in federal stimulus money and $277 million in funds from the Constitutional Reserve Fund to balance the FY2011 state budget.[3]
Oklahoma has nearly $600 million remaining in its Constitutional Reserve 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.[4]
Revenue Increases
The Governor's budget identified the following measures to increase State revenue:
Revenue Raising Measures
$49.3 million - increase fees for services, licenses, and permits for various State agencies
$45 million - one-year moratorium on select income tax credits
$37.5 million - repeal income tax credit for capital investment in rural businesses
$20 million - double fee to receive an oversized load permit for commercial vehicles
$16.4 million - maintain penalty fine from late registration of motor vehicle as General Revenue
$11.6 million - consider federal tax debt forgiveness as taxable income
$11.3 million - repeal income tax credit for capital investment in rural business
$10.6 million - double fee for copy of certified driving records
$9.95 million - lower discount for electronic sales tax filling from 2.25% to 1%
$9 million - revise tax credit for the conversion of motor vehicle from traditional fuels to electric cars
$9 million - increase vending machine decal permit from $50 to $150
$7.8 million - change due date for delinquent franchise tax payments
$6.1 million - repeal discount for the timely remittance of motor fuel taxes
$4.9 million - direct tax on tobacco to General Fund
$4.2 million - revise tax on tobacco products from value-based to weight-based
$3.5 million - expand sales tax to electronically delivered items
$3 million - change sales tax remittance schedule
$2 million - change beer, wine, and liquor wholesaler tax remittance schedule
Fiscal Year 2011 ended with a budget surplus over estimated revenue. The $219 million surplus was deposited into the State Constitutional Reserve Fund and may be used by the
Oklahoma Legislature in future years to shore up sudden drops in tax revenues.[17]
Collected General Fund revenue for fiscal year 2011 was $5.1 billion, an increase of 10.5% over FY2010 amounts of $4.6 billion:
The Governor's budget for FY2011 totals $6.9 billion in total spending requests. Percentages in parentheses indicate percentage change compared to 2010. The budget request is broken down by the following expenditures:
FY2010 Supplementals - $101 million
Appropriations by Cabinet Department: $6.8 billion (-3%)
$3.7 billion - Education (+2%)
$1.2 billion - Health (-2%)
$698 million - Human Services (-1%)
$653 million - Safety and Security (-1%)
$209 million - Transportation (+0%)
$79.9 million - Finance and Revenue (-2%)
$75.5 million - Judiciary (-2%)
$69 million - Commerce and Tourism (-18%)
$38.5 million - Agriculture (-3%)
$37.1 million - Veterans Affairs (-1%)
$33.4 million - Legislature (-3%)
$23.7 million - Human Resources and Administration (-2%)
$19.8 million - Science and Technology (-3%)
$14.2 million - Environment (-3%)
$11.3 million - Energy (-3%)
$11 million - Military (-3%)
$6.8 million - Secretary of State (-4%)
$2.8 million - Governor and Lieutenant Governor (-4%)
The
Oklahoma Legislature approved total appropriations for fiscal year 2011 of $6.7 billion. Percentages in parentheses indicate percentage change compared to the Governor's budget. The final appropriations are broken down by the following expenditures:[18]
Appropriations by Cabinet Department: 6.7 billion (-2%)
$3.5 billion - Education (-4%)
$1.23 billion - Health (+2%)
$723 million - Human Services (+4%)
$653 million - Safety and Security (+0%)
$115 million - Transportation (-45%)
$86.3 million - Finance and Revenue (+8%)
$80.8 million - Judiciary (+7%)
$79.2 million - Commerce and Tourism (+15%)
$36.1 million - Agriculture (-6%)
$36 million - Veterans Affairs (-3%)
$32 million - Legislature (-4%)
$23.1 million - Human Resources and Administration (-3%)
$19.2 million - Science and Technology (-3%)
$13.8 million - Environment (-3%)
$10.9 million - Energy (-4%)
$10.8 million - Military (-2%)
$9.1 million - Secretary of State (+34%)
$2.6 million - Governor and Lieutenant Governor (-7%)