Oklahoma City Sales Tax Revenue at All Time Low

OKLAHOMA CITY -- Oklahoma City is facing some tough financial times. The city's sales tax revenue is facing a low point.

While the rest of the country struggles, Oklahoma City has been pretty fortunate. That is, until the latest sales tax numbers were counted.

At City Council today, leaders painted a picture of what could happen if revenues continue to drop.

The general fund could be in the red $10 million worth by the end of the year if sales tax dollars continue to drop. In July, collections were down 9.7 percent, in august 5.5 percent and in September revenues dropped 12 percent.

The city manager says our economy is feeling the impact of the national recession as well as lower oil and gas prices.

"We've been in a hiring freeze for several months now to try to reduce costs," Budget Director Craig Freeman said. "We're also delaying some of our capital expenditures for fleet replacement and facility improvements."

Now city leaders are looking at more drastic cuts, cuts that could impact our police and fire departments.

"We are looking at the possibility of mid-year reductions for departments," Freeman said. "It's one of the things we were holding back hoping we wouldn't have to do, but it's a reality now with the declines the way they are."

Even department furloughs are not out of the question. Freeman isn't sure how long the city will take a financial hit, but City Council has to be prepared to move quickly.

"We have to put ourselves in a position so if it does continue we are able to deal with it," Freeman said.

The budget director says preparations have been made to have discussions with unions in the event furloughs are needed.