State Budget Cuts Double; Agencies Forced to Cut 10 Percent

The Office of State Finance is ordering 10 percent budget cuts across state government after revenue collections in November fell short of projections for the eleventh consecutive month.

Tuesday, December 15th 2009, 3:15 pm

By: News 9


Staff and Wire Reports 

OKLAHOMA CITY -- The Office of State Finance is ordering 10 percent budget cuts across state government after revenue collections in November fell short of projections for the eleventh consecutive month.

Preliminary reports released Tuesday show collections to the revenue fund totaled $316.4 million last month -- more than 30 percent below the prior year and 25 percent below the estimate.

Read the preliminary reports

The 10 percent reductions in monthly allocations for December and January are double the 5 percent cuts in effect since the start of the fiscal year July 1.

"We've seen furloughs, we've seen all those kinds of things, obviously with the deeper cuts we'll see more of that," said State Treasurer Scott Meacham.

That is likely to include the Department of Public Safety, which includes the Oklahoma Highway Patrol and the Department of Corrections, which is almost fully funded by the state legislature. Representative Randy Terrill is the chairman of the public safety subcommittee.

"I don't think there's a one-size fits all answer particularly in the area of public safety because there are some agencies that are better able to absorb the cuts than others,Terrill said.

Gov. Brad Henry, House Speaker Chris Benge and Senate President Pro Tempore Glenn Coffee said in a joint statement they plan to access the state's Rainy Day Fund and leftover stimulus money to balance the budget.

"No one relishes the idea of implementing further cuts to state programs, but we really have no choice because of the fiscal realities we face," Gov. Henry said. "We will attempt to protect priority areas such as education by making targeted cuts to agencies, using reserve dollars in the Rainy Day Fund and stimulus accounts and exploring revenue enhancements and efficiency programs. None of these decisions will be easy or painless, but we really have no good options available. My goal is to do everything possible to protect state priority areas as we cut back and balance the budget."

Poorly performing revenues are prompting the cuts according to Legislative leaders.

"Our action today will be difficult, but more closely reflects the reality of the revenue picture for the state. The later into the fiscal year additional cuts come, the more painful it will inevitably be for agencies to adjust," said House Speaker Benge, R-Tulsa.

"Because we don't know how deep or how long this revenue decline is going to last, it will require that we plan the budget as if it is an 18-month cycle in order to appropriately use reserves available to us. It is possible revenues will continue to decline, and it is important that we not get ahead of ourselves without all the fiscal information yet," said Benge.

"All sides have come to an agreement that deeper reductions will have to be made in some agencies' budgets," said Senate President Pro Tem Coffee. "Revenues are still weak, and not meeting even the revised, lower projections. As a result, we will have to make some tough decisions. I would not describe it as dire. As unpleasant as it is, we are presented a real opportunity to prioritize our needs versus our wants, and make government more focused during this lean time in our history."

The official state revenue estimates will be released on December 21.

When it is completed, the governor and legislative leaders will submit the comprehensive budget proposal to the Legislature for consideration.

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