General Revenue Fund (GRF) collections for the State of Oklahoma in April missed the estimate by 12.8 percent, according to officials. However, officials said further midyear reductions to agencies remain unlikely.
According to Preston Doerflinger, Secretary of Finance, Administration and Information Technology, as state government’s main operating fund, the GRF is the key indicator of state government’s fiscal status and the predominant funding source for the annual appropriated state budget. GRF collections are revenues that remain for the appropriated state budget after rebates, refunds and mandatory apportionments. Gross collections, reported by the State Treasurer, are all revenues collected by the state before rebates, refunds and mandatory apportionments.
April GRF collections of $611 million were $89.4 million, or 12.8 percent, below the official estimate upon which the Fiscal Year 2016 appropriated state budget was based, and $62.3 million, or 9.2 percent, below prior year collections.
Most state agencies have seen monthly general revenue allocations for FY 2016 reduced by seven percent due to a midyear revenue failure in the GRF. The reductions were required to maintain a balanced budget amid declining revenue collections caused by sustained low oil prices.
“April was weak, but it will not cause further midyear general revenue allocation reductions to agencies,” said Doerflinger. “Current agency allocation levels projected and accounted for down months like April for the remainder of the fiscal year. Barring something drastic, the General Revenue Fund should finish the year without additional across-the-board reductions to agencies.”
Total GRF collections for the first ten months of FY 2016 were $4.3 billion, which is $413.2 million, or 8.7 percent, below the official estimate and $448.8 million, or 9.4 percent, below prior year collections.