Oklahoma state budget (2010-2011)
- 1 Fiscal Year 2011 State Budget
- 2 Fiscal Year 2010 State Budget
- 3 Budget background
- 4 Accounting principles
- 5 Budget transparency
- 6 See also
- 7 External links
- 8 Additional reading
- 9 References
Oklahoma received approximately $321 million from the federal government under HR 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.
Oklahoma had nearly $600 million in its Rainy Day Fund, but the state faced limitations in using it to fill the budget shortfall. Three-eighths of the fund could be used to fill the 2010 mid-year gap, three-eighths could be used for the next fiscal year, and the remaining quarter could be used in a declared emergency by the Governor with a three-quarter vote of the Legislature.
Oklahoma had a total state debt of $17,254,404,041 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.
|Total spending||Healthcare||Education||Protection||Transport||Human services||Gen government|
Fiscal Year 2011 State Budget
Gov. Henry and legislative leaders reached a budget deal with just days remaining in the legislative session and with later cuts the budget ended up at $6.9 billion, which was $400 million less than the budget for FY2010.
At the end of the fiscal year, the state deposited $249 million into its Rainy Day Fund, which was $30 million more than estimated.
Rainy Day Fund
As of Jan. 23, 2011, the state's Rainy Day Fund had a balanced of $2.03. One year prior to that, it contained $596.6 million. Because limits were placed on how much money can be withdrawn, lawmakers during the previous session withdrew $100 million from the Rainy Day Fund and put it in an account so it would be available for the session starting Feb. 7, 2011.
Oklahoma faced challenges to its plans to raise revenue in FY2011.
A report released by the Oklahoma Policy Institute in December 7, 2010, predicted that the state would have $400 million less to spend in the coming fiscal year compared to the then-current fiscal year.
On August 24, 2010, the Oklahoma Supreme Court found unconstitutional a new 1 percent fee on paid health care claims that was expected to generate at least $50 million in new revenue that would have drawn federal matching funds for indigent health care. The Supreme Court rejected the new insurance fee in part because it was passed during the last five days of the legislative session, which the court held violated rules for approving new taxes. In addition, a proposed traffic camera system that state budget officials expected to generate at least $50 million in revenues from tickets sent to uninsured drivers ran into roadblocks. Lawmakers were unaware that there was no central database containing all insurance records, but the governor hoped the motor vehicle insurance verification system would be operational summer 2011.
State Treasurer Scott Meacham, however, said that he did not think more state budget cuts would needed to balance the FY2011 budget despite the loss of more than $100 million in anticipated revenue. The state was only allowed to appropriate 95 percent of anticipated revenues, so there was a small cushion for such setbacks. In addition, the cuts could be avoided because of federal funds for Medicaid, increased revenue collections and carry-over money. Estimates put the amount of one-time money used to close the budget gap at approximately $1 billion.
Oklahoma received approximately $321 million from the federal government under HR 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010. The state did not include the federal funds in the FY2011 budget. Officials expected to receive approximately $193 million for Medicaid, although the federal government said the state could get as much as $203 million for Medicaid. Federal stimulus dollars for Medicaid were shared by the Oklahoma Department of Human Services, as well as state mental health and education programs, according to a spokesperson for the Oklahoma Healthcare Authority.
Summary of FY 2011 Balanced Budget
- See also: Archived Oklahoma state budgets
Summary of FY 2011 Balanced Budget
|1. Total Amount Available from Certification Packet||$5,294,829,734|
|2. Adjustments to Certification|
|One Year Moratorium on Select Tax Credits||$45,092,800|
|Repeal Rural Small Business Cap Credit||$37,406,000|
|Equalize Payments for Services||$18,701,866|
|Delay Motor Vehicle Apportionment Change||$16,400,000|
|Decouple from Federal Debt Provision||$11,620,000|
|Repeal Small Business Cap Credit||$11,060,000|
|Adopt Revised Sales Tax Vendor Discount||$9,950,000|
|Vending Machine Decals||$9,000,000|
|Reform Electric Car Credit||$9,000,000|
|Maximum Franchise Tax Remitters||$7,800,000|
|Repeal Motor Fuel Purchaser Discount||$6,100,000|
|Apportion Tobacco Tax Equalization Revenue to General Revenue||$4,927,000|
|Smokeless Tobacco Tax Equalization||$4,227,000|
|Collect Sales Tax on Electronically Delivered Items||$3,460,000|
|Sales and Use Tax Remittances||$2,998,100|
|Adjustment to Certification Packet||$2,700,000|
|Beer Wholesaler Remittance Adjustment||$1,150,000|
|Liquor and Wine Wholesaler Remittance Adjustment||$840,000|
|Multi State Model Statute||$836,000|
|Little Cigar Tax Equalization||$386,000|
|Total Revenue Enhancements||$203,654,766|
|3. Recover Cost of Service/Impact to Infrastructure|
|Oversized Weight Permits||$20,000,000|
|Certified Copies of Driving Records||$10,600,000|
|Total Cost of Service/Impact to Infrastructure||$30,600,000|
|4. Compliance Initiatives|
|Automated Enforcement of Vehicle Insurance||$95,000,000|
|Collect Sales Tax on Internet Sales||$95,000,000|
|Total Compliance Initiatives||$190,000,000|
|5. Bonding Initiatives|
|Roads and Bridges||$195,000,000|
|IT Equipment and Software Purchases||$38,000,000|
|Total Bonding Initiatives'||$233,000,000|
|6. Rainy Day Fund and Other Cash|
|Various State Agencies||$85,411,802|
|Rainy Day Fund (Amount Used for FY-2011 Budget)||$67,594,528|
|Rainy Day Fund (Amount Used for FY-2010 Supplementals and Shortfall)||$485,565,496|
|Excess FY-2010 Gross Production Oil to Education Funds||$42,526,218|
|Cash to Balance FY-2010||$(343,568,092)|
|Funds Added back to Education GR FY-2010||$(80,000,000)|
|Total Cash Transfers||$257,529,952|
|7. ARRA Funds|
|ARRA Medicaid Funds||$460,000,000|
|ARRA Education Funds||$236,468,872|
|Total ARRA Funds||$696,468,872|
|8. CIO Savings Initiative||$(50,000,000)|
|Total Savings Initiatives||$(50,000,000)|
|9. Targeted Cuts|
|Agency Consolidation Savings||$(5,360,000)|
|Savings from Reductions to Pass-Through Appropriations||$(8,681,000)|
|Total Targeted Cuts||$(14,041,000)|
|Total Savings Initiatives and Targeted Cuts||$(64,041,000)|
|Balanced Budget Summary|
|1. Appropriations Made by 2009 Legislature||$6,616,561,467|
|2. Less: FY-2009 Supplementals||$(5,750,000)|
|3. Less: One-Time Expenditures||$(23,525,000)|
|4. ARRA Education Funds Used in FY-2010 Budget||$236,352,128|
|5. ARRA Medicaid Funds Used in FY-2010 Budget||$404,695,751|
|6. FY-2010 Base Budget||$7,228,334,346|
|7. 7.5% General Revenue Reductions Made During FY-2010||$(385,827,878)|
|8. Adjusted FY-2010 Base Budget||$6,842,506,468|
|9. Targeted Cuts Made in FY-2011||$(65,826,045)|
|10. Funds Added back to Education Agencies in FY-2010||$80,000,000|
|11. Available Savings and Cuts||$(64,041,000)|
|12. Adjusted FY-2011 Base Budget||$6,792,639,423|
|13. Hold Debt Service Harmless and OSU-Tulsa||$5,740,532|
|14. Increased Certification to ODOT||$1,926,868|
|15. Increased Certification to CLO||$4,358,350|
|16. FY-2010 Supplementals||$101,418,151|
|17. Executive Budget Expenditures||$6,906,083,324|
|18. Available Revenues||$6,906,083,324|
When state budget cuts jeopardized the jobs of two state soil scientists who aid poultry farmers, the industry donated $43,000 to the state Department of Agriculture, Food and Forestry to keep the jobs around.
Fiscal Year 2010 State Budget
Oklahoma ended FY2010 with the worst revenue shortfall in the state’s history. State Treasurer Scott Meacham said in a July 13, 2010, release, “A drop of $945 million or 17 percent in collections from the prior year illustrates the intensity of the historical downturn Oklahoma’s economy experienced.”
Summary of FY-2010 Balanced Executive Budget
|1. Total Amount Available from Certification Packet||$6,755,890,998|
|2. Revenue Enhancement|
|Add Collection Fee onto Delinquent Accounts sent to Collection Agencies||$1,350,000|
|Adjustment to Certification Packet||$20,000,000|
|Certification Reduction to Authorized Fund||$9,057,649|
|Provide for Third Placement of Delinquent Accounts||$9,000,000|
|Internet Listing Of Delinquent Taxpayers||$1,700,000|
|Increase Vending Machine Decal Fees||$3,000,000|
|Sales Tax Permit Fees||$1,100,000|
|Fee Increases to GR||$5,643,139|
|Compsource Market Equalization||$8,000,000|
|1017 Fund Increase over Estimate for FY-2009||$24,600,000|
|Total Revenue Enhancements||$ 83,450,788|
|Transfer from Cash Flow Reserve Fund||$150,000,000|
|Transfer from Agency Revolving Fund||$56,000,000|
|4. Efficiency Reforms|
|Total Efficiency Reforms||$45,000,000|
|1. Appropriations Made by 2008 Legislature||$7,192,763,490|
|2. Less: FY-2008 Supplementals||$(103,623,566)|
|3. Less: One-Time Expenditures||$(22,457,255)|
|4. Less: One-Time Revenues||$(123,983,090)|
|6. Lieutenant Governor||$(33,091)|
|7. Agriculture Cabinet||$(3,430,160)|
|8. Commerce/Tourism Cabinets||$7,245,965|
|9. Education Cabinet||$39,535,543|
|10. Energy/Environment Cabinet||$(4,413,640)|
|11. Finance and Revenue Cabinet||$(7,232,891)|
|12. Health Cabinet||$110,200,467|
|13. Human Resources and Administration Cabinet||$(2,538,416)|
|14. Human Services Cabinet||$2,536,627|
|15. Military Cabinet||$(162,266)|
|16. Safety and Security Cabinet||$630,630|
|17. Science and Technology||$(5,579)|
|18. Secretary of State Cabinet||$3,062,792|
|19. Transportation Cabinet||$(30,296)|
|20. Veterans' Cabinet||$(21,008)|
|23. FY-2009 Supplementals||$5,400,000|
|Total Recommended Expenditures||$7,090,295,348|
|Balance / (shortage) of funds available||$46,439|
- See also: Oklahoma state budget
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 was approved.
The Oklahoma Policy Institute notes that, "Oklahoma's state and local governments face a long-term fiscal gap in which ongoing revenues would not be enough to pay ongoing spending commitments. The fiscal gap results from rapidly increasing health care costs, an aging population, and commitments for employee and retiree benefits."
The following table provides a history of Oklahoma's expenditures and gross domestic product (GDP).
|Fiscal Year||Expenditures (billions)||GDP (billions)|
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
- See Oklahoma state budget (2008-2009) for more information.
The Oklahoma State Auditor and Inspector audits state and local agencies in the state, publishing its audit reports online. The Oklahoma State Auditor and Inspector was a statewide elected position serving a 4-year term. The office of Examiner and Inspector and the State Auditor was consolidated in a special election on July 22, 1975. Steve Burrage was appointed to the position by Gov. Henry on July 10, 2008 after the June 16, 2008 resignation of Jeff A. McMahan under indictment for accepting improper cash and gifts from an Oklahoma businessman.
The Institute for Truth in Accounting (IFTA) rates Oklahoma “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA did not consider Oklahoma's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care. Oklahoma's CAFRs were annual publications of the Oklahoma Office of State Finance and prepared by the Division of Central Accounting and Reporting. The Oklahoma State Comptroller directs the daily operations of the Division of Central Accounting and Reporting. Brenda Bolander was Oklahoma's State Comptroller and Michael Clingman was Director (appointed by the Governor and approved by the Senate) of the Oklahoma Office of State Finance.
Oklahoma OpenBooks was the name of the publicly available website created by the Oklahoma government. It discloses information about Oklahoma's spending and budget, and was managed by the Office of State Finance. It was one of the few state websites that passes all five criteria of the Sunshine Review's transparency checklist.
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 was updated monthly, whereas the list of vendors was updated annually.
The following table was 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|
- See also: Evaluation of Oklahoma state website
Limitations and Suggestions
The site should post line-item expenditures.
Information about public employee salaries was available on the state website.
Economic stimulus transparency
- Oklahoma received an estimated $1,878,254,929 from the American Recovery and Reinvestment Plan of 2009.
- Oklahoma establised an economic recovery website to show how legislators and government officials in Oklahoma were spending Federal funds.
One Oklahoma project was noted in Senator Coburn and Senator McCain's "Summertime Blues, 100 stimulus projects that give taxpayers the blues" report. One project gave Boynton, Oklahoma nearly $90,000 to replace a quarter-mile stretch of sidewalk that was replaced only five years ago and leads to a ditch.
- State Budget Solutions, Oklahoma
- 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 was available at this link.
- Gov. Brad Henry's State of the State Address 2009
- News On 6, "Lawmakers to Meet and Discuss State Budget Crisis," January 3, 2010
- The Oklahoman "2010 Oklahoma Governor's race: New governor to face still budget challenges" Oct. 3, 2010
- Businessweek "Treasurer: Brighter days ahead for Okla. economy" July 14, 2010
- Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
- H.R. 1586
- The Edmond Sun, "Skimpy revenue dims state budget picture," October 15, 2009
- State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
- Governor's Office, FY 2011 Budget
- USA Spending, State Guesstimated* Government Spending
- FY 2011 Budget
- Businessweek "Okla. leaders optimistic despite budget setbacks" Aug. 25, 2010
- MSNBC.com "Revenue boosts deposit to Okla. reserve fund" Aug. 8, 2011
- NewsOK.com "State savings account down to $2" Jan. 23, 2011
- The Oklahoman "Report says Oklahoma would have $400M less in coming fiscal year " Dec. 7, 2010
- NewsOK.com "Delay in contract award may harm Oklahoma revenues" Aug. 1, 2010
- Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
- "Bailout cushions state Medicaid" Aug. 11, 2010
- FY2011 Budget Book
- NewsOK.com "Poultry industry gives $43K to Oklahoma" Aug. 24, 2010
- The City Wire "Arkansas' budget issues less severe than most states" August 2, 2010
- FY2010 Budget Book
- Oklahoma Open Books, "overview of the process" accessed February 19,2009
- Oklahoma Policy Institute, "Oklahoma Policy Institute's Online Budget Guide," October 2009
- US Government spending, "Oklahoma state and local spending," accessed February 20,2009
- Oklahoma State Auditor and Inspector Web site, accessed November 6, 2009
- NewsOK, "McMahan resigns; impeachment off," June 16, 2008
- audit reports
- Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- Oklahoma Office of State Finance Web site, accessed November 6, 2009
- State of Indiana, “State Credit Ratings-as of June 24, 2009"
- How to Use OpenBooks
- Oklahoma Open Books
- Wall Street Journal, "Stimulus Spending by State," March 12,2009
- Oklahoma Economic Recovery
- "Summertime Blues, 100 stimulus projects that give taxpayers the blues" August 2010