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Oklahoma state budget and finances

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Oklahoma budget and finances
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General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AA+ (as of 2014)
Current governor:
Mary Fallin
Financial figures
Total spending (state and federal funds):
$22.2 billion (estimated for 2014)
Per capita spending:
$5,710.60 (estimated for 2014)
Total state tax collections:
$11.1 billion (2013)
Per capita tax collections:
$1,842.99 (2013)
State debt:
$44.2 billion (as of 2014)
Per capita state debt:
$11,574 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Oklahoma
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.

Between fiscal years 2013 and 2014, total spending in Oklahoma increased by approximately $800 million, from $21.3 billion in fiscal year 2013 to an estimated $22.1 billion in 2014. This represents a 4 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Oklahoma a credit rating of AA+.[1][2][3]

In 2013, Oklahoma collected $8.9 billion in state taxes. This amounted to $2,307.87 per capita.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Oklahoma in fiscal year 2014, total estimated spending equaled $22.1 billion. Estimated per capita spending totaled $5,711.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Oklahoma $14,721 $7,425 $22,146 3,878,051 $5,710.60
Arkansas $16,077 $6,511 $22,588 2,966,369 $7,614.70
Kansas $11,158 $3,511 $14,669 2,904,021 $5,051.27
Missouri $15,970 $7,208 $23,178 6,063,589 $3,822.49
Texas $65,373 $34,676 $100,049 26,956,958 $3,711.44
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013.
Source: National Association of State Budget Officers

State spending in Oklahoma can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In Oklahoma in fiscal year 2013, higher education accounted for 22.7 percent of total government spending, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Oklahoma 16.2% 22.7% 0.9% 23% 2.6% 7.1% 27.5%
Arkansas 15.6% 15.4% 2% 21% 2.1% 5.8% 38%
Kansas 26.8% 18.2% 0.2% 18.5% 2.7% 7.2% 26.4%
Missouri 22.8% 4.8% 0.7% 35.8% 2.7% 9.4% 23.8%
Texas 27.4% 15.7% 0.1% 31.7% 3.6% 8.9% 12.6%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 to 2013, the share of the Oklahoma state budget spent on higher education spending increased from 16.5 percent to 22.7 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 16.2% 22.7% 0.9% 23% 2.6% 7.1% 27.5%
2012 16.5% 23.1% 1.0% 23.9% 2.5% 7.2% 25.8%
2011 14.6% 16.2% 1.0% 21.2% 2.3% 7.6% 37.2%
2010 13.5% 19.5% 1.0% 17.1% 2.4% 7.2% 39.3%
2009 15.4% 16.5% 0.9% 18.5% 2.6% 6.2% 39.9%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In Oklahoma in 2013, total state tax collections equaled $8.9 billion. Per capita tax collections totaled $2,307.87.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Oklahoma N/A $3,848,451 $1,010,430 $2,916,615 $585,146 $531,861 $8,892,503 3,853,118 $2,307.87
Arkansas $1,022,066 $4,019,203 $356,920 $2,649,577 $402,874 $135,767 $8,586,407 2,958,765 $2,902.02
Kansas $79,475 $3,742,916 $382,944 $2,956,588 $384,553 $73,806 $7,620,282 2,895,801 $2,631.49
Missouri $29,896 $4,791,043 $550,824 $5,380,651 $377,258 $11,073 $11,140,745 6,044,917 $1,842.99
Texas N/A $39,277,583 $7,788,864 N/A N/A $4,647,848 $51,714,295 26,505,637 $1,951.07
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Oklahoma tax collections by source in 2013.
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. Sales taxes and gross receipts were the largest source of tax revenue in Oklahoma for fiscal year 2013, at 43.28 percent. Individual income taxes were the second largest source of tax revenue in Oklahoma in 2013, at 32.8 percent.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Oklahoma N/A 43.28% 11.36% 32.80% 6.58% 5.98%
Arkansas 11.90% 46.81% 4.16% 30.86% 4.69% 1.58%
Kansas 1.04% 49.12% 5.03% 38.80% 5.05% 0.97%
Missouri 0.27% 43.00% 4.94% 48.30% 3.39% 0.10%
Texas N/A 75.95% 15.06% N/A N/A 8.99%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Oklahoma budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: SB 2127

Governor Mary Fallin announced her fiscal year 2015 budget proposal on February 3, 2014. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $7.0 billion.[10]

On June 3, 2014, Fallin signed into law the fiscal year 2015 budget. The enacted budget totaled $7.12 billion, a 1.4 percent decrease over fiscal year 2014. The budget included an additional $80 million in K-12 education spending, as well as an additional $44.6 million for the Department of Human Services.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Oklahoma had a state debt of approximately $44.2 billion. Its state debt per capita was $11,574. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Oklahoma $44,151,947,000 $11,574 40
Arkansas $37,704,936,000 $12,785 33
Kansas $39,025,693,000 $13,523 28
Missouri $76,489,010,000 $12,702 34
Texas $340,944,239,000 $13,083 31
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Oklahoma public pensions and Oklahoma public employee salaries

A 2012 report from the Pew Center on the States noted that Oklahoma's pension system was funded at 56 percent at the close of fiscal year 2010, well below the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[12]

However, taken together, the funding ratio for the state's pension systems increased from 62.04 percent in fiscal year 2007 to 64.92 percent in fiscal year 2012, an increase of 2.88 percentage points, or 4.6 percent. Unfunded liabilities remained virtually unchanged (approximately $11.5 billion in fiscal year 2007 and $11.6 billion in fiscal year 2012) as the value of assets gradually improved (increasing from $18.8 billion in fiscal year 2007 to roughly $21.5 billion in fiscal year 2012).[13][14][15][16][17][18][19]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[20][21]

The table below lists the Standard and Poor's credit ratings for Oklahoma and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[22]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Oklahoma AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA AA AA AA
Arkansas AA AA AA AA AA AA AA AA AA AA AA
Kansas AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+
Missouri AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
Texas AAA AAA AA+ AA+ AA+ AA+ AA AA AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[23]

The table below notes what share of Oklahoma’s general revenues came from the federal government in 2012. That year, Oklahoma received approximately $7.4 billion in federal aid, 35.57 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[23]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Oklahoma $7,363,043 35.57% 15
Arkansas $5,900,988 34.46% 21
Kansas $4,061,217 26.95% 41
Missouri $10,440,927 39.42% 5
Texas $37,310,756 34.51% 20
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Oklahoma received $2.80 billion of federal stimulus funding between February 2009 and June 2013.[24]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[25][26]

  1. Budget instruction guidelines are sent to state agencies in August of the year preceding the start of the new fiscal year.
  2. State agencies submit their budget requests to the governor in October.
  3. Agency hearings are held from October through December. Public hearings are held from December through May.
  4. The governor submits his or her proposed budget to the state legislature in February.
  5. The legislature typically adopts a budget in May. A simple majority is required to pass a budget. The new fiscal year begins July 1.

Oklahoma is one of 44 states in which the governor has line item veto authority.[26]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[26]

Agencies, offices and committees

The following standing committees in the Oklahoma State Legislature deal with budget and finance matters:

  1. Appropriations and Budget Committee, Oklahoma House of Representatives
  2. Appropriations Committee, Oklahoma State Senate
  3. Finance Committee, Oklahoma State Senate
  4. Joint Appropriations and Budget Committee, Oklahoma State Legislature

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[27] According to the report, Oklahoma received a grade of B- and a numerical score of 82, indicating that Oklahoma was an "advancing" state in terms of transparency regarding state spending.[27]

Contact information

Oklahoma Office of State Finance
2300 N. Lincoln Boulevard, Room 122
Oklahoma City, Oklahoma 73105
Telephone: 405-521-2141

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: State and local government budgets, spending and finance on the ballot and List of Oklahoma ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Oklahoma.

  1. Oklahoma Balanced Budget, State Question 298 (March 1941)
  2. Oklahoma Balanced Budget, State Question 587 (April 1985)
  3. Oklahoma Capital Improvements for Higher Education, State Question 393 (July 1960)
  4. Oklahoma Common School Funds, State Question 370 (July 1956)
  5. Oklahoma Constructing and Repairing State Buildings, State Question 348 (September 1949)
  6. Oklahoma Contracts for College and University Presidents, State Question 686 (2000)
  7. Oklahoma Depositors' Guaranty Fund, State Question 125 (October 1923)
  8. Oklahoma Distribution of Funds to Schools, State Question 635 (June 1990)
  9. Oklahoma Estimate of Revenues, State Question 453 (April 1968)
  10. Oklahoma Estimate of Revenues, State Question 461 (August 1968)
  11. Oklahoma Estimates of Revenue, State Question 506 (July 1975)
  12. Oklahoma General Revenue Fund, State Question 313 (July 1944)
  13. Oklahoma Highway Revenue Notes, State Question 427 (April 1965)
  14. Oklahoma Industrial Finance Authority, State Question 391 (July 1960)
  15. Oklahoma Industrial Finance Authority, State Question 600 (August 1986)
  16. Oklahoma Interest Rates, State Question 469 (1970)
  17. Oklahoma Investment of Permanent School Funds, State Question 362 (July 1954)
  18. Oklahoma Investment of School Funds, State Question 442 (August 1968)
  19. Oklahoma Investment of School Funds, State Question 599 (August 1986)
  20. Oklahoma Legislative Expenditures, State Question 754 (2010)
  21. Oklahoma Medical Center, State Question 411 (December 1963)
  22. Oklahoma Municipal Indebtedness, State Question 85 (August 1916)
  23. Oklahoma Preservation Trust Fund, State Question 559 (August 1982)
  24. Oklahoma Public Welfare, State Question 220 (December 1935)
  25. Oklahoma Rainy Day Fund, State Question 708 (2004)
  26. Oklahoma Rainy Day Fund, State Question 725 (2006)
  27. Oklahoma Rainy Day Fund, State Question 757 (2010)
  28. Oklahoma School District Indebtedness, State Question 548 (1980)
  29. Oklahoma School District Indebtedness, State Question 572 (1984)
  30. Oklahoma School Districts, State Question 423 (1964)
  31. Oklahoma School Equalization Fund, State Question 578 (August 1984)
  32. Oklahoma School Funds Investment, State Question 490 (August 1972)
  33. Oklahoma School Lands, State Question 684 (2000)
  34. Oklahoma School and Educational Funds, State Question 481 (December 1971)
  35. Oklahoma State Aid to School Districts, State Question 422 (1964)
  36. Oklahoma State Funds for Common Schools, State Question 744 (2010)
  37. Oklahoma Stop Overspending Initiative (2006)
  38. Oklahoma Tobacco Settlement Endowment Trust Fund, State Question 692 (2000)
  39. Oklahoma Tobacco Settlement Endowment Trust Fund Expenditures, State Question 701 (2002)
  40. Oklahoma Use of Educational Funds, State Question 665 (1994)
  41. Oklahoma Use of School Building Funds, State Question 704 (2002)
  42. Oklahoma Veterans Administration, State Question 369 (July 1956)
  43. Oklahoma Water Resource Development, State Question 558 (1982)
  44. Oklahoma Water Resources and Sewage Treatment, State Question 581 (August 1984)
  45. Oklahoma Water Supply and Water Facilities, State Question 373 (July 1956)

Recent news

This section displays the most recent stories in a Google news search for the terms "Oklahoma budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Oklahoma state budget and finances - Google News Feed

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See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update: Oklahoma," June 18, 2012
  13. Oklahoma Public Employees Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  14. Oklahoma Teachers Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  15. Uniform Retirement System for Justices and Judges, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  16. Oklahoma Firefighters Pension and Retirement System, "2012 Actuarial Valuation Report," accessed November 19, 2013
  17. Oklahoma Police Pension and Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  18. Oklahoma Law Enforcement Retirement System, "2012 Financial Statements," accessed November 19, 2013
  19. Oklahoma Department of Wildlife Conservation, "2012 Financial Statements," accessed November 19, 2013
  20. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  21. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  22. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  23. 23.0 23.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  24. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  25. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  26. 26.0 26.1 26.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  27. 27.0 27.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014