Difference between revisions of "Oklahoma state budget"

From Ballotpedia
Jump to: navigation, search
(Expenditure trends)
m (Text replace - "Non-partisan" to "Nonpartisan")
Line 373: Line 373:
 
| Legislative revenue forecast || {{Yes}}  
 
| Legislative revenue forecast || {{Yes}}  
 
|-
 
|-
| Non-partisan staff || {{No (Sunshine Review)}}  
+
| Nonpartisan staff || {{No (Sunshine Review)}}  
 
|-
 
|-
 
| Constitution or statutory tax/spend limitations || {{Yes (Sunshine Review)}}  
 
| Constitution or statutory tax/spend limitations || {{Yes (Sunshine Review)}}  

Revision as of 14:08, 28 August 2014


Oklahoma state budget

Flag of Oklahoma.png
Budget calendar:  Annual
Current fiscal year:  2014
State credit rating:  AA+ (as of May 2012)
Current governor:  Mary Fallin
Financial figures
GF expenses[1]:  $6.892 billion (estimated for FY 2013)
All funds expenses:  $21.430 (estimated for FY 2013)
Spending % change:  Green Arrow Up Darker.svg2.38%[2]
% from federal funding:  35.54%
State debt:  $44,151,947,000
Per capita state debt:  $11,574
Other state budgets
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming
Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Oklahoma, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Oklahoma's total expenditures decreased by approximately $0.205 billion, from $21.635 billion in 2009 to $21.430 billion in 2013. This represents a 0.95 percent decrease.

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[3][4]

  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.[4]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[4]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[5]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[5]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[5]
  • Federal funds: "Funds received directly from the federal government."[5]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[5]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[5] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[5]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Oklahoma $6,892 $6,516 $7,878 $144 $21,430 $5,565.41
Arkansas $4,746 $6,189 $10,447 $203 $21,585 $7,293.77
Kansas $6,198 $3,599 $4,193 $415 $14,405 $4,977.61
Missouri $8,022 $7,209 $7,712 $0 $22,943 $3,795.89
Texas $43,521 $33,147 $18,318 $1,939 $96,925 $3,664.71
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[6]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Oklahoma can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[5]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other**
Oklahoma 16.5% 23.1% 1.0% 23.9% 2.5% 7.2% 25.8%
Arkansas 16.3% 16.2% 2.1% 21.4% 2.2% 5.8% 36.0%
Kansas 25.8% 16.9% 0.3% 18.6% 2.5% 8.8% 27.1%
Missouri 22.6% 4.7% 0.7% 35.0% 2.6% 10.4% 23.9%
Texas 28.7% 15.8% 0.1% 30.1% 3.5% 8.1% 13.8%
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."[5]

Expenditure trends

From 2008 to 2012, higher education spending rose by nearly 11 percentage points, or 89.3 percent, as a share of the budget. During the same period, spending categorized as "other" fell by 17.60 percentage points, or 40.6 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012.[5][7][8][9][10] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other**
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%
2008 16.0% 12.2% 1.2% 18.6% 2.8% 5.9% 43.4%
Change in % 0.50% 10.90% -0.20% 5.30% -0.30% 1.30% -17.60%
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."[5]

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[5] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[5]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Oklahoma $2,087 $2,114 $452 $15 $936 $5,604 $1,455.37
Arkansas $2,125 $3,144 $431 $39 $475 $6,214 $2,099.77
Kansas $2,525 $2,931 $371 $0 $514 $6,341 $2,191.12
Missouri $1,872 $5,489 $415 $0 $307 $8,083 $1,337.32
Texas $25,992 $0 $0 $0 $21,289 $47,281 $1,787.68
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[6]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[5][7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Oklahoma ($ in millions)[5][7]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $2,087 $2,114 $452 $15 $936 $5,604 $1,455.37
2012 $2,004 $2,044 $343 $15 $1,158 $5,565 $1,458.42
2011 $1,819 $1,832 $274 $15 $1,198 $5,137 $1,357.01
2010 $1,643 $1,709 $168 $16 $1,139 $4,675 $1,243.59
2009 $1,805 $1,960 $266 $14 $1,500 $5,545 $1,503.91
Change in % 15.62% 7.86% 69.92% 7.14% -37.60% 1.06% -3.23%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[6][11]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: HB 2301

Fiscal year 2014

Oklahoma state budget -- 2014
Oklahoma State Legislature
Text:HB 2301
Legislative history
Introduced:May 1, 2013
House:May 9, 2013
Vote (lower house):59-40
Senate:May 14, 2013
Vote (upper house):28-20
Governor:Mary Fallin
Signed:May 20, 2013

Governor Mary Fallin signed the state's fiscal year 2014 budget into law on May 20, 2013. To access the full text of the budget bill, please click here.

Fiscal year 2013

See also: Oklahoma state budget (2012-2013)

Fiscal year 2012

See also: Oklahoma state budget (2011-2012)

Fiscal year 2011

See also: Oklahoma state budget (2010-2011)

Fiscal year 2010

See also: Oklahoma state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[5][8]

Historical state budget spending in Oklahoma ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $6,493 31% $7,574 36.2% $6,718 32.1% $146 0.7% $20,931
2010-2011 $6,152 29.1% $7,184 33.9% $7,592 35.9% $237 1.1% $21,165
2009-2010 $4,755 22.8% $6,204 29.7% $9,356 44.8% $559 2.7% $20,874
Averages: $5,800 28% $6,987.33 33% $7,888.67 38% $314 1% $20,990
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Oklahoma had a state debt of over $44 billion. Its state debt per capita was $11,574. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[12][13]

Total state debt in Oklahoma[14]
Type Totals U.S. rank
Total state debt $44,151,947,000 32
Per capita debt $11,574 40
State and other fund expenditures $14,067,000,000 37

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 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[15]

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).[16][17][18][19][20][21][22]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.[23]

The table below lists the Standard and Poor's credit rating for Oklahoma from 2001 to 2012 (grades from surrounding states are provided for additional context).[23]

S&P credit ratings from 2001 to 2012
Oklahoma Arkansas Kansas Missouri Texas
2012 AA+ AA AA+ AAA AA+
2011 AA+ AA AA+ AAA AA+
2010 AA+ AA AA+ AAA AA+
2009 AA+ AA AA+ AAA AA+
2008 AA+ AA AA+ AAA AA
2007 AA AA AA+ AAA AA
2006 AA AA AA+ AAA AA
2005 AA AA AA+ AAA AA
2004 AA AA AA+ AAA AA
2003 AA AA AA+ AAA AA
2002 AA AA AA+ AAA AA
2001 AA AA AA+ AAA AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[24]

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.[24]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Oklahoma 35.54% $7,363,043,000 15
Arkansas 34.47% $5,900,988,000 21
Kansas 26.95% $4,061,217,000 41
Missouri 39.42% $10,440,927,000 5
Texas 34.51% $37,310,756,000 20

Stimulus

Oklahoma received $2.80 billion of federal stimulus funding between February 2009 and June 2013.[25]

Budget transparency

Transparency evaluation
Oklahoma OpenBooks
Searchability Y
600px-Yes check.png
Grants Y
600px-Yes check.png
Contracts Y
600px-Yes check.png
Line item expenditures N
600px-Red x.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries Y
600px-Yes check.png
Last evaluation date unknown.
See also: Evaluation of Oklahoma state website and Constitutional provisions regarding reading of bills

Oklahoma OpenBooks is the name of the spending transparency website created by the Oklahoma government. It discloses information about Oklahoma's spending and budget, and is managed by the Office of State Finance.

The table to the right is helpful in evaluating the level of transparency provided by a state spending database.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Oklahoma, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[26][27]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Oklahoma tied for eighth in the nation with 11 other states, earning six out of eight possible points.[27]

Oklahoma - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle Y
600px-Yes check.png
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Nonpartisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations Y
600px-Yes check.png
TOTAL 6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[27]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

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.[28] 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.[28]

Accounting principles

See also: Oklahoma government accounting principles

The Oklahoma State Auditor and Inspector audits state and local agencies. Audit reports are published online. The Oklahoma State Auditor and Inspector is a statewide elected position serving a four-year term.[29]

Contact information

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

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  4. 4.0 4.1 4.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  5. 5.00 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10 5.11 5.12 5.13 5.14 5.15 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  6. 6.0 6.1 6.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  7. 7.0 7.1 7.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  8. 8.0 8.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  9. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  10. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  11. United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  12. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  13. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  14. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  15. Pew Center on the States, "Widening Gap Update: Oklahoma," June 18, 2012
  16. Oklahoma Public Employees Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  17. Oklahoma Teachers Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  18. Uniform Retirement System for Justices and Judges, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  19. Oklahoma Firefighters Pension and Retirement System, "2012 Actuarial Valuation Report," accessed November 19, 2013
  20. Oklahoma Police Pension and Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  21. Oklahoma Law Enforcement Retirement System, "2012 Financial Statements," accessed November 19, 2013
  22. Oklahoma Department of Wildlife Conservation, "2012 Financial Statements," accessed November 19, 2013
  23. 23.0 23.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  24. 24.0 24.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  25. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  26. Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
  27. 27.0 27.1 27.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
  28. 28.0 28.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  29. Oklahoma State Auditor and Inspector, "Audit Reports," accessed April 30, 2014