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The historical Oklahoma budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding Oklahoma's budget and finances, click here.

As published 2016

Oklahoma budget and finances

General information
Budget calendar: Annual
Fiscal year: 2017
State credit rating: AA+ (as of 2014)
Current governor: Mary Fallin
Financial figures
Total spending (state and federal funds): $22.1 billion (estimated for 2015)
Per capita spending: $5,637.46 (estimated for 2015)
Total state tax collections: $9.1 billion (2014)
Per capita tax collections: $2,346.45 (2014)
State debt: $44.2 billion (as of 2014)
Per capita state debt: $11,574 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Oklahoma

In Oklahoma, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in Oklahoma decreased by approximately $64 million—from $22.1 billion in fiscal year 2014 to an estimated $22.0 billion in 2015. This represents a 0.3-percent decrease.^[1]^[2]^[3]

In Oklahoma in fiscal year 2014, 43.8 percent of total tax revenues came from sales and gross receipts.

Education accounted for 38.9 percent of state expenditures in fiscal year 2015, while 23.2 percent went to Medicaid.

The Oklahoma state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
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."^[4]
Federal funds are "funds received directly from the federal government."^[4]
Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.^[5]

Compared to neighboring states, Oklahoma had the third highest state tax collections per capita, at $2,346.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
Oklahoma	N/A	$3,989,358	$1,057,768	$3,359,418	$696,758	$9,103,302	3,879,610	$2,346
Arkansas	$1,077,377	$4,324,157	$368,622	$3,000,653	$165,972	$8,936,781	2,966,835	$3,012
Kansas	$81,267	$3,890,900	$395,454	$2,841,841	$125,019	$7,334,481	2,902,507	$2,527
Missouri	$29,725	$4,915,210	$564,474	$5,719,700	$11,548	$11,240,657	6,063,827	$1,854
Texas	N/A	$45,746,598	$3,499,902	$0	$6,014,350	$55,260,850	26,979,078	$2,048
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Oklahoma tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 43.8 percent of Oklahoma's total state tax collections came from sales taxes and gross receipts.^[5]

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Oklahoma	N/A	43.8%	11.6%	36.9%	7.7%
Arkansas	12.1%	48.4%	4.1%	33.6%	1.9%
Kansas	1.1%	53.0%	5.4%	38.7%	1.7%
Missouri	0.3%	43.7%	5.0%	50.9%	0.1%
Texas	N/A	82.8%	6.3%	0.0%	10.9%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

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, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.^[6]

The table below notes what share of Oklahoma’s general revenues came from the federal government in 2013. That year, Oklahoma received approximately $7 billion in federal aid, 33.8 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $1,825 in federal aid per capita. Figures from surrounding states are provided for additional context.^[7]

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
Oklahoma	$7,028,733	33.8%	17	3,850,568	$1,825
Arkansas	$5,689,390	32.9%	22	2,959,373	$1,922
Kansas	$3,788,962	24.9%	44	2,893,957	$1,309
Missouri	$10,188,272	38.2%	5	6,044,171	$1,686
Texas	$36,844,736	32.6%	24	26,448,193	$1,393
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (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.^[2]

Oklahoma's total estimated government spending in fiscal year 2015 was $22.05 billion, which was the second lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Oklahoma	$14,782	$7,268	$22,050	3,911,338	$5,637.46
Arkansas	$16,502	$7,131	$23,633	2,978,204	$7,935.32
Kansas	$11,161	$3,882	$15,043	2,911,641	$5,166.50
Missouri	$16,626	$7,495	$24,121	6,083,672	$3,964.88
Texas	$69,152	$43,430	$112,582	27,469,114	$4,098.49
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 Bureau estimates.^[8] Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in Oklahoma can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 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.^[2]

In fiscal year 2014, higher education accounted for 23.3 percent of Oklahoma's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
Oklahoma	15.6%	23.3%	0.9%	23.2%	2.6%	6.0%	28.4%
Arkansas	15.1%	15.6%	2.3%	22.1%	2.1%	6.1%	36.8%
Kansas	25.9%	17.6%	0.2%	22.4%	2.6%	11.4%	19.9%
Missouri	22.8%	4.8%	0.8%	35.8%	2.8%	8.5%	24.5%
Texas	25.0%	14.0%	0.1%	30.1%	3.1%	9.0%	18.7%
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."^[2]

Spending trends

Between 2010 and 2014, the share of the Oklahoma state budget spent on Medicaid increased from 17.1 percent in 2010 to 23.2 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).^[2]^[9]^[10]

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	15.6%	23.3%	0.9%	23.2%	2.6%	6.0%	28.4%
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%
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."^[2]

Fiscal year budgets

See also: Historical Oklahoma budget and finance information

Fiscal year 2016

See budget bill: HB 2242

Governor Mary Fallin announced her fiscal year 2016 budget proposal on February 2, 2015. Total general fund spending was to equal about $7.2 billion under the governor's proposal, with the largest portions going towards education and workforce development (51 percent), health and human services (31 percent), and safety and security (10 percent). The Oklahoma Board of Equalization projected the state would see a 4.1 percent decline in revenue in fiscal year 2016, meaning a possible reduction in appropriations for 55 different state agencies. However, the governor did propose spending increases in certain priority areas, such as education and healthcare.^[11]

Governor Fallin signed the state's official budget on May 22, 2015. This budget set total spending for the state at $24.01 billion, with general fund spending set at $7.14 billion. Under this budget, 49 state agencies were subject to spending cuts, while eight saw increases. Funding levels were maintained for education and transportation programs.^[11]

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. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.^[12]^[13]

Total 2012 state debt
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

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees.

If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Oklahoma ranked 15th best in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Oklahoma’s Comprehensive Annual Financial Report from June 30, 2014, and actuarial reports for the state’s retirement plans, TIA concluded that $6.9 billion in promised retirement benefits were unfunded, but only $212.3 million of these liabilities were reported on Oklahoma’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $2.4 billion, or a taxpayer burden of $2,200.^[14]

Public pensions

See also: Oklahoma public pensions and Oklahoma public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Oklahoma's state-administered pension plans increased from 60.6 percent to 65.3 percent. The state paid 104 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $10.5 billion. This amounted to $2,850 in unfunded liabilities per capita.^[15]^[16]

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.^[17]^[18]

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.^[19]

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

Economic indicators

See also: Economic indicators by state

Oklahoma's GDP increased by 2.8 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[20]^[21]^[22]

In 2013, most Oklahoma residents earned incomes above 200 percent of the federal poverty level, 62 percent. The state had a median annual household income of $47,282. Oklahoma's unemployment rate in September 2014 was 4.7 percent, lowest among its neighboring states.^[23]^[24]^[25]^[26]

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL^* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)^†
State	Under 100%	100-199%	200-399%	400%+	Median annual income (2011-2013)	Sept. 2013	Sept. 2014	Total GSP (2013)^†
Oklahoma	14%	24%	31%	31%	$47,282	5.6%	4.7%	$182,086
Arkansas	17%	26%	33%	24%	$40,877	7.7%	6.2%	$124,218
Kansas	13%	18%	34%	34%	$49,804	5.3%	4.8%	$144,062
Missouri	14%	17%	32%	38%	$49,290	6.4%	6.3%	$276,345
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
^* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." ^† Median annual household income, 2011-2013. ^‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Oklahoma budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office.

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:^[27]

Budget instructions are sent to state agencies in August.
State agencies submit their budget requests to the governor by October 1.
Agency hearings are held from November through January.
The governor submits his or her proposed budget to the state legislature in February.
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.^[27]^[28]

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature is required to pass a balanced budget.^[27]

Agencies, offices, and committees

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

Studies and reports

March 2016 revenue report

According to a March 2016 report on Oklahoma’s state finances, the state’s general revenue fund was 18 percent below its estimate for February 2016, which was the greatest underestimation of the state’s funds for the fiscal year up to that point. The general fund supplies funding for all of the state’s major operations. As a result of this shortfall, state officials implemented a 7 percent cut across the board to all state agencies. The Oklahoma Senate passed legislation that would use $79 million from the state’s rainy day fund to offset these cuts for public education and corrections. Overall, total general fund collections for the state have been nearly 9 percent lower than estimations for the first eight months of fiscal year 2016. Oklahoma Senate President Pro Tempore Brian Bingman (R) announced the plan to appropriate the state’s rainy day funds. He praised the state’s senate for quickly addressing the shortfall with this legislation, and also stated that the legislature had previously avoided making deep education cuts. In regards to future efforts to reduce similar budget shortfalls, Oklahoma’s state finance secretary Preston Doerflinger expressed a desire for the state to add “stable, recurring revenues to the next budget,” which was scheduled to begin on July 1, 2017.^[29]^[30]^[31]

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2015

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 March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending.^[32] According to the report, Oklahoma received a grade of B+ and a numerical score of 88, indicating that Oklahoma was "Advancing" in terms of transparency regarding state spending.^[32]

As published 2015

State finances in the U.S.

State tax policy in the U.S.
Pension Policy

State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains:

Spending (fiscal years 2013 and 2014)
Revenues (fiscal year 2013)
State debt (fiscal year 2012)
Federal aid to the state budget (fiscal year 2012)
Budget process

Between fiscal years 2013 and 2014, total government 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 represented 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+.^[33]^[34]^[35]

HIGHLIGHTS

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