The Oklahoma Board of Equalization has certified the Legislature and Gov. Kevin Stitt will have a discretionary budge of $8.3 billion for the fiscal year that starts July 1. That was a $9.3 million (0.1 percent) increase from Fiscal Year 2020.
“Oklahoma’s state revenues are beginning to plateau after losing more than 60% of oil and gas drilling activity since this time last year,” said Stitt. “The fiscal discipline displayed in the FY’20 budget, by setting aside an extra $200 million to achieve $1 billion in savings, is already proving its value in protecting core public services and strengthening the state’s credit rating.
“Despite these changes in revenue collections, the State of Oklahoma remains on strong footing. It is critical we protect it by demonstrating fiscal restraint and efficiency in the FY’21 budget process and by continuing to advance policies that encourage job creation and economic diversity.”
During the meeting, Stitt gave attention to a one-time cash source of $310 million as part of the spending authority estimate. Without this one time source, the revenue projection for FY’21 would be 3.7 percent less than FY’20.
The Board of Equalization will return in February to certify a final estimate on how much lawmakers will have to build a budget during the upcoming legislative session.
“Any growth in a budget is good, but we have to be cautious in our outlook and continue to monitor economic conditions as we prepare the budget. And before the first drop of ink is spilled in writing the state budget, we already have nearly $200 million in obligations for things like the ad valorem reimbursements to schools, the bond debt on the Capitol, and increased costs for teacher health care benefits. The Senate appropriators have already held budget hearings, and we’ll keep doing our work and crunching the numbers to ensure we maximize every tax dollar as we write next year’s budget,” said Senator Roger Thompson, R-Okemah and Senate Appropriations Committee chair.