State revenues have been setting records every month for a year yet the State Board of Equalization has authorized a budget surplus of $612 million.

Gov. Kevin Stitt wants to move slowly on allocating a surplus. Republican leaders urge caution because of the up-and-down nature of energy prices. And Democrats want a tax increase to raise an additional $800 million.

“Our financial picture is improving in Oklahoma thanks to a recovering economy and tough choices made by the Legislature,” said Senate President Pro Tem Greg Treat, R-Oklahoma City. “I’m optimistic about 2019 but want expectations to be realistic. Even though the preliminary estimate shows growing revenue, there are many existing obligations and priorities heading into next year. Senate Republicans will keep our commitment to teachers and want to build on the huge investment made in education last year. There are other critical needs the Legislature will prioritize and balance as we work on the budget.”

Senate Appropriations Chairman Roger Thompson, R-Okemah, said the new revenues will be helpful but won’t cover the growing list of budget requests from state agencies.

“Before the first budget bill is even considered, the state has obligations like bond indebtedness, the ad valorem reimbursement fund, and replacing lost federal dollars that went to our state’s teaching hospitals,” Thompson said. “Agencies continue to hand in their budget requests for next year. Not every request is in but the total amount of budget increases being sought by agencies already exceeds the total amount of estimated new revenue.”

Sen. Nathan Dahm, R-Broken Arrow, said some of the surplus should go to the teacher retirement fund to insure that fund’s viability.

The price of oil has been volatile.

“Energy prices have been hovering under the baseline amount that was used to build the full-year estimate, and it is certainly possible that the Board of Equalization will lower the surplus amount at their meeting in February to officially certify revenue,” said  House Speaker Charles McCall, R-Atoka. “Still, we should view this preliminary estimate as very positive news and remain hopeful that this trend continues.”

House Minority Leader Emily Virgin, D-Norman, credited last year’s tax increase – the largest in state history – for the surplus.

“It is important to note, though, that this is only the first step — we are still over $800 million below pre-recession funding levels when adjusted for inflation,” Virgin said. “It seems some of our new colleagues on the right may agree with us on this issue, and we look forward to working with them in the upcoming session to properly fund state government.”

The Board of Equalization is comprised of the governor, lieutenant governor, state treasurer, attorney general, state school superintendent, the state auditor and the secretary of agriculture. The board meets to approve the certified amount of revenue available to spend in the state budget.

The 2019 legislative session begins February 4.