2011 Oklahoma state budget

2011 (2011) Budget of the Oklahoma state government
‹ 2010 ·  · 2012 ›
Submitted by Brad Henry
Submitted to 52nd Legislature
Total revenue $6.73 billion (estimated)
Total expenditures $6.9 billion (request)
$6.7 billion (enacted)
Website Oklahoma Office of State Finance
Main article: Oklahoma state budget

The Oklahoma State Budget for Fiscal Year 2011, is a spending request by Governor Brad Henry to fund government operations for July 1, 2010–June 30, 2011. Governor Henry and legislative leader approved the budget in May 2010. This was Governor Henry's eight and final budget submitted as Governor.

Figures shown in the spending request do not reflect the actual appropriations for Fiscal Year 2011, which must be authorized by the Legislature.

Contents

Overview

Oklahoma's $6.7 billion state budget for FY2011 was approved in May 2010[1] and is $400 million less than the previous budget.[2] State revenues declined almost 17% in FY2010, down approximately $945 million from FY2009.[3] As a result, lawmakers cut state agency budgets 7.5% midway through FY2010. Then lawmakers relied on a combination of fee hikes, deferred tax credits and further cuts to state agencies (3% cut in general) to help balance the FY2011 budget.[3] That was not, however, enough and lawmakers additionally relied on $500 million in federal stimulus money and $277 million in funds from the Constitutional Reserve Fund to balance the FY2011 state budget.[3]

Oklahoma has nearly $600 million remaining in its Constitutional Reserve Fund, but has limitations in using it to fill the budget shortfall. Three-eighths of the fund may be used to fill the 2010 mid-year gap, three-eighths may be used for the next fiscal year, and the remaining quarter may be used in a declared emergency by the Governor with a three-quarter vote of the Legislature.[4]

Revenue Increases

The Governor's budget identified the following measures to increase State revenue:

Revenue Raising Measures

  • $49.3 million - increase fees for services, licenses, and permits for various State agencies
  • $45 million - one year moratorium on select income tax credits
  • $37.5 million - repeal income tax credit for capital investment in rural businesses
  • $20 million - double fee to receive an oversized load permit for commercial vehicles
  • $16.4 million - maintain penalty fine from late registration of motor vehicle as General Revenue
  • $11.6 million - consider federal tax debt forgiveness as taxable income
  • $11.3 million - repeal income tax credit for capital investment in rural business
  • $10.6 million - double fee for copy of certified driving records
  • $9.95 million - lower discount for electronic sales tax filling from 2.25% to 1%
  • $9 million - revise tax credit for the conversion of motor vehicle from traditional fuels to electric cars
  • $9 million - increase vending machine decal permit from $50 to $150
  • $7.8 million - change due date for delinquent franchise tax payments
  • $6.1 million - repeal discount for the timley remittance of motor fuel taxes
  • $4.9 million - direct tax on tobacco to General Fund
  • $4.2 million - revise tax on tobacco products from value-based to weight-based
  • $3.5 million - expand sales tax to electronically delievered items
  • $3 million - change sales tax remittance schedule
  • $2 million - change beer, wine, and liquor wholesaler tax remittance schedule
  • $0.8 million - Oklahoma Tax Commission to adopt Multistate Tax Commission model statutes
  • $0.4 million - tax little cigars at same rate as cigarettes

Tax Compliance Measures

  • $95 million - automated enforcement of vehicle insurance compliance
  • $95 million - collect tax sales on remote businesses

Bonding Measurers

Cash Transfer Measurers

  • $85 million - redirect excess agency fees to General Revenue
  • $554 million - Constitutional Reserve Fund to General Revenue
  • $42.5 million - excess Gross Production Tax revenue to education funds
  • $696 million - American Recovery and Reinvestment Act

Cuts and Saving Measurers

Key Funding Issues

The Governor's budget identifies the following key funding issues:

Revenue

Budgeted Revenue

Estimated tax revenue for fiscal year 2011 is $5.3 billion, an estimated decrease of 22% from FY2010 amounts of $6.8 billion:

All revenue of the $6.8 billion budget revenue breaks down as follows:

Collected Revenue

The following figures represent actual tax revenue collected by month for Fiscal Year 2011 and deposited within the State's General Fund:

FY11 Month Amount (in millions) % Change from FY10 Collections  % Change from FY11 Budget Source
July $370.1 10% 12% [5]
August $350.8 5% (0.4)% [6]
September $459.7 6% 4% [7]
October $427.7 7% 4% [8]
November $345.9 9% (3)% [9]
December $454.5 13% 4% [10]
January $490.3 19% 4% [11]
February $247.1 12% 4% [12]
March $438.5 9% 11% [13]
April $576.8 13% (3%) [14]
May $414.7 10% 7% [15]
June
TOTAL TBD TBD TBD

Spending

Requested

The projected gross state product is listed at $155 billion[16]. The fiscal year 2011 spending represents 4.3% of GSP.

The Governor's budget for FY2011 totals $6.9 billion in total spending requests. Percentages in parentheses indicate percentage change compared to 2010. The budget request is broken down by the following expenditures:

  • Appropriations by Cabinet Department: $6.8 billion (-3%)
    • $3.7 billion - Education (+2%)
    • $1.2 billion - Health (-2%)
    • $698 million - Human Services (-1%)
    • $653 million - Safety and Security (-1%)
    • $209 million - Transportation (+0%)
    • $79.9 million - Finance and Revenue (-2%)
    • $75.5 million - Judiciary (-2%)
    • $69 million - Commerce and Tourism (-18%)
    • $38.5 million - Agriculture (-3%)
    • $37.1 million - Veterans Affairs (-1%)
    • $33.4 million - Legislature (-3%)
    • $23.7 million - Human Resources and Administration (-2%)
    • $19.8 million - Science and Technology (-3%)
    • $14.2 million - Environment (-3%)
    • $11.3 million - Energy (-3%)
    • $11 million - Military (-3%)
    • $6.8 million - Secretary of State (-4%)
    • $2.8 million - Governor and Lieutenant Governor (-4%)

Appropriations

The Oklahoma Legislature approved total approrpations for fiscal year 2011 of $6.7 billion. Percentages in parentheses indicate percentage change compared to the Governor's budget. The final appropriations are broken down by the following expenditures:[17]

References

  1. ^ Oklahoma legislators, governor reach $6.7 billion budget deal, by Michael McNutt, Daily Oklahoman, May 21, 2010
  2. ^ The Oklahoman "2010 Oklahoma Governor's race: New governor to face still budget challenges" Oct. 3, 2010
  3. ^ a b c Businessweek "Treasurer: Brighter days ahead for Okla. economy" July 14, 2010
  4. ^ The Edmond Sun, "Skimpy revenue dims state budget picture," October 15, 2009
  5. ^ July Revenue Collections 2010, Office of the State Treasurer, 2010-08-10
  6. ^ August Revenue Collections 2010, Office of the State Treasurer, 2010-09-14
  7. ^ September Revenue Collections 2010, Office of the State Treasurer, 2010-10-12
  8. ^ October Revenue Collections 2010, Office of the State Treasurer, 2010-11-09
  9. ^ November Revenue Collections 2010, Office of the State Treasurer, 2010-12-14
  10. ^ December Revenue Collections 2010, Office of the State Treasurer, 2011-01-11
  11. ^ January Revenue Collections 2011, Office of the State Treasurer, 2011-02-14
  12. ^ February Revenue Collections 2011, Oklahoma Office of State Finance, 2011-03-14
  13. ^ March Revenue Collections 2011, Oklahoma Office of State Finance, 2011-04-11
  14. ^ April Revenue Collections 2011, Oklahoma Office of State Finance, 2011-05-03
  15. ^ May Revenue Collections 2011, Oklahoma Office of State Finance, 2011-06-13
  16. ^ Chantrill, Christopher. "Highlights of US Federal Budget for FY11". Oklahoma state and local spending 2010. http://www.usgovernmentspending.com/Oklahoma_state_spending.html#usgs302. Retrieved October 19, 2010. 
  17. ^ Fiscal Year 2011 Omnibus Apporpriations Bill, Oklahoma Legislature

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