Oklahoman: Nearly $8 million in additional income is expected for upcoming year in Oklahoma
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June 20, 2011
BY MICHAEL MCNUTT mmcnutt@opubco.com
Published: June 18, 2011
Changes in state laws, which among other things beef up tax collection efforts, will produce an additional $7.7 million that will be available for lawmakers when they return in session next year, a state budget board determined Friday.
Legislators will be able to use the money for emergency, or supplemental, funding to agencies in danger of running out of money before the end of the next fiscal year, state Finance Director Preston Doerflinger said.
Lawmakers also have the option of holding onto the money and either appropriating it to agencies for the 2013 fiscal year or depositing it in the state’s depleted savings account, he said.
The overall $6.5 billion state budget package for the 2012 fiscal year, which starts July 1, basically remains the same.
Lawmakers for the third straight year this past session cut state spending as they dealt with an economic slowdown caused mostly by the national recession and low natural gas prices. Lawmakers last year drained just about all the nearly $600 million in the state’s Rainy Day Fund to deal with shortfalls in the 2010 and 2011 fiscal years.
“Until we can build up our cash reserves again, we should approach everything being cautiously optimistic,” said Senate President Pro Tem Brian Bingman, R-Sapulpa. “The (stock) market and what’s going on outside Oklahoma is still very concerning. Although the economic climate in Oklahoma seems to be improving,
I just say we need to be cautious. It’s kind of a comfort knowing that it’s there,” he said.
Legislators adjourned their session early last month. The state Board of Equalization, made up of several elected officials, met Friday to review laws that increase and decrease estimated revenue, and to certify a final amount that can be spent in the upcoming fiscal year.
Total changes to sales tax collections make up most of the projected new income, Doerflinger said. One measure, Senate Bill 123, authorizes the state Tax
Commission to hire additional auditors to improve sales and use tax enforcement, as well as set up additional hearings dealing with the payment of sales and use taxes. Altogether, the measure is expected to bring in an additional $15.9 million.
Laws cut earnings
Changes overall will produce an additional $27.1 million, but lawmakers also passed laws that reduce expected earnings. Among them is House Bill 1008, which restores aerospace engineer tax credits that were placed on moratorium last year. Restoring the credit will cost the state $4.6 million during the 2012 fiscal year.
Lawmakers also passed HB 1634, which reduces by half the annual decal fees for vending machines and jukeboxes to $75. The measure is estimated to cost the state $572,000 during the upcoming fiscal year.
Legislators were authorized to spend $6.3 billion this session, but the budget package includes using about $200 million from various other sources.
Lawmakers faced a $500 million budget hole for the 2012 fiscal year. They approved budget cuts for agencies that mostly range from less than 1 percent to 9 percent, mostly to deal with the shortfall.
Challenges issued
The $6.5 billion package is 3.2 percent less than this fiscal year’s budget of $6.7 billion.
A legal challenge has been filed, contesting part of the budget package that centers on legislators and the governor agreeing to take $100 million from the state
Transportation Department’s revolving fund and transfer it to the state’s general revenue fund where it can be used for other expenses.
In return, the Transportation Department was allowed to seek a $70 million bond issue so projects in its eight-year building plan can remain on schedule.
