Oklahoma state budget
Encyclopedia
The Budget of the State of Oklahoma is the Governor
's proposal to the Oklahoma Legislature
which recommends funding levels to operate the state government
for the next fiscal year, beginning July 1. Legislative decisions are governed by rules and legislation regarding the state budget process.
After the Legislature approves an appropriations bill, it is sent to the Governor, who may sign it into law, or may veto it. A vetoed bill is sent back to the Legislature, which can pass it into law with a two-thirds majority in each chamber. The Legislature may also combine all or some appropriations bills into an omnibus appropriations bill. In addition, the Governor may request and the Legislature may pass supplemental appropriations bills or emergency supplemental appropriations bills.
Several government agencies provide budget data and analysis. These include the Oklahoma Office of State Finance
(OSF), Oklahoma Tax Commission
(OTC), the Office of the Oklahoma State Treasurer, and the Office of the Oklahoma State Auditor and Inspector
.
begins meetings. On the first Monday in February, the Governor must submits to the Legislature a balanced budget based on OSF review of budget requests and subsequent recommendations by OSF, the Governor's Cabinet Secretaries and policy advisors. Budgeted expenditures can not exceed the amount available for appropriation.
Not more than 45 days nor less than 35 days prior to the convening of each regular session of the Legislature, the State Board of Equalization certifies amounts available for appropriation. A second meeting of the Board is held within five days of the monthly apportionment in February. At these two meetings mandated by the Oklahoma Constitution
estimates of revenue to each available fund are based on a determination of the revenues to be received by the State under the laws in effect at the time such determination is made. These estimates are based on predictable changes in the economy as well as current law. Once certified, the amount may only be altered if the Legislature passes measures design to increase or reduce revenues. Should the Legislature enact laws that provide additional revenues or a reduction in revenues to these certified funds, the Board meets to determine the changes in revenue. Only those changes in revenue resulting from changes in law can be considered at this third meeting.
Once the Legislature convenes in February, both the Oklahoma Senate
's Appropriations Committee and the Oklahoma House of Representatives
' Appropriations Committee begin meeting to review each agency's budget request. This continues until late-April. In May, the Appropriations Committees determines the agency budgets for the next fiscal year and then pass appropriations bills. By the end of May to early June, the Governor evaluates all appropriation bill passed by the Legislature and makes a final decision to approve, veto or line item veto the bills. The current fiscal year ends on June 30 and the recently enacted budget takes effect on July 1.
A state agency, based upon funds appropriated by the Legislature and other funds available to the agency, then develops a Budget Work Program which outlines in detail planned expenditures for the ensuing fiscal year. Work programs are reviewed by OSF and the approved work program serves as a basis for the subsequent approrpations of funds. Budget Work Programs can be revised at any time during the fiscal year if justified and if the revision can be accomplished within various expenditure, full-time-equivalent employee and program expenditure limits.
Appropriations account for less than half of total state spending. In some agencies, nearly all of their funding comes from appropriations while, in many others, appropriations make up less than half the total spending of the agency (e.g. the Oklahoma Department of Public Safety
). Many agencies receive no appropriations at all and they are funded entirely by federal funds (e.g. the Oklahoma Employment Security Commission
) or revolving funds (e.g. the Oklahoma State Banking Department
).
Other taxes include alcohol, motor vehicle, cigarettee and tobacco taxes. Tax revenues have averaged approximately 5.8% to 6.5% of the State's gross domestic product.
until the Fund reaches the Constitutional cap of 10% of the prior year's General Revenue Fune.
The Constitutional Reserve Fund can only be used under the following conditions:
Governor of Oklahoma
The governor of the state of Oklahoma is the head of state for the state of Oklahoma, United States. Under the Oklahoma Constitution, the governor is also the head of government, serving as the chief executive of the Oklahoma executive branch, of the government of Oklahoma...
's proposal to the Oklahoma Legislature
Oklahoma Legislature
The Legislature of the State of Oklahoma is the biennial meeting of the legislative branch of the government of Oklahoma. It is bicameral, comprising the Oklahoma House of Representatives and the Oklahoma Senate, with all members elected directly by the people. The House of Representatives has 101...
which recommends funding levels to operate the state government
Government of Oklahoma
The government of the US State of Oklahoma, established by the Oklahoma Constitution, is a republican democracy modeled after the Federal government of the United States. The state government has three branches: the executive, legislative, and judicial...
for the next fiscal year, beginning July 1. Legislative decisions are governed by rules and legislation regarding the state budget process.
After the Legislature approves an appropriations bill, it is sent to the Governor, who may sign it into law, or may veto it. A vetoed bill is sent back to the Legislature, which can pass it into law with a two-thirds majority in each chamber. The Legislature may also combine all or some appropriations bills into an omnibus appropriations bill. In addition, the Governor may request and the Legislature may pass supplemental appropriations bills or emergency supplemental appropriations bills.
Several government agencies provide budget data and analysis. These include the Oklahoma Office of State Finance
Oklahoma Office of State Finance
The Oklahoma Office of State Finance is the Oklahoma state government agency that prepares the Governor of Oklahoma’s annual budget, analyzes the effectiveness of state management, manages the state’s budget system and makes appropriate allotments and transfers throughout the state government...
(OSF), Oklahoma Tax Commission
Oklahoma Tax Commission
The Oklahoma Tax Commission is the Oklahoma state government agency that collects taxes and enforces the internal revenue laws of the state. The Commission is composed of three members appointed by the Governor of Oklahoma with the approval of the Oklahoma Senate...
(OTC), the Office of the Oklahoma State Treasurer, and the Office of the Oklahoma State Auditor and Inspector
Oklahoma State Auditor and Inspector
The Oklahoma State Auditor and Inspector is the chief financial officer for the U.S. State of Oklahoma. The State Auditor and Inspector is responsible for overseeing and reviewing the financial accounts of all government agencies within Oklahoma....
.
Budget Process
The budget cycle starts with state agencies developing a detailed outline of financial needs for the next fiscal year. This "Budget Request" is then reviewed and analyzed by OSF in light of overall state responsibilities, goals, objectives and total funds available. Each year by October 1, each state agency must submit their official Budget Request to OSF. Budget requests can be amended once submitted, however. From October through December, OSF analyzes each agency's request and develops recommendations to the agency based on the direction of the Governor. Beginning in December, the Oklahoma State Board of EqualizationOklahoma State Board of Equalization
The Oklahoma State Board of Equalization is an agency of the state of Oklahoma that is responsible for tax administration. The Board is responsible for adjusting and equalizing the valuation of real and personal property of the several counties of Oklahoma...
begins meetings. On the first Monday in February, the Governor must submits to the Legislature a balanced budget based on OSF review of budget requests and subsequent recommendations by OSF, the Governor's Cabinet Secretaries and policy advisors. Budgeted expenditures can not exceed the amount available for appropriation.
Not more than 45 days nor less than 35 days prior to the convening of each regular session of the Legislature, the State Board of Equalization certifies amounts available for appropriation. A second meeting of the Board is held within five days of the monthly apportionment in February. At these two meetings mandated by the Oklahoma Constitution
Oklahoma Constitution
The Constitution of the State of Oklahoma is the governing document of the U.S. State of Oklahoma. Adopted in 1907, Oklahoma ratified the United States Constitution on November 16, 1907, as the 46th US State. At its ratification, the Oklahoma Constitution was the longest governing document of any...
estimates of revenue to each available fund are based on a determination of the revenues to be received by the State under the laws in effect at the time such determination is made. These estimates are based on predictable changes in the economy as well as current law. Once certified, the amount may only be altered if the Legislature passes measures design to increase or reduce revenues. Should the Legislature enact laws that provide additional revenues or a reduction in revenues to these certified funds, the Board meets to determine the changes in revenue. Only those changes in revenue resulting from changes in law can be considered at this third meeting.
Once the Legislature convenes in February, both the Oklahoma Senate
Oklahoma Senate
The Oklahoma Senate is the upper house of the two houses of the Legislature of Oklahoma, the other being the Oklahoma House of Representatives. The total number of Senators is set at 48 by the Oklahoma Constitution....
's Appropriations Committee and the Oklahoma House of Representatives
Oklahoma House of Representatives
The Oklahoma House of Representatives is the lower house of the Oklahoma Legislature, the legislative body of the U.S. state of Oklahoma. Its members are responsible for introducing and voting on bills and resolutions, providing legislative oversight for state agencies, and helping to craft the...
' Appropriations Committee begin meeting to review each agency's budget request. This continues until late-April. In May, the Appropriations Committees determines the agency budgets for the next fiscal year and then pass appropriations bills. By the end of May to early June, the Governor evaluates all appropriation bill passed by the Legislature and makes a final decision to approve, veto or line item veto the bills. The current fiscal year ends on June 30 and the recently enacted budget takes effect on July 1.
A state agency, based upon funds appropriated by the Legislature and other funds available to the agency, then develops a Budget Work Program which outlines in detail planned expenditures for the ensuing fiscal year. Work programs are reviewed by OSF and the approved work program serves as a basis for the subsequent approrpations of funds. Budget Work Programs can be revised at any time during the fiscal year if justified and if the revision can be accomplished within various expenditure, full-time-equivalent employee and program expenditure limits.
Gubernatorial control
In addition to controlling the state agencies and submitting the his proposed budget to the Legislature at the beginning of the budget process, the Governor also plays a significant role at the end of the budgetary process. Every appropriations bill passed by the Legislature, before it can become law, must be presented to the Governor for his approval, as is the case with all other types of bill. However, in addition to simply signing or rejecting, the Governor is given the power to veto specific items with appropriation bills and approve the remainder of the bill. Any item so vetoed is void unless both the Senate and the House of Representatives vote to override his veto by two-thirds majorities in both chambers.Legislative control
Legislative budgetary control is maintained over the state agencies at the line item level as identified in appropriation acts. Agency budgets may be modified subject to statutory limits and subject to review by the Legislature's Joint Committee on the Budget and Program Oversight. The Director of OSF must approve all transfers between line-items up to 25 percent of the line item, unless either the Chair or Vice Chair of the Joint Committee, in writing, object to the transfer. If further transfers are deemed necessary, if the Director, Chair and Vice Chair all agree, an additional 15 percent (total 40 percent) may be transferred. All transfers are subject to review by the Joint Committee to determine if the transfer tends to effectuate or subvert the intention and objectives of the Legislature.Funding sources
The three main sources of funding for State government operations are state appropriations, federal funds, and revolving funds. Revolving funds are generated from fees, dedicated financing, and other agency-generated funding.- Appropriations are annual authority from the Legislature to spend an amount of money for a particular purpose and receive the most attention from the Governor, Legislature and other groups as they represents discretionary spendingDiscretionary spendingDiscretionary spending is a spending category through which governments can spend through an appropriations act. This spending is optional as part of fiscal policy, in contrast to entitlement programs for which funding is mandatory....
- Federal funds are grants given by the United States federal government to support specific state services and agenices, with some requiring the State to match the federal funds with State appropriations and with all limit how the money may be used
- Revolving funds are fees and other revenue collected by state agencies that are used to support the activities of the agency that collected them, often limited to specific purposes
Appropriations account for less than half of total state spending. In some agencies, nearly all of their funding comes from appropriations while, in many others, appropriations make up less than half the total spending of the agency (e.g. the Oklahoma Department of Public Safety
Oklahoma Department of Public Safety
The Oklahoma Department of Public Safety is a department of the government of Oklahoma. Under the supervision of the Oklahoma Secretary of Safety and Security, DPS provides for the safety of Oklahomans and the administration of justice in the state...
). Many agencies receive no appropriations at all and they are funded entirely by federal funds (e.g. the Oklahoma Employment Security Commission
Oklahoma Employment Security Commission
The Oklahoma Employment Security Commission is an independent agency of the state of Oklahoma responsible for providing employment services to the citizens of Oklahoma. The Commission is part of a national network of employment service agencies and is funded by money from the United States...
) or revolving funds (e.g. the Oklahoma State Banking Department
Oklahoma State Banking Department
The Oklahoma State Banking Department is an agency of the state of Oklahoma. The Banking Department is responsible for regulating Oklahoma's banking system, including state-chartered banks, credit unions, savings and loan associations, and trust companies, as well as cemeteries and money order...
).
Major revenue categories
For FY 2011, the state government is projected to collect approximately $5 billion in tax revenue, up 8.29% versus FY2010 revenues of $4.6 billion. Primary receipt categories included:.- Individual income taxes (1.7B or 34%)
- Sales taxes (1.6B or 32%)
- Gross production taxesSeverance taxSeverance taxes are incurred when non-renewable natural resources are separated from a taxing jurisdiction. Industries that typically incur such taxes are oil and gas, coal, mining, and timber industries....
(434M or 10%) - Corporate income taxes (172M or 3%)
- Motor Vehicle taxes (145M or 3%)
Other taxes include alcohol, motor vehicle, cigarettee and tobacco taxes. Tax revenues have averaged approximately 5.8% to 6.5% of the State's gross domestic product.
Major expenditure categories
For FY 2011, the state government has budgeted to spent nearly $6.8 billion on a budget, up 3% versus FY2010 spending of $6.6 billion. Primary expenditure categories include:- $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%)
- $69.0 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%)
Constitutional Reserve Fund
The Oklahoma Constitution mandates the creation of a Constitutional Reserve Fund (often known as the "Rainy Day Fund"). That Fund is funded by all revenue collected that exceeds estimates by the Oklahoma State Board of EqualizationOklahoma State Board of Equalization
The Oklahoma State Board of Equalization is an agency of the state of Oklahoma that is responsible for tax administration. The Board is responsible for adjusting and equalizing the valuation of real and personal property of the several counties of Oklahoma...
until the Fund reaches the Constitutional cap of 10% of the prior year's General Revenue Fune.
The Constitutional Reserve Fund can only be used under the following conditions:
- 3/8 of the fund can be used if General Revenue fails to meet the estimate in the current fiscal year
- 3/8 of the fund can be used if General Revenue is projected to decline from one year to the next
- 1/4 of the fund can be used if there is an emergency declaration by the Governor and a 2/3 vote in both the Senate and House of Representatives, or this same 1/4 can be used without the Governor’s declaration if there is a 3/4 vote by Senate and House of Representatives.