The AP reported Thursday that Oklahoma’s budget shortfall could potentially take another $65  million hit as a result of tax provisions that were included as part of the federal stimulus bill passed by Congress in February. The stimulus bill, or ARRA (American Recovery and Reinvestment Act), included several provisions that reduce businesses’ taxable income in 2009 and 2010. Since Oklahoma ties its income tax to federal definitions of taxable income, these federal tax cuts can wind up affecting state revenue collections as well. The most substantial provision – accounting for $46 million in lost revenue for the upcoming budget year – comes from the bonus depreciation allowance, which allows companies to write-off assets more rapidly than under normal law. Read the rest of this entry »

On Tuesday, Governor Henry convened the second meeting of the 15 member American Recovery and Reinvestment Act (ARRA) Coordinating Council, which brings together Cabinet Secretaries and agency directors with primary responsibility for implementing the myriad provisions of the stimulus bill passed by Congress in February.

The meeting made clear that whatever the typical pace of state government, the response to the passage of the stimulus act has been vigorous and energetic. Every Council member was in attendance, and each reported on a flurry of meetings, conference calls, trips, and hearings related to ARRA. Apparently $2.6 billion in the midst of an economic downturn and growing budget shortfalls does get people’s attention! Read the rest of this entry »

As we’ve said, we are very pleased by Governor Henry’s swift action in launching a state website to provide information on the federal stimulus bill (formally known as the American Recovery and Reinvestment Act, or ARRA), as it applies to Oklahoma. If you surf through the site, you’ll find various pieces of information about the multiple funding streams available to the state and Oklahoma’s expected share of these funds. What you won’t find, however, is a single document pulling together information on all the programs, grants, and funding streams that may come Oklahoma’s way as a result of ARRA. Read the rest of this entry »

This afternoon at 3:00 marked the first meeting of Governor Henry’s coordinating council to oversee the use of the federal stimulus money available to Oklahoma through ARRA. All of the members of the council were in attendance for this inaugural meeting. Susan Savage will serve as the lead contact for the council. Scott Meachem will work on all aspects of the stimulus package as they relate to the state budget and will work on a daily basis to coordinate with the legislature. Steve Burrage will be the “monitoring guru”.

Governor Henry stated that the goal of the council is to make sure Oklahoma doesn’t fall into any traps and that we get the full benefit of the stimulus funds. He stressed that, although openness and accountability is a key goal of this process, it goes beyond that. The other stated goal is to identify all opportunities where Oklahoma can benefit from the stimulus package.
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Federal agencies are releasing information and guidance on the American Recovery and Reinvestment Act (ARRA) at a fast and furious pace.  The Department of Education has a webpage that has detailed information on each of the major funding streams for education, including Title I (funding for low-income students), IDEA (special education), and the state fiscal stabilization fund. The Department articulates the basic principles guiding the education funds in the stimulus bill:

Principles: The overall goals of the ARRA are to stimulate the economy in the short term and invest in education and other essential public services to ensure the long-term economic health of our nation. The success of the education part of the ARRA will depend on the shared commitment and responsibility of students, parents, teachers, principals, superintendents, education boards, college presidents, state school chiefs, governors, local officials, and federal officials. Collectively, we must advance ARRA’s short-term economic goals by investing quickly, and we must support ARRA’s long-term economic goals by investing wisely, using these funds to strengthen education, drive reforms, and improve results for students from early learning through college. Four principles guide the distribution and use of ARRA funds: Read the rest of this entry »

We are very pleased to learn that Governor Henry has announced the creation of a coordinating council to help oversee use of federal stimulus funds. OK Policy was out front in calling for such an entity to allow for input and transparency in the distribution of funds from the massive American Recovery and Reinvestment Act. The Governor previously designated the State Auditor to lead the effort to ensure oversight of stimulus funds and launched a state website at http://www.ok.gov/recovery/ to provide publicly-accessible information on the various funding streams contained in the stimulus package. Given the unprecedented magnitude and critical importance of the stimulus bill, the coordinating council is another important component of the effort to develop public confidence that funds are being spent efficiently and honestly.

The coordinating council is set to hold its first meeting on Friday, March 13th at 3:00 p.m. in the Governor’s large conference room at the Capitol.

UPDATE: Here’s the Governor’s Executive Order creating the Coordinating Council