As the dust settles on the 2010 legislative session that adjourned on May 28th, we’ve now released a detailed summary of the major highlights of the state budget for the upcoming year. Our fact sheet includes a set of seven tables and charts, including this one, which compares total state appropriations over the past twelve years:
Legislative leaders and the Governor yesterday announced their agreement on the FY ‘11 budget. We’ve posted the press release here and the document that was provided comparing appropriations for each agency for this budget year and next, and listing the additional revenues that were agreed on in addition to the $5.4 billion in state revenues certified by the Board of Equalization in February. The Oklahoman’s Paul Monies has created a nifty visual breakdown of where the money is going using a program called Many Eyes. Read the rest of this entry »
For the second time in less than a month, the Governor and legislative leaders have announced an agreement on how to address the huge shortfalls in this year’s budget caused by declining revenue collections. This second agreement is not much different than the initial January agreement: monthly across-the-board cuts of ten percent of allocations from the General Revenue Fund will continue for the rest of the year, with the extent of cuts to some agencies mitigated by additional funds. This “addendum” to the January deal involves two main components: Read the rest of this entry »
Just before the start of the Legislative session, Governor Henry announced that he had reached an agreement with Speaker Benge and President Pro Tem Coffee on the FY ‘10 budget. Faced with projected mid-year revenue shortfalls of slightly more than $800 million, the leaders agreed that agency appropriations from the General Revenue Fund would continue to be cut by 10 percent for the remaining months of the year, with supplemental funding made available to certain agencies (Common Ed, Higher Ed, Health Care Authority, Corrections and Rehab Services) to mitigate the extent of cuts.
In a press release Tuesday afternoon, Governor Brad Henry, Speaker Chris Benge and Senate Pro-Tem Glenn Coffee announced agreement on how to address the shortfalls in the FY ‘10 budget that have resulted from this year’s revenues coming in sharply below the certified estimate.
Based on the revised estimates for FY ‘10 certified by the Board of Equalization in December, the state is looking at a total mid-year shortfall of $809 million in FY ‘10, made up of $729 million in the General Revenue Fund and $80 million in the HB 1017 Education Reform Fund. The leadership agreement involves the following main features for bringing the FY ‘10 budget into balance: Read the rest of this entry »
Just a day after Governor Brad Henry signed the state budget for FY ‘10, Oklahoma Policy Institute released its annual budget review. And the new fiscal year, which starts July 1, promises to be an interesting one:
all agencies face a tight and difficult year ahead as they wrestle with increases in mandatory operating expenses and, for some, rising caseloads in a downturn, with flat or reduced funding.
This year, the adoption of the budget is just the start of a process that will unfold over the next 13 months. Agencies must allocate appropriated and other funds to their programs, figure out how they’ll cover all these built-in cost increases, adjust service levels and, in all probability, adjust again later in the year. We won’t know until next June or later how it all worked out.
But it does start at the beginning, and that’s where our budget review helps. It is the first comprehensive look at the budget process and the outcomes it led to. Here’s what you’ll find inside:
Once you’ve read the budget brief, you’ll be caught up with us and ready to see the rest of the budget picture develop.
When legislative leaders and the Governor announced the FY ‘10 budget deal last Friday, they stated that the agreement “protects the four core functions of government, including education, health care, corrections and transportation.” It may not be that simple. The Department of Human Services, the agency that operates programs primarily serving vulnerable children, families, seniors, and persons with disabilities, was dealt a cut of $9.4 million for FY ‘10 compared to FY ‘09. Even though this cut equals only 1.68 percent of agency appropriations, it is becoming apparent that DHS could be hard-pressed to continue operating existing programs. For this agency, and likely several others, we may not know what is protected, and how, for months after the Legislature heads home tomorrow.
The FY ‘10 budget agreement allocates $549.7 million for FY ‘10, of which $71.4 million is federal stimulus money associated with enhanced federal matching rates on the agency’s Medicaid-eligible expenditures. At its April Commission meeting, Director Howard Hendrick presented the emerging FY ‘10 budget picture for the agency. He asserted that DHS required $665.8 million in state funds for FY ‘10, which amounts to an increase of $106.6 million compared to FY ‘09 appropriations. Based on the figures presented to the Commission, the $9.4 million funding cut means DHS could be facing a shortfall of up to $115 million in FY ‘10.
The initial reports on the agreement for the Fy ‘10 budget reached on Friday between legislative leaders and the Governor were positive - due to the availability of over $600 million in federal stimulus dollars, key education, health care, and public safety agencies received flat funding or increases to cover mandatory costs without recourse to the Rainy Day Fund or tax increases. While most agencies were hit with budget cuts of 7 percent, news articles and editorials expressed confidence that agencies would be able to absorb these funding reductions without having to implement layoffs or furloughs.
Quickly enough, the picture has begun to darken. Today brings the first reports of agencies considering furloughs, with the Department of Public Safety, which is facing a budget cut of $6.3 million, announcing it is looking at imposing a six day furlough for its staff of 800 state troopers in an effort to save $1.8 million. The Department would also eliminate its annual trooper academy and leave vacancies unfilled.
According to DPS Commissioner Kevin Ward:
“Our concern is with the smaller academy this year not filling all the slots that are going to come open through attrition and no academy next year, we’re kind of getting into a decline in personnel out there,” he said.
“As people quit, like driver’s license examiners, we’re not going to be able to replace them and so some of our areas in which lines are long now, they could get longer.”
