As revenues have come in significantly below estimates this year, funding to state agencies was cut 5 percent a month from August to November and 10 percent each month since (see our updated fact sheet). OK Policy’s intern Matt Gardner has been tracking media reports of the ways that cuts in state funding over the course of the downturn. He provides this report of some of what’s transpired in recent months.

Budget cuts in recent months appear to have affected Oklahomans from all walks of life. Many agencies have been forced to cut jobs, offer bailouts, or implement furlough days, but cuts have required agencies to go further and eliminate services altogether.

Some examples:

• The Bill Willis Community Mental Health Center faces more cuts, despite having eliminated its 20-bed men’s substance abuse program. That was to save $1.2 million. Now, the center has been asked to trim $300,000 more. According to Executive Director Margaret Bradford, “without this type of treatment you’re going to see more and more people end up in the criminal justice system,” costing the state more money than the treatment. Read the rest of this entry »

I posted an entry this morning that compared the mid-year budget cuts being absorbed by each of the ten largest state agencies. Unfortunately, the post – which I’ve now deleted -  included outdated information regarding funding for the Departments of Transportation and Common Education. In particular, I was unaware of a bill (HB 2433) that imposed a 7.5 percent cut to ODOT’s appropriation from the State Transportation Fund, and of some additional funding decisions (included in HB 2352) that aim to restore a greater part of the funding cuts to the Department of Education than initially announced. I will re-examine this and post revised numbers once FY ‘10  appropriations bill have made it through the process. I apologize for the error and any confusion or inconvenience it may have caused.

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.

Read the rest of this entry »

In Monday’s State of the State address, Governor Henry laid out the broad parameters of his FY ’11 Executive budget. The Governor’s speech likened our current fiscal storm to the severe weather the state has faced recently and so often in our past.  While the Governor stated clearly that continued budget cuts are unavoidable due to the dramatic plunge in revenues that has hit the state during the current fiscal year (FY ’10) and that will continue next year, he earned loud, bipartisan applause when he declared:

We all will be asked to sacrifice. But we cannot balance the budget at the expense of the most vulnerable among us.

Read the rest of this entry »

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 »

According to an e-mail that went out late last Friday afternoon from Nico Gomez, the Deputy CEO for External Relations and Communications of the Oklahoma Health Care Authority (OHCA), the agency will recommend to its Board this week that it make up for shortfalls in its FY ‘10 budget by adopting a cut of 2.5 to 3 percent in the rates it pays all its providers. Read the rest of this entry »

If state fiscal conditions can be likened to the weather, it’s been apparent for many months that Oklahoma is in the midst of a toad strangler of a rain, to borrow the Tulsa World’s colorful characterization. Going into the current fiscal year, the state faced projected revenue shortfalls of over $600 million.  While most agencies had their budgets cut by 5-7 percent, the use of some $640 million of federal stimulus dollars allowed the largest core agencies to receive smaller cuts or small increases, while the Rainy Day Fund was left intact. This year’s revenue collections, however, are coming in nearly 25 percent below the certified estimate. Agency budgets have been cut 5 percent each month, which has forced a growing number of agencies and school districts to reduce staff and scale back or eliminate core programs. Read the rest of this entry »