With the 2011 legislative session now wrapped up, we are pleased to release our FY ’12 Budget Highlights, a one-page summary analysis of the budget for the upcoming year, along with eight detailed charts and tables on revenues and appropriations.

A couple of the notable charts are excerpted below.

The state’s annual appropriated budget for FY ’12 is $6.511 billion. This is the third straight year of decreased funding for state agencies; total appropriations for next year will be $250 million less than in FY ’07. Read the rest of this entry »

After two straight years of cuts, the state’s budget situation remains dire. Despite the economic recovery and improving revenue collections, the state faces a huge shortfall for next year. The substantial non-recurring revenues that were used to balance the budget over the past two years, including federal stimulus dollars, state reserve funds, and assorted one-time revenue enhancements,  have mostly dried up.  The Board of Equalization has certified some $500 million less in available revenue for FY ’12 than what was appropriated for the current year budget. As we stated in our recent issue brief on protecting core services:

The impact (of budget cuts) is being felt by Oklahoma families, businesses and communities in far-ranging ways… Deeper cuts will further impinge the ability of state agencies to fulfill their core missions and may seriously affect the well-being of schoolchildren, seniors, persons with disabilities, correctional and public safety officers, and other members of our communities.

In this context, the Governor and legislative leaders are actively considering additional ongoing or one-time revenue sources that could avert truly catastrophic cuts to core services. One option being discussed is appropriating this year’s “5 percent money” for next year’s budget.  This post explains the “5 percent option” and suggests why, on balance, we think a portion of this money should be used, along with other revenue solutions. Read the rest of this entry »

With the state anticipating large budget shortfalls – estimated by Republican legislative leaders as in the vicinity of $600 million -  for the upcoming fiscal year, there is renewed talk from state leaders about the need to protect “core public services” from the full impact of potential cuts. While the interpretation of core public services varies, most officials define the term to include education, health (which may encompass human services), public safety and transportation.

The graph below presenting the allocation of current year (FY ’11) state appropriations shows why the task of balancing the budget without cuts to core services or new revenues is so difficult, if not outright impossible:

Read the rest of this entry »

One of the more contentious skirmishes in the battle over SQ 744 concerns the question of whether, in the absence of a constitutional amendment basing common education funding on a constitutionally-entrenched formula, Oklahoma’s elected officials have neglected K-12 funding.

Supporters of SQ 744 argue that at least in recent years, school funding has not been a top priority of the state’s elected officials. In kicking off the campaign for SQ 744 in 2008, OEA President Becky Felts stated, “If we want better workers, stronger employees, a well-educated workforce, we have to make public education a priority.”  On its website, the Yes on 744 campaign refers to the need to “re-prioritize public education.”  Recently, Oklahoma Teacher of the Year Heather Sparks wrote:

As legislative leaders and the Governor continue to work on an agreement on the FY ’11 budget facing a budget gap of some $800 – $850 million, here’s a quick visual reminder of why you can’t address a shortfall of this magnitude without cutting the “Core Four” of  education, health and human services, public safety and transportation:

FY '10 Initial State Appropriations