OKLAHOMA CITY — The Oklahoma Legislature will have about $188 million less available this year to spend on state services than last year, an even deeper hole than was initially projected, a state panel determined Tuesday.
The Board of Equalization, headed by Gov. Mary Fallin, certified $6.9 billion in available revenue for the Legislature to spend on state programs for the fiscal year that begins July 1. That amount is $188 million less than the Legislature appropriated for the current fiscal year, and $17 million less than what was projected in December to be available.
Oklahoma’s Secretary of Finance Preston Doerflinger said the main reason for the sharp decline since December is a decrease in the estimate for corporate income tax collections, which he described as an “always volatile” revenue source.
Although Oklahoma’s economy is booming and overall tax collections to the state treasury are growing, the Legislature has less money to appropriate from the state’s General Revenue Fund, the main operating fund for state government. Doerflinger has cited several reasons for this decline, including a tax incentive for certain kinds of oil and gas drilling and the diversion of revenue for things like transportation improvements and college scholarships.
“It’s a classic ‘only in government’ paradox to collect more money than ever but have less to spend,” Doerflinger said. “The silver lining is this year’s decrease has nothing to do with the economy, which is still strong in the state and improving nationally.”
Fallin prepared her executive budget based on a projection of $170 million less to spend, and most agencies under Fallin’s budget proposal were expected to make up for the lost revenue with 5 percent cuts to their budgets.