2011 (2011) Budget of the Oklahoma state government
Submitted byBrad Henry
Submitted to52nd Legislature
Total revenue$6.73 billion (estimated)
Total expenditures$6.9 billion (request)
$6.7 billion (enacted)
Websitehttp://www.ok.gov/osf/Budget/index.html Oklahoma Office of State Finance
‹ 2010
2012 ›

The Oklahoma State Budget for Fiscal Year 2011, is a spending request by Governor Brad Henry to fund government operations for July 1, 2010–June 30, 2011. Governor Henry and legislative leader approved the budget in May 2010. This was Governor Henry's eight and final budget submitted as governor.

Figures shown in the spending request do not reflect the actual appropriations for Fiscal Year 2011, which must be authorized by the Legislature.

Overview

Oklahoma's $6.7 billion state budget for FY2011 was approved in May 2010[1] and is $400 million less than the previous budget.[2] State revenues declined almost 17% in FY2010, down approximately $945 million from FY2009.[3] As a result, lawmakers cut state agency budgets 7.5% midway through FY2010. Then lawmakers relied on a combination of fee hikes, deferred tax credits and further cuts to state agencies (3% cut in general) to help balance the FY2011 budget.[3] That was not, however, enough and lawmakers additionally relied on $500 million in federal stimulus money and $277 million in funds from the Constitutional Reserve Fund to balance the FY2011 state budget.[3]

Oklahoma has nearly $600 million remaining in its Constitutional Reserve Fund, but has limitations in using it to fill the budget shortfall. Three-eighths of the fund may be used to fill the 2010 mid-year gap, three-eighths may be used for the next fiscal year, and the remaining quarter may be used in a declared emergency by the governor with a three-quarter vote of the Legislature.[4]

Revenue Increases

The Governor's budget identified the following measures to increase State revenue:

Key Funding Issues

The Governor's budget identifies the following key funding issues:

Revenue

Budgeted Revenue

Estimated tax revenue for fiscal year 2011 is $5.3 billion, an estimated decrease of 22% from FY2010 amounts of $6.8 billion:

  • $1.709 billion - Sales and Use Tax (33%)
  • $1.703 billion - Individual Income Tax (32%)
  • $519 million - Gross Production Tax (10%)
  • $172 million - Corporate Income Tax (3%)
  • $145 million - Motor Vehicle Tax (3%)
  • $28 million - Other Taxes (1%)
  • $722 million - Other (14%)

All revenue of the $6.8 billion budget revenue breaks down as follows:

  • $5.3 billion - All taxes (78%)
  • $203 million - Revenue increases (3%)
  • $190 million - Tax enforcement (3%)
  • $259 million - Rainy Day Fund (4%)
  • $696 million - American Recovery and Reinvestment Act (10%)
  • $225 million - Other revenue measurers (3%)

Collected Revenue

The following figures represent actual tax revenue collected by month for Fiscal Year 2011 and deposited within the State's General Fund:

FY11 MonthAmount (in millions)% Change from FY10 Collections % Change from FY11 EstimateSource
July $370.1 10% 12% [5]
August $350.8 5% 0% [6]
September $459.7 6% 4% [7]
October $427.7 7% 4% [8]
November $345.9 9% (3)% [9]
December $454.5 13% 4% [10]
January $490.3 19% 4% [11]
February $247.1 12% 4% [12]
March $438.5 9% 11% [13]
April $576.8 13% (3%) [14]
May $414.7 10% 7% [15]
June $576.0 16% 13% [16]
TOTAL $5,152.1 10.5% 4.5% N/A

Fiscal Year 2011 ended with a budget surplus over estimated revenue. The $219 million surplus was deposited into the State Constitutional Reserve Fund and may be used by the Oklahoma Legislature in future years to shore up sudden drops in tax revenues.[17]

Collected General Fund revenue for fiscal year 2011 was $5.1 billion, an increase of 10.5% over FY2010 amounts of $4.6 billion:

  • $2.1 billion - Individual Income Tax
  • $1.7 billion - Sales and Use Tax
  • $488 million - Gross Production Tax
  • $199 million - Motor Vehicle Tax
  • $642 million - All others

Spending

Requested

The projected gross state product is listed at $155 billion. The fiscal year 2011 spending represents 4.3% of GSP.

The Governor's budget for FY2011 totals $6.9 billion in total spending requests. Percentages in parentheses indicate percentage change compared to 2010. The budget request is broken down by the following expenditures:

  • FY2010 Supplementals - $101 million

Appropriations

The Oklahoma Legislature approved total appropriations for fiscal year 2011 of $6.7 billion. Percentages in parentheses indicate percentage change compared to the Governor's budget. The final appropriations are broken down by the following expenditures:[18]

  • Appropriations by Cabinet Department: 6.7 billion (-2%)
    • $3.5 billion - Education (-4%)
    • $1.23 billion - Health (+2%)
    • $723 million - Human Services (+4%)
    • $653 million - Safety and Security (+0%)
    • $115 million - Transportation (-45%)
    • $86.3 million - Finance and Revenue (+8%)
    • $80.8 million - Judiciary (+7%)
    • $79.2 million - Commerce and Tourism (+15%)
    • $36.1 million - Agriculture (-6%)
    • $36 million - Veterans Affairs (-3%)
    • $32 million - Legislature (-4%)
    • $23.1 million - Human Resources and Administration (-3%)
    • $19.2 million - Science and Technology (-3%)
    • $13.8 million - Environment (-3%)
    • $10.9 million - Energy (-4%)
    • $10.8 million - Military (-2%)
    • $9.1 million - Secretary of State (+34%)
    • $2.6 million - Governor and Lieutenant Governor (-7%)

References

  1. ↑ Oklahoma legislators, governor reach $6.7 billion budget deal, by Michael McNutt, Daily Oklahoman, May 21, 2010
  2. ↑ The Oklahoman "2010 Oklahoma Governor's race: New governor to face still budget challenges" Oct. 3, 2010
  3. 1 2 3 Businessweek "Treasurer: Brighter days ahead for Okla. economy" July 14, 2010
  4. ↑ The Edmond Sun, "Skimpy revenue dims state budget picture," October 15, 2009
  5. ↑ July Revenue Collections 2010, Office of the State Treasurer, 2010-08-10
  6. ↑ August Revenue Collections 2010, Office of the State Treasurer, 2010-09-14
  7. ↑ September Revenue Collections 2010, Office of the State Treasurer, 2010-10-12
  8. ↑ October Revenue Collections 2010, Office of the State Treasurer, 2010-11-09
  9. ↑ November Revenue Collections 2010, Office of the State Treasurer, 2010-12-14
  10. ↑ December Revenue Collections 2010, Office of the State Treasurer, 2011-01-11
  11. ↑ January Revenue Collections 2011, Office of the State Treasurer, 2011-02-14
  12. ↑ February Revenue Collections 2011, Oklahoma Office of State Finance, 2011-03-14
  13. ↑ March Revenue Collections 2011, Oklahoma Office of State Finance, 2011-04-11
  14. ↑ April Revenue Collections 2011, Oklahoma Office of State Finance, 2011-05-03
  15. ↑ May Revenue Collections 2011, Oklahoma Office of State Finance, 2011-06-13
  16. ↑ June Revenue Collections 2011, Oklahoma Office of State Finance, 2011-07-11
  17. ↑ General Revenue Fund Collections Strong As Fiscal Year Ends, Oklahoma Office of State Finance, 2011-07-11
  18. ↑ Fiscal Year 2011 Omnibus Apporpriations Bill, Oklahoma Legislature
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