The Oklahoma Board of Equalization’s certification of lower revenues triggered a revenue failure and made official the starting point for the next state budget.
The revenue failure triggered cuts to state agencies for this fiscal year. The next budget will begin more than $900 million below the current spending plan. State leaders have been swallowing the hard pill and have begun to prepare for a tough budget process. One such leader is Senate President Pro Tempore Brian Bingman.
“Today’s certification of revenue figures makes clear that the state faces a difficult budget situation, and that the Legislature must act to ensure that we do not face such a challenge in future years. The Senate stands ready to make the tough decisions that will be necessary to guide the state through these difficult times, and reduce the likelihood of future shortfalls,” said Bingman, R-Sapulpa. “The Legislature must move away from a reliance on using one-time monies to fund ongoing expenditures, and we must address the structural issues that are reducing the amount of revenue available to the Legislature for discretionary spending. Additionally, we will continue our efforts to review ineffective tax credits and tax exemptions, eliminating those exemptions that are not providing us with a return on our investment.”
Governor Fallin will use this initial revenue estimate to create a budget proposal which will be presented to the Legislature in February. Shortly after the new session begins, the Board of Equalization will provide the final revenue estimate and set lawmakers’ next spending limit.
