By Jason Doyle Oden
New numbers are being crunched and so far have revealed what everyone was expecting, the state government’s budget hole is growing. According to the Office of Management and Enterprise Services (OMES) the appropriated budget hole for Fiscal Year 2017 is now expected to be $1.3 billion.
The preliminary, unverified estimates show the Board of Equalization will consider certifying $5,851,664,555 in revenues for appropriations. That’s $1.1 billion or nearly 16 percent less than was appropriated during the current fiscal year.
The Rainy Day Fund appropriations and certain revolving fund authorizations are not factored into the estimates by law. If those are added into the mix, there will be a $1.3 billion hole.
Another issue facing the Legislature is the effect oil prices will have on revenues going forward. OMES noted since the initial estimate was released in December, oil prices fell 21 percent from $34.74 per barrel to $27.45 per barrel. Another 500 jobs were also eliminated from the energy sector during that period.
“It’s been more tough sledding since December, so the hole grew as expected. The untenable cuts to core services a hole like this could cause are avoidable when bold actions like the governor proposed are taken. There are responsible ways out of this when we show courage and resolve to do the hard work,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger.
The Board of Equalization will meet February 16 at 10am to certify the revenues for appropriation. That figure will be used by lawmakers to craft the next state budget.
