Treasurer Says State to Have $729 Million Less

Oklahoma Treasurer Scott Meacham says state government will experience a revenue failure of more than $729 million for the fiscal year that ends June 30.

Monday, December 21st 2009, 12:38 pm

By: News 9


Staff and Wire Reports

OKLAHOMA CITY -- Oklahoma Treasurer Scott Meacham says state government will experience a revenue failure of more than $729 million for the fiscal year that ends June 30.

Meacham says that means state agencies will have to endure additional budget cuts or receive an infusion of revenue from the constitutional Rainy Day reserve fund or other sources.

Meacham released preliminary revenue figures Monday that the Board of Equalization will use to determine how much revenue lawmakers will be authorized to appropriate during the 2011 fiscal year that begins July 1.

Meacham says revenue is forecast to decline almost $967 million, or 17.6 percent, from the current fiscal year.

Revenue from income taxes, sales taxes and the gross production tax on natural gas are all expected to decline in the upcoming fiscal year.

Gov. Brad Henry released the following statement in response to the new state revenue estimates:

"Obviously, the revenue projections are disappointing and signal some very difficult challenges ahead. As we work to address this historic shortfall and balance the budget, Oklahomans who rely on state programs and services will feel the pinch as additional cuts are imposed to reflect the latest revenue estimates.

"It is difficult to find any bright spots in the latest revenue report, but it is important to note that we are better prepared to address this crisis than we were in 2003 when the last national downturn shook state government. We have scrupulously guarded the Rainy Day Fund and filled it to its capacity with approximately $600 million, and we have reserved another $600 million in stimulus funding for use in the months to come.

"Those reserve funds will play a critical role in our efforts to protect the core services on which the people of Oklahoma rely. We are already working with legislative leaders on a budget framework that will include the use of reserve funds, targeted cuts, efficiency programs and revenue enhancements.

"I appreciate the hard work and cooperation of legislative leaders and of Republican and Democratic lawmakers who have held budget hearings in recent weeks to prepare themselves for this very challenging situation. I think we can all agree that continued bipartisan cooperation is essential to address this challenge in the most effective manner possible."

Senate President Pro Tempore Glenn Coffee issued the following statement in response to State Treasurer Scott Meacham's revenue report this morning:

"Given these realities, it is incumbent on the legislature, the governor, and all agency heads to put aside any differences we may bring to the table and work together to provide the services the people of this state need and deserve most. It is very clear that everyone will have to sacrifice. This is an opportunity to restructure government into a more efficient and effective system of providing for the public, and I'm confident we can accomplish this over the coming weeks and months. It will be our task to make the necessary reductions in a fair and equitable manner.

I'm confident the people of Oklahoma will pull together and we'll see our way through this and to better times down the road."

House Speaker Chris Benge (R-Tulsa) issued the following statement in response to revenue projections unveiled by State Treasurer Scott Meacham today:

"Tough decisions are ahead as we tackle over a billion dollar shortfall, and those decisions will help define us as a state and likely set us apart from others. Our state has made it through economic hardships before, and I am confident we will again as we work in a bipartisan way to make sound fiscal decisions for the people of Oklahoma."

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