Governor Fallin Orders Plans For 10% Cut In 'Nonessential' State Spending

Governor Mary Fallin issued an executive order Monday requiring written plans to for a 10-percent cut in nonessential spending in all state agencies.

The order is directed at the chief administrative officer of every Oklahoma agency, board and commission. It covers the remainder of this fiscal year and for the entire 2017 fiscal year, which begins July 1.

According to a news release from the governor's office, the executive order does not mandate any spending cuts; rather, it asks agency heads to plan for potential future cuts. Revenue for the for the 2016 fiscal year has come in below projections, the news release says, and the state expects a significant shortfall in the next budget year. 

Executive Order 2015-46 requires the plans explain how the money saved will be reallocated to other needs within the agency. The written plans are due to each agency’s respective Cabinet secretary by December 1.

Read the executive order.

The governor also placed a moratorium on nonessential, taxpayer-funded, out-of-state travel for all state employees. Essential travel is limited to trips that are critical to core state agency functions, maintain professional accreditation unavailable in Oklahoma, are required by the federal government or are necessary to secure or maintain federal funding.

Also, effective December 1, advance written notification must be given for proposed state payment of the following:

Agency, state and public employee or officer membership(s) in any private or public organization;
Nonessential out-of-state travel for agency employees and officers that is wholly paid for by an entity other than the state, or;
Nonemergency purchase(s) that exceed $10,000.

“I’m asking every agency to start planning for potential spending cuts and to develop a strategy that protects essential services,” said Fallin. “It’s important we get ahead of this issue as we enter a difficult budget year. Families and businesses tighten their belts during lean times; our state agencies can do the same.”