Legislators face budget hole of up to $800 million

OKLAHOMA CITY (AP) _ Lawmakers will face a state budget hole of up to $800 million when they convene next year, officials said Wednesday. <br><br>Greg Sawyer, fiscal director for the Oklahoma House, said

Thursday, November 21st 2002, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) _ Lawmakers will face a state budget hole of up to $800 million when they convene next year, officials said Wednesday.

Greg Sawyer, fiscal director for the Oklahoma House, said preliminary calculations show lawmakers will have between $650 million and $800 million less to spend than they did in 2002.

``This is very, very preliminary but this is the indication that we have so far,'' Sawyer said.

Figures given to senators by Amanda Paliotta, Senate fiscal director, put the figure at $800 million.

State agencies already have been hit with a $291 million shortfall for this fiscal year. Counting sales taxes earmarked to schools as part of House Bill 1017, the shortfall figure climbs to $351 million.

Legislative fiscal officials based their latest projections on the assumption that the current economic downturn, which has produced lower-than-expected tax collections, will continue through the next fiscal year.

Sawyer said officials will have a better picture of the fiscal outlook when the Board of Equalization meets in December to certify revenue estimates for Fiscal Year 2004.

Part of next year's budget problems are tied to the spending of reserves, including a $9.8 million emergency appropriation approved in a special session this week to stave off furloughs of state prison workers.

``That was the last of the cash _ that's it,'' said Senate President Pro Tem-designate Cal Hobson, D-Lexington.

He said lawmakers are facing the worst revenue situation for state government in a generation.

``I view it as the most serious situation since 1983, 1984 and 1985 when the bottom fell out,'' Hobson said. ``There is not a lot of indication at the national or state level that we have seen the bottom. I hope we have, but it is not showing up in the numbers.''

This year, lawmakers helped balance the budget by appropriating more than $250 million from the state's constitutional Rainy Day Fund. That fund has only $36 million available for next year.

According to figures developed by the Senate fiscal staff, the total appropriation authority for the next fiscal year could be as low as $4.8 billion, down $800.2 million, or 14.3 percent from the previous year.

Those figures count the current $352 million shortfall and a projected additional shortfall of $449 million next year.

Hobson said the situation should create more interest in Gov.-elect Brad Henry's state lottery plan, which could raise up to $300 million.

Some education support groups also have mentioned the possibility of raising taxes.

Legislative leaders, however, say that would be difficult because of the current political atmosphere and the constitutional amendment that severely restricts the ability of lawmakers to adjust taxes.