Legislative Leaders Focus On State Budget Amid Coronavirus Pandemic

COVID-19 and a drop in oil prices are having an impact on the state budget. Legislative leaders are juggling the finances trying to come up with solutions. 

The hallways of the state Capitol are empty. State lawmakers, many of them working from home, are focusing on the state budget which is hundreds of millions of dollars in the red. Legislative leaders are working from home on two problems -- shoring up this year’s budget and producing a spending plan for next year.

It’s going to be tough. 

Oil prices dropped to an 18-year low, so tax revenue is also down. For this fiscal year Representative Kevin Wallace (R) Appropriations Chair said, “We’re looking at a revenue failure for 20 of approximately 219 million dollars.”

The state is also about $250 million short for fiscal year 2021. Fortunately, the state has about $1.1 billion in its savings account.

“Coming into this session we had put extra money into the stabilization fund, extra money into the constitutional fund, put money in the provider rate preservation fund so were sitting on about one point one in savings which will really help prop us up and get us through this.” Wallace said.

The state does have additional expenses going into next year like an increase in payments for teacher raises and more bond debt.

“Obligations laid out to about 105 million above last year’s budget. Some agencies have requested lower appropriations which is going to help out a bit.” Wallace said.

The state is also expecting a big chunk of cash from the federal stimulus package.

“One-point-five billion is definitely coming to Oklahoma. I think about $844 million will come directly to the state, some will go to the municipalities. Over $500,000 to Oklahoma City and Tulsa. And a lot just to business owners.” Wallace said.

“This too will pass but it’s really important right now to show stability and confidence and move forward,” he said.

If all works out according to plan the state could have a budget in place in the next few weeks.