Gov. Stitt: Oklahoma Expected To Experience Revenue Failure For Fiscal Year 2020

Gov. Kevin Stitt announced Oklahoma is expected to experience a revenue failure of roughly $416 million for the remainder of 2020's fiscal year, which ends on June 30. 

On Friday, Stitt said both the coronavirus (COVID-19) pandemic and the drop in the oil and gas market had an impact on Oklahoma. 

“This revenue failure is not unexpected given the significant impacts of the COVID-19 pandemic as well as the dramatic downturn in the oil and gas markets,” Stitt said in a news release. “Times like these further reinforce how critically important it was for our House and Senate leadership to work with me to save an additional $200 million during last year’s budget surplus.”

Normally, a revenue failure would cause an automatic 6.2% budget cut to all state agencies. But officials said Stitt has called for a "special virtual meeting of the Board of Equalization" in order to start the procedures to let lawmakers tap into the state's savings account. 

The state's Rainy Day Fund currently has $806 million, according to officials; $302 million is available to help supplement the 2020 fiscal year budget.

"As the last few weeks have demonstrated, it will take time to fully understand the impact COVID-19 will have on our state revenue. We must be very cautious and remain fiscally prudent to restrain spending as we work with the legislature on next year’s budget," Stitt said. 

In addition to the $302 million available for FY 2020, the state Legislature is authorized to access an additional 25% of the Rainy Day Fund, a total of $201 million. This is due to the governor's emergency declaration. 

The meeting is scheduled at 1 p.m. on Monday.