State of Oklahoma

Revised September 15, 1999

Fiscal Year '00

Budget Review

Senator Enoch Kelly Haney

Senator Stratton Taylor

Senator Cal Hobson

Appropriations Chair

President Pro Tempore

Appropriations Vice Chair

OVERALL APPROPRIATION

 

The budget adopted for Fiscal Year 2000 (FY'00) is $4.9 billion or 1.8% over the FY'99 budget (calculated without FY'99 supplemental appropriations).

Comparison of Funding for Major Program Areas FY'99-FY'00

(in millions)

FY'99 Approp.
FY'00 Approp.
$ Change
% Change

Education

2,654.4
2,715.2
60.9
2.3

Gen. Govt./Trans.

488.9
485.9
-3.0
-0.6

Health & Social Services

436.2
448.4
12.1
2.8

Human Services

584.5
615.6
31.1
5.3

Natural Resources

121.5
112.6
-8.9
-7.4

Public Safety

521.8
551.0
29.2
5.6

R.E.A.P.

15.5
15.5
0.0
0.0

Deferred Sav. Program

6.8
6.8
0.0
0.0

Welfare-Work

0.0
5.7
5.7
N/A

Capital Improve. Fund

17.4
0.0
-17.4
-100.0

Total

4,847.1
4,956.7
109.6
2.3

 

SPECIAL SESSION

Governor Frank Keating called for an extraordinary session of the Legislature to convene on January 20 to consider emergency tax relief for the oil industry, which had been impacted by low oil prices. Since the proposed tax relief was to be immediate, lawmakers were also charged with trimming FY'99 appropriations by 1.2% to match reduced revenues. Actions during the special session:

HB 1003X, enacted February 5, reduced gross production taxes by an estimated $18.9 million in FY'99 and $25.3 million in FY'00. It also advanced the schedule of refunds to producers for "economically at-risk" oil leases into FY'99, accelerating the payment of $10.4 million to producers. The total package resulted in a $29.2 million benefit to the oil industry (see Tax Reform).

HB 1001X, enacted February 9, reduced FY'99 appropriations to almost every state agency by 1.2% to accommodate costs of HB 1003X. The cuts, totaling $25.6 million, were taken from 75 of the 79 state agencies that rely on appropriations. Excluded from cuts were pass-through funds to common schools, higher education institutions and vocational-technical schools.

 

GENERAL APPROPRIATIONS BILL

The 1st Regular Session of the 47th Legislature convened on February 1. Spending obligations carried over from previous years, coupled with relatively slow revenue growth, made the 1999 session appropriations outlook the leanest since 1993:

  • Tax cuts enacted in previous sessions, mainly the 1998 sales tax relief for food purchases and the reduction in the income tax rate, reduced potential revenues by $73.2 million.
  • Depressed oil prices reduced gross production tax collection estimates by $54.2 million.
  • Total new revenues available for appropriation were projected to grow $121 million from the previous year, an increase of only 2.6%.
  • Spending obligations enacted by the 1998 legislature and funded for part of FY'99 - mainly state employee pay and law enforcement pay - reduced spending flexibility by $27.2 million.
  • Appropriation obligations for the third year of the 1997 Road Plan would consume $92 million of new revenues.

The General Appropriations Bill (SB 161) was enacted April 8 and provided $4.836 billion for base operations of the 79 agencies supported by appropriations. With few exceptions, agencies' FY'00 base budgets in the GA bill were calculated with the 1.2% appropriations cut enacted during the February special session.

The GA bill also contained FY'99 supplemental funding of $4.5 million for the following agencies:

  • $1.3 million for Indigent Defense System
  • $1.8 million for State Department of Education
  • $500,000 the State Department of Health
  • $200,000 for Civil Emergency Management
  • $200,000 for Dept. of Environmental Quality
  • $142,359 for Department of Agriculture
  • $100,000 for Conservation Commission
  • $136,000 for Military Department
  • $70,000 for Historical Society
  • $25,000 for Commerce Department

All additional funding decisions were made by the General Conference Committee on Appropriations. Subcommittees, after evaluating each agency's needs, voted to restore budget cuts to 18 of the 79 appropriated agencies.


Table of Contents:


 
Fiscal Staff

Tom Walls, Director
Laurie Houser, Administrative Assistant

Amanda Paliotta

Education

521-5601

paliotta@lsb.state.ok.us

Terri White

General Gov't. & Transportation

521-5672

whitet@lsb.state.ok.us

David Blatt

Health & Social Services

521-5766

blatt@lsb.state.ok.us

Claudia San Pedro

Human Services

521-5773

sanpedro@lsb.state.ok.us

Robb Gray

Natural Res. & Regulatory Srvs.

521-5688

gray@lsb.state.ok.us

K.C. Moon

Public Safety & Judiciary

521-5696

moon@lsb.state.ok.us

Brian Phillips

Retirement & Employee Benefits

521-5627

phillips@lsb.state.ok.us