Oklahoma state budget

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The Budget of the State of Oklahoma is the Governor's proposal to the Oklahoma Legislature which recommends funding levels to operate the state government for the next fiscal year, beginning July 1. Legislative decisions are governed by rules and legislation regarding the state budget process.

Governor of Oklahoma head of state and of government of the U.S. state of Oklahoma

The Governor of Oklahoma is the head of state for the U.S. state of Oklahoma. Under the Oklahoma Constitution, the governor is also the head of government, serving as the chief executive of the Oklahoma executive branch, of the government of Oklahoma. The governor is the ex officio Commander-in-Chief of the Oklahoma National Guard when not called into federal use. Despite being an executive branch official, the governor also holds legislative and judicial powers. The governor's responsibilities include making yearly "State of the State" addresses to the Oklahoma Legislature, submitting the annual state budget, ensuring that state laws are enforced, and that the peace is preserved. The governor's term is four years in length.

Oklahoma Legislature

The Legislature of the State of Oklahoma is the state legislative branch of the U.S. state of Oklahoma. The Oklahoma House of Representatives and Oklahoma Senate are the two houses that make up the bicameral state legislature. There are 101 state representatives, each serving a two-year term, and 48 state senators, who serve four-year terms that are staggered so only half of the Oklahoma Senate districts are eligible in each election year. Legislators are elected directly by the people from single member districts of equal population. The Oklahoma Legislature meets annually in the Oklahoma State Capitol in Oklahoma City.

Government of Oklahoma

The government of the U.S. State of Oklahoma, established by the Oklahoma Constitution, is a republican democracy modeled after the federal government of the United States. The state government has three branches: the executive, legislative, and judicial. Through a system of separation of powers or "checks and balances," each of these branches has some authority to act on its own, some authority to regulate the other two branches, and has some of its own authority, in turn, regulated by the other branches.

Contents

After the Legislature approves an appropriations bill, it is sent to the Governor, who may sign it into law, or may veto it. A vetoed bill is sent back to the Legislature, which can pass it into law with a two-thirds majority in each chamber. The Legislature may also combine all or some appropriations bills into an omnibus appropriations bill. In addition, the Governor may request and the Legislature may pass supplemental appropriations bills or emergency supplemental appropriations bills.

Several government agencies provide budget data and analysis. These include the Oklahoma Office of State Finance, Oklahoma Tax Commission, the Office of the Oklahoma State Treasurer, and the Office of the Oklahoma State Auditor and Inspector.

The Oklahoma Tax Commission (OTC) is the Oklahoma state government agency that collects taxes and enforces the taxation and revenue laws of the state. The Commission is composed of three members appointed by the Governor of Oklahoma and confirmed by the Oklahoma Senate. The Commissioners are charged with oversight of the agency but appoint an Executive Director to serve as the chief administrative officer of the Commission and to oversee the general practices of the Commission.

Oklahoma State Treasurer

The State Treasurer of Oklahoma is the chief custodian of Oklahoma’s cash deposits, monies from bond sales, and other securities and collateral and directs the investments of those assets. The treasurer provides for the safe and efficient operation of state government through effective banking, investment, and cash management. The state treasurer has the powers of a typical chief financial officer for a corporation.

Oklahoma State Auditor and Inspector

The Oklahoma State Auditor and Inspector is an elected Constitutional officer for the U.S. State of Oklahoma. The State Auditor and Inspector is responsible for auditing and prescribing bookkeeping standards of all government agencies and county treasurers within Oklahoma. The office in its current form is a consolidation of the office of State Auditor with that of the office of State Examiner and Inspector, both of which dated back to statehood in 1907. The two positions were combined in 1979 after passage of State Question 510 in 1975. Tom Daxon was the first person to hold the combined office and the first Republican as all previous occupants of either position were Democrats.

Budget Process

The budget cycle starts with state agencies developing a detailed outline of financial needs for the next fiscal year. This "budget request" is then reviewed and analyzed by Office of State Finance in light of overall state responsibilities, goals, objectives and total funds available. Each year by October 1, each state agency must submit their official budget request to the Office of State Finance. Budget requests can be amended once submitted, however. From October through December, the Office of State Finance analyzes each agency's request and develops recommendations to the agency based on the direction of the Governor. Beginning in December, the Oklahoma State Board of Equalization begins meetings. On the first Monday in February, the Governor must submit a balanced budget to the Legislature based on the Office of State Finance review of budget requests and subsequent recommendations by the Office of State Finance, the Governor's Cabinet Secretaries and policy advisors. Budgeted expenditures can not exceed the amount available for appropriation.

Oklahoma State Board of Equalization

The Oklahoma State Board of Equalization is an agency of the state of Oklahoma that is responsible for tax administration. The Board is responsible for adjusting and equalizing the valuation of real and personal property of the several counties of Oklahoma. Board is also responsible for providing an estimate of all revenue that will be available for appropriation by the Oklahoma Legislature for the coming fiscal year.

Not more than 45 days nor less than 35 days prior to the convening of each regular session of the Legislature, the State Board of Equalization certifies amounts available for appropriation. A second meeting of the Board is held within five days of the monthly apportionment in February. At these two meetings mandated by the Oklahoma Constitution estimates of revenue to each available fund are based on a determination of the revenues to be received by the State under the laws in effect at the time such determination is made. These estimates are based on predictable changes in the economy as well as current law. Once certified, the amount may only be altered if the Legislature passes measures design to increase or reduce revenues. Should the Legislature enact laws that provide additional revenues or a reduction in revenues to these certified funds, the Board meets to determine the changes in revenue. Only those changes in revenue resulting from changes in law can be considered at this third meeting.

Once the Legislature convenes in February, both the Oklahoma Senate's Appropriations Committee and the Oklahoma House of Representatives' Appropriations Committee begin meeting to review each agency's budget request. This continues until late-April. In May, the Appropriations Committees determines the agency budgets for the next fiscal year and then pass appropriations bills. By the end of May to early June, the Governor evaluates all appropriation bill passed by the Legislature and makes a final decision to approve, veto or line item veto the bills. The current fiscal year ends on June 30 and the recently enacted budget takes effect on July 1.

Oklahoma Senate upper state chamber of a state of the United-States of America

The Oklahoma Senate is the upper house of the two houses of the Legislature of Oklahoma, the other being the Oklahoma House of Representatives. The total number of senators is set at 48 by the Oklahoma Constitution.

Oklahoma House of Representatives lower house of U.S. state legislature

The Oklahoma House of Representatives is the lower house of the legislature of the U.S. state of Oklahoma. Its members introduce and vote on bills and resolutions, provide legislative oversight for state agencies, and help to craft the state's budget. The upper house of the Oklahoma Legislature is the Oklahoma Senate.

A state agency, based upon funds appropriated by the Legislature and other funds available to the agency, then develops a Budget Work Program which outlines in detail planned expenditures for the ensuing fiscal year. Work programs are reviewed by OSF and the approved work program serves as a basis for the subsequent appropriations of funds. Budget Work Programs can be revised at any time during the fiscal year if justified and if the revision can be accomplished within various expenditure, full-time-equivalent employee and program expenditure limits.

Gubernatorial control

In addition to controlling the state agencies and submitting the proposed budget to the Legislature at the beginning of the budget process, the Governor also plays a significant role at the end of the budgetary process. Every appropriations bill passed by the Legislature, before it can become law, must be presented to the Governor for their approval, as is the case with all other types of bill. However, in addition to simply signing or rejecting, the Governor is given the power to veto specific items with appropriation bills and approve the remainder of the bill. Any item so vetoed is void unless both the Senate and the House of Representatives vote to override his veto by two-thirds majorities in both chambers.

Legislative control

Legislative budgetary control is maintained over the state agencies at the line item level as identified in appropriation acts. Agency budgets may be modified subject to statutory limits and subject to review by the Legislature's Joint Committee on the Budget and Program Oversight. The Director of OSF must approve all transfers between line-items up to 25 percent of the line item, unless either the Chair or Vice Chair of the Joint Committee, in writing, object to the transfer. If further transfers are deemed necessary, if the Director, Chair and Vice Chair all agree, an additional 15 percent (total 40 percent) may be transferred. All transfers are subject to review by the Joint Committee to determine if the transfer tends to effectuate or subvert the intention and objectives of the Legislature.

Funding sources

The three main sources of funding for State government operations are state appropriations, federal funds, and revolving funds. Revolving funds are generated from fees, dedicated financing, and other agency-generated funding.

Appropriations account for less than half of total state spending. In some agencies, nearly all of their funding comes from appropriations while, in many others, appropriations make up less than half the total spending of the agency (e.g. the Oklahoma Department of Public Safety). Many agencies receive no appropriations at all and they are funded entirely by federal funds (e.g. the Oklahoma Employment Security Commission) or revolving funds (e.g. the Oklahoma State Banking Department).

Major revenue categories

For FY 2011, the state government is projected to collect approximately $5 billion in tax revenue, up 8.29% versus FY2010 revenues of $4.6 billion. Primary receipt categories included: [1]

Other taxes include alcohol, motor vehicle, cigarette and tobacco taxes. Tax revenues have averaged approximately 5.8% to 6.5% of the State's gross domestic product. [2]

Major expenditure categories

For FY 2013, the state government budgeted to spend nearly $6.8 billion on a budget, up 3% versus FY2012 spending of $6.6 billion. Primary expenditure categories include:

Constitutional Reserve Fund

The Oklahoma Constitution mandates the creation of a Constitutional Reserve Fund (often referred to as the "Rainy Day Fund"). All revenues collected by the Oklahoma Tax Commission in excess of the revenue estimate made by the Oklahoma State Board of Equalization are deposited into the Fund. This process continues until the Fund reaches the Constitutional cap of 15% of the prior year's General Revenue Fund. All revenues not necessary to maintain the Constitutional cap are deposited into the General Revenue Fund.

The Constitutional Reserve Fund can only be used under the following conditions:

See also

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The Oklahoma State Budget for Fiscal Year 2011, is a spending request by Governor Brad Henry to fund government operations for July 1, 2010–June 30, 2011. Governor Henry and legislative leader approved the budget in May 2010. This was Governor Henry's eight and final budget submitted as governor.

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2014 Oklahoma state budget

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2015 Oklahoma state budget

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References

  1. FY 2010 Budget Data, Oklahoma Office of State Finance
  2. Oklahoma State Senate 2008 Report, Oklahoma Senate
  3. In 2011 the Legislature passed legislation dissolving the Human Resources and Administration Cabinet Department and transferred its duties and budget to the Finance Cabinet Department while demanding cost-savings resulting from the merger, resulting in an overall budget decrease. The decrease represents total change from the combined FY12 budgets for both Cabinet Departments.
  4. FY 2013 Budget Data, Oklahoma Office of State Finance