FY 2017 budget hole projected at $1.3B
OKLAHOMA CITY — The appropriated budget hole for Fiscal Year 2017 will be $1.3 billion.
The Board of Equalization on Tuesday certified $5,851,664,555 in revenues for FY 2017 appropriations, which is $1.1 billion, or 15.9 percent, less than was appropriated for FY 2016.
The true budget hole the Legislature will face is larger than what the board certified Tuesday. By law, $150 million in FY 2016 Rainy Day Fund appropriations and $77.5 million in FY 2016 revolving fund authorizations are not factored into the FY 2016 baseline amount used by the board. With those factors considered, there will be $1.3 billion, or 19.1 percent, less to appropriate for FY 2017.
The board also projected FY 2016 General Revenue Fund collections to be $549.2 million, or 9.6 percent, below the official estimate upon which the FY 2016 appropriated state budget is based.
Oklahoma state government builds a five percent cushion into every appropriated state budget to prevent mandatory budget reductions if revenues fall below the official estimate. If revenues are projected to fall more than five percent below the estimate for the remainder of the fiscal year, a revenue failure is declared and mandatory appropriation reductions must occur to maintain a balanced budget.
OMES declared a revenue failure in December and reduced monthly general revenue allocations to agencies by three percent beginning in January. A deepened reduction to general revenue allocations will be made beginning in March. The precise amount will be determined in early March after February revenue collections are received.
The Board of Equalization packet is available on the OMES website: https://omes.ok.gov/sites/g/files/gmc316/f/boe02162016.pdf
Media Contact
JOHN ESTUS
Director of Public Affairs
(405) 521-3097 | [email protected]
