Clarification on supplanting of lottery funds
The Office of Management and Enterprise Services would like
to clear up misconceptions about the use of appropriations from the Lottery
Trust Fund.
- At the time of the final fiscal year 2017 budget
agreement, agencies appropriated FY 2016 general revenue had been cut by 7
percent due to revenue failure.
- After final reconciliation of FY 2016 general
revenue collections, agencies received 2.6 percent of FY 2016 general revenue
back in September.
- There was no way to anticipate agencies would
receive this revenue at the time of the FY 2017 budget agreement and, therefore,
no way to accurately anticipate the exact FY 2016 appropriations base.
- In February, when OMES budget analysts
calculated the numbers before the State Board of Equalization meeting, a 0.3
percent gap in education funding was discovered as a result of the higher FY 2016
base than was originally considered as part of the FY 2017 budget agreement.
Lottery estimates
fell by 20.5 percent in FY 2017
- FY 2016 final appropriations from the Lottery
Trust Fund: $65,368,704.
- FY 2017 estimated appropriations from Lottery
Trust Fund: $51,995,017.
- Difference: -$13,373,687 (-20.5 percent).
All authorized lottery funds were fully appropriated
- Education received its full allotment of lottery
funds. No additional funds were removed from the lottery funds outside the
statutory mechanism. No lottery funds went to the General Revenue Fund. Nothing
illegal was appropriated from lottery funds.
In February, OMES
budget analysts discovered 0.3 percent gap in overall education funding while preparing
for the State Board of Equalization meeting.
- Total appropriations for FY 2017 were reduced by
0.5 percent when compared to FY 2016 allotments after adjustments for returned
revenue after the statewide revenue failure.
- Education funding, other than lottery funding,
fell by 0.8 percent in FY 2017 when compared to FY 2016 allotments.
- OMES presented the information to the Board of
Equalization on Feb. 21.
Article X, Section 41 of the Oklahoma Constitution and Title 3A, Section 713 of
Oklahoma Statute requires the board to determine if appropriations form the
Oklahoma Lottery Trust Fund were used to enhance or supplant education funding.
- For the first time, the board made a finding of
supplanting in February since there were no other funds to offset the
additional education reductions. The Education Lottery Trust Fund was
determined to have replaced or “supplanted” the 0.3 percent, or $10,144,171.
- This
Board of Equalization process is a checks-and-balances mechanism to make sure situations
like this can be caught and addressed. The process worked.
- The Legislature is now constitutionally bound to
appropriate the $10 million to the Lottery Trust Fund so it can be dispersed
and used as statutorily required.
There is nothing illegal, no money was lost and education
got its full allotment of lottery funds. OMES discovered the issue in February
and reported as required to the Board of Equalization, which then carried out
its constitutional duty. It’s up to the Legislature to next do as is
constitutionally required.
“There’s nothing illegal about what happened.
The board’s finding is a constitutional and statutory requirement to point out
the issue,” said Secretary of Finance, Administration and Information
Technology Preston L. Doerflinger. “As a result, the Legislature is
constitutionally bound to take up the process from here and ensure the $10
million gets appropriated to the Lottery Trust Fund. This needs to be addressed
before any appropriations can be made for fiscal year 2018.”
Media Contact
MICHAEL BAKER
Director of Public Affairs
(405) 522-4265 | michael.baker@omes.ok.gov
 About the Office of Management and Enterprise Services
The Office of Management and Enterprise Services
provides financial, property, purchasing, human resources and
information technology services to all state agencies, and assists the
Governor’s Office on budgetary policy matters. Our mission: Supporting our partners through unified business services. For more information, visit OMES.OK.gov.
|
 
|
