FY 17 budget hole projected to grow to $1.3B
Board of Equalization meets Tuesday to update revenue certification
OKLAHOMA CITY — The appropriated budget hole for
Fiscal Year 2017 is expected to grow to $1.3 billion next week.
Preliminary, unverified estimates
show the Board of Equalization on Tuesday will consider certifying $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 board in December projected a budget hole of $900.8 million, or 12.9 percent.
The true budget
hole the Legislature will face is larger than what the board will consider
Tuesday. By law, Rainy Day Fund appropriations and certain revolving fund
authorizations are not factored into the board’s estimates. With those factors
considered, there will be $1.3 billion, or 19.1 percent, less to appropriate for FY 2017.
Between the
board’s initial FY 2017 estimate Dec. 21 and Wednesday, oil prices fell 21
percent from $34.74 per barrel to $27.45 per barrel, Oklahoma lost at least 500
more energy sector jobs and major energy firms announced plans for further
employment reductions in the coming months. Since June 2014, Oklahoma has lost
at least 12,500 energy sector jobs as oil prices have fallen 75 percent.
“It’s been more tough sledding since December, so the
hole grew as expected. The untenable cuts to core services a hole like
this could cause are avoidable when bold actions like the governor proposed are
taken. There are responsible ways out of this when we show courage and resolve to
do the hard work,” said Secretary of Finance, Administration and Information
Technology Preston L. Doerflinger.
The Board of Equalization meets at 10 a.m. Feb. 16 in the
Governor’s Large Conference Room at the State Capitol.
Media Contact
JOHN ESTUS
Director of Public Affairs
(405) 521-3097 | john.estus@omes.ok.gov
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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.
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