Portion of agency funds cut in FY 2016 being returned


For Immediate Release

Finance, Administration
and Information Technology


Sept. 13, 2016

Portion of agency funds cut in FY 2016 being returned

Total of $152.1M being sent back to agencies

OKLAHOMA CITY — The state on Tuesday will return to agencies a portion of funds cut from agencies during last fiscal year’s revenue failure.

In order to maintain the state’s constitutional balanced budget requirement, state law requires across-the-board reductions to most agency appropriations when revenue collections are projected to fall more than five percent below the estimate for the remainder of a fiscal year.

Amid slumping oil prices and corresponding state revenue declines, applicable Fiscal Year 2016 agency allocations were cut across the board by 7 percent, or $382 million, via reductions in January and March.

The money being returned Tuesday became available when final reconciliation of FY 2016 revenues confirmed the necessary midyear reduction amount was 4.4 percent rather than 7 percent. The state will return a total of $152.1 million to agencies, with $140.8 million in general revenue going to 62 agencies and $11.4 million in other revenues going to the Oklahoma Department of Transportation.

“This action closes out the 2016 fiscal year and gives agencies available funds to help with budget challenges,” said Governor Mary Fallin. “Although I preferred that legislators would have returned in special session to send more of this money to agencies with the most pressing needs, such as the education, public safety, health, mental health and corrections departments, I’m glad this will provide some relief. Those agencies are among the ones receiving the largest share of this money to either restore services or stave off additional cuts.”

Agencies can use the funds for the same purpose for which the Legislature appropriated the funds in the 2015 legislative session. If an agency wants to use the funds for another purpose, it must follow budget revision procedures outlined in statute.

“The return of these funds, while still a net cut, is a rare positive in the historically challenging budget cycle the state is enduring. Agencies are getting about $2.60 back for every $7 that was cut midyear, so the net result is still a cut, but a smaller cut than initially received,” said OMES Director Preston L. Doerflinger. “Opting for a deeper cut was the right call because it allowed funds to be returned instead of cutting funds again and again, which would have happened if the cut was not deep enough. Revenue failures are unpleasant no matter how you slice it, but if there is any silver lining to be found, this is it.”

A list of the funds returned to agencies can be viewed by clicking here.

Media Contact

Director of Public Affairs
(405) 521-3097 | john.estus@omes.ok.gov

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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.