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
JOHN ESTUS
Director of Public Affairs
(405) 521-3097 | john.estus@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.
|
 
|
