First FY 16 revenue estimate approved
Trigger met for personal income tax cut
OKLAHOMA CITY — Revenues available
for certification for the next appropriated state budget are trending flat but remain
sufficient to trigger a personal income tax reduction in tax year 2016,
according to projections approved Thursday.
The seven-member Board of Equalization on Thursday certified revenues
Gov. Mary Fallin can use to build her FY 2016 executive budget proposal. Under
state law, the governor must use the figure certified Thursday for the
executive budget that will presented to the Legislature when it convenes Feb. 2.
The board also took action required under legislation enacted in April
that will cause the state’s top personal income tax rate to drop from 5.25
percent to 5 percent beginning Jan. 1, 2016. The legislation authorized the income
tax reduction if the FY 16 General Revenue Fund (GRF) estimate made by the
board Thursday was equal to or greater than the FY 14 GRF estimate made by the
board in February 2013. The FY 16 GRF estimate the board reviewed Thursday is $6,004,349,345,
which is $60.7 million more than the FY 14 GRF estimate of $5,943,662,805 made
in February 2013.
“Oklahomans are getting relief at the gas pump this year, and next
year they’ll be getting more relief through a lower personal income tax,” said
Secretary of Finance, Administration and Information Technology Preston L.
Doerflinger.
The board on Thursday approved an estimate of $6,914,776,463 in
available revenue for the FY 2016 executive budget proposal. That amount is $43.3
million, or 0.6 percent, less than what was approved last December for the
governor’s FY 15 executive budget, and $298.1 million, or 4.1 percent, less
than the legislatively-approved FY 15 appropriated state budget of $7,212,855,361.
“There isn’t more money, but there is adequate money. We have a
big enough pie and our job now is slicing it right to meet the needs of the day
with the funds available,” Doerflinger said.
Despite the $298.1 million differential between FY 15 total
appropriations and the preliminary FY 16 revenue estimate, revenues the board can
certify as available for appropriations remain mostly flat. The
estimate the board approved Thursday of revenue available for the FY 16
executive budget proposal is $25.6 million, or 0.3 percent, less than the $6,940,352,735 the board approved in February
2014 as available for FY 15 appropriations. However, the enacted FY 15 budget appropriated more than was certified by the
board due to its use of $291.7 million in additional funds from various
government accounts.
“As is the case most every session, revenues certified by the
board do not represent all revenues available for appropriation,” Doerflinger
said. “We were well-intentioned in using additional resources to meet needs
last session, but next session we’ll have to rely more on cuts to most areas if
we’re going to put additional resources anywhere else. We’ll have to prioritize
and make tough choices.”
The board will meet again in late February to make a second
estimate that will be used in negotiations between the governor and legislators
to determine FY 16 appropriations levels for state agencies.
“As always, February’s certification matters way more than this December
estimate,” Doerflinger said. “If oil prices continue sliding and the energy
sector shrinks, there may be less revenue in February than there is today – we’ll
see. In any event, the challenge is not insurmountable and we can and will
manage it.”
Doerflinger is director of the Office of Management and Enterprise
Services, which works with the Governor's Office to build the annual executive
budget. OMES, in conjunction with the Oklahoma Tax Commission, prepares the revenue
estimates that are presented to the Board of Equalization.
The packet the board reviewed Thursday can be accessed on the OMES website: http://www.ok.gov/OSF/documents/boe12182014.pdf
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: To lead, support, and serve. For more information, visit OMES.OK.gov.
|
