Budget Hole Doubles To $600 Million
Oklahoma budget hole could be twice as big as previously estimated
by Rick Green
Oklahoma’s budget hole, caused in part by an oil industry decline, has doubled to more than $600 million, meaning deeper cuts to state government may be needed, state officials said Thursday.
The state Board of Equalization is to release an official state revenue estimate Tuesday, but some state elected officials got an early preview.
“The numbers aren’t finalized, but every indication shows the budget gap likely doubling,” state Finance Secretary Preston Doerflinger said. “Ever since oil started dropping, we have known scenarios like this could occur.”
A copy of the new estimate obtained by The Oklahoman showed the shortfall at $611.3 million. That would leave legislators with 8.5 percent less to appropriate compared to the last year. The last Board of Equalization estimate, on Dec. 18, pegged the shortfall at $298.1 million.
Gov. Mary Fallin said the state’s Rainy Day Fund was an option for helping close the hole. As much as $132 million could be pulled from the fund if needed. She has also proposed tapping $300 million in unencumbered agency accounts, so-called revolving funds, and giving 6.25 percent budget cuts to most agencies.