Fallin Looks To ‘Revolving Funds’ To Close Budget Gap
Fallin points to ‘revolving funds’ to help close Oklahoma’s budget hole
by Rick Green
Millions of dollars in so-called “revolving funds” are sitting unused and can help pay for state priorities even as revenue drops sharply, Gov. Mary Fallin said Tuesday in a preview of the message she will deliver to legislators at the start of their yearly session.
She said the state has $1.7 billion in revolving funds, or money held in accounts by individual agencies. About half of that money is assigned to various uses, but $900 million is unencumbered, or potentially available for use elsewhere in state government.
“In other words, it’s just sitting there because agencies had carry-over funds or they had fees that are just sitting in those funds,” Fallin said. “Are agencies keeping way too much money when it could be spent on important priorities for the state?”
This money should help with a $300 million budget shortfall and assist her as she tries to improve public health, reduce high incarceration rates and lift sagging academic performance in public schools, Fallin said in a meeting with The Oklahoman’s editorial board. There are concerns the shortfall will grow even more as drops in oil prices reduce tax revenue from energy companies.