Oklahoma state budget and finances

in Oklahoma

Fiscal Budgets Oklahoma state budget and finances Tax policy in Oklahoma Finance Financial regulation in Oklahoma Pensions Public pensions in Oklahoma Pension health in Oklahoma Civil liberties Affirmative action in Oklahoma Campaign finance requirements in Oklahoma Campaign finance requirements for Oklahoma ballot measures Nonprofit regulation in Oklahoma Education Charter schools in Oklahoma Higher education in Oklahoma Public education in Oklahoma School choice in Oklahoma Elections Ballot access Ballot access requirements for political candidates in Oklahoma Ballot access requirements for political parties in Oklahoma Political parties in Oklahoma Ballot access requirements for presidential candidates in Oklahoma Redistricting in Oklahoma Voting in Oklahoma Energy and Environment Energy policy in Oklahoma Fracking in Oklahoma Oil and gas extraction on federal land in Oklahoma Endangered species in Oklahoma Environmental policy in Oklahoma Healthcare Healthcare policy in Oklahoma Medicaid spending in Oklahoma Effect of the Affordable Care Act in Oklahoma Immigration Immigration in Oklahoma

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Oklahoma budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: AA+ (as of 2017)

Current governor: Kevin Stitt

Financial figures

Total spending (state and federal funds): $22,719,000,000 (estimated 2016)

Per capita spending: $5,790 (estimated 2016)

Total state tax collections: $8,491,187,000 (2016)

Per capita tax collections: $2,164 (2016)

State debt: $8,899,021,000 (2014)

Per capita state debt: $2,277 (2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Oklahoma

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can differ from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis. This article, which is updated on an annual basis, was last updated in June 2017. It contains information from several sources; consequently, the currency of the information can vary from source to source.

In Oklahoma, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."^[2]
• Federal funds are "funds received directly from the federal government."^[2]
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Revenues

2016 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[3]

The table below lists 2016 tax collections by source as percentages of total collections. About 44.5 percent of Oklahoma's total state tax collections came from sales taxes and gross receipts.^[3]

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2014, federal aid to the states accounted for roughly 31 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.2 billion in federal aid in 2014, accounting for about 41 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2014, or just 17 percent of the state's general revenues, the lowest percentage in the nation.^[4]

The table below notes what share of Oklahoma’s general revenues came from the federal government in 2014. That year, Oklahoma received approximately $7.3 billion in federal aid, 34.0 percent of the state's general revenues. Taking into consideration the state's 2014 population, this came out to about $1,880 in federal aid per capita. Figures from surrounding states are provided for additional context.^[4]

Spending

Estimated 2016 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2016 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.^[5]

The total estimated government spending in Oklahoma in fiscal year 2016 was $22.7 billion.

Spending by function

See also: State spending by function as a percent of total expenditures

State spending in Oklahoma can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2015 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.^[5]

In fiscal year 2015, education accounted for 39.9 percent of Oklahoma's total expenditures.

Spending trends

The table below details the spending trends in Oklahoma in previous years. Figures are rendered as percentages, indicating the share of the total budget spent per category.^[1][6][7]

State debt

See also: Oklahoma state debt

State debt refers to any debt owned by a state government. Debt may include any financial obligations a state has that have not been paid, such as bonds issued by state governments, money borrowed by a state government that has not been repaid, or post-retirement benefits promised to state employees. According to the U.S. Census Bureau, Oklahoma had a debt of $8,899,021,000 in fiscal year 2015. The state debt per capita was $2,277. This ranked Oklahoma 29th among the states in debt and 37th in per capita debt. The total state debt owned by the 50 states was $1.15 trillion with a per capita debt of $3,582.^[8]

Economic indicators

See also: Economic indicators by state

Oklahoma's GDP increased by 2.8 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[9][10][11]

In 2013, most Oklahoma residents earned incomes above 200 percent of the federal poverty level, 62 percent. The state had a median annual household income of $47,282. Oklahoma's unemployment rate in September 2014 was 4.7 percent, lowest among its neighboring states.^{[12][13][14][15]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:^[16]

1. Budget instructions are sent to state agencies in August.
2. State agencies submit their budget requests to the governor by October 1.
3. Agency hearings are held from November through January.
4. The governor submits his or her proposed budget to the state legislature in February.
5. The legislature typically adopts a budget in May. A simple majority is required to pass a budget. The new fiscal year begins July 1.

Oklahoma is one of 44 states in which the governor has line item veto authority.^[16][17]

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature is required to pass a balanced budget.^[16]

Agencies, offices, and committees

The following standing committees in the Oklahoma State Legislature deal with budget and finance matters:

1. Appropriations and Budget Committee, Oklahoma House of Representatives
2. Appropriations Committee, Oklahoma State Senate
3. Finance Committee, Oklahoma State Senate
4. Joint Appropriations and Budget Committee, Oklahoma State Legislature

Studies and reports

March 2016 revenue report

According to a March 2016 report on Oklahoma’s state finances, the state’s general revenue fund was 18 percent below its estimate for February 2016, which was the greatest underestimation of the state’s funds for the fiscal year up to that point. The general fund supplies funding for all of the state’s major operations. As a result of this shortfall, state officials implemented a 7 percent cut across the board to all state agencies. The Oklahoma Senate passed legislation that would use $79 million from the state’s rainy day fund to offset these cuts for public education and corrections. Overall, total general fund collections for the state have been nearly 9 percent lower than estimations for the first eight months of fiscal year 2016. Oklahoma Senate President Pro Tempore Brian Bingman (R) announced the plan to appropriate the state’s rainy day funds. He praised the state’s senate for quickly addressing the shortfall with this legislation, and also stated that the legislature had previously avoided making deep education cuts. In regards to future efforts to reduce similar budget shortfalls, Oklahoma’s state finance secretary Preston Doerflinger expressed a desire for the state to add “stable, recurring revenues to the next budget,” which was scheduled to begin on July 1, 2017.^[18][19][20]

Public Interest Research Group 2016 report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2016. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Oklahoma received a grade of A- and a numerical score of 90.5, indicating that Oklahoma was "Leading" in terms of transparency regarding state spending.^[21]

Budget and finance ballot measures

Voting on state and local government budgets, spending, and finance
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
Local City budgets County budgets Spending limits School budgets

See also: State and local government budgets, spending and finance on the ballot and List of Oklahoma ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Oklahoma.

1. Oklahoma Investment of Permanent School Funds, State Question 362 (July 1954)
2. Oklahoma Stop Overspending Initiative (2006)
3. Oklahoma Rainy Day Fund, State Question 757 (2010)
4. Oklahoma Contracts for College and University Presidents, State Question 686 (2000)
5. Oklahoma Legislative Expenditures, State Question 754 (2010)
6. Oklahoma State Funds for Common Schools, State Question 744 (2010)
7. Oklahoma Municipal Indebtedness, State Question 85 (August 1916)
8. Oklahoma Depositors' Guaranty Fund, State Question 125 (October 1923)
9. Oklahoma Public Welfare, State Question 220 (December 1935)
10. Oklahoma Balanced Budget, State Question 298 (March 1941)
11. Oklahoma General Revenue Fund, State Question 313 (July 1944)
12. Oklahoma Constructing and Repairing State Buildings, State Question 348 (September 1949)
13. Oklahoma Veterans Administration, State Question 369 (July 1956)
14. Oklahoma Common School Funds, State Question 370 (July 1956)
15. Oklahoma Water Supply and Water Facilities, State Question 373 (July 1956)
16. Oklahoma Capital Improvements for Higher Education, State Question 393 (July 1960)
17. Oklahoma Industrial Finance Authority, State Question 391 (July 1960)
18. Oklahoma Medical Center, State Question 411 (December 1963)
19. Oklahoma State Aid to School Districts, State Question 422 (1964)
20. Oklahoma School Districts, State Question 423 (1964)
21. Oklahoma Highway Revenue Notes, State Question 427 (April 1965)
22. Oklahoma Estimate of Revenues, State Question 453 (April 1968)
23. Oklahoma Investment of School Funds, State Question 442 (August 1968)
24. Oklahoma Estimate of Revenues, State Question 461 (August 1968)
25. Oklahoma Interest Rates, State Question 469 (1970)
26. Oklahoma School and Educational Funds, State Question 481 (December 1971)
27. Oklahoma School Funds Investment, State Question 490 (August 1972)
28. Oklahoma Estimates of Revenue, State Question 506 (July 1975)
29. Oklahoma School District Indebtedness, State Question 548 (1980)
30. Oklahoma Preservation Trust Fund, State Question 559 (August 1982)
31. Oklahoma Water Resource Development, State Question 558 (1982)
32. Oklahoma School Equalization Fund, State Question 578 (August 1984)
33. Oklahoma Water Resources and Sewage Treatment, State Question 581 (August 1984)
34. Oklahoma School District Indebtedness, State Question 572 (1984)
35. Oklahoma Balanced Budget, State Question 587 (April 1985)
36. Oklahoma Investment of School Funds, State Question 599 (August 1986)
37. Oklahoma Industrial Finance Authority, State Question 600 (August 1986)
38. Oklahoma Distribution of Funds to Schools, State Question 635 (June 1990)
39. Oklahoma Use of Educational Funds, State Question 665 (1994)
40. Oklahoma School Lands, State Question 684 (2000)
41. Oklahoma Tobacco Settlement Endowment Trust Fund, State Question 692 (2000)
42. Oklahoma Tobacco Settlement Endowment Trust Fund Expenditures, State Question 701 (2002)
43. Oklahoma Use of School Building Funds, State Question 704 (2002)
44. Oklahoma Rainy Day Fund, State Question 708 (2004)
45. Oklahoma Rainy Day Fund, State Question 725 (2006)
46. Oklahoma State Question 801, Allow Certain Voter-Approved Property Taxes to Fund School District Operations Amendment (2018)
47. Oklahoma Public Infrastructure Districts Amendment (2024)

Budget and finance legislation

The following is a list of recent budget and finance bills that have been introduced in or passed by the Oklahoma state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Recent news

The link below is to the most recent stories in a Google news search for the terms Oklahoma budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

• Historical Oklahoma budget and finance information
• Tax policy in Oklahoma
• Oklahoma government sector lobbying
• Oklahoma public pensions
• Governor of Oklahoma
• Oklahoma State Senate
• Oklahoma House of Representatives
• Oklahoma State Legislature

Footnotes

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