2010 Legislative and Budget Process Overview

January 2010

Overview

I. Composition of the Legislature

II. Executive Branch

III. Legislative Session

IV. Policy Path

V. Budget Process

VI. Legislative Resources

OKLAHOMA LEGISLATURE

House of Representativeso 101 Members

o Two-Year Elected Terms

o Republicans gained control of House in 2002 for first time since 1920

o Current Breakdown: 62 Republicans / 39 Democrats

o 18 Newly Elected Representatives (2008-09)

o 13 Republicans, 5 Democrats

o Presided over Speaker Chris Benge

State Senateo 48 Members

o Four-Year Staggered Elected Terms

o Republicans gained control of Senate in 2008 for first time ever

o Current Breakdown: 26 Republicans / 22 Democrats

o 6 Newly Elected Senators (2008)

o 5 Republicans, 1 Democrat

o Presided over by President Pro-Tempore Glenn Coffee

o Lt. Governor Jari Askins is the President of the Senate

Legislative Salary

Members - $38,400 (base)

President Pro-Tempore and Speaker - $17,932 (additional)

Other Top Leadership - $12,364 (additional)

All Members Receive Travel and Per Diem during Legislative Session

Terms of Office Prohibition on holding multiple offices

A twelve-year term limit (beginning 1992)

Years in legislative office do not need not to be consecutive

Years of service in both the Senate and the House of

Representatives are added together and included in

determining the total number of legislative years in office

In the event of a vacancy in the Legislature, the Governor

issues writs of election to fill the vacancies

OKLAHOMA LEGISLATURE

House Majority Leadership

OKLAHOMA LEGISLATURE

SPEAKER

Chris Benge (R- Tulsa)

SPEAKER PRO TEMPORE

Kris Steele (R-Shawnee)

MAJORITY FLOOR LEADER

Tad Jones (R-Claremore)

FIRST ASSISTANT MAJORITY FLOOR LEADER

• Ron Peters, R- Tulsa

ASSISTANT MAJORITY FLOOR LEADERS

• Lisa J. Billy (R-Purcell)

• George Faught (R-Muskogee)

• Dennis Johnson (R-Duncan)

• Charles Key (R-Oklahoma City)

• Todd Thomsen (R-Ada)

• Harold Wright (R-Weatherford)

CAUCUS CHAIR – John Wright (R-Broken

Arrow)

CAUCUS VICE-CHAIR – Skye McNeil (R-

Bristow)

MAJORITY WHIP

• Mike Jackson (R-Enid)

DEPUTY MAJORITY WHIPS

• Marian Cooksey (R-Edmond)

• Fred Jordan (R-Jenks)

• Steve Martin (R-Bartlesville)

• Randy McDaniel (R-Oklahoma City)

• Leslie Osborn (R-Tuttle)

• Mike Sanders (R-Kingfisher)

• Colby Schwartz (R-Yukon)

• Mike Thompson (R- Oklahoma City)

• Weldon Watson (R- Tulsa)

House Minority Leadership

OKLAHOMA LEGISLATURE

MINORITY LEADER

Danny Morgan (D-Prague)

MINORITY FLOOR LEADER

Mike Brown (D-Tahlequah)

DEPUTY FLOOR LEADERS

• Wes Hilliard (D-Sulphur)

• Jerry McPeak (D-Warner)

MINORITY WHIP

• Ben Sherrer (D-Chouteau)

CAUCUS CHAIR

• Chuck Hoskins (D-Vinita)

CAUCUS VICE-CHAIR

• Ryan Kiesel (D- Seminole)

ASSISTANT FLOOR LEADERS

• Wallace Collins (D-Norman)

• Larry Glenn (D-Miami)

• Jeannie McDaniel (D-Tulsa)

• Wade Rousselot (D-Wagoner)

• Jabar Shumate (D-Tulsa)

OKLAHOMA LEGISLATURE

PRESIDENT PRO-TEMPORE

Glenn Coffee (R-Oklahoma City)

Senate Majority Leadership

MAJORITY FLOOR LEADER

Todd Lamb (R-Edmond)

OKLAHOMA LEGISLATURE

ASSISTANT MAJORITY FLOOR LEADERS

• Brian Bingman (R-Sapulpa)

• Clark Jolley (R –Edmond)

• Mike Mazzei (R –Bixby)

MAJORITY WHIPS

• Cliff Branan (R –Oklahoma City)

• Mike Schultz (R –Altus)

• Anthony Sykes (R –Moore)

CAUCUS CHAIR: John Ford (R – Bartlesville)

SENATE POWER-SHARING AGREEMENTOKLAHOMA LEGISLATURE

MINORITY LEADER

Charlie Laster (D- Shawnee)

ASSISTANT FLOOR LEADERS

• Tom Adelson (D-Tulsa)

• Sean Burrage (D-Claremore)

• Jay Paul Gumm (D-Durant)

• Tom Ivester (D-Sayre)

• Richard Lerblance (D-Hartshorne)

MINORITY WHIPS

• Roger Ballenger (D-Okmulgee)

• Debbe Leftwich (D-Oklahoma City)

• Susan Paddack (D-Ada)

• Charles Wyrick (D-Fairland)

CAUCUS CHAIR: Kenneth Corn (D-Poteau)

CAUCUS VICE-CHAIR: Judy Eason McIntyre (D-Tulsa)

Senate Minority Leadership

EXECUTIVE BRANCHGovernor as Chief Executive

Elected four-year term, two-term limit

Powers and Duties:

The Governor is the head of state and chief executive

for the State of Oklahoma

Commander in Chief of the Oklahoma National Guard

Yearly “State of the State” address to the Legislature

(delivered first day of session)

Governor Brad Henry (D-Shawnee)

Elected Nov 2002, re-elected Nov.

2006

Former State Senator

EXECUTIVE BRANCH

Executive Branch Officials (Elected)

Lt. Governor,

Jari Askins

Attorney General,

Drew Edmondson

State Treasurer,

Scott Meacham

Insurance

Commissioner,

Kim Holland

State Auditor &

Inspector,

Steve Burrage

Labor

Commissioner,

Lloyd Fields

Superintendent of

Public Instruction,

Sandy Garrett

Corporation

Commissioners,

Bob Anthony

Jeff Cloud

Dana Murphy

EXECUTIVE BRANCH

Governor Henry‟s Cabinet (Appointed) Adjutant General & Secretary of the Military: Major General Myles Deering

Secretary of Agriculture: Terry Peach

Secretary of Commerce and Tourism: Natalie Shirley

Secretary of Energy: Bobby Wegener

Secretary of Environment: J.D. Strong

Secretary of Finance and Revenue: Scott Meacham

Secretary of Health: Terri White

Secretary of Human Resources and Administration: Oscar B. Jackson

Secretary of Human Services: Howard Hendrick

Secretary of Safety and Security: Kevin Ward

Secretary of State: M. Susan Savage

Secretary of Transportation: Phil Tomlinson

Secretary of Science and Technology: Dr. Joseph W. Alexander

Secretary of Veterans Affairs: Norman Lamb

http://www.gov.ok.gov/cabinet.php

Regular Session

Legislative Sessions begin at noon on the first Monday in February and must adjourn by no later than 5:00 p.m. on the last Friday in May.

However, in odd number years (years following an election) the Legislature must meet on the Tuesday after the first Monday in January for the sole purpose of determining the outcome of the statewide elections.

The current 2010 session is designated as the Second Session of the 52nd Legislature.

LEGISLATIVE SESSION

Special SessionSpecial sessions can be convened as follows:

Issued jointly by two-thirds of the members of the

Senate and two-thirds of the members of the House of

Representatives, OR

Call of the Governor

Special sessions can run concurrent with regular sessions

POLICY PATH

Preparation All bills must be requested and introduced by a legislator

Bill Request deadline –December 11, 2009

Bill Introduction deadline – January 14, 2010

Appropriation bills, and some substantive bills, are drafted

as “shell bills – specifics are initially left blank and filled

in later

Governor

Legislator‟s interest

Interim Study

Where Do Bills Come From?

Request of a government agency or

local government

Request of an interest group

Request of a constituent

National model legislation

(e.g. NCSL, ALEC)

POLICY PATHVolume of Legislation

1,082 Senate bills and 28 Joint Resolutions introduced in 2010

1,240 Senate bills introduced in 2009; 250 passed

860 bills and 42 joint resolutions from 2009 remain alive

1,153 House bills and 31Joint Resolutions

introduced in 2010

1,269 House bills introduced in 2009; 230 passed

901 bills and 48 joint resolutions from 2009

remain alive

Legislators may introduce an unlimited number of bills For non-leadership House members, only eight

bills per session may be assigned to committees for consideration (extra bills sent to Rules Committee)

Governor Brad Henry

POLICY PATH

POLICY PATH

First Reading Bill introduced by legislator

Bill “read” into the House or Senate Journal

Procedural motion – no votes required

Second Reading Preliminary action for the referral of bills to committee for

discussion and debate

Occurs the day following first reading

By order of the House Speaker or Senate Pro-Tempore, the

bill can be placed directly on the calendar for the

consideration of the legislative body (the next legislative

day)

POLICY PATHCommittee Assignment

Bill assignments are determined by legislative leadership

Floor Leaders in consultation with the President Pro-Tem/Speaker

Committee Structure

Each committee and subcommittee has a Chair and Vice-Chair

appointed by leadership

Chairs are all members of the majority party

Some Vice-Chairs in both chambers are members of the minority

Senate: 14 full standing committees and 5 subcommittees

(appropriations)

House: 17 full standing committees and 7 subcommittees

Typically, bills sent to the Appropriations Committee are those that will

have implementation costs and impact the state budget

Bills referred to the Appropriations Committee are further assigned to

subcommittees for discussion and vote

Senate Committee Structure and Chairs

STANDING COMMITTEES

APPROPRIATIONS

Appropriations & Budget Committee• Sen. Mike Johnson (R-Kingfisher), Chair• Sen. David Myers (R-Ponca City), Vice-Chair

Education Subcommittee

• Sen. James Halligan (R-Stillwater), Chair• Sen. John Ford (R-Bartlesville), Vice-Chair

Health & Human Services Subcommittee

• Sen. Brian Crain (R-Tulsa), Chair• Sen. Patrick Anderson (R-End) – Vice-Chair

Gen Govt & Transportation Subcommittee

• Sen. Randy Brogdon (R-Owasso), Chair• Sen. Brian Bingman (R-Sapulpa), Vice-Chair

Public Safety and Judiciary Subcommittee

• Sen. Anthony Sykes (R-Moore), Chair• Sen. Jim Reynolds (R-Oklahoma City), Co-Chair

Natural Res. & Reg. Svcs. Subcommittee

• Sen. David Myers (R-Ponca City), Chair• Sen. Ron Justice (R-Chickasha), Vice-Chair

COMMITTEE CHAIR VICE-CHAIR

Agriculture and Rural Development Sen. Ron Justice (R-Chickasha) Sen. Mike Schulz (R-Altus)

Business and Labor Sen. Harry Coates (R-Seminole) Sen. Dan Newberry (R-Tulsa)

Education Sen. John Ford (R-Bartlesville) Sen. Clark Jolley (R-Edmond)

Energy & Environment Sen. Brian Bingman (R-Sapulpa) Sen. Randy Brogdon (R-Owasso)

Finance Sen. Mike Mazzei (R-Tulsa) Sen. Gary Stanislawski (R-Tulsa)

General Government Sen. Cliff Aldridge (R-Midwest City) Sen. Roger Ballenger (D-Okmulgee)

Health and Human Resources Sen. Clark Jolley (R-Edmond) Sen. Sean Burrage (D-Claremore)

Judiciary Sen. Patrick Anderson (R-Enid) Sen. Susan Paddack (D-Ada)

Public Safety & Homeland Security Sen. Don Barrington (R-Lawton) Sen. Steve Russell (R-Oklahoma City)

Retirement & Insurance Sen. Bill Brown (R-Broken Arrow) Sen. Cliff Aldridge (R-Midwest City)

Rules Sen. Jonathan Nichols (R-Norman) Sen. Earl Garrison (D-Muskogee)

Tourism & Wildlife Sen. Mike Schulz (R-Altus) Sen. Jerry Ellis (D-Valliant)

Transportation Sen. Cliff Branan (R – Oklahoma City) Sen. Bryce Marlatt (R- Woodward)

Veterans & Military Affairs Sen. Jim Reynolds (R – Oklahoma City) Sen. Don Barrington (R – Lawton)

House Committee Structure and Chairs

STANDING COMMITTEES

APPROPRIATIONS

Appropriations & Budget Committee• Rep. Ken Miller (R-Edmond), Chair

• Rep. Scott Martin (R-Norman), Vice-Chair

Education Subcommittee

• Rep. Lee Denney (R-Cushing), Chair

• Rep. Earl Sears (R-Bartlesville), Vice-Chair

Gen Govt & Transportation Subcommittee

• Rep. Guy Liebmann (R-Ok. City), Chair

• Rep. Colby Schwartz (R-Yukon), Vice-Chair

Health Subcommittee

• Rep. Doug Cox (R-Grove), Chair

•Rep. Paul Wessellhoft (R-Moore), Vice-Chair

Human Services Subcommittee

• Rep. Ron Peters (R-Tulsa), Chair

• Rep. Marion Cooksey (R-Edmond), Vice-Chair

Judiciary and Public Safety Subcommittee

• Rep. Randy Terrill (R-Moore), Chair

• Rep. Mark McCullough (R-Sapulpa), Vice-Chair

Natural Resources & Reg. Affairs Subcttee

• Rep. Dale DeWitt (R-Braman), Chair

• Rep. Skye McNeil (R-Bristow), Vice-Chair

Revenue & Taxation Subcommittee

• Rep. Jeff Hickman (R-Dacoma), Chair

• Rep. Neil Brannon (D-Arkoma), Vice-Chair

COMMITTEE CHAIR VICE-CHAIRAdministrative Rules and Agency Oversight Rep. John Wright (R–Broken Arrow) Rep. George Faught (R-Muskogee)

Agriculture and Rural Development Rep. Don Armes (R-Faxon) Rep. John Enns (R-Enid)

Common Education Rep. Ann Coody (R-Lawton) Rep. Sally Kern (R-Oklahoma City)

Economic Development & Financial Services Rep. Dan Sullivan (R-Tulsa) Rep. Randy McDaniel (R-Oklahoma City)

Energy and Utility Regulation Rep. Mike Thompson (R-Oklahoma City) Rep. Weldon Watson (R-Tulsa)

General Government Rep. Lisa J. Billy (R-Purcell) Rep. Dennis Johnson (R-Duncan)

Government Modernization Rep. Jason Murphy (R-Guthrie) Rep. David Derby (R-Owasso)

Higher Education and Career Technology Rep. Todd Thomsen (R-Ada) Rep. Bill Nations (D-Norman)

Human Services Rep. Pam Peterson (R-Tulsa) Rep. Wade Rousselot (D-Wagoner)

International Relations & Tourism Rep. Shane Jett (R-Tecumseh) Rep. Purcy Walker (D-Elk City)

Judiciary Rep. Rex Duncan (R-Sand Springs) Rep. Fred Jordan (R-Jenks)

Public Health & Social Services Rep. John Trebilcock (R-Broken Arrow) Rep. David Derby (R-Owasso)

Public Safety & Homeland Security Rep. Sue Tibbs (R-Tulsa) Rep. Steve Martin (R-Bartlesville)

Rules Rep. Gus Blackwell (R-Goodwell) Rep. Mike Jackson (R-Enid)

Transportation Rep. T.W. Shannon (R-Lawton) Rep. Charlie Joyner (R-Midwest City)

Veterans & Military Affairs Rep. Gary Banz (R-Midwest City) Rep. John Carey (D-Durant)

Wildlife Rep. Phil Richardson (R-Minco) Rep. R.C. Pruett (R-Antlers)

POLICY PATH

Committee Hearing Bills are considered by committees only if put on the

agenda by the chair.

Committee hearings may offer opportunities for supporters

and opponents of legislation to have their voices heard

about the issue.

Bills can be changed through amendments. A substantial

change to a bill is rewritten as a “Committee Substitute.”

Bills are reported from committee with recommendations

If the bill is not heard or it fails to receive a simple majority vote, it

is said to “die in committee” (or “report progress”).

If the bill received a “do pass” motion and secured a majority vote

of the committee members, the bill is printed and placed on the

general order for consideration by the full body of the chamber.

Bills assigned to the Appropriations Committee must be

approved by the subcommittee and the full committee

before advancing.

POLICY PATHThird Reading

From committee, bills are placed on General Order and then

brought up for a third reading for the full body of the

chamber.

At this stage, bills are subject to further discussion, debate,

and amendments. Substantial changes to a bill are written

as a “Floor Substitute.” House rules require that Floor

Substitutes be submitted 48 hours prior to a bill‟s hearing.

All bills advance if they receive a simple majority of votes.

Emergency Clauses attached to bills and measures that

change the constitution require 2/3rds majority vote.

All bills have titles. If members “Strike the Title,” the bill

becomes “defective” or “crippled.” This action slows down

the progress of a bill and ensures that it receives further

consideration. This mostly happens to bills containing

financial impacts to the state or that are works in progress.

Bills that pass are transmitted to the other chamber.

POLICY PATHOpposite Chamber

Following successful passage of a bill in its chamber of

origin, it becomes “engrossed,” and sent to the opposite

chamber.

Bills advance through the same process of First Reading,

Second Reading, committee consideration, and Third

Reading as in the original chamber.

There are some variations in the procedures used by each chamber

as specified by the House and Senate Rules.

Bills can have their titles stricken during this process.

For bills that already have stricken titles, the second chamber may

“Strike the Enacting Clause,” which further ensures that the bill will

not advance without further consideration by both chambers.

If bills pass the opposite chamber unchanged, it becomes

“enrolled” and is sent to the Governor for his/her action.

If bills are amended in any way, they are returned to the

original chamber for additional consideration.

POLICY PATH

After Third Reading Once the bill returns to the original chamber, the author can:

Move to accept the amendments. If approved by a vote of the

chamber, it is moved to Fourth Reading and Final Passage under the

same rules as Third Reading; OR

Move to reject the amendments and send the bill to conference

committee.

Bills with stricken titles and/or enacting clauses must be sent to a

conference committee to advance further.

Conference Committee A bill must be assigned to a conference committee for it to advance.

Committees contain at least three members assigned by House and Senate

leadership.

Appropriations bills and bills with budgetary impacts may be referred to

the General Conference Committee on Appropriations (GCCA).

Other than GCCA, few conference committees actually meet.

Working with their colleagues, lobbyists, advocates, and state agency

personnel, key leaders assigned to the conference committee work out the

details of the bill.

POLICY PATHConference Committee Reports

A Conference Committee can:

Accept the amendments from both houses.

Reject the amendments of both houses and propose a Conference Committee

Substitute.

Conference Committee Substitutes can often bear little resemblance to the

original legislation proposed. They may contain language from bills that were

defeated or not heard earlier in session.

Action taken by a Conference Committee results in a Conference Committee

Report (CCR). The report must gain a majority of signatures from members

assigned to the committee from each chamber.

CCRs must lay over in the House 36 hours before it can be considered.

Exception: final days of Session or suspension of the rules.

CCRs are submitted to a vote of the originating chamber first. Reports can

be approved or rejected, but not amended.

If a CCR is approved, it is then brought up for a vote on fourth and final

reading. If approved, the CCR is brought to the second chamber for

approval.

If a CCR is rejected, another conference may be requested with the same or

different members appointed by the two chambers.

POLICY PATH

Action by the Governor An enrolled bill approved by both chambers is transmitted to the

Governor. The Governor can do the following:

Sign the bill into law within five days.

Allow the bill to become law by taking no action within five days when

the legislature is in session.

Veto the entire bill. The legislature can override the Governor by a

2/3rd majority vote (68 votes from the House and 32 from the Senate).

If the bill contains an emergency clause, the veto must be overridden

by a 3/4th majority vote (76 votes from the House and 36 from the

Senate).

Line-item veto spending items in appropriations bills. Such vetoes are

similarly subject to being overridden by the legislature.

Following legislative adjournment, the Governor has fifteen days to

sign the bill, veto a bill, or exercise a “pocket veto” by taking no

action.

POLICY PATH

Legislative Deadlines: 2010 Session

DEADLINE 2010 SESSION

First Legislative Day -- convenes at noon Monday, February 1, 2010

Senate Bills in Senate Committees deadline Thursday, February 18, 2010

House Bills in House Committees deadline Thursday, February 25, 2010

Third reading of measures in chamber of origin Thursday, March 11, 2010

House Bills in Senate Committees deadline Thursday, April 1, 2010

Senate Bills in House Committees deadline Thursday, April 8, 2010

Third reading of measures in opposite chamber Thursday, April 22, 2010

Sine Die Deadline, Adjournment,

no later than 5:00 p.m.

Friday, May 28, 2010

Policy PathTo Track the Status and History of a Bill

1. Go to http://www2.lsb.state.ok.us/

2. Select “Status of Measures” from the middle column

3. Choose “Basic Search Form” from menu on left-hand

column

4. Complete the Bill Search Form

To Find the Text of a Legislative Measure

1. Go to http://www2.lsb.state.ok.us/

2. Select “Text of Measures” from the middle column

3. Select Chamber, Session and Status of measure

“Introduced” is initial version “Engrossed” is version that passed

first chamber

“Enrolled” is final version

BUDGET PROCESSRevenue and Budget

The legislature appropriates for the upcoming fiscal year (July 1 to June 30).

Constitutional Taxpayer Protections:

Constitutional requirement for a balanced budget.

Tax increases must be approved by a 3/4ths vote of the legislature or a

vote of the people (SQ 640).

Annual limit on appropriations increases are set to 12% plus inflation.

Appropriation totals are based on projected revenue as certified by the

Equalization Board in December (preliminary) and in February (final).

Board projects upcoming revenue for the year for each appropriated

fund based on estimates of tax collections.

For a complete discussion of the budget process and glossary of terms, see OK

Policy‟s Online Budget Guide:

http://okpolicy.org/online-budget-guide

BUDGET PROCESS

Budget Process Timeline

July 1

Beginning of

the New Fiscal

Year

MarchJanuaryJanuary February March

November

MayApril

OctoberSeptemberAugustJuly

June

December

State agencies

submit budget

request to the

Office of State

Finance

OSF Reviews State Agency Budget Requests; House and Senate

Committees Hold Agency Performance Reviews Hearings

Governor Submits

the Executive

Budget to the

Oklahoma State

Legislature for

Consideration

Legislative Review of State Agency Budgets

Passage of Budgets for State Agencies

State agencies

submit budget

work program to

Office of State

Finance for

approval

Preliminary

Certification of State

Revenue by the State

Board of Equalization

for next year

Final Review of

Available Revenue for

Expenditure by State

Legislature by the

State Board of

Equalization

Legislature in Session

June 30

End of Fiscal Year

BUDGET PROCESSTax Collections

STATE REVENUE

Six Largest Sources accounted for 89% of all Tax Revenues – 2007

Personal Income Tax - 38.3%

General Sales Tax – 22.1%

Gross Production Tax (Severance) – 10.6%

Motor Vehicle Tax – 6.8%

Motor Fuels Tax – 4.5%

Corporate Income Tax – 6.3%

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Individual Income Tax General Sales Tax Motor Fuels Tax Motor Vehicle License

Corporate Income Tax Severance Tax Other Taxes

Oklahoma State Tax Collections by Major Tax Sources, in Thousands (Source: US Census Bureau)

BUDGET PROCESSAppropriating Revenue

The largest fund subject to appropriations is the General Revenue

Fund.

Other major funds have restricted purposes.

The legislature cannot appropriate more than 95% of certified

funds for the upcoming year. This allows for a budgetary

cushion in case of a revenue shortfall.

Some funds are not certified and the legislature can appropriate

100% of the projected revenues.

During the fiscal year, if revenues meet expectations, the 5%

reserve is deposited into the Cash Flow Reserve Fund and is

available for appropriation.

BUDGET PROCESSAppropriating Revenue

About 75% of all appropriations are from the General Revenue (GR)

Fund

Usually over 80%, but less in FY „10 due to federal money from

the stimulus bill (ARRA)

1017 Education Reform Fund is 2nd largest state source – 9%

State Appropriations by Revenue Source, in Millions, FY ‘10

BUDGET PROCESSRainy Day Fund

General Revenue collections exceeding 100% of certification are

deposited in the Constitutional Reserve Fund (known as the Rainy

Day Fund), created in 1985.

During the fiscal year, if GR falls below 95% of the certified

projection, a budget shortfall is declared and across-the-board

cuts proportional to the shortfall become necessary.

Money in the Rainy Day Fund can be spent as follows:

Up to 3/8th for a shortfall in current year General Revenue

collections;

Up to 3/8th if projected General Revenues collections for the

upcoming year are below General Revenue collections for the current

fiscal year;

Up to 1/4th upon declaration of an Emergency and legislative

approval; and

Up to $10 million from the RDF on tax incentives for at-risk

manufacturers.

BUDGET PROCESSRainy Day Fund

FY ‟03 and FY ‟04 – State budget shortfalls depleted the Rainy

Day Fund to $100,000.

FY ‟06, ‟07, „08 – The Rainy Day Fund met and exceeded its

constitutional cap.

RDF balance kept at $596.6 million for FY „10

$157.5

$340.9

$72.3

$0.1

$217.5

$461.3$496.7

$571.6$596.6

$0

$100

$200

$300

$400

$500

$600

$700

2001 2002 2003 2004 2005 2006 2007 2008 2009

Rainy Day Balances, FY ‘01 to FY ‘09

(opening balances in $ millions)

BUDGET PROCESS

State Budget Three main funding sources pay for government operations and

programs:

State Appropriated Funds,

Federal Funds, and

Revolving Funds (fees, millage, co-pays, etc).

State agencies combine funding streams and sources.

State agencies are either appropriated or non-appropriated.

Non-appropriated agencies are funded through fees, assessments,

contributions, etc. (examples: Oklahoma Public Employees

Retirement System, State Banking Department, Board of Nursing,

and others).

BUDGET PROCESSAppropriations History, FY ‟00 – FY „10

(in $ millions; includes supplementals and Rainy Day Fund; excludes non-recurring “spillover funds”)

State appropriations fell in FY‟03 and FY‟04, recovered strongly between FY‟05 and FY‟08, then flattened as tax cuts kicked in and the recession hit

Current forecasts are for FY „10 revenues to come in at least $800 million below appropriations

Initial FY ‘11 certification is $5.3 billion, or $1.3 billion less than initially appropriated in FY ’10.

$4,981

$5,389 $5,491

$5,191$5,145

$5,459

$6,217

$6,760

$7,043

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10

State Appropriations ARRA

$30ARRA

$7,125 $7,231

$641 ARRA

$7,095 State

$6,590State

BUDGET PROCESSState Appropriations by

Appropriations Subcommittee, FY ‟10(total initial appropriations: $7,231.2 million)

State AppropriationsAmount

($ Million)

Education $3,859.4

Health & Social Services$1,345.7

Public Safety $787.3

Human Services $697.3

General Government $372.8

Natural Resources $154.4

Other $14.4

Education53%

Health & Social

Services19%

Public Safety

11%

Human Services

10%

General

Government

5%

Natural Resources

2%

Other0%

BUDGET PROCESSState Appropriations by State Agency, FY ‟10

[Total Initial Appropriations: $7,231.2 million, includes ARRA]

10 Largest Agencies – 89.2%

Common Education

Higher Education

Health Care Authority

Department of Human Services

Department of Corrections

Department of Transportation

Mental Health Department

Career & Technology Education

Juvenile Affairs

Public Safety

All Other Agencies – 10.8%

68 State Agencies

Common Ed.,

$2,572.0 , 36%

Higher Ed.,

$1,070.7 , 15%

OHCA (Medicaid),

$979.8 , 13%

DHS, $550.7

8%

Corrections,

$503.0 , 7%

Transportation,

$208.7 , 3%

Mental Health,

$203.3 , 3%

Career Tech,

$157.8 , 2%

Juv. Affairs, $112.4

, 1%

Public Safety,

$93.3 , 1%

All Other Agencies,

$779.4 , 11%

Recent Office HoldersGovernor House Speaker Senate Pro Tem

2009-10 Brad Henry Chris Benge Glenn Coffee

2007-08 Brad Henry Lance Cargill/ Mike Morgan &

Chris Benge Glenn Coffee

2005-06 Brad Henry Todd Hiatt Cal Hobson/ Mike

Morgan

2003-04 Brad Henry Larry Adair Cal Hobson

2001-02 Frank Keating Larry Adair Stratton Taylor

1999-00 Frank Keating Lloyd Benson Stratton Taylor

1997-98 Frank Keating Lloyd Benson Stratton Taylor

1995-96 Frank Keating Glen Johnson Stratton Taylor

1993-94 David Walters Glen Johnson Bob Cullison

1991-92 David Walters Glen Johnson Bob Cullison

1989-90 Henry Bellmon Jim Barker/Steve Lewis Bob Cullison

1987-88 Henry Bellmon Jim Barker Rodger Randle

1985-86 George Nigh Jim Barker Rodger Randle

1983-84 George Nigh Dan Draper/Jim Barker Melvin York

1981-82 George Nigh Dan Draper Melvin York

1979-80 George Nigh Dan Draper Gene Howard

LEGISLATIVE RESOURCESHelpful On-Line Resources

Oklahoma Legislature Home Page www.LSB.STATE.OK.US

o Link to House and Senate Homepages

o Check Legislation – status, wording, intent, etc

o Search OK Statutes and Constitution

Office of State Finance www.OSF.STATE.OK.US

o Governor‟s Annual Budget

o Certification Estimates

State Treasurer‟s Office www.TREASURER.STATE.OK.US

o Monthly Revenue Reporting

State Homepage www.OK.gov

Open Book – Oklahoma‟s Finances

www.OKGOV/OKAA/

o State spending and budget info

Updated Budget and Tax Information and the Online Budget Guide

www.OKPOLICY.org

FOR MORE INFORMATION:

Email – info@okpolicy.org

www.OKPOLICY.org