Oklahoma budget chair says state entering new fiscal year with strong financial outlook

OKLAHOMA CITY –

Sen. Chuck Hall, R-Perry, Senate Budget Chairman, says Oklahoma is entering the new fiscal year in a strong position, with revenues coming in above projections and record savings on hand.

Sen. Hall says lawmakers are already reviewing revenue collections and preparing for next year’s budget process.

“We’re just a few days into the new budget cycle. What I’m doing is evaluating the Board of Equalization estimates for revenue compared to actual, and those numbers are actually coming in ahead of our estimates. So we’re very happy about that and very pleased that we’re going to have excess cash going into the new budget cycle,” said Sen. Chuck Hall, R-Perry, Senate Budget Chairman.

As appropriations chairman, Sen. Hall says much of his job involves working with state agencies to determine what funding is truly needed.

“Many times it’s just like your own budget. If money was no option, you would love to have X, Y and Z. But when it’s a tight budget, whether it’s around your kitchen table or in state government, we really need to identify those expenditures that need to be made that adequately serve the needs and functions of the core services of government,” said Sen. Chuck Hall.

Hall says lawmakers also examine whether previous spending decisions achieved their intended results before allocating additional funding.

Hall says Oklahomans should understand that federal funding and state funding come from separate sources, and temporary federal money cannot always be replaced by state funds.

“The federal dollars versus the state dollars are completely different. We receive millions of dollars in federal funding, and so we have to keep an eye on that.But we also have to be tuned into the fact that they don’t always last forever,” said Sen. Hall.

Hall says changes in federal spending priorities, administrations and congressional representation can all affect how much money flows into Oklahoma.

The state currently has record savings reserves, and Hall says lawmakers have intentionally avoided spending all available revenue.

“The reason that we have record savings in the state of Oklahoma is because the legislature here has not spent every dollar that has been made available to them,” said Sen. Hall.

Hall says those savings are particularly important because Oklahoma’s economy remains heavily tied to the oil and gas industry and can fluctuate with market conditions.

“Just like at home, it is such a comfort to have a substantial savings account. So when those emergencies happen, you can be able to back fill with savings that you have, and we don’t have to go back to the taxpayer to make up the difference,” said Sen. Hall.

While the governor proposes a budget each year during the State of the State address, Hall notes the Legislature ultimately writes and passes the state budget.

“The best-case scenario is that we all agree on the budget. We are able to pass the budget in our respective houses, and then the governor will either sign it or allow it to become law,” said Sen. Hall.

Hall says the governor’s office remains involved throughout budget negotiations because of the governor’s veto authority.

As work on the next budget gets underway, Hall says his priorities remain funding essential government functions while safeguarding taxpayer dollars.

“I think the key thing and the key function of my job is to make sure that we fund the core services of government. When you think about public safety, roads and bridges, education and public health, those are all things that create a quality of life here in Oklahoma that we’ve grown accustomed to and we’re proud of,” said Sen. Hall. “It’s a balancing act.We balance between protecting tax dollars, which I take very, very seriously, and funding the core services of government.”