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 Representatives
o 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 Senate
o 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
 OKLAHOMA LEGISLATURE
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

SPEAKER SPEAKER PRO TEMPORE MAJORITY FLOOR LEADER

Chris Benge (R- Tulsa) Kris Steele (R-Shawnee) Tad Jones (R-Claremore)

FIRST ASSISTANT MAJORITY FLOOR LEADER MAJORITY WHIP

• 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)
• 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)
 OKLAHOMA LEGISLATURE
House Minority Leadership

MINORITY LEADER MINORITY FLOOR LEADER

Danny Morgan (D-Prague) Mike Brown (D-Tahlequah)

DEPUTY FLOOR LEADERS ASSISTANT FLOOR LEADERS

• Wes Hilliard (D-Sulphur) • Wallace Collins (D-Norman)
• Larry Glenn (D-Miami)
• Jerry McPeak (D-Warner)
• Jeannie McDaniel (D-Tulsa)
MINORITY WHIP • Wade Rousselot (D-Wagoner)
• Ben Sherrer (D-Chouteau) • Jabar Shumate (D-Tulsa)
CAUCUS CHAIR
• Chuck Hoskins (D-Vinita)
CAUCUS VICE-CHAIR
• Ryan Kiesel (D- Seminole)
 OKLAHOMA
OKLAHOMA LEGISLATURE
LEGISLATURE
Senate Majority Leadership

PRESIDENT PRO-TEMPORE MAJORITY FLOOR LEADER

Glenn Coffee (R-Oklahoma City)
ASSISTANT MAJORITY FLOOR LEADERS
• Brian Bingman (R-Sapulpa)
• Clark Jolley (R –Edmond)
• Mike Mazzei (R –Bixby)
Todd Lamb (R-Edmond)
MAJORITY WHIPS
• Cliff Branan (R –Oklahoma City)
• Mike Schultz (R –Altus)
• Anthony Sykes (R –Moore)

CAUCUS CHAIR: John Ford (R – Bartlesville)

 OKLAHOMA
SENATE LEGISLATURE
POWER-SHARING AGREEMENT
Senate Minority Leadership

MINORITY LEADER
Charlie Laster (D- Shawnee)

ASSISTANT FLOOR LEADERS MINORITY WHIPS

• Tom Adelson (D-Tulsa)
• Sean Burrage (D-Claremore)
• Jay Paul Gumm (D-Durant)
• Tom Ivester (D-Sayre)
• Richard Lerblance (D-Hartshorne)
• 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)
 EXECUTIVE BRANCH
Governor 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, Attorney General, State Treasurer, Insurance

Jari Askins Drew Edmondson Scott Meacham Commissioner,
Kim Holland

Corporation
Commissioners,
State Auditor & Labor Superintendent of Bob Anthony
Inspector, Commissioner, Public Instruction, Jeff Cloud
Steve Burrage Lloyd Fields Sandy Garrett 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
 LEGISLATIVE SESSION
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.

Special Session
Special 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
Where Do Bills Come From?
 Request of a government agency or  Governor
local government  Legislator‟s interest
 Request of an interest group  Interim Study
 Request of a constituent
 National model legislation
(e.g. NCSL, ALEC)
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
 POLICY PATH
Volume 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)
POLICY PATH

Governor Brad Henry

 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 PATH
Committee 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
APPROPRIATIONS
Education Subcommittee
• Sen. James Halligan (R-Stillwater), Chair
• Sen. John Ford (R-Bartlesville), Vice-Chair
Appropriations & Budget Committee
• Sen. Mike Johnson (R-Kingfisher), Chair Gen Govt & Transportation Subcommittee
• Sen. David Myers (R-Ponca City), Vice-Chair • Sen. Randy Brogdon (R-Owasso), Chair
• Sen. Brian Bingman (R-Sapulpa), Vice-Chair
Natural Res. & Reg. Svcs. Subcommittee
• Sen. David Myers (R-Ponca City), Chair
• Sen. Ron Justice (R-Chickasha), Vice-Chair
STANDING COMMITTEES
COMMITTEE CHAIR
Agriculture and Rural Development Sen. Ron Justice (R-Chickasha)
Business and Labor Sen. Harry Coates (R-Seminole)
Education Sen. John Ford (R-Bartlesville)
Energy & Environment Sen. Brian Bingman (R-Sapulpa)
Finance Sen. Mike Mazzei (R-Tulsa)
General Government Sen. Cliff Aldridge (R-Midwest City)
Health and Human Resources Sen. Clark Jolley (R-Edmond)
Judiciary Sen. Patrick Anderson (R-Enid)
Public Safety & Homeland Security Sen. Don Barrington (R-Lawton)
Retirement & Insurance Sen. Bill Brown (R-Broken Arrow)
Rules Sen. Jonathan Nichols (R-Norman)
Tourism & Wildlife Sen. Mike Schulz (R-Altus)
Transportation Sen. Cliff Branan (R – Oklahoma City)
Veterans & Military Affairs Sen. Jim Reynolds (R – Oklahoma City)
Health & Human Services Subcommittee
• Sen. Brian Crain (R-Tulsa), Chair
• Sen. Patrick Anderson (R-End) – Vice-Chair
Public Safety and Judiciary Subcommittee
• Sen. Anthony Sykes (R-Moore), Chair
• Sen. Jim Reynolds (R-Oklahoma City), Co-Chair
VICE-CHAIR
Sen. Mike Schulz (R-Altus)
Sen. Dan Newberry (R-Tulsa)
Sen. Clark Jolley (R-Edmond)
Sen. Randy Brogdon (R-Owasso)
Sen. Gary Stanislawski (R-Tulsa)
Sen. Roger Ballenger (D-Okmulgee)
Sen. Sean Burrage (D-Claremore)
Sen. Susan Paddack (D-Ada)
Sen. Steve Russell (R-Oklahoma City)
Sen. Cliff Aldridge (R-Midwest City)
Sen. Earl Garrison (D-Muskogee)
Sen. Jerry Ellis (D-Valliant)
Sen. Bryce Marlatt (R- Woodward)
Sen. Don Barrington (R – Lawton)
 House Committee Structure and Chairs
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
COMMITTEE
Administrative Rules and Agency Oversight
Agriculture and Rural Development
Common Education
Economic Development & Financial Services
Energy and Utility Regulation
General Government
Government Modernization
Higher Education and Career Technology
Human Services
International Relations & Tourism
Judiciary
Public Health & Social Services
Public Safety & Homeland Security
Rules
Transportation
Veterans & Military Affairs
Wildlife
APPROPRIATIONS
Gen Govt & Transportation Subcommittee
• Rep. Guy Liebmann (R-Ok. City), Chair
• Rep. Colby Schwartz (R-Yukon), Vice-Chair
Human Services Subcommittee
• Rep. Ron Peters (R-Tulsa), Chair
• Rep. Marion Cooksey (R-Edmond), Vice-Chair
Natural Resources & Reg. Affairs Subcttee
• Rep. Dale DeWitt (R-Braman), Chair
• Rep. Skye McNeil (R-Bristow), Vice-Chair
STANDING COMMITTEES
CHAIR
Rep. John Wright (R–Broken Arrow)
Rep. Don Armes (R-Faxon)
Rep. Ann Coody (R-Lawton)
Rep. Dan Sullivan (R-Tulsa)
Rep. Mike Thompson (R-Oklahoma City)
Rep. Lisa J. Billy (R-Purcell)
Rep. Jason Murphy (R-Guthrie)
Rep. Todd Thomsen (R-Ada)
Rep. Pam Peterson (R-Tulsa)
Rep. Shane Jett (R-Tecumseh)
Rep. Rex Duncan (R-Sand Springs)
Rep. John Trebilcock (R-Broken Arrow)
Rep. Sue Tibbs (R-Tulsa)
Rep. Gus Blackwell (R-Goodwell)
Rep. T.W. Shannon (R-Lawton)
Rep. Gary Banz (R-Midwest City)
Rep. Phil Richardson (R-Minco)
Health Subcommittee
• Rep. Doug Cox (R-Grove), Chair
•Rep. Paul Wessellhoft (R-Moore), Vice-Chair
Judiciary and Public Safety Subcommittee
• Rep. Randy Terrill (R-Moore), Chair
• Rep. Mark McCullough (R-Sapulpa), Vice-Chair
Revenue & Taxation Subcommittee
• Rep. Jeff Hickman (R-Dacoma), Chair
• Rep. Neil Brannon (D-Arkoma), Vice-Chair
VICE-CHAIR
Rep. George Faught (R-Muskogee)
Rep. John Enns (R-Enid)
Rep. Sally Kern (R-Oklahoma City)
Rep. Randy McDaniel (R-Oklahoma City)
Rep. Weldon Watson (R-Tulsa)
Rep. Dennis Johnson (R-Duncan)
Rep. David Derby (R-Owasso)
Rep. Bill Nations (D-Norman)
Rep. Wade Rousselot (D-Wagoner)
Rep. Purcy Walker (D-Elk City)
Rep. Fred Jordan (R-Jenks)
Rep. David Derby (R-Owasso)
Rep. Steve Martin (R-Bartlesville)
Rep. Mike Jackson (R-Enid)
Rep. Charlie Joyner (R-Midwest City)
Rep. John Carey (D-Durant)
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 PATH
Third 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 PATH
Opposite 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 PATH
Conference 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, Friday, May 28, 2010
no later than 5:00 p.m.
 Policy Path
To 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 PROCESS
Revenue 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
January February March April May June
Legislature in Session
State agencies
Governor Submits Legislative Review of State Agency Budgets submit budget
the Executive work program to
Passage of Budgets for State Agencies
Budget to the Office of State
Oklahoma State Final Review of Finance for
Available Revenue for approval
Legislature for Expenditure by State
Consideration Legislature by the
State Board of June 30
Equalization End of Fiscal Year

July August September October November December

OSF Reviews State Agency Budget Requests; House and Senate
Committees Hold Agency Performance Reviews Hearings
July 1 State agencies
submit budget
Beginning of request to the
Preliminary
Certification of State
the New Fiscal Office of State Revenue by the State
Year Finance Board of Equalization
for next year
 BUDGET PROCESS
Tax Collections
 STATE REVENUE
 Six Largest Sources accounted for 89% of all Tax Revenues – 2007
 Personal Income Tax - 38.3%
 Motor Vehicle Tax – 6.8%

 General Sales Tax – 22.1%  Motor Fuels Tax – 4.5%

 Gross Production Tax (Severance) – 10.6%  Corporate Income Tax – 6.3%

Oklahoma State Tax Collections by Major Tax Sources, in Thousands (Source: US Census Bureau)
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000

Individual Income Tax General Sales Tax Motor Fuels Tax Motor Vehicle License
Corporate Income Tax Severance Tax Other Taxes
 BUDGET PROCESS
Appropriating 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 PROCESS
Appropriating 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 PROCESS
Rainy 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 PROCESS
Rainy Day Fund
Rainy Day Balances, FY ‘01 to FY ‘09
(opening balances in $ millions)
$700
$596.6
$600 $571.6
$496.7
$500 $461.3

$400 $340.9
$300
$217.5
$200 $157.5

$100 $72.3
$0.1
$0
2001 2002 2003 2004 2005 2006 2007 2008 2009

 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
 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 PROCESS
Appropriations History, FY ‟00 – FY „10
(in $ millions; includes supplementals and Rainy Day Fund; excludes non-recurring “spillover funds”)
7,500

7,000
$7,043
$6,760 $7,125 $7,231
6,500
$30
$6,217 ARRA
6,000
$641
ARRA
5,500 $5,389 $5,491 $5,459 $7,095
State
$5,191
$5,145 $6,590
5,000 $4,981 State

4,500

4,000
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

 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.
 BUDGET PROCESS
State Appropriations by
Appropriations Subcommittee, FY ‟10
(total initial appropriations: $7,231.2 million)
General
Government
Natural
Resources Other
Amount
5%
2% 0%
State Appropriations
($ Million)
Education $3,859.4
Human
Services $1,345.7
10% Health & Social Services
Public
Education
Safety
53%
Public Safety $787.3
11%
Health & Human Services $697.3
Social
Services General Government $372.8
19%
Natural Resources $154.4
Other $14.4
 BUDGET PROCESS
State Appropriations by State Agency, FY ‟10
[Total Initial Appropriations: $7,231.2 million, includes ARRA]
10 Largest Agencies – 89.2%
Transportation, Common Education
DHS, $550.7 $208.7 , 3%
8%
Mental Health, Higher Education
$203.3 , 3%
OHCA (Medicaid), Health Care Authority
$979.8 , 13%
Corrections,
$503.0 , 7% Career Tech, Department of Human Services
$157.8 , 2%

Higher Ed.,
Department of Corrections
Juv. Affairs, $112.4
$1,070.7 , 15%
, 1%
Department of Transportation
Public Safety,
$93.3 , 1% Mental Health Department
All Other Agencies,
$779.4 , 11%
Career & Technology Education
Juvenile Affairs
Common Ed.,
$2,572.0 , 36%
Public Safety

All Other Agencies – 10.8%

68 State Agencies
 Recent Office Holders
Governor 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 RESOURCES
Helpful On-Line Resources
 Updated Budget and Tax Information and the Online Budget Guide
 www.OKPOLICY.org
 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
 Open Book – Oklahoma‟s Finances
 www.OKGOV/OKAA/
o State spending and budget info
 State Treasurer‟s Office
 www.TREASURER.STATE.OK.US
o Monthly Revenue Reporting

 State Homepage
 www.OK.gov
FOR MORE INFORMATION:
Email – info@okpolicy.org
www.OKPOLICY.org