OKLAHOMA CITY – Although the Oklahoma Legislature will have access to more than $10.4 billion for the next fiscal year, the Legislature’s Republican leadership said this week it won’t spend all that money on programs and agencies.
Tuesday the state Board of Equalization certified $10.49 billion in appropriations for the 2023 fiscal year. That figure, however, includes carryover and one-time federal funds of about $1.3 billion.
The BOE’s proposed certification document shows the Legislature would have $9.248 billion to appropriate for the next fiscal year, plus $1.127 billion in its carryover and special cash fund and another $114 million in its cash flow reserve fund.
The February 22 certification is $164.8 million more than the board’s December estimate.
And while lawmakers on both sides of the aisle agree the state’s economy remains strong, the Legislature’s Republican leadership wants to bank a good portion of that additional money and keep state spending flat.
“Oklahoma has continued to benefit from federal dollars related to the pandemic, which helped these numbers,” state Sen. Roger Thompson, R-Okemah, said. “Knowing that will change, and that energy prices will not always remain as high as they are now, we must be cautious in our approach to the budget.”
State Rep. Kevin Wallace, R-Wellston, said he expects more than $700 million of that new revenue will be added to the Constitutional Reserve Fund, which has about $381 million now. Those funds are part of about $2.3 billion in cash reserves for the state.
Democrats, however, want more funds spent to help those impacted by the COVID-19 pandemic.
“Increased investment in our state’s most critical needs will boost economic growth and reduce poverty,” state Sen. Carri Hicks, D-Oklahoma City, said in a media statement. “Taxpayers expect the Legislature to make smart investments, not stash our tax dollars in government savings accounts leaving much needed funding on the table. It’s our job as the state Legislature to invest in good fiscal policy.”
Still, even with a strong economy, Thompson said it is in the state’s best interest to “continue to take a fiscally conservative approach. “It’s important to remember that of that $10.49 billion certified, nearly $1.3 billion is made up of one-time carryover funds and special cash reserves from previous sessions.”
State lawmakers have until May 27 to finalize their budget.