FULL ARTICLE
The Oklahoman
BY MICHAEL MCNUTT
Published: November 19, 2009
All the money in the state’s savings account can be used to help offset
this fiscal year’s revenue shortfall, according to a legal opinion by
the state attorney general’s office.
That likely won’t occur, for legislative leaders and Gov. Brad Henry
have said they don’t want to spend all the nearly $600 million in the
Rainy Day Fund to deal with revenue that is about 22 percent low this
fiscal year.
In the unofficial opinion requested by state Treasurer Scott Meacham, First Assistant Attorney General Tom Gruber writes that two triggers that allow legislators to appropriate up to 75 percent of the money have occurred.
• The Board of Equalization earlier certified that legislators will
have less money this fiscal year than the previous year to appropriate.
That made 37.5 percent, or about $225 million, available for use for
this fiscal year.
• Another 37.5 percent became eligible for appropriation when shortfalls began this fiscal year.
Legislators can also declare an emergency, freeing up the remaining
$150 million. For that to happen, the governor has to declare an
emergency and two-thirds of the Senate and House have to agree;
legislators could declare an emergency with a yes vote of three-fourths
of the members in each body.
Meacham, the governor’s chief budget adviser, said the unofficial
opinion gives legislative leaders and the governor flexibility with the
budget.
Legislative leaders have cautioned against using too much of the
savings account because the next fiscal year may be another lean year.
State agencies have received a 5 percent cut in their monthly state appropriations since August.
Legislators can direct specific budget cuts. The governor has suggested
a special session in January if revised budget figures next month show
steeper cuts are necessary for state agencies, most of which cut
budgets by 7 percent at the beginning of this fiscal year.
Posted on
Thu, November 19, 2009
by Crystal Drwenski