newson6.com
Posted: Tuesday, December 7, 2010 11:31 AM EST
Associated Press
OKLAHOMA CITY (AP) -- Oklahoma's economy, battered from the fallout of a national recession and low oil and natural gas prices, likely will not fully recover until at least 2014, according to a report released Tuesday by a Tulsa-based state policy think-tank.
The Oklahoma Policy Institute's report, titled "A New Fiscal Reality for Oklahoma," projects that -- without any new sources of revenue -- lawmakers will face an estimated $400 million budget hole when they return to the state Capitol in February to craft a budget for the upcoming fiscal year. Combined with budget cuts from the previous two fiscal years, that would amount to a cumulative budget reduction of about $800 million, or 11 percent, over three fiscal years.
"The magnitude of the looming shortfall for the coming budget year, and the likelihood of prolonged financial distress, makes it urgent that we develop a serious plan that protects essential public services and uses resources more wisely," said David Blatt, director of the institute.
State officials will meet in two weeks to approve a preliminary estimate of available revenue for the budget for Fiscal Year 2012, which begins July 1. That figure will be used by Gov.-elect Mary Fallin to prepare her budget recommendations for lawmakers.
The official certification for how much the Legislature will be able to spend will be made in February, just before the start of the 2011 session... FULL ARTICLE
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Tue, December 7, 2010
by Crystal Drwenski