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Savings and stimulus could mitigate Oklahoma revenue failure, shortfall

Savings and stimulus could mitigate Oklahoma revenue failure, shortfall
By Tres Savage - March 31, 2020 1729

The gurgling global oil market plus other economic slowdowns attributable to the COVID-19 pandemic will result in a roughly $219 million revenue failure for Oklahoma’s current fiscal year and an estimated $450 million revenue shortfall for next year’s state budget, according to legislative appropriation leaders.

The good news for Oklahoma, however, is that state leaders saved an additional $200 million last year, have a flush Rainy Day Fund available, are expecting an increase in Medicaid matching dollars and will see about $1.5 billion enter the state from a federal stimulus bill signed into law last week.

Still, the fiscal picture for Oklahoma’s government will require a series of paint jobs to stay rosy for the next year. That process is expected to start the morning of Tuesday, April 7, with an anticipated meeting of the Board of Equalization, the congregation of state executives that certifies financial estimates.

If a $219 million revenue failure for Fiscal Year 2020 is certified next week as expected, the Oklahoma Legislature would likely return from its March 17 indefinite adjournment to pass the bill required to address the revenue failure with money from the Constitutional Reserve Fund, commonly called the Rainy Day Fund... FULL ARTICLE

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