State Budgets: Oklahoma Emphasizes Spending Cuts

December 27, 2008

Oklahoma’s State Treasurer recently estimated that state revenue is already $250 million short half-way through this year’s $7.1 billion budget, and could be as much as $310 million for the next fiscal year’s $6.76 billion budget. (The Board of Equalization certifies the budget to the Legislature in Oklahoma.) Part of the loss ($104 million) is from a modest income tax reduction taking effect on January 1 (although further reductions in 2010 may not happen), but the biggest drop is the $154 million reduction in gross production taxes on natural gas. The Treasurer and Gov. Brad Henry (D) said that the state will resist calls to dip into Oklahoma’s $600 million Rainy Day Fund, and Henry has said he will oppose raises but also oppose furloughs or layoffs.

More on Oklahoma here.

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