gov. fallin's executive budget proposal 2.0

8/18/2019 Gov. Fallin's Executive Budget Proposal 2.0

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Governor Mary Fallin

FY 2017 Executive Budget 2.0

Five concepts – none requiring supermajority votes – can produce a FY 2017 appropriated budget that

responsibly funds government and puts the state on better financial footing in future years.

1.

Transportation reform: $502.7M

2.

Tax reform: $238.9M

3. Apportionment reform: $177M

4.

Gov’t accounting reform: $333.3M

5.

General appropriations bill

Cap ROADS at current level until FY 2019 and bond difference: $52.7 million annually in FY 17

and FY 18 ($59.7 million differential minus $4.5 million in dedicated debt service from motor

vehicle tax for $59.7 million annual bond)

Bond FY 2017 state and county funding to keep all plans intact: $450 million

Eliminate sales tax exemptions: $106.5 million (see Appendix A)

Eliminate personal income tax double deduction: $97.3 million

Make earned income tax credit nonrefundable: $28.8 million

Reconciliation of income taxes withheld: $4.5 million

Eliminate coal credit: $1.75 million

Apportionment equity: $113.4 million

Eliminate Tourism apportionments: $22 million Eliminate Historical Society apportionment: $1.5 million

Cap gasoline tax apportionment at FY 13 level: $5 million

Cap diesel tax apportionment at FY 13 level: $3 4 million


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Cap diesel tax apportionment at FY 13 level: $3 4 million

State Department of Education: Restore FY 2016 funding, hold flat for FY 2017

Career Technology: Restore FY 2016 funding, hold flat for FY 2017

Department of Corrections: Annualize FY 2016 supplemental, hold flat for FY 2017

Health Care Authority: Restore FY 2016 funding, hold flat for FY 2017

Department of Human Services: Restore FY 2016 funding, hold flat and appropriate $11.3

million to meet agency Pinnacle Plan request for FY 2017

Department of Mental Health and Substance Abuse Services: Restore FY 2016 funding, hold

flat for FY 2017

Health Department: Restore FY 2016 funding, hold flat for FY 2017

Transportation Department: Increase State Transportation Fund to February certification.

Tax Commission: Restore FY 2016 funding, add $3.9 million for FY 2017 for compliance

initiatives that will generate $34.1 million in additional sales tax revenue

Office of the Chief Medical Examiner: Hold flat for FY 2017

Office of Juvenile Affairs: Hold flat for FY 2017

Corporation Commission: Hold flat for FY 2017

School of Science and Mathematics: Hold flat for FY 2017 Oklahoma Indigent Defense System: Hold flat for FY 2017

Election Board: Provide $678,000 increase for FY 2017 to maintain necessary election services

*Office of the Attorney General: Eliminate appropriation

*Office of the State Treasurer: Eliminate appropriation

*Insurance Department: Eliminate appropriation

All other agencies: Appropriation reduction of 4.5 percent for FY 2017.

* These agencies have sufficient resources to permanently operate as nonappropriated entities.

The bill accesses $125 million from agency revolving funds for FY 17 appropriations.


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FY-2016 Original FY-2016 Adj. 7% GR FY-2016 FY-2017 Final FY-2017 FY-2017 $ From FY-2017 %

Appropriation Reduction One-Times Adjustments Proposed Adj. FY-2016 Adj. FY-2016

Governor $1,952,520 $1,815,844 $0 -$81,713 $1,734,131 -$81,713 -4.50%

TOTAL GOVERNOR $1,952,520 $1,815,844 $0 -$81,713 $1,734,131 -$81,713 -4.50%

Lt. Governor $443,479 $412,435 $0 -$18,560 $393,876 -$18,560 -4.50%

TOTAL LT. GOVERNOR $443,479 $412,435 $0 -$18,560 $393,876 -$18,560 -4.50%

Agriculture, Department of $24,673,417 $23,086,278 $0 -$1,038,883 $22,047,395 -$1,038,883 -4.50%

Conservation Commission $9,958,106 $9,261,039 $0 -$416,747 $8,844,292 -$416,747 -4.50%

Horse Racing Commission $1,973,779 $1,835,614 $0 -$82,603 $1,753,012 -$82,603 -4.50%

TOTAL AGRICULTURE $36,605,302 $34,182,931 $0 -$1,538,232 $32,644,699 -$1,538,232 -4.50%

Commerce, Department of $23,775,603 $22,181,311 $0 -$998,159 $21,183,152 -$998,159 -4.50%

Labor, Department of $4,185,013 $4,185,013 $0 -$188,326 $3,996,687 -$188,326 -4.50%

TOTAL COMMERCE $27,960,616 $26,366,324 $0 -$1,186,485 $25,179,839 -$1,186,485 -4.50%

Career Technology Education $133,872,467 $124,893,064 $0 $8,979,403 $133,872,467 $8,979,403 7.19%

Education, State Department of $2,484,873,132 $2,375,721,434 $51,000,000 $58,151,698 $2,484,873,132 $109,151,698 4.59%

Educational Television Authority $3,391,234 $3,153,848 $0 -$141,923 $3,011,924 -$141,923 -4.50%

Education Quali ty & Accountabi li ty, Office of $1,832,470 $1,739,197 $0 -$78,264 $1,660,933 -$78,264 -4.50%

Higher Education, Regents for $963,412,106 $907,212,825 $0 -$40,824,577 $866,388,248 -$40,824,577 -4.50%

Physician Manpower Training $3,927,145 $3,680,245 $0 -$165,611 $3,514,634 -$165,611 -4.50%

Science and Math, School of $6,574,553 $6,574,553 $0 $0 $6,574,553 $0 0.00%

TOTAL EDUCATION and WORKFORCE DEVELOPMENT $3,597,883,107 $3,422,975,165 $51,000,000 $25,920,726 $3,499,895,891 $76,920,726 2.25%


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FY-2016 Original FY-2016 Adjusted FY-2016 FY-2017 Final FY-2017 FY-2017 $ From FY-2017 %

Appropriation Appropriation One-Times Adjustments Appropriation Adj. FY-2016 Adj. FY-2016

Corporation Commission $10,182,682 $10,182,682 $0 $0 $10,182,682 $0 0.00%

Environmental Quality, Department of $6,776,896 $6,776,896 $0 -$304,960 $6,471,936 -$304,960 -4.50%

Mines, Department of $878,067 $816,602 $0 -$36,747 $779,855 -$36,747 -4.50%

Water Resources Board $6,243,259 $5,806,231 $0 -$261,280 $5,544,950 -$261,280 -4.50%

TOTAL ENERGY and ENVIRONMENT $24,080,904 $23,582,411 $0 -$602,988 $22,979,423 -$602,988 -2.56%

Auditor and Inspector $4,120,584 $3,867,143 $0 -$174,021 $3,693,122 -$174,021 -4.50%

Bond Advisor $125,282 $116,512 $0 -$5,243 $111,269 -$5,243 -4.50%

Insurance Commissioner $1,662,841 $1,546,442 $0 $0 $0 -$1,546,442 -100.00%

Land Office, Commissioners of $8,538,600 $8,538,600 $0 $0 $8,538,600 $0 0.00%

Management and Enterprise Services $39,791,904 $38,402,228 $0 -$1,728,100 $36,674,128 -$1,728,100 -4.50%

Merit Protection Commission $429,802 $399,716 $0 -$17,987 $381,729 -$17,987 -4.50%

Tax Commission $43,395,876 $40,498,165 $0 $3,931,940 $44,430,105 $6,829,651 16.86%

Treasurer $3,186,715 $2,970,295 $0 $0 $0 -$2,970,295 -100.00%

TOTAL FINANCE, ADMINISTRATION and INFORMATION

TECHNOLOGY $101,251,604 $96,339,101 $0 $2,006,588 $93,828,952 $387,562 0.40%

Children and Youth, Commission $1,972,863 $1,834,763 $0 -$82,564 $1,752,198 -$82,564 -4.50%

Disability Concerns, Office of $278,039 $258,576 $0 -$11,636 $246,940 -$11,636 -4.50%

Health Care Authority $971,050,513 $907,224,477 $0 $63,826,036 $971,050,513 $63,826,036 7.04%

Health, Department of $60,632,476 $56,388,203 $0 $4,244,273 $60,632,476 $4,244,273 7.53%

Human Services, Department of $678,946,518 $635,200,262 $0 $55,046,256 $690,246,518 $55,046,256 8.67%

J.D. McCarty Center $4,325,972 $4,023,154 $0 -$181,042 $3,842,112 -$181,042 -4.50%

Juvenile Affairs $98,999,033 $92,069,101 $0 $0 $92,069,101 $0 0.00%

Mental Health & Substance Abuse $340,691,562 $317,893,153 $0 $22,798,409 $340,691,562 $22,798,409 7.17%

OSU Medical Authority $11,503,144 $10,697,924 $0 -$481,407 $10,216,517 -$481,407 -4.50%

Rehabilitation Services, Depart. $30,944,807 $28,778,671 $0 -$1,295,040 $27,483,630 -$1,295,040 -4.50%

University Hospitals Authority $39,486,955 $36,722,868 $0 -$1,652,529 $35,070,339 -$1,652,529 -4.50%

TOTAL HEALTH and HUMAN SERVICES $2,238,831,882 $2,091,091,150 $0 $142,210,757 $2,233,301,907 $142,210,757 6.80%


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Appropriation Appropriation One-Times Adjustments Budget Book Adj. FY-2016 Adj. FY-2016

Military, Department of $11,289,977 $10,499,679 $0 -$472,486 $10,027,193 -$472,486 -4.50%

TOTAL MILITARY $11,289,977 $10,499,679 $0 -$472,486 $10,027,193 -$472,486 -4.50%

ABLE $2,830,008 $2,631,907 $0 -$118,436 $2,513,472 -$118,436 -4.50%

Attorney General $13,903,809 $12,930,542 $0 $0 $0 -$12,930,542 -100.00%Corrections, Department of $484,900,943 $457,321,323 $27,579,620 $0 $484,900,943 $27,579,620 6.03%

District Attorneys and DAC $38,846,686 $36,127,418 $0 -$1,625,734 $34,501,684 -$1,625,734 -4.50%

Emergency Management $570,054 $530,150 $0 -$23,857 $506,293 -$23,857 -4.50%

Fire Marshal $1,619,633 $1,520,259 $0 -$68,412 $1,451,847 -$68,412 -4.50%

Indigent Defense System $16,079,722 $14,954,141 $0 $1,125,581 $16,079,722 $1,125,581 7.53%

Investigation, State Bureau of $13,743,685 $12,991,627 $0 -$584,623 $12,407,004 -$584,623 -4.50%

CLEET $3,296,355 $3,296,355 $0 -$148,336 $3,148,019 -$148,336 -4.50%

Medicolegal Investigations $9,697,043 $9,018,250 $0 $0 $9,018,250 $0 0.00%

OBNDD $3,498,917 $3,498,917 $0 -$157,451 $3,341,466 -$157,451 -4.50%

Pardon and Parole Board $2,466,681 $2,294,013 $0 -$103,231 $2,190,783 -$103,231 -4.50%

Public Safety, Department of $100,309,377 $95,142,721 $0 -$4,281,422 $90,861,298 -$4,281,422 -4.50%

TOTAL SAFETY and SECURITY $691,762,913 $652,257,624 $27,579,620 -$5,985,921 $660,920,780 $8,663,157 1.27%

Science & Technology, Center for $15,970,730 $14,852,779 $0 -$668,375 $14,184,404 -$668,375 -4.50%

Space Industry Development Auth. $345,431 $321,251 $0 -$14,456 $306,795 -$14,456 -4.50%

TOTAL SCIENCE and TECHNOLOGY $16,316,161 $15,174,030 $0 -$682,831 $14,491,198 -$682,831 -4.50%

Election Board $7,565,358 $7,205,533 $0 $687,734 $7,893,267 $687,734 9.54%

Ethics Commission $837,229 $782,921 $0 -$35,231 $747,690 -$35,231 -4.50%

Libraries, Department of $5,219,448 $4,854,087 $0 -$218,434 $4,635,653 -$218,434 -4.50%

TOTAL SECRETARY OF STATE $13,622,035 $12,842,541 $0 $434,069 $13,276,609 $434,069 3.38%


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Appropriation Appropriation One-Times Adjustments Budget Book Adj. FY-2016 Adj. FY-2016

Arts Council $3,510,505 $3,264,770 $0 -$146,915 $3,117,855 -$146,915 -4.50%

Historical Society $11,578,014 $10,767,553 $0 -$484,540 $10,283,013 -$484,540 -4.50%

J.M. Davis Memorial Commission $274,385 $255,178 $0 -$11,483 $243,695 -$11,483 -4.50%

Scenic Rivers Comm. $270,984 $252,015 $0 -$11,341 $240,674 -$11,341 -4.50%

Tourism and Recreation, Department $19,621,453 $19,621,453 $0 -$882,965 $18,738,488 -$882,965 -4.50%Will Rogers Memorial Comm. $663,961 $617,484 $0 -$27,787 $589,697 -$27,787 -4.50%

TOTAL TOURISM $35,919,302 $34,778,453 $0 -$1,565,030 $33,213,422 -$1,565,030 -4.50%

Transportation, Department of $184,901,463 $184,901,463 $0 $20,267,890 $205,169,353 $20,267,890 10.96%

TOTAL TRANSPORTATION $184,901,463 $184,901,463 $0 $20,267,890 $205,169,353 $20,267,890 10.96%

Veterans Affairs, Department of $35,039,314 $32,705,562 $0 -$1,471,750 $31,233,812 -$1,471,750 -4.50%

TOTAL VETERANS AFFAIRS $35,039,314 $32,705,562 $0 -$1,471,750 $31,233,812 -$1,471,750 -4.50%

House of Representatives $16,663,074 $15,496,659 $0 -$697,350 $14,799,309 -$697,350 -4.50%

Legislative Service Bureau $4,892,835 $4,550,337 $0 -$204,765 $4,345,571 -$204,765 -4.50%

Senate $12,447,341 $11,576,027 $0 -$520,921 $11,055,106 -$520,921 -4.50%

TOTAL LEGISLATURE $34,003,250 $31,623,023 $0 -$1,423,036 $30,199,986 -$1,423,036 -4.50%

Court of Criminal Appeals $3,630,199 $3,376,085 $0 -$151,924 $3,224,161 -$151,924 -4.50%

District Courts $55,596,305 $55,414,564 $0 -$2,493,655 $52,920,908 -$2,493,655 -4.50%

Supreme Court $16,945,277 $16,459,108 $0 -$740,660 $15,718,448 -$740,660 -4.50%

TOTAL JUDICIARY $76,171,781 $75,249,756 $0 -$3,386,239 $71,863,517 -$3,386,239 -4.50%

REAP $10,884,894 $10,122,951 $0 -$455,533 $9,667,419 -$455,533 -4.50%

Total Appropriation $7,138,920,504 $6,756,920,442 $78,579,620 $171,969,226 $6,990,022,009 $233,101,567 3.45%


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FY-2016 Certified Revenues $5,851,664,555

Revenue Adjustments NEW REVENUE

ROADS and CIRB bond $450,000,000 $1,286,017,574

Cap ROADS and bond difference $52,700,000

Eliminate Sales Tax Exemptions $106,527,300 ONE TIME 34.99%

Eliminate Personal Income Tax Double Deduction $97,300,000 RECURRING 65.01%Make earned income tax credit nonrefundable $28,800,000

Reconciliation of income taxes withheld $4,485,450

Eliminate Coal Credit $1,750,000

Apportionment Equity $113,413,493

Eliminate Tourism apportionment $21,984,243

Eliminate Historical Society apportionment $1,516,154

Cap motor vehicle tax a pportionment at FY13 level $26,500,000

Cap cigarette tax apportionment at FY13 level $5,200,000

Cap gasoline tax apportionment at FY13 level $5,000,000

Cap diesel tax a pportionment at FY13 level $3,400,000

Cash Flow Reserve Fund Reform $125,000,000

Automated Revolving Fund Reconciliation $125,000,000

Non appropriated agency 10% revenue sharing $83,336,280

Tax Commission increased audit revenue $34,104,654

Commissioners of the Land Office Excess Certification -$236,835

Total Revenue $7,137,445,294

Appropriations $6,990,022,009

Ad Valorem Reimbursement $47,074,091

Debt Service Held Harmless $16,123,809

Maintenance of State Buildings Revolving Fund $0

Total Expenditures $7,053,219,909

Total Difference$84,225,385

gov. fallin's executive budget proposal 2.0

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