Rainy day funds prop up Oklahoma budget plan

The Oklahoma Senate has approved a bill that will cut funding to most state agencies and will spend cash reserves to finish plugging a budget shortfall after lawmakers failed to pass a broad package of tax increases.

Its fate now rests with Republican Gov. Mary Fallin.

Cuts of about 2.5 percent are expected for most agencies to make up for expected revenue lost from an unconstitutional cigarette tax the Legislature approved in May. The rest of the $215 million budget hole would be filled by using several sources of one-time money, including savings accounts.

The Department of Human Services, the Oklahoma Health Care Authority and the state Department of Mental Health would have received $215 million dollars from that cigarette fee if it hadn't been judged to be unconstitutional.

Those agencies now face cuts between $4 million and $5 million.

State Rep. Pat Ownbey (R-District 48) said there was simply no other way out.

"I think it's something most members didn't want to see, but when we did not pass the bill last week -- it fell about five votes short to try to get some revenues -- it was really the only option we had left," he said.

Ownbey explained why he didn't support the legislation. "We are going into rainy day funds; we're going into all these funds that we would probably use next year normally if we need to fill some of these holes," he said. "Well, guess what? Now that money won't be there now."

At this point, Ownbey said passing any bill to raise revenue is easier said than done.

"Now that the bar is set at three-quarters, or 75 percent, in the 27 years this state question has been in existence, since it's been in the Constitution, we've never seen a revenue-raising measure pass," he said.

In a written statement, Senate President Pro Tem Mike Schulz (R-District 38) said this is not how the Senate wanted resolve the budget shortfall.

"But given the inability of the House to successfully pass revenue-raising measures, it’s the best option left to avoid devastating cuts to three health care agencies," he said, adding that essential mental health programs and health care waiver programs will endure if Gov. Fallin signs the legislation.

Lawmakers returned to the Capitol on Sept. 25 for a special session to fix the budget and find longer-term solutions to chronic shortfalls that have forced deep cuts to agencies and services for three consecutive years.

KTEN's Colton Thompson reported from Ardmore; The Associated Press reported from Oklahoma City

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