Work Continues on State Budget

By Alex Cameron, NEWS 9

OKLAHOMA CITY -- State lawmakers are preparing to approve a budget for fiscal year 2010 that will represent a nearly two percent increase in spending over the current fiscal year, despite a revenue shortfall of about $600 million.

Negotiators from the House, Senate, and Governor's office reached a compromise on the $7.2 billion spending plan late last Thursday night, and the first floor votes could take place Tuesday.

With the help of more than $500 million in federal stimulus funds, a few budget areas, like education, corrections and health care, should actually see slight increases in funding.

"I wouldn't say I'm a fan of the way congress did the stimulus package, I would say the dollars in transportation, education and health care really helped our budget this year," State Treasurer Scott Meacham said.

Most departments, though, like agriculture, public safety, even the governor's office, will see cuts, as much as seven percent. Officials say those cuts will result in some cuts in services and, most likely, some job loss as well.

"In a lot of cases, there's enough dollars in agencies to where there will not be cuts, but I'd imagine a few agencies there will be some hiring freezes or possibly some temporary furloughs, but overall, with the shortfall we had this year, I think the budget provides a lot of dollars," said Sen. Mike Johnson.

Indeed, a budget that started about $600 million short of last year's mark, now, thanks to the stimulus money, will actually top last year's by almost two percent. And that has advocates of a program intended to help rural Oklahoma, called REAP, wondering why their $15 million budget got nixed completely.

"We understand that REAP needs to take a cut like every other program in Oklahoma, but we don't think it should be the one that gets zeroed out and that the balanced budget for Oklahoma gets balanced on the backs of the rural communities," said Sen. Kenneth Corn.

Other advocacy groups had urged budget writers to tap the state's Rainy Day Fund so the prospect of layoffs could be avoided altogether. But lawmakers chose not to do so, saying they want to have that money in hand for next year when the revenue picture could be even more dire.