2009 2009 Legislative and Budget Legislative and Budget ProcessProcess OverviewOverviewProcessProcess OverviewOverview

January 2009January 2009

Overview

I. Composition of the Legislature

II E i B hII. Executive Branch

III Legislative SessionIII. Legislative Session

IV Policy PathIV. Policy Path

V. Budget ProcessV. Budget Process

VI. Legislative Resourcesg

OKLAHOMA LEGISLATUREH f R t tiHouse of Representatives

o 101 Memberso Two-Year Elected Termso Republicans gained control of House in 2002 for first time since

1920o Current Breakdown: 61 Republicans / 40 Democratso 17 Newly Elected Representatives (2008) o 17 Newly Elected Representatives (2008)

o 12 Republicans, 5 Democratso Presided over by Speaker

State SenateState Senateo 48 Memberso Four-Year Staggered Elected Termso Republicans gained control of Senate in 2008 for first time evero Current Breakdown: 26 Republicans / 22 Democratso 6 Newly Elected Senators (2008)

o 5 Republicans 1 Democrato 5 Republicans, 1 Democrato Presided Over by President Pro-Temporeo Lt. Governor is the President of the Senate

Legislative SalaryOKLAHOMA LEGISLATURE

Legislative SalaryMembers - $38,400 (base)

P id t P T d S k $17 932 ( dditi l)President Pro-Tempore and Speaker - $17,932 (additional)

Committee Chairs, Leadership - $12,364 (additional)

All Members Receive Travel and Per Diem during Legislative SessionAll Members Receive Travel and Per Diem during Legislative Session

Terms of OfficeProhibition on holding multiple offices

A twelve-year term limit (beginning 1992)

Years in legislative office do not need not to be consecutive

Years of service in both the Senate and the House of Representatives are added together and included in determining the total number of legislative years in office

In the event of a vacancy in the Legislature, the Governor issues writs of election to fill the vacancies

House Majority LeadershipOKLAHOMA LEGISLATURE

House Majority Leadership

S S P T M F LSPEAKER

Chris Benge (R- Tulsa) SPEAKER PRO TEMPORE

Kris Steele (R-Shawnee)MAJORITY FLOOR LEADER

Tad Jones (R-Claremore)

FIRST ASSISTANT MAJORITY FLOOR LEADER

lMAJORITY WHIP

ik k ( id)• Ron Peters, R- TulsaASSISTANT MAJORITY FLOOR LEADERS

• Lisa Billy (R-Purcell)• George Faught (R-Muskogee)

D i J h (R D )

• Mike Jackson (R-Enid)DEPUTY MAJORITY WHIPS

• Marian Cooksey (R-Edmond)• Fred Jordan (R-Jenks)

S M i (R B l ill )• Dennis Johnson (R-Duncan)• Charles Key (R-Oklahoma City)• Todd Thomsen (R-Ada)• Harold Wright (R-Weatherford)C C J h W i h (R B k

• Steve Martin (R-Bartlesville)• Randy McDaniel (R-Oklahoma City)• Leslie Osborn (R-Tuttle)• Mike Sanders (R-Kingfisher)

C lb S h (R Y k )CAUCUS CHAIR – John Wright (R-Broken Arrow)CAUCUS VICE-CHAIR – Skye McNeil (R-Bristow)

• Colby Schwartz (R-Yukon)• Mike Thompson (R- Oklahoma City)• Weldon Watson (R- Tulsa)

House Minority LeadershipOKLAHOMA LEGISLATURE

House Minority Leadership

MINORITY LEADER MINORITY FLOOR LEADER

Danny Morgan (D-Prague) Mike Brown (D-Tahlequah)

DEPUTY FLOOR LEADERS

• Wes Hilliard (D-Sulphur)ASSISTANT FLOOR LEADERS

• Wallace Collins (D Norman)• Wes Hilliard (D-Sulphur)• Jerry McPeak (D-Warner)

MINORITY WHIP

• Wallace Collins (D-Norman)• Wade Rousselot (D-Wagoner)• Jabar Shumate (D-Tulsa)• Jeannie McDaniel (D-Tulsa)

• Ben Sherrer (D-Chouteau)

CAUCUS CHAIR

• Chuck Hoskins (D-Vinita)

• Larry Glenn (D-Miami)

Chuck Hoskins (D Vinita)

OKLAHOMA LEGISLATUREOKLAHOMA LEGISLATURESenate Majority Leadership

OKLAHOMA LEGISLATURESenate Majority Leadership

PRESIDENT PRO-TEMPORE MAJORITY FLOOR LEADER

Glenn Coffee (R-Oklahoma City) Todd Lamb (R-Edmond)

ASSISTANT MAJORITY FLOOR LEADERS

• Mike Mazzei (R –Bixby)MAJORITY WHIPS

• Cliff Branan (R –Oklahoma City)• Clark Jolley (R –Edmond)• Brian Bingman (R-Sapulpa)

• Mike Schultz (R –Altus)• Anthony Sykes (R –Moore)

CAUCUS CHAIR: John Ford (R – Bartlesville)

SENATE POWERSENATE POWER--SHARING AGREEMENTSHARING AGREEMENTOKLAHOMA LEGISLATURES Mi i L d hiSenate Minority Leadership

MINORITY LEADERCharlie Laster (D- Shawnee)

ASSISTANT LEADERS MINORITY WHIPSASSISTANT LEADERS

• Tom Adelson (D-Tulsa)• Sean Burrage (D-Claremore)• Jay Paul Gumm (D-Durant)

T I t (D S )

MINORITY WHIPS

• Roger Ballenger (D-Okmulgee)• Debbe Leftwich (D-Oklahoma City)• Susan Paddack (D-Ada)

Ch l W i k (D F i l d)• Tom Ivester (D-Sayre)• Richard Lerblance (D-Hartshorne)

• Charles Wyrick (D-Fairland)

CAUCUS CHAIRMAN: Kenneth Corn (D-Poteau)CAUCUS CHAIRMAN: Kenneth Corn (D Poteau)CAUCUS VICE-CHAIR: Judy Eason McIntyre (D-Tulsa)

EXECUTIVE BRANCHGovernor as Chief ExecutiveGovernor as Chief Executive

Elected four-year term, two-term limit

Powers and Duties:

The Governor is the head of state and chief executive for the State of Oklahoma

Commander in Chief of the Oklahoma National Guard

Y l “St t f th St t ” dd t th L i l t Yearly “State of the State” address to the Legislature (delivered first day of session)

Governor Brad Henry (D-Shawnee)

Elected Nov 2002, re-elected Nov. 20062006

Former State Senator

EXECUTIVE BRANCHE ti B h Offi i l (El t d)Executive Branch Officials (Elected)

Lt. Governor,Jari Askins

Attorney General,Drew Edmondson

State Treasurer,Scott Meacham

Insurance Commissioner,Kim HollandKim Holland

Corporation Commissioners,

State Auditor & Inspector,

Steve Burrage

Labor Commissioner,

Lloyd Fields

Superintendent of Public Instruction,

Sandy Garrett

Bob AnthonyJeff Cloud

Dana Murphy

EXECUTIVE BRANCHG H ’ C bi t (A i t d)Governor Henry’s Cabinet (Appointed)

Secretary of State: M. Susan Savage

Secretary of Agriculture: Terry PeachSecretary of Agriculture: Terry Peach

Secretary of Commerce and Tourism: Natalie Shirley

Secretary of Energy: Bobby Wegener

Secretary of Environment: J.D. Strong

Secretary of Finance and Revenue: Scott Meacham

Secretary of Health: vacantSecretary of Health: vacant

Secretary of Human Resources and Administration: Oscar B. Jackson

Secretary of Human Services: Howard Hendrick

Secretary of the Military: Harry M. “Bud” Wyatt III

Secretary of Safety and Security: Kevin Ward

Secretary of Transportation: Phil Tomlinsony p

Secretary of Science and Technology: Dr. Joseph W. Alexander

Secretary of Veterans Affairs: Norman Lamb

Regular SessionLEGISLATIVE SESSION

Regular SessionLegislative Sessions begin at noon on the first Monday in February and must adjourn by no later than 5:00 p.m. on h l F id i M the last Friday in May.

However, in odd number years (years following an election) the Legislature must meet on the Tuesday after the first M d i J f th l f d t i i th Monday in January for the sole purpose of determining the outcome of the statewide elections.

The current 2009 session is designated as the First Session f th 52 d L i l tof the 52nd Legislature.

Special SessionSpecial sessions can be convened as follows:

Issued jointly by two-thirds of the members of the Senate and two-thirds of the members of the House of R i ORRepresentatives, OR

Call of the Governor

Special sessions can run concurrent with regular sessions

POLICY PATHWh D Bill C F ?

Governor

Where Do Bills Come From?Request of a government agency or

Legislator’s interest

Interim Study

local government

Request of an interest group

Request of a constituentRequest of a constituent

National model legislation

(e.g. NCSL, ALEC)

PreparationAll bills must be requested and introduced by a legislator

Bill Request deadline –December 12, 2008

Bill Introduction deadline – January 15, 2009

A i i bill d b i bill d f d Appropriation bills, and some substantive bills, are drafted as “shell bills – specifics are initially left blank and filled in later

POLICY PATHVolume of LegislationVolume of Legislation

1,240 Senate bills and 42 Joint Resolutions introduced in 2009introduced in 2009

2,199 Senate bills introduced in the 51st Legislature (2007-08); 445 passed

1,269 House bills and 46 Joint Resolutions introduced in 2009

2 401 House bills introduced in 2007 2008; 388 2,401 House bills introduced in 2007-2008; 388 passed

Legislators may introduce an unlimited b f billnumber of bills

For non-leadership House members, only eight bills per session may be assigned to g b p o ay b a g d o committees for consideration (extra bills sent to Rules Committee)

POLICY PATH

Governor Brad Henry

POLICY PATHFirst Reading

Bill introduced by legislatorBill “ d” i h H S J lBill “read” into the House or Senate JournalProcedural motion – no votes required

Second ReadingPreliminary action for the referral of bills to committee for discussion and debate

Occurs the day following first reading

By order of the Speaker or Pro Tempore the bill can be By order of the Speaker or Pro-Tempore, the bill can be placed directly on the calendar for the consideration of the legislative body (the next legislative day)

POLICY PATHCommittee AssignmentCommittee Assignment

Bill assignments are determined by legislative leadershipSenate: Floor Leaders in consultation with the President Pro-Senate: Floor Leaders in consultation with the President ProTempore

House: Floor Leader in consultation with the Speaker of the House

Committee Structure Each committee and subcommittee has a Chair and Vice-Chair appointed by leadership

Chairs are all members of the majority party

Some Vice-Chairs in both chambers are members of the minority

Senate: 14 full standing committees and 5 subcommittees (appropriations)

House: 17 full standing committees and 7 subcommittees

Typically bills sent to the Appropriations Committee are those that Typically, bills sent to the Appropriations Committee are those that will have implementation costs and impact the state budget

Bills referred to the Appropriations Committee are further assigned to subcommittees for discussion and vote

Senate Committee Structure and ChairsAPPROPRIATIONS

Appropriations & Budget Committee• Sen. Mike Johnson (R-Kingfisher), Chair• Sen. David Myers (R-Ponca City), Vice-Chair

Education Subcommittee • Sen. James Halligan (R-Stillwater), Chair• Sen. John Ford (R-Bartlesville), Vice-Chair

Health & Human Services Subcommittee • Sen. Brian Crain (R-Tulsa), Chair• Sen. Patrick Anderson (R-End) – Vice-Chair

Gen Govt & Transportation Subcommittee • Sen. Randy Brogdon (R-Owasso), Chair

Public Safety and Judiciary Subcommittee • Sen. Anthony Sykes (R-Moore), Chair

STANDING COMMITTEES

• Sen. Brian Bingman (R-Sapulpa), Vice-Chair • Sen. Jim Reynolds (R-Oklahoma City), Co-Chair

Natural Res. & Reg. Svcs. Subcommittee • Sen. David Myers (R-Ponca City), Chair• Sen. Ron Justice (R-Chickasha), Vice-Chair

STANDING COMMITTEES

COMMITTEE CHAIR VICE-CHAIR

Agriculture and Rural Development Sen. Ron Justice (R-Chickasha) Sen. Mike Schulz (R-Altus)

Business and Labor Sen. Harry Coates (R-Seminole) Sen. Dan Newberry (R-Tulsa)y ( ) y ( )

Education Sen. John Ford (R-Bartlesville) Sen. Clark Jolley (R-Edmond)

Energy & Environment Sen. Brian Bingman (R-Sapulpa) Sen. Randy Brogdon (R-Owasso)

Finance Sen. Mike Mazzei (R-Tulsa) Sen. Gary Stanislawski (R-Tulsa)

G l G S Cl ff Ald d ( M d C ) S ll ( Ok l )General Government Sen. Cliff Aldridge (R-Midwest City) Sen. Roger Ballenger (D-Okmulgee)

Health and Human Resources Sen. Clark Jolley (R-Edmond) Sen. Sean Burrage (D-Claremore)

Judiciary Sen. Patrick Anderson (R-Enid) Sen. Susan Paddack (D-Ada)

Public Safety & Homeland Security Sen. Don Barrington (R-Lawton) Sen. Steve Russell (R-Oklahoma City)

Retirement & Insurance Sen. Bill Brown (R-Broken Arrow) Sen. Cliff Aldridge (R-Midwest City)

Rules Sen. Jonathan Nichols (R-Norman) Sen. Earl Garrison (D-Muskogee)

Tourism & Wildlife Sen. Mike Schulz (R-Altus) Sen. Jerry Ellis (D-Valliant)

House Committee Structure and ChairsAPPROPRIATIONS

G G t & T t ti S b itt Health Subcommittee

Appropriations & Budget Committee• Rep. Ken Miller (R-Edmond), Chair• Rep. Scott Martin (R-Norman), Vice-Chair

Gen Govt & Transportation Subcommittee• Rep. Guy Liebmann (R-Ok. City), Chair • Rep. Colby Schwartz (R-Yukon), Vice-Chair

• Rep. Doug Cox (R-Grove), Chair•Rep. Paul Wessellhoft (R-Moore), Vice-Chair

Human Services Subcommittee• Rep. Ron Peters (R-Tulsa), Chair

Judiciary and Public Safety Subcommittee• Rep. Randy Terrill (R-Moore), Chair

Education Subcommittee• Rep. Lee Denney (R-Cushing), Chair• Rep. Earl Sears (R-Bartlesville), Vice-Chair

Rep. Ron Peters (R Tulsa), Chair• Rep. Marion Cooksey (R-Edmond), Vice-Chair

Rep. Randy Terrill (R Moore), Chair• Rep. Mark McCullough (R-Sapulpa), Vice-Chair

Natural Resources & Reg. Affairs Subcttee• Rep. Dale DeWitt (R-Braman), Chair• Rep. Skye McNeil (R-Bristow), Vice-Chair

Revenue & Taxation Subcommittee• Rep. Jeff Hickman (R-Dacoma), Chair• Rep. Neil Brannon (D-Arkoma), Vice-Chair

STANDING COMMITTEES

ep. S ye c e ( s o ), ce C a ep. e a o ( o a), ce C a

COMMITTEE CHAIR VICE-CHAIRAdministrative Rules and Agency Oversight Rep. John Wright (R–Broken Arrow) Rep. George Faught (R-Muskogee)g y g p g ( ) p g g ( g )Agriculture and Rural Development Rep. Don Armes (R-Faxon) Rep. John Enns (R-Enid)Common Education Rep. Ann Coody (R-Lawton) Rep. Sally Kern (R-Oklahoma City)Economic Development & Financial Services Rep. Dan Sullivan (R-Tulsa) Rep. Randy McDaniel (R-Oklahoma City)Energy and Utility Regulation Rep. Mike Thompson (R-Oklahoma City) Rep. Weldon Watson (R-Tulsa)General Government Rep. Lisa Billy (R-Purcell) Rep. Dennis Johnson (R-Duncan)Government Modernization Rep Jason Murphy (R Guthrie) Rep David Derby (R Owasso)Government Modernization Rep. Jason Murphy (R-Guthrie) Rep. David Derby (R-Owasso)Higher Education and Career Technology Rep. Todd Thomsen (R-Ada) Rep. Bill Nations (D-Norman)Human Services Rep. Pam Peterson (R-Tulsa) Rep. Wade Rousselot (D-Wagoner)International Relations & Tourism Rep. Shane Jett (R-Tecumseh) Rep. Purcy Walker (D-Elk City)Judiciary Rep. Rex Duncan (R-Sand Springs) Rep. Fred Jordan (R-Jenks)Public Health & Social Services Rep. John Trebilcock (R-Broken Arrow) Rep. David Derby (R-Owasso)Public Safety & Homeland Security Rep. Sue Tibbs (R-Tulsa) Rep. Steve Martin (R-Bartlesville)Rules Rep. Gus Blackwell (R-Goodwell) Rep. Mike Jackson (R-Enid)Transportation Rep. T.W. Shannon (R-Lawton) Rep. Charlie Joyner (R-Midwest City)Veterans & Military Affairs Rep. Gary Banz (R-Midwest City) Rep. John Carey (D-Durant)Wildlife Rep. Phil Richardson (R-Minco) Rep. R.C. Pruett (R-Antlers)

POLICY PATHC i H iCommittee Hearing

Bills are considered by committees only if put on the agenda by the chair agenda by the chair.

Committee hearings may offer opportunities for supporters and opponents of legislation to have their voices heard about the issue about the issue.

Bills can be changed through amendments. A substantial change to a bill is rewritten as a “Committee Substitute.”

Bills are reported from committee with recommendationsIf the bill is not heard or it fails to receive a simple majority vote, it is said to “die in committee” (or “report progress”).

If the bill received a “do pass” motion and secured a majority vote of the committee members, the bill is printed and placed on the general order for consideration by the full body of the chamber.

Bills assigned to the Appropriations Committee must be Bills assigned to the Appropriations Committee must be approved by the subcommittee and the full committee before advancing.

POLICY PATHThird ReadingThird Reading

From committee, bills are placed on General Order and then brought up for a third reading for the full body of the g p g ychamber.

At this stage, bills are subject to further discussion, debate, and amendments. Substantial changes to a bill are written and amendments. Substantial changes to a bill are written as a “Floor Substitute.” House rules require that Floor Substitutes be submitted 48 hours prior to a bill’s hearing.

All bills advance if they receive a simple majority of votes All bills advance if they receive a simple majority of votes. Emergency Clauses attached to bills and measures that change the constitution require 2/3rds majority vote.

All bills have titles If members “Strike the Title ” the bill All bills have titles. If members “Strike the Title,” the bill becomes “defective” or “crippled.” This action slows down the progress of a bill and ensures that it receives further consideration This mostly happens to bills containing consideration. This mostly happens to bills containing financial impacts to the state or that are works in progress.

Bills that pass are transmitted to the other chamber.

POLICY PATHOpposite ChamberOpposite Chamber

Following successful passage of a bill in its chamber of origin, it becomes “engrossed,” and sent to the opposite g , g , ppchamber.

Bills advance through the same process of First Reading, Second Reading, committee consideration, and Third Second Reading, committee consideration, and Third Reading as in the original chamber.

There are some variations in the procedures used by each chamber as specified by the House and Senate Rules.p y

Bills can have their titles stricken during this process.

For bills that already have stricken titles, the second chamber may “Strike the Enacting Clause,” which further ensures that the bill will not advance without further consideration by both chambers.

If bills pass the opposite chamber unchanged, it becomes “enrolled” and is sent to the Governor for his/her action.

If bills are amended in any way, they are returned to the original chamber for additional consideration.

POLICY PATHAft Thi d R diAfter Third Reading

Once the bill returns to the original chamber, the author can:Move to accept the amendments. If approved by a vote of the chamber it is moved to Fourth Reading and Final Passage under the chamber, it is moved to Fourth Reading and Final Passage under the same rules as Third Reading; ORMove to reject the amendments and send the bill to conference committee.

Bill ith t i k titl d/ ti l t b t t Bills with stricken titles and/or enacting clauses must be sent to a conference committee to advance further.

Conference CommitteeA bill must be assigned to a conference committee for it to advance.Committees contain at least three members assigned by House and Senate leadership.Appropriations bills and bills with budgetary impacts may be referred to Appropriations bills and bills with budgetary impacts may be referred to the General Conference Committee on Appropriations (GCCA).Other than GCCA, few conference committees actually meet. Working with their colleagues, lobbyists, advocates, and state agency personnel key leaders assigned to the conference committee work out the personnel, key leaders assigned to the conference committee work out the details of the bill.

POLICY PATHConference Committee ReportsConference Committee Reports

A Conference Committee can:Accept the amendments from both houses. Reject the amendments of both houses and propose a Conference Committee Reject the amendments of both houses and propose a Conference Committee Substitute.Conference Committee Substitutes can often bear little resemblance to the original legislation proposed. They may contain language from bills that were defeated or not heard earlier in session. defeated or not heard earlier in session.

Action taken by a Conference Committee results in a Conference Committee Report (CCR). The report must gain a majority of signatures from members assigned to the committee from each chamber.

CCRs must lay over in the House 36 hours before it can be considered.Exception: final days of Session or suspension of the rules.

CCRs are submitted to a vote of the originating chamber first. Reports can be approved or rejected, but not amended.be app o ed o ejec ed, bu o a e ded.If a CCR is approved, it is then brought up for a vote on fourth and final reading. If approved, the CCR is brought to the second chamber for approval.If a CCR is rejected, another conference may be requested with the same or different members appointed by the two chambers.

POLICY PATHA i b h GAction by the Governor

An enrolled bill approved by both chambers is transmitted to the Governor. The Governor can do the following:

Sign the bill into law within five days.

Allow the bill to become law by taking no action within five days when

the legislature is in sessionthe legislature is in session.

Veto the entire bill. The legislature can override the Governor by a

2/3rd majority vote (68 votes from the House and 32 from the Senate).

If the bill contains an emergency clause the veto must be overridden If the bill contains an emergency clause, the veto must be overridden

by a 3/4th majority vote (76 votes from the House and 36 from the

Senate).

Li i di i i i i bill S h Line-item veto spending items in appropriations bills. Such vetoes are

similarly subject to being overridden by the legislature.

Following legislative adjournment, the Governor has fifteen days to

sign the bill, veto a bill, or exercise a “pocket veto” by taking no

action.

POLICY PATHL i l i D dli 2009 S iLegislative Deadlines: 2009 Session

DEADLINE 2009 SESSIONDEADLINE 2009 SESSION

First Legislative Day -- convenes at noon Monday, February 2, 2009

Senate Bills in Senate Committees deadline Thursday, February 19, 2009

Third reading of measures in House of origin Thursday, March 12, 2009

House Bills in Senate Committees deadline Thursday, April 3, 2009

Third reading of measures in opposite house Thursday, April 23, 2009

Sine Die Deadline, Adjournment, no later than 5:00 p.m.

Friday, May 29, 2009

Policy PathTo Track the Status and History of a Bill

1. Go to http://www2.lsb.state.ok.us/

2. Select “Status of Measures” from the middle column

3. Choose “Basic Search Form” from menu on left-hand column

4. Complete the Bill Search Form

To Find the Text of a Legislative Measure1 Go to http://www2 lsb state ok us/1. Go to http://www2.lsb.state.ok.us/

2. Select “Text of Measures” from the middle column

3 Select Chamber Session and Status of measure3. Select Chamber, Session and Status of measure

“Introduced” is initial version“Engrossed” is version that passed first chamber“E ll d” i fi l i“Enrolled” is final version

BUDGET PROCESSRevenue and BudgetRevenue and Budget

The legislature appropriates for the upcoming fiscal year (July 1 to June 30).

Constitutional Taxpayer Protections:Constitutional Taxpayer Protections:Constitutional requirement for a balanced budget.

Tax increases must be approved by a 3/4ths vote of the legislature or a vote of the people (SQ 640)vote of the people (SQ 640).

Annual limit on appropriations increases are set to 12% plus inflation.

Appropriation totals are based on projected revenue as certified by the pp p p j yEqualization Board in December (preliminary) and in February (final).

The Equalization Board is a constitutional body consisting of:

o Governor o Attorney General

o Lt. Governor

o State Auditor & Inspector

o State Treasurer

o President of the Board of Agriculture

o Superintendent of Public Instruction

Board projects upcoming revenue for the year for each appropriated

fund based on estimates of tax collections.

BUDGET PROCESSB d P Ti liBudget Process Timeline

MarchJanuaryJanuary February March MayApril JuneMarchJanuaryJanuary February March MayApril June

Governor Submits the Executive Budget to the

Legislative Review of State Agency Budgets

Passage of Budgets for State Agencies

State agencies submit budget

work program to Office of State

Legislature in Session

gOklahoma State Legislature for Consideration

Finance for approval

Final Review of Available Revenue for Expenditure by State

Legislature by the State Board of Equalization

June 30End of Fiscal Year

July 1

NovemberOctoberSeptemberAugustJuly December

State agencies

OSF Reviews State Agency Budget Requests; House and Senate Committees Hold Agency Performance Reviews Hearings

Beginning of the New Fiscal

Year

submit budget request to the Office of State

Finance

Preliminary Certification of State Revenue by the State Board of Equalization

for next year

BUDGET PROCESSTax CollectionsTax Collections

STATE REVENUE

Six Largest Sources accounted for 89% of all Tax Revenues – 2007

Personal Income Tax - 38.3%

General Sales Tax – 22.1%

Gross Production Tax (Severance) – 10.6%

Motor Vehicle Tax – 6.8%

Motor Fuels Tax – 4.5%

Corporate Income Tax – 6.3%

8,000,000

9,000,000

10,000,000

Oklahoma State Tax Collections by Major Tax Sources, in Thousands (Source: US Census Bureau)

4,000,000

5,000,000

6,000,000

7,000,000

1,000,000

2,000,000

3,000,000

Individual Income Tax General Sales Tax Motor Fuels Tax Motor Vehicle License Corporate Income Tax Severance Tax Other Taxes

BUDGET PROCESSAppropriating RevenueAppropriating Revenue

The largest fund subject to appropriations is the General Revenue Fund Fund.

Other major funds have restricted purposes.

The legislature cannot appropriate more than 95% of certified funds for the upcoming year. This allows for a budgetary cushion in case of a revenue shortfall.

Some funds are not certified and the legislature can appropriate 100% of the projected revenues.

During the fiscal year, if revenues meet expectations, the 5% reserve is deposited into the Cash Flow Reserve Fund and is available for appropriation.available for appropriation.

BUDGET PROCESSAppropriating RevenueAppropriating Revenue

About 83% of all appropriations are from the General Revenue Fund 1017 Education Reform Fund is 2nd largest source – 10%

State Expenditures by Revenue Source, in Millions (2008 Session Authorized Expenditures)

State Transportation

Fund, $208

OK Education

General Revenue Fund, $5,846

OK Education Lottery Trust

Fund, $69

Special Cash Fund, $104

Gross Production1017 Fund $617 Gross Production Tax - Oil Funds,

$142

1017 Fund, $617

Other Funds, $74

BUDGET PROCESSRainy Day FundRainy Day Fund

Revenues exceeding 100% of certification are deposited in the Constitutional Reserve Fund (known as the Rainy Day Fund) Constitutional Reserve Fund (known as the Rainy Day Fund), created in 1985.

During the fiscal year, if GR falls below 95% of the certified j i b d h f ll i d l d d h b d projection, a budget shortfall is declared and across-the-board

cuts proportional to the shortfall become necessary.

Money in the Rainy Day Fund can be spent as follows:

Up to 3/8th for a shortfall in current year General Revenue collections;

Up to 3/8th if projected General Revenues collections for the p / p jupcoming year are below General Revenue collections for the current fiscal year;

Up to 1/4th upon declaration of an Emergency and legislative approval; and

Up to $10 million from the RDF on tax incentives for at-risk manufacturers.

BUDGET PROCESSRainy Day FundRainy Day Fund

Rainy Day Balances, FY ‘01 to FY ‘09(opening balances in $ millions)

$461.3$496.7

$571.6 $596.6

$500

$600

$700

( p g )

$340.9

$217.5

$

$

$300

$400

$157.5

$72.3

$0.1$0

$100

$200

2001 2002 2003 2004 2005 2006 2007 2008 2009

FY ’03 and FY ’04 – State budget shortfalls depleted the Rainy Day Fund to $100,000.

2001 2002 2003 2004 2005 2006 2007 2008 2009

FY ’06, ’07, ‘08 – The Rainy Day Fund met and exceeded its constitutional cap.

BUDGET PROCESSS B dState Budget

Three main funding sources pay for government operations and programs:

State Appropriated Funds,

Federal Funds, and

Revolving Funds (fees, millage, co-pays, etc).

State agencies combine funding streams and sources.

St t i ith i t d i t dState agencies are either appropriated or non-appropriated.

Non-appropriated agencies are funded through fees, assessments,

contributions, etc. (examples: Oklahoma Public Employees

Retirement System, State Banking Department, Board of Nursing,

and others).

BUDGET PROCESSAppropriations History FY ’00 FY ‘09Appropriations History, FY 00 – FY 09

(in $ millions; includes supplementals; excludes non-recurring “spillover funds”)

$7 043 $7 089 $7,500

$6,217

$6,760 $7,043 $7,089

$6 000

$6,500

$7,000

$4,981

$5,389 $5,491

$5,191 $5,145

$5,459

$5,000

$5,500

$6,000

$4,000

$4,500

FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 (initial)

State appropriations fell in FY’03 and FY’04, but recovered strongly between FY’05 and FY’07Average annual rate of growth over nine-year period of 4.0%

(initial)

In December 2008, the State Board of Equalization certified $6,759.2 million in available revenue for FY ’10 – a decrease of $309.6 million (-4.4 percent) compared to the final FY ‘09 certification

BUDGET PROCESSState Appropriations by State Appropriations by

Appropriations Subcommittee, FY ’09(total appropriations: $7,089.3 million)(total appropriations: $7,089.3 million)

State AppropriationsState AppropriationsAmountAmount

($ Million)($ Million)($ Million)($ Million)

EducationEducation $3,793.8$3,793.8

l h & S l Sl h & S l S$1,214.7$1,214.7

Health & Social ServicesHealth & Social Services$ ,$ ,

Public SafetyPublic Safety $803.1$803.1

Human ServicesHuman Services $705.4$705.4

General GovernmentGeneral Government $381.8$381.8

N t l RN t l R $160 0$160 0Natural ResourcesNatural Resources $160.0$160.0

OtherOther $30.5$30.5

BUDGET PROCESSState Appropriations by State Agency FY ’09State Appropriations by State Agency, FY 09

[Total State Appropriations: $7,089.3 million]10 Largest Agencies - 88%10 Largest Agencies - 88%

Common Education

Higher EducationTransportation, 3%

Corrections, 7%

DHS, 8%

OHCA (Medicaid), 12%Transportation, 3%

Corrections, 7%

DHS, 8%

OHCA (Medicaid), 12%

Health Care Authority

Department of Human Services

Department of Corrections

Mental Health, 3%

Career Tech, 2%Juv. Affairs, 2%P blic Safet 1%

Mental Health, 3%

Career Tech, 2%Juv. Affairs, 2%P blic Safet 1%

Department of Transportation

Mental Health Department

Career & Technology Education

Public Safety, 1%Higher Ed, 15%

All Other

Agencies, 12%

Public Safety, 1%Higher Ed, 15%

All Other

Agencies, 12% Career & Technology Education

Juvenile Affairs

Public Safety

Common Ed, 36%

12%

Common Ed, 36%

12%

All Other Agencies - 12%

75 State Agencies

Recent Office HoldersG H S k S t P TGovernor House Speaker Senate Pro Tem

2009-10 Brad Henry Chris Benge Glenn Coffee2007-08 Brad Henry Lance Cargill/ Mike Morgan &

Chris Benge Glenn Coffee

2005-06 Brad Henry Todd Hiatt Cal Hobson/ Mike Morgan

2003-04 Brad Henry Larry Adair Cal Hobson

2001 02 Frank Keating Larry Adair Stratton Taylor2001-02 Frank Keating Larry Adair Stratton Taylor

1999-00 Frank Keating Lloyd Benson Stratton Taylor

1997-98 Frank Keating Lloyd Benson Stratton Taylor

1995 96 Frank Keating Glen Johnson Stratton Taylor1995-96 Frank Keating Glen Johnson Stratton Taylor

1993-94 David Walters Glen Johnson Bob Cullison

1991-92 David Walters Glen Johnson Bob Cullison

1989-90 Henry Bellman Jim Barker/Steve Lewis Bob Cullison1989-90 Henry Bellman Jim Barker/Steve Lewis Bob Cullison

1987-88 Henry Bellman Jim Barker Rodger Randle

1985-86 George Nigh Jim Barker Rodger Randle

1983-84 George Nigh Dan Draper/Jim Barker Melvin York1983 84 George Nigh Dan Draper/Jim Barker Melvin York

1981-82 George Nigh Dan Draper Melvin York

1979-80 George Nigh Dan Draper Gene Howard

LEGISLATIVE RESOURCESHelpful On Line ResourcesHelpful On-Line Resources

Oklahoma Legislature Home Pagewww.LSB.STATE.OK.US

o Link to House and Senate Homepageso Check Legislation – status, wording, intent, etco Search OK Statutes and Constitution

Office of State FinanceOffice of State Financewww.OSF.STATE.OK.US

o Governor’s Annual Budgeto Certification Estimates

O B k Okl h ’ Fi

State Treasurer’s Office

Open Book – Oklahoma’s Financeswww.OKGOV/OKAA/

o State spending and budget info

www.TREASURER.STATE.OK.USo Monthly Revenue Reporting

State Homepagewww OK govwww.OK.gov

Updated Budget and Tax Informationwww.OKPOLICY.org

FOR MORE INFORMATION:FOR MORE INFORMATION:

Email Email –– info@okpolicy.orginfo@okpolicy.org

www.www.OKPOLICYOKPOLICY.org.org