The Oklahoma budget is prepared by the director of state finance and submitted by the governor to the legislature each February. Article 10, section 23 of the Oklahoma Constitution requires a balanced budget. The constitution establishes a "Rainy Day" Fund into which general revenue fund revenues in excess of the certified estimate are deposited for emergency appropriation at a later date. All funds are "appropriated" pursuant to the constitution. In addition, state law authorizes a cash-flow reserve fund that can be up to 10% of the approved budget. The fiscal year is 1 July–30 June.
Taxes in Oklahoma provide over half of total treasury funds. In 2000/01, general fund revenues, at $5.055 billion, were comfortably above expenditures, which were $4.819 billion. In 2002/03, however, revenues dropped to $4.791 billion, and Oklahoma has since been faced with serious budget problems, particularly as costs have continued to rise. Across-the-board cuts have been mandated, as are required by the constitution. In 2001/02, the legislature made cuts totaling $173.7 million in the budget after it was enacted; in 2002/03, post-enactment cuts reached $427.2 million. Oklahoma's budget deficit was estimated at 20.6% of its state budget for 2002/03, and was projected at 15.9% of the state budget for 2003/04. In 2000/01, Oklahoma had a starting balance equal to 13.1% of expenditures. By 2002/03, the starting balance had dropped to 1% of expenditures.
The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.
($000) | PERCENT | PER CAPITA | |
Population (thousands, 2001) | 3,470 | (X) | (X) |
Total Revenue | 12,745,926 | 100.00 | 3,673.18 |
General revenue | 12,193,457 | 95.67 | 3,513.96 |
Utility revenue | 331,088 | 2.60 | 95.41 |
Insurance trust revenue | 221,381 | 1.74 | 63.80 |
Exhibit: Salaries and wages | 2,055,605 | 18.01 | 592.39 |
Total expenditure | 11,416,492 | 100.00 | 3,290.06 |
General expenditure | 9,797,462 | 85.82 | 2,823.48 |
Education | 4,979,111 | 43.61 | 1,434.90 |
Public welfare | 708,873 | 6.21 | 204.29 |
Hospitals | 166,664 | 1.46 | 48.03 |
Health | 379,888 | 3.33 | 109.48 |
Highways | 1,294,774 | 11.34 | 373.13 |
Police protection | 81,281 | 0.71 | 23.42 |
Correction | 486,255 | 4.26 | 140.13 |
Natural resources | 253,499 | 2.22 | 73.05 |
Parks and recreation | 77,846 | 0.68 | 22.43 |
Government administration | 436,448 | 3.82 | 125.78 |
Interest on general debt | 251,903 | 2.21 | 72.59 |
Other and unallocable | 680,920 | 5.96 | 196.23 |
Utility expenditure | 299,172 | 2.62 | 86.22 |
Insurance trust expenditure | 1,319,858 | 11.56 | 380.36 |
Debt at end of fiscal year | 5,985,516 | 100.00 | 1,724.93 |
Cash and security holdings | 24,581,619 | 100.00 | 7,084.04 |