Budget includes big funding boost for some state agencies

After years of budget cuts, state agencies will finally see more money sent to programs and employee salaries.

The Oklahoma Senate advanced the 2018 budget bill Wednesday. The $7.6 billion spending plan includes a funding increase for most agencies beyond the state employee and teacher salary raises adopted during the special session. If it passes and is signed by the governor, it would be the largest appropriation in state history.

The Department of Education’s budget would rise 20 percent, largely because of the teacher pay raise. The Oklahoma Health Care Authority, which administers Medicaid, would see an increase of more than 11 percent from last year.

Legislative leaders have said the funding increase to the Oklahoma Health Care Authority will help restore reimbursement rates for doctors and other health care providers who treat Medicaid patients.

The Department of Corrections is earmarked to receive a 7.1 percent funding hike, but not enough to pay for two new mediumsecurity prisons the agency has requested.

As a benefit to state agencies, lawmakers also significantly cut back on the practice of raiding revolving funds, which are accounts that departments use to save money for large projects. In all, the proposed budget contains just $41 million in sources of money that are only available once.

That figure is significantly less than in other years, partly because there isn’t much money left in state coffers for

lawmakers to raid as they negotiate how to pay for the next 12 months of state services.

In the past, legislative budget writers have relied on agency revolving funds to pay for yearto-year funding priorities. That behavior has since become an unpopular option with legislative leaders.

Another popular source to help fill budget shortfalls has been the Constitutional Reserve Fund, also known as the Rainy Day Fund. Repeated use of that fund has left it virtually dry.

David Blatt, executive director of the Oklahoma Policy Institute, said it’s a big difference than previous years when lawmakers would spend hundreds of millions of dollars in one-time funds instead of finding revenue they could count on collecting year after year.

“Reducing reliance on one-time funding is definitely a better way to go,” Blatt said. “There are positive signs that sow revenue collections are trending up.”

Senate Appropriation and Budget Chair Kim David said this budget is pulling money from the unclaimed property fund, the secretary of state’s

office and the Insurance Department.

“I would say that, structurally, this is the best budget that has passed off the floor in many years,” said David, who added that she hopes there will be enough money in the next few budgets to give agencies supplemental appropriations to make up for years of withdraws.

Oklahoma is expected to see revenue growth from taxes adopted during special session, along with changes to law last year on oil wells and automobile sales taxes.

“There are many policy changes that we’ve passed in the body that we’re now seeing revenue from,” David said on the Senate floor.

The budget bill now heads to the House where it will be heard during a rare Friday session.

The Senate will also meet Friday to shore up parliamentary action so that it reaches the governor’s desk more quickly.

Lawmakers hope to finish their work and leave the state Capitol by May 4, an achievable goal if they can have their budget signed into law.

Treat has said, however, that the official adjournment of the session may only occur after Gov. Mary Fallin signs or vetoes all legislation adopted in the final weeks of floor action.