Stitt, legislators clash over agency budgets
It's early in Oklahoma's state budget process, but some legislators already are at odds with Gov. Kevin Stitt over budget proposals coming from the state agencies he oversees.
Stitt's administration has directed some agency heads to present nearly flat budget requests, but legislators say the proposals don't present an accurate picture of what those agencies need to serve Oklahomans. Mike Mazzei, Stitt's budget secretary, said the governor directed the state agencies that report to him to limit their budget requests to no more than 2% on top of what was appropriated in the current year.
“We do not really expect any growth revenue for the next fiscal year, so his focus is going to be on making sure that
the recurring expenses that are already built into agency budgets are being used in an efficient and effective manner,” he said.
Early budget projections for the fiscal year that will start on July 1 indicate the budget will be nearly flat, which means funds for new spending will be limited.
But some legislators are unhappy about how Stitt is trying to steer the budget process.
Perhaps the most resistance came when the head of t he Oklahoma State Department of Health said he plans to reduce the agency's budget by 1.5% and asked for $4.5 million less from lawmakers next year. Republican and Democratic lawmakers alike were
baffled at the notion that the department could reduce its funding and improve health outcomes in Oklahoma.
“I am concerned that we're not getting exactly what the needs of the agencies are,” said Senate Appropriations Chairman Roger Thompson. “The Health Department asked for a decrease in funding. Over the last few years, many agencies have suffered 25% or greater cuts. I know in rural Oklahoma that we still need health care.”
Some other state agencies have proposed flat budgets next year.
Thompson, R-Okemah, also def ended the Legislature' s budget process. He said he has discussed his position with Mazzei several times and reminded Stitt's budget guru that legislators, not the governor, control the state's purse strings.
“I believe in a conservative budget approach,” he said. “I've never believed in spending money to just spend money, but I do believe the Legislature must have open information from all of the agencies. Then, it's our job to vet that and come up with a balanced budget within the confines of the monies that we have to spend.”
With many state agencies on track to see significant cost increases for IT services next year, Thompson said he's concerned the departments can't cover those costs and meet the needs of Oklahomans under a minimal budget increase.
Members of the Senate's Health and Human Services Appropriations subcommittee recently grilled Oklahoma Department of Veterans Affairs Executive Director Joel Kintsel about the department' s flat budget proposal.
Sen. Greg McCortney, R-Ada, pointed out veterans affairs would actually lose money next year because the agency will have to cover a chunk of the $789,000 increase in IT fees, instead of receiving a budget increase to do so.
Oklahoma has a unique governance model in which the governor does not have oversight of all state agencies. Upon his election, Stitt immediately sought more control over state agencies, which the Legislature granted by giving the governor the ability to hire and fire five additional agency heads.
House Minority Leader Emily Virgin said this situation is why Democrats were so opposed to expanding the governor's power.
Previously, agency heads had the freedom to tell legislators their actual needs. Now, some of those leaders can't be as honest as they
may want to be, she said.
“Just as we predicted, I think you have people who are doing the governor's bidding, and I don't think that's good for anyone except the governor,” she said.
Legislative budget hearings will continue in the new year. But what has become clear in early budget hearings is that budgets proposed by state agency directors appointed by Stitt are coming in more conservative than some other state agencies.
In a recent budget hearing, Oklahoma Conservation Commission executive director Trey Lam said he'd heard talk of agencies trying to limit their budget proposals. Lam requested an additional $2.1 million in next year's budget, which he characterized as an honest assessment of the agency's needs.
“That' s what we' re doing here, bringing you the information, what the needs are, and then allowing you to prioritize those and make decisions that you, the appropriators, see fit,” he said.
St it tis working to improve the state's credit ratings, and all the credit rating agencies recommended growing the state's reserve accounts, avoiding budget deficits and diversifying the state's economy, Mazzei said.
“Gov. Stitt likes to tell everyone that he was elected to do things differently because doing the same old, same old wasn't improving outcomes,” he said. “We don't think it's financially prudent to start a financial strategy for the state that just automatically says we want to load up on big increases after two years of already very significant increases."