Stable, workable budget plan
The Legislature convened three months ago with the state budget in sound shape. Our ongoing commitment to fiscal responsibility made historic public education and teacher pay raises possible while infusing the state's savings accounts with record levels of cash for a rainy day.
Unfortunately, COVID-19 started a rainstorm in March that hasn't stopped since. With state economies shuttered nationwide, nearly every state government is projecting major revenue declines, with some already making service cuts.
Thankfully, harmful cuts will not be necessary in Oklahoma state government. The Legislature is swiftly enacting a balanced budget minimizing reductions in nearly all areas to a workable 4% or less.
When double-digit reductions were feared and expected by some, reductions of 4% or less will come as a relief to citizens who rely upon core services and the agencies that provide them.
In this budget, public schools are the top priority. Recent teacher pay raises are fully protected in this budget. We refuse to let a virus roll back the historic investments Oklahoma has made in education. As the branch of government closest to the people, the Legislature is fully aware Oklahomans want education dollars prioritized when times get tough.
Common education's small, 2.5% state appropriation reduction in this budget is fully offset when federal pandemic relief money for schools is considered. In fact, common education receives a 3% increase with those funds considered.
Reductions of 4% across most other agencies are workable and could be temporary. There is an increasing belief that revenue reductions will not be as severe as initially projected. If so, some budget reductions could be eased midyear when the economy stabilizes.
In the executive branch, the governor has extensive emergency funds and newfound control of agencies at his disposal to further mitigate cuts.
Some temporary fiscal changes helped balance this year's budget, including bonding road projects and a temporary reduction in increased pension allotments.
To be clear, no money is being taken out of transportation or pension funds. The transportation funds are fully offset by bonds, and more than $200 million in additional funds will still go to pension systems next year on top of existing employer and employee contributions.
Much like common education, legislators have worked too hard over too many years to risk destabilizing transportation or pension funding again, so this budget protects that progress over the long term.
The fiscal discipline of the past several years has allowed legislators to craft a stable, workable budget for Oklahoma during a challenging time. We encourage the governor to quickly sign it and provide the certainty state government needs right now.