Across the country, the core constitutional objective for state governments during their legislative sessions is passing a state budget. The same is true for Oklahoma.
As the State Treasurer, I serve on the Board of Equalization (BOE), which is comprised of six statewide elected officials and one appointed official. The BOE provides an estimate of all revenue that’s available to be appropriated for the upcoming fiscal year.
Using this estimate, the Governor presents an executive budget proposal during his State of the State address, House and Senate leaders hold committee hearings to consider additional spending requests, and then negotiations ensue.
The Oklahoma Constitution and statutes require the approval of a balanced budget for the next fiscal year. In order to provide some breathing room, appropriations are limited to no more than 95% of certified revenue estimates.
The wisdom of our forefathers is clear. Compared to many states, Oklahoma has stringent budgeting standards. These conservative principles are designed to prevent deficits and the accumulation of massive and unmanageable debts.
Reaching a consensus is never easy. The Governor and members of the House and Senate will usually have different ideas on how best to allocate the funds to move the state forward.
As a former State Representative, I fought for my constituents and communities and expected my colleagues to do the same. When our priorities were not aligned, we had to find a way to work together and iron out the differences. The back and forth of this year’s budget negotiations show this tradition continues.
Since representatives of our government are free to express their differences of opinions, the final outcome is usually more reflective of the entire state’s needs and goals. The approved budget makes record investments in education, reduces the tax burden on small businesses, and saves money for future rainy days and needed infrastructure investments.
No budget is perfect. Each elected official would craft something different if working alone. However, this is not how the system works, nor should it be.
The hard-won agreements of last session were accomplished within the parameters of our balanced budget requirements and will lay the foundation for a more secure future.
