Oklahoma Revenue Failure of $416M Expected This Fiscal Year
Gov. Kevin Stitt said Friday Oklahoma will be $416 million short this fiscal year between an ongoing oil slump and the impact of the COVID-19 pandemic.
Usually, a revenue failure would result in automatic cuts to state agencies. The governor's office said the one currently projected would result in agency budgets being slashed 6.2%.
Stitt, however, has called for the State Board of Equalization to meet Monday to start the process of tapping the state’s $806 million Rainy Day Fund. Lawmakers have constitutional authority to spend up to $302 million, and Stitt’s recent emergency declaration would let them access another $201 million.
"As the last few weeks have demonstrated, it will take time to fully understand the impact COVID-19 will have on our state revenue. We must be very cautious and remain fiscally prudent to restrain spending as we work with the legislature on next year’s budget," Stitt said.
The state last declared a revenue failure in February 2017.