Stillwater NewsPress

Oklahoma News

February 18, 2010

Lawmakers pass budget bills for FY2010 fix

Supplemental funding for some state agencies

OKLAHOMA CITY — Gov. Brad Henry and legislative leaders forged a fix for this year's budget crisis on Thursday, using federal stimulus funds and money from a state savings account to prevent trooper furloughs and ease cuts for education, health care and prisons.

Special budget committees in the House and Senate approved several funding bills to close an estimated $284 million hole in the budget for the fiscal year that ends June 30. As a result, supplemental funding will be given to state agencies that oversee education, health care, public safety, corrections and rehabilitation services.

While state agencies across the board have seen their budgets decrease by 7.5 percent this year, the supplemental funding will lessen the cuts in the targeted areas.

The funding bills still must be voted on by the full House and Senate and signed by Henry.

"This is an important step forward and I applaud legislative leaders of both parties for their hard work, but it's important to note we still face many challenges ahead," Henry said in a statement.

The state is facing a general revenue shortfall of about $669 million, which means collections to the state have come up short of the amount of revenue allocated to state agencies at the start of the year. The 7.5 percent agency budget cuts have totaled about $385 million, leaving what's left of the shortfall to be filled.

Under the bills, $223 million would be tapped from the state's Rainy Day Fund this year; another $223 million would go into a special cash fund for next year's budget. That would leave about $150 million in the constitutional reserve fund.

Henry, a Democrat, had proposed spending $485 million from the reserve fund on this year's budget, but GOP leaders in the House and Senate wanted to spend no more than $223 million.

The bills approved Thursday also provide supplemental funding, using a combination of stimulus money and Rainy Day funds, for colleges and public schools, health care, prisons and the Department of Public Safety.

From the federal stimulus money, about $37 million was appropriated for common education and $145 million for the Oklahoma Health Care Authority, the state's Medicaid agency. That leaves about $485 million in stimulus funds available for next year's budget.

The federal health care money, combined with a supplemental $33 million from state funds, will be enough to prevent massive rate cuts to Medicaid providers across the state, said OHCA spokesman Nico Gomez.

Beginning April 1, the Health Care Authority was scheduled to reduce Medicaid reimbursement rates by 6.75 percent to doctors, nursing homes and hospitals that provide services to low-income women and children, elderly residents and people with disabilities.

With the additional funding, the rate cut is expected to now only be 3.25 percent.

"A deep provider rate cut really puts our providers at risk and may mean our members don't have the access to health care services," Gomez said.

Also included in the bills: $3 million for the Department of Public Safety to prevent trooper furloughs that were to begin next month, $7.2 million for the Department of Corrections and $1.2 million for the Department of Rehabilitation Services, which provides assistance to disabled Oklahomans.

The funding bills only address the current fiscal year's budget and not the budget for fiscal year 2011 that begins July 1, when lawmakers have $1.2 billion less to spend than they did last year.

 

 

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