[Cobo] FW: Update on Board of Equalization Meeting - April 20, 2020

[Mauck, Sheri]

From: Johnson, Dr. Glen
Sent: Monday, April 20, 2020 5:35 PM
To: Presidents <pres at osrhe.edu>
Subject: Update on Board of Equalization Meeting - April 20, 2020

OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION


Memo


To:                  Presidents
From:             Chancellor Glen D. Johnson
Date:               Monday, April 20, 2020
Subject:          Update on Board of Equalization Meeting - April 20, 2020


I wanted to let you know that at their meeting this afternoon, the Board of Equalization met by videoconference this afternoon. The following actions were taken with regard to FY2020 and FY2021:

FY2020
This afternoon the State Board of Equalization declared a general revenue failure of $416.9 million for FY2020. This shortfall represents a change of 6% from the figures that were certified in February 2020.  The shortfall could be covered by the use of funding in the Constitutional Reserve Fund made possible by SB 1053, SB 199, and SB617, which were passed by the Legislature on April 6, 2020.  The use of "Rainy Day" funds could fully fund the original appropriations for FY2020 and avoid budget cuts for the remaining two months of the fiscal year.

The Board of Equalization unanimously voted to approve the certification of the revenue shortfall for FY2020.  Voting in favor of the motion were Governor Kevin Stitt, Lieutenant Governor Matt Pinnell, Attorney General Mike Hunter, State Treasurer Randy McDaniel, State Superintendent Joy Hofmeister, State Auditor & Inspector Cindy Byrd, and Oklahoma Commissioner of Agriculture Blayne Arthur.

FY2021
During the Board of Equalization meeting, state officials also received a presentation on Oklahoma's financial picture for the fiscal year that begins July 1, 2020 from the Oklahoma Tax Commission. The slides from this presentation have been attached for your review.

The revised revenue projections show the state would have approximately $6.9 billion for FY2021. The current year's state budget was built on a revenue projection of $8.3 billion. This represents a $1.4 billion (16.6%) reduction in the revenue available for FY2021 that was certified by the Board of Equalization at their February meeting.

The Board of Equalization also voted on a motion to send a letter to the Legislature from Governor Stitt with the new estimated calculations provided by the Oklahoma Tax commission for FY2021 to consider as the total revenue available for the FY2021 budget.

I have attached the press release issued by Governor Stitt this afternoon following the Board of Equalization meeting as well as articles posted online by The Oklahoman and the Tulsa World.

Please let me know if you have any questions.

Thanks.

Glen

Glen D. Johnson
Chancellor
Oklahoma State Regents for Higher Education
655 Research Parkway, Suite 200
Oklahoma City, Oklahoma 73104
405.225.9122
gjohnson at osrhe.edu<mailto:gjohnson at osrhe.edu>
follow us on Twitter @okhighered


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