[Oasfaa] State Budget Agreement Announced

[Fair, Bryce]

This afternoon, Leaders of the Oklahoma Legislature announced a major budget agreement that includes supplemental funding for Oklahoma's Promise-OHLAP.  We don't have details on exactly when the actual bills will be passed so we don't know yet when the funding will be made available to the State Regents for payment of the remaining spring semester claims.  We will try to let you know as soon as we get more information.

Following is an article from the Daily Oklahoman website.  Also below are links to two press releases from the Senate President Pro Tempore (Democrat) and Senate Co-President Pro Tempore (Republican).

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Tax cuts, budget plan unveiled
March 19, 2007

By John Greiner and Jennifer Mock
Capitol Bureau

Legislative leaders announced a budget package today that includes four tax cuts for Oklahomans and has enough money to cover some of this year's shortages and finance government for the next fiscal year.

Budget increases for the coming fiscal year will range from less than 1 percent to more than 2 percent to The agreement will accelerate the income tax rate cuts adopted last year, give Oklahomans a sales-tax-holiday in August, a tax credit for stay-at-home parents and a franchise tax exemption for businesses owing $250 or less a year.

The plan will cut $15.3 million in taxes in the first year of the tax cuts and $75.1 million in the plan's second year.

The income tax plan, which passed the House of Representatives last week, reduces the tax rate from 5.65 percent to 5.5 percent in fiscal year 2008, which begins July 1, and 5.25 percent in 2009.

The state Department of Education will get a supplemental appropriation for this year of nearly $60 million, which includes money for schools to pay Social Security and retirement contributions for teachers. This money is connected to the $3,000 pay raises granted by the Legislature last year.

Public schools were making plans for teacher layoffs if this money wasn't provided.

State Regents for Higher Education will get $5.5 million to fully finance the obligations of its Oklahoma Higher Learning Access Program for high school students whose families earn less than $50,000 annually.

The state Corrections Department got only $9.6 million of the $41 million it sought to pay bills through this fiscal year.

Legislative leaders said they will continue to monitor the Corrections Department in case more money is needed.

In the fiscal year that begins July 1, the agreement will give education $81.4 million, a 2.3 percent increase over last year.

Public safety operations will receive $740.2 million, an increase of 2.7 percent over the previous year.

House Speaker Lance Cargill said more than half the state agencies will get less than 1-percent increases.

Some other agencies will get between 1- and 2-percent increases.

Gov. Brad Henry said he was encouraged by the progress on supplemental funding for education and other emergency needs.

But he said he's disappointed that legislative leaders rolled emergency and regular spending items in what amounts to the largest spending bill in state history.

"By lumping $7 billion in spending into a single bill, legislative leaders have stifled debate about individual budget items and forced lawmakers to make an all-or-nothing decision without any real input," Henry said. "Fortunately, the line-item veto provides the governor with more flexibility and discretion."

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Press Release by Senate President Pro Tempore Mike Morgan: http://www.oksenate.gov/news/press_releases/press_releases_2007/pr20070319b.html

Press Release by Senate Co-President Pro Tempore Glenn Coffee: http://www.oksenate.gov/news/press_releases/press_releases_2007/pr20070319c.html

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Bryce Fair 
Assoc. Vice Chancellor for Scholarships & Grants 
Oklahoma State Regents for Higher Education 
Phone:  (405) 225-9162 
Fax:  (405) 225-9230 
E-mail:  bfair at osrhe.edu 
Mailing Address: 
P.O. Box 108850 
Oklahoma City, OK  73101-8850 
Street Address: 
655 Research Parkway, Suite 200 
Oklahoma City, OK  73104