2005 Oklahoma state budget

Overview

Fiscal Year 2004 saw revenue increase for the first time since FY2002. FY2005 represented the first budget year following a four-year recession

Major initiatives

The Governor's budget identified the following three major objectives:

• Education – increase teacher salaries to the regional average over a five-year period
• Health Care – expand health insurance to the uninsured poor, decreased youth tobacco usage, increase funding for trauma care and establish a Cancer Research Center
• Economic Growth – exempt capital gains from individual income taxes, reduce taxes on the retired and permanently reduce individual income tax rate from 7% to 6.65%

Key funding issues

The Governor's budget identified the following key funding issues:

• Health Care - $201 million increase, including:
  • $100 million for expanded health insurance for uninsured poor
  • $7 million for cancer research center
  • $8.9 million for trauma care
  • $3 million for youth tobacco prevention and cessation programs
• Education - $114.3 million increase, including:
  • $62.4 million for provide 100% of public teachers' health insurance premiums
  • $27 million for higher education scholarships
• Public Safety - $6 million increase, including:
  • $6 million for Oklahoma Department of Corrections to annualize supplemental appropriation
  • Authorize a 72-member cadet academy for the Oklahoma Highway Patrol
• Transportation - $6.2 million increase to the Oklahoma Department of Transportation for debt payments
• Human Services - $17.6 million increase, including:
  • $15 million to Oklahoma Department of Human Services' Child Care program
  • $2 million Oklahoma Department of Human Services to prepare young children for school
  • $570,000 to Oklahoma Office of Juvenile Affairs to replace one-time revenue
• Commerce, Tourism, Energy, Environment - $7.5 million increase:
  • $5 million to Tar Creek Trust Authority for voluntary relocation plan
  • $1.3 million to Oklahoma Historical Society for debt services
  • $1.2 million to Oklahoma Department of Commerce for new manufacturing program

Total revenue

Tax revenue for Fiscal Year 2005 was $5.2 billion, up 4.9% from FY2004 levels of $4.9 billion. All revenue of the fiscal year 2005 was $5.5 billion, up 7.4% from FY2004 levels of $5.16 billion. The breakdown is as follows:

• $5.148 billion - All Taxes
  • $1.97 billion - Individual Income Tax
  • $1.33 billion - Sales Tax
  • $361 million - Gross Production Tax
  • $217 million - Motor Vehicle Tax
  • $101 million - Corporate Income Tax
  • $1.17 billion - All Other Taxes
• $356 million - Revenue Increases

Total spending

The Governor's budget for Fiscal Year 2005 totaled $5.49 billion in spending. Percentages in parentheses indicate percentage change compared to 2004. The budget request is broken down by the following expenditures:

• Appropriations by Cabinet Department: 5.49 billion (+6.7%)
  • $2.97 billion - Education (+4%)
  • $839 million - Health (+32%)
  • $568 million - Human Services (+4%)
  • $516 million - Safety and Security (+1%)
  • $199 million - Transportation (+3%)
  • $82.4 million - Finance and Revenue (+2%)
  • $67.3 million - Commerce and Tourism (+5%)
  • $63.2 million - Judiciary (+7%)
  • $31.6 million - Legislature (+0%)
  • $29.2 million - Veterans Affairs (+8%)
  • $28.2 million - Agriculture (-1%)
  • $19.3 million - Human Resources and Administration (-7%)
  • $17.2 million - Environment (+41%)
  • $11.7 million - Science and Technology (+6%)
  • $8.7 million - Energy (+0%)
  • $7.9 million - Secretary of State (-15%)
  • $7.8 million - Military (+11%)
  • $3.0 million - Governor and Lieutenant Governor (+0%)
• Appropriations by agency: $5.49 billion (+6.7%)
  • $2.0 billion - Department of Education
  • $796 million - State Regents for Higher Education
  • $482 million - Health Care Authority
  • $404 million - Department of Human Services
  • $380 million - Department of Corrections
  • $198 million - Department of Transportation
  • $151 million - Department of Mental Health and Substance Abuse Services
  • $117 million - Department of Career and Technology Education
  • $90.5 million - Office of Juvenile Affairs
  • $63.1 million - Judiciary
  • $62.5 million - Department of Public Safety
  • $56.5 million - Department of Health
  • $44.4 million - Tax Commission
  • $31.6 million - Legislature
  • $29.2 million - Department of Veterans Affairs
  • $26 million - District Attorneys Council
  • $25 million - Department of Rehabilitation Services
  • $22.9 million - Department of Tourism and Recreation
  • $22.8 million - Department of Commerce
  • $22.4 million - Office of State Finance
  • $22.3 million - Department of Agriculture
  • $404 million - All Other Agencies

References

References

1. "Legislature Completes Budget Work Early {{!}} Oklahoma Senate".
2. Office of State Finance, Budget Division, the Fiscal and Research Division and the State Comptroller. (2004). "FY-2005 Executive Budget". Central Printing.