Contact: State Rep. Mike Reynolds
Capitol: (405) 557-7337

OKLAHOMA CITY (November 10, 2009) – State Rep. Mike Reynolds today urged the director of State Finance and members of the State Board of Equalization to formally declare a "revenue failure" to "keep a bad budget situation from becoming worse."

"Revenue collections for the year are clearly falling far, far short of authorized spending and are unlikely to recover anytime soon," said Reynolds, R-Oklahoma City. "In light of these trends, it is grossly irresponsible to delay the declaration of a revenue failure any longer."

If the seven-member State Board of Equalization, chaired by the governor, makes a formal declaration of revenue failure, then and only then can the Office of State Finance cut monthly allocations. The Governor could also try to call the Legislature into Special Session at that time.

However, without a formal declaration from the board, Reynolds noted it is questionable if any budget cuts can legally be enacted.

Year-to-date collections for the first quarter of the fiscal year were $462.1 million below prior year collections and 26 percent lower than the official estimate. Collections for October are expected to continue that trend.

So far, agencies have be asked to reduce spending by 5 percent in spite of the 26 percent decline in revenue, Reynolds noted.

"To continue on the current path is a recipe for financial disaster," Reynolds said. "The math simply does not work – 5 percent spending cuts will not fill a 26-percent shortfall. If we continue to delay action until the final months of the fiscal year it will require agency cuts far greater than 26 percent in the space of a few months. The State Equalization Board has a duty to prevent that kind of chaos and should act now."

The seven-member State Board of Equalization develops the revenue estimate for the state budget. The board’s members include Gov. Brad Henry, Lt. Gov. Jari Askins, State Auditor and Inspector Steve Burrage, State Treasurer Scott Meacham, Attorney General Drew Edmondson, Board of Agriculture President Terry Peach, and state Superintendent of Public Instruction Sandy Garrett.

Currently, all the board members are Democrats.

"I certainly hope the board is not delaying action on the budget for partisan reasons," Reynolds said. "Although the State Board of Equalization is controlled by Democrats and the Legislature is controlled by Republicans, we have a duty to work together in a responsible manner to address budget problems that impact all Oklahomans. This is not the time for cynical political games."