Cargill Cites 'Fiscal Realities,' Urges Budget Caution

Speaker Lance Cargill issued the following statement Tuesday after the State Board of Equalization revealed that Oklahoma will have half the available so-called growth revenue for the upcoming fiscal year as originally anticipated: "We must protect the promises that have been made on tax relief for hardworking families, and we should proceed with caution as we work out the details of the state budget for the upcoming year. The budget must be brought in line with the fiscal realities we face."

Governor Brad Henry said the Equalization Board's decision to slash the amount of money lawmakers can spend this year in half is no reason to panic. In December, the Equalization Board certified about $277 million in growth revenue, but lower projections on income taxes, sales taxes and oil and gas taxes led them to reduce new funding to $114 million today. Henry says his budget priorities will remain the same, saying education, health care, research investment, transportation and corrections are issues important to him and to legislators.

Henry says lawmakers should move quickly to provide emergency funding associated with $3,000 teacher pay raises and for overcrowded prisons. Henry also says he's disappointed that the new figures will cut funds going to roads and bridges from $170 million to $137.5 million.

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