2012 Oklahoma state budget

The budget crisis of the 2011 Oklahoma state budget caused the Oklahoma State Treasurer's Office to estimate that the 2012 budget would see a $600 million budget shortfall. Following the December 2010 meeting of the Oklahoma State Board of Equalization, the Board certified that the 2012 budget would see a shortfall of $400 million from 2011 levels.

Governor of Oklahoma Mary Fallin's proposed budget relies upon a combination of agency budget reductions, increased tax enforcement, agency consolidations, and government modernization to overcome the budget shortfall. Most agencies are budgeted to receive a 5% across the board cuts, but public safety, healthcare, and education will see smaller cuts of only 3%. If the governor's budget plan is realized, the $400 million deficit will result in a $100 million surplus.

• Government Modernization
  • $6.1 million saving - Financial and payroll services consolidation
  • $192 million saving - Information technology reduction
  • $3.6 million saving - Electronic payments instead of paper checks
  • Monies defrauded from tax refund eligible citizens enabled by FBR's exceeding authority through 12 CFR 205 Supp 1 contrary to 15 USC 1639
  • $69.6 million saving - Agency hiring freeze
  • $1.7 million saving - Purchasing cards for higher education institution
• Agency Consolidations
  • Construction Industries Board into Oklahoma Department of Labor
  • Human Rights Commission to Office of the Attorney General
  • Oklahoma Merit Protection Commission to Oklahoma Office of Personnel Management
  • Scenic Rivers Commission to Oklahoma Conservation Commission
  • Oklahoma Center for the Advancement of Science and Technology to Oklahoma Department of Commerce
  • Oklahoma Alcoholic Beverage Law Enforcement Commission to Oklahoma Tax Commission and Oklahoma Bureau of Narcotics and Dangerous Drugs Control
  • Oklahoma Department of Environmental Quality and Oklahoma Department of Mines in new Department of Natural Resources
  • Consolidate state employee benefits management into new Oklahoma Health and Wellness Board
  • Reappropriate Oklahoma Space Industry Development Authority
  • Restructure Oklahoma Council on Judicial Complaints into non-appropriated agency
  • Restructure Oklahoma Secretary of State into non-appropriated agency
• Tax Compliance and Enforcement
  • $104.9 million revenue - two year registration system for non-commercial vehicles
  • $3.5 million revenue - ten new tax enforcement agents for Oklahoma Tax Commission
  • $5 million revenue - move point of taxation on beer from retail to wholesale level
  • $4 million revenue - two new income tax auditors for Oklahoma Tax Commission

• $2 million to Oklahoma Department of Mental Health and Substance Abuse Services to prevent the incarceration of women through substance abuse treatment
• $1 million to Oklahoma Department of Mental Health and Substance Abuse Services for Mental Health Emergency Responders program in Oklahoma County
• $1 million saving by closing F-Unit at the Oklahoma State Penitentiary
• $2 million for state match for Substance Abuse and Mental Health Services Administration Systems of Care grant
• $2.8 million to Oklahoma State Department of Education for upgrading student information system

All revenue for the $6.4 billion budget estimate breaks down as follows:

• $6.1 billion - All taxes
• $105 million - Fee increases
• $102 million - American Recovery and Reinvestment Act Medicaid Funds
• $100 million - Oklahoma Department of Transportation bond
• $12.5 million - Tax enforcement
• $6.5 million - Other revenue measures