Governor Mary Fallin

FY 2017 Executive Budget 2.0

Five concepts none requiring supermajority votes can produce a FY 2017 appropriated budget that
responsibly funds government and puts the state on better financial footing in future years.
1. Transportation reform: $502.7M
2. Tax reform: $238.9M
3. Apportionment reform: $177M

4. Govt accounting reform: $333.3M

5. General appropriations bill

Cap ROADS at current level until FY 2019 and bond difference: $52.7 million annually in FY 17
and FY 18 ($59.7 million differential minus $4.5 million in dedicated debt service from motor
vehicle tax for $59.7 million annual bond)
Bond FY 2017 state and county funding to keep all plans intact: $450 million

Eliminate sales tax exemptions: $106.5 million (see Appendix A)

Eliminate personal income tax double deduction: $97.3 million
Make earned income tax credit nonrefundable: $28.8 million
Reconciliation of income taxes withheld: $4.5 million
Eliminate coal credit: $1.75 million

Apportionment equity: $113.4 million

Eliminate Tourism apportionments: $22 million
Eliminate Historical Society apportionment: $1.5 million
Cap gasoline tax apportionment at FY 13 level: $5 million
Cap diesel tax apportionment at FY 13 level: $3.4 million
Cap motor vehicle tax apportionment at FY 13 level: $26.5 million
Cap cigarette tax apportionment at FY 13 level: $5.2 million

Cash Flow Reserve Fund Reform: $125 million

Nonappropriated agency 10% revenue sharing: $83.3 million
Automated revolving fund reconciliation: $125 million (FY 18 fiscal impact; transfer via GA bill
for FY 17)

These bills free up nearly $1.3 billion in revenues for FY 2017 appropriations, two thirds of which are
recurring revenues. Additional recurring revenues would be produced in subsequent years as reforms in
these bills take full effect. The only one-time revenues proposed are the transportation bonds.
Upon passing these bills, a general appropriations bill can make FY 2017 appropriations of $6.9 billion,
or two percent less than FY 2016 appropriations prior to the midyear revenue failure, with agency
appropriations set as follows:

State Department of Education: Restore FY 2016 funding, hold flat for FY 2017
Career Technology: Restore FY 2016 funding, hold flat for FY 2017
Department of Corrections: Annualize FY 2016 supplemental, hold flat for FY 2017
Health Care Authority: Restore FY 2016 funding, hold flat for FY 2017
Department of Human Services: Restore FY 2016 funding, hold flat and appropriate $11.3
million to meet agency Pinnacle Plan request for FY 2017
Department of Mental Health and Substance Abuse Services: Restore FY 2016 funding, hold
flat for FY 2017
Health Department: Restore FY 2016 funding, hold flat for FY 2017
Transportation Department: Increase State Transportation Fund to February certification.
Tax Commission: Restore FY 2016 funding, add $3.9 million for FY 2017 for compliance
initiatives that will generate $34.1 million in additional sales tax revenue
Office of the Chief Medical Examiner: Hold flat for FY 2017
Office of Juvenile Affairs: Hold flat for FY 2017
Corporation Commission: Hold flat for FY 2017
School of Science and Mathematics: Hold flat for FY 2017
Oklahoma Indigent Defense System: Hold flat for FY 2017
Election Board: Provide $678,000 increase for FY 2017 to maintain necessary election services
*Office of the Attorney General: Eliminate appropriation
*Office of the State Treasurer: Eliminate appropriation
*Insurance Department: Eliminate appropriation
All other agencies: Appropriation reduction of 4.5 percent for FY 2017.

* These agencies have sufficient resources to permanently operate as nonappropriated entities.

The bill accesses $125 million from agency revolving funds for FY 17 appropriations.

Appendix A
Exemption
Sales to commercial airlines or railroads
Advertising
Tickets to NBA and NHL games
Sales of horses
Out-of-state purchases credit
Sale of tickets to professional sporting events

FY 2017 impact
$59,283,000.00
$47,667,000.00
$2,000,000.00
$1,342,000.00
$1,350,000.00
$492,000.00

Total
95%

$112,134,000.00
$106,527,300.00

FY-2016 Original
Appropriation

FY-2016 Adj. 7% GR
Reduction

FY-2016
One-Times

FY-2017
Adjustments

Final FY-2017
Proposed

FY-2017 $ From
Adj. FY-2016

FY-2017 %
Adj. FY-2016

$1,952,520
$1,952,520

$1,815,844
$1,815,844

$0
$0

-$81,713
-$81,713

$1,734,131
$1,734,131

-$81,713
-$81,713

-4.50%
-4.50%

$443,479
$443,479

$412,435
$412,435

$0
$0

-$18,560
-$18,560

$393,876
$393,876

-$18,560
-$18,560

-4.50%
-4.50%

Agriculture, Department of
Conservation Commission
Horse Racing Commission
TOTAL AGRICULTURE

$24,673,417
$9,958,106
$1,973,779
$36,605,302

$23,086,278
$9,261,039
$1,835,614
$34,182,931

$0
$0
$0
$0

-$1,038,883
-$416,747
-$82,603
-$1,538,232

$22,047,395
$8,844,292
$1,753,012
$32,644,699

-$1,038,883
-$416,747
-$82,603
-$1,538,232

-4.50%
-4.50%
-4.50%
-4.50%

Commerce, Department of
Labor, Department of
TOTAL COMMERCE

$23,775,603
$4,185,013
$27,960,616

$22,181,311
$4,185,013
$26,366,324

$0
$0
$0

-$998,159
-$188,326
-$1,186,485

$21,183,152
$3,996,687
$25,179,839

-$998,159
-$188,326
-$1,186,485

-4.50%
-4.50%
-4.50%

$133,872,467
$2,484,873,132
$3,391,234
$1,832,470
$963,412,106
$3,927,145
$6,574,553
$3,597,883,107

$124,893,064
$2,375,721,434
$3,153,848
$1,739,197
$907,212,825
$3,680,245
$6,574,553
$3,422,975,165

$0
$51,000,000
$0
$0
$0
$0
$0
$51,000,000

$8,979,403
$58,151,698
-$141,923
-$78,264
-$40,824,577
-$165,611
$0
$25,920,726

$133,872,467
$2,484,873,132
$3,011,924
$1,660,933
$866,388,248
$3,514,634
$6,574,553
$3,499,895,891

$8,979,403
$109,151,698
-$141,923
-$78,264
-$40,824,577
-$165,611
$0
$76,920,726

7.19%
4.59%
-4.50%
-4.50%
-4.50%
-4.50%
0.00%
2.25%

Governor
TOTAL GOVERNOR
Lt. Governor
TOTAL LT. GOVERNOR

Career Technology Education

Education, State Department of
Educational Television Authority
Education Quality & Accountability, Office of
Higher Education, Regents for
Physician Manpower Training
Science and Math, School of
TOTAL EDUCATION and WORKFORCE DEVELOPMENT

Corporation Commission
Environmental Quality, Department of
Mines, Department of
Water Resources Board
TOTAL ENERGY and ENVIRONMENT
Auditor and Inspector
Bond Advisor
Insurance Commissioner
Land Office, Commissioners of
Management and Enterprise Services
Merit Protection Commission
Tax Commission
Treasurer
TOTAL FINANCE, ADMINISTRATION and INFORMATION
TECHNOLOGY
Children and Youth, Commission
Disability Concerns, Office of
Health Care Authority
Health, Department of
Human Services, Department of
J.D. McCarty Center
Juvenile Affairs
Mental Health & Substance Abuse
OSU Medical Authority
Rehabilitation Services, Depart.
University Hospitals Authority
TOTAL HEALTH and HUMAN SERVICES

FY-2016 Original
Appropriation
$10,182,682
$6,776,896
$878,067
$6,243,259
$24,080,904

FY-2016 Adjusted
Appropriation
$10,182,682
$6,776,896
$816,602
$5,806,231
$23,582,411

$4,120,584
$125,282
$1,662,841
$8,538,600
$39,791,904
$429,802
$43,395,876
$3,186,715

FY-2016
One-Times

FY-2017
Adjustments

Final FY-2017
FY-2017 $ From
FY-2017 %
Appropriation
Adj. FY-2016
Adj. FY-2016
$10,182,682
$0
0.00%
$6,471,936
-$304,960
-4.50%
$779,855
-$36,747
-4.50%
$5,544,950
-$261,280
-4.50%
$22,979,423
-$602,988
-2.56%

$0
$0
$0
$0
$0

$0
-$304,960
-$36,747
-$261,280
-$602,988

$3,867,143
$116,512
$1,546,442
$8,538,600
$38,402,228
$399,716
$40,498,165
$2,970,295

$0
$0
$0
$0
$0
$0
$0
$0

-$174,021
-$5,243
$0
$0
-$1,728,100
-$17,987
$3,931,940
$0

$3,693,122
$111,269
$0
$8,538,600
$36,674,128
$381,729
$44,430,105
$0

-$174,021
-$5,243
-$1,546,442
$0
-$1,728,100
-$17,987
$6,829,651
-$2,970,295

-4.50%
-4.50%
-100.00%
0.00%
-4.50%
-4.50%
16.86%
-100.00%

$101,251,604

$96,339,101

$0

$2,006,588

$93,828,952

$387,562

0.40%

$1,972,863
$278,039
$971,050,513
$60,632,476
$678,946,518
$4,325,972
$98,999,033
$340,691,562
$11,503,144
$30,944,807
$39,486,955
$2,238,831,882

$1,834,763
$258,576
$907,224,477
$56,388,203
$635,200,262
$4,023,154
$92,069,101
$317,893,153
$10,697,924
$28,778,671
$36,722,868
$2,091,091,150

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

-$82,564
-$11,636
$63,826,036
$4,244,273
$55,046,256
-$181,042
$0
$22,798,409
-$481,407
-$1,295,040
-$1,652,529
$142,210,757

$1,752,198
$246,940
$971,050,513
$60,632,476
$690,246,518
$3,842,112
$92,069,101
$340,691,562
$10,216,517
$27,483,630
$35,070,339
$2,233,301,907

-$82,564
-$11,636
$63,826,036
$4,244,273
$55,046,256
-$181,042
$0
$22,798,409
-$481,407
-$1,295,040
-$1,652,529
$142,210,757

-4.50%
-4.50%
7.04%
7.53%
8.67%
-4.50%
0.00%
7.17%
-4.50%
-4.50%
-4.50%
6.80%

FY-2016 Original
Appropriation
$11,289,977
$11,289,977

FY-2016 Adjusted
Appropriation
$10,499,679
$10,499,679

$2,830,008
$13,903,809
$484,900,943
$38,846,686
$570,054
$1,619,633
$16,079,722
$13,743,685
$3,296,355
$9,697,043
$3,498,917
$2,466,681
$100,309,377
$691,762,913

Science & Technology, Center for

Space Industry Development Auth.
TOTAL SCIENCE and TECHNOLOGY
Election Board
Ethics Commission
Libraries, Department of
TOTAL SECRETARY OF STATE

Military, Department of
TOTAL MILITARY
ABLE
Attorney General
Corrections, Department of
District Attorneys and DAC
Emergency Management
Fire Marshal
Indigent Defense System
Investigation, State Bureau of
CLEET
Medicolegal Investigations
OBNDD
Pardon and Parole Board
Public Safety, Department of
TOTAL SAFETY and SECURITY

FY-2016
One-Times
$0
$0

FY-2017
Adjustments
-$472,486
-$472,486

Final FY-2017
FY-2017 $ From
FY-2017 %
Budget Book
Adj. FY-2016
Adj. FY-2016
$10,027,193
-$472,486
-4.50%
$10,027,193
-$472,486
-4.50%

$2,631,907
$12,930,542
$457,321,323
$36,127,418
$530,150
$1,520,259
$14,954,141
$12,991,627
$3,296,355
$9,018,250
$3,498,917
$2,294,013
$95,142,721
$652,257,624

$0
$0
$27,579,620
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$27,579,620

-$118,436
$0
$0
-$1,625,734
-$23,857
-$68,412
$1,125,581
-$584,623
-$148,336
$0
-$157,451
-$103,231
-$4,281,422
-$5,985,921

$2,513,472
$0
$484,900,943
$34,501,684
$506,293
$1,451,847
$16,079,722
$12,407,004
$3,148,019
$9,018,250
$3,341,466
$2,190,783
$90,861,298
$660,920,780

-$118,436
-$12,930,542
$27,579,620
-$1,625,734
-$23,857
-$68,412
$1,125,581
-$584,623
-$148,336
$0
-$157,451
-$103,231
-$4,281,422
$8,663,157

-4.50%
-100.00%
6.03%
-4.50%
-4.50%
-4.50%
7.53%
-4.50%
-4.50%
0.00%
-4.50%
-4.50%
-4.50%
1.27%

$15,970,730
$345,431
$16,316,161

$14,852,779
$321,251
$15,174,030

$0
$0
$0

-$668,375
-$14,456
-$682,831

$14,184,404
$306,795
$14,491,198

-$668,375
-$14,456
-$682,831

-4.50%
-4.50%
-4.50%

$7,565,358
$837,229
$5,219,448
$13,622,035

$7,205,533
$782,921
$4,854,087
$12,842,541

$0
$0
$0
$0

$687,734
-$35,231
-$218,434
$434,069

$7,893,267
$747,690
$4,635,653
$13,276,609

$687,734
-$35,231
-$218,434
$434,069

9.54%
-4.50%
-4.50%
3.38%

FY-2016 Original
Appropriation
$3,510,505
$11,578,014
$274,385
$270,984
$19,621,453
$663,961
$35,919,302

FY-2016 Adjusted
Appropriation
$3,264,770
$10,767,553
$255,178
$252,015
$19,621,453
$617,484
$34,778,453

$0
$0
$0
$0
$0
$0
$0

FY-2017
Adjustments
-$146,915
-$484,540
-$11,483
-$11,341
-$882,965
-$27,787
-$1,565,030

Transportation, Department of
TOTAL TRANSPORTATION

$184,901,463
$184,901,463

$184,901,463
$184,901,463

$0
$0

$20,267,890
$20,267,890

$205,169,353
$205,169,353

$20,267,890
$20,267,890

10.96%
10.96%

Veterans Affairs, Department of

TOTAL VETERANS AFFAIRS

$35,039,314
$35,039,314

$32,705,562
$32,705,562

$0
$0

-$1,471,750
-$1,471,750

$31,233,812
$31,233,812

-$1,471,750
-$1,471,750

-4.50%
-4.50%

House of Representatives
Legislative Service Bureau
Senate
TOTAL LEGISLATURE

$16,663,074
$4,892,835
$12,447,341
$34,003,250

$15,496,659
$4,550,337
$11,576,027
$31,623,023

$0
$0
$0
$0

-$697,350
-$204,765
-$520,921
-$1,423,036

$14,799,309
$4,345,571
$11,055,106
$30,199,986

-$697,350
-$204,765
-$520,921
-$1,423,036

-4.50%
-4.50%
-4.50%
-4.50%

Court of Criminal Appeals

District Courts
Supreme Court
TOTAL JUDICIARY

$3,630,199
$55,596,305
$16,945,277
$76,171,781

$3,376,085
$55,414,564
$16,459,108
$75,249,756

$0
$0
$0
$0

-$151,924
-$2,493,655
-$740,660
-$3,386,239

$3,224,161
$52,920,908
$15,718,448
$71,863,517

-$151,924
-$2,493,655
-$740,660
-$3,386,239

-4.50%
-4.50%
-4.50%
-4.50%

$10,884,894

$10,122,951

$0

-$455,533

$9,667,419

-$455,533

-4.50%

$7,138,920,504

$6,756,920,442

$78,579,620

$171,969,226

$6,990,022,009

$233,101,567

3.45%

Arts Council
Historical Society
J.M. Davis Memorial Commission
Scenic Rivers Comm.
Tourism and Recreation, Department
Will Rogers Memorial Comm.
TOTAL TOURISM

REAP
Total Appropriation

FY-2016
One-Times

Final FY-2017
FY-2017 $ From
FY-2017 %
Budget Book
Adj. FY-2016
Adj. FY-2016
$3,117,855
-$146,915
-4.50%
$10,283,013
-$484,540
-4.50%
$243,695
-$11,483
-4.50%
$240,674
-$11,341
-4.50%
$18,738,488
-$882,965
-4.50%
$589,697
-$27,787
-4.50%
$33,213,422
-$1,565,030
-4.50%

FY-2016 Certified Revenues

$5,851,664,555

Revenue Adjustments
ROADS and CIRB bond
Cap ROADS and bond difference
Eliminate Sales Tax Exemptions
Eliminate Personal Income Tax Double Deduction
Make earned income tax credit nonrefundable
Reconciliation of income taxes withheld
Eliminate Coal Credit
Apportionment Equity
Eliminate Tourism apportionment
Eliminate Historical Society apportionment
Cap motor vehicle tax apportionment at FY13 level
Cap cigarette tax apportionment at FY13 level
Cap gasoline tax apportionment at FY13 level
Cap diesel tax apportionment at FY13 level
Cash Flow Reserve Fund Reform
Automated Revolving Fund Reconciliation
Non appropriated agency 10% revenue sharing
Tax Commission increased audit revenue
Commissioners of the Land Office Excess Certification

$450,000,000
$52,700,000
$106,527,300
$97,300,000
$28,800,000
$4,485,450
$1,750,000
$113,413,493
$21,984,243
$1,516,154
$26,500,000
$5,200,000
$5,000,000
$3,400,000
$125,000,000
$125,000,000
$83,336,280
$34,104,654
-$236,835

Total Revenue

$7,137,445,294

Ad Valorem Reimbursement
Debt Service Held Harmless
Maintenance of State Buildings Revolving Fund
Total Expenditures

$6,990,022,009
$47,074,091
$16,123,809
$0
$7,053,219,909

Appropriations

Total Difference

$84,225,385

NEW REVENUE
$1,286,017,574
ONE TIME
RECURRING

34.99%
65.01%