Oklahoma Gov. Brad Henry urges legislators to be precise with cuts [The Oklahoman, Oklahoma City]
Feb. 2--Gov. Brad Henry on Monday proposed using most of the state's savings account to deal with the state's fiscal crisis and to keep agency cuts this fiscal year at 7.5 percent.
His proposal calls for using about 80 percent of the nearly $600 million in the Rainy Day Fund for the current fiscal year. He wants to use $69 million in the 2011 fiscal year, leaving $43 million in the fund.
Because of low energy prices and the state feeling the effects of the national recession, estimates indicate the state will be about $530 million short by the end of this fiscal year, and that legislators will have about $1.3 billion less to appropriate this year compared with last year. The state constitution requires lawmakers develop a balanced budget.
"This budget crisis is precisely the kind of emergency that citizens envisioned 25 years ago when they voted to create the Rainy Day Fund," Henry told legislators during his eighth and final State of the State address.
"Now is the time to use our reserve dollars to preserve critical services."
State Treasurer Scott Meacham, who serves as Henry's chief budget adviser, said agencies face cuts of at least 15 percent for the remainder of this fiscal year without the Rainy Day Fund money.
House Republicans, who hadn't seen the Democratic governor's budget proposal before his speech, were quick to criticize. Normally, legislators receive advance copies of the governor's proposed budget, but the thick books were still at the printers because the state Capitol was closed for two days because of last week's winter storm.
"It is our intent to not spend more than three-eighths of the Rainy Day Fund for fiscal year 2010," said House Speaker Chris Benge, R-Tulsa.
Rep. Randy Terrill, chairman of a House budget subcommittee, was just as blunt.
"The governor's proposed executive budget for FY 11 may very well get the Pulitzer Prize in fiction," said Terrill, R-Moore.
Senate President Pro Tempore Glenn Coffee, R-Oklahoma City, said he had hoped to leave $150 million in the Rainy Day Fund when work on both budgets was done.
"I'm willing to work with the governor to come up with a reasonable figure," Coffee said. "Our revenue raising options are very limited."
Henry's proposal calls for using $424.1 million from the Rainy Day Fund to keep cuts to state agencies at 7.5 percent. Another $60.7 million is suggested to make up part of $101.4 million in emergency funds this fiscal year for public schools, prisons, rehabilitation services and the state's health care agency.
Legislators are urged to work together
Henry, unable to seek a third successive term, told the Republican-led Legislature that members must "wield the budget knife carefully with clinical precision."
"We cannot balance the budget at the expense of the most vulnerable among us," Henry said to legislators, who will be in session through late May.
Henry's comments during his 34-minute speech were warmly received. Lawmakers applauded him 46 times. He received several standing ovations, which included his calling to expand drug and mental health courts and to continue progress in education and teacher pay.
Benge said he was disappointed the governor didn't talk much about policy proposals. The budget will take up a majority of lawmakers' time, but "it doesn't have to suck the wind out of the whole session," he said.
Nearly 350 filled the House gallery, with several standing.
Part of the crowd was made up of an estimated 300 people who belong to the Oklahoma Constitutional Alliance, which is made of several groups such as the Sooner Tea Party and local chapters of the John Birch Society.
Charlie Meadows, chairman of the Oklahoma Conservative Political Action Committee, said many are concerned about the federal government increasingly interfering with the state. Some may decide to seek legislative office during the June filing period, he said.
Henry asked legislators to work together and leave out political rhetoric -- especially in this election year.
"Slashing government spending can make for catchy campaign rhetoric, but rhetoric has ramifications -- human ramifications -- that demand to be considered," Henry said.
Henry asked lawmakers to find money to pay for the increasing costs of the state's Insure Oklahoma program, which provides subsidized health insurance premiums for eligible small businesses and individuals. He also asked them to find a revenue source for a fund that provides money for research projects.
Henry also reminisced about accomplishments during his administration. They included working with legislators to move families with young children out of the Tar Creek Superfund site, reducing tobacco use among teens, replacing junk food in public schools, attacking the use of methamphetamines and building diabetes and cancer research centers.
He applauded legislators through the years for their efforts.
"Notice I'm saying we, not I," Henry said. "We do these things together."
CONTRIBUTING: JULIE BISBEE, CAPITOL BUREAU
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