Monday, March 7, 2016
OKLAHOMA CITY – Governor Mary Fallin today applauded the Oklahoma House of Representatives for passing a bill that would free up about $125 million annually for the General Revenue Fund, the state’s main spending account.
House Bill (HB) 3058 would automatically reconcile some agency revolving funds, which usually contain a total of about $1.5 billion. The House voted 56-28 to pass HB 3058. It now goes to the Senate.
“The transfer of monies from these accounts is often mischaracterized as one-time revenue, despite the fact the majority of these accounts replenish yearly,” said Fallin. “These funds are there every year. They are not one-time funds.”
The measure, by Rep. Tom Newell, was one of several ideas the governor proposed in her State of the State address last month to capture more than $900 million in recurring revenues for appropriations to help fund core services. The state is facing a $1.3 billion shortfall in the upcoming 2017 fiscal year, which begins July 1.
Under the measure, agency revolving funds would be automatically reconciled and the state Board of Equalization would certify the proceeds as revenues for appropriations. It would make those monies recurring revenues, instead of them being misclassified as one-time revenues.
If HB 3058 is passed by the Legislature and signed into law, the new process would take effect for the 2018 fiscal year budget, which begins July 1, 2017. Revolving funds would still have to be reconciled through the general appropriations budget bill for the upcoming 2017 fiscal year.