Henry, GOP leaders announce Okla. budget deal that reduces state spending by 7.6 percent

Henry, GOP leaders announce Okla. budget deal

OKLAHOMA CITY — Democratic Gov. Brad Henry and Republican leaders of the House and Senate announced an agreement Thursday on a $6.68 billion state budget for the fiscal year beginning July 1 that reduces spending by about 7.6 percent.

The deal reached late Wednesday between Henry, House Speaker Chris Benge and Senate President Pro Tem Glenn Coffee cuts spending for common education by 2.9 percent, while the higher education budget will be reduced by 3.3 percent.

Lawmakers had about $1.2 billion less to spend this year than they did in 2009.

“In the face of a historic revenue shortfall, this was a very difficult and painful budget to craft, but I am proud that we were able to strike an agreement that largely protects the core services that are so important to Oklahomans and the state’s economic recovery,” Henry said in a statement.

The House and Senate still must pass several measures to raise revenue, including fee increases and a moratorium on several tax breaks, to make the budget balance.

“This budget is a true product of consensus, which means compromises were made on both sides of the aisle,” said Benge, R-Tulsa.

Earlier this week, lawmakers approved two separate bills to put on hold a variety of tax incentives that would save the state about $50 million. Bills to suspend additional tax incentives are expected before the Legislature adjourns by May 28.

According to the joint agreement, the Oklahoma Health Care Authority will receive a slight boost in funding to cover anticipated cost increases in health care programs. Cuts to the Department of Public Safety were limited to 1 percent to prevent trooper furloughs, while the Department of Corrections’ budget was cut 3 percent.

The Department of Veterans Affairs will see its appropriations trimmed 3.5 percent, while the Department of Mental Health will be cut by less than 1 percent.

The agreement also includes $5 million to fund senior nutrition programs and $12.4 million in Rural Economic Action Plan funding, two areas of funding Democrats in the House and Senate had insisted upon.

Senate Democratic leader Charles Laster said Thursday that Senate Democrats have not vowed to derail the budget plan.

“We’re not trying to draw lines in the sand,” said Laster, D-Shawnee. “We’re going to be reasonable.

“We’re going to consider the overall budget package when it’s proposed and make our mind up whether we think it’s sufficient.”