Starting 2018 With Positive Budget News!

State Board of Equalization Notes of Interest

Oklahoma Education Reform Act (1017 Fund)

• The 1017 funding levels should remain level through the end of FY19.
• The 1017 Fund's project collections should be $708,942,205.00 in FY18.
• This is 100% of the fund's estimate.
• We expect a $46,213,005 growth in the 1017 Fund by the end of FY19.
• One important fact: the authorized spending authority within the 1017 Fund was not reduced at this meeting.
  
• This is 100% of the estimated revenue into the fund, which is in place due to the state budget for FY18 not being
  finalized. This could be changed.
• This does make the spring look a lot easier and does lessen the likelihood of a cash flow issue or a revenue failure.
  
• We expect there will be $92,700,000 expended from the Ad Valorem Reimbursement Fund. The actual verbiage used at the meeting was ad valorem reimbursement funds paid to schools.
  

Other Factors in the State Budget

• The FY18 recertified revenue is $5,572,860,263 with an available appropriation of $5,294,724,458.
  
• FY17's certified revenue was $5,044,000,000, which was 3.4% or $175,900,000 below the estimated revenue.
  
• There is a net expectation of an $82,916,000 increase in gross production tax (oil) and $117,278,000 gross production tax (natural gas) due to legacy well changes.
• We see our sales tax base decline due to a variety of factors.
  
• The actual amount of FY18 revenue must be recertified in the February meeting.

What This Means:

• The cash flow issues due to the Technology Education Fund and the 1017 Fund should be mitigated this spring.
  
• Even though there is an $111,000,000 budget issue, it is not expected to cause a revenue failure.
  
• We should expect the allocation received at mid-term to be what you receive the rest of the spring.
  

Have a great
2018!

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