The Revenue
Process
The Revenue Process
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Board of Equalization
December Board of Equalization Meeting
Governor’s Executive Budget
February Board of Equalization Meeting
June Board of Equalization Meeting
Constitutional Reserve Fund (Rainy Day Fund)
Cash Flow Reserve Fund
Constitutional Provisions
Article X Section 23
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Ensures a Balanced Budget
Sets up the Revenue Certification Process
Establishes the Constitutional Reserve Fund
Provides for Monthly Allocation of Revenue
Allows for Reduction of Appropriations
Board of Equalization
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Constitutional Entity - sets Appropriations
Authority; Other Constitutional and
Statutory Duties
Members:
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Governor
Lt. Governor
Treasurer
Superintendent of Education
Attorney General
Auditor and Inspector
Secretary of Agriculture
December Board of Equalization
Meeting
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Between 35 to 45 days before the start of session
(around Christmas)
Certify the amount of actual collections to
certified funds in the previous fiscal year
Certify the legislative appropriations authority
for the next fiscal year – 95%
Board of Equalization
Certified Funds
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Certified Funds are funds appropriated by
the Legislature
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General Revenue Fund
C.L.E.E.T Fund
Commission of the Land Office Fund
Mineral Leasing Fund
OHSA Fund
Public Building Fund
OK Education Lottery Trust Fund
Additional Responsibilities
Statutory:
 Preliminary Finding concerning SB685 –
Individual Income Tax Trigger
 Remove Oklahoma’s Promise funding from
the General Revenue Fund estimate
Informational:
 Rebuilding Oklahoma Access and Driver
Safety Fund (ROADS Fund)
Certification Packet
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Most estimates are based on data compiled by the Tax
Commission, using actual collections, expected fiscal
impacts, projections from the OSU Econometric
Model, Global Insight projections, local and global
energy market prices, as well as other benchmarking
and trending data.
Estimated General Revenue, certified and special funds
collections are included in the packet as required by
statute.
Agencies submit estimates of revenue for any certified
funds that they collect.
BOE certifies the total estimated collections to
certified funds and the appropriations authority.
Executive Budget Book
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The total amount certified in the
December meeting will be used as the
basis for the Governor’s budget.
February Board of Equalization
Meeting
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Within 5 days of the monthly apportionment in
February
Adjust estimates of revenue based on updated
current collections and economic data
“May” adjust the certification of funds available
for appropriation
Certify the limit on growth of appropriations
Additional Responsibilities
OK Education Lottery Trust Fund
Finding
 Individual Income Tax Trigger Finding –
(Preliminary in December)
 Subtract OHLAP funding from GR for
certification
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Legislative Budget
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The February certification will be used
by the Legislature to develop and
negotiate the final budget.
June Board of Equalization
Meeting
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Only meeting to adjust the official estimate
Adjust official estimate to reflect fiscal impacts
from law changes passed during session
Re-certify the estimated revenue and the
appropriations authority
Final, official estimate for the coming fiscal year
Year End Actions
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Fulfill all appropriations and allocations
Reconcile all General Revenue Reports
Estimate monthly revenue for up-coming
fiscal year based on BOE certification
Calculate and transfer Constitutional Reserve
Fund (Rainy Day Fund) Deposit
Calculate and set up cash-flow reserve fund
for up-coming fiscal year
Constitutional Reserve Fund
(Rainy Day Fund)
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Balanced Budget Act
Capped at 10% of certified GR from the
previous fiscal year (Actual Collections to GR
from the December BOE meeting)
Deposit any GR surplus over the estimate to
reach the cap
 Cap this year - $596.6m
 Deposit to the Fund - $25m
Constitutional Reserve Fund Deposit
“Rainy Day Fund” Deposit
100% Itemized
Estimate – Year
Ending
Actual Collections - Year
Ending
Constitutional
Reserve Fund
IF:
Actual Collections are more than
the 100% Itemized Estimate =
Surplus Funds
Deposit of
Surplus Funds
into the Fund
UNTIL…
…the amount of the Fund equals 10%
of the General Revenue Fund
certification for the prior fiscal year*
*Certification amount is Actual Collections certified at the last December BOE meeting.
Constitutional Reserve Fund
Expenditures Allowed
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Up to 3/8 if up-coming GR certification is less
than preceding year’s GR
Up to $10m to support retention of at-risk
manufacturing establishments (under specified
conditions)
Up to 3/8 for “revenue failure”
Up to ¼ upon declaration of an emergency
- Governor and 2/3 of both legislative houses, or
- ¾ of both houses
Cash Flow Reserve Fund
Title 62, Section 10
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To make June collections available for July allocations
Up to 10% of GR certified for up-coming fiscal year
Fund to withdraw money if:
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Monthly collections to the General Revenue Fund are lower
than the monthly allocations
State cannot make full monthly allocations
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Monthly allocations are 1/12 of total actual appropriations made to
each state agency by the legislature
Fund is closed at the end of the fiscal year - any
amount remaining goes to current year GR
Cash Flow Reserve Fund
June Collections from
Prior Fiscal Year
Cash Flow Reserve
Fund
To make July allocations, the
State will withdraw from the
fund
Withdraw only if monthly
collections are below allocations
Allocations
Collections
July
August
September
July
August
October
November
December
September
October
November
January
February
March
December
January
February
April
May
June
March
April
May
The Revenue
Process