A state board led by Gov. Mary Fallin has certified the Oklahoma Legislature will have a budget hole next year of $1.1 billion, and the deficit will actually be closer to $1.3 billion once one-time funds are considered.
The State Board of Equalization met Tuesday to certify how much money will be available in the state's General Revenue Fund for lawmakers to spend on the fiscal year that begins July 1.
Plunging revenue collections have widened the shortfall from the original projection of $900 million in December. Since then, state finance officials say collections from every major source of tax revenue have decreased, with the exception of a slight boost in gross production tax on natural gas.
State Treasurer Ken Miller says Oklahoma must continue diversifying its economy.
"But it's not going to replace the fact that we are an energy state and we are going - to some degree - have to live with the ups and downs of the energy industry because it is our anchor industry and very important to the state."
Finance Secretary Preston Doerflinger wants the legislature to make this round of cuts.
"I can only cut across the board to agencies that receive general revenue funds. The legislature could come back in and do more targeted funds and try to shield some areas."
Fallin says despite the deeper hole, she's not in favor of rolling back the income tax cut that went into effect January 1.
"It's only probably going to be about $100 million now, because people have lost jobs. Out of the $1.3 billion shortfall, $100 million of that is not a big hit."
Next fiscal year's budget is based on projecting oil at $40.29 per barrel. As of Tuesday, oil prices were at $29 per barrel.
