Tulsa World: Governor sees no furloughs or job cuts

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Governor sees no furloughs or job cuts

TIGHTEN BELTS
Gov. Brad Henry: He says all state agencies will have to "tighten their belts'' in view of the state's leaner budget outlook next year. Although he doesn't foresee any job cuts or furloughs, the governor said he doubts money will be available for teacher or state worker pay raises.

By MICK HINTON World Capitol Bureau
Published: 12/23/2008 2:25 AM
Last Modified: 12/23/2008 2:46 AM

OKLAHOMA CITY — Gov. Brad Henry said Monday that he doesn't expect state employees to be furloughed or terminated over the next year or so.

But Henry also doesn't foresee pay raises for teachers or other state workers because of a nearly 5 percent budget decline for fiscal year 2010. Henry's comments came after the state Board of Equalization certified a budget of $6.76 billion expected for fiscal year 2010, compared with the current budget of $7.1 billion.

This amounts to nearly $310 million less that the Legislature can appropriate for state needs, including public schools, roads and corrections.

The good news, Henry said, is that it appears that Oklahoma will endure the national economic downturn better than almost any other state.

Over the next two years, the number of jobs nationally is expected to decline by 6.5 percent. But in Oklahoma, employment could grow by 3 percent, said Mike Clingman, the state finance director.

Nationally, the economy is expected to get even worse over the next six months but pick up in 2010, Clingman said. Oklahoma has managed to continue doing "pretty good" and that could continue until the national economy picks up, he added.

Henry said the state's economic forecast is much better than it was in 2003, when he took office. Then, he said, he was faced with a $700 million revenue decrease and only $72 million in the state's "rainy day" fund.

The fund now has nearly $600 million, and Henry said he doesn't think the situation is bad enough that it will need to be tapped.

But Henry warned that all state agencies are going to have to "tighten their belts," a phrase he used repeatedly in a news conference Monday.

The state Board of Education has already asked for $9 million more to catch up in increased health insurance costs this fiscal year.

The next budget also includes $30 million more earmarked for roads, along with $54 million for the successful "Oklahoma's Promise" program.

The program provides free tuition to students whose families have incomes of less than $50,000, provided that the students sign up early in high school and keep their grades high.

Next fall, 19,000 college students are expected to take advantage of the program.

Overall, common education traditionally receives about 35 percent of the budget, and higher education receives 15 percent.

Health and human services get about 21 percent of the budget, and the Corrections Department gets about 7 percent.

Lawmakers already have been talking about the need for more prison beds due to a continued increase in Oklahomans being locked up for felony convictions.

Mick Hinton, (405) 528-2465
mick.hinton@tulsaworld.com By MICK HINTON World Capitol Bureau

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	Report Comment concernedpapa, Kiefer (12/23/2008 8:04:19 AM) Has there not been an overall increase in jobs in the state since Henry took office? At least we havn't been the laughing stock of the country with our governor making headline statements. Gosh I miss Keating> NOT
	Report Comment Graychin, Eucha (12/23/2008 9:17:44 AM) The last Keating sighting was as a co-chair of the McCain campaign. That was his last, best chance to get back on the government payroll.
	Report Comment Angry Citizen!, Bluejacket (12/23/2008 9:38:16 AM) As yes, Keating, he put that multi million dollar dome on our capitol building during a state financial crisis- I think they were furloughing workers of state agancies at the time too.
	Report Comment Graychin, Eucha (12/23/2008 9:57:53 AM) And left the taxpayers with a bill for the cost that wasn't privately funded, as he promised it would be.
	Report Comment concernedpapa, Kiefer (12/23/2008 10:41:31 AM) I.M.Right dont you mean removed from the governor's spot?
	Report Comment kyote, (12/23/2008 12:51:37 PM) If we furloughed brad henry for the next two years would anyone notice?
	Report Comment oldrustytulsa, Tulsa (12/23/2008 7:29:38 PM) Oh yeah, when the economy bottoms out,the state expectations are gonna have to lower.We are headed for a economic depression, and no one wants to acknowledge that fact, but its happening right now.

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