Oklahoma Governor's $7.3B Budget Includes $189M of Capital Bonds

DALLAS - Capital bond issues totaling almost $189 million are included in the $7.3 billion executive budget for fiscal 2009 submitted Monday by Oklahoma Gov. Brad Henry.

Henry outlined the proposed budget during his sixth state of the state address at the opening day of the second session of the 51st Legislature.

The final budget for fiscal 2009 must be approved by the Legislature before it recesses May 30. Last year, Henry vetoed a $6.9 billion budget bill before reaching an agreement with legislative leaders on a $7.1 billion budget just one week before the 2007 session expired.

The 101-member House is controlled by the Republicans, 57 to 44, but the 48-member Senate is evenly split between the parties. Henry is a Democrat who was elected to his second four-year term in 2006.

The governor's capital bond proposals total $188.9 million for six projects.

The largest single issue would provide $62 million to Langston University for the construction of urban education centers in Oklahoma City and Tulsa. The historically black state college is located in a small community between the two cities.

Henry is asking lawmakers to approve $45 million of bonds for the American Indian Cultural Center and Museum, currently under construction in Oklahoma City by the Native American Cultural and Educational Authority. The authority was established by the Legislature in 1994.

Henry called the facility "a boon for tourism in our state as well as a fitting testament to the impact of the nearly 70 Native American tribes with Oklahoma ties." He said the $45 million bond issue would "ensure the completion of this long-awaited, world-class facility."

The Oklahoma Capitol Improvement Authority issued $33 million of state facilities revenue bonds for the cultural center in 2005.

Henry is seeking $46 million for disaster recovery as a result of the floods and ice storms experienced by the state in 2007. About $15 million would be dedicated to pay for last year's weather-related damages, with $30 million for flood control projects.

The Oklahoma Juvenile Authority would get $24.9 million from another proposed capital bond issue. The authority would spend $20 million to rebuild an existing facility in Sand Springs, and $4.9 million two new 12-bed facilities.

The governor wants $11 million of bonds to complete the state Supreme Court building in Oklahoma City.

Reactions in the Legislature to Henry's 29-minute address were mixed, with Republicans in the Senate disparaging it and Democrats singing its praises.

Sen. Glenn Coffee, R-Oklahoma City, who is serving as co-president pro tempore under the Senate's power-sharing agreement, said Henry's speech was banal and vague.

"With our state and nation facing so many critical challenges, I believe the people of Oklahoma were hoping to hear more of a vision for change and innovation from Gov. Henry. Instead, much of what the governor discussed were repackaged old proposals, and he didn't even mention many important issues facing our state," Coffee said in a statement released after Henry's speech.

"Gov. Henry proposed a laundry list of spending today, but he did not give much detail on how he plans to pay for it," he said. "We will analyze the governor's budget to make sure it is based in reality. We must be cautious to ensure we don't dig a hole for future budget years."

Sen. Mike Morgan, D-Stillwater, the Democratic co-president pro tempore, said in his statement that Henry's speech provided a clear agenda for Oklahoma's second century.

"Gov. Henry provided an inspirational state of the state address calling on the Legislature to invest in the future of our state and continue the progress we have made over the course of the last 100 years," Morgan said. q

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER