The Oklahoma Tax Commission said last week that general fund revenues could drop by more than $250 million in fiscal 2010, providing less money than expected for legislators to allocate in the next fiscal year.
However, that prediction does not include lottery profits or the money the state will earn through investments. A more detailed report is due in February.
The State Board of Equalization will meet this week to determine how much money lawmakers will have available for appropriations to state agencies. General fund revenues make up about 60% of the state’s $7 billion annual budget.
State Treasurer Scott Meacham said Gov. Brad Henry may propose tapping the state’s $600 million budget stabilization fund to cover the shortfall, but no decision will be made until next year.
“The governor has said that he is very hesitant to dip into the rainy-day fund, but he has also said he is going to have to see what the revenues look like,” Meacham said.