The Oklahoma Board of Equalization (BOE), chaired by Governor Mary Falllin, met today (Tuesday, December 20) to fulfill statutory requirements to give preliminary certification to general revenues available for appropriation during the 2012 Legislature. The seven-member panel fulfilled its required function at its regularly-scheduled gathering, but also unexpectedly boosted anticipated funds available for general appropriation by $6 million.
Mid-way through the meeting, during what was expected to be a routine discussion as prelude to BOE approval of $63 million for “Oklahoma’s Promise” scholarships administered by the Higher Regents, Treasurer Ken Miller asked staff about the program reserve fund. That’s when members of the Board were told the reserve was about $15 million.
(The Office of State Finance later confirmed the precise figure is $14,530,300.85, a sum that should increase when additional dollars are transferred shortly.)
The information provoked discussion and introspection among members of the board. Legal counsel for the state government confirmed the BOE could approve less than the $63 million requested, but fully fund the program request by specifying that some of the reserve could be used for the difference.
Miller and others on the board made it clear they supported “full funding.” At the same time, Miller articulated a view, apparently shared by every member, that “a more rational reserve balance” seemed in order. It was clarified in discussion with staff and counsel that the reserve may only be used for scholarship awards, and not for other purposes.
In the end, state Auditor & Inspector Gary Jones moved, and Treasurer Miller seconded, a motion to fulfill the $63 million request for funding of the higher education scholarships, directing $57 million from general revenue and the remaining $6 million from the OHLAP reserve.
