In this tough economy... there are more and more new budget cuts to both city and state agencies.
But Oklahoma is not out of money.
Millions of dollars sit in the state's rainy day fund.
So why isn't it being used? We investigate to get some answers.
At the state capital these are dark days.
The recession is now hitting oklahoma hard.
The lack of money is impacting just about everything, starting with schools. The state tells Tulsa Public Schools to expect at least a 2.5 percent budget cut and it could go as high as 5 percent. TPS doesn't expect layoffs, but furloughs are a real possibility.
"I think the forecast is pretty bleak," said Superintendent Keith Ballard.
The department of Corrections is facing a multi-million dollar deficit.
Staffing levels are at the lowest rate legally allowed to maintain public safety.
Social programs also are hurting. more than 7 million dollars in senior services are being cut.
The Tulsa Area Agency on Aging is having to cut 719 thousand dollars from its budget this year. Hot meals that were once delivered 5 days a week may go to 2 or 3.
"We are going to have to reduce home delivered meals by 50-60% for the remainder of the year, " said Clark Miller with the Tulsa Area Agency on Aging.
Cities such as Tulsa are in a bind... Each month the budget news gets worse. First there were furlough days, with city hall shut down. Now layoffs for police.
"It's not likely we can realize that type of savings without touching somebody's job," said Police Chief Ron Palmer.
Cities and State agencies have already made drastic cuts to the budget. All state agencies were ordered to cut 5 percent from the budget and more cuts could be on the way. All the while, the State has millions of dollars -- actually hundreds of millions --in reserves. Since we are in the midst of arguably the worst recession since the great depression, some think now might be a good time to tap into those reserves.
Other nearby states have. Missouri has already taken 325 million out of it's Budget Reserve fund this year, and Kansas is supposed to end the year with 7.5 percent of its budget still in the bank. They have waived that requirement for the last couple of years.
In Oklahoma, the State can put a maximum 10% of it's annual budget into the Rainy Day Fund. This year that is almost 600 million dollars, and currently it is fully funded.
Is it time to use that money?
Speaker of the House Chris Benge says -- not yet.
"We are trying to figure out where the bottom is. We are not sure if we have reached it or not, " Speaker Benge said.
He says the state does not want to burn through the reserves and then have things get worse. For now, the state is looking at more cuts.
"From our line of thinking we would like to error on the side of cutting more and then if then if things are better than we expect, we can come back in and address those critical needs," Benge said.
On the city level, Tulsa also has a reserve fund. It's 5 percent of the operating budget or roughly 12 million dollars...
But that money is needed to cover any unforeseen emergencies. For instance, the December ice storm of 2007 cost the city twice that. The city was eventually reimbursed for most of that.
But there is virtually no wiggle room at city hall. The City Finance Director says bad budget news means more cuts and tough times are ahead.
"This is definitely a significant issue for us to be dealing with. it's not minor." said Mike Kier, the city finance director.
He says employment numbers are a key indicator. When employment picks back up, typically so does sales tax revenue. And even when that happens it will be a slow climb out of the hole -- one that could last years.
"I'm confident the City of Tulsa will be here in 5 years. There is no question in my mind about that. How difficult it is to get through the next 5 years is scary," Kier said.
So for now, there will be no local stimulus from reserve funds.
City and state leader are holding on to reserve money, at least until they feel Oklahoma's economy has hit bottom.
