December 23, 2009 OKLAHOMA CITY – The state Board of Equalization on Tuesday certified a revenue estimate for next year that is $1.3 billion less than the current one, the result of a sluggish economy and low oil and natural gas prices that have reduced tax revenue during the past year.

The board, made up of Gov. Brad Henry and other statewide elected and appointed officials, said lawmakers will have about $5.3 billion to spend during the fiscal year that begins July 1 – a dramatic 20 percent drop from this year’s $6.6 billion legislative spending authority.

The board also declared a revenue shortfall of more than $729 million for the current year. Henry, who will use the board’s revenue figures to write his executive budget proposal, said ongoing budget cuts at state agencies will reduce the gap to about $530 million by the end of the fiscal year June 30.

State officials ordered 5 percent across-the-board state agency budget cuts in August to cope with declining revenue and later extended the cuts through the end of the fiscal year. Last week, the cuts were doubled to 10 percent for December and January as revenue continued its downward spiral.

“This is a very difficult challenge,” Henry said. “But there is no need to panic.”

He said budget cuts, constitutional Rainy Day reserve funds and federal economic stimulus money will help fill this year’s budget hole and fund state agencies next year.

The Rainy Day fund contains almost $600 million, and the state has set aside another $600 million in economic stimulus money. The governor said any additional cuts should be targeted to preserve vital state services to Oklahomans.