Author:  Shawn Ashley 
Date:  12/22/2008

(OK) An estimated $309.6 million less to spend for fiscal year 2010 poses a challenge for state budget writers, Gov Brad Henry said Monday after the Board of Equalization approved a revenue estimate that will make $6.8 billion available to spend for the upcoming fiscal year.

"It will be a challenge," Henry said when asked what to expect in his FY2010 budget that will be presented to lawmakers in February. "It is going to be difficult to do like things like raise teacher pay and state employee salaries."

But, Henry added, he faced a bigger challenge when he first entered office and the state faced a $700 million current-year shortfall and very little money available in the Constitutional Reserve Fund, or Rainy Day Fund, to help address the state's financial needs.

"We've been through much, much worse," Henry said.

Monday's action was the first look at funds available for appropriation during the 2009 legislative session, which gets under way Feb. 2. The board will meet again shortly after the session begins to certify a final number. In the meantime, Henry will draft his budget using the figure approved Monday.

"We are all in this together," Henry said. "Every agency is going to have to tighten its belt. It's what we have to do when we have a shortfall."

Henry, however, said he would prefer to look at "surgical cuts" suggested agency-by-agency, rather than across the board cuts.

"I would much rather it comes from (the agencies)," Henry said. "They know their budgets better than I do or the Legislature does."

Henry said he did not believe it would be necessary to eliminate any state jobs to balance the budget.