FOR IMMEDIATE RELEASE August 16, 2017
Governor Mary Fallin Says Special Legislative Session Necessary to Adjust State Appropriations
OKLAHOMA CITY – Governor Mary Fallin today said the
Legislature must return in special session to deal with the $215 million
shortfall caused by a proposed smoking cessation fee being struck down.
“No money can be spent from any state fund unless the
Legislature specifically appropriates it,” said Fallin. "Let's be clear. The director of the Office of Management and Enterprise Services (OMES) does not have the authority to transfer monies to the affected agencies from different sources without legislation directing him to do so.”
Article 5, Section 55 of the Oklahoma Constitution
states that no money shall be paid out of the state treasury, except through an
appropriation by law.
Fallin said state law (Title 62, Section 34.55) allows
the director of OMES to
borrow money from treasury funds to satisfy monthly allocations of
appropriations made from the General Revenue Fund, but the appropriation has to
be made by the Legislature.
The three agencies that received the bulk of the
money from the proposed cessation fee are the Department of Human Services
(DHS), the Department of Mental Health and Substance Abuse Services (DMHSAS),
and the Oklahoma Health Care Authority (OHCA).
DMHSAS
would have received $75 million (about 23 percent of its total appropriation),
OHCA would have received $70 million (about 7 percent of its total
appropriation), and DHS would have received $69 million (about 10 percent of
its total appropriation).
Without
legislative intervention, DMHSAS said it would run out of state appropriations in
November. OHCA said it would run out of state funds in January and DHS said it
would out of state funds in May.
The
funding shortfall is the result of the Oklahoma Supreme Court last week striking
down a smoking cessation fee approved this past legislative session.
Fallin said she and her staff have been
discussing options with legislative leaders of both parties.
“A special session is the best option,” the
governor said. “Failure to meet in special session would mean $215 million
would be cut mostly from these three state agencies. These agencies and the
people they serve cannot sustain the kind of cuts that will occur if we do not
find a solution.”
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