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Rocky state finances causing municipal leaders headaches

Norman, Moore waiting for more than $750,000 in reimbursement funds from state

By M. Scott Carter

Ashwood said the Department of Emergency Management depends on lawmakers to appropriate the funds used to cover those costs. He said the department has requested about $21 million this year to pay cleanup costs.

"In January of 2007, we didn't have any reimbursements due," he said. "Then we had nine presidential declarations during the year, and five more declarations in 2008."

Those disasters amounted to about $40 million "over the course of 18 months," he said.

"It was kind of a large sum to ask for all at once." He said his department received $10 million in 2007 and $15 million in 2008 and "hope" to get the remaining funds this year.

"I fully understand why communities are frustrated," Ashwood said. "There are many communities we are trying to pay off. Many of them hired contractors, as opposed to doing the work in-house. We're trying to take care of the communities who have bills staring them in the face. We want to make sure we take care of the people who are hitting them up for payment."

But this year, that wait could be longer.

On Tuesday, State Treasurer Scott Meacham said the downturn in the U.S. economy "has found its way to Oklahoma." Meacham said the state's General Revenue Fund collections dropped "significantly below prior year collections" and the estimate in the month of January -- about $50 million less.

"It would appear that Oklahoma is increasingly seeing the effects of the nationwide recession," he said "This is the first time in nine months that monthly collections have been lower than both the previous year and the estimate."

And though Meacham predicted the state would be able to finish the fiscal year with "sufficient revenue to meet (its) financial obligations," local lawmakers were more pessimistic.

"It's going to be a rocky budget year," Norman Rep. Bill Nations said. Nations, a Democrat, said the state's budget picture "continues to get worse."

On Thursday, an announcement by the Oklahoma Tax Commission underscored Nation's statement.

Commission officials announced they'd approved an estimate which showed state revenues will be about $300 million less than the budget estimate made in December.

December's estimate predicted a $600 million budget shortfall; this week's announcement pushed that number of $900.

"It's going to be a struggle," Nations said.

Yet, despite the state's financial black hole, municipal leaders remain optimistic they will, eventually, be reimbursed.



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