The recent agreement on a $8.3 billion state budget reached by the Governor and Republican leaders of the legislature drew hearty support from the state’s oil and gas industry associations.
Chad Warmington, President of the OIPA-OKOGA issued a statement after the announcement at the capitol.
“The budget agreement for the 2020 fiscal year is a step in the right direction for the state and for all Oklahomans,” said Warmington. ” By setting aside $200 million in savings, legislative leaders are taking significant strides to ensure we do not repeat the severe budget shortfalls the state has seen in recent years.”
Warmington said ebbs and flows of commodity prices are part of doing business in the oil and gas industry.
” Because our state government is heavily reliant on tax revenue from the oil and natural gas industry, those same ebbs and flows become a part of the state’s ability to offer core government services to Oklahomans when commodity prices fall and tax receipts decline.”
Gov. Kevin Stitt said part of the budget agreement is setting $200 million into the state’s Rainy Day Fund, pushing it to $1 billion.
“A healthy Rainy Day Fund that can be tapped to offset the volatility in oil and natural gas prices is key to ensuring government services continue at expected levels in times if industry downturns. We applaud Gov. Stitt and leadership in the House and Senate for making budget savings a priority,” said Warmington.