Budget & Tax
Curtis Shelton | March 7, 2017
State revenue makeup
It is no secret Oklahoma has seen tough times the last few years because of the decline of oil prices. The state’s revenue has declined each of the last two years from $18.2 billion in FY2014 to $17.1 billion in FY2016. It may be obvious that Oklahoma’s tax revenue will decline with a significant drop in the price of oil, but a look at the data also offers a reminder that revenue has grown significantly since 2000. Here are some charts that offer a picture at where Oklahoma stands.
Oklahoma’s revenue comes mainly from two sources, state taxes and federal grants. These make up 88.00% of the state’s total revenue in 2016. The state income tax and the sales tax make up the bulk of tax revenue for the state, about 70% of all state tax dollars. Because so many of Oklahoma’s largest corporations are in the energy sector the revenue from the corporate income tax has fallen 8.98% since 2014. This suggests Oklahoma could benefit from a more diverse economy to shield itself from huge fluctuations in the oil and gas industry.
Finally, it is important to note that Oklahoma is one of many states facing a budget shortfall. In fact The Wall Street Journal reported that 25 states saw revenues come in below projections in 2016 and at least 24 are facing the same problem again in 2017.
Policy Research Fellow
Curtis Shelton currently serves as a policy research fellow for OCPA with a focus on fiscal policy. Curtis graduated Oklahoma State University in 2016 with a Bachelors of Arts in Finance. Previously, he served as a summer intern at OCPA and spent time as a staff accountant for Sutherland Global Services.