Oklahoma faces 8.3 percent revenue shortfall as energy sector slumps

By Heide Brandes OKLAHOMA CITY (Reuters) - Oklahoma is facing a $611 million shortfall in its upcoming budget, partially caused by a decrease in money it takes in from the energy industry, and state agencies are bracing for cuts, a board said on Tuesday. Despite the decline, the state will still go ahead with tax cuts promoted by Governor Mary Fallin, a Republican. The state has approximately $6.6 billion available for next year's budget, which begins July 1, a drop of 8.3 percent from the current year's budget of $7.2 billion, the State Board of Equalization said. Falling energy prices have led to a decrease in output for oil and gas companies in the state, which has caused a decrease in money Oklahoma receives in taxes and fees. Earlier this year, Fallin recommended using the state’s Rainy Day Fund and state agency revolving funds to lessen budget cuts for state agencies. Critics charge Fallin has advanced a series of tax cuts while not doing enough to fix state agencies for education and public health they say are severely underfunded and rank near the bottom nationally in several categories. Finance Secretary Preston Doerflinger said the state knew a budget gap was likely as soon as oil prices dropped, but added Oklahoma is prepared to address such fiscal challenges. (Writing by Jon Herskovitz; Editing by James Dalgleish)