Statewide Shrinking Revenues Cause City Budget Reduction
As municipalities feel the pinch of the national economy, the
City of Tulsa recently reduced its expenses by $6 million to match
declining revenues. Like all cities in Oklahoma, the City of Tulsa
is heavily reliant on sales tax collections for general operating
revenue. Sales tax revenues have proven to be unpredictable and
volatile historically. The City pared the general fund operating
budget by $12 million at the beginning of July (Fiscal Year 2010),
but in order to plan for possible declines, defined triggering
events that would lead to further reductions in an economic
downturn.
In October, declining sales and use tax collections caused the
City to trigger the additional reductions. Departments identified
an additional 2.5 percent reduction in this year's
expenditures.
The 2 cent sales tax collected in the city of Tulsa goes into
the general fund, and approximately 66 percent of the revenues in
that fund are allocated to public safety. Sections of Public Works,
Park & Recreation, Tulsa Zoo, Performing Arts Center, Municipal
Courts, Planning and administrative departments are included in the
general fund budget as well. The City's reserve remains in tact for
emergencies like the December 2007 ice storm.
Read more about City budget
allocations Read more in our Frequently
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