The numbers from the State Land Commission were posted on Friday of last week, and we are finishing the chargeable report to be released this week. We are checking numbers with various districts to insure that we are accurate on the data that we have collected. We will be using the data from mid-term coupled with projected revenue to Oklahoma schools to give us a better idea of the impact of the chargeables on the State Aid formula this summer. We will be using the numbers from the allocated ad valorem and county 4-mill to complete the chargeable portion of the top portion of the formula.
There is no definitive line of reasoning on the upcoming budget cuts. We still believe that the cuts will more than likely be similar to what the legislature and the governor have discussed in the media. This has been a consistent set of talking points since before the start of the session. With the release of the preliminary notice of a possible cut later this year, this is a moving target. A primary concern at this time is the collection of the 1017 fund for next year. The discussion has been that the 1017 fund should fund out, but the technology fund is at 50% and probably won’t be fully funded. It is going to take most of the 1017 fund to make it to the end of this year, and there will not be much cushion for the coming year.
The petroleum prices have stayed up the past five weeks. The price as of this article on West Texas Intermediate Futures for oil per barrel is at $45.54. However, there is some concern in the petroleum markets about the continuation of the oversupply of oil. This is set up for the same position as we found this fiscal year to exhibit. The pessimism is continuing to grow, however there are several different driving forces that will affect the price over the long term. The state budget for next year is being built on $42 a barrel oil, so hopefully we will see an improvement in the price of oil. Please remember that funds are not collected on future prices; they are collected on the spot prices, and those have not yet reached the level of $42 a barrel. This is a factor that is often a confusing and misleading misnomer.
Please look for our chargeable report this week, and as always if we can be of service please don’t hesitate to contact us.