Fiscal Control in Oklahoma

• DOI: 10.1177/000271622411300112
• Author: Frederick F. Blachly,Miriam E. Oatman
• Date: 01 May 1924
• Published date: 01 May 1924
• Subject Matter: Articles

84
THE ANNALS OF THE AMERICAN ACADEMY
living within their income. With the
many changes and improvements.
introduction of the budget and the va-
And yet the methods of fiscal control in
rious methods of fiscal control which
use today have done much to eliminate
accompanied it, there came at last an
the waste and extravagance of former
effective method of limiting the state’s
years.
The present systems of ac-
expenditures and keeping them within
counting and reporting afford the in-
the revenue during each fiscal period.
formation necessary for intelligent
The financial and accounting sys-
planning and for the continuous study
tems of state governments have not
of comparative costs, which will lead to
reached a highly developed stage, and
further economy and efficiency in the
the next ten years will probably witness
conduct of state business.
Fiscal Control in Oklahoma
By FREDERICK F. BLACHLY
Professor of Goverment, University of Oklahoma
AND
MIRIAM E. OATMAN
Assistant Secretary, Oklahoma Municipal League
FEW states in the Union exercise a legality, are under the supervision of
~
control over both state and local
the Attorney-General.
financial operations so comprehensive
It is obvious that Oklahoma has es-
as that exercised, on paper at least, by
tablished a large number of uncobrdi-
Oklahoma.
nated and independent fiscal agents.
The control over state finances in-
In this study it will be our purpose to
cludes budgetary control, which is
discuss the control exercised by each of
placed in the hands of the Governor;
these authorities, and to criticise the
purchasing and supervisory control,
actual operation of such control.
vested in the state board of affairs;
THE STATE BUDGET
accounting and auditing control, exer-
cised by the State Examiner and In-
In 1919 the state legislature enacted
spector and the State Auditor; and
a so-called budget lawl which was very
control over the issuance of bonds,
closely patterned after the Virginia law
which is a function of the Attorney-
of 1918. Evidently the legislature did
General.
not stop to consider whether or not the
The municipal subdivisions of the
Virginia law would harmonize with the
state, which include cities, counties,
fiscal provisions of the Oklahoma con-
townships, school districts and inde-
stitution, or the constitutional provi-
pendent school districts, are controlled
sions regarding state officer, for the
in their budgets and their tax levies by
law and the state constitution are in-
the County Excise Board. The Exam-
compatible in several places.
iner and Inspector and the Auditor ex-
The essential features of this budget
ercise a certain degree of control over
law are as follows:
their accounts and audit their books;
On the first day of November in even
and their bond issues, in respect to
1
S. L. Okla. 1919, Ch. 142.

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FISCAL CONTROL IN OKLAHOMA
85
numbered years, every state depart-
month of November, and to require the
ment, bureau, division, officers, institu-
attendance at these hearings of the
tion, etc., asking or receiving financial
heads of state agencies or their respon-
aid from the state, must submit to the
sible representatives.
Governor an itemized estimate of the
Within five days after the beginning
amount of money needed by it for each
of each regular session of the legisla-
of the next two fiscal years. This pro-
ture, the Governor must submit to the
vision is due to the fact that regular
presiding officer of each house printed
sessions of the legislature are convened
copies of the budget, accompanied by
in the January of odd-numbered years.
prescribed financial information re-
The estimates are made according to a
garding the state. He is required to
classification prepared by the Governor,
submit at the same time a tentative
and are submitted on forms sent out by
appropriation bill covering all appro-
him. The State Auditor is required to
priations.
submit the estimates for the legislative
The budget and the budget bill are
and judicial departments. The presid-
considered by a legislative joint com-
ing officer of each house of the legisla-
mittee, composed of the appropriations
ture signs the legislative estimates,
committees of the Senate and of the
while in the preparation of those for the
House of Representatives. Sessions of
judicial department the Auditor follows
this committee must commence five
the laws establishing salaries. As
days after the submission of the budget
these latter estimates must be included
to the legislature. The Governor, his
in the budget without revision, the Gov-
representatives, the governor elect, and
ernor is deprived of any control over
all other persons interested in the esti-
legislative and judicial expenditures.
mates, have a right to be present and be
All estimates must be accompanied by
heard at these meetings. The com-
detailed explanations regarding in-
mittee may require the attendance of
creases or decreases.
state officials and the submission of
The next step is the preparation by
information by them.
the Governor of a &dquo;complete and item-
The law provides that the legislature
ized plan of all proposed expenditures&dquo;
may not, except in case of emergency,
for the two ensuing fiscal years, to-
consider other appropriation bills until
gether with an estimate of money avail-
the budget bill has been disposed of,
able from revenues or loans to meet
and that all bills subsequently consid-
such proposed expenditures. In pre-
ered shall be classified in accordance
paring this plan the Governor is not
with the classification of the budget.
entirely dependent upon the estimates
The legislature may exercise its dis-
furnished by the various state agencies,
cretion in increasing or decreasing
as he may
require the Auditor to supply
items in the budget bill.
certain information. The law provides
DEFECTS
that the Governor or his budget officer
or assistants shall make
a
careful survey
So much for the law. How has it
of each state agency in order to obtain
worked in practice? Though but two
a proper working knowledge for pre-
budgets have been prepared under this
paring the financial plan.
law, certain features of its operation
To enable the people to express their
may be noted. In preparing the first
opinions on the budget, the Governor is
budget the Governor adopted the
directed to arrange for public hearings
Virginia classification of expenditures,
on &dquo;any or all estimates&dquo; during the
which is faulty in several respects, par-

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86
THE ANNALS OF THE AMERICAN ACADEMY
ticularly in that certain fund transac-
bulk of this information was also pub-
tions are regarded as expenditures. In
lished in the second budget. Some
neither budget were the estimates
difficulty was experienced during the
sufficiently summarized to be intelligi-
preparation of the first budget in secur-
ble to the ordinary member of the legis-
ing adequate financial information
lature. Many members openly claim
from certain state officials, due to bitter
that the immense budget volume, with
feeling between them and the Governor.
its elaborate &dquo;function, character, ob-
Instead of preparing an appropri-
ject,&dquo; classification, is worse than mean-
ation bill in regular form, the Governor
ingless to them. So difficult, in fact,
has merely made a few recommenda-
have they found it, that at the last
tions in connection with the estimates,
session they had a small bulletin pub-
usually suggesting a lump sum for each
lished for their own information, which
state agency. To all intents...