Oklahoma § 68-3003 - Revenue from nonrecurrent sources not to be included in

§ 68-3003. Revenue from nonrecurrent sources not to be included in

political subdivisions estimate of probable income - Exceptions Exclusion from minimum program income of school districts - Federal

funds.

A. It shall be unlawful for the governing board of any county,

city, town, school district, or other governmental subdivision of

this state, in preparation of its budget for any fiscal year, to

estimate as probable income from sources other than ad valorem tax

of such governmental subdivision of the state and other than any

excise or other tax assessed by legislative enactment and

distributed in lieu of ad valorem taxes, any revenue from

nonrecurrent sources, regardless of such collections in the

immediately preceding fiscal year, to be derived from or the result

of sales, forfeitures, penalties, gifts, federal aid allotments of

every kind, windfalls, seizures, sheriff’s sales, court actions

whether civil or criminal, injunctions or protests won or released

by dismissal, or from any other such source not normally recurrent

year after year and so made recurrent by legislative enactment.

Provided, that upon a finding by the governing board of any county,

city, town, school district, or other governmental subdivision of

this state, that a source of income, although nonrecurrent, will

actually be available for the next ensuing fiscal year, the board

may include such income in its estimate of probable income.

Provided, that shared revenues of the federal government, if

ascertainable, shall be allowed to be included in the estimates. It

shall also be unlawful for any excise board to approve or require

the same, or for any supervisory state board, commission, or

officer, or for any agent or employee of either thereof to

countenance, approve, or require the same or to diminish in any

degree the distribution or allotment of state revenues or

appropriations by reason of such collections in a prior year or

prospect of such collections in the ensuing year; nor shall any

revenue received by a school district from gross production taxes

during the immediately preceding fiscal year, which was payable to

such district in another year or years, be considered as minimum

Oklahoma Statutes - Title 68. Revenue and Taxation

program income of such district for state aid purposes. The

provisions of Section 21 of Title 21 of the Oklahoma Statutes shall

be applicable where the foregoing prohibitions are disregarded.

Revenue received by a school district during the immediately

preceding year, which was earned by, or which was payable to, such

school district in another year or years, shall not be considered as

minimum program income of such district for state aid purposes.

B. All funds received by counties, cities, towns, or other

subdivisions of government in this state, hereinafter referred to as

the recipient government, from the federal government pursuant to

the distribution of funds authorized by the state shall be deposited

in the treasury of the recipient government in a fund which shall be

recorded and accounted for separately and apart from all other

funds. Principal and interest received from investments of the

federal monies, proceeds from the sale of assets purchased from the

federal monies, and other miscellaneous income derived from the

direct operation of the federal monies may be deposited in the fund

from which the federal monies were deposited if required by the

federal government or by the governing board of the recipient

government.

The unappropriated cash balance on hand may be appropriated as

needed upon the request of the governing board of the recipient

government and approval by the county excise board; provided, if the

governing board of the recipient government determines the need to

do so, it may estimate the amount remaining to be collected from its

entitlement from federal funds during the remainder of its fiscal

year and include such estimate in its request for appropriations.

The estimate shall not exceed the amount of the entitlement which is

to be received during the remainder of the recipient government’s

fiscal year or, if the amount of the entitlement has not been

certified, ninety percent (90%) of such funds received during a

corresponding period of the previous fiscal year; provided, that if

the entitlement is less than that estimated or if the entitlement to

be collected during the recipient government’s fiscal year, in

addition to the unappropriated cash balance, is reduced below the

amount appropriated for the fiscal year, the governing board of the

recipient government shall request the county excise board for an

adequate reduction of appropriations in the fund.

All disbursements made from the fund in which federal monies are

deposited shall be made in the same manner as those made from the

general fund of the recipient government; provided, that no warrants

shall be drawn on the fund unless sufficient monies are available to

pay the warrants.

All forms and procedures necessary for the effective operation

of this act shall be prescribed by the office of the State Auditor

and Inspector.

Oklahoma Statutes - Title 68. Revenue and Taxation

C. All monies distributed by federal, state, or tribal

governments and received by any state agency, board, or commission

to administer and distribute to counties, cities, towns, or other

subdivisions of the government in this state, hereinafter referred

to as the recipient government, that do not follow procedures in

subsection B of this section may utilize the letter of commitment

appropriation process as specified in this subsection. The

recipient government shall receive approval for the program as

required by the agency, board, or commission administering the

program and by the federal government, if required. Once approved,

the state agency, board, or commission may authorize a letter of

commitment of federal, state, or tribal monies available to the

recipient government. The excise board may approve an appropriation

in the amount of the letter of commitment. Each recipient

government may establish a separate appropriation within a special

revenue fund designated for federal, state, or tribal monies. The

recipient government may encumber funds in an amount not to exceed

the sum of the total letter of commitment, which is a binding

commitment of funding which the recipient government will receive

for the project or projects eligible for such federal funding. The

encumbrance of funds authorized by this section shall be made in

accordance with procedures prescribed by the State Auditor and

Inspector and shall be administered in accordance with rules and

regulations concerning such distribution adopted by the federal

government and the state agency, board, or commission. Any

expenditure incurred by the recipient government using the letter of

commitment appropriation process and disallowed by the federal,

state, or tribal government or state agency, board, or commission

administering the funds shall be paid by the recipient government.

Added by Laws 1965, c. 501, § 2. Amended by Laws 1977, c. 108, § 1,

emerg. eff. May 30, 1977; Laws 1985, c. 34, § 1, eff. Nov. 1, 1985.

Renumbered from Title 68, § 2484 by Laws 1988, c. 162, § 163, eff.

Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992. Amended

by Laws 1989, c. 135, § 1, operative July 1, 1989; Laws 2024, c.

169, § 1, eff. Nov. 1, 2024.