We have quite a few things happening that are starting to look a little bit more promising for the spring and the next fiscal year. The most exciting change is that as of this day, crude oil hit an 18 month high point. The New York Mercantile Exchange has West Texas Intermediate at $52.35 a barrel. It appears the basis has transitioned from $40 per barrel to $50 per barrel, possibly being the basement commodity price. This is extremely good news if it holds. Let’s just hope this is the gift that keeps on giving.
Unfortunately, it’s not all good news right now. We are still seeing a lag in sales tax, income and motor vehicle collections. As we go forward, we can probably expect to see an increase in sales tax revenue due to the increase in drilling activity from the increased crude oil price. There was an interesting article in this month that highlight the increase in petroleum sector hiring before the recent rise in prices. If the crude oil price stays above $50, Oklahoma could have an economic rebound soon.
Happy New Year!
Amid budget cuts—and probably more budget cuts—OPSRC would like to remind you that RIF assistance is available to our member schools. Now that springtime is just around the corner, it’s a good time to begin thinking in terms of whether you need to implement a RIF for the ensuing fiscal year, and if so, what you need to do. Some RIFs are quite complex, requiring a lot of thinking through and strategizing.
I’m excited to announce that we have launched a new website. This is a project that has been a long time in the making, but I think that you’ll be able to get a lot out of it at your school or district.
What does the comparison of State Aid allocations from last year to this say about our finances?