Stitt issues executive order to create accountability with federal dollars pursued by state agencies

Statement

Governor Kevin Stitt announced today a new executive order to create stronger oversight and accountability for state agencies' pursuit of new federal funds and other grant resources. Executive Order (EO) 2019-40 requires state agencies, boards or commissions to first submit any grant application for review to the Office of the Governor and for approval by the Secretary of Budget before the agency's final submission to the funding source.

"For the first time in state history, our executive budget this year outlined total dollars spent by state agencies, to include roughly 30% of funding that comes from the federal government," said Gov. Stitt. "In this administration, we are focused on delivering transparency, accountability and oversight of Oklahomans' tax dollars, whether it's generated through the feds, fees, or fines. With this executive order, we will work to avoid the pursuit of short-term money that often leaves taxpayers holding the bag when the funding dries up, while also making certain that the grants we do apply for match the vision and values of Oklahoma."

"Federal dollars are a significant part of the State's total $19 billion budget," said Secretary of Budget Mike Mazzei. "We've collaborated with the entire cabinet in order to address federal grants in a thoughtful manner that will streamline the approval process and comply with federal requirements to maintain a centralized database."

EO 2019-40 requires all state agencies, boards, and commissions (other than State higher education member institutions and local school district boards) that desire to apply for a grant of $50,000 or more, including but not limited to grants from state government, private or public foundations, individuals, and non-profit organizations, to obtain the written approval of the appropriate Cabinet Secretary prior to beginning the grant application process.

If a grant application is approved, the Cabinet Secretary will communicate the details of the grant application to the Secretary of Budget.

EO 2019-40 also requires state agencies, boards, and commissions (other than State higher education member institutions and local school district boards) that desire to apply for a grant in excess of $100,000 of any kind from the Federal government to obtain the written approval of the appropriate Cabinet Secretary and the Secretary of Budget prior to beginning the grant application process.

The executive order does not apply to "emergency" grant funds from the Federal government where the time from application to distribution of funds is typically less than 10 days, as is often the case with grants from the Federal Emergency Management Agency, and any "formula" grants from the Federal government that an agency, board, or commission has applied for in the past and received.

The Secretary of Budget is designated as the State of Oklahoma's single point of contact ("SPOC") under Presidential Executive Order 12372 to act as the State's contact for the coordination and review of any proposed Federal assistance and/or direct Federal development.

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