Media Release
Contact: David Blatt, Director
Cell: (918) 859-8747; Office: (918) 794-3944;
New report lays out options for protecting Oklahoma public services
(Tulsa, April 13, 2011): In response to Governor Fallin’s request for ideas on how to protect the core functions of state government, a new report by the Oklahoma Policy Institute lays out a number of revenue options for next year’s budget.
In two years of recession and slow recovery, Oklahoma’s public services have struggled to get by with less. Oklahoma families, businesses and communities are feeling the impact in far-ranging ways, including increased class sizes, higher tuition rates, fewer mental health treatment services, critically understaffed correctional facilities, and more.
“With Oklahomans already more reliant on public services in the economic downturn, deeper cuts may seriously harm the well-being of schoolchildren, seniors, persons with disabilities and mental illness, correctional and public safety officers, and other members of our communities,” said Blatt. “We hope this report will aid lawmakers in finding a more balanced approach to the state budget that does not rely only on cuts.”
Even as revenues recover, they remain far below pre-downturn levels, and another large budget shortfall is looming for next year’s budget. Legislative leaders are now warning of cuts from 3 to 7 percent for all agencies, with some agencies facing cuts as high as 10 percent.
Governor Fallin has said she wants to minimize cuts to state agencies, especially the core public services of education, law enforcement, health, transportation and corrections.
“If they have a different way of being able to fund the budget and make up for the $500 million budget shortfall, I invite them to bring those ideas forth,” Fallin said.
The OK Policy report, titled “Protecting Core Services: Revenue Options for a Balanced Budget,” sets out a number of options to bolster state revenues for next year. These includebudgeting measures to make existing state money available for appropriations, income tax measures such as closing tax loopholes and suspending or cancelling additional cuts to the top income tax rate, and sales tax measures such as requiring online retailers to collect sales tax and eliminating unnecessary exemptions.
“We know that none of these options will be politically easy to adopt,” said Blatt. “But compared to the real harm that steep cuts would inflict on Oklahoma, they deserve serious consideration in the remaining weeks of the legislative session.”
Oklahoma Policy Institute is a 501(c)(3) think tank that provides information, analysis and ideas on state policy issues. The full report and 1-page summary “Protecting Core Services: Revenue Options for a Balanced Budget”, can be viewed and downloaded online at. To see all our information and resources, go tookpolicy.org.