Will State Face Budget Cuts?

Rising costs and flat funding could result in cuts for state programs and services, according to the Oklahoma Policy Institute.

David Blatt, director of the institute, issued a release this week about the organization’s new report, “Falling Flat: Will Standstill Funding Force Cuts in Services.” Here is a copy of the report.

“Legislative leaders have billed this as a ‘maintenance-of-effort’ budget,” Blatt said.
“However, state agencies are facing steep rates of inflation for basic operations, such as utilities, transportation and equipment, as well as unfunded increases for employee health care and retirement costs. While most agencies will do whatever they can to avoid cutting services to the public, in some cases cuts are inevitable.”

The legislature recently approved the “standstill” or “maintenance-of-effort” budget, which is just $46 million more over last year. The budget is $7.1 billion. Recent tax cuts and declining revenues are responsible for the stagnant budget.

As Okie Funk noted earlier: “What is most distressing is the use of the word ‘standstill’ to describe this budget. It seems disingenuous. When you basically have the same amount of money you had last year to buy products that are rising astronomically in price, then you, in fact, face a budget shortfall.”

The budget also broke a promise to teachers they would receive new raises. Other state employees need a much deserved raise as well. Meanwhile, college tuition will most certainly rise on every state campus because of the budget.

The state continues to confuse its priorities. It hands out tax cuts to the state’s richest citizens as it pays its teachers some of the lowest salaries in the country. It may be great Oklahoma City has a NBA team, but teachers will continue to flee the state for better pay and benefits.