Architects of Crisis

Conservative political ideology and recent tax cuts that have primarily benefited Oklahoma’s wealthiest citizens are the architects of the state’s current financial crisis, but don’t count on any real public discussion of this issue.

Do you want at least a partial solution to the massive budget crisis facing Oklahoma? Simply rollback some of the income tax cuts given to the state’s richest citizens in recent years. But this idea is not even part of the discussion as state employees face furloughs, vital human and health services are cut and the public’s safety remains threatened. The state’s public schools, which have also suffered from a decline in a dedicated revenue source, are facing financial disaster.

Right now, officials are predicting a massive $802 million shortfall for this fiscal year in an overall budget of $7.2 billion. Next year, officials predict the state’s budget will be $5.3 billion, a staggering decrease of $1.3 billion. Oklahoma’s current shortfall is the largest in the nation among states on a percentage basis.

There’s no other way to put it: This crisis could do serious, long-term damage to the state. Any foundational gains the state has made in recent years in its education and health systems will be wiped out, and Oklahoma will continue to project a national image as a poor, unhealthy state increasingly enslaved to weird ideological misguidance.

The Oklahoma Policy Institute has been the most intelligent and reasonable public voice during the budget crisis. The think tank has diligently presented proposals the state’s leadership should seriously consider as programs are slashed.

In a recent issue brief, OK Policy argues that “Oklahoma is currently in the midst of its worst fiscal crisis since the oil bust of the 1980’s.” The brief states:

This situation leaves legislative leaders and the Governor facing tough choices on the appropriate strategies to keep the budget into balance while attempting to avert catastrophic cuts to essential public services in the areas of education, health care, human services, and public safety.

Unfortunately, the state’s fiscal recovery is likely to be slow and difficult.

OK Policy recommends the state do four things: (1) Improve budget forecasting. (2) Increase its reserve funds. (3) Put multi-year revenue commitments on hold. (4) Suspend and cap some tax expenditures.

Ok Policy argues:

… at a time when budget cuts are threatening public health and safety, to claim that the priorities we’ve chosen to fund through the appropriations process can be slashed while the priorities we’ve embedded in the tax code are untouchable simply does not make sense.

All these neutral proposals make logical sense and should be implemented immediately. The state has talented people in both the private and public sectors who could improve the budget process and make the state less vulnerable to downturns in the oil and gas markets.

Unfortunately, some Republicans actually see the budget crisis as an opportunity.

Writing recently in the Tulsa World, Randy Krehbiel notes:

In addition, some Republican legislators have said that they view the revenue failure as an opportunity to make deep, permanent cuts in state government, although none has said exactly what should be eliminated.

As long as voters here continue to elect politicians who see basic human suffering and underfunded educational systems as an “opportunity” instead of a crisis, the state will never overcome its systemic problems.