Henry

Declining Revenues?

No one enjoys paying taxes, but they are inevitable in a civilized society. The Republican Party these days like to demonize taxes, but it has have proven itself recklessly irresponsible on a federal level when it comes to spending government money. Look at the budget deficit.

So Gov. Brad Henry has made yet another prudent and appropriate decision by delaying action on GOP-proposal that would accelerate tax cuts passed in 2006 and add additional cuts. Henry says he will wait until a final budget has been agreed upon before making a final decision on whether to sign the tax bill presented to him.

A potential major problem is that state revenues are not meeting earlier estimates, and that could open the state up for problems down the road.

“These projected stagnant revenues come at a time when the state is already
struggling to deal with billions of dollars in unfunded liabilities in the state teachers’
retirement system, as well as upholding commitments to raise teachers’ salaries, expand access to higher education, repair roads and bridges, and bolster the health care system,” according to the Alliance for Oklahoma’s Future.

What’s important here is that Oklahoma citizens get involved and look at what gets funded in this state. Too often, people just rely on the clichés or rhetoric of party politics to decide where to stand on an issue. But where is the money going? Who benefits the most by the tax cuts? Who gets to spend your tax dollars and on what programs?

Tats Or Not?

Why won’t the state just leave the tattoo industry alone? Why does it continue to hassle tattoo artists? Why doesn’t the state get big signs that say, “Do Not Enter If You Are Not A Conformist,” and place them on the state’s borders?

The state legalized tattoos last year. Oklahoma was the last state in the nation to do so.

But a couple of the regulations were so draconian and unconstitutional that most tattoo studios could not stay in business. One regulation, for example, required tattoo studio owners to purchase a $100,000 surety bond. Another regulation required studios to be at least 1,000 feet from a school, playground, or church.

Oklahoma County District Judge Dan Owens recently ruled the provisions were unconstitutional, but now the state health department wants to take the issue to the Oklahoma Supreme Court.

This is a complete waste of taxpayer’s money and a typical, Okie spectacle. We supposedly legalize tattoos, but then we spend taxpayers’ money on trying to stop people from getting tattoos.

What’s The Plan, Dems?

There remain unanswered questions about why some Democratic legislators cut out Gov. Brad Henry from the budget process this year.

Was it simply good ol’ boy politics? Was it leftover residue from last year’s budget agreement? Is there a legislative plan or strategy among Democrats they haven’t shared with the rest of us? Why all the dissension?

(For the record, Okie Funk supported the $3,000 raises for teachers last year. The raises were pushed by Senate Democrats and weren’t initially supported by Henry, who wanted $1,200 raises for teachers. Okie Funk gave full credit to Senate leaders for the raises.)

Henry has vetoed the bulk of the bill. The governor did approve supplemental funding for education to meet all the costs associated with last year’s teacher raises. The veto ultimately asks this question: Do legislators forge ahead with accelerated tax cuts that may created a financial disaster for the state during the next major economic downturn or do they keep the tax cuts on their initial schedule and appropriately fund all our educational systems?

This much is clear: Henry is the leading Democrat in the state. He won a landslide victory over former U.S. Rep. Ernest Istook last November. His approval rating, according to polls, is nearly 70 percent. Voters expect and want him to be part of the state’s budget process.

The vetoed budget reduces the state income tax to 5.25 percent in 2009 instead of 2010 as originally scheduled in the 2006 budget. The budget would reduce state revenues by $15.3 million in 2008 and $74.3 million in 2009.

There are legitimate arguments on both sides about whether to eliminate the state’s income tax, as Okie Funk has argued for years, but if the tax is eventually eliminated then lost revenue will have to come from added sales and property taxes. How do you want to pay for the state’s schools and roads? We do need schools. We do need roads.

Will Henry’s veto be overridden? The initial votes on the budget in the House and Senate were overwhelmingly bipartisan. If that holds, then yes, the budget will prevail.

Mineral Money For Retirement System?

A resolution calling for a vote of Oklahomans to redirect mineral income to the state teachers’ retirement system has been passed by the House.

Under the proposal, sponsored by state Reps. Tad Jones (R-Claremore) and Joe Dorman (D-Rush Springs), voters would decide whether to amend the state’s constitution so the underfunded retirement system could benefit. Once the system was funded at 80 percent, the money would go back to the School Land Commission.

The teachers’ retirement system is currently one of the worst funded public pensions in the nation. This seems like a permanent solution to the problem, though voter approval of the measure could be problematic, and the fund needs immediate new funding. Its sponsors say it would not affect overall funding for schools.

This resolution passed 98-3 and now goes to the Senate.

(Major bills pending in the Oklahoma Legislature attack the viable concept of diversity. Do Oklahomans really want to reject diversidad? Read DocHoc's commentary this week in the Oklahoma Gazette.)

Oklahoma Gov. Brad Henry is one of the state’s most popular governors in history so when legislators of both major political parties cut him out of the state’s budget process they are violating basic shared values of democracy.

Henry beat Ernest Istook in a landslide vote in November 2006. He won 66 percent of the vote. His recent approval rating, according to polls, is nearly 70 percent. This doesn’t give Henry a blank check, but surely this means Oklahoma voters want him involved in how the state spends its money.

But the Oklahoma Senate, tied evenly between Republicans and Democrats, voted unanimously this week to approve a $6.9 billion budget that had no input from Henry. The governor has rightfully complained and even threatened a veto.

In addition, according to a news report, “None of Henry's proposals are included in the package. They include more money for sentencing alternatives such as drug and mental health courts, a research center to develop alternative fuels and to match money for programs for low-income children” (“Criticism may set stage for budget veto,” The Daily Oklahoman, March 21, 2007)

All these proposals have merit and, at the very least, deserve discussion and debate, but the state legislature is busy isolating Oklahoma from the rest of the world with bills stripping women of reproductive rights and creating an Okie police state in its efforts to ensure not one single undocumented worker sets foot in this place. In contrast, all of Henry’s proposals actually do something positive and far-sighted for the state.

In a statement issued after the legislative budget deal was announced, Henry said, “I’m disappointed […] that legislative leaders have rolled emergency and regular spending items into what amounts to the largest spending bill in state history. By lumping $7 billion in spending into a single bill, legislative leaders have stifled debate about individual budget items and forced lawmakers to make an all or nothing decision without any real input. Fortunately, the line item veto provides the governor with more flexibility and discretion.”

Perhaps, Senate Democrats see the budget vote as a step in budget negotiations or maybe they face Republican threats about education funding or maybe it's just good ol' boy politics, but it’s difficult not to read their action as a basic betrayal. Henry is the leading Democrat in the state. Why create such a public display of dissension within the party?

Update: The Oklahoma House has now voted 84-16 to pass the budget measure approved by the Senate. It now goes to Henry for his signature. Some House Democrats complained about the process of bringing the measure to a vote so quickly, according to news reports.