Looming peak oil demand, a world fossil-fuel glut and Republican tax-cut ideology has structurally changed the state of Oklahoma’s revenue collections, resulting in abysmal and embarrassing funding for education, social services, health programs and corrections.
Renewable energy sources, such as wind and solar power, continue to grow incrementally around the world, lessening the need for fossils fuels, especially to produce electricity. New oil reserves, such as the tar sands in Canada, have been discovered throughout the world in recent decades. Oklahoma, as we all know, has been sustained by the fossil-fuel industry, which now pays a limited amount of production taxes.
The only thing that could push up oil prices, and thus increase production tax revenue on a major level for Oklahoma, would be a seismic disruption in the fossil fuel supply chain caused by a world war or at least a major conflict involving several countries. Obviously, that’s nothing to wish for, although I bet there are people who have their fingers crossed it will happen.
Meanwhile, most Oklahoma Republican politicians, whether they actually believe it or not, push the idea that tax cuts actually help the economy by increasing state revenues, but that’s not the truth. The truth is the state currently faces an $878 million shortfall in an average budget of approximately $7 billion. The truth is this comes after income tax cuts that primarily benefited wealthy people that then led to huge cuts to state agencies, including our education systems, in recent years. The truth is the state has cut public education funding on a percentage basis the most of any state in the country since 2008.
It’s difficult not see the state at a huge breaking point. The Trump presidency will make it worse. More deregulation of the fossil-fuel industry and ending particular rules on energy companies related to the environment, which the Trump administration supports, will only accelerate global warming and pollution, and possibly the number and intensity of earthquakes here, while increasing the glut of oil, which drives prices even further down.
(Click "Read more" to continue reading.)