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Alliance for Oklahoma's Future

Area officials discuss TABOR at forum

Eddie Glenn, Tahlequah Daily Press

April 28, 2006

From lemon meringue pie, to horse reins, to airplanes, to trains – the analogies were flying at the Armory Municipal Center Thursday evening.

More than 150 people gathered at the center to hear state and local officials present the pros and cons of State Question 726, which would implement the Taxpayer Bill of Rights (TABOR) in Oklahoma.

Panelists for the “Town Hall Meeting,” sponsored by the Tahlequah area Chamber of Commerce, included Rob Gray from the Alliance for Oklahoma’s Future; Carol Hedges of the Bell Policy Center in Colorado, where voters passed a similar measure in 1992, then voted it into a five-year hiatus in 2005; Tahlequah City Hospital Chief of Staff Dr. Deborah Jennings; NSU President Larry Williams; State Rep. John Auffet, D-Stilwell; Sen. Randy Brogdon, R-Owasso; Sen. Jim Wilson, D-Tahlequah; Rep. Mike Brown, D-Tahlequah; Tahlequah Public Schools Superintendent Paul Hurst; and Tahlequah Mayor Blake Purdy.

Brogdon, who authored the TABOR initiative after failing to get a similar measure passed through the state Legislature, was a bit outnumbered, as all nine of the other panelists opposed the initiative. The nine warned the audience that, should TABOR be passed, government services vital to the Tahlequah area’s economy would suffer from lack of funding.

“My job is not to tell you how to vote,” Hedges told the audience before presenting a video detailed the economic damage done by Colorado’s TABOR. “But you have an experiment, and you know what the results are.”

According to Hedge’s video presentation, TABOR limits state government spending to the rate of inflation (determined by the Consumer Price Index) plus population growth. But according to the video, the CPI measures the price of good purchased by consumers, not the cost of goods and services financed by governments, which tend to increase at a faster rate.

Also, the population growth component of the formula ignores the fact that as populations age (and the baby boomers are now becoming senior citizens), they require more health care, which is heavily financed or reimbursed by state governments. However, as they retire, those same baby boomers are no longer contributing as much to the tax base as they were during their working years. With fewer people paying taxes, and with TABOR limitations placed on those taxes, health services are underfunded.

According to Colorado residents interviewed in the video, the tax refunds that were also implemented by TABOR didn’t make up for the increase in costs of state fees and health care. Fishing license fees, court fees, and inspection fees all increased under Colorado’s TABOR, some as much as 400 percent.

The video shows many Colorado pediatricians refused to see patients because the state’s Medicaid funding could not sufficiently reimburse them for their services.

Hedges said the Colorado economy was booming during the ’90s, but the cost of private compensation for previously public services kept most state residents from noticing the boom, especially once the post-9/11 recession kicked in. Higher education in Colorado, she said, suffered a “disinvestment” of state funds under TABOR. State funding to Colorado’s colleges and universities was cut by more than half, increasing the cost of tuition, and causing some schools to investigate the option of becoming private institutions.

Also, she added, implementing TABOR as an amendment to a state’s constitution – as the Oklahoma plan would do – makes it very difficult to repeal if the results are undesirable.

“When you don’t have an effective partner in the public sector, your private sector stumbles,” Hedges said, comparing a state’s budget to the pie her grandmother used to make.

When only she and her grandmother were eating pie, it could be made in a small pan. When the whole family was eating, a bigger pan was required (population growth, and increase in tax revenue, under this analogy). As her dad aged (baby boomers getting long in the tooth), and began eating more pie (requiring more services, mainly in health care), there was less pie (services funded by tax dollars) for everyone else, because the pie pan couldn’t get any bigger (TABOR, limiting the monetary pie pan of the state).

Brogdon however, countered with his own analogy, and he even brought props – a set of reins.

Government, he said, needs to be “reined in,” just like Sparky the Palomino at his Uncle Jack’s farm. Evidently, Sparky bit a chunk out of a young Randy Brogdon’s arm, but Uncle Jack made Brogdon get back on the horse (government) and show him who was boss (the taxpayers).

(Later in the forum, Wilson suggested that Sparky may have bitten Brogdon because the horse’s statesubsidized feed wasn’t enough to keep him well-fed.)

“I don’t like Colorado’s Tax Payer Bill of Rights, but Oklahoma’s proposed TABOR is tailor-made for this state,” said Brogdon. “This Taxpayer Bill of Rights does not cut any government spending. What it does is limit how fast [government] can grow.”

Brogdon claimed Oklahoma’s TABOR would provide an emergency fund (5 percent of the state budget).

Money from that fund could only be spent with the approval of three-quarters of both houses of the Legislature.

Currently, he said, spending from the “rainy day” fund can be approved at any time. TABOR would also establish a “budget stabilization fund” (10 percent of the budget), which could be used to fund “high priority” programs.

Both Gray and Auffet, however, said such measures were redundant, because the state constitution already requires the Legislature to balance the state budget. Also, voters several years ago approved a constitutional amendment that requires either a three-quarters vote of both houses or a vote of the people to approve any state tax increase.

“We already have a taxpayer bill of rights in Oklahoma,” said Gray. “It’s called our constitution.”

Auffet compared TABOR’S spending limits to restrictions put on a family’s budget – for several generations.

“If you think you can plan your budget 20, 30 years ahead, just go ahead [and vote for TABOR],” said Auffet. “But let’s not hog-tie ourselves (yet one more livestock analogy!). Let’s let people make the decision in the time they live in. Let’s not make those decisions for them.”

Brown offered yet another analogy: a plane crash. Pointing out that he, Purdy, and some of the audience members are pilots, he described how the National Transportation Safety Board conducts investigations of planes crashes. Oklahoma voters, he suggested, should play the part of those investigators.

“Colorado’s airplane, called TABOR, crashed, and we’ve all seen that,” he said. “Let’s not handcuff the pilot to his seat. We [elected officials] are elected to fly this plane, to adjust spending limits according to our budget.” Brown pointed out that under TABOR, funding to help fight the recent wildfires in Oklahoma could not have been allocated without a three-quarters approval of both houses – which, he said, is difficult to get on even the most mundane measures.

Jennings told the audience the rate of increase of health care costs already exceeds that of inflation, so keeping up with those costs under TABOR would be virtually impossible.

“We have to be able to keep up with the basic costs, just to provide services,” she said. “If we could limit [government] growth without limiting progress, that would be wonderful, but I don’t know how that happens.” It doesn’t, according to Wilson.

“Fifty years ago, a guy could make a living selling paint at Sears,” he said, adding that as women moved into the workplace, families became more reliant on public services like childcare, public education, and healthcare.

“Now [employers] only pay you half a wage because there are two of you working.”

Limitations on the funding of public services, he said, would only put more financial burden on families.

Both Williams and Hurst told the audience that funding for education – public and higher – was already low. TABOR, they said, was unlikely to increase it.

“TABOR establishes baselines for growth in state spending,” said Hurst. “And our baseline in teacher pay is somewhere around 49th in the nation. My goodness, even the Daily Oklahoman has said this is the wrong thing at this time. That says something.”

Williams said that five years ago, 75 percent of NSU’s funding came from the state, compared to 50 percent today. The university, he said, received $1 million less from the state in 2006 than in 2002.

“I’m going to be very concerned about anything that will take money away from higher education,” said

Williams, before rolling out his own transportation-related analogy to a round of audience applause.

“I don’t think there’s anyone in this room who will disagree that higher education is the engine that moves, that pulls, this train (the state of Oklahoma).”

Purdy told Brogdon that while he respected his opinion on how government should be controlled, he preferred to limit government by another, more proven method: voting.

“I think there are philosophical differences here, a divergence in opinion on the amount of trust we place in elected officials,” Purdy said. “I’m concerned about the reliance on a formula in lieu of the performance of those elected officials.”

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