There is good reason to fear that Oklahoma may now be in the early stages of a prolonged budget downturn.
A budget downturn comparable in magnitude to the last one would create a shortfall of just under $2 billion
in the years ahead. This report provides a caerful look at each of the choices for bringing the budget into balance -
tapping budget reserves, raising revenues and cutting expenditures - and argues that while cutting
bugdets will be necessary, it should not be the exclusive approach for addressing shortfalls.
Although Oklahoma’s economy continues to show signs of decent growth, the state budget is in rough straits.
The current budget situation is, to a considerable extent, a clear and foreseeable consequence of the tax cuts
enacted by recent legislatures. This 1-page brief makes the case that the lost revenues from tax cuts
would have allowed for funding of critical services that the current budget situation now puts in jeopardy.
After several years of robust revenue growth, Oklahoma now faces a budget crunch as the full impact of permanent tax cuts kicks in and
economic growth slows down. The Alliance has developed presentations and issue briefs that explore short-term funding challenges and the long-term structural budget deficit
that threatens our ability to meet our common goals as a state.
Where are your tax dollars going? How
are they appropriated? Why does it take so long for a bill to be passed?
Which party controls the House? the Senate? What is an "equalization
board" and why is it so important? The latest release of the Alliance for Oklahoma's Future's Oklahoma Legislative & Budget Primer will answer all
your questions, and more . . . .
Years of research have shown that the most efficient and effective fiscal tools at
the state level are those that provide quality public services to businesses and citizens alike.
Investments in public structures and institutions increases profitability and quality of life.
CAP's issue brief, "Growing Oklahoma's Economy: The Evidence on What Really Works" makes the case that
investing in education, health and infrastructure, not cutting the income tax, is the proven fiscal
strategy for economic growth.
Oklahoma administers seven public retirement systems serving
about 221,000 active and retired public employees as of 2005.
While most of these pensions are in good fiscal health, the
state’s largest pension plan, the Oklahoma Teacher’s
Retirement System (OTRS) is the third-worst funded public
retirement plan in the nation, with unfunded liabilities
exceeding $7 billion. All together, the state’s pension
liabilities exceed its assets by $10 billion. This issue
brief from the Community Action Project (CAP) shows that
Oklahoma's pensions are a long-term fiscal obligation that
will become more difficult to solve with each passing year
of inaction.
Oklahoma faces severe long-term fiscal challenges despite
its current rosy budget situation, according to an issue
brief from Community Action Project (CAP). The brief
presents evidence from recent national and state reports
revealing that Oklahoma is approaching a period where our
expenditure needs will greatly exceed our revenue capacities.
It calls on state policymakers to become more aware of the
looming structural budget deficit and begin to take steps to
avert a fiscal train wreck.
Oklahoma's Supreme Court issued an order August 31, 2006 disallowing
SQ 726, the state's TABOR petition, due to insufficient signatures and
evidence of substantial illegal participation of out-of-state circulators.
OKlahomans For Responsible Government, a ballot committee reprsenting 70
Oklahoma orgazniations opposed to TABOR, applauded the decision and vowed to
counter any new efforts to import this failed, out-of-state idea.
