TABOR and Rural Oklahoma
State Question 726, known as the "Taxpayer's Bill of Rights" (TABOR), is a potential threat to rural development in Oklahoma. It would impose a constitutional restriction on government spending to a formula based on the annual rate of inflation plus population. Under TABOR, the ability for rural communities to maintain services that keep pace with a growing economy is seriously undermined. In 1992, Colorado became the only state to impose TABOR limits in its constitution. The impact proved so devastating to the state's economy and rural development efforts that this past November the people of Colorado voted to suspend TABOR. As seen in Colorado, SQ 726 will limit opportunities for rural Oklahoma.
Flawed Formula
- Average inflation rates are calculated using the consumer price index for urban areas (CPI-U). The CPI is a reflection of urban household purchases and not those goods and services consumed by government, such as healthcare, education, and public safety. The inflation rate for these items grows far faster than household goods, and such services are more expensive in rural areas.
- Average population rates are an inaccurate measure of government activity. The population served by government grows faster than the average population. For example, senior citizens predominantly live in rural Oklahoma. Relative to the average population, seniors consume a greater share of state services. Imposing rigid spending limits impedes the state's ability to respond to the needs of this growing segment of the population.
Rural Representative Government
- Under the provisions of SQ 726, rural legislators will be stripped of their ability to effectively represent their constituents. Budget decisions will be moved from the oversight of the legislature and into the hands of special interests.
- SQ 726 proposes that issues be addressed through statewide ballot initiatives. The impact will be that three or four highly populous urban counties in Oklahoma will control the state's fiscal agenda.
Colorado Example
- In Colorado, TABOR led to the elimination of state support for local and regional health agencies. Services for the elderly were cut or eliminated. And, over 100,000 senior citizens lost property tax exemptions because of mandated cuts.
- Colorado began charging fees for 4-H clubs, Master Gardener accreditation programs, and agriculture technical assistance for ranchers and farmers. Local farmers were burdened with new fees. To keep other agriculture programs funded, the Legislature raided various rural economic development grant funds. As a result, rural development programs were eliminated.
- The budget restrictions meant fewer bridge repairs in rural counties, fewer services to farming communities, and less investment in health care and education.
The negative impacts of TABOR would be multiplied for rural areas. Oklahoma would lack the resources to assist rural Oklahoma in achieving sustainable development.