The Problem with TABOR

Allowing revenue or expenditures to grow with population and inflation may sound reasonable, but it falls far short of being able to fund the ongoing cost of government. In an era in which health care costs are growing far faster than inflation and populations are aging, limiting the rate of spending growth to inflation plus population growth forces annual reductions in the level of government services.

TABOR shrinks the scope of what government can accomplish and creates conditions that each year pit programs and services against each other for survival. And once such limits are embedded in a state constitution, they usually cannot be removed or modified. They undermine existing services for children, youth, and families and make any new initiatives virtually impossible to undertake.

The Flawed Formula

In Oklahoma, tying our state's revenues or expenditures to the formula of population plus inflation is flawed.

POPULATION - Average total population growth is calculated using data compiled by the US Census Bureau. The average population of our state, however, is not the average population served by our government. And, this population grows at a much faster rate than the general population of Oklahoma.

Total Population VS. Populations Served by Government

Population Groups Average Growth
TOTAL POPULATION 1.2%
K-12 Enrollment 1.3%
Disabled Population 2.9%
State Prison Population 5.4%
Medicaid Enrollment 4.6%

INFLATION - Inflation is measured by the goods purchased by consumers (Consumer Price Index - CPI). The following charts show that what government buys IS NOT the same as what average consumers buy, and that these goods are impacted by inflation at different rates.

Items Consumed by Average Citizens VS. Oklahoma State Government

Consumables Consumer Oklahoma State Budget
Health Care 6% 16%
Education 3% 55%
Public Safety 0% 11%
Transporation 17% 5%
Housing 41% 0%
Food 16% 0%

Rate of Change for All Items VS. Services Purchased by State Government

Inflation Factor % Change (1993-2003)
CPI-U -- All Items 27%
CPI-U -- Medical Care Services 51%
CPI-U -- Transportation Services 33%
CPI-U -- Education 71%