OPEA Calls for Tax Credit Review in Light of Budget Cuts

The Executive Director of the Oklahoma Public Employees Association (OPEA) is calling for a review of corporate tax incentives to help close the budget gap.

“It appears that we are headed for another budget shortfall and state agencies will have a difficult time cutting their budget because they have had to make significant reductions during the past few years,” said Sterling Zearley, OPEA Executive Director. “We’ve reached a point where we just can’t cut more to balance the budget. We also have to look at how much revenue is coming in.”

Zearley contends if state agencies are held up for review and audits, so should tax credits.

“Oklahoma has established various tax credits and incentives to encourage economic development but  the state doesn’t follow up to see if those incentives help create jobs and improve the economy, “he said. “State agencies are reviewed to make sure they are doing what they are supposed to. It makes sense to review tax incentives also.”

OPEA warns if the budget cuts continue state employees will lose jobs and services will be reduced. The association also believes that common education and higher education should be subject to the reductions just like other agencies. Zearly also said pre-appropriation funding needs scrutiny.

“Millions of dollars are never made available to lawmakers to appropriate to state agencies for their services,” he said. “There is a significant amount of available money in the state budget that ‘comes off the top’ and never reaches the appropriation process.”

Governor Fallin issued an executive order earlier this week instructing agencies to prepare plans for ten percent spending cuts. Those plans are due to the Administration in December.


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