OCPA: Focusing the Special Session

By OCPA President Jonathan Small

Here we are, preparing for a special legislative session (at $30,000 per day!) to maintain total government spending levels while the state is in a recession. Some are focused only on where to reach into your pockets with tax increases.

Working Oklahoma families, faced with $13 billion in lost income during the recent recession, have arrived at the solution. It’s called cost-avoidance, as in spending only on critical needs, and not counting on being able to hijack more from someone else’s wallet.

There are simple cost-avoidance steps lawmakers could take in one afternoon to maintain the authorized spending priorities and fund a teacher pay raise:

How about auditing Medicaid enrollment to make sure those receiving benefits are truly eligible? Other states have done this and saved hundreds of millions. Savings to Oklahoma? $57 million.

Special interests and their wind turbines are still draining our treasury. Cap zero-emission tax credits and ad valorem reimbursements for local taxes those privileged wind moguls aren’t paying and end their exemption from sales taxes on wind turbines. Savings up to $73 million.

Happy to be subsidizing Hollywood producers? End that Hollywood subsidy and save $2.67 million.

Are you thrilled to be subsidizing Indian tribes with a 50 percent rebate on tobacco sales from their smoke shops? End that and save $40 million.

The CIRB fund holds dollars for county road projects, and it has regular surpluses that aren’t needed. Transfer $102.7 million to the state general fund and you’ve solved almost half of the cash needs with one simple action.

Some agencies generate their own income, like the Spaceport Authority (rockets launched to date: zero) and subsidized public television, OETA. Stop appropriating general fund dollars to them. And stop sending tax dollars to the strictly local function of the J.M. Davis Museum. Savings? $2.2 million.

In one afternoon of cost-avoidance and use of available cash, we won’t need to raise taxes by a single penny. After you cover the authorized budget, you’d have enough money to give classroom teachers a $3,800 pay raise.

Lawmakers should also allow Oklahomans to vote on reforming the Tobacco Settlement Endowment Trust (TSET). With more than $1 billion in the bank and millions more from investment earnings and cigarette sales, TSET should be refocused on vital services rather than harassing Oklahomans to drink water.

Policymakers have a great opportunity to show awareness, respect, and deference for working Oklahoma families by not taking a page from former President Obama and increasing tax burdens during a down economy. Let’s hope lawmakers focus on cost-avoidance this special session.

Jonathan Small serves as president of the Oklahoma Council of Public Affairs (www.ocpathink.org).


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