Capitol
Considerations
A Weekly Column by
Senator Micheal Bergstrom
You
Thought Last Year Was Bad
Hold on to your
hats. This is going to be a bumpy ride.
The State’s
budget problems are even worse than you thought.
Let’s start with
the projected budget shortfall that’s somewhere in the $880 million range.
(That doesn’t include the recent revenue failures.) Now, let’s add to that the more than $100
million that we’re trying to come up with right now because some of the state’s
agencies were only given funding in the current budget for 10 months.
You heard that
right. Last year, the legislature solved part of the budget crisis by only
budgeting funds for 10 months instead of 12. That is called ‘kicking the budget
crisis can’ down the road. That can is now full of worms and needing to be
dealt with.
So, here we are
with a billion dollar budget shortfall.
Don’t worry. It
gets worse.
It turns out last
year the legislature decided to empty out the state’s ‘Special Cash Fund,’ which
is sort of like a bank account a business might keep working capital in. The
problem is, constitutionally, the State of Oklahoma has to pay its bills. That
takes money. You know, cash.
So, to do that, the
folks who pay the bills, also known as the Oklahoma Office of Management and
Enterprises Services (OMES), had to borrow a little from the Rainy Day Fund, in
the amount of $380 million.
Oh, and that has
to be paid back to the Rainy Day Fund by June 30.
That means that
our budget shortfall is actually just under $1.4 billion.
Last year it was
$1.3 billion. So this year is even worse. If your head is starting to hurt
thinking about that, just imagine how I feel.
The question is
how do we fix this? Well, we need to start by putting everything on the table.
Here are some examples.
One
- We need to scrap the next income tax cut. The Senate has. Now it’s up to the
House.
Two
- Find every efficiency we can, though I doubt we are going to find a billion
dollars that way.
Three
- Get rid of some tax incentives and credits, and not just wind production
credits.
Four
- Pass a production tax on electricity generated
by wind.
Five - Consider an increase of taxes on
diesel and gas. They have not been increased in three decades.
Six
- Consider increasing the cigarette tax.
We will need to
find a balance of where we can cut, like tax credits and line items in
agencies, and where we can bring in more revenue if we are going to balance
this budget and not just kick this can down the road again.
I am interested in feedback from my
constituents, so if you have any questions or comments, please email me at bergstrom@oksenate.gov. My office can also be reached
by phone at 405-521-5561.