One of the major sources of revenue for your state is the tax on oil and natural gas. As the price goes down the tax revenue generated for the state goes down. So the low gasoline prices (a reflection of the low oil prices) are great for us all when we fill up our tanks but may create a major crisis in the state budget. Some estimates are that we will have up to $1 billion less to fund state services with next year than was available for this year. A $1 billion decrease means a percentage decrease of approx. 13.5% in the budget.
As a member of the Appropriations Committee I know fellow members are already looking at ways to save money or raise revenue to cope with the short-fall. We must be cautious that we are mindful of the long term effects of any decisions. Let’s consider a few of the many possibilities:
Consolidation of state agencies/administrations. This bears looking into. Could the Bureau of Narcotics be combined with the Oklahoma State Bureau of Investigation? Can Common Education, Higher Education, and Career Tech be combined under one agency? Can administrators of independent school districts (grades K-12) also administer the dependent schools (lower grades only)? Remember, each agency or position was initially created with a specific purpose in mind. Are they all necessary, or is there duplication?
Privatization of state assets. Can privatizing the Medicaid pharmaceutical program save money and still offer the same medications to patients? Can privatization of state parks/golf courses result in savings without raising admission prices?
Sale of state assets to raise cash. We must be careful that we look at the long term effects of this. While the sale may raise a large amount of cash, what are the consequences? We must be particularly cautious in selling state agencies that operate without any tax dollars (agencies that are self-supporting)—the Turnpike Authority and GRDA come to mind. These non-funded agencies operate for the benefit of our state and cost the taxpayer zero dollars. While we all hate to pay turnpike tolls or electric bills, would the rates be higher or lower when operated by new owners?
I am not advocating for or against any of the above at this point. They will generate much discussing and cussing in the near future. I will study each proposal deliberately and with an open mind. I do want to make you aware of the issues that will face your legislators.
As the in-depth discussions begin in the upcoming months I welcome your suggestions and input. I can be reached at dougcox@okhouse.gov or 405-557-7415. Thanks for allowing me to be your State Representative.
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