Oklahoma lawmakers will have plenty on their plates when they convene the first Monday in February for this year’s session.
For starters, they will have about $310 million less to appropriate for the fiscal year which begins July 1. Some tough and critical decisions lie ahead for lawmakers. Some agencies, among them the education lobby, may be clamoring for increased funding rather than accepting a flat budget.
State Treasurer Scott Meacham has indicated he doesn’t think furloughs or cuts in staff at agencies will be necessary.
Oklahoma hasn’t felt the negative impact of the economic downturn some other states already are experiencing. Except that lower tax revenues are tied to a drop in energy prices and that could have a significant effect on the state budget, even more so than it already is.
Six years ago Shawnee’s Brad Henry was about to be sworn in for his first term as governor. Facing him and lawmakers was a $700 million budget shortfall, one of the largest in the state’s history.
Oklahomans weathered that, although it was painful, and there were cuts at state agencies.
According to an article authored by three officials with the Oklahoma Council of Public Affairs, Oklahoma has too many government employees. It says that Oklahoma’s ratio of government employment to the number of jobs in the private sector is a disturbing fifth highest in the nation.
The article further contends that bringing the ratio in line with the national average would have saved state taxpayers $2.8 billion in the 2007 fiscal year.
Even though Oklahoma so far has been spared the drastic impact of the current recession that other states already are feeling, manufacturing is beginning to feel some of the downturn’s effects, according to a Federal Reserve district survey. Traditionally, our state has trailed others in feeling the impact of economic slowdowns.
Because legislators will have about $310 million less to appropriate for the next fiscal year, there may be a push for them to raid the Rainy Day Fund. Gov. Henry has said he plans to resist that, and that is prudent on his part.
After all, when he took the reins in January of 2003, he and lawmakers faced a shortfall more than twice that amount.
Legislators and the governor must prioritize state spending, look at trimming agency budgets where possible and position Oklahoma for the future, so when the economy does recover, the state continues on solid ground and is ready to take advantage of growth opportunities.
Some businesses in the private sector across the state already are doing this, because if they don’t, they know failure is a certainty and that just isn’t an option.
Oklahoma has experienced downturns in the past. Oklahomans are tough, they are durable. We have faith our governor and lawmakers will act prudently as they address the issues which surround the current shortfall.
SHAWNEE, Okla. —
