A footnote on state budget rankings
The numbers released by State Treasurer Scott Meacham this morning aren’t pretty. But it’s not the worst in the country, he says.
With budget cuts in place and transfers, state leaders still have to find an additional $450 million to balance the budget by June 30, when the fiscal year ends. Those numbers still need to be approved by the Board of Equalization, which meets tomorrow.
State leaders have committed to restoring funds to an account that pays for education reforms that has also seen its collections drop off. So in reality, budget crafters most come up with $530 million to meet the balanced budget requirement. That money could come from the Rainy Day Fund, stimulus dollars or additional cuts. That’s up to lawmakers and the governor to decide.
A recent report by the National Conference of State Legislators says that Oklahoma has the highest percentage budget gap. Oklahoma’s actual collections are 18.5 percent below estimates. This is the largest in the nation, according to the report. But there’s a foot note to those rankings that must be considered, Meacham says.
Oklahoma hasn’t tapped its Rainy Day Fund yet. There is about $600 million in the Rainy Day Fund. The state also has federal stimulus dollars that could be used. Many states don’t have a savings account flush with cash or stimulus dollars, he said.
By Meacham’s calculations, that budget gap is closer to 14. 18 percent — which means Oklahoma’s budget numbers aren’t the worst in the country.
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Our state and nation are facing budget shortfalls that have not been seen since the Great Depression. Oklahoma’s state government officials are now dealing with the tough decisions that small businesses have already tackled; how to make the budget cuts that will keep them from going “out of business”. Despite having more than a year to prepare for this day, Oklahoma’s officials still seem to be unclear as to where, and how deep to make the needed cuts.
According to the Oklahoma Department of Commerce, the largest employer in the state, is the state. With almost 80,000 employees, Oklahoma’s budget cuts cannot exclude this obvious expense. However as we cut employees, what happens to the work they used to do? Will we find that some of the work was not all that important? Will other state employees pick up the slack and become more efficient? The answer to both these questions is yes, which in the long run will benefit Oklahoma’s taxpayers and the economy.
In the private sector, small businesses make the first cuts to programs and people that are least necessary and productive. They combine departments, cut workweek hours, reduce energy use, travel expenses, and solve problems by thinking out of the box. Decisions are made based on business, not politics or special interests. Oklahoma’s state leaders need to follow the lead set by these small businesses and act decisively and immediately.
Overlap and inefficiency is easy to identify in Oklahoma’s state government. As an example, there are over 500 school districts in Oklahoma with some having fewer than 100 students. Each district requires similar administration which can be consolidated and made more efficient if the school districts were consolidated. Our state’s court system is chocked with trials and hearings for petty crimes like traffic violations, misdemeanor alcohol and drug related crimes, most of which can be processed much more effectively. We spend time and money prosecuting illegal aliens and have hundreds of them serving time in our state and county jails at a cost of millions of dollars each year.
There is inefficiency in state government, few people; even state employees would deny it. In fact, a study made public by Oklahoma Council of Public Affairs showed that 88% of Oklahomans believe that state government wastes at least 10% of its tax revenue. One-third of the respondents said that the feel the state government wastes at least half of its budget.
2010 will be a year of forced change for our state and local governments, a year where budgets will be cut to the bone causing us to reevaluate government’s true duty and purpose. Many citizens will be looking forward to a leaner, meaner Oklahoma.