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  • 8/14/2019 Oklahoma Budget Outlook

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    OK LAHOMAS FISCAL OUTLOOK

    Fac ing t he Chal lenges t o

    ---revised March 2009--

    av aOklahoma Policy Institute

    dblatt ok olic .or - 918 382-3228

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    Ok lahom as Pat h t o Prosper i t y

    OUR STARTING POINT

    We investinvest our tax o ars inour public structurespublic structures to support

    our common goalscommon goals as a state.

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    Def in ing Our Com m on Goals

    1) EDUCATION: Ensure that all children receive a qualityeducation and that affordable and accessible higher education isavailable to all who are eligible.

    ---schools, colleges, universities

    Universal four-year old program and full-day kindergarten

    Nationally certified teachers

    OHLAP scholarship program

    But w e sti ll have a long way to go:

    Student Test Scores below expectations

    Teacher Pay among nations lowest

    College Graduation Rates trailing the national average

    Cost of higher education rising more quickly than family incomes

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    Def in ing Our Com m on Goals

    2) HEALTH & SOCIAL SERVICES: Ensure thatvulnerable individuals and families can meet their basic needs,including food, shelter, medical care, and protection from violence.

    ---public, non-profit and for-profit agencies and institutions

    Increased child health insurance coverage

    Quality-based child care reimbursement system

    Statewide nurse home visitation program

    But w e sti ll have a long way to go:

    Overall poverty and child poverty rates

    Health Status of residents

    Drug Abuse & Addiction

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    Def in ing Our Com m on Goals

    3) TRANSPORTATION &

    infrastructure allows for the safe and well-functioning movement of goods and people.

    roads, bridges, ports, communications grids

    Areas of Successful Investment:

    $300 million bond package

    But w e sti ll have a long way to go:

    Roads deficient

    Bridges crumbling

    a er as ew a er ys ems a ng

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    Def in ing Our Com m on Goals

    4) PUBLIC SAFETY: Ensure that families,neighborhoods and communities are protected from threats totheir physical safety and well-being.

    corrections facilities, law enforcement, emergencyresponders, courts

    Areas of Successful Investment: Drug courts

    Decrease in methamphetamine raids

    But w e sti ll have a long way to go:

    Crime Rates high

    Prisons overcrowded and understaffed

    Juvenile justice system under federal review

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    Def in ing Our Com m on Goals

    5) REGULATION & CONSUMER

    safely

    product safety, environmental quality, labor, banking

    6) ECONOMIC DEVELOPMENT: Ensure thatbusinesses receive opportunities and support needed to operateand compete effectively

    commerce, tourism, agriculture departments

    7) Public Administration: Ensure that governmentoperates in a democratic, accountable, and efficient manner

    eg s ature, execut ve, centra serv ces, treasurer, au tor, taxcommission

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    Def in ing Our Com m on Goals

    CONCLUSIONS

    In all these vital areas, we have madeimportant progress in recent years, but

    Oklahoma continues to fall short of its

    goals.

    We need renewed investment in our

    ublic structures to meet our common

    goals as a state.

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    Funding Publ ic Serv ic es

    How much do we invest to meet our goals?

    Oklahoma ranks 46

    th

    in per capita state andlocal government spending (2006)

    OKLAHOMA : $5,841 per capita direct general expenditures

    NATIONAL AVERAGE : $7,124 per capita direct general expenditures

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    Funding Publ ic Serv ic es

    I dont want to be the highest taxed state, but Im not sure I

    want to be the lowest either. I know that the things that I want

    will need to be aid for and robabl with taxes As a

    Republican, I like lower taxes and smaller government. But I

    also like my city to be safe, clean and progressive and to have

    good streets.

    - arry oc a-Chairman and CEO, Air Power Systems, former head of State Chamber of Commerce

    Tulsa World, October 7, 2007

    When I pay my taxes I dont feel conservative or liberal. I feel

    patriotic and lucky.

    -Wayne Greene, ,

    Taxes are the price we pay for civilization

    -

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    Funding Publ ic Serv ic es

    OK LAHOMA IS A LOW TAX STATE Oklahomans a amon the least amount of state

    and local taxes in the nation;A dime (10.1 cents) of every dollar earned by

    Oklahomans oes to fund state and local services.

    State & Localaxes as a % of

    State & LocalTaxes

    Income (2006) per Capita (2006)

    National Average 11.2% $4,001

    Oklahoma 10.1% $3,147

    Where Oklahoma RANKS 42rd 42nd

    Source: Center on Budget and Policy Prioritiesanalysis of U.S. Census Bureau data

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    Funding Publ ic Ser v ic es

    Major St at e Tax es , 1982-2006$3,000,000

    Ind . Incom e$2,500,000

    (In $ Thousands)

    Gen. Sales

    $1,500,000

    $2,000,000

    Severance$1,000,000

    Motor Veh ic le

    Motor Fuels

    Corp. Incom e

    $0

    $500,000

    1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

    Source: U.S. Census Bureau

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    Funding Publ ic Ser v ic es

    40%

    Major Taxes as % of Total State Taxes, 1982-2006

    30%

    35%Ind . Incom e

    25%

    Gen. Sales

    15% Severance

    5%

    10%

    Motor Veh ic le

    Motor Fuels

    Corp. Income

    0%

    1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

    Source: U.S. Census Bureau

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    Funding Publ ic Serv ic es

    FY 09 State A ro riations

    How much do we invest to meet our goals?

    10 Largest Agencies: $6.3 billion (88%)

    All Other Agencies (75 agencies): $829 million (12%)

    Transportation, 3%

    Corrections, 7%DHS, 8%

    OHCA (Medicaid), 12%Mental Health, 3%

    Career Tech, 2%Juv. Affairs, 2%Public Safety, 1%Higher Ed, 15%,

    Common Ed, 36%

    All OtherAgencies,

    12%

    Total Appropriations:

    $7,089.3 million

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    Funding Publ ic Ser v ic es

    FY 09 Appropriations by Legislative Subcommittee

    Total Appropriations: $7,089.3 million

    State AppropriationsState Appropriations AmountAmount($ Million)($ Million)

    a ura

    Resources

    2%

    Government

    Operations5%

    Other

    0%

    , ., .

    Health & SocialHealth & SocialServicesServices

    $1,214.7$1,214.7HumanServices

    10%

    u c a e yu c a e y ..

    Human ServicesHuman Services $7005.4$7005.4

    GovernmentGovernment

    Education

    54%

    Public Safety

    11%

    Health &

    OperationsOperations

    ..

    Natural ResourcesNatural Resources $160.0$160.0

    OtherOther $30.5$30.5

    SocialServices

    17%

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    Budget Trends & Out look

    State budget suffered steep downturn, deep cuts, 02 - 04

    Recovery allowed for spending increases, 06 08

    Annual Appropriat ions Totals ($ millions), FY 00FY 09

    (Includes Supplementals through FY 08 and R ainy Day spillover Funds for

    Recurring Agency Expenditures) - in $millions

    $6,217

    $6,760$7,043 $7,089

    $6,500

    $7,000

    ,

    $4,981

    $5,389 $5,491

    $5,191 $5,145

    $5,459

    $5,000

    $5,500

    ,

    $4,000

    ,

    FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09

    (initial)

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    Budget Trends & Out look

    St ate spend ing has been grow ing lessrap idly over t im e t han the s ta t e economy

    FY 02 FY 08

    5.4 percent: Personal Income average annual growth

    4.1 ercent: State S endin avera e annual rowth

    6.4%

    6.8%

    State Spending as a Share of Personal Income, 1998 through 2008

    6.3%.

    6.2% 6.2%6.1%

    5.7% 5.7%5.6%

    5.9%

    6.2%

    .

    25-year average (1982-2007): 5.9%

    5.4%5.3%

    5.5%

    5.0%

    5.3%

    5.6%

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    Budget Trends & Out look

    Where did the growth revenue go?

    , ,

    FY 06 FY 08

    De t. of Educat ion: 453M Human Services: $129M Teacher and support staff pay increases Health insurance coverage Full-day kindergarten

    Child care subsidy payments Replace lost federal rate Salary increases

    ea are u or y: Provider reimbursement rate increases Replace lost federal match Enrollment and utilization increases

    Operating costs Salary increases

    Higher Education: $271M Operating expenses of institutions Scholarships and loans

    . Road and bridge maintenance [ROADSfund]

    *ODOT received $25 million one-time funding in

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    Budget Trends & Out look

    Tax Cuts 2004-06

    Tax cuts were stretched out over several years; full impact willnot be felt until FY 11

    Lost Rev enues from Se lect Tax Cuts Enacted 2004 - 2006

    FY'05 through FY'10 (in $ m illions)

    $776.9

    $333.3

    $561.8.

    $400.0

    $600.0

    .

    $18.7.

    $0.0

    $200.0

    FY'05 FY'06 FY'07 FY'08 FY'09 FY'10

    sour c e: a oma a x omm ss on

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    Budget Trends & Out look

    Tax Cuts 2004-06 Revenue losses from tax cuts already nearly double the

    additional revenue from sin taxes approved by voters in 2004

    (lottery, gaming, tobacco).

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    Budget Trends & Out look

    Revenue Impact of Tax Cuts 2004-06Individual income tax collections are normally among the states fastest

    row n revenues sources, row n muc as er an sa es axes.

    However, for the two years of FY 07 and FY 08, while the income tax cutshave taken effect, sales tax collections rose at an annual average rate of

    7.2 percent, while individual income tax collections increased by just 0.4

    percent annually.

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    Budget Trends & Out look

    FY07 FY08: Revenue Slowdown Revenue collections slowed considerabl

    General Revenue collections were below prior year for firstthree quarters of FY 08 before recovering in the 4th quarter.

    Quart erly Change in Oklahoma General Revenue

    Collect ion s Compared t o Same Quarter, Prior Year,

    FY '05 - FY '08

    -0.0%5.0%

    10.0%15.0%20.0%25.0%

    -10.0%

    .

    FY

    '05

    FY

    '05

    FY

    '05

    FY

    '05

    FY

    '06

    FY

    '06

    FY

    '06

    FY

    '06

    FY

    '07

    FY

    '07

    FY

    '07

    FY

    '07

    FY

    '08

    FY

    '08

    FY

    '08

    FY

    '08

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

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    Budget Trends & Out look

    FY07 FY08: Revenue Slowdown General Revenue collections were almost flat in FY 08 compared to

    FY 07 (+0.9 percent, $54 million).

    Increased gross production tax (+$205.7 million) and sales tax

    (+$80.6 million) revenues helped make up for falling personal and

    - . .

    20.0%

    Annual % Change in General Revenue Collections, FY '03 - FY '09

    10.6%7.6%

    .

    4.0%0.9%

    0.0%

    5.0%

    10.0%

    15.0%

    -6.6% -5.3%-4.5%

    -10.0%

    -5.0%

    FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 (est.-2/9)

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    Budget Trends & Out look

    FY 09 Budget: Tightening the Screws FY 09 appropriations of $7.068 billion increase of $47 million (0.7%)

    State Appropr ia t ions His tory , F Y '00 - FY '09, in $ mi l l i ons( inc ludes suppleme nta ls , exc ludes one- t imes from Ra iny Day

    spi l lover funds)

    $5,389 $5,491 $5,191 $5,145 $5,459

    $6,217$6,760

    $7,043 $7,089

    $4,981$6,000

    $8,000

    $2,000

    $4,000

    $0

    FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09

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    Budget Trends & Out look

    FY 09 Budget: Tightening the Screws

    FY 09 a ro riations of 7.089 billion increase of 47

    million (0.7 percent)

    $281 million in additional revenues was made available through

    Most agency appropriations frozen from FY 08

    Additional dollars to ensure maintenance-of-effort in Medicaid

    $475 million bond package for roads and bridges ($300 million),

    university endowed chairs ($100 million), capital projects

    No funding for teacher salary increases, state employee raises

    No funding to agencies for rising fixed costs or mandatedretirement and health care benefit increases

    See FY 09 Budget Review and FY 09 Budget Basics at:

    http://okpolicy.org/fy-09-budget-review-may-2008

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    Budget Trends & Out look

    FY 09 Budget: Feeling the Crunch

    Spending-down of carryover and reserves

    , -

    tightening

    Hiring freezes and unfilled vacancies

    Cutbacks in services

    Tuition increases and increased user fees

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    Budget Trends & Ou t l ook

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    Budget Trends & Out look

    Things Are Tough All Over

    ,

    FY 11 estimated to total more than $350 billion

    Source: CBPP, State Budget Troubles Worsen, updated Feb 10, 2009 at:

    http://www.cbpp.org/9-8-08sfp.htm

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    Budget Trends & Out look

    Rough Patch Ahead

    General Revenue Col lec t ions

    5,981.1 5,946.45,902.76,000

    ,

    FY '06 Actua l - FY '10 Est im ated ( in $mi l l ion)

    5,407.2

    5,649.25,710.0

    5,356.65,500

    5,000

    FY '06 Fy '07 FY '08 FY '09 FY '09 FY '09 FY '10

    Ac t ual Ac t ual Ac t ua l J une Dec em ber February Feburary

    $240 million drop in FY 09 projections compared to initialestimate

    FY 10 revenues estimated to come in >$600 million below

    FY 08

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    Budget Trends & Out look

    Rough Patch AheadThe forecast is bad but its far from a worst-case

    Change in General Revenue Col lec t ions by

    Major Tax , FY '08 Act ual t o FY '10 Est im ate

    scenario.

    10.2% 8.8%

    0.0%

    10.0%

    20.0%( in $mi l l ions)

    -10.4% -10.5%

    -30.0%

    -20.0%

    -10.0%

    -37.6%

    -50.3%-60.0%

    -50.0%

    -40.0%

    Gr o ss I n c om e I n c om e M ot o r V e hi c l e Sa l es T ax T ot a l Ge n er a l

    Product ion

    Tax-Gas

    Tax -Personal Tax -Corporat e Tax Revenue

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls? Last budget downturn: cumulative budget shortfall of $1.2 billion

    Significant and painful cuts to education, Medicaid, social

    services, state parks, etc. A budget downturn comparable in magnitude to the last one would

    .

    F ig . 1 : A n n u a l a n d C u m u l a tiv e S h o r t fa l l in G e n e r a l

    R e v e n u e a n d H B 1 0 1 7 F u n d C o lle c t io n s C o m p a r e d t o

    F Y ' 0 1 B a s e l in e ( in $ m illio n s )$ 1 , 4 0 0 . 0

    $ 3 0 1 . 8

    $ 5 1 3 . 5

    $ 3 7 7 . 5

    $ 8 1 5 . 3

    $ 1 , 1 9 2 . 9

    $ 3 0 1 . 8$ 4 0 0 . 0

    $ 6 0 0 . 0

    $ 8 0 0 . 0

    $ 1 , 0 0 0 . 0

    $ 1 , 2 0 0 . 0

    $ 0 . 0$ 2 0 0 . 0

    F Y '0 2 A c tu a l F Y ' 0 3 A c tu a l F Y '0 4 E s t im a te

    A n n u a l Sh o r tf a l l c om p a r e d t o F Y '0 1 C u m u l a ti v e S h o r t f a l l c om p a r e d to F Y '0 1

    See: Options for Addressing Budget Shortfalls

    http://www.okpolicy.org/files/shortfalls_brief_Fin.pdf

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls?

    1 . Do w e c u t b u dg et s ?

    Governor Henrys FY 10 Executive Budget proposed $37.6 millionin budget cuts

    .

    From 1 percent to 10 percent, most 5 percent

    24 agencies exempted from budget cuts

    epresent 93 percent o tota state appropr at ons

    10 percent travel budget cut to most agencies totaling $8.9

    million

    See Budget Brief: Governor Henrys FY 10 Executive Budget Proposal at :- - - -.

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls?

    1 . Do w e c u t b u dg et s ?

    Vital state services and programs are chronically underfunded;

    Agencies are already struggling to absorb rising costs, newmandates and the effects of the last budget cuts;

    It is difficult to protect key agencies and services, such as

    education, health care, and public safety, when there are seriousand extended budget shortfalls;

    Cutting budgets is economically harmful in a downturn, evencompared to raising taxes; and

    Economic downturns create increased demands for health andsocial services to assist vulnerable Oklahomans.

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls?

    a e em p oyee ea c are c os s ave r p e

    sinc e FY 01.

    C o s t o f S t a t e E m p l o y ee H e a l t h C o v e ra g eo s t o f S t a t e E m p l o y ee H e a l t h C o v e r ag e ,i n $ m i l l i o n s , F Y ' 0 1 - F Y '0 8 ( p r o j e c t e d )

    $357.1

    $393.6

    $400

    $450

    $163.7$186.0

    $217.6$244.5

    $293.1

    $200

    $250

    $300

    $350

    .

    $100

    $150

    2001 2002 2003 2004 2005 2006 2007 2008

    proj.

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls?

    Pe nsion c o nt r ibut i ons fo r s t at e em lo ee s

    Contr ibu tions to Ok lahoma Pub lic Employees Ret i rem entSys tem F Y '0 4 F Y '0 9 (in $ m i l li on )

    have inc reased over $90 mi l l ion in f ive years.

    System, FY '04 - FY '09 ( in $ mi l l ion )

    $198.5$200

    $225

    $141.2

    $162.4

    .

    $150

    $175

    $105.6

    $114.3

    $100

    $125

    FY '04 FY 05 FY 06 FY 07 FY 08

    (projected)

    FY 09

    (estimated)

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls?

    Appropriations for Selected Agencies, FY 01 vs FY 09

    FY '01 FY '09 Change

    Water Resources Board $9,418,598 $6,801,524 -27.8%

    Insurance Commissioner $2,965,978 $2,515,943 -15.2%

    Treasurer $5,482,722 $4,668,763 -14.8%

    Consumer Credit $774,670 $669,042 -13.6%

    Human Rights Commission $816,753 $710,226 -13.0%

    Personnel Management $5,617,759 $4,891,745 -12.9%

    Tourism and Recreation $31,827,145 $28,041,991 -11.9%

    Teacher Preparation, Comm issionon $2,330,425 $2,059,982 -11.6%

    Indian Affairs Commission $287,843 $258,466 -10.2%

    Council on Judicial Complaints $300,504 $283,729 -5.6%

    Governor $2,772,408 $2,661,981 -4.0%

    Alcoholic Beverage LawsEnforcement $4,084,576 $3,925,266 -3.9%

    Labor $3,882,940 $3,760,284 -3.2%

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls?

    .

    SQ 640 requires a vote of both legislativechambers or vote of the people at time of nex tgeneral election

    States have devised various one-time and ongoing

    Governors budget includes $20 million in feeincreases as well as other revenue-enhancingmeasures

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    Budget Trends & Out look

    3. Ta in t o Rain Da Fund?

    How to Deal with Budget Shortfalls?

    RDF revenues can be appropriated as follows:

    Up to 1/ 4 of Fund upon declaration of emergency and legislative approval;

    Up to 3/ 8 for a shortfall in current year GR collections; and

    Rainy Day Balances, FY '01 to FY '08

    (opening balances i n $ mil li ons)$596.6

    .

    $340.9

    $461.3$496.7

    $400.0

    $500.0

    .

    $157.5

    $72.3

    $217.5

    $100.0

    $200.0

    $300.0

    $0.1$0.0

    FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY '09

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    Budget Trends & Out look

    4. Federal Ass is t anc e

    How to Deal with Budget Shortfalls?

    Economic stimulus packages (American Recovery and

    Reinvestment Act of 2009) includes significant aid for states.

    . on o a oma, accor n o es ma es

    Enhanced Federal Medicaid matching rate: $838 million

    State fiscal stabilization fund: $578 million

    way an r e cons ruc on: m on

    IDEA Special education: $157 million

    Title I education: $147 million

    ona amoun s or e uca on, ea , uman serv ces,

    energy, environment, law enforcement, employment, housing,

    transportation.

    See OK Policys summaries of the American Recovery and Reinvestment Act at:

    http://okpolicy.org/federal-stimulus-funding-brief-and-press-release

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    Budget Trends & Out look

    4. Federal Ass is t anc e

    How to Deal with Budget Shortfalls?

    Lots of Outstanding Questions about ARRA: Allocation of funds between state and local

    governments

    Increased spending vs. filling in shortfalls

    Use of one-time spending for ongoing obligations

    Timing of spending

    u c npu , accoun a y an overs g

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    Budget Trends & Out look

    How to Deal with Budget Shortfalls?

    The relentless underfundin of ublic structures leads to :

    threats to public safety and well-being;

    decline in performance;

    decline in public confidence and growing cynicism; and

    youre on your own attitude among advocates.

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    Long-Term Fisc al Out look

    Oklahoma like most states and the federal government

    faces a loomingstructural budget deficit

    s i tua t ion tha t oc c ursw hen a s ta te s no rma lgrow t h o f revenues isinsuf f i c ien t t o f inancethe norma l g row t h o f

    expend i tu res year a f te r year

    (CBPP, Faul ty Foundat ions: Stat e St ruc tural

    Budget Prob lems )

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    Long-Term Fisc al Out look

    Contributors to Oklahomas Structural Deficit

    PRESSURE ON STATES

    Unfunded mandates (NCLB, IDEA, Real ID)

    Declining Medicaid assistance

    Frozen block grant allocations

    Is the stimulus bill an aberration or the start ofa new era?

    Situation, at http://okpolicy.org/passing-the-buck

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    Long-Term Fisc al Out look

    State and local tax systems are not well designed to

    Contributors to Oklahomas Structural Deficit

    keep pace with economic and social change.

    Goods are taxed, services are not

    E-commerce

    Internet tax moratorium

    Corporate income tax avoidance

    26%

    34%

    26%

    tofconsumptio

    Services Goods

    Perce

    19601960 20072007

    usuall exem t from usuall sub ect to sales taxsales tax

    Source: Center on Budget and Policy Priorities

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    Long-Term Fisc al Out look

    Oklahomas Structural Deficit

    Before and After 200 4-2006 Tax Cuts (200 7 to 203 5)

    500

    1,000

    (500)

    0

    n$2005

    B e f o r e T a x C u t s

    2 000

    (1,500)

    (1,000)

    Mion

    A f t e r T a x C u t s

    (2,500)

    2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035Y e a r

    . ,Economics, Oklahoma State University

    P i i l f R D i i

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    Pr inc ip les for Revenue Dec is ions

    I think we ou ht to have a moratorium on tax reductions

    1. Take a breather from further tax cuts

    right now. Were bumping the limits and I think we

    certainly dont need to proceed down that path. I thinkwhat people really want is excellence.

    - av orenPresident, University of Oklahoma, Sept. 17, 2007

    We are not advocating any more tax cuts right now. Wee eve we s ou wa an see w a mpac e a rea y

    passed tax cuts have.

    -Roy Williams,

    House Economic Development Committee, Nov 1, 2007

    *** Final phases of income tax cuts are set to be implemented in

    2009 and 2010. Should these be re-examined?

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    Princ ip les for Revenue Dec is ions

    2. Align Revenues and Expenditures

    - -

    Pay-go legislation?

    Keep focused on the longterm picture

    Princ ip les for Revenue Dec is ions

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    Princ ip les for Revenue Dec is ions

    3. Modernize the Tax System

    Broaden the sales tax base

    (combined reporting)

    Review incentives and exemptions

    Revisit SQ 640?

    Prevents over-reliance on any single revenuestream

    Income tax is most vibrant tax source kee s

    pace w ith economic growth Non-income tax states face even worse

    immediate challenges and structural deficits

    Princ ip les for Revenue Dec is ions

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    Princ ip les for Revenue Dec is ions

    5. Make the Tax System Fairer

    Low- and moderate-income Oklahomans pay a greater share

    - .

    Progressive effects of the income tax are more than offset by the

    regressive effect of sales and property taxes.

    By Incom e Group, Oklahoma 2003 [source: Instit ute for Taxation and Economic Pol icy)

    12

    14

    sbyIncome

    6

    8

    10

    StateandLocalTax

    Level

    Sales

    Property

    Income

    0

    2

    4

    tofIncomePa

    idin

    Lowest

    20%

    Second

    20%

    Middle

    20%

    Fourth

    20%

    Next

    15%

    Next 4% Top 1%

    Perce

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    Cont ac t In form at ion

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    Cont ac t In form at ion

    David Blatt, Director of Policy

    4606 South Garnett, Suite 100 |Tulsa, Oklahoma 74146

    ph: (918) 382-3228

    [email protected]

    Better Information, Better Policy

    Oklahoma Policy Institute provides timely and credibleanalysis of state policy issues.

    www.okpolicy.org