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Benge gloomy on state's finances
The House speaker says the executive branch is "too optimistic" and that deeper cuts are warranted.
WANTS MORE DRASTIC ACTION
House Speaker Chris Benge:
"We may be looking at a $1 billion shortfall," the Tulsa Republican said to bolster his argument that state spending should be sliced even more. "If we put it off, it's going to make it more painful later on" should the economy and Oklahoma's fiscal situation become even worse.
By RANDY KREHBIEL World Staff Writer
Published:
11/19/2009 2:30 AM
Last Modified: 11/19/2009 3:57 AM
Legislators fear that "we may be boxing ourselves in" by not dealing more aggressively with dramatic revenue shortfalls, House Speaker Chris Benge said Wednesday.
Speaking a day after Gov. Brad Henry announced a three-point plan to address the widening budget gap, Benge, R-Tulsa, said legislative leaders would continue to work with Henry but that it is time to "interject some reality" into the situation.
"I felt like the governor and Treasurer (Scott) Meacham are taking a too optimistic view," Benge said. "We may be looking at a $1 billion shortfall. I hope we're not, but if you project it out, that's what it would be."
He said he believes that it would be "prudent" to cut state spending more than the 5 percent already ordered by the Office of State Finance.
"If we put it off," he said, "it's going to make it more painful later on."
General revenue fund collections for the first four months of the fiscal year that began July 1 are nearly 25 percent less than projections and nearly 30 percent less than the total of the previous year.
The response to those shortfalls has been 5 percent across-the-board reductions in monthly allocations and temporary fund transfers that have to be repaid before the fiscal year ends on June 30.
Benge said the practice is essentially committing money from the state's $600 million constitutional reserve fund without the consent of the Legislature.
"We've become increasingly uncomfortable that we are boxing ourselves in," he said.
Nevertheless, Benge said, a special session to deal with the budget would have little value until mid- to late-December, when the first preliminary revenue estimates for fiscal year 2011 are issued.
"We need to know how big the hole is, and we need to know something about 2011," he said.
Benge disagreed with Meacham's assessment that the state's economy has bottomed out.
Pointing to an Oklahoma State University report issued Tuesday, Benge said he sees no reason to expect state revenues to recover this year or even next.
Benge acknowledged that some legislators might view the situation as a chance to eliminate some elements of state government.
"This is definitely an opportunity to reassess," he said. "It's not necessarily anything anyone is getting delight out of. It may be we'll look at some programs that in the past have been off limits."
Benge said he hopes that steps will be taken to better level out fluctuations in state revenue and that he thinks increasing the cap on the reserve fund "will be part of a serious discussion."
Randy Krehbiel 581-8365
randy.krehbiel@tulsaworld.com
By RANDY KREHBIEL World Staff Writer
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Some reader comments for this story were copied from "
Benge: Time to "inject some reality" into Oklahoma's budget
," which was published on 11/18/2009.
Report Comment
parksport
, (11/18/2009 12:59:36 PM)
The harsh economic realities are causing budget woes on many levels. It is better to go ahead and face them sooner rather then later.
Report Comment
Exothrmc
, (11/18/2009 1:20:44 PM)
The short fall is the lack of business leaving Oklahoma for over the pond or across border wages. Yes, we need to face the music and decide what Oklahoma needs 20 years from now. We have lost Worldcom,Williams Communications, 9 or so Wrangler plants, and many other major businesses that have left rural Oklahoma a ghost town. This is not because of worker's compensation law either. We need to reinvent Oklahoma and keep our well educated students here to build it and keep their children here the next 40 years. I will refrain from political views from the major cuts that have taken place over the past 4 years as our State will fold if Oklahomans and our representatives don't do something.
Report Comment
Corvetteguy
, Tulsa (11/18/2009 1:50:48 PM)
Speaker of the House Chris Benge needs to understand that Governor Brad Henry has ordered that the state lottery would solve our budget problems..........
Report Comment
desert fox
, (11/18/2009 2:19:26 PM)
Ex Governors Nigh and Bellmon warned these clowns about the tax cuts they had to have to make themselves look good. This crisis is what the rightwing nuts ordered and wanted.They want Gov't services stopped, they should "man-up" and admit it.
Report Comment
Mar
, Tulsa (11/18/2009 2:28:34 PM)
Cut waste on all levels city, county, state and federal, there is plenty of waste. Yes, some segments of the population will whine and scream, but the facts are we don't have the money for all the pork, the gravy has came to an end.
There are plenty of places to cut where waste will not cause much harm to most people.
Report Comment
thehero
, (11/18/2009 2:28:37 PM)
I wonder when Benge and the rest of the Legislature will begin to take their furlough days or RIF their staff?
Report Comment
Mar
, Tulsa (11/18/2009 2:29:20 PM)
*gravy train
Report Comment
bluedog1
, (11/18/2009 2:40:33 PM)
That's funny, the tax cuts for the upper crust and credits to the big Corps that have left jobs stagnant equal about a billion dollars!! Who did that??hummmm
Report Comment
Corvetteguy
, Tulsa (11/18/2009 2:40:56 PM)
desert fox,
how come Florida is doing pretty well with no state income tax..........?
.....One of several states with no state income tax.
Report Comment
Tulsa World Staff Writer Randy Krehbiel
, Tulsa (11/18/2009 2:45:56 PM)
Actually, Florida is in much worse shape financially than Oklahoma. Along with California and Michigan, it's considered one of the most fiscally fragile states in the union. For the first time in memory, it is losing population.
The reason Florida has no income tax is because it has a very high property tax.
Report Comment
bluedog1
, (11/18/2009 2:53:14 PM)
If you study the tax foundation guides on states you will see that the total tax on per-capita basis including all sources just about balances out. there is no free lunch for the needs of society.
Report Comment
Corvetteguy
, Tulsa (11/18/2009 3:00:43 PM)
You are right about the property tax, Randy. But the legisilature has promised to lower it this session. Many Floridians are leaving the state and moving next door to Alabama with it's much loser property taxes.
I sold a Perdido Key, Florida beach home myself.
One major reason the state is a liitle cash-strapped right now, is the fedaral government forced the state to widen exit highways coming out from cities...... for evaculations during hurricanes.
Report Comment
FUTURE WORLD
, Tulsa (11/18/2009 4:18:22 PM)
Yes we have relatively low property taxes. But I think it has more to do with our source of revenue. Oil and gs production taxes fluctuate so much and other streams are less than definitive from month to month and year to year. But let's all face the facts, Oklahoma is a recipient state. In other words a welfare state that depends on it's check from the federal government. We depend on donor states to pay our way. If not for California, Texas, New York and 9 others we'd be driving on dirt roads.
Report Comment
Homeplate2
, Porum (11/18/2009 5:40:45 PM)
I have always heard that we are a Donor state when its comes to roads. Since when did we become a reciepient state?
Report Comment
confederateU
, (11/18/2009 7:12:04 PM)
how about we inject some reality into brad henry and his democratic agenda? ok state govt. services are too big sloppy and ineffective - too many cooks and not enough chefs who do quality work. as a small business owner, with the obamanomic tax hikes and increased expenses we have been forced to fire a couple of democrats and refuse to spend on fluff until obama is OUT!
best thing i ever heard was the one about the older couple who walked out of a store front, saw a cop writing a ticket, they questioned the cop and argued with the cop on the ticket, he wrote a few more for their belligerance, and when the cop left the couple left, without the car - it wasn't theirs, it had an obama sticker on it.
Report Comment
oldrustytulsa
, Tulsa (11/18/2009 8:07:51 PM)
What the states and federal government ought to do, is just what was done during the last economic depression, Have they not learned anything, just doing the same thing and expecting different results, well that aint gonna happen.America youth will work, but they got to have a job to do first.Get rid of all the regulations, and put America to Work.
Report Comment
FUTURE WORLD
, Tulsa (11/18/2009 8:27:01 PM)
True reality would be to just let the money run out and shut it down until the next budget. Talk about real.
Report Comment
Thunder196
, Tulsa (11/18/2009 8:47:54 PM)
FW
Where do you get our property tax is relatively low?
Report Comment
Faith
, (11/18/2009 11:11:03 PM)
Unfortunately this legislature doesn't understand reality, they don’t even understand how bad it this crisis was and too bad Brad Henry isn't a real Democrat.
Texas has no federal income taxes but property taxes are very high.
Report Comment
Faith
, (11/18/2009 11:12:04 PM)
Thunder196, compared to other states, OK has low property taxes, don't give them any ideas, please.
Report Comment
Alan Shore
, (11/19/2009 6:27:10 AM)
Thank you, Republican majority...
Report Comment
fld11
, (11/19/2009 7:50:32 AM)
Stop spending. They'll blow through the rain day fund and will finally be forced to take positive action. Until then, it's status quo.
Report Comment
Que
, Terlton (11/19/2009 8:16:14 AM)
House speaker Benge should be gloomy. There is only so much that can be cut. It is the Legislature's job to raise the revenue needed by the state but the Legislators - and perhaps the citizens- do not have the will to do it.
Report Comment
Ignatz
, A nice place where Democrats hold every office in the County. (11/19/2009 8:41:09 AM)
If only we had more 10 Commandment monuments. I suggest Benge ask his owners, the insurance industry, how to deal with this problem. I'm sure they'll show as much concern and compassion as they do to their victims, I mean "customers."
Report Comment
Whocanutrust?
, (11/19/2009 9:24:48 AM)
Did the financial planners not see this coming? Fat meat is greasy!
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