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Plunging revenue squeezes area cities
 
By BRIAN BARBER World Staff Writer
Published: 10/24/2009  2:22 AM
Last Modified: 10/24/2009  4:03 AM

As Tulsa leaders work to trim $6 million from the budget, other area cities are also grappling with cutbacks as October sales-tax revenue plunged across northeast Oklahoma.

Sand Springs' revenue dropped 11 percent over October 2008, Oklahoma Tax Commission reports show. Its check was $765,006, compared with $859,801 for the same month last year.

The money was collected between Aug. 16 and Sept. 15.

"Anywhere we can save money, we're doing it," Sand Springs City Manager Doug Enevoldsen said, noting 20 positions have been eliminated during the past 14 months.

The city, like many others posting negative numbers for several months, is also cutting back on training and travel expenses and has a hiring freeze in effect.

Broken Arrow's revenue dipped 8.4 percent over October 2008. Its check was $2,438,474, compared with $2,663,269 last year.

Broken Arrow Finance Director Tom Caldwell said spending restrictions have been in place for some time.

"But if this continues through the holidays, we're going to have some serious discussions on what more needs to be done," he said.

Other cities with negative numbers include Catoosa, down 25.5 percent; Muskogee, down 12.3 percent; Bixby, down 10.7 percent; Claremore, down 6.5 percent; Owasso, down 4.7 percent; Sapulpa, down 4.3 percent; Skiatook, down 2.8 percent; and Jenks, down 2.7 percent.

Officials in those communities said they are dipping into reserve funds, not hiring and trimming costs.

When Tulsa leaders received their October sales-tax revenue earlier this month, they announced it was down about 11.6 percent.

Tulsa's check was for $16,221,651, compared with $18,344,914 in October 2008 — a more than $2.1 million difference.

Mayor Kathy Taylor said the budget will have to be further reduced from $567 million to $561 million. It was originally $578 before earlier cuts. She is set to present her recommended changes to the City Council on Tuesday.

Oklahoma City experienced a similar drop for October at 11.9 percent over the same month last year.

Oklahoma City Budget Director Craig Freeman is going through a similar process to Tulsa right now by asking department heads to submit proposed cuts.

"I'm sure we're going to eliminate some positions, but where they will come from right now is unknown," he said.

Oklahoma City has not had employee furlough days like Tulsa, but it has had other cuts and a hiring freeze in place. All options are being looked at, Freeman said.


Brian Barber 581-8322
brian.barber@tulsaworld.com
By BRIAN BARBER World Staff Writer

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Some reader comments for this story were copied from "Area cities dealing with declining sales-tax revenue," which was published on 10/23/2009.

Report Comment
Daven, Tulsa (10/23/2009 12:21:43 PM)
Oh? Well judging by all the post on here, I thought Tulsa was the only city dealing with it and it was Mayor Taylors fault! lol!
Report Comment
billw001, Tulsa (10/23/2009 1:08:59 PM)
The mayor just can't get the numbers right... Or anything else for that matter
Report Comment
Welcome to America !, Claremore (10/23/2009 1:09:46 PM)
Surprise, surprise ! People are spending their money at Indian Casinos more and less and less is going to the cities and state of Oklahoma. Smart, real smart.
Report Comment
Observer3, (10/23/2009 1:13:11 PM)
A huge part of Tulsa's budget problems are Mayor Taylor's fault. And while the City's department heads are cutting services and employees, the Mayor is off in New York City at some "education conference," which seems as though she's already started her new job with the State after leaving Tulsa in a mess. Those that did not create the budget problems are the ones left to deal with them while Kathy Taylor goes on her merry way to Oklahoma City.
Report Comment
wk, (10/23/2009 1:17:35 PM)
I just wish the same thing happened in the federal government when tax receipts declined. Instead, they just print more/borrow more. Thank God the state, city, county can't do it to us too.
Report Comment
irwindale, Tulsa (10/23/2009 1:29:16 PM)
Tulsa's other problem is the Chamber of Commerce which over the years used city $ to promote and develop areas outside Tulsa proper.

...and you see what we have.
Report Comment
Welcome to America !, Claremore (10/23/2009 1:29:20 PM)
By the way, do Indian Casinos pay income tax ?
Report Comment
Welcome to America !, Claremore (10/23/2009 1:37:40 PM)
Irwin, I spoke to Jim Mautino recently, he's running for Council again and if elected, he says he will reopen the investigation into the Great Plains Airlines debacle that stole thousands of dollars from the tax-payers. He says there is still $ 20K set aside and approved to investigate this but the current administration's hands are dirty and they want no part of it.
Report Comment
tnt091605, (10/23/2009 1:43:26 PM)
Tulsa police took furlough days already. That equates to 20 less police officers patrolling the streets. Crime continues to be out of control in Tulsa but that is not the priority. Baseball parks, the BOK center and new city halls is the priority. Now lets see what the mayor is going to do to solve the problem.
Report Comment
Welcome to America !, Claremore (10/23/2009 2:00:43 PM)
She's already made her plans public - she's going to high-tail it out of town on the first train she can catch.
Report Comment
Welcome to America !, Claremore (10/23/2009 2:01:26 PM)
Come on, is it that hard to figure out: Do Indian Casinos pay income tax ?
Report Comment
Welcome to America !, Claremore (10/23/2009 2:29:02 PM)
An hour and a half and no one knows the answer !
Report Comment
forkandknife, Tulsa (10/23/2009 2:32:52 PM)
Mayor is doing what right at the moment?
Report Comment
lucky girl, mine (10/23/2009 2:33:28 PM)
Good question forkandknife.
Report Comment
Welcome to America !, Claremore (10/23/2009 2:40:43 PM)
IRS has determined that Indian tribes are not subject to federal income tax
because they are political agencies not included within the meaning of the
income tax provisions of the Internal Revenue Code. Thus, revenues
generated from gaming operations of federally recognized Indian tribes are
not taxable. From the handy-dandy google website.
Report Comment
Welcome to America !, Claremore (10/23/2009 2:42:37 PM)
Boy all the advice given to those in the position of decision-making, Brad Henry, you should've listened. There are now over 400 Indian Casinos in Oklahoma alone. How much tax are they paying ? How many dollars are they taking out of the economy ?
Report Comment
Few Clothes, America (10/23/2009 2:46:01 PM)
I just got here and WTA, you are right. I could have answered that.
Report Comment
Mar, Tulsa (10/23/2009 3:05:57 PM)
To state that it is all the fault of the casinos for the fall in sales taxes is ridiculous.

The reason for the fall in sales taxes is due to many factors, one is due to a lot of people being unemployed (like me), so people are cutting back on their purchases, a lot of people are going with just the necessities. Other people are holding their breath that they don't lose their jobs, so they are cutting back ahead of time.

Certain months of the year are just slow in sales/purchases. Having worked in retail for a number of years, certain months customers didn't purchase as much, like January through March due to being after Christmas holidays and everyone spent more than they should have and also tax time is facing them in April. June and July are slow months also since August and September will be expensive months due to school supplies, school clothing, school fees, etc. Naturally November and December sales go up due to the holiday shopping.

Then the economy as a whole all across the U.S., sales taxes, etc. are down due to the poor economy, job losses, and the fear of the current administration and politicians as to what they are going to do with health care, Medicare, Social Security, etc., it's called the unknown.
Report Comment
The A Team, (10/23/2009 3:06:37 PM)
Oklahoma City has not had employee furlough days like Tulsa.

Taylor the Tyrant's frivolous spending is why Tulsa's budget is in worse shape than everyone else.

Kathy Taylor - Make Life Bitter
Worst Mayor Ever.
Report Comment
Mar, Tulsa (10/23/2009 3:10:25 PM)
I have to say that I didn't vote for Kathy Taylor. But The A Team, whatever will you do once Kathy Taylor is no longer Mayor???

Oklahoma City has not had employee furlough days....yet. I don't look for the economy, local or national to do well for some time. Town/Cities that have not done furlough days, I would guess at some point will have to do so.
Report Comment
Welcome to America !, Claremore (10/23/2009 3:17:18 PM)
If I stated that the sole reason for the drop in sales tax revenue falling was the fault of the casinos I would be wrong; I did not. I'm not naive enough to think that is the only reason. It is a big reason however. They take Billions of dollars in with no mandatory reason to pay taxes on those dollars; those are dollars, many of which, would be spent in our local economy. Multiply that number times all the casinos statewide and that is a huge number and that's a whole lot of lost revenue.
Report Comment
Welcome to America !, Claremore (10/23/2009 3:20:13 PM)
Mar, Tulsa's economy as a whole is in pretty good shape compared to some cities in Indiana and Illinois; unemployment is above 20% in many of their major metropolitan areas. Illinois, that's Obama's home state. hmmmmmm Amazing !
Report Comment
Welcome to America !, Claremore (10/23/2009 3:21:15 PM)
My comments on this topic are simply due to the lame writer for the TW who chose to print this garbage; they don't really want answers to the problems, only to stir the pot and point fingers.
Report Comment
aint missbehavin, no thanks (10/23/2009 3:37:09 PM)
shows me some shouldnt be in charge,and a calculator might be in order,better yet just step down.Evidently your looks aint helpin the economy.
Report Comment
Zoltar, Boltar (10/23/2009 3:52:22 PM)
Speaking of our non-federal tax paying Indian Casinos, several months ago good fortune came down on me and I inherited around $20,000 from an old friend. Since this was found money I decided to try my luck at the new Creek & Cherokee gambling establishments here in town, I played long and hard at everything from the penny machines to the $10 machines and won small amounts along the way; no jackpots at all. I had the time of my life! Two weeks later I walked out of the Hard Rock at 3 AM one morning virtually penniless and the state and city of Tulsa got zero tax dollars from my good time. I realize how reckless this was but my point here is that the Tribes are sucking away our dollars that would have been spent elsewhere and taxes would have been collected. I’m back to being a stupid loser schmuck and our states tax coffers received nothing from my two week $20K fling! I’m thinking the Indians are finally getting their retribution for all the pain and suffering we white folk put them through!
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