They Call This a Budget?

Oklahoma Representative Phil Richardson tweeted a PDF of a summary of the budget agreement that has been reached and is coming to the floor for approval.  After looking over the three page summary, it appears that their attempt to fix Oklahoma's financial woes is a big joke.

The first thing that bothers me is the overall lack of budget cuts.  Lawmakers had been hinting to agency heads that 10% cuts would be coming in this budget.  However, the average cut was 4%.  According to Oklahomans for Responsible Government, raising that cut one percentage point to 5% would have saved another $90 million.  Compared to the $1.2 billion deficit that is being faced, it doesn't look like much, but every little bit helps.

A cut that I think will bother a majority of Oklahomans is the $78 million (over 40%) cut to ODOT.  While most agencies are getting cuts of less than 4% (and some getting increases as high as 42%), the cash-strapped agency that is responsible for our roadways is losing nearly half of it's funding.

Overall, the cuts total out at just over $256 million. That's only about 20% of what is needed.

When it comes to how they plan to make up the difference through increased funding, there are two items that stand out.  The first is the $500 million in federal stimulus funds.  My problem with including those funds in the budget is that they will not be available the following year.  This means that we will have to come up with $500 million elsewhere next year.

But what irks me the most is the inclusion of $363 million from the Rainy Day Fund.  The Rainy Day Fund is not meant to be used as a line-item in the budget, but rather as a bandage in case we have an emergency such as a sudden decrease in tax revenues.  This only leaves $100 million in the account.  That means our tax revenues must be within $100 million of what is expected this year, and that leaves nearly zero room if they want to pull something like this again next year.

I believe our lawmakers need to go back to the drawing board with this budget.  Not only are they setting us up for a world of hurt as is, it will be even worse if State Question 744 passes the public vote in November.