Sen. Crutchfield to Fight Cuts in Rural Development Program

State Senator Johnnie Crutchfield is vowing to fight Governor Keatings efforts to slash funding for a proven economic development program that benefits rural communities in southern Oklahoma and the rest of the state.

The Rural Economic Action Plan or REAP distributes grant money to small towns, helping them repair and improve their infrastructures to make them more attractive to economic prospects.

The grant program was targeted for major budget reductions in the executive budget released by the governor earlier this week. Under the Keating budget, REAP grant funds would be cut from $19.5 million to $7.2 million a 63 percent reduction.

Every time you cut funding for REAP, you cut jobs in rural communities like Sulphur, Davis, Healdton, Lone Grove and Marietta. If you gut the program completely, as Governor Keatings budget proposes, you might as well turn out the lights in dozens of small towns across the state. Those communities wont be able to survive, much less prosper, without a pool of capital to help them repair and improve their infrastructures, said the Ardmore legislator.

The 63 percent cut was the largest reduction doled out by Governor Keating in his proposed budget for the coming fiscal year. Most other agencies and programs were hit with 6 percent cuts to help compensate for a state revenue shortfall.

Senator Crutchfield said he understands that programs have to be cut in tough economic times, but he doesnt understand why REAP was singled out for such a major reduction. The legislator noted that if REAP was treated like other state programs and given a 6 percent cut, its budget would decline from $19.5 million to $18.3 million.

REAP has worked wonders in dozens of communities around the state, especially in southern Oklahoma. It doesnt make sense to single out a proven job creator and whack it with the biggest cut in state government. For rural communities that are already reeling from the latest economic slump, this is going to be a devastating blow. Now is not the time to be cutting economic development funds for rural Oklahoma, said Senator Crutchfield.

The lawmaker said he was surprised by the proposed budget cut, noting that Governor Keating has championed rural economic development in the past, even signing the REAP program into law in 1996. The House Republican caucus also listed the rural development and REAP among its top priorities this year.

The executive budget book issued by the Office of State Finance did not explain the governors reasoning behind the hefty reduction. In fact, it referred to REAP as a critical source of economic development capital for rural Oklahoma, adding that these communities do not have the revenue base to preserve their facilities, let alone build new projects which would increase economic growth.*

Senator Crutchfield said he agrees with OSFs assessment, just not the budget recommendation that follows it. He said he is looking forward to discussing the issue with Governor Keating.

First, they say its a great program then they cut it to the bone without even a hint of an explanation. I dont think Governor Keating would intentionally do anything to hurt rural Oklahoma, but his proposed budget certainly wont help it. Im hopeful that I can persuade him to change his mind and give REAP a fair shake, he said.

Since it was created six years ago, the REAP program has distributed $114 million in grants to hundreds of economically-distressed, rural communities across the state. The money can be used for a variety of infrastructure needs, including road construction, water treatment facilities and sewer and water systems.

REAP funds are distributed by the Oklahoma Water Resources Board and the 10 Sub-state Planning Districts. Grants are restricted to towns with a population of less than 7,000. Special priority is given to communities with less than 1,500 residents.

* Page 171, FY-2003 Executive Budget Book, Gov. Frank Keating