Sen. Corn Urges Hearing on Budget Stabilization
Legislation
State Sen. Kenneth
Corn said dramatically declining budget projections are proof that
the legislature needs to consider his budget stabilization legislation
in the 2008 session.
“This time last year we were looking at $277 million in projected
revenue growth. Now we’re looking at a projected growth of $32
million, and that number could well decrease by the time the final budget
certification is announced next month,” said Corn, D-Poteau. “It’s
a recipe for disaster to base reoccurring expenditures on something
that fluctuates as much as energy prices. That’s what we did during
the oil boom, and we know how that ended. We can’t afford to repeat
the mistakes of the 1980’s.”
Senate Joint Resolution 5 calls for a Constitutional Amendment to be
considered by state voters which would require certification of the
10-year average of gross production tax revenue and would limit appropriations
of revenues over that amount to one-time expenditures. The legislation
was filed in 2007, but was not heard by the Legislature.
“Energy prices are up now, but we’ve seen them rise and
fall in a matter of days. In the fall of 2006, we were looking at record
prices, but by this time a year ago, we were paying about a dollar less
per gallon,” Corn said. “It simply makes fiscal sense to
avoid basing ongoing expenditures on a source that varies so wildly.”
Corn said by limiting appropriation of gross production revenues above
the 10-year average to one-time expenditures, it would provide greater
stability in the state budget and greater security for Oklahoma citizens.
He explained the excess gross production revenue could be spent on vital
capital needs, including repairing dangerous roads and bridges.
“Remember how much energy prices fell in the wake of the September
11th terrorist attacks and subsequent recession? By 2003, we were looking
at a $427 million shortfall. It was a very difficult time, and crucial
services ranging from education to senior centers saw reductions in
funding,” Corn said. “Now economists are warning about another
recession. SJR 5 would offer us much greater fiscal stability and security.
I hope my fellow members will give it their consideration before it’s
too late.”
For more information contact:
Senator Corn's Office - (405) 521-5576