Oklahoma City, OK 73105
For Immediate Release: November 24, 2008
Sen. Kenneth Corn
Corn Files Legislation to Stabilize State Budget
In response to declining budget projections and a national economic
crisis that may eventually be the worst seen by the country in many
decades, Sen. Kenneth
Corn has filed legislation that would bring long-term stability
to the state budget and security to Oklahoma citizens.
Senate Joint Resolution 2 calls for a Constitutional Amendment
to be considered by 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.
Corn filed the legislation in the 2007 and 2008 legislative sessions,
but it has not been heard by the Legislature. The Poteau Democrat
said the proposal would help ensure the state doesn’t repeat
mistakes made in the 1980’s oil bust.
“It isn’t wise to base recurring expenditures on an
increasingly volatile commodity,” said Corn, D-Poteau. “We’ve
seen energy prices fluctuate wildly over the course of the past
several years, and in turn we’ve seen fluctuating projections
for revenue growth. By installing a mechanism to limit appropriation
of gross production revenues above the 10-year average to one-time
expenditures, we can provide greater stability and security in the
Corn explained that any excess growth production revenue could
be spent on vital capital needs, including road and bridge repairs.
With a recession looming, Corn said, it’s time for the Legislature
to take action and help prevent future budget shortfalls.
“The home-lending crisis has been snowballing for months,
and we’ve seen a domino effect that has devastated economies
throughout the nation,” Corn said. “Though we’ve
been fortunate to experience some economic stability in Oklahoma,
it would be foolish to think we’re immune to a nationwide
recession. With economists sending harsh warnings regarding the
severity of a pending recession, it’s now more important than
ever that this proposal be considered.”
“If not, we may be forced to look at this as another missed
opportunity to exercise restraint and responsible financial stewardship.”
For more information
Senator Corn's Office: (405) 521-5576