Oklahoma

State

Senate

Quarterly
Monitor

Oklahoma Senate Staff

December 1998

Federal Highway Administration Study Highlights Car and Truck Road Costs

National estimation of road cost paid by trucks may underestimate the cost responsibility for trucks in Oklahoma and surrounding states. Data from the Office of Highway Information Management indicates that trucks travel a higher percent of the total vehicle miles traveled on Oklahoma roads than the national average. Average rural truck traffic in the U.S. equals 11.6 % of vehicle miles traveled (VMT). In the Oklahoma region, trucks comprise 14.6% of all rural VMT -- 26% higher than the national average

In 2000, combination trucks will comprise 4.3% of VMT. Combination trucks (tractor-trailer combinations) by virtue of their weight will be responsible for 35% of new pavement costs, but will pay for only 26 per cent.

All trucks, including single units, such as dump trucks and delivery trucks, and single- and double-trailer combination units, will comprise 7.4% of VMT. New pavement cost responsibility will equal 47%, but payments only 36 per cent.

By comparison cars and pickups comprise 92.3% of VMT, responsibility for 52% of costs, and pay for 64 per cent.

See Roads, page 2

Percent of Cost Paid versus Percent of Cost Responsibility
 

State Demographic* Shifts Foretell A Number of Economic Issues

Potential labor shortages, more need for health care, nursing home spending, urban highway and education spending and a moderating crime rate will be some of the major implications of the population shifts already under way in our state. Oklahoma's population will age faster than the nation in the upcoming decades and become more urbanized than today. A smaller portion of the population will be working age causing both labor pressures and potentially reducing the crime rate.

* Demography: the statistical study of human population, especially with reference to size and density and vital statistics.

See Demographics, page 2

FY2000 Revenue Outlook Not So Rosy A combination of a slowing world economy, lower oil prices and last year's tax cuts means that less revenue will be available to be appropriated by the 1999 legislature. A FY2000 revenue forecast certified by the State Board of Equalization included $160.5 million increase in general revenue fund collections. However, a change in the funding method for the Teachers Retirement System will decrease the amount of general revenue funds available for other appropriations. Combined with a decline in available cash and financial commitments made last year, budget officials warn that lawmakers will have $14.2 million less to appropriate for operations in FY'00 than was appropriated last year. Numerous changes to tax law by the 1998 legislature contributed to reduced available revenues. Additional sales tax food relief ($20.7 million) and reduction of the method I income tax rate ($46.2 million), contained in last year's HB 3152, as well as $55 million in quality jobs payments and other tax changes and business incentives, will reduce available revenues by $127 million in FY'00. For additional revenue analysis for FY'99, see the Revenue Roundup on page 3.