Light the cigars and chug the fracking fluid! We're having another revenue failure!
Yep, it is official! After weeks of anticipation, an Oklahoma revenue failure has finally been declared. Bring on the three day school weeks!
NewsOK's Dale Denwalt has the details:
For the third time in two years, Oklahoma's weakened economy has forced statewide agency budget cuts as officials scramble for ways to balance the budget.
The new spending cuts will total $34.6 million.
Estimates announced Tuesday projected that through June, tax revenue will only reach 94.3 percent of what was budgeted to fund state government operations.
Lawmakers already build a 5 percent cushion into each year's budget, so the revenue failure was triggered when anticipated collections fell below that benchmark.
State officials have to balance the budget, so Finance Secretary Preston Doerflinger will order a 0.7 percent, across-the-board spending reduction for appropriated state agencies. The $34.6 million cut will be in effect until the next budget year begins July 1, but Doerflinger warned there could be more cuts before then if revenue doesn't improve.
This is awesome! It's good to see our ruling class's plan to sabotage state government by forcing drastic financial cuts to core government services until the point they can no longer function or operate is going according to plan! I can't wait to see all the wealth they save trickle down to the rest of us. Maybe then the poor and middle class will have enough money to buy health insurance, see a doctor or send their kids to private schools that are open five days a week.
There are some other positives to this news. For example, at least state agencies won't have to be trained on how to budget cuts. They're already familiar with this drill. Also, I'm sure Preston "Speed Demon" Doerflinger will screw up again and cut too much money. Then agencies will have some extra cash to spend around Christmas.
Best of all, we now get to watch Mary play grown up and put her foot down.
Via NewsOK via the AP:
Gov. Mary Fallin says she would be willing to veto a general appropriations bill approved by the Republican-controlled Legislature if it doesn't include some investment in state services.
Fallin said Tuesday that she is not willing to cut close to $900 million from state services like public schools, child welfare, health care and state prisons.
Fallin made the comments after the State Board of Equalization determined the Legislature will have about $878 million less to spend this year, which is about 13 percent less than they appropriated last year.
Fallin has proposed several tax increases to help close the budget gap, including taxes on cigarettes, motor fuel, and broadening the sales tax to a variety of services. She also proposed eliminating the corporate income tax and the groceries tax.
Mary Fallin and I agree one thing – revenue does need to be raised. We just disagree on how to do it. I'm a bit cavalier when it comes to these things, but instead of implementing taxes on services that would disproportionately affect those of us who live paycheck to paycheck, maybe we should ask for a little help for the ruling class to get it done? Perhaps reverse our cuts to income and natural resource production taxes. Is that too much to ask? Our rulers have made a lot of money in this state. Maybe it's time to give a little bit back to the people!
Haha. Just kidding. Suckers! Let's eliminate corporate income taxes and leave in triggers for more tax cuts. We need our next revenue failure to top this one! It should be a fun ride!
