Shortfalls continually plague Oklahoma’s budget. So why are we still insisting on income tax cuts?

If there’s one thing that has defined my nearly decade of political reporting experience in Oklahoma, it’s been budget turmoil and shortfalls.

In 2014, I hadn’t even had time to unpack before drama exploded over a $171 million budget hole and angst from state agencies told to cut their already shoestring budgets by 5%.

In 2015, the shortfall was $611 million. In 2016, $1.3 billion; in 2017, $878 million.

In 2018, every state agency braced for more cuts as lawmakers said there was no option but to slash budgets to keep state government open amid a $98 million shortfall. 

By April 2020, our shortfall was nearly $1.4 billion as oil prices collapsed.

But apparently we have very short memories in our Statehouse when it comes to our budget woes.

Based on the lackadaisical attitude that some lawmakers have toward tax cuts right now, you wouldn’t know that six of the past 10 budget cycles have been horribly painful and that our economic success is still intrinsically linked to the fortunes of our oil and gas industry.

Influential Republican leaders, including House Speaker Charles McCall and Gov. Kevin Stitt, argue that since our economy is so strong, we should cut taxes to put more money back into Oklahomans’ pockets. 

That’s despite the fact that earlier this year, we already eliminated the state’s grocery tax, a move expected to cost state coffers about $418 million a year in lost revenue.

Working in the Capitol, I can tell you how agonizingly painful each budget deficit has been. Fights go on behind-the-scenes just to fund the basic core services that Oklahomans expect.

Lawmakers greet budget shortfalls with something akin to a gnashing of teeth and excuses that this is the fault of our boom-and-bust economy that is overly reliant on the fickle oil and gas prices.

Skeptics of income tax cuts vividly recall the days where our cups were empty. They are understandably hesitant to close off future revenue streams.

McCall last week said the income tax cut is one of the issues still to be resolved as a budget deal nears, Barbara Hoberock reported. He cited the record surpluses, and said he doesn’t see it harming the economy at all because it’s just more money in people’s pockets to spend. He said it will come back to state coffers in sales tax dollars.

Yeah, our economy is doing well, and we have billions in savings right now. 

But everyone knows that that likely won’t last.

First, we haven’t had a ton of success in diversifying our economy. We’ve sure tried, but our overtures have been summarily rejected by juggernauts like Volkswagen, Tesla and Panasonic. A 53-year-old Michelin tire plant that employs 1,400 in Ardmore is also closing by 2025.

When our economy tanks again — and it will — we have to have some sort of revenue stream, beyond sales tax dollars, to pay for the programs that we all rely.

Companies don’t want to locate in a state with poor schools, pot-hole riddled roads, and terrible health care.

Also, any budget problems affect our credit rating, making it more expensive to borrow money to pay for necessary infrastructure projects.

And, don’t forget it takes a supermajority vote in both legislative chambers to raise taxes. It only takes a majority to cut them. Raising taxes is nearly impossible because no lawmaker wants to go home and tell their constituents that they did that.

In 2017, for instance, the idea of expanding our sales tax base, which would have ended tax exemptions on over 160 services like haircuts, pet grooming and doctor visits, went over like a lead balloon.

So unless we’re ready to have those difficult conversations about ensuring our state coffers have a similarly large replacement revenue stream, perhaps we’re not ready to cut any more taxes.

Sure, it would be nice to have a few extra dollars in our pockets. But overall, I’d rather have schools that are well funded, universities that have affordable tuition, state troopers who can help motorists, a robust National Guard who can respond to disasters and a thriving health care system.

All that takes money. 

And, since we’re not yet Top 10 in the areas that truly matter, we obviously can’t afford to be cavalier with our spending cuts.

The entire income tax debate right now reminds me of the Aesop fable “The Ants and the Grasshopper.” 

In the story, the ants were working hard to store up food for winter while the grasshopper played. The grasshopper thought the ants were silly, doggedly preparing for a day when it will be cold and dark. 

But of course, that day did come. The grasshopper was hungry and cold and learned the hard way that it’s best to prepare.

One could argue that the grasshopper is our lawmakers, ready to play and celebrate and score an easy, short-term political victory that will look good on campaign mailers.

That’s while the ants —  the everyday Oklahomans — are working hard during a time of plenty, quietly relying on lawmakers to store away our excesses to protect us from the cold, rainy day.

Because everyone knows, those rainy days will be here before we know it.

The question is, are we going to be ready like the ants?

Or, do we want to live in the moment like the grasshopper?