Budget & Taxes

One of the primary jobs of the Oklahoma Legislature is to lay the groundwork for a strong and growing economy. Republican and Democrat lawmakers alike agree on this rather obvious principle. Some lawmakers believe the solution is rather simple – cut taxes and cut taxes again and the miracle of the free market will supply the promised benefits. On the other hand, there is a large body of economic research that suggests free markets will not thrive without a strong public infrastructure, without a skilled, educated and healthy workforce and a robust transportation system geared for commerce. The trouble is that private sector will not pay for these vital needs.

Yet there is a strong connection between economic growth and a state’s infrastructure. OU Economist Robert Dauffenbach recently concluded in an Oklahoma Chamber of Commerce Report that the state’s improvement in per capita income is primarily due to our success in increasing the number of Oklahomans with college degrees. His findings are consistent with other research, which finds that one of the best ways to increase a state’s economic growth is to increase the quantity and quality of public education -- including common education, higher education, and vocational training.

Other economists have recommended individual states bolster their health system to help control rising health insurance costs and promote a healthier workforce, both of which translate to lower business and labor costs. And there is good research that says investments in public infrastructure, such as roads and bridges, lowers private sector production costs, further stimulating the state's economy.

The challenge for Oklahoma is that in all of these categories – education, health, transportation – we are behind the nation and behind our neighboring states in our level of support for these vital infrastructure needs.

In terms of state spending in relation to the gross state product, Oklahoma state government is one of the smallest in the country. State spending in relation to personal income is lower than it has been in the last 25 years. Tax relief proponents will always have a strong constituency, but we must also watch over our state’s long- term fiscal health. The best way to do that is to provide solid ground for Oklahomans and Oklahoma businesses to prosper.