The Alliance for Oklahoma’s Future today lauded as a “major step forward in promoting fiscal responsibility and sound public policy” the passage of legislation that would, for the first time, provide for a long-term state budget forecast. The Alliance is a broad-based, non-partisan coalition of nearly 40 organizations representing Oklahomans from across the state. SB 368, which passed on the last day of the recently completed legislative session, includes language instructing the Office of State Finance to develop a multi-year trend analysis of the state’s budget outlook that would take into account the best available information on economic activity, population change and others factors affecting the state budget. The forecast would be developed and published annually by November 1st. “We especially applaud Senator Jim Wilson for promoting this measure and Senator Owen Laughlin for agreeing to include the budget forecasting language in SB 368”, said David Blatt, Chair of the Alliance for Oklahoma’s Future. SB 368 also sets up a process to have the Oklahoma Tax Commission conduct dynamic estimates of the revenue impact of tax cut bills. “For too long, legislators have made budget and tax decisions that have long-term impacts in the absence of even basic information on the budget outlook beyond the next twelve months”, said Blatt. “We can hope that having access to realistic projections about long-term trends will raise awareness about approaching budget challenges and encourage prudent policy decisions that help keep revenues and spending in alignment”. “Long-term budgeting forecasting is long-term fiscal stewardship of the highest order. Future generations of Oklahomans should benefit greatly from this legislation,” stated Kent Olson, Professor of Economics at Oklahoma State University. A recent study by Prof. Olson revealed that, as a result of demographic changes, mounting spending pressures, and an outdated tax system, Oklahoma faces an approaching long-term structural deficit in which projected state expenditures will exceed projected revenues by large and accelerating amounts. This situation will force hard choices between future tax increases, spending cuts and alternative ways to pay for and ration public services. SB 368 awaits the Governor’s signature to become law.

Labels: Budget, OK Legislature

Posted at 6/04/2007 01:25:00 PM