Financial restraint creates opportunity ~ MuskogeePolitico.com

Prior to 2019, Oklahoma authorities monetary planning was largely haphazard and infrequently pushed by short-term considering. As a consequence, spending outpaced income and, as soon as an oil bust hit, there wasn’t sufficient cash in reserve to make up the distinction. Oklahomans endured a number of years of monetary chaos and dramatic tax will increase.

Because Senate Pro Tem Greg Treat, House Speaker Charles McCall, the governor and different state officers have since led authorities to stay inside its means, state financial savings have now reached $4 billion, a sum deemed ample to climate a major recession with out tax will increase or random spending cuts in accordance with an unbiased assessment.

And development income is ample to extend spending on key areas whereas slicing taxes by tons of of hundreds of thousands.

Stitt has proposed slicing the state’s private revenue tax from 4.75 p.c to three.99 p.c. There’s potential for lawmakers to drive the speed even decrease, placing the state on the trail to full elimination of the non-public revenue tax. To the extent lawmakers really feel elimination of the non-public revenue tax would must be changed, Florida and Tennessee exhibit the gross sales tax is the least damaging tax.

It’s essential Oklahoma scale back the non-public revenue tax, which is a state penalty on work and funding. We’re in a 50-state competitors and 9 states don’t have any revenue tax, whereas many others are quickly slicing their charges to decrease ranges than Oklahoma.

Likewise, the state should enhance its tutorial outcomes. Stitt’s name for common Education Savings Accounts will transfer the needle by empowering dad and mom and creating new college alternatives for youngsters, together with personal college for lower-income households.

“Providing more options for students leads to better outcomes,” Stitt mentioned. “Oklahoma cannot afford to be left behind. Because our greatest asset isn’t our oil and gas. It’s not our football teams. It’s not our aerospace and defense. It’s our kids.”

He’s proper. For years, Oklahoma’s schooling system has ranked within the backside tier of states with regards to tutorial outcomes. We can dramatically alter that trajectory and create a greater future for all college students with college alternative.

The state’s monetary place in the present day permits for efficient coverage change. Oklahoma policymakers can now swing for the fences with out worry.

This opportunity is just not the results of happenstance or dumb luck. It’s the product of long-term considering and accountable finances planning that required state authorities to stay inside its means. Now, as Stitt famous in his speech, “The future belongs to Oklahoma.”