Published: November 23, 2009 09:33 am      

Feeling the Pinch

The need for immediate reductions in state spending is clear-cut, and Gov. Brad Henry needs to stop dragging his heels, a state lawmaker said today.

“Governor Henry keeps saying we need to ‘study’ the budget before cutting spending, but the need for immediate cuts is clear to everyone,” said state Rep. Mike Reynolds, R-Oklahoma City. “If you’re spending $475 million a month and bringing in just $400 million, you’ve got a problem. That’s basic grade-school math, and we don’t need to hold an endless series of meetings to show we grasp the obvious.”

But, even if Gov. Henry wanted to make immediate changes it would have an even greater negative impact, said Rep. Joe Dorman, D-Rush Springs. Dorman agrees that action needs to be taken, but he supports special legislative sessions to make specific cuts, not broad percentage cuts.

"We as a legislature need to prioritize what needs to be cut," he said. "A lot of these agencies operate on a shoe-string budget. They can't take a percentage cut like that, it could be devastating."

Reynolds said there is no need to waste additional taxpayer funds on a special legislative session, noting the governor has the power to order immediate, across-the-board reductions that address the shortfall.

“We cannot run a deficit in Oklahoma and the governor should act immediately to balance the budget,” Reynolds said. “Wishing you had more money won’t make it so and agencies can’t spend IOUs and empty promises, no matter how long the governor takes to ‘study’ the issue.”

This year, state revenue has come in 24 percent below projections and officials believe a $1 billion shortfall is possible by year-end.

In response, the executive branch has ordered 5-percent cuts in state spending and borrowed $155 million (so far) from state funds that have to be repaid by the end of next June – essentially “promising to repay a loan with cash we don’t have, unless the governor is thinking about transferring money from his favorite pet pork project, the EDGE fund,” Reynolds noted.

However, when it was suggested this week that a December special session should be called to immediately address the shortfall, Henry said through a spokesman that lawmakers need to instead “do their budget homework” and hold public hearings on budget cuts.

Dorman supported the governor and expressed confidence in his colleagues and their ability to responsibly cut the budget. He said acting too quickly and cutting a percentage of the entire budget would hamper many smaller agencies.

He said a good example of imposing cuts without study is last year's cuts to the Department of Human Services. With its smaller budget, seniors in rural areas have not been receiving the nutrition they need.

Sen. Ron Justice, R-Chickasha and others approached Henry about this issue this month.

Justice said the senate had a special caucus meeting on Thursday. He said the budget was discussed by the sub-committees in the Senate. He agreed with both Reynolds and Dorman. He said he wants this to be settled quickly.





but wants both parties to work together to responsibly make cutbacks.

"If we don't do something and just keep using rainy day funds, we could wind up digging a deep hole," he said. "We have to face the problems head on and put them behind us. We can't just ignore them...and we can do it by working together."

Reynolds said he is worried that if the cuts are not imposed now, it will cause greater issues in 2010, which could include massive layoffs of state employees.

Dorman does not think it will come to that. He said he is confident the legislature can develop a plan, and with the help of surplus stimulus funds can dig its way out of the deficit.