Summer 2010

The Cato Institute, a non-profit Senate President Pro Tempore public policy research foundation headGlenn Coffee said SQ 744 is “one of the quartered in Washington, D.C., stated most dangerous things ever to go on bluntly: “Citizens drastically underthe Oklahoma ballot. It would require estimate current per student spending significant cuts in the rest of state and are misled by official figures.” government with no easy ability to While some might argue that SQ 744 recover those revenues.” is a Democrat versus Republican issue, House Speaker Chris Benge said statements from leaders in both parties SQ 744 “would be devastating to the strongly dispel the partisanship state budget. $850 million is either argument. going to be done by tax increases or Gov. Brad Henry, a Shawnee cuts to areas like health care.

Democrat, who has spent much of his “And,” Benge added, “it should be two terms fighting for better teacher pay noted, that just because you’re against and benefits and championing higher 744 doesn’t mean you’re against academic standards, publicly announced education.” his opposition in a Jan. 27 editorial in the Assistant Floor Leader Sen. Brian Daily Oklahoman.

Bingman said SQ 744 “will put our “I suspect right now that the state’s sovereignty into question and initiative will not pass. If it looks like it place unnecessary burdens on our state has momentum and may pass, I may budget. Tax increases and further speak out more publicly than I already budget reductions among critical state have,” said the governor. agencies will be likely in order to fund Speaking for the governor, Press this initiative that allows other states to Secretary Paul Sund told Oklahoma dictate Oklahoma’s budgeting Country that Henry believes “it is poor practices.

Gov. Brad Henry has spent much of his two terms fighting for better teacher pay and benefits. However, the Democratic policy to mandate spending percentage “SQ 744 in not a wise road for us to take governor is opposed to State Question 744. The governor feels it levels in the constitution” and that SQ 744 in light of the challenging economy we is poor policy to mandate spending levels in the Oklahoma would “tie the hands of lawmakers. It is a currently face,” he added.

Constitution, which SQ 744 would require. bad policy to write it into the constitution.”

The Oklahoma House of Representatives Opposite, bottom: Oklahoma Farm Bureau developed this post Lt. Gov. Jari Askins, a Democrat seeking conducted an interim study in an attempt to card size handout that staff has been distributing. The handout the governor’s office, has called SQ 744 “well determine the ramifications of SQ 744 on outlines what the farm organization believes would occur if intentioned,” but a measure that would hurt the state budget and agencies. That study voters approve SQ 744 on Nov. 2. The question is one of nine on the general election ballot. other areas of education like early childhood found that budgets would be slashed and and career tech. She also said it would erode taxes rates would have to increase, or dollars for higher education and put more perhaps both. pressure on students with tuition and fee increases.

“It is appropriate for Oklahomans to know the full story before they go Attorney General Drew Edmondson, another Democratic gubernatorial the ballot box,” said Rep. Osborn. candidate, also opposes SQ 744. He questioned whether the measure In order to fulfill the minimum $850 million common education would be enforceable, and said money to fund it would come from the increase, lawmakers will have to look at income or sales tax increases as budgets of other agencies. high as 40 percent or possibly 20 percent across-the-board budget U.S. Rep. Mary Fallin, a Republican candidate for governor, has reductions in other agencies. announced her opposition to the question.

According to the House Fiscal Staff, state income taxes would have to “As an Oklahoman, a mother and an elected official, I want to make be increased 34 percent overall from 5.5 percent to 7.35 percent to raise our schools better and I want every child in this state to get a good the $850 million. That would make Oklahoma’s income tax the highest in education. Unfortunately, SQ 744 doesn’t do that. this region and the 15th highest in the nation.

“What it does do is place an enormous unfunded mandate on the state A 38 percent increase in sales taxes from the current 4.5 percent rate at the worst possible time: right in the middle of a recession and a serious to about 6.2 percent also would generate the revenue. If that occurs, budget crisis,” Fallin continued. “If it passes, public safety, transportation Oklahoma’s sales tax would be the second highest in the region just behind and virtually every state agency will be forced to take massive budget cuts the 6.25 percent rate in Texas. to pick up the tab. That’s not good for Oklahoma, not good for our children, If taxes aren’t raised, which some consider unlikely due to passage of and in the long run, not good for public education.”

SQ 640 in 1992 to prevent the legislature from raising taxes without Sen. Randy Brogden, another Republican gubernatorial candidate, said approval from the voters or 3/4 of each house of the legislature, lawmakers SQ 744 would “have a terrible impact on the budget” and take control of would be forced to make budget reductions. the budget away from the legislature.

“Any tax increase would have to be voted on by the people,” said Rep. Sen. Andrew Rice, Democrat leader-elect for the 2011-12 session, said Osborn, “and it wouldn’t pass so that really leaves us only with cutting he believes opposition to SQ 744 comes from both sides of the aisle. budgets of state agencies.”

“It ties the legislature’s hands,” he added. “Fifty percent of the budget The study found that across-the-board cuts as high as 20 percent goes for education, so we have a pretty big commitment already.” would be necessary. Briefly, such budget cuts would: 14 • Oklahoma Country • Summer 2010