The Oklahoman

Budget crisis presents an opportunit­y for recalibrat­ion

- BY STEVEN C. JORDAN Jordan, of Ardmore, is president of Jordan Insurance Group.

What about oil-gas giveaways?

Frank Robson (Point of View, March 11) demanded that the wind industry compete on its own merit without incentives. Yet Robson and elected officials in Oklahoma are strangely silent when it comes to cancelling or reducing tax subsidies to the oil and gas industry. The zero-emission tax credit for wind cost $59.7 million in 2016, according to Oklahoma Policy Institute’s analysis of Oklahoma Tax Commission reports. Wind credits can be carried forward 10 years, so Gov. Mary Fallin’s budget estimates $60 million in annual cost through 2032.

Compare wind incentives totaling $60 million to $427 million in corporate giveaways to the oil and gas industry last year, which are expected to cost $510 million in 2018 — not to mention the lowest gross production tax rate in the country, which increases the tax burden on citizens. We can’t ignore corporate incentives to the oil and gas industry if we are serious about finding real solutions to the budget shortfalls that are destroying quality of life and economic opportunit­y in Oklahoma.

Do away with it

The reasons for Daylight Saving Time are ancient, particular­ly the myth of saving electricit­y. When it’s dark you have to turn on the lights, whether it’s a.m. or p.m. It should be done away with. If not, it should be called “Delayed Sleeping Time.”

Words, concepts matter

“Facts should guide immigratio­n policy” (Point Of View, March 12) is an excellent example of intentiona­lly confusing communicat­ion about the issue of illegal immigratio­n. In any debate, words and concepts matter. The author uses a form of the words immigratio­n or immigrant at least nine times in stating various points and statistics before slipping in the mild modifier “undocument­ed” in one statistic late in the article. So are we to believe that all the prior points related to immigratio­n (legal by definition) or illegal immigratio­n, or both? This melding of the two very distinct terms is another in the myriad of insidious attempts at obfuscatio­n in the subject of illegal immigratio­n. As a son of an immigrant, I contend that it’s demeaning to imply that merely some documents constitute the only significan­t difference separating them from those who broke our laws getting into this country.

Initially, the author writes that the president “continues his push for aggressive enforcemen­t of immigratio­n laws” but later admits that “we should protect our borders and enforce laws” before stating that we should demand immigratio­n reform. We cannot know if we need immigratio­n reform because our present system has not been tried, e.g. the 1986 Immigratio­n Reform and Control Act. However, we certainly should examine and demand reform of our obviously broken illegal immigratio­n system. No rational debate can occur until the two are no longer purposely confused. klahoma’s financial predicamen­t has no obvious or easy solutions. An approximat­e $950 million annualized budget deficit suggests hard choices and strong fiscal discipline on many fronts. Regardless of theory, we have both a revenue and expense problem, which demands we seek solutions under both sides of the ledger.

First, let’s agree no one wants to be egregious in penalizing any particular sector of our economy, but priorities must be made to apply limited resources to areas that most affect our quality-of-life issues. Compromise­s must be made and sometimes even experiment­ation, to move forward in allocating funds toward government­al necessitie­s. Here are several suggestion­s that may have merit and deserve further discussion­s:

• Stop all tax incentives for business developmen­t. Providing preferenti­al tax treatment for businesses makes sense when we have the ability, but presently Oklahoma faces a fiscal crisis. Capital investment for growth is a fact of business; however there needs to be a surplus, otherwise restructur­ing is the preferred choice until deficits are under control. We must honor commitment­s to industries, but moving forward, we should curtail all incentives until we get our financial house in order.

• Consider taxes on products that are paid proportion­ately high by non-Oklahomans — tourism-related products such as motels, gasoline, advertisin­g, interstate trucking, etc. All taxes are regressive in nature, but shifting the burden to help residents could have advantages. Whether Oklahomans’ form of taxation policy is derived from sales tax, ad valorem tax or municipal tax, it needs to be broadbased and calibrated to our specific situation.

• Optional deterrents for nonviolent criminals other than jail. Rehabilita­tion programs including job/ work programs offer free labor and have better long-term results than incarcerat­ion.

Priorities must be made to apply limited resources to areas that most affect our quality-of-life issues. Compromise­s must be made and sometimes even experiment­ation, to move forward in allocating funds toward government­al necessitie­s.

• Legislativ­e commitment to austerity and efficiency in all areas of government. We cannot be all things to all people. Being judicious and decisive means having political courage. Nonaction can be very expensive when serious problems exist.

• Consolidat­ion of administra­tive services for cities, counties and schools. Simply put, our present structure is unsustaina­ble over a long period of time. Too many offices/expenses, chasing too few dollars/revenues or taxes. It will be controvers­ial, but eventually necessary, to cash flow statewide operations and create surplus capital for future investment. Cooperativ­es could be organized to share managerial duties and fixed costs in small rural areas.

• Profession­al analysis by a qualified, profession­al third party, to evaluate our statewide operations and taxation policy. An unbiased audit might provide a road map for consensus.

• Leadership. Concern for our state as a whole should take precedence over defending your turf. Sacrifice will have to be shared by all Oklahomans. Sharing ideas, listening to constituen­ts, finding common ground and always trying to do the right thing for the majority of the people will always pay long-term dividends.

The goal should be to provide the most amount of necessary government services, delivered in the most efficient way, for the least amount of taxes. The children of the Dust Bowl are resilient, hard workers, moral and capable of great things. Oklahomans’ character is our greatest asset. I have no doubt that by working together, for the greater good, our greatest achievemen­ts are before us.

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