Can Oklahoma learn from Kansas

[Hoss]

And by that, I mean learn from its mistakes?  I found this from a democratic Oklahoma Congressman on his Facebook page, but this has all happened recently in Kansas.  Looks like a mess.

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The Handwriting's on the Wall

By State Rep. David Perryman (D-Chickasha)

Seeing the "handwriting on the wall" simply means understanding what is inevitable. The metaphor can be traced King Belshazzar in the fifth chapter of Daniel watching a disembodied hand write on the wall of his Babylonian palace. After the King's wisest men were unable to decipher the writing, Daniel, an Israelite, successfully interpreted its meaning.

Nowhere is the phrase more timely and appropriate than the predictable situation Oklahoma will face based upon what is now happening in Kansas.

Both Kansas and Oklahoma have relentlessly pursued cuts in the rates of state income tax under Republican legislative supermajorities

In 2012, Kansas' income tax rate was cut by 25% and many corporations and businesses were totally exempted from paying income tax. A year later, those who still paid income tax received additional incremental decreases of 20% over a number of years.

Not to be outdone, Oklahoma adopted rounds of cuts exceeding 30% of the state's income tax rate with an additional triggered cut of 0.15% set to begin the first of July this year.

Heads up: The chickens have come home to roost in the Jayhawk State.

The very ability of Kansas state government to operate became questionable. Kansas began a process known as "tax shifting," a process of cutting funding to towns, schools and counties requiring them to increase property and sales taxes on the local level. By 2014, more than three-fourths of all Kansas counties were forced to increase PROPERTY taxes by as much as 5.7%.

Last week, the "writing on the wall" in Topeka became obvious. Governor Brownback faced a budget shortfall of more than $800 million. When money was not available to adequately fund education, roads, bridges, corrections and other services, he made one-time transfers from revolving funds and swept money from the transportation fund to cover half the gap.

Then at 1:30 a.m. on June 12 came a shootout, not at the OK Corral but on the floor of the Kansas State House. Republican Governor Brownback threatened that if additional revenue was not found, massive budget cuts and layoffs would begin immediately. The Wichita Eagle reported that legislators wept. No incidents of teeth gnashing, but the environment was appropriate.

By 4:00 a.m., amid the smell of burning sulfur, the Kansas House voted to increase the state sales tax to 6.5 cents, take away half the mortgage interest and property tax deductions, eliminate other personal deductions, and increase the cigarette tax. The bill did not reimpose the income tax on businesses or corporations, did not cut off any of the millions of dollars in tax breaks or credits enjoyed by "small" businesses like Koch Industries, but it did give additional tax breaks for private school tuition. The Senate followed suit.

Plain and simple, Kansas' quest to cut income tax was realized by burdening working Kansans with increased sales taxes, taking away their personal tax deductions, and forcing counties, cities and schools to impose increases in property and sales taxes to simply survive.

Oklahoma faced a $611 million budget hole this year, and swept massive amounts of money from transportation and education budgets and raided revolving and "rainy day" funds. Next year when Oklahoma's projected deficit will be $1 billion, those one-time funds will not be available.

Kansans currently pay 253% more of their personal income on property taxes than do Oklahomans. Kansas' state sales tax rate is 62.5% higher than Oklahoma's. Those differences will increase because Kansas has cut funding to schools, counties and towns that will be forced to increase property and sales taxes themselves.

Will Oklahoma follow the same path Kansas has taken, or will we see the writing on the wall?

Daniel's literal interpretation of the writing on the wall, "Mene, Mene, Tekel, Upharshin," was "Numbered, Numbered, Weighed and Divided," meaning Babylon's destruction was imminent. Let us hope that Oklahoma fares better than Babylon.

[Ed W]

You're assuming that Oklahoma's legislators are capable of learning or that they'll fear the wrath of the voters when draconian budget cuts and higher taxes and fees are imposed.

[Townsend]

Obamacare will be blamed

[cannon_fodder]

CAN we learn? Sure.

WILL we learn? Nope.

Kansas and Wisconsin followed a hardcore conservative model trumpeted by Texas. Both have met object failure, financial ruin, and a lack of investment interest by desirable employers.  Intel, MS, Apple, major financial institutions, and corporate HQs look for stability and quality of life as much as cheap labor, cheap taxes, and cheap regulation.  If they wanted the Texas model, they'd just be in Texas which works do to a self sustaining loop... Same reason silicon valley works and lower Manhattan. Kansas can't be lower Manhattan, and it isn't Texas.

Look at the juxtaposition between hardcore conservative Wisconsin (financial and economic ruin) and moderate Minnesota (prospering).

But no... We won't learn. We will try to out fail them.

[Ed W]

...but, but, but with an illiterate populace, more poisoned air and water, decaying infrastructure, and low, low discount taxes...why...Oklahoma will be a new mecca for business investment.

[Townsend]

...but, but, but with an illiterate populace, more poisoned air and water, decaying infrastructure, and low, low discount taxes...why...Oklahoma will be a new mecca for business investment.

Can't be a mecca...Muslim-y

[Ed W]

"Shining city on the hill?"....or is that too much like Hillary?

[rebound]

"Shining city on the hill?"....or is that too much like Hillary?

Reagan, originally, right?

[Ed W]

Yes, but I think his speech writer borrowed it from someone earlier.

[TheArtist]

Yes, but I think his speech writer borrowed it from someone earlier.

I think it was some early, sandal wearing, love one another, bearded hippy dude.  

[Ed W]

Okay. How about "Oklahoma: Where the mostly unpolluted wind comes whipping down the fracking plains"?  No, that won't work either.  "Oklahoma from sea to shining sea." Climate change is causing rising sea levels, so....

[Townsend]

Oklahoma Treasurer Says Declining Energy Prices Hurt Revenue

http://publicradiotulsa.org/post/oklahoma-treasurer-says-declining-energy-prices-hurt-revenue

OKLAHOMA CITY (AP) — Oklahoma Treasurer Ken Miller says declining oil and natural gas prices helped push state revenue lower last month.

Miller says revenue in July fell 5 percent below collections during the same month last year. It's the third consecutive month and the fourth time in five months that state revenue has been lower than the prior year.

Miller says lower income tax collections also helped push revenue down in July. Combined personal and corporate income taxes shrank by 5.4 percent, while gross production taxes on oil and natural gas fell almost 47 percent.

In the past 12-months, gross production tax collections are down almost 24 percent and motor vehicle collections are off by more than 3 percent.

July receipts totaled $942 million, down about $50 million from July 2014.

[Conan71]

Oklahoma Treasurer Says Declining Energy Prices Hurt Revenue

http://publicradiotulsa.org/post/oklahoma-treasurer-says-declining-energy-prices-hurt-revenue

That's not the only place low oil prices is hitting hard.  Chesapeake reported a $4+ billion loss last quarter and Devon lost over $2 billion.  According to a former employee who was laid off last month, Cimmarex has been quietly letting a few people go at a time so as not to signal a mass layoff.

But, back on topic.  Looks like Mary Failin' needs to issue another tax cut.

[Townsend]

But, back on topic.  Looks like Mary Failin' needs to issue another tax cut.

That'll save the day

[heironymouspasparagus]

...but, but, but with an illiterate populace, more poisoned air and water, decaying infrastructure, and low, low discount taxes...why...Oklahoma will be a new mecca for business investment.

That's what the RWRE wants...a theocracy, modeled along the lines of what Iran has enjoyed for decades.  About 60% of Republicans want that right now.

And our state clown show is drawing the most psychotic of the psycho's giving us a serious bias as these new people who want that kind of life move in.  Oklahoma is becoming a cult state.  Branch Oklahomavidians have taken over.... Mary Koresh-Failin' ain't quite David, but the next one is coming soon to a Kool-Aid parlor near you!!  (Yeah, I know...mixing metaphors.)