Coffee Talk

This past week, the Senate Appropriations Committee received briefings from several agency heads about how the recently approved federal stimulus package will impact Oklahoma. What we know at this point is that Oklahoma’s share will be $2.7 billion dollars, and it will be spread out over two budget years. The money will be funneled to approximately 20 state agencies as well as county governments and municipalities.

I am very concerned about the amount of debt being created, and the fact that many of the designated projects seem to have little or nothing to do with economic recovery. On the other hand, there are portions that make sense, including funding for roads and bridges, resources for indigent healthcare, and funds to support education.

With that said, we must proceed very cautiously. There are some things that could have a short-term positive effect, but long-term negative impact by costing our state more money. One concern I have is trying to determine what strings may be attached to these federal dollars. If they require us to expand programs, what happens when the stimulus package runs out, especially if the economy has not turned around? And we’re still analyzing the impact of tax cuts and credits that could adversely impact revenues in the future—that, coupled with forced expansions of programs would be disastrous, not only for Oklahoma, but for our entire country.

It is crucial that agencies and entities in Oklahoma receiving stimulus funds must allocate them very carefully, keeping in mind that there really is no guarantee these funds will be continued beyond this two-year package. I found it very troubling when one agency head announced plans to use the funds to expand programs which would result in recurring costs that could leave Oklahoma holding the bag for hundreds of millions of dollars in expenditures—money we simply may not have in two years.

Rest assured that if there are strings attached, we’re going to find out what they are before we accept those dollars. Furthermore, agency heads who think the legislature has no role in how the money is spent are misinformed. As lawmakers, we have a responsibility to ensure these funds are not obligated in ways that will actually make our budget worse down the road.