Educators, Vets Should Focus on Impact Of Keating Tax Program During Lobby Day

When Oklahoma educators and veterans hold their annual lobby days at the State Capitol Wednesday, they should focus a good deal of their attention on the potential budget impact of Governor Keating's tax relief program, according to a Senate leader.

The Governor has proposed a series of tax reductions this year, including an income tax cut that when fully implemented would total approximately $1.1 billion - almost one-quarter of the state appropriated budget.

That revenue loss should be of great concern to educators and veterans, according to Senator Cal Hobson, chairman of the Senate Appropriations Subcommittee on Education.

"Unfortunately, tax cuts aren't free. Educators and veterans will have to pay for every dollar of Governor Keating's tax program in terms of lost funding. Every time revenue is reduced, so is the amount of money that is available for their programs. They should remind the Governor of that when they visit with him on Wednesday," said Senator Hobson.

Education is especially vulnerable to Governor Keating's tax cut program because it receives approximately 55 percent of state appropriated dollars. Although they receive some federal funding, state veterans programs also rely on state revenue.

"I would like to steadily increase the amount of state support for public schools and veterans programs in the years to come, but it's difficult to do that when someone keeps trying to make the budget pie smaller and smaller. Anyone who claims that we can cut $1.1 billion out of the budget without affecting veterans or education isn't being honest," said Senator Hobson.

The state legislator noted that major tax cuts could have an even greater impact on education and veterans programs if Oklahoma's economy feels the impact of a national economic downturn that is currently hindering other states around the country. State budget forecasters recently reduced the estimated growth of all major revenue sources except oil and gas, leading many to believe that Oklahoma will face tough times if and when surging energy prices decline.

"If we want to protect education and veterans programs, we need to be cautious. Decisions we make this year will have an effect for years to come," said Senator Hobson.