The Edmond Sun

February 4, 2010

For Oklahoma: Less can really mean more

PHIL G. BUSEY SR.
The Edmond Sun

EDMOND — While Oklahoma digs out from massive winter storms the governor and Legislature are faced with digging Oklahoma out of a severe fiscal crisis.

The governor in his state message vowed to protect education and Oklahoma’s most vulnerable. This is an immediate challenge, but solutions must go beyond protection to implementation of long-term reforms for Oklahoma’s future. Too often in crisis the focus is short-term and narrow, only relieving immediate pressure and invariably causing the baton to be passed to the next in line. There have been and will be sacrifices with unavoidable budget cuts. Social services are being drastically reduced and agencies are furloughing employees, meaning those least able to afford it will bear the brunt of past poor fiscal planning. The hardships are real and cuts may become so deep some agencies barely can perform core services.

With a $1.3 billion deficit, this is one of the most severe fiscal crises in Oklahoma history. Decisions to be made over the next months are among the most critical and far-reaching any governor or Legislature has had to make. The Rainy Day Fund will be tapped to offset losses, but the will not be enough. The governor finally called for lifting the fund’s cap to enable additional revenues to increase its amount. While this request is long overdue, it is a beginning to prepare the state fiscally to withstand future monetary challenges.

The responsibility on our leadership’s shoulders goes well beyond this year’s budget. Impacts of shortfalls will significantly impact Oklahomans throughout this decade. If there is any time for bipartisanship among Oklahoma’s elected political leaders it is now. The daunting challenges of the next year only can be successfully met with cooperation and agreement. There can be no chest-thumping or posturing. Oklahomans deserve the best of their leadership now. The test is upon them.

From these dark days of fiscal winter there are reasons to hope. Adversity can mold character. It can bring out our best, helping us see the need for radical change. The fact is, regardless of the blame game, we need each other now in crafting solutions and charting a new course for Oklahoma. It is clear that we have been dependent too long on one primary industry for tax revenues and trapped by decisions dependent on a consistent budget. Oklahoma is an energy state. We must support this vital industry but also develop other industries to diversify our revenue base. To do this requires significant reform in government, education and economic development.

The key to our future is building a platform for competitive economic growth, putting all the pieces together and capitalizing on our strengths. This means bold leadership. Begin with public education reform; shrink and consolidate government; trim waste; develop resources for small business, infrastructure for transportation and communication, continual job training and a first-class workforce — everything business relies on to survive and grow. Embrace serious reforms necessary to providing the best care for citizens and building Oklahoma into a first-class, efficient competitor for jobs and industry.

Importantly, consider controversial reforms in public education through gradual reductions in administrative and infrastructure duplications. There are 1,831 public schools in Oklahoma and 603 districts serving 626,000 students. The student average per school is 341 and 1,038 per district: More than in 43 other states. Oklahoma is burdened by dependency on this widespread network of smaller school districts. Each requires administrative overhead and capital expenditures.

Consolidation is not a popular solution. However, it may be the only feasible one meeting future budget constraints. Whether we want to face it, time has moved beyond this system. Invest in long-term planning, bringing as many resources to remote and rural students by consolidation but also distance learning, using the Internet and communication. Shift to technology outreach. Do more with less, integrating the best in technology increases funds for per-pupil spending, reaching classrooms with simultaneous instruction while reducing overhead costs and redundancy.

Depend on fewer classrooms — not more. Technology offers new options. We need more educational funding to improve an ailing system but money alone is not an answer. Reforms have to go hand in hand with every dollar used wisely. Radical change may not be popular but acceptance can come over time with phased implementation.

Strategic and systemic reform is not easy but is now necessary. This crisis has made it clear. We no longer can depend on an increasing revenue base to operate under. We are in a new era that requires radical governmental structural changes. Efficiencies demand innovation, consolidation and utilization of the best tools available. Like business, invest revenues in the best systems, discard the old and operate lean but effectively. Oklahomans need the best of government. Less can really mean more.



PHIL G. BUSEY SR., an Edmond resident, is chairman and CEO of The Busey Group of Companies.