EDMOND —
All too often, government’s approach to spending is borrow now, pay later. We see that approach on sad display in Congress, where the federal government has spent our country into trillions of dollars in debt, risking the prosperity of future generations.
Although Oklahoma has weathered through the recent economic crisis quite well, we have debt problems of our own. Today, outstanding tax supported bond debt is just under $2 billion. Additionally, the state has roughly $6 billion in revenue bond debt. Neither includes the nearly $12 billion in unfunded pension liabilities.
That $2 billion debt represents a multitude of projects, many of which have come and gone. But the bill for those projects is still owed, with interest.
And the bill isn’t exactly small.
In fiscal year 2013, for instance, Oklahoma’s total debt service on tax supported bonds was $233 million, including almost $85 million in interest payments alone.
There is a simple principle to borrowing money: When you spend money you don’t have, you pay for it later.
Today’s debate on bonds is a perfect example. There are some legitimate projects and needs that require our attention, such as the crumbling State Capitol building and various other state infrastructure issues.
We’ve heard the arguments. Money is “cheap,” they say, meaning that interest rates are low. There are claims that it would be “affordable” to just borrow the cash and foot the interest payments for the next 20 years.
The problem is, “cheap” money isn’t exactly cheap. Even at today’s low rates, borrowing $200 million would cost the state the extra $80 million in interest over the next two decades.
Only in government does it make sense to pay $280 million for something that costs $200 million. There is another way, and like the Oklahoma Department of Transportation’s eight-year plan, we can get ourselves out of the hole.
Instead of borrowing now and paying later, I have been working with State Treasurer Ken Miller and the Secretary of Finance and Revenue Preston Doerflinger to create a new plan to change the way state government approaches these issues.
The basis of my plan is simple: We should pay for critical infrastructure needs as we go, instead of waiting until our state assets are literally crumbling around us.
My plan calls for an immediate cash investment from the state to address our most pressing infrastructure needs, with a continued investment over the next decade that will fund other necessary repairs as well as ongoing maintenance.
By making this commitment now, we will have a responsible approach that will address our infrastructure needs without adding to our debt and paying $80 million in interest.
In addition to my pay-as-you go plan, this session I have proposed a cap on bonds. When you get a credit card there is a limit. We need a credit limit to avoid spending away the tax money of hardworking future generations.
Too often leaders look to how things always have been for their inspiration. Keeping things the same and increasing debt has led us down the wrong path. My definition of leadership is leaders should see things as they can be, not as they are.
While it may be true that Oklahoma is different from Washington, D.C., the amount each taxpayer owes individually as a result of the federal government is roughly $146,000. Now is not the time to add to that number.
HOUSE SPEAKER T.W. Shannon, R-Lawton, represents House District 62.
Opinion
Bringing common sense to state spending
- Opinion
-
-
Witnesses missing; Behenna case could be heard at Supreme Court
The film “Breaker Morant” was nominated for an Oscar for the best screenplay in 1980. It told the story of Harry “Breaker” Morant, an Australian who served in the British Army and was court-martialed for alleged war crimes during the Boer War in Southern Africa in the early years of the last century.
That conflict pitted the British Army against the descendants of the Dutch settlers who had migrated to what is now South Africa in the 17th and 18th centuries. The majority of them were farmers and in their language of Afrikaans were known as “Boers.” -
Don’t leave Oklahoma!
May is graduation season. As I have done every year as lieutenant governor, I have given multiple commencement speeches. Advice flows freely during this time and it usually runs the gamut. What to do, what not to do, how to do ‘x’, be sure not to do ‘y.’ Too often commencement speakers speak in big generalities. So general, the message is frequently lost or forgotten.
-
Last-minute funding proposals not in state’s best interest
All indications point to this being the last week of this year’s legislative session. The Legislature will go home a week early. This is good news for Oklahomans as not only will there be cost savings but all Oklahomans should breathe a sigh of relief when the Legislature stops making new laws a week ahead of schedule.
As usual, the Legislature will take a number of important votes during the last week. Some will be forced due to attempts to introduce and pass far-reaching, new policies that should have been introduced much earlier in the year. -
BY THE NUMBERS: Oklahoma still needs to invest in its economy
After six months of stagnation, the Oklahoma economy finally appears to be expanding again albeit still weakly. Unfortunately, our leaders aren’t making the investments we need to give our economic prospects a boost.
Last week the Oklahoma Office of Management and Enterprise Services reported that in April state General Revenue fund collections were 5.2 percent above the estimate and 14.7 percent higher than last year’s collections. Under normal circumstances, such a report would indicate that the Oklahoma economy was very strong. But this isn’t a normal circumstance, and April isn’t a normal month. -
Americans deserve the truth on Benghazi
Lately, the media has been consumed by the controversies surrounding the White House. Among these controversies is the horrific terrorist attack on the United States’ diplomatic compound in Benghazi that took place Sept. 11, 2012. As more people come forward with additional information regarding the attack on the consulate, many Americans, including myself, are still asking for the truth.
The Obama Administration and the State Department have been less than forthcoming with key information on Benghazi and recent information points toward a major cover-up. -
Seizure of AP phone records insult to independent press
Distrust of government secrecy has been elevated to an exceptional level with the disclosure the Justice Department covertly examined two months of Associated Press phone records to determine who leaked details to the AP about a foiled terrorist plot.
-
HEY HINK: Some people just are not cut out for command
Recent headlines cause me to remember an incident that occurred on an army base some years ago. Warning here: I’m taking some liberties with names and details, but the basic outline of events is accurate.
A certain company commander, let’s call him Captain Duntz, had command of a motor pool on a large army base in the continental U.S. -
We’ve become our own worst enemies
The past couple months have been marked by a seeming unprecedented number of man-made tragedies, as distinct from those caused by violent outbursts of the natural world, such as earthquakes, hurricanes and tsunamis.
You don’t want to dwell too long on the negative, but we do have to take notice of horrific human events and we owe it to ourselves to respond to them in some way. We don’t always agree on those responses, however, and that usually exacerbates the problem. -
Let’s reimburse higher ed for remediation costs
The good news: Oklahoma schools are teaching phonics. The bad news: It’s in college.
Students at Tulsa Community College, for example, can take a college English course called “Spelling and Phonics,” which “helps students master basic spelling literacy, principles of phonics and decoding skills.”
This sort of higher education brings to mind former Boston University president John Silber’s quip: “Higher than what?” -
AGAINST THE GRAIN: Department of Commerce highlights Main Street successes
The 24th annual Oklahoma Main Street Awards Banquet was at the National Cowboy & Western Heritage Museum last week. Oklahoma Department of Commerce Secretary Dave Lopez addressed the gathering, and spoke of how the Commerce Department works with Main Street organizations throughout the state that are working to improve their downtown areas. Lopez pointed out that the partnership between his department and those local organizations has brought new life to those communities and that the attendees would see some of that revitalization in a video presentation. Oklahoma Gov. Mary Fallin also addressed the gathering, and said the Main Street program has resulted in more than $1 billion in investments in the state and more than 1 million volunteer hours in its 24 years of operation.
- More Opinion Headlines
-
Witnesses missing; Behenna case could be heard at Supreme Court
