PHIL G. BUSEY SR.
EDMOND — Oklahoma is experiencing aftershocks of the greatest recession and a state financial crisis. While the economy gradually improves some issues may not for a long while. Unemployment nationally is more than 10 percent and will remain high. Companies hoard huge amounts of cash ensuring stability in operations achieved by politically correct downsizing, layoffs and job elimination. Executives expect and get more production from a leaner work base. This translates into slower investment in expansion and reluctance to hire.
For Oklahoma the recession has meant severe reductions in tax revenues. Tax revenues are generated primarily from individual income taxes, sales tax, ad valorem taxes and taxes on energy and corporate revenues. Dependent on energy to sustain state tax revenues for too many years without diversification of a business and industry base has and will hit us hard. Services are being cut, funding for social programs and education reduced.
We are in a serious problem. Federal stimulus dollars eased the pain this year. We still have a Rainy Day Fund. But the current rate of deficit spending while maintaining a balanced budget could wipe that out, if applied within six months.
We suffer from no long-range planning by the Legislature for diversification of our state’s economy. Now we are virtually paralyzed in trying to diversify, keeping afloat and still funding essential functions like public education. Where was the forward thinking leadership the private sector demands in tough times? We must demand accountability of our elected officials.
As a state we will pay the price for their short-sighted inability to see the need to build a stronger, more diversified business base meaning fewer jobs and lost tax revenues. Shame on them and shame on us for letting them get away with it.
To sustain our current industries and attract new ones we have to have a first-class educational system. We don’t. The dismal dropout rates and statistics on under-funding speak for themselves as well as to corporate America planning new expansions when the economy stabilizes. We should be marketing our best resources now. Instead the news is of continued cuts, furloughs and reductions in education spending. No money for incentives or the Edge Fund. We do get rhetoric about spending without any real offer of solutions from an elected body being paid well — very well.
Our legislators make more than any state legislators in the region. They need to earn their pay. They receive $38,400 per year in base salary for part time: It’s above the per capita income for Oklahoma of $38,000 and certainly the 15 percent under the poverty level. Comparable legislative salaries in the region are Missouri at $31,400; Colorado $30,000; Arkansas $14,067; Kansas on a session per diem averages $7,316; Texas $7,200 and New Mexico $0. Ours also receive an additional $18,000 annually for health care. Plus a daily per diem of $130 while in session and mileage. It equals more than $60,000 in compensation. Not bad for part-time with annual sessions lasting 90 days. Yet more than $5 million has been paid to them since January. But few, in tough times with high unemployment, offer to reduce their compensation. One courageous representative at least — Jason Murphey — has argued for reductions in compensation from day one. These elected officials are accountable to us to work out these problems and develop solutions. There is no time for political jockeying.
In comparison we rank 42nd in teacher pay with beginning salaries of $31,600. But teachers only receive $5,000 annually for health care. Family coverage costs teachers an extra out of pocket $10,800. To add insult to pain, our educational system ranks 46th nationally in per pupil expenditures. But we can claim we are in the top ranks for legislative pay.
Public education is the cornerstone of our nation’s success and backbone of the economy: Educated students mean future job creation. But they seem close to last in priorities. We cannot sacrifice education. We need solutions and a leaner, more efficient government as a beginning.
Some argue for choice in education by paying parents a $3,000 annual stipend for private school options. This will not fix education. Improved public education remains the best option. Many cannot afford private schools even with help. Private school tuition averages $10,000 per year still costing families for one student $7,000. This is not a reasonable solution.
There are more than 600,000 students in Oklahoma schools: If one-fourth received a $3,000 stipend that alone would cost the state $450 million. If half took the $3,000 it would cost more than asked under State Question 744 each year.
We need reforms in government to build the foundation and ability to fund a “best” educational investment. It has to be a priority. This highly paid Legislature needs to perform to the expectation level of the compensation they command. They ask accountability and sacrifice of the taxpayer. They must be held accountable for performance.
PHIL G. BUSEY SR., an Edmond resident, is chairman and CEO of The Busey Group of Companies.
