The share of Oklahomans with a college education has lagged behind the national average for decades and in the last twenty years we’ve fallen even further behind.  Partly to blame is our lackluster college completion record.  Oklahoma has one of the lowest college graduation rates in the nation, with less than half (44.1 percent) of our enrolled students completing a degree within six years.  College completion rates for students of color in the state are particularly low, despite the fact that in recent years enrollment in higher education across race/ethnicity has seen dramatic improvement.  With the exception of Hispanic students, enrollment in public and private colleges and universities across the state is reflective of Oklahoma’s demographics:

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On January 1^st, tax cuts with a revenue impact exceeding $100 million, which include the full repeal of the state’s estate tax and a steep increase in the standard deduction, will take effect in Oklahoma.  Do these tax cuts reflect our priorities at a time when budget shortfalls are leading to layoffs of school personnel, cuts in Medicaid benefits, and the closing of treatment facilities for people suffering from mental illness? If Oklahoma legislators, and the voters they represent, were asked to make these choices today, most would likely decide to target scarce resources to limiting the magnitude of cuts. But because of multi-year revenue commitments made by the Legislature several years ago, during very different economic and fiscal circumstances, these tax cuts will take effect automatically next month.

As state leaders grapple with the short-term challenges of bringing the budgets for this year and next into balance, it is not too early to draw lessons from the current state fiscal crisis to design policies that will allow us to respond better the next time the economy falters. This post, the third in a series that will recommend changes to our budget and tax system, looks at options for putting multi-year commitments on hold during downturns. Our first post recommended enhanced and expanded budget forecasting; the second looked at strengthening reserve funds. The final piece will consider tax expenditures. Our proposals are all intended to enhance the Legislature’s ability to manage budget downturns without having to implement deep cuts to vital state services or enact tax increases. Read the rest of this entry »