A Really Annoying Excuse - How State Agencies Are Fighting Reform

In recent weeks, I have started to hear some of the most aggravating logic coming from state bureaucracies.

This year the Legislature and the Governor approved an aggressive series of far-reaching legislative initiatives designed to streamline government processes and eliminate some of the most costly and obviously wasteful practices that have existed in state government for many years.

As these laws start to take effect, state bureaucracies are trotting out their arguments for why they do not want to comply.

For example, it appears that over 50 agencies have yet to comply with an important initial phase of the state’s information technology consolidation effort.

One of the reasons given by agencies for attempting to opt out of this law is the allegation that the reforms will actually cost the agencies money because they will not be able to receive as much federal money. In other words, modernizing and streamlining services is not acceptable because the money used to maintain these inefficient services is also used to match federal money.

These state agencies are trapped in a bubble where they believe one of their primary missions is to leverage the “free” federal money in every way possible even if it means spending the state money inefficiently.

I don’t think wasting taxpayer money is ever acceptable. It does not matter if the money comes from state taxes and fees or the federal government’s money printing presses. In one way or another, the taxpayers are going to pay the price for inefficiency and massive spending.

Even if no state money were involved, we shouldn’t allow inefficient state government processes to waste federal money.

In fact, our goal should be to modernize, streamline and cut the scope of state government processes and services to the point that we can liberate ourselves from many of the countless federal mandates that accompany the federal funding.

In my view, the highest levels of state bureaucracies are all too often habituated by bureaucrats who desperately desire to preserve the big government status quo. They fear and oppose efforts that will take away their control over big government processes. They oppose new efficient strategies because they do not want to give up their ability to control the millions of dollars of state and federal taxpayer dollars -- and they will fight to preserve that control even when it means defending the most wasteful of practices. For them, it seems it isn’t about doing the right thing, it is about keeping the power that comes with all that money.

On November 10, I will chair a hearing of the Government Modernization Committee that will examine the ongoing state agency and process consolidation process. The Speaker of the House has requested our committee to create a report based on these hearings this year. It is my intent to enter into the record the list of agencies that are opposing the efficiencies and that may be in violation of the law.

It is my hope that by that time, these agencies will realize that Oklahoma’s policy makers are serious about following through with these reforms so the bureaucrats will not be allowed to maintain the big spending status quo.

Cutting Logan County Taxes

It is my belief that Logan County’s high sales tax rate has been a deterrent to retail-based economic growth. In 2005, the county made the unfortunate decision to increase taxes to the maximum amount allowed by state law. This placed Logan County businesses at a significant disadvantage when compared to their counterparts in other metro area communities that have a much lower sales tax rate.

For years, the valid perception has existed that Logan County residents will save money if they go out of the county to make big purchases. The financial impact of this perception is difficult to quantify, but I believe it has been substantial. Although, I certainly do not begrudge the communities that have offered Logan County residents a better deal by charging much less in sales tax.

Over the next few years, much of this is set to change. As soon as November, the county portion of the Logan County sales tax is set to fall by 43%. This will decrease the sales tax in Guthrie to 8.5% and the sales tax in south Logan County to just 5.5%.

Because of this decrease, by next year, the Guthrie sales tax may be just a quarter cent higher than the Edmond sales tax and just over a tenth of a cent higher than the Oklahoma City sales tax rate.

Over the next few years, as tax for the new Logan County jail is no longer needed, the Guthrie rate could fall to 7.75% and the south Logan County rate to 4.75%. This means that for the first time in many years, the Guthrie tax rate should be lower than the tax in both Edmond and Oklahoma City, and one of the lowest in the metro area. The south Logan County rate will be one of the lowest in the entire state.

I believe that recent actions by county leaders to cut sales taxes will have very beneficial long term results. I feel that one of Edmond’s keys to success was the commitment to keep lower sales tax rates when compared to surrounding communities. Now, as the growth continues to the north, Logan County officials should copy the Edmond low-tax model.

The low tax rate should serve as a strong motivator for additional retail growth in South Logan County. Over the last few years, retail businesses have already started to invest in south Logan County. These additional buying opportunities, coupled with one of the lowest sales tax rates in the state, should incentivize this growth even more. South Logan County residents will be hard pressed to justify paying in excess of an 8% sales tax in one of the surrounding communities when they can stay close to home and pay 4.75%. In fact, those who live in north Edmond will likely find it easier to avoid the traffic and cut costs when making quick purchases by driving north to south Logan County.

These impending changes will transform the area from Seward Road, south to Waterloo, into a very low tax zone, and perhaps in the future will give officials in surrounding communities a good reason to avoid raising their own taxes.

Logan County officials must maintain their current policy of tax-reduction. Lowering taxes has not been an easy task to accomplish, but implementing a low-tax policy is the right thing to do for local merchants who have invested so much into the community. Logan County’s past policy of high taxation has unfairly punished these individuals. It is also the right thing to do for the local residents who have worked hard for their income, and who will spend the savings with much more wisdom than the government ever could.