Attorney General Hunter to Norman Mayor: ‘Religious Services can go on as scheduled’
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Attorney General Mike Hunter has questioned why Norman Mayor Breea Clark allowed gyms, tattoo parlors, and pet groomers to reopen on May 1 but has forbidden houses of worship from doing the same until mid-month.
At the same time, Mayor Clark has found herself embroiled in a federal lawsuit involving her decree that local hair salons could not reopen until mid-month as well.
“I want to remind Mayor Clark that there are important limits on local authority to restrict activity protected by state and federal law, especially any attempt to impose a mandatory block of religious gatherings or a closure of houses of worship,” Hunter said in a news release. “With updated state guidelines, religious services can go on as scheduled this weekend unless they are postponed or rescheduled by the religious institution itself.”
Clark’s multi-step reopening plan for Norman, dubbed the Healthier At Home Initiative, has three phases with two parts in Phase One. Part A, effective May 1, allows gyms, restaurant dining areas, pet groomers, golf courses, and massage and tattoo parlors to reopen with various restrictions on crowd sizes and access. Once she was successfully sued in local courts, hair salons were added to that list.
Under Phase One Part B, set for May 15, institutions allowed to reopen include houses of worship and youth sports leagues.
The state rules for reopening any of those facilities insist that all Centers for Disease Control recommendations be followed, including social distancing and hygiene. Hunter said those in charge of churches and similar institutions should follow those guidelines and “use good judgment and common sense when making the determination on reopening.
“Those planning to attend services should do the same,” he continued, “but the city cannot discriminate against religious groups by shuttering churches while allowing other establishments — such as restaurants, gyms, retail stores, hair salons, and massage and tattoo parlors — that pose the same or greater risk to open.”
Hunter’s release noted that “both state and federal law limit the mayor’s authority to restrict the free exercise of religion and for peaceable assembly.” He urged that she amend the plan to open churches on the same timetable as the other Phase One Part A establishments, with the same cautions and restrictions.
At the same time, Hunter cautioned churchgoers to stay home should they experience symptoms or if they have been in contact with a COVID-19 victim.
He had previously noted that “if the situation were to ever become so dire that that church services needed to be canceled by the government, all other similarly sized and situated gatherings would also need to be canceled as well.”
Mayor Clark responded to Hunter’s comments with a statement from the City of Norman which noted that “throughout its COVID-19 response, the City has acted to protect public health and safety with careful consideration of recommendations from public health experts, CDC recommendations for social distancing, and requirements of state and federal law.”
“And while we have often not received advice or input from the State, we welcome Mr. Hunter’s opinion on our current plan,” Clark added. “We will take it into consideration as we continue to ensure we are in compliance with state and federal laws and acting in the best interest of our residents.”
The Norman statement added that the amended proclamation “prohibits mass gatherings regardless of if they are religious or secular” and concluded that “constitutional rights have never been absolute. Rather, they are subject to a balancing with state interest. As noted by the U. S. Supreme Court as early as 1944, ‘(t)he right to practice religion freely does not include liberty to expose the community...to a communicable disease or the latter to ill health or death.’”
Clark’s initial response quoted in other news media was somewhat snappy and ended with an admonishment to Hunter to “Stay classy!”
Cities and states across the nation have offered differing timetables for reopening various establishments, but most have included churches and other houses of worship in the same reopening schedule as places like malls and other public facilities, albeit with capacity and social distancing rules remaining in place.
Oklahoma City’s revised timetable specifically included houses of worship among those institutions that could reopen May 1, with requirements for staggered seating and other safeguards.
The state plan announced by Gov. Kevin Stitt set a reopening date for houses of worship of May 1 but also required rigorous cleaning and social distancing. In addition, some churches have announced their own safety rules. The Catholic Archdiocese of Oklahoma decreed that elements of the Mass that traditionally included personal contact would be suspended.
The issue of closures for places of worship has been contentious from the beginning of the pandemic shutdowns. Some in Oklahoma, for example, questioned why churches were not considered essential and allowed to remain open while liquor and marijuana stores were.
In Kansas, Democratic Gov. Laura Kelly became ensnared in a court battle with state churches after her shutdown order appeared to unfairly punish churches while leaving exemptions to remain open for such places as abortion clinics. Kansas pastors were threatened with fines up to $2,500 and as many as 12 months in jail if they violated the governor’s order.
An ensuing lawsuit filed by the Arizona-based Alliance Defending Freedom (ADF) was finally settled when Gov. Kelly agreed to modify her order allowing churches to be treated as other institutions.
ADF senior counsel Tyson Langhofer noted in a statement on the group’s website that “singling out churches for special punishment while allowing others to have greater freedom never made sense and was never constitutional.” ADF voluntarily dismissed its suit after Kelly yielded.
Jeremiah Galus, senior counsel at ADF, said the Norman case is similar to the battle they successfully fought in Kansas in that it constitutes religious discrimination. “The Constitution is not suspended, even in times of crisis,” Galus said. “Unfortunately, this is not an unusual development. We are seeing unequal treatment of churches in a number of states where similar secular businesses like libraries and theaters are allowed to reopen and churches are not.”
Galus said ADF understands the need to suspend or limit some public gatherings in a time of pandemic, but he said it is a constitutional mandate that religious institutions be treated equally. “I think what they have done (in Norman) is unconstitutional,” he said.
Hair Salon Controversy
The hair salon issue emerged when at first three, and ultimately four, owners of local salons sued to force Clark to include their businesses in the initial May 1 wave of reopenings. They indicated that salons had been included in Norman’s Part B reopening list for May 15, despite the inclusion of salons in the May 1 list on the Governor’s proclamation and in all surrounding cities.
Cleveland County District Judge Thad Balkman ruled in favor of the salon owners, but Clark then asked that the suit be moved to federal court. As of May 6 hair salons were included in the list of May 1 reopenings on the Norman city website, with the notation “by appointment only.” That change was apparently made after Balkman’s ruling.
Mayor Clark noted that “although Judge Balkman issued the temporary injunction on Monday, the underlying case has not been resolved.” She added that an appeal to state court would serve no purpose because of time constraints.
“A federal court is better suited to determine claims under the equal protection clause of the U. S. Constitution,” Clark said. “This isn’t about me or hair salons or pandemics. The right of a municipality to protect the public health, safety, and welfare of its citizenry, especially in emergencies, is fundamental and we intend to do all we can to preserve that right.”
Asked about potential expenses of a protracted federal court battle at a time when Norman stands to lose millions in sales tax revenue due to the economic downturn from the pandemic, Clark said, “Removal cost $400.”
Note: Mike Brake is an independent journalist, and the author of a history of Putnam City Schools. His articles appear occasionally here on CapitolBeatOK.com, a news service based in Oklahoma City. This report first appeared at the website of the Oklahoma Council of Public Affairs (https://ift.tt/3fDJlyb). It is reposted here with permission. Brake’s past reporting at The Oklahoman included his page one story on the 1960 moon landing. In addition to stints in state government service, Brake has served as an adjunct instructor at OSU-Oklahoma City.
Attorney General Hunter to Norman Mayor: ‘Religious Services can go on as scheduled’ Click on the headline to read the full article at Site Articles
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Annual U.S. News ranks Classen SAS High School at Northeast Oklahoma’s top high school Click on the headline to read the full article at Site Articles
Lawton, Oklahoma -- Comanche Nation Chairman William Nelson, Sr. issued the following statement on Thursday (May 7).
Nelson sent the statement to CapitolBeatOK and other news organizations after his tribe was suspended from the Oklahoma Indian Gaming Association (OIGA) on Wednesday for the remainder of this calendar year.
Chairman Nelson signed a gaming compact with Oklahoma Governor Kevin Stitt. Nelson’s tribe has for some time been involved in a legal dispute with the Chickasaw Nation over a controversial approval the Bureau of Indian Affairs made, which stopped work on a Comanche casino along the Red River (http://city-sentinel.com/2019/10/equity-and-fair-play-at-center-of-comanche-challenge-to-chickasaw-land-grab/).
In his statement Thursday, Nelson said:
“It’s unfortunate the Oklahoma Indian Gaming Association (OIGA) doesn’t respect individual tribal sovereignty to negotiate new compacts. The Comanche Nation constitution makes our duty clear -- the common well-being of all Comanche Nation members.
“The Comanche Nation compact is legal. The Comanche Nation compact speaks to the well-being of all 17,500 members. The Comanche Business Committee looks forward to the immediate approval by the Office of Indian Gaming. I believe the hype of United for Oklahoma gets lost when a sovereign nation does indeed practice sovereignty.”
About the Comanche Nation: The Comanche Nation is located in Southwest Oklahoma, with headquarters located right outside of Lawton. The tribe currently has approximately 17,000 enrolled tribal members with 7,000 residing in the tribal jurisdictional area around the Lawton, Ft. Sill, and surrounding counties.
In the late 1600s and early 1700s the tribe migrated from their Shoshone kinsmen onto the northern Plains, ultimately relocating in Oklahoma.
Lands sacred to the Comanche are scattered throught the American southwest, including along the Red River in southwest Oklahoma (https://ift.tt/2WxlVSs).
For more information about The Comanche Nation, visit https://ift.tt/2KtZdoU.
NOTE: Patrick B. McGuigan contributed content to this report.
Comanche Nation Chairman Issues Statement Regarding the Tribe's Recent OIGA Suspension Click on the headline to read the full article at Site Articles
Red Rock, Oklahoma – Otoe-Missouria Tribe Chairman John R. Shotton issued a press statement Thursday (May 7). It came after the tribe was suspended from the Oklahoma Indian Gaming Association (OIGA) on Wednesday for the remainder of the calendar year.
Recently, Chairman Shotton signed a gaming compact with Oklahoma Governor Kevin Stitt (https://ift.tt/3dqcSth). In a statement to CapitolBeatOK and other news organizations, Shotton said:
“The Otoe-Missouria Tribe is a sovereign nation and we negotiated a legal compact with the Governor of the State of Oklahoma. We plan to follow the federal process for approval of the negotiated compact. Regardless of the opinion of the OIGA, there are not hierarchies of sovereign nations in Indian Country. Each tribe has the right to negotiate the best compact available for their tribal government.
“We still support the intentions of the other tribes to fight for the very best compact for their individual governments. I certainly hope as negotiations continue, other tribes won’t be singled out for exercising their tribal sovereignty.”
About The Otoe-Missouria Tribe: The Otoe-Missouria Tribe is located in North Central Oklahoma in Red Rock. There are currently 3,288 members enrolled in the tribe with 2,242 living in Oklahoma. The tribe was relocated to Oklahoma in 1881 from its first reservation on the border of Nebraska and Kansas. (https://ift.tt/35IiX1v)
For more information about the Otoe-Missouria Tribe, visit https://www.omtribe.org/.
www.CapitolBeatOK.com
Otoe-Missouria Tribal Chairman responds to gaming association power play Click on the headline to read the full article at Site Articles
The Oklahoma Senate voted 38-9 to approve a bill Thursday (May 7) aiming to “protect election integrity in the absentee ballot process.” The bill now heads to the governor’s desk for consideration.
Senate President Pro Tempore Greg Treat, R-Oklahoma City, is author of the bill. A release from the state Senate’s communications staff said the measure aims at “preserving the absentee ballot process while granting exemptions during the course of the coronavirus health pandemic.”
In a statement included in Thursday’s press release, Pro Temp Treat said, “Unfortunately, the Oklahoma Supreme Court legislated from the bench on Monday. Oklahomans need to have confidence that our election process is secure and free from fraud. This measure upholds the integrity of our absentee ballot process while also making it easier to vote absentee during the ongoing coronavirus pandemic all in an attempt to protect the health and safety of voters and election workers.
“Through the ballot box and in our Constitution, Oklahomans have made it abundantly clear they want our elections free from fraud and interference. The Legislature has followed through and enacted measures to uphold and protect our election process. This is a good solution that addresses concerns raised about voting during a pandemic, while also maintaining the integrity of the absentee ballot process.”
As summarized in Thursday’s press release, Senate Bill 210 includes these provisions:
• Requires voters to have absentee ballots notarized, which has been the standard in Oklahoma for well over 50 years.
• Allows voters to submit absentee ballots with a copy of their identification or voter identification card, in lieu of having it notarized, if a public health emergency has been declared within 45 days of an election. That is expected to include the June 30 primary election.
• The bill also allows residents of long-term care facilities and veterans’ centers to vote absentee under existing Election Board procedures for those facilities that would be enhanced by allowing a facility official to be deputized by an election official to enter the facility to collect required documentation.
• Those ill with COVID-19 who cannot leave their home, those suffering from symptoms of COVID-19 and those in high-risk categories can be considered “physically incapacitated” and can have an absentee ballot sent to their home.
www.CapitolBeatOK.com
Oklahoma Senate sends to governor measure aiming to ‘protect election integrity’ in absentee voting process Click on the headline to read the full article at Site Articles
April Gross Receipts to the Treasury plunged by more than half a billion dollars as the coronavirus pandemic disrupts Oklahoma’s economy, state Treasurer Randy McDaniel announced Thursday (May 7).
Gross receipts in April total $1.08 billion, a drop of $502.5 million, or 31.8 percent, from April 2019.
The economic impact of the pandemic is spread across all major revenue streams, but is most evident in income tax collections due to the postponement of the April 15 filing deadline to July 15. Gross income tax receipts are down by more than 50 percent for the month.
“The state economy is clearly showing the repercussions of the novel coronavirus,” Treasurer McDaniel said. “While the resiliency of Oklahomans is a key source for enduring optimism, the near-term situation is expected to be especially challenging.”
McDaniel pointed out that gross production tax collections have yet to reflect the impact of record low oil prices. Gross production receipts in April are based on oil field activity two months earlier – in February – when oil was still more than $50 per barrel. Even so, collections this month were down by 24 percent from a year earlier.
The average price of oil during April was less than $20 per barrel. The impact of the price crash will begin to be seen in May receipts, but will be more fully realized in June collections.
Combined sales and use tax collections of $430.4 million are down by $44.7 million, or 9.4 percent, indicating a pullback in consumption during April likely due to shelter-in-place policies. Sales taxes, down by $47.3 million, are somewhat offset by a $2.6 million increase in use taxes assessed on out-of-state purchases including online sales.
Economic indicators
The unemployment situation in Oklahoma is rapidly changing. The March jobless rate was listed at 3.1 percent, but the employment survey was taken early in the month before many jobs were lost due to the pandemic.
Since March 15, the Oklahoma Employment Security Commission reports it has paid more than 430,000 jobless claims. In early March, 56,100 Oklahomans were listed as unemployed.
The Oklahoma Business Conditions Index dropped to 34.2 in April, down from 45.7 in March. Numbers below 50 indicate economic contraction is expected during the next three to six months.
April collections
April gross collections total $1.08 billion, down by $502.5 million, or 31.8 percent, from April 2019.
Gross income tax collections, a combination of individual and corporate income taxes, generated $405.8 million, a decrease of $414.4 million, or 50.5 percent, from the previous April.
Individual income tax collections for the month are $368.4 million, down by $325.1 million, or 46.9 percent, from the prior year. Corporate collections are $37.4 million, a decrease of $89.3 million, or 70.5 percent.
Combined sales and use tax collections, including remittances on behalf of cities and counties, total $430.4 million in April. That is $44.7 million, or 9.4 percent, less than April 2019.
Sales tax collections in April total $368.3 million, a drop of $47.3 million, or 11.4 percent from the same month of the prior year. Use tax receipts, collected on out-of-state purchases including online sales, generated $62.1 million, an increase of $2.6 million, or 4.3 percent, over the year.
Gross production taxes on oil and natural gas total $60.7 million in April, a decrease of $19.1 million, or 24 percent, from last April. Compared to March 2020 reports, gross production collections are down by $18.2 million, or 23.1 percent.
Motor vehicle taxes produced $53 million, down by $18.1 million, or 25.5 percent, from the same month of 2019.
Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $129 million during the month. That is $6.2 million, or 4.6 percent, less than last April.
Twelve-month collections
Gross revenue totals $13.22 billion from the past 12 months, May 2019 through April 2020. That is $223.9 million, or 1.7 percent, below collections from the previous 12-month period.
Gross income taxes generated $4.38 billion for the 12 months, reflecting a decrease of $186.7 million, or 4.1 percent, from the prior 12 months.
Individual income tax collections total $3.86 billion, down by $193.1 million, or 4.8 percent, from the prior period. Corporate collections are $524.7 million for the period, an increase of $6.4 million, or 1.2 percent, over the previous 12 months.
Combined sales and use taxes for the 12 months generated $5.52 billion, a decrease of $15.9 million, or 0.3 percent, from the prior period.
Gross sales tax receipts total $4.79 billion, down by $89.4 million, or 1.8 percent, during the period. Use tax collections generated $729.8 million, an increase of $73.5 million, or 11.2 percent, over the previous 12 months.
Oil and gas gross production tax collections brought in $957.3 million during the 12 months, down by $151.9 million, or 13.7 percent, from the previous 12 months.
Motor vehicle collections total $778.2 million for the 12 months. This is a decrease of $12.8 million, or 1.6 percent, from the trailing period.
Other sources generated $1.58 billion, up by $143.5 million, or 10 percent, from the previous period.
About Gross Receipts to the Treasury: The monthly Gross Receipts to the Treasury report, developed by the state treasurer’s office, provides a timely and broad view of the state’s economy.
It is released in conjunction with the General Revenue Fund report from the Office of Management and Enterprise Services, which provides information to state agencies for budgetary planning purposes. The General Revenue Fund, the state’s main operating account, receives less than half of the state’s gross receipts with the remainder paid in rebates and refunds, remitted to cities and counties, and apportioned to other state funds.
www.CapitolBeatOK.com
Oklahoma Treasurer Randy McDaniel Reports: Coronavirus strikes state government revenues Click on the headline to read the full article at Site Articles
In the May print edition of The City Sentinel newspaper, I crafted a rather cautious defense of the gaming compact Oklahoma Governor Kevin Stitt forged with the Comanche Nation and the Otoe-Missouria Tribe. It was also posted online.
Forgive me: I was wrong to be cautious, although my intentions were right.
A combination of principle (after reading and re-reading the governor’s defense of his actions) and pragmatism leads me now to say: It is past time – make that long past time – to get gaming in Oklahoma out from under the control of one tribal nation.
Last month, the state’s chief executive transformed the conversation about Oklahoma’s tribal nations and relations with the state government. (https://ift.tt/3ceOwm9)
For a long time, it has been like this: Whatever the powerful Chickasaw Nation says, goes – especially if they are in agreement with the other big players (read: Cherokee, Choctaw and, to some extent, Creek).
The Chickasaw leadership is a master at getting their way in every close call (and some not so close) when the Bureau of Indian Affairs is involved. You see, the Chickasaw think it is just fine for the federal government to have the leading role in decision-making – so long as the Chickasaw win every discussion, every argument and every decision.
That was certainly the case when it came to a disagreement over land along the Red River. The Comanche already had plans for a nice casino location (it would have been the best of their comparatively modest holdings).
The Chickasaw got the BIA to agree to green light their project in the same location. (https://ift.tt/2WxlVSs)
No notice, no consultation and no decency when the secretive BIA approval was in place for days before anyone knew about it, and before it was publicly promulgated by the Feds.
Whether or not that situation had anything to do with his motivations, credit Stitt for honoring the rights and options of smaller tribal nations to forge their own future, and, in the process, get a better deal for Oklahoma taxpayers.
An 11-page memorandum by Stitt’s general counsel laid out the governor’s case for guiding and managing compact negotiations. Briefly stated, Oklahoma governors have authority (make that sole authority) to negotiate and carry out gaming compacts. The state constitution makes this clear, and a 2004 A.G. opinion (crafted by one of Hunter’s predecessors) makes it even clearer.
To believe otherwise would (quoting that earlier opinion) “result in a vehicle ‘by which the executive department is being subjected to the coercive influence of the legislative department’.”
Either the Legislature is in charge, or the governor is in charge in this area. Plain text indicates it is the governor. To believe they can both be in charge would violate separation of powers.
But don’t get too excited. The not-so-little secret is that, in the end, the “Ultimate Sovereign” in negotiations between states and tribes is … the federal government. But even there, parties are supposed to follow a process.
Let me do more than whisper it: Many years ago, the Chickasaw got exempted from processes they want meticulously to apply to everyone else.
The argument over sports betting is important to the Comanche and to the Otoe-Missouria, but it is essential to remember that it was the powers-that-be in Oklahoma Indian Country (the Chickasaw and other big players) who opened that possibility when they strong-armed approval of ball and dice several years back.
Oklahoma Attorney General Mike Hunter (is he running for a higher office in 2022?) did not not like the governor’s accord with the Comanche and Otoe-Missouria even one little bit.
He made that clear with an edict last week, about four months after his December 17 decision to stop representing the state of Oklahoma in compact negotiations with the tribes.
The fact that legislative leaders agree with Hunter is unfortunate, but that does not lessen the force of the governor’s arguments. I bear them no ill will – something I can’t truthfully say about the A.G.
When all this is over, there will still be tribal-run gaming in Oklahoma.
The question is will benefits remain mostly in the hands of a few, or will there be a more diverse mix?
To sum up: After a second reading (and then a third, and then a fourth), it turns out that the governor and his general counsel have a point.
Make that two or three points.
Actually, there’s more than that.
The best way to put it is in plain English, without excessive resort to the language of lawyers.
In the matter at hand, Governor Stitt is right.
His critics are wrong. His allies need to say so.
So, I just said it.
NOTE: McGuigan is publisher of The City Sentinel newspaper in Oklahoma City, where this analysis was first posted. He is also founder of CapitolBeatOK, an online news service.
www.City-Sentinel.com
I was wrong in part, but now I am right in full: Stitt, Comanche and Otoe-Missouria green light a better future Click on the headline to read the full article at Site Articles
The Legislature began to process a state budget on Tuesday (May 5), in wake of an announcement of a budget accord among the Republican majority at the state Capitol. State Sen. Kay Floyd of Oklahoma City minority leader in the upper chamber, raised cautionary notes after Tuesday’s approval, in the upper chamber, of a Fiscal Year 2021 budget.
In comments sent to CapitolBeatOK and other news organizations, Floyd said, “The Oklahoma Senate passed a state budget for Fiscal Year 2021 which cuts funding by approximately 4 percent compared to the current year. Preparing the budget is a challenging task under normal circumstances but especially this year in the midst of the COVID-19 pandemic. Oklahomans are hurting, our economy is struggling, and state revenues have taken a major hit.
“We commend Senate Appropriations Chair Roger Thompson for his hard work on this budget and his efforts to limit the extent of the cuts. [https://ift.tt/3fq7Bnj]
“Senate Democrats understand tough choices must be made; however, we are unable to support a budget that cuts funding for core state services at a time when they are most needed. This budget includes significant cuts to public schools, higher education, human services, public health, mental health, and public safety. Prioritizing sustainable investments in these areas is critical to the long term strength of Oklahoma’s economy.
“Without the will to consider revenue options, our state budget will continue to have a structural deficit and the Legislature will be forced to plug budget holes year after year. Senate Democrats will continue to advocate for a more balanced approach.”
Previously, as the state began to edge toward a “reopening” plan for businesses, based on the approach Governor Kevin Stitt announced in April (https://ift.tt/3dqRrIP), Sen. Floyd commented, “The impact of the COVID-19 pandemic has hurt many of Oklahoma’s small businesses and their employees. We agree preparations must be made to safely reopen these businesses and put Oklahomans back to work but this must be done based on sound data and recommendations from public health experts.
“Oklahoma Senate Democrats have major concerns with Governor Stitt’s plan to begin phasing out some COVID-19 business restrictions. Acting prematurely, before we have adequate testing and contact tracing in place and before Oklahoma is in compliance with Centers for Disease Control guidelines on reopening, places public safety at risk. We must proceed carefully with a balanced approach.”
Last month, Sen. Floyd applauded Stitt’s announcement that State Question 802, the Medicaid expansion initiative, would be on the upcoming June 30 primary ballot. In her statement on the ballot designation, Floyd said, “After many years of legislative attempts to address this issue failed to advance, Oklahomans will finally have a chance to vote on Medicaid expansion. Oklahoma Senate Democrats have long advocated for our state to accept federal funds for Medicaid expansion. A record number of Oklahomans signed the petition to place this state question on the ballot. (https://ift.tt/2ZJ2es2)
“In the midst of this pandemic, we need to make sure Oklahoma voters have an opportunity to weigh in on this important issue. Oklahomans must have plenty of options to vote on State Question 802, including on Election Day, through expanded early voting hours, or with a mail in ballot.”
Editor's Notebook: In recent statements, Democratic Leader Kay Floyd reflects on budget, business reopening and State Question 802 Click on the headline to read the full article at Site Articles
The Oklahoma legislature faces an estimated $1.3 billion dollar revenue shortfall due to falling oil prices, reduced sales tax and fuel tax collections, and COVID-19. The state will receive an estimated $800 million from the federal government through the COVID-19 stimulus bill, which could help plug some holes, but even with that money it appears budget cuts are looming.
House Majority Floor Leader Rep. Jon Echols, R-Oklahoma City, said the state has lost more than 18 percent of its total revenue and cuts to state agencies could range from 3-10 percent. The Oklahoma Constitution requires the legislature to pass a balanced budget, so it will be challenging times at 23rd and Lincoln this month. (NOTE: The Legislature made a start this week, with leadership announcing plans to press a new budget through the process.)
The federal government is not constrained by a balanced budget amendment, so deficit spending is the norm. With the passage of the stimulus bill, the federal budget deficit this year will be $2 trillion dollars and the national debt will top $25 trillion. With record unemployment and the economy in the tank, deficit spending makes sense in the short term, but spending money you don’t have will have long term impact on future generations.
In 1929, the U.S. stock market collapsed, banks and businesses failed and unemployment was 25 percent. Demand for goods and services declined and supply was reduced.
The Federal Reserve, which has been created in 1912 for the purpose of providing the nation a more stable monetary system, raised interest rates to limit speculation in securities markets.
That backfired and caused panic and reduced demand further. President Herbert Hoover tried to keep the federal budget balanced until 1932. He believed in the economic system called Liquidationism, and that no government action should be taken during an economic downturn. Liquidationism holds the ‘temporary pain’ of companies being liquidated is a solution in itself and government should stay out of the way.
Eventually Hoover did acquiesce to pressure to provide relief to citizens and agreed to a deficit budget, but he remained firm in not baling out private companies.
In 2020, the Federal Reserve is firmly in control of our economy (good and bad). The interest rate is set by the Fed. Monetary supply (money to be loaned) is controlled by the Fed. Congress and President Trump have already shown they are willing to deficit spend to get through this crisis. There is not the political will or public support to allow the economy to suffer ‘temporary pain.’
This crisis will have an impact on how people live in the future.
Here are three predictions of change:
First, the world’s eating habits will change. More food will be consumed at home- less at restaurants. That has been the recent trend. In 2018, Americans ate out 185 times a year, down from a high of 216 in 2000. That’s good news for grocers, not so much for restaurants.
Second, retirement plans will change. With the stock market losing up to 30 percent of its value during this crisis, some will have to delay retirement or forego it all together. Those who are retired and relying on investment income will have to make adjustments to their lifestyle or go back to work.
Third, the next generation will change. The COVID-19 crisis is a part of their experience. How they will work, play, invest, worship, interact, and vote will be filtered through the experience.
That can be good and bad. The good is they will understand that life is fragile and they should cherish it. The bad is they may believe life is so fragile; they live it like a dare-devil.
Deficits and shortfalls are all around us, but God is still in control and has no deficit or shortfall.
Stay safe!
Note: Steve Fair writes a column that appears regularly in many Oklahoma newspapers, at the CapitolBeatOK website, and occasionally in The City Sentinel newspaper. Steve is also Chairman of the 4th district of the Oklahoma Republican Party. He can be reached by email at [email protected]. His blog is stevefair.blogspot.com.
Commentary: God has no deficit Click on the headline to read the full article at Site Articles
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Lawyer for death row inmates calls June and July ‘reasonable timeframe’ for key issues in Oklahoma lethal injection case Click on the headline to read the full article at Site Articles |
Pat McGuiganThe dean of all Oklahoma Journalism, Mr Patrick McGuigan; has a rich history of service in many aspects of both covering the news and producing the information that the public needs to know. Archives
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