Monday, January 4, 2010
AP report today, Speaker Chris Benge is considering a proposal to create an Energy Stabilization Fund that would hopefully smooth-out the peaks and valleys of the state's budget.
I think this is a must.
The state's budget volatility is due in large part to the volatility of tax revenue generated from Oklahoma's energy industry caused by seismic fluctuations in energy prices. The fund would function by setting aside revenue from energy industry taxes while prices are high. And when prices fall the financial reserves can be tapped to stabilize the budget.