Oklahoma SB1027, authored by state Sen. David Bullard (R-Durant), aims at reforming the state’s initiative petition process. The bill makes a variety of reforms to the process, one of which is a requirement to reveal if a proposed measure will have a fiscal impact (and if so, where that funding would come from).
This additional transparency, had it been in place over the past decade, would have helped alleviate some confusion and misconceptions around certain ballot measures. Two measures in particular that received considerable public attention could have been affected by this proposal—SQ 802, which expanded Medicaid in Oklahoma, and SQ 779, which would have raised the state’s sales tax to fund various education-related agencies.
Much of the conversation around SQ 802 concerned Oklahoma getting its share of “free federal dollars.” This argument was flawed in a variety of ways, starting with the fact that Oklahoma taxpayers are also federal taxpayers. Aside from the blatantly false argument that the money would be “free,” most outside estimates were well off the mark regarding expansion costs. According to the Foundation for Government Accountability, expansion enrollment is 23-32 percent higher than projections. Costs are also $600 million higher than what the Oklahoma Hospital Association predicted.
SQ 779 would have raised the state’s sales tax from 4.5 percent to 5.5 percent—a 22 percent increase in the tax rate—despite the fact that the measure was being pitched by proponents as a “penny” sales tax increase. In reality, the measure would have raised more than $500 million and increased sales tax liability by around $120 per person annually.
A clearer view of the costs associated with these ballot measures would give voters a better understanding of how these measures could affect them beyond just the language on the ballot.