The state Board of Equalization showed last month that general revenues grew $300 million before several “off-the-top” new expenditures were made for transportation and education, leaving $32 million in unearmarked new dollars left for legislators to work with this session.

The state income tax was set to fall to 5.25 percent in 2009 if revenues grew more than 4 percent. But since the growth--minus the education and transportation spending--fell below that figure, the tax cuts will not go into effect automatically next year. Spending priorities (Transportation + Education) were given precedence over tax cuts.

State revenues continue to climb despite criticism that income tax reductions to taxpayers will negatively impact the overall revenues. Those who look at a 'snapshot' of a single item (income tax reduction) and say a 1% drop in income tax rate will result in an overall decrease in dollars haven't considered that cut in one area always affects the economy as a whole. We continue to have a dynamic, growing economy fueled in part by efforts to keep as much money as possible in the hands of hard working Oklahomans.