Bond issues open spend-vs.-save debate
Bond issues open spend vs. save debate
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By Michael McNutt
Published: June 1, 2008
Modified: May 31, 2008 at 7:32 pm
Modified: May 31, 2008 at 7:32 pm
Three bond issues totaling $475 million — including $300 million for the state's highways and bridges — will not be a financial drain for the state, the governor's chief budget adviser says.
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Opposing the liability
A handful of legislators voted against the bond issue proposals, saying the state shouldn't be increasing its debt when the national economy is struggling and Oklahoma's economy is slowing.
Rep. Paul Wesselhoft, R-Moore, said he gave his skunkmaster award to the bond issue because it's the "stinkiest” piece of legislation lawmakers approved during the session that ended May 23.
"We've taken the credit card and we're going to owe some $40 million a year for the next 15 to 20 years,” Wesselhoft said. "You have to expect within the next 15 to 20 years that we're going to have not only some flat budgets as we did this year, but we're probably going to have some deficit budgets because our economy is cyclical.”
Supporting projects
It's better to spend the money now, Meacham said.
"Look at what happens if we don't do that,” he said. "If we don't address the road needs in Oklahoma, they cost you more to pay them out over time because of inflation, so you actually spend more money doing it that way.
"Let's say we don't fix those dams, and we have big rains like we have all the time in Oklahoma, and it causes damage to private and public property and it costs you more as a state to deal with that.
"Let's say we have to shut down construction on the Native American museum; first off we have an eyesore until we finally finish it, and then it costs you much more to rebid and restart the whole thing up and get it finished.”
The state should have no problem making the annual payments, Meacham said.
Related Topics:
U.S. State Government, U.S. Government, Business, Financial Markets, Bond Markets, Fixed Income Securities

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