I have been involved in crisis budgeting at the state level a few times and in my private business life when my oil company was wiped out in the 80's oil bust. I will say just offhand the government is much better structured to handle a crisis but for all the wrong reasons. Here would be my short list for both Kansas and Oklahoma: 1) Stop the direct payments to the OTRS and KPERS for one year. It is about $300 M to OTRS and $400 M to KPERS. The present value of a dollar... calculation makes this palatable fiscally. 2) Delay capital improvement projects across the board INCLUDING road and bridges unless they are in critical condition. Remove the revenues from anything but fuel taxes and direct federal payments. This will give the states several hundred million to work with---more in Kansas's situation than Oklahoma's but still sizable. 3) A voluntary buy out of older employees to reduce the costs of operation without harming those older employees. The structure is reasonably easy to design. Point it at 65 and older since they will qualify immediately for Medicare thus not putting them at risk health wise and not forcing the state to pay their health costs (one of the usual techniques). A simple five years of additional 'service' which amounts to a 10% increase in retirement for most of those long term workers. Once it again it is a present value of the dollar calculation and sadly an actuarial as many will die before they collect much of that 10%. However it is a fair deal for both sides as these are the higher salaried workers in general. 4) Review EVERY program and reduce or stop funding the ones that are feel good or special interest only. This is tougher than it sounds as every group will claim their "feed bucket" is essential. Legislators need to put those lobbying them in the public domain so voters can decide come this falls elections. 5) Review the Tax Expenditure report in both states to look at credits, deductions and just plain giveaways. Any that do not generate a net positive revenue or at least break even should be considered for the chopping block. If you really did all the above we are talking over a billion dollars easily. Let us see how much grit the legislatures and governors have.
from I have been involved in crisis budgeting at the state level a few times and in my private business life when my oil comp...
