Constitution hurts state's growth, economists say

OKLAHOMA CITY (AP) -- A report by a team of economists says Oklahoma's constitution hinders the state's chances for economic development because of its restrictions on local school funding and

Friday, February 11th 2000, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) -- A report by a team of economists says Oklahoma's constitution hinders the state's chances for economic development because of its restrictions on local school funding and state tax changes. "Strict constitutional limitations on property taxes havei mpaired the state's ability to educate its population and develop its human resources, contributing to a per capita personal income20 percent below national average," said Kent Olson,
Oklahoma State University economist.

Olson is president of Oklahoma 2000, an affiliate of The State Chamber. The report issued Thursday outlined several needed constitutional changes including:
-- Elimination of the millage cap on schools.
-- Elimination of the supermajority, or 60 per cent, requirement on school bond issues.
-- Elimination of the cap on school bonded indebtedness.

The report also said State Question 640, a constitutional amendment that restricts the Legislature's ability to raise state taxes, will impede the Legislature's ability to deal with tax changes that likely will be created by economic or federal tax policy changes.
SQ
640 was adopted by voters in 1992 and requires a vote of the people on any state tax change that fails to get approval of 75 percent of both houses of the Legislature. Constitutional restrictions also curb the state's ability to fund public infrastructure, Olson said.

The report said the state can provide tax incentives for business, but must go through the arduous process of getting voter approval required by the constitution.