No one can deny that the state of Oklahoma is facing a budget crisis. By some 

estimates the projected shortfall for next year has now grown to an estimated $1.3 billion. 

And since the state of Oklahoma is required by law to have a balanced budget, our 

legislators and governor will be under immense pressure to act swiftly and decisively. 

But let’s face it, crises are not conducive environments for fostering sound decisions. 

Some, out of desperation or for unsound ideological reasons, will advocate slashing 

expenditures for necessary infrastructures or essential services. Others, to quote President 

Obama’s former chief of staff, Rahm Emanuel, will seek to “never let a serious crisis go 

to waste” and attempt to use this as an opportunity to implement new permanent taxes 

that may hamper future economic growth in this state.

 

Truth be told, however, the situation that the legislators and governor of this state 

find themselves in is not unprecedented in Oklahoman history. Despite all of the rhetoric 

of bringing new industry to this state, rational people understand that Oklahoma has 

always been, and for the foreseeable future, will be a state whose economy is largely 

based on agriculture and oil and gas. Because of this reality, as long as our tax system is 

so dependent on such volatile commodities, budget crises like the one we currently face 

will be a reoccurring reality. That is why I propose the creation of what I call a 

“Tourniquet Tax” – that is a tax, which like a tourniquet, could be applied in times of 

emergencies, but would be removed once the budget crisis is over and commodity prices 

have returned to a more profitable level. In particular, I call for the creation of a 3 cent 

per gallon tax on fuel (which could be adjusted downward depending on the 

circumstances) which could be imposed by the governor or legislature (depending on 

how the law would be written) in times of low oil prices, and would be lifted by either the 

legislature or governor (again, depending on how the law would be written) when oil 

prices returned to more profitable levels. Currently, with gas prices running about $1.20 a 

gallon, most Oklahomans would be willing to pay an extra 3 cents a gallon to close the 

budget shortfall. When oil prices return to more normal levels, and gas prices rise higher,

our current budget shortfall should come to an end. And when this 

day comes – as we know it will – this proposed “Tourniquet Tax”, must be removed; for 

like a real tourniquet, if left on too long it will cause damage, because like all unneeded 

taxes it has the potential of stifling economic growth.

 

Since this “Tourniquet Tax”  must include a provision that would trigger 

automatic removals of the tax as oil prices stabilized (probably the best option), or a 

provision that would allow the governor or legislature to impose and remove the tax 

based on revenues collected from oil and gas taxes (probably the simplest solution), the 

“single-subject” rule would mean that it would never have a chance of seeing the light of 

day as either a legislative act or a legislatively referred constitutional amendment. 

However, since the “single-subject” rule could be construed as applying only to 

legislative acts and legislatively referred constitutional amendments (see Article V, 

Section 57 and Article XXIV, Section 1 of the Oklahoma Constitution), this “Tourniquet 

Tax” might have a chance as a citizen-initiated constitutional amendment. While creating 

a “Tourniquet Tax” will not be easy, allowing those who “never let a serious crisis go to 

waste” to either eviscerate essential infrastructures and services or impose new, 

permanent, economic-stifling taxes would be ruinous for the people of Oklahoma.

 

Kevin Crow

February 13, 2016