Oklahoma’s budget is dependent on the value of petroleum products and the amount of petroleum products produced. Gross production tax increases during the FY18 Legislative session raised the questions: what really drives the amount of gross production taxes Oklahoma receives, and should we expect a big jump in taxes? After visiting with several different experts, we went to the Energy Information Administration and took a simplistic look at the cause and effect in revenues collected for gross production taxes.
The first graph is the total revenue by month from gross production collections paid to schools in the fiscal years listed. The bottom graph is the spot price of crude oil at Cushing. These graphs show that collections follow a similar pattern. We can also see several historical peaks and valleys in the collections and prices, to be expected with any commodity. When the actual data comes out this month, we can expect to see a dip in taxes because there is a cyclical dip in prices.
I want to extend my most sincere appreciation to all of you out there wrapping up the school year.
Hopefully you haven't experienced a serious crisis in your school district and the communication nightmare that can follow if you don't keep your publics informed. But if you have, you know how quickly rumors spread, parents and community members get angry and media is notified.
So now that you are back into the swing of things at school, I'm sure you have a plan in place to actively engage your parents in what's going on in your school or within your classroom.
A collection of Oklahoma education-related news of the week.