The structural deficit is a long-term issue that can only be solved over many years. Before closing the fiscal gap, we will have to understand it and then stop it from getting worse. This can involve several relatively simple and low-cost steps.

• Long-term outlook. We could require the Governor's executive budget and legislative appropriations to include a long-term forecast of revenues, expenditures and deficits. According to the National Association of State Budget Officers, 13 states include five-year revenue forecasts in their executive budgets.
• Retirement transparency. Publicizing and compiling summaries of annual reports of the employee retirement systems can allow the state's governmental leaders and the public to better understand the long-term financial commitment needed to maintain these programs.
• Tax expenditure reporting. While Oklahoma has made great strides in estimating costs of tax credits and exemptions and in disclosing who takes advantage of tax expenditures, the system does not extend to all tax preferences.
• Protecting the revenue base. Maintaining current income tax rates and not allowing more exemptions to any taxes can increase our ability to fund needed public services. Tax cuts enacted in 2004 cost the state over $2.5 billion in cumulative lost revenue over a six-year period, but demands for service have not fallen.
• Pay-as-you-go. A requirement that tax cuts and new programs be allowed only if they pay for themselves through other tax or spending actions has been adopted from time to time at the federal level to force Congress to control the fiscal gap.
• Fiscal impact forecasts. Requiring five-year (at least) fiscal impact forecasts of all fiscal actions being considered by the Legislature and requiring a super-majority vote for high-impact bills could reduce long-term costs of legislative actions.
• Fund mandates. Requiring that all laws that reduce revenue to or impose costs on local government include fiscal impact statements covering at least five years and provide funding to reimburse local governments for lost revenue or added costs beyond a threshold amount would help reduce local government fiscal gaps.

• Revenue Options to Close the Fiscal Gap
• Expenditure Options to Close the Fiscal Gap

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