Tulsa's nonprofit social service agencies began steeling themselves Thursday for what some see as a life-or-death struggle in the state Legislature.

"We are in deep, deep trouble," said Dan Arthrell, director of public policy for the Community Service Council of Greater Tulsa.

With state social services agencies facing funding cuts of another 10 percent or more for the budget year that begins July 1, local nonprofit agencies are braced for an increase in demand for their services and a reduction in resources.

The strain, they say, will be more than many of the agencies and nonprofit groups can bear.

On Thursday, representatives of some of those agencies met at Community Service Council headquarters to plan a strategy for persuading Oklahoma's Republican legislative leaders to consider some of the revenue enhancements proposed by Democratic Gov. Brad Henry.

Those include the repeal or suspension of some tax credit programs, more aggressive collection of Internet sales and use taxes, and monetizing part of the Department of Transportation appropriation by issuing bonds for the work instead of paying cash.

David Blatt of the Oklahoma Policy Institute told the group that other possible revenue sources include eliminating a state income tax loophole that allows some filers a double deduction for state income taxes paid and a soft-drink tax.

Blatt cited an Oklahoma Health Care Authority report stating that a 10 percent cut to its appropriations would likely mean eliminating all optional adult benefits, including dialysis, prescription drugs, behavioral health, dental care, durable medical equipment and eye care.

The report itself says the Oklahoma Health Care Authority will need $1.1 billion to fund statutorily required Medicaid expenses in the upcoming budget year but has been told to expect appropriations of only $843 million.

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