Revenue talks break down
Revenue talks at the Oklahoma Capitol temporarily broke down Thursday with both sides accusing each other of lying and refusing to negotiate.
Lawmakers arrived at the Capitol 101 days ago. There are eight more days left before the state Constitution says they must finish their work.
Thursday’s bickering all but guaranteed that major revenue measures won’t be adopted before the budget year starts July 1, unless the governor calls a special or concurrent session.
Negotiations happen behind closed doors, so it’s impossible to know if anyone is lying. House Democratic Leader Scott Inman told reporters that when he left a meeting with the House
speaker and Senate president pro tem on Wednesday night, there was an agreement that lawmakers would soon vote on whether to increase the initial gross production tax rate from 2 percent to 5 percent.
“We left last night with the understanding we were supposed to take those proposals back to our caucuses,” Inman said.
It was the first time during session this year that all of the principal legislative leaders had been in the same room talking about revenue.
But then in a news conference with reporters, Inman said Speaker Charles McCall and President Pro Tem Mike Schulz came back to the Capitol on Thursday saying there wouldn’t be a deal at 5 percent. Instead, they reportedly offered raising the tax on oil and gas production to 3 percent on all new wells.
“I don’t believe them, ladies and gentlemen. I don’t believe their words. I don’t believe they’re negotiating in good faith,” Inman said. “I believe what they’re doing is playing games on behalf of the most powerful industry in the history of the world all at the expense of the children and senior citizens in the state of Oklahoma.”
State Sen. Stephanie Bice responded on Twitter that the Senate Republican Caucus has discussed a 5 percent gross production tax rate.
“Inman suggested 5 percent was never brought to this caucus,” Bice wrote. “That’s not true and I want that point to be clear.”
She also said the 5 percent discussions happened before the current round of negotiations.
McCall also spoke to reporters. He accused Inman of leaving the negotiating table.
“We need Leader Inman to come back and continue to talk and negotiate,” McCall said. “The state of Oklahoma is in a position where leaders must put aside their personal priorities and focus on what’s best for Oklahoma. There’s no question there is a difference of opinion on this issue and where we should arrive. But we are very much willing on our side to compromise.”
Despite the raised tempers and accusations, Inman returned to the negotiating room by the end of the day. Inman said he didn’t abandon the talks, but instead had a prior speaking engagement with a Tulsa business group.
The fate of Oklahoma’s government and the services it provides apparently rests on how much the energy industry will pay in taxes. Democrats are hesitant to support the GOP’s tax increases unless a package also includes a gross production tax increase that brings in money for the next budget cycle.
Those proposed tax increases include higher rates on cigarettes and fuel.