GOP offers plan — Dems balk
Republicans put pressure on Oklahoma House Democrats on Monday with their own revenue package, a plan that was quickly and publicly rejected by the Democratic leader.
Gov. Mary Fallin, flanked by GOP leadership at a Monday news conference, endorsed tax increases that would prevent midyear cuts to Oklahoma’s major health care agencies and boost teacher salaries. The problem: It would need about two dozen Democratic votes to pass the Oklahoma House.
The plan would add a $1.50 per-pack cigarette tax and raise the motor fuel tax by 6 cents per gallon. It also includes revisions to the alcohol tax rate, likely on retail sales of low-point beer that soon will be replaced with stronger versions.
It does not include raising the tax rate on oil and gas production or a higher income tax rate for some earners, two lines in the sand that Democrats have drawn during budget negotiations.
“It’s time now to bring our special session to an end, to bring it to a resolution, so that all of us can move on,” Fallin said. There comes a point to where we have to think about what type of government do we want to have, what kind of services do we want to provide for our citizens?”
She offered few specifics about the bills; after praising the plan, Fallin and chief lawmakers left the news conference without answering reporters’ questions.
“This is a plan that we believe the people of the state of Oklahoma want. People in our state have been telling us that they want a teacher pay raise. They want health care. They want good roads and bridges in this state, and they want the budget to be fixed,” said House Speaker Charles McCall, R-Atoka, during the event.
“If you don’t want to vote for those things, don’t think those things are important, you’re voting no. It just simply boils down to that.”
The GOP’s plan would restore the earned income tax credit, add a $3,000 teacher pay raise and a $1,000 raise for state employees.
Tax bills need 76 votes in the House to pass, which means Republicans don’t have enough votes on their own. About 22 Democrats would need to join Republicans.
“It’s not a perfect plan, but it’s a really good plan,” said Senate Pro Tempore Mike Schulz, R-Altus.
House Democrats disagreed. In a statement several hours after the news conference, House Minority Leader Scott Inman, D-Del City, said his caucus will not support the plan.
“It is obvious that this budget is meant to meet one objective, which is to find a way out of this budget shortfall without restoring the gross production tax on oil and gas wells,” Inman wrote in the statement.
“Instead of asking the oil and gas industry to pay a fair and just tax, Republican lawmakers would rather tax working class Oklahomans.”
Democrats support pay raises for teachers and state employees but disagree adamantly with the revenue sources to pay for them in the plan unveiled Monday.
“Our caucus remains resolved that teachers and state employees deserve to be compensated fairly, but we will not support a plan that puts money in their right pocket just to take it back out of their left,”Inmanwrote.
Inman called on Republicans to halt the plan “and come back to the table to build a budget that works for all Oklahomans.”
Democratic opposition was not surprising. House Democrats began tweeting their disapproval Monday before the news conference even began.
“Their package fills the immediate hole but does nothing for next year’s budget shortfall of 400500 million (dollars). Completely irresponsible,” wrote state Rep. Emily Virgin, D-Norman.
Three weeks ago, Inman publicized what he called a budget agreement that eventually fell flat without any Republican support.
He again stated his support for income and energy production tax increases in a Sunday email to people following his gubernatorial campaign.