Legislators fail to remedy funding gap
The Oklahoma House failed Wednesday to pass a package of tax increases, killing the latest effort to fill a $215 million budget hole after a monthlong special session.
With Wednesday’s vote, the Legislature returns to square one amid the same budget disagreements that have stalled progress since May. Republicans are expected to offer a new proposal Thursday morning when the House reconvenes.
The package voted down Wednesday included a $1.50-perpack cigarette tax, a sixcent tax increase on gas and changes to the way Oklahoma taxes lowpoint beer and cigars. It would have covered much of the budget shortfall while still requiring the Legislature to make some cuts.
“It has something for everyone from both sides of the aisle and there’s something in it that both sides don’t like,” said Rep. Kevin Wallace, R-Wellston, the bill’s sponsor.
The bill failed by a vote of 54-44, not garnering 76 the threefourths majority necessary to raise taxes under the Oklahoma Constitution. Democrats joined 15 Republicans in opposition.
For two hours, Wallace faced a deluge of questions and disagreements from Democrats who verbally sparred with him over the gas tax, the lack of a gross production tax increase and necessary budget cuts.
“Do you honestly feel this is a fair bill? To tax everyday, working Oklahoma families?” asked Rep. Matt Meredith, D-Tahlequah.
House Minority Leader Scott Inman, D-Del City, questioned why the Legislature should vote for a revenue bill that would still require budget cuts. Inman did not vote on the bill and, during debate, announced on social media that he would resign in January to focus on his family. He also ended his gubernatorial bid.
“This is the best package to get the votes to raise the revenue,” Wallace told Inman. “Is there things in here you don’t like? Absolutely. Is there things in here I don’t like? Absolutely.”
Wallace later told Democrats, “The state of Oklahoma needs your vote.”
Since being revealed Monday by Gov. Mary Fallin and leading Republicans, the package had been panned by Democrats and conservative Republicans, the former because it did not raise gross production taxes on oil and gas companies, the latter because it raised taxes rather than cut the budget.
“Deficits are not a revenue problem, they are a spending problem,” said Rep. John Bennett, R-Sallisaw. “We need to stop feeding the monster.”
The House gaveled in at 9:30 a.m. Wednesday, heard an invocation, recited the Pledge of Allegiance and almost immediately adjourned for caucus meetings. Republicans left the room to huddle among themselves. Democrats remained on the House floor for discussions.
During the caucus meetings, House Speaker Charles McCall, R-Atoka, offered Inman a deal. If Democrats would vote for the revenue bill, McCall would hold a vote on increasing the gross production tax to 5 percent.
After 40 minutes, Republicans returned from their meeting, and lengthy debates on the bill followed. The House soundly rejected three motions from Democrats to add a gross production tax increase and another motion to tax high-income individuals. Democrats claimed the failed votes were proof Republicans are unwilling to further tax corporations and the wealthy.
At a news conference while the vote was still ongoing, McCall urged Democrats to change their position.
“This is a good plan. It is not a perfect plan but, as the governor has said, don’t let perfect be the enemy of good,” the speaker said.
During his remarks, Rep. Cory Williams, D-Stillwater, followed close behind and antagonized McCall, rebutting several points the Atoka Republican made in defense of the proposal.
As McCall walked out of the press gallery, Williams and the speaker had a final exchange.
“You’re delusional if this passes,” Williams said.
“You guys need to support this,” McCall told him, edging past Williams. “This is bull---.”
“I’m glad you think so — so does most of Oklahoma,” Williams retorted.
Fallin, who has been at the center of closeddoor discussions on the budget, had repeatedly thrown her support behind the deal.
“These measures are part of the budget agreement that will help fill our budget hole for the current fiscal year as well as put Oklahoma on a more stable budget path and allow us to address the funding of core services going forward,” the Republican said in a statement before the vote.
The revenue package passed House and Senate budget committees Tuesday over the objections of all Democrats and a few conservative Republicans. The committees also passed pay raises for teachers and state employees, sending them to the House.
“Supporting the budget plan gives teachers a raise, prevent cuts to health services, keeps rural hospitals open and stabilizes our budget,” said Sen. Kim David, a Porter Republican and chair of the Senate budget committee, before Wednesday’s vote.
Because they failed to pass the revenue package, the House did not take up the $3,000-per-teacher pay raise or the $1,000-per-person raise for most state employees. Those measures were reliant on passage of the revenue package needed to fund them.