Gubernatorial candidate Lt. Gov. Todd Lamb says he doesn’t support plans that involve tax increases.
STILLWATER — Lt. Gov. Todd Lamb, campaigning for governor here Tuesday night, ruled out tax hikes as a way to plug the state budget hole and gave only faint praise to a coalition of state business and civic leaders who advanced a sweeping proposal to raise revenue and reform government.
At a meeting of the Payne County Republican Party, Lamb was asked about Step Up Oklahoma, which presented its plan last week in Oklahoma City.
“I’ve read a little bit about Step Up Oklahoma,” Lamb, a Republican, said. “I know there are a lot of good men and women in that organization — that loosely affiliated group — that care a lot about Oklahoma. I’m against tax increases. Did you hear that? I’m against tax increases. I like some of the reforms in Step Up Oklahoma. I particularly like the Office of Budget Accountability and Transparency.”
Step Up Oklahoma — which includes executives from some of the state’s leading companies — called for a $5,000 teacher pay increase and ensuring funds for core state services. The group’s plan would raise about $800 million with increases in: the gross production tax on oil and gas extraction; the tax on cigarettes, little cigars, chewing tobacco and e-cigarettes; taxes on diesel and gasoline. Also, some income tax deductions and credits would be modified.
Numerous reform proposals are included in the package to be presented to the state Legislature, including political ones such as allowing state lawmakers to serve longer. The group also called for the creation of a state office to ferret out waste; that is the one aspect of the package praised Tuesday by Lamb.
The state Legislature is currently in a special session called to deal with the budget shortfall. Gov. Mary Fallin said last week that she would veto any budget bill that doesn’t include a pay hike for the state’s teachers.
Lamb said he wants teacher pay increased. And he said revenue could be raised by removing some of the current exemptions from the state sales tax.
Lamb, in his eighth and final year as lieutenant governor, is one of six Republicans who has announced his intent to run for governor. A poll released this week showed him running in second behind Oklahoma City Mayor Mick Cornett.
Asked at the meeting Tuesday night whether oil and gas companies could bear higher taxes on their production, Lamb said he was concerned about jobs at all of the companies that make up the energy industry in Oklahoma.
“I’m not a fan of increasing the gross production tax,” Lamb said. “I’m not.
“Every incentive the oil and gas industry has had in Oklahoma over the years is gone. There’s no incentive. And when you start comparing Oklahoma’s gross production tax to Texas’ gross production, New Mexico, Pennsylvania, the Dakotas — it’s apples and oranges because they might pay a higher gross production tax in a different state but that state also has incentives.”
Top energy company executives in Oklahoma City are backing Step Up Oklahoma. And, Tuesday, endorsements came from the board of directors of the Oklahoma Oil & Gas Association and the executive committee of the Oklahoma Independent Petroleum Association.
Endorsement by those groups is considered critical to the potential success of Step Up Oklahoma’s comprehensive slate of reform and revenueraising proposals because the oil and gas industry is being asked to pick up the tab for about $133.5 million in new state revenue through an increase in the gross production tax.