The Oklahoman

Gubernator­ial candidate Mick Cornett says his first instinct is not to raise taxes.

- BY CHRIS CASTEEL Staff Writer ccasteel@oklahoman.com

Oklahoma City Mayor Mick Cornett praised Oklahoma business and civic leaders for proposing a revenue and reform package but stopped short of endorsing the tax increases meant to fund a teacher pay raise.

Cornett, a Republican candidate for governor, said, “I don’t want to mislead people into thinking that my first instinct when there’s a budget issue is to raise taxes. That’s not my history and it’s not what we’ve done in Oklahoma City. I see where they are and I think it’s a wise thing to do to put a lot of things out there and discuss it.”

Step Up Oklahoma, a coalition of some of the state’s top leaders in the private sector, called on Gov. Mary Fallin and state lawmakers to consider an $800 million package of revenue raising items and a $5,000 pay raise for all teachers. The package also details numerous political and budgetary reform measures. Fallin said Friday she wants the Legislatur­e to consider the tax proposals in the current special session.

The tax changes include:

• Increasing the tax on cigarettes and little cigars by $1.50 per pack, and adding an additional 10 percent tax on chewing tobacco and e-cigarettes.

• Increasing the oil and gas gross production tax by increasing the rate on wells currently at 2 percent to 4 percent, and requiring all future wells to initially be taxed at 4 percent for 36 months before moving up to 7 percent;

• Implementi­ng a renewable generation tax at $1 per megawatt hour.

• Increasing the tax rate on diesel and gasoline by 6 cents per gallon.

• Imposing a dollar cap on transferab­ility/cash refundabil­ity for coal, wind and railroad tax credits effective with the 2018 tax year.

• Expanding the definition of covered games in the model tribal gaming compact to include “non-house-banked table games.”

• Reforming rates, exemptions, deductions and credits on the individual income tax code.

Lt. Gov. Todd Lamb, who also is running for the GOP nomination for governor, said last week that he did not support raising taxes.

Former Oklahoma Attorney General Drew Edmondson, a Democrat running for governor, expressed support for the Step Up Oklahoma effort but said he would raise the gross production tax to 7 percent for all wells right away.

Cornett spoke about the proposals in a brief interview Saturday while greeting people at the state fairground­s in Oklahoma City.

“I think first of all you have to salute the business owners who have stepped up and are trying to intervene in a statewide issue that they just don’t see being resolved in a typical way," he said.

“And I think what it shows is these business leaders need some certainty. You can’t run a business, you can’t come up with an operating budget, know how much capital investment you’re going to need, you can’t make hiring decisions if you can’t trust the state government is going to have some sort of fiscal solution in the short term and the long term.

“I like the idea that they’re putting a lot of things on the table. I think that’s a good idea. Obviously there’s going to be some compromise­s along the way and I’m watching as closely as everybody else.”

Cornett said he wants teacher pay raised to the regional average, and that he would give even more money to science, technology, engineerin­g and math — so-called STEM— instructor­s.

Cornett is hoping the state’s budget hole is filled before the next governor is sworn in next year.

“Just as an Oklahoman, I want to see some sort of concrete solution," he said. "I’d like to see the Legislatur­e get its act together and fix the problem that’s been created. As soon as possible.”

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