Senator Micheal Bergstrom is proposing companion bills which would cap zero emission tax credits and then fund teacher pay raises over the next three years.
“Teachers need a pay raise in Oklahoma,” said Bergstrom. “At the same time we have another massive revenue shortfall, which will make funding a pay increase difficult, so I authored legislation to cap the payouts on our wind tax credits and my hope is to use some of the money we save to begin funding that pay raise. The two bills I have submitted would be a good step in the right direction.”
Senate Bill 95 puts a $25 million tax credit cap on the program used mostly by wind farms. According to Bergstrom’s figures, there were claims totaling $113 million in 2014. Only $59.7 million was paid out.
“We have good reasons to not only cap the wind credits program payouts, but to close this program. In fact, the Incentive Evaluation Commission has recommended doing just that,” said Bergstrom, R- Adair. “Our program for encouraging the generation of electricity through wind has been successful; however, especially considering the difficult situation we find the state in, with an $868 million revenue shortfall, we can no longer afford these overly generous tax credits.”
The savings would fund Senate Bill 97 which phases in a three year, $5,000 raise for teachers. For SB 97 to take effect, SB 95 must pass into law.
“Unfortunately, the limit on wind credit payouts is not enough to fund a $5,000 teacher salary increase in a single year,” said Bergstrom. “Keeping that in mind, I have structured Senate Bill 97 so that teachers will receive a $1,000 raise the first year, and $2,000 in each of the next two years. By passing these bills, even in a difficult budget year, we are demonstrating to the public and to our teachers that Oklahoma is serious about education and taking care of those who teach our children.”
Bergstrom’s proposals add to a growing number of ideas to get more money to teachers.
The wind industry actually provides millions of dollars annually to rural schools through ad valorem taxes which many districts have used to construct new buildings, upgrade technology, fine arts and athletic programs, and to provide salary increases to teachers. It is a fact.
Would this Ad Valorem Tax only be contributing within the local communities where wind industry currently contributes?