Governor Fallin and leaders in both the House and Senate today introduced a joint plan for income tax cuts and tax code simplification. The proposal lowers the top income tax rate from 5.25 percent to 4.8 percent in Fiscal Year 2013 and includes a one-time additional tax cut tied to a revenue growth trigger in FY 2015. If state revenue grows by at least 5 percent in that year, the income tax rate would be reduced further to 4.5 percent.
The joint proposal represents a tax cut of over $218 million to Oklahomans when fully implemented in FY 2014, and would cut taxes by an additional $121.4 million in FY 2015 should the growth trigger be reached. Lost revenue is partially offset by tax reforms totaling $117 million when fully implemented in FY 2014. These reforms include the elimination of 33 tax credits, the elimination of certain deductions and the elimination of the personal exemption for single filers making over $35,000 and joint filers making over $70,000.
The new plan also simplifies the tax code by dropping the total number of tax brackets from seven to three. New rates will be set at 1 percent, 3.3 percent and 4.8 percent.
“This proposal represents a significant income tax cut and an important step forward for Oklahoma,” Fallin said. “Our plan is a responsible proposal that will go hand in hand with a budget that protects and supports all core functions of government. It also delivers a substantial tax cut that will allow Oklahomans to keep more of their hard-earned money while improving the environment for job recruitment and job retention in the state. I applaud both House and Senate leaders for coming together on this issue and giving the people of Oklahoma some well-deserved tax relief.”
House Speaker Kris Steele also spoke in support of the plan.
“Collections through April of this year are now $350 million higher than originally expected,” said Steele. “Oklahoma is growing. We have a choice to either spend all that money on more government, or give it back to the hardworking people of Oklahoma. We choose the latter. An income tax cut is not only the smart thing to do for Oklahoma’s economy, it’s the right thing to do for our citizens.”
Senate Pro Tem Brian Bingman said the tax cut would help small business owners while protecting core government services.
“Today’s tentative agreement gives the people of Oklahoma a real and meaningful tax cut,” said Bingman. “Senate Republicans have always believed lowering the tax burden is an important part of creating jobs and economic freedom in Oklahoma. And today, we’ve taken an important step forward that shows the people of Oklahoma they can count on us to keep our word. This plan will help more of our private sector citizens and small business owners be the innovators, entrepreneurs, and drivers of our state economy—all while protecting important core government services like teaching in the classroom.”
Senator Sean Burrage
Senator Sean Burrage, D-Claremore, criticized the Senate Rules Committee today after it refused to consider Governor Fallin’s nomination of former Corporation Commissioner Jim Roth to serve on the State Election Board.
“Today the people of Oklahoma have been done a tremendous disservice. A dedicated, intelligent and proven public servant was denied the courtesy of an up or down vote on his nomination by our Governor to serve on the State Election Board. The reason given was that he was too partisan. It seems unbelievable that anyone would have the nerve to say that when at the very same meeting a current Vice Chairman of the 1st District of the Republican Party was given approval.
“Our statutes allow for members of the Election Board to be registered and even active in a political party. I find it hard to believe his political registration is the issue here. The fact is the Governor was able to look at the man’s experience and qualifications and make her decision based on that. It is a shame and Oklahoma’s loss that the Senate Rules Committee would not do the same.”
Americans For Prosperity/Oklahoma is in the third week of a telephone campaign to ecnourage legislators to support repeal of the income tax.
The robocalls feature former Republican Governor Frank Keating. The effort is cosponsored by the Oklahoma Policy Solutions (OCPA) group.
Stuart Jolly
Stuart Jolly, Oklahoma State Director of Americans For Prosperity, said the campaign is in its third week and likely will continue through next week.
Jolly said about 250,000 calls will be made in total.
A feature of the Keating calls is that those receiving the calls can simply press “1″ and be connected to the office of their legislator to encourage repeal.
Americans For Prosperity advocates against new taxes and for reductions or elimination of some taxes that now exist.
Rep. Mike Brown
In a partisan political age, a fundamental, ideological disagreement often dictates the terms of our debates. That disagreement concerns the proper size and scope of government; what government should do and what it should not do.
In Oklahoma in recent years, the debate has been mostly dominated by those who feel that the size and scope of the government, at both the state and federal levels, is too large, bloated by corruption and bureaucracy. On the contrary, Oklahoma agencies face further reductions as income tax cuts loom large on the horizon. The Republican agenda, despite the various inadequacies of state government, is to further cripple it. This agenda is wrong for Oklahomans.
Whether the discussion revolves around education, roads and bridges, the health of our state, or how we take care of our senior citizens, Oklahoma’s government lingers on the brink of a coma induced by massive budget cuts. Many politicians love to play a disingenuous rhetorical game by proclaiming that Oklahoma’s government is too large and incompetent one moment, then stating that the government is functioning “just fine” on the other, and therefore can tolerate further cuts.
One needs look no further than the state of Oklahoma’s public school system to see the evidence of the government’s starvation into inadequacy. Oklahoma’s schools ranked “far below average” in the 2011 Science and Engineering Readiness Index, which assesses schools’ aptitude in preparing students for careers that involve science and mathematics. According to the National Education Association, Oklahoma ranks 49th in the amount of dollars it spends per student. Class sizes in Oklahoma schools are swelling while education support staff is downsized and less dollars go to elective courses, textbooks and technology, and basic operational needs of the school.
Many of these failures, but not all, can be attributed to the policies of our egregiously unqualified Superintendent of Public Instruction, Janet Barresi. Last year, the Republican majority in the Legislature, followed by the Republican Governor, gave Barresi unprecedented powers over the State Board of Education. She used those powers to cut funding for reading sufficiency programs, professional development programs, and popular and effective programs such as Literacy First and the Street School in Tulsa that offered alternative classes and therapeutic counseling to students. In addition, she cut the stipend for National Board Certified teachers. Thankfully, through the efforts of many concerned legislators and outraged citizens, the stipend was provided for through a supplemental appropriation. Right now I am fighting to ensure that NBCT teachers keep their annual stipend in the years to come. However, we cannot expect the Republicans’ and Barresi’s battle against public education and teacher compensation to end there.
The school system is not the only program in which the effect of funding cuts is becoming more pronounced. Oklahoma ranks near the bottom in a number of important health indicators, such as number of deaths due to heart disease, yet this statistic remains ignored as Republican leadership has voiced no intentions to backfill the 20% cut in funding the Department of Health has sustained over the last three years. The Department of Corrections is constantly running at maximum capacity, and currently the ratio of inmates to officers is 160 to 1. Oklahoma continues to be counted as one of the worst states in the number of structurally deficient bridges. The “Child Maltreatment 2009 Report” states that Oklahoma has “the third worst rate in the nation…five times the acceptable national standard” for abused or neglected children under state care, yet we systematically underfund the needs of the Department of Human Services. As a result, DHS lacks the dollars necessary to employ more case workers in order to lessen unsustainable caseloads. However, as part of a settlement of a recent lawsuit, DHS was ordered to reduce its caseloads. The lawsuit alleged foster children were being abused and mistreated while in state’s custody, and is now requiring the hiring of more caseworkers to meet reasonable professional standards in order to reduce the number of deaths due to child abuse or neglect. Caseloads reported by DHS range from between 20 children and more than 30 children per worker, when accrediting body standards call for no more than 18 children per caseworker, or eight per caseworker in the case of special needs children. The settlement also created a three-person panel to oversee needed reforms. However, if we continue to starve DHS of resources, we will without a doubt face another lawsuit and worse, allow abuse or neglect to continue unchecked due to lack of appropriate and timely intervention.
With these issues in mind, I am reminded of Grover Norquist’s quip that he’s not in favor of abolishing the government, he merely wants to “shrink it down to the size where we can drown it in the bathtub.” Yet shrinking government even more than it’s already been trimmed is tantamount to turning our backs on our commitment to protect individuals. In Norquist’s world, and those who follow his ideology, we eliminate or severely constrain the Department of Education, the Department of Health, of Human Services, of public safety. Meanwhile, the state continues to give subsidies to big oil and gas companies, which effectively pay negative tax rates. You can see the results in their huge Tower of Babel in downtown Oklahoma City, but what price did rural school districts pay for that luxury? Are jobs for these companies important than jobs for rural schoolteachers? I urge lawmakers and citizens alike to set the bar higher, to aspire to make Oklahoma a better place for its people, rather than a state that inhibits its government to the disservice of all.
Governor’s Office
Governor Fallin today signed into law Senate Bill 1733, a measure that allows (licensed) Oklahoma citizens to openly carry firearms as of November 1st.
The bill permits those who are licensed, or already have been licensed, to carry a firearm under the Oklahoma Self Defense Act to openly carry a weapon or conceal it. It also allows property owners to openly carry a firearm on their property without a concealed carry permit for the purpose of self defense.
To receive a license under the Oklahoma Self Defense Act, applicants must take a firearms safety and training course and submit to a background check by the Oklahoma State Bureau of Investigation. Those convicted of felonies and certain misdemeanors may not receive a handgun license.
With Governor Fallin’s signature on SB 1733, Oklahoma becomes the 25th state with either “permissive open carry” laws (no permit required) or “licensed open carry” (permit required). Oklahoma now joins Utah, North Dakota, Minnesota, Iowa, Indiana, Tennessee, Georgia, Mississippi, New Jersey, Connecticut, Rhode Island, Hawaii and Massachusetts as a “licensed open carry” state.
“As a strong supporter of the Second Amendment and a gun owner myself, I’m happy to sign this bill into law and grant law-abiding citizens the ability to openly carry firearms,” Fallin said. “Senate Bill 1733 sends a strong message that Oklahoma values the rights of its citizens to defend themselves, their family and their property. It does so in a responsible way, by requiring those citizens who choose to ‘open carry’ to undergo both firearms training and a background check.”
Businesses may continue to prohibit firearms to be carried on their premises. SB 1733 prohibits carrying firearms on properties owned or leased by the city, state or federal government, at corrections facilities, in schools or college campuses, liquor stores and at sports arenas during sporting events.
The bill was sponsored by Senator Anthony Sykes and Representative Jeff Hickman.
“I want to thank Senator Sykes and Representative Hickman, as well as the entire Legislature, for their commitment to protecting the Second Amendment rights of Oklahomans,” Fallin said.
House Media Division
Oklahoma state representatives issued the following statements today, renewing a call for a public audit of the Emergency Medical Services Authority:
“Our constituents still have concerns and yet no public audit has been initiated which could begin to restore the confidence of taxpayers. A public audit is needed to learn if there are serious problems with how EMSA is conducting itself and, if it is conducting itself appropriately, to reassure taxpayers.” – State Rep. Seneca Scott, D-Tulsa
“An audit should take place in a timely manner which is both open and accessible to the public.” – State Rep. Eric Proctor, D-Tulsa
“I think a public audit is critical and I am disappointed that one is not already in the works.” – State Rep. Sean Roberts, R-Hominy
“If there is even a slight chance that taxpayers dollars have been misallocated we owe it to them to call for a complete and exhaustive audit.” – State Rep. Leslie Osborn, R-Mustang
“The public deserves to know where their tax dollars are going. An open audit will give transparency and allow openness to see where those dollars are going.” – State Rep. Josh Cockroft, R-Tecumseh
Other lawmakers expressing concern included state Reps. Glen Mulready, Richard Morrissette and Rebecca Hamilton.
The statewide public safety plan developed through Oklahoma’s Justice Reinvestment Initiative has been signed into law by Governor Fallin.
“Increasing public safety is a top priority of my administration and a primary function of state government. The reforms in HB 3052 will help to reduce crime and ensure our streets are safer for Oklahoma families,” Fallin said. “In addition to lowering crime rates, reducing the incarceration rate and giving law enforcement more resources to fight crime, this bill will help us to save taxpayer dollars by helping our corrections system operate in a more efficient and effective way.”
Criminal justice stakeholders from across the state stood in support Thursday as Fallin ceremoniously signed House Bill 3052. The bill, authored by House Speaker Kris Steele and Senate President Pro Tempore Brian Bingman, was formally signed Wednesday.
The Senate has sent two 2nd Amendment-related bills to Governor Fallin’s desk.
Senate Bill 1733, by Senator Anthony Sykes and Rep. Jeff Hickman, would allow citizens licensed to carry a firearm under the Oklahoma Self Defense Act to carry their sidearm openly or concealed. SB 1733 passed the Senate today.
Approved by the Senate on Wednesday, Senate Bill 1760, by Sen. Sykes and Speaker Designate Rep. T.W. Shannon, would prevent cities or state government from disarming citizens during a state of emergency.
“The Legislature has made it clear that Oklahomans will have the right to defend themselves,” said Sykes, R-Moore. “The right to self-defense is God given and inalienable, and we intend to do everything in our power to defend it. This legislation further guarantees this right will not be taken from Oklahomans who choose to protect themselves and their families.”
Another important 2ndAmendment measure, Senate Bill 875, has now been signed by the Governor. Authored by Sykes and Rep. Dennis Johnson, the bill limits the liability of owners, employees and customers from injuries that occur at gun ranges, gun shops and gun clubs.
Governor Fallin and leaders in both the House and Senate today introduced a joint plan for income tax cuts and tax code simplification. The proposal lowers the top income tax rate from 5.25 percent to 4.8 percent in Fiscal Year 2013 and includes a one-time additional tax cut tied to a revenue growth trigger in FY 2015. If state revenue grows by at least 5 percent in that year, the income tax rate would be reduced further to 4.5 percent.
