Rep. Mike Christian, R-OKC, was the only Oklahoma City legislator to vote in favor of the measure.

Pay raises for correctional officers, state troopers, and state employees should come before last-ditch efforts to fund with sales tax dollars the American Indian Cultural Center and Museum and the Oklahoma Museum of Popular Culture, House Democrats said Monday.

“While our caucus supports the completion of the two museums, we do not support the introduction of these efforts in the last week of session,” said Democratic Leader Scott Inman, D-Del City. “This scheme to pay for the museums is particularly troubling after Republicans insisted all spring that there is no available dollars, anywhere, to provide salary increases to critical employees who have not seen their pay increase in seven years.”

Leader Inman went on to say that House Democrats will support funding the museums, if, and only if, the legislature does the right thing and this year funds a bonus or pay increase to Department of Corrections employees, state employees and state troopers.

House Media Division

The Legislature’s most vocal opponent of wasteful tax credits says that some legislators are again trying to pass last minute “stealth” tax credits and incentives during the final days of the 2013 session.

“Once again a bunch of very questionable tax credits are emerging from the cracks in the walls of our crumbling State Capitol,” said Rep. David Dank, R-Oklahoma City. “There are stealth efforts underway to give away hundreds of millions of dollars at the end of a session when we told our state troopers and prison guards we had no money to pay them a decent salary.”

Dank said he has uncovered efforts to insert new or renewed tax credits into last-minute legislation. Among the proposals:

n      The current wind-energy tax credit would be extended for an additional five years from its scheduled sunset date in 2016 until 2021.

n      The current coal-tax credit would be extended for seven years, since it is now scheduled to sunset in 2014 and would also be extended until 2021.

n      Both would be converted from transferable tax credits to “refundable” ones that would allow holders of those tax credits to simply cash them in at a 15-percent discount. They would be issued checks from the state treasury.

n      A tax credit for the construction of “affordable” housing sought by a Missouri developer has been revived after it failed to win legislative approval early in the session.

n      A sales tax exemption has been proposed for an upcoming Senior PGA tournament in Edmond.

“The wind-tax credit alone, along with all the other special breaks and credits that industry receives, could amount to an additional $200 million or more over the next several years by extending the sunset date” Dank said. “Worst of all, none of these tax credits will carry any restrictions or limitations. And I have been told that the transferable measure went to conference to insert language that exempts the recipients from taxation on their refunds. It’s a double free ride on the backs of the taxpayers. Maybe we should just give them unmarked hundred dollar bills and cut out the middleman.”

Dank said the House voted unanimously earlier in the session to support his bill that would set mandatory criteria for all tax credits, including auditing, pre-approval, sunsets, strict reporting, caps and a requirement that any tax credit creates actual jobs.

“We said that any new or renewed tax credit must meet those criteria, but no effort has been made to see if these do,” he said. “Did they mean it when they voted for those criteria a few weeks ago, or was that all just a scam to fool the taxpayers.”

Dank said the wind tax credits, among the most costly issued by state government, benefit some companies that are selling the power they generate to other states.

“The Oklahoma taxpayers are being asked to subsidize electric customers in Tennessee and Alabama,” he said. “That is wasteful and preposterous. Even more preposterous are the claims that the discounts will save taxpayer dollars when any savings will be far out weighted by the sunset extensions of seven and five years.”

Dank said the golf-tournament tax exemption is especially troubling, since it benefits an event that is already scheduled.

“Now we are being asked to give a sales-tax exemption for an event for wealthy senior golfers from out of state when we cannot pass a sales tax exemption on hearing aids for senior Oklahomans,” he said.

Dank vowed to fight the tax credit measures on the floor and will urge Gov. Mary Fallin to veto any tax credit that is passed in the waning hours of the session or does not meet the criteria endorsed by the House earlier in the session.

“I call on the governor to send a message that the days of last-minute giveaways at the state Capitol are over,” he said.

David, who chairs the Senate Appropriations Subcommittee on Health and Human Services, said the plan is expected to be signed out of a Senate conference committee on Monday.  However, before the language can be heard by the full Senate, House conferees must also approve the legislation. Identical language has been placed in two measures, Senate Bill 254 and Senate Bill 700, using $50 million from state tobacco taxes to prevent Insure Oklahoma from shutting down at the end of 2013.

“Insure Oklahoma has given 30,000 low-income Oklahomans insurance coverage, but the federal government said it cannot continue to receive federal dollars unless we change the program,” said David, R-Porter.  “Making it completely funded with state tobacco tax dollars means it will continue to be an Oklahoma health care solution with no strings attached, protecting us from additional federal mandates and rising costs that we simply cannot afford.”

Gov. Mary Fallin issued a statement on Friday that said unless lawmakers acted before the end of this session to continue Insure Oklahoma as a state-funded program, 9,000 low income Oklahomans would be stripped of their health insurance.

“We’ve worked closely with Governor Fallin on this legislation and I believe we’ll see it signed out by our Senate conferees on Monday morning.  Nine thousand hard working Oklahomans stand to lose their access to health care if we fail to get this legislation to her desk.  But with the support of our colleagues in the House, we can make sure that doesn’t happen.”

            “Hunting is one of Oklahoma’s greatest tourist attractions and pastimes so it’s important that ensure people respect nature and aren’t just killing for sport but rather for meat or furs,” said Brecheen, R-Coalgate.  “Killing deer only for sport is already against the law but this bill will increase the penalty and hopefully stop this type of wasteful behavior.  This kind of hunting harms the deer populations, the sport and the landowners who lease their land for hunting.”

            The bill, which was supported by the Oklahoma Department of Wildlife and the Department of Wildlife Conservation, increases the minimum fine from $100 to $500 for capturing, killing, mutilating or destroying wildlife, except furbearers and coyotes, with the intent to abandon the body without disposing of it in an appropriate manner. 

            “Most hunters hate this kind of wasteful behavior because it hurts the genetics for big bucks and simply goes against the true spirit of hunting, which is for food, not just to kill animals,” said Brecheen.  “We must be good stewards of God’s creation and that means only taking what we need and no more.”

            In addition, any hunting or fishing license will be revoked upon conviction for one to ten years. If the court does not set a period, revocation will be for one year.

            Rep. Charles McCall served as the principal House author for the measure.

            “Wasteful hunting is detrimental to deer populations and it’s important that we increase the penalties in order to deter this destructive behavior,” said McCall, R-Atoka.  “This growing problem could actually hurt local economies and the law-abiding businesses involved in recreational hunting.  I’m grateful for my colleagues and the governor’s support.”

The bill, which was signed Tuesday by Gov. Fallin, will become law on November 1, 2013.

Optometrist Jon E. Painter announced today that he will be a candidate for the House District 91 seat. A lifelong conservative Republican, Painter will seek his party’s nomination in 2014. Incumbent Mike Reynolds will leave the legislature due to term limits next year.

Painter, a lifelong resident of Moore and south Oklahoma City, said he understands what it takes to be an effective leader in the state legislature. “My background in small business coupled with many years of church and community involvement gives me the necessary experience and political skills to be an effective conservative voice for the people of House District 91. I bring to the table a career of service, and a reputation of trust and results. In my eye care business and as a school board member, I believe I understand how to relate to people and to address problems that matter to them. I shoot straight and am accountable to those that put their trust and faith in me,” Painter said.

“I have only one objective in seeking this office and that is to be a citizen legislator who will represent the people of District 91 with honesty and integrity. I have always tried to make a positive difference in every area of involvement in my life.” Painter said. “My votes will be cast based on what is best for the people of my district and not based on political influence or pressure from powerful special interests,” he added

“I want to be a part of the Republican majority in the House and help continue to rightsize state government, promote economic development, create more jobs, lower the tax burden on our citizens, and support and strengthen our local schools. I am 100% pro-life and a strong advocate of Second Amendment rights,” Painter said.

Painter has owned and operated his eye care practice for the past 20 years. He has been active in numerous community activities over the years including serving on the board of the Moore Free Medical Clinic and volunteering for Infancy See. He is a member of both the Moore and South Oklahoma City Chambers of Commerce. He has been a member of the Oklahoma Optometric Association for 25 years. Painter is a Life Member of the NRA.

Total GRF collections for the first 10 months of the fiscal year are $4.6 billion, which is $40 million or about 1 percent above total collections for the same period a year ago, and $50.7 million or 1.1 percent higher than the official estimate upon which the Fiscal Year 2013 state budget is based.

“The economy is kicking and revenues are right on pace,” Doerflinger said. “Oklahoma’s economy has shown real resilience in its ability to withstand challenges like federal defense and aerospace sector cutbacks and continued natural gas revenue losses. It instills confidence to have a steadfast economy like ours in times like these.”

Compared to the same month last year, net income tax collections to the GRF were up by nearly 20 percent, with individual income tax collections up 14 percent and corporate income tax collections up 50 percent following a 40 percent increase in March. Year-to-date income tax collections are $2.1 billion, or 13.5 percent above projections.

“When Oklahoma citizens and companies do well, so do state revenues,” Doerflinger said. “Last month’s income tax aberration was just that, as we said, and shows why we always emphasize that income taxes can fluctuate greatly from month-to-month. The big picture shows this year’s income tax revenues are trending higher than anticipated.”

In addition to general growth, April’s income tax collection increase was also spurred by the Oklahoma Tax Commission reporting that it received several large payments from individuals who filed for extensions in 2012, driving collections up for the month.

With a 5 percent unemployment rate that is 2.6 percent lower than the national rate and lowest of any of its six bordering states, Gov. Mary Fallin said Oklahoma is poised for more growth.

“Pro-growth public policy pays dividends to the public and private sectors alike,” Fallin said. “Oklahoma is already doing well economically, and we’re on the cusp of doing better. Our ability to retain and attract new businesses was strengthened even more this legislative session through income tax reductions, investments in education and long-needed reform of our workers’ compensation system. We’re in a fantastic position to expand on the economic success we’ve seen these past few years.”

The balance in the state’s constitutional Rainy Day Fund is $577.5 million, a near record, after totaling just $2 when Fallin took office in January 2011.

“Another good indicator of the state’s solid financial position is that it’s looking more likely each day that the Rainy Day Fund will soon surpass $600 million for the first time ever,” Doerflinger said.

Sales tax and motor vehicle tax collections decreased in April by 3.4 percent and 12.9 percent, respectively, compared to prior year collections. The Tax Commission reported that the sales tax revenue reduction is partly tied to companies receiving higher than usual refunds that are linked to various sales tax exemptions.

“Declines in these areas are likely also influenced by our thousands of federal employees who are understandably holding back on spending in light of the federal budget uncertainty caused by sequestration. The sequester is a slow drip that we’re continuing to monitor closely,” Doerflinger said.

Doerflinger is director of the Office of Management and Enterprise Services, which issues the monthly GRF reports. The GRF is the state’s main operating fund and is made up of about 70 revenue sources. It is where all state taxes and fees flow, except those dedicated or earmarked to specific programs.

Major tax categories in April contributed the following amounts to the General Revenue Fund:

• Income taxes – The total collected from individual and corporate income taxes in the month of April was $427.6 million, which was $70.6 million or 19.8 percent more than prior year collections and $56.2 million or 15.1 percent above the estimate.
  
  Individual income tax receipts of $346.5 million were $43.5 million or 14.4 percent more than the prior year and $26.6 million or 8.3 percent above the estimate.
  
  Corporate tax collections in April contributed $81.1 million to the GRF, which was $27 million or 50 percent above collections for the same month of 2012 and $29.6 million or 57.5 percent above the estimate.
• Sales tax – The Tax Commission apportioned $153.3 million in sales tax collections to the GRF from April collections, which was $5.3 million or 3.4 percent less than the prior year and $15 million or 8.9 percent below the estimate.
• Gross production tax – Gross production tax collections from April contributed $34.5 million to the GRF after rebates. This amount is $19.6 and 131 percent above April collections from 2012 and $8.7 million or 20.2 percent below the estimate.
  
  Collections from natural gas accounted for $8.3 million, which was $6.6 million or 44.5 percent below prior year collections and $0.2 million or 2 percent below the estimate.
  
  Collections from gross production oil taxes contributed $26.2 million to the General Revenue Fund. No oil collections were deposited into the GRF in April of 2012. The oil tax contributions were $8.6 million or 24.6 percent below the estimate.
• Motor vehicle taxes – Motor vehicle taxes produced $16.9 million from April collections, which was $2.5 million or 12.9 percent less than the prior year and $2.8 million or 14.2 percent below the estimate.
• Other revenue – Other revenue produced $68.7 million for the GRF in April. This amount was $7.7 million or 12.6 percent more than the prior year and $5 million or 7.8 percent above the estimate.

Senate Democratic Leader, Sean Burrage, Claremore: “This budget bill is just another example of our legislature lacking the political courage to tell Oklahomans exactly how and where we are spending their money.

“Last week, we passed a politically motivated tax cut while, at the same time, hiking fees on hard working Oklahomans. Today, we handed over $30 million to the State Buildings Revolving Fund with no plans for how that money will be spent. In addition, we shortsightedly took bond issues off the table because it’s not the ‘fiscally conservative’ thing to do, despite it being the perfect economic climate to take on that kind of debt.

“Furthermore, we are sinking $7 million into renovating offices in the same Capitol building we’re desperately trying to find the funds to repair and restore. We talk a good game about the Capitol being the ‘people’s house’ and us just being residents in their home. I guarantee you no homeowner would spend money renovating the bathroom in their house if a complete overhaul was truly in the works.”

Assistant Democratic Leader, John Sparks, Norman: “Today, we allocated an additional $13 million to the OSU Medical School in Tulsa. This is in addition to the other state money regularly provided to the program through the Regents for Higher Education. This is at least the third time such a special expenditure has been requested and granted. Each time, it has been approved with the understanding that it would be the last bailout needed. And each time, they are approved because the program purports to provide doctors for rural Oklahoma.

“However, these physicians graduate with $200,000 to $225,000 in debt. This is two to three times the amount of debt accrued by students at medical schools in the surrounding states. With that much debt, these physicians are practically forced to find work in high-revenue practices so they can repay their loans.

“If our goal is to get doctors into rural Oklahoma, we could take the $13 million from this line item and agree to pay off the loans of medical school graduates if they provided healthcare in rural Oklahoma. For example, with $13 million we could go to Baylor Medical School in Dallas and recruit 140 physicians who could be deployed, debt-free, to rural and underserved areas of Oklahoma. The numbers are comparable for many of the medical schools in Arkansas, Missouri and Kansas.

“These doctors would have no student loan debt pushing them away from lower-paying practices in underserved areas. The current scenario is not resulting in a good return on the investment of taxpayer dollars.”