OKLAHOMA CITY – Oklahoma lawmakers on Thursday reaffirmed their priorities for this Congress, including tax policy and education.
The feasibility of tax cuts and the possibility of eliminating the state share of grocery taxes dominated the discussion among lawmakers and attendees at the Oklahoma Press Association's 2024 Legislative Summit held Thursday afternoon at the Capitol. occupied.
The House passed a 0.25% tax cut late last month, responding to Gov. Kevin Stitt's call for a second special session on the issue since the end of the 2023 session. Senate leadership has chosen to postpone consideration of the tax cuts until the Committee of Balance meets on February 15 to approve spending in the fiscal year 2025 budget.
House Speaker Charles McCaul (R-Atoka) said Thursday the state has more than $4 billion in reserves, half of which could be appropriated at any time. He plans to meet weekly with Sen. Pro Tem Greg Treat (R-Oklahoma City) to discuss the issue.
Despite the Oklahoma Turnpike Authority, the Higher Education Authority and other state agencies citing billions of dollars in deferred maintenance needs, McCall said tax breaks are still possible.
“When you cut that money, it doesn't go away. It stays in the hands of the people who normally pay the money to the state,” McCall said.
This tax cut would reduce revenue by $96.4 million in fiscal year 2025, with more than $250 million fully realized in fiscal year 2026. McCall said history has shown that the money Oklahomans save from tax cuts is recycled back into the economy, generating sales taxes.
“Those dollars are not lost,” McCall said. “Just a few years ago, our income was reduced by 0.25% in corporate taxes and reduced by 2%, and today our income is ($500 million) higher than it was then.”
McCall believes tax cuts are valuable and necessary, arguing that these efforts are the only mechanism the country has to help people fight inflation.
Democratic House Minority Leader Cindy Munson (D-Oklahoma City) said her caucus believes the 0.25% tax cut would be detrimental to the state budget and would not benefit the average working Oklahoman who makes $40,000 to $50,000 a year. He said he thought so.
“When I entered Congress, we were struggling with a deficit. It was as large as ($500 million),” Munson said. “If we provide any relief or reductions to Oklahomans, we have to be very careful to protect the revenue coming into Oklahoma.”
Treat said last year, lawmakers thought it would be $611 more than when the Board of Equalization finalized the 2024 numbers. He expects a “great conversation” next weekend.
Mr. Treat spoke of his desire to provide relief by eliminating the grocery tax. He authored Senate Bill 1283, which would eliminate the state's share of the grocery tax. According to Census data, the average Oklahoma household spends $279.16 per trip to the grocery store, placing the state in the top 10 most expensive states in the country for groceries. Masu. Treat's office estimates that eliminating the grocery tax would save the average Oklahoman 5.5 times more than a 0.25% income tax cut. Mr Treat said the savings equated to about $700 a year.
“That is Greg Treat's position, not the position of the Oklahoma Senate Republican Caucus or the Oklahoma State Senate,” Treat said.
Manson emphasizes public school funding and healthcare freedom
According to the Oklahoma Parent Legislative Action Committee, more than 90% of students in the state attend public schools. Munson said funding for these should be a higher priority.
“I think the workforce is a big topic for all of us on both sides of the aisle in the Rotunda. So for us, it’s important to grow a diverse, highly skilled workforce, and that obviously means common education. It means investing in higher education and career tech, and creating opportunities for people who have been left behind or forgotten in the workforce,” Munson said.
Munson said it's important that all Oklahomans have access to the medical services they need, alluding to the continued shortage of doctors, especially in rural areas. In 2010, Sam Blackstock, vice president of the Oklahoma Academy of Family Physicians, said 59 of the state's 77 counties did not meet the national standard of one doctor per 3,500 people. By 2023, 66 counties will no longer meet that standard.
Munson said keeping doctors in Oklahoma and being able to recruit doctors to come to Oklahoma is high on the caucus' list of priorities.
Sen. Kevin Matthews, D-Tulsa, also spoke about his caucus' shared desire to increase access to quality, affordable health care. He said people in his predominantly African-American district live 11 to 13 years less than people in other ZIP codes because of a lack of access to health care.
“We're starting to work on that now. As I leave the Senate, I'm working on that. One of them is substance abuse and mental health care, which is very important,” Matthews said. Told. “I think both Democrats and Republicans recognize that it’s extremely important.”
