Showing posts with label HB 1054X. Show all posts
Showing posts with label HB 1054X. Show all posts

Thursday, November 16, 2017

OKGOP State Committee commends Republicans who voted against HB1054 tax hike


On Saturday, November 11th, the Oklahoma Republican Party State Committee passed the following resolution, commending 22 Oklahoma House Republicans who voted against the $454M tax hike measure HB1054X on November 8th.

Here is a copy the resolution that they passed, from the State Party:

Resolution Commending the Republican Minority Vote on HB 1054X

WHEREAS, Filling the Budget shortfalls without first auditing agencies’ performance and financial conditions covers up mismanagement and/or corruption, and avoids making the hard decisions on cutting inefficiencies that lead to cost savings;

WHEREAS, The prime example is the recently uncovered mismanagement and/or fraud at the Department of Health which would likely not have become known if this tax plan had already passed the House earlier in session;

WHEREAS, The Oklahoma Legislature should not increase tax burdens on Oklahomans while this lack of transparency in spending continues to exist in an undetermined number of the over 120 state agencies; and

WHEREAS, The Republican Party Platform is very clear that, “Revenues collected at all levels of government should be used only for well-defined, legitimate government functions, and should be carried out efficiently so that tax rates may be kept as low as possible”; therefore, be it

RESOLVED, The Oklahoma Republican Party State Committee hereby commends the fortitude of the 22 Republican Representatives: Kevin Calvey, Bobby Cleveland, Jeff Coody, Dale Derby, Tim Downing, Travis Dunlap, John Enns, George Faught, Tom Gann, Tommy Hardin, Mark McBride, Scott McEachin, Lewis Moore, Jason Murphey, Terry O’Donnell, Mike Ritze, Sean Roberts, Michael Rogers, Chuck Strohm, Tess Teague, Kevin West, and Rick West, who have put principle over politics, and held the line to not increase taxes again without a complete audit of all agencies; and

RESOLVED, The Oklahoma Republican Party State Committee encourages all legislators to proceed now with the leadership and courage to be accountable first to the people of Oklahoma, knowing that it is our tax dollars they are spending.

As a former State Committee member, I applaud the State Committee for this action. If the Republican Party doesn't stand for something, why does it exist?

Saturday, November 11, 2017

Faught: The truth about the current budget crisis


The truth about the current budget crisis

There are differing viewpoints on the answer to fixing our state budget woes, but the issue at hand is protecting and funding our core services. While I take my role as State Representative very seriously, I understand that I will never make everybody happy. I tell my constituents what my beliefs and core principles are when I am asking for their vote. Integrity demands that I am true to my word and every decision made as a legislator means that both the benefits and consequences of each measure presented must be weighed before making a decision. Believe me, there are no easy answers!

It is important to note that even if HB1054 had passed with the required 76 votes, the monies generated would not have been appropriated until March 1st, 2018. The immediate crisis facing DHS (specifically the Advantage Waver program) would not have been averted by passage of this bill. The good news is that in addition to available Rainy Day funds and recent revenue upturns, there is more than enough in numerous state revolving accounts that can be tapped to appropriate the necessary dollars to keep the core services provided to our citizens.

This Special Session should have dealt solely with the current deficit created when the State Supreme Court overturned the Cigarette “fee”, ruling it unconstitutional. Digging the financial hole twice as deep and compounding the problem with added spending in a time when sufficient funds are not there and when our state is slowly but surely emerging from a deep national recession is reckless and irresponsible. Raising taxes at this time actually threatens to stall or possibly even reverse the fragile economic recovery we have started to see. In a two- income family, if one wage earner loses their job, the family doesn’t decide to buy a new car and go further in debt – state government shouldn’t increase spending until we regain a sure financial footing. Recovery is occurring and we are seeing some very encouraging numbers as our revenues are gradually increasing, but unfortunately, it doesn’t happen overnight. Raising taxes should always be a last resort.

Oklahomans solidly rejected a tax increase 12 months ago when they voted down the Education Penny Sales Tax at the polls. They had the opportunity, but rejected a one cent permanent increase in sales tax even though it was targeted to Education. This wasn’t because they were not in support of our teachers, but because they felt they were taxed enough already. Had HB1054 passed, it would have been the largest tax increase in Oklahoma history.

Over the last few weeks, it has come to light that several state agencies have been lying to legislature and the people of Oklahoma about the monies they have been allocated. Millions of taxpayer dollars which come from hard-working Oklahoma families and small businesses have been squandered and misused. This is totally unacceptable. We should demand audits and oversight on agencies before they misspend another dime of taxpayer money. Continuing to appropriate funds to these agencies without accountability is a dereliction of our duty.

The House already has passed funding to get DHS and the Department of Mental Health and Substance Abuse Services through this current crisis. The Department of Health shortfall will be covered as well. Contrary to what people are hearing from the news, there IS money to address the issue at hand. We can “plug the hole” WITHOUT raising taxes. Agency heads are publicly threatening to make the most dramatic and harmful cuts to create a bigger crisis rather than doing what is necessary to avoid them. Fanning the flames of fear on our most vulnerable citizens in unconscionable and simply “government bullying.” An acceptable measure has been passed by the House which fills the budget hole. The Senate and Governor should stop grandstanding and address the issue at hand. Additional spending can be brought up at the appropriate time – during the next regular session.

In order to provide long-awaited pay raises for teachers and state employees, we need to have the funds to sustain those increases year after year. However, missing monies, illegal payments and irregularities in accounting must be addressed before simply passing a higher tax burden on to our citizens. As a side note, these pay raises would not have gone into effect until August of 2018 – another reason to address this issue in the next legislative session.

Rep. George Faught represents Oklahoma House District 14 covering Cherokee and Muskogee Counties. He can be reached at (405) 557-7310 or george.faught@okhouse.gov

Dahm comments on voting against tax increase bill


State Sen. Nathan Dahm (R-Broken Arrow) posted a column the other day explaining why he voted against HB 1035X (the bill I argued was unconstitutional), which had the same $455M tax-hike language as was placed into HB1035X (that failed to receive 3/4ths in the House). Here it is:

This week I voted no one of the largest tax increases in state history. Why? Because I don’t believe the answer to our state’s budget woes is raising taxes.

Where are the reforms?

Every program that is currently being used as a bargaining chip with claims that the program will be eliminated could be fully funded WITHOUT raising taxes if reforms were made.

The majority of the legislature seems willing to raise almost half a billion dollars in taxes on nearly every single Oklahoman without passing any reforms.

Why is it that they will raise taxes on the oil and gas industry which creates tens of thousands of jobs in our state while at the same time cutting checks for tens of millions of dollars to subsidize the wind industry (and their dozens of jobs) every year?

Why is it that the entire state is forced to subsidize the Amtrak between OKC and Dallas? Why can't people pay the full price of a ticket? Why do people in Tulsa or the panhandle or Enid have to pay for others to take a joy ride to go shopping and spend their money (sales-tax free on certain items!) in Texas?

Why is it that the taxpayers had to subsidize over $4,000,000 to line the pockets of sleaze-ball Harvey Weinstein with his movie that made Oklahomans look backwards?

Why is it that we have to pay sales tax on groceries and necessities but not to buy a newspaper or magazine to read the fake news?

Why is it that state agencies can use taxpayer funds to foment raising taxes to take even more money from the taxpayers?

The reason is because those select few have extra influence at the Capitol. If you go after the newspaper carve out, they'll smear you for trying to eliminate freedom of the press (and they'll endorse your future opponent). If you go after the wind credits, they'll fund your opponent (tens of millions of dollars goes a long way in campaign contributions). And on and on it goes.

So what’s the result? The state budget is balanced on the backs of average Oklahomans. Because the average joe doesn't have a huge force of lobbyists and government affairs directors canvassing the Capitol on their behalf. All they have is two people who are supposed to be fighting for them: their Representative and their Senator.

Our focus should not be on the next election, but on the next generation. Elected officials must remember the purpose for government as outlined in our Declaration of Independence: "that to secure these RIGHTS, governments are instituted among men, deriving their JUST powers from the consent of the governed."

Nathan Dahm represents District 33 in the Oklahoma State Senate, and is a candidate in the 1st Congressional District GOP primary.

Wednesday, November 08, 2017

Fallin threatens session til Christmas, will veto "draconian cuts"

In comments to the media after the failure of HB1054X (the $450M tax hike measure), Gov. Fallin said that she would veto any bills with "draconian cuts" to state agencies, and threatened to keep the Legislature in special session until Christmas if they don't bend to her wishes.

From Oklahoma Watch reporter Trevor Brown:



No word on exactly what counts as "draconian". With the funding measures already passed by the House, I believe the across-the-board cuts would be between 2% and 4% - hardly a catastrophic sum across the breadth of Oklahoma state government.

Senate Pro Tem says budget cuts will be more severe because of failed vote


Oklahoma Senate leader says budget cuts will be more severe because of failed vote

OKLAHOMA CITY - Oklahoma Senate President Pro Tempore Mike Schulz commented on the failed  revenue vote in the Oklahoma House:

“Because the Oklahoma House of Representatives did not advance the bipartisan revenue deal, teachers and state employees won’t get a much-needed pay raise and cuts to mental health and other services will be much more severe. The cuts will be deep and spread out across all government. This is not where any of us wanted to be, but we are here because the revenue bill failed in the House. The financial scandal at the Health Department is an unexpected and costly expense. If we spend everything we have now, there won’t be any money left for other emergencies that could arise. And spending even more one-time money now makes next year’s budget deficit - already forecast at $560 million - even larger. The Oklahoma Senate will work to minimize the impact of cuts on core services.”

Gov. Fallin comments on failure of tax-increase bill in House



Governor Mary Fallin Statement on the Failure of Bipartisan Budget Bill in House of Representatives

OKLAHOMA CITY – Governor Mary Fallin this evening released this statement after House Bill 1054X, a bipartisan budget bill, failed to win the required three-fourths passage in the Oklahoma House of Representatives to advance to the Senate:

“I’m extremely disappointed by the House of Representatives failing to pass House Bill 1054X, which would have addressed a $215 million shortfall in our current fiscal year budget and provided a teacher pay raise.  It is discouraging that some members have chosen politics over taking care of people by refusing to vote for this budget package and have shown they are not willing to move our state forward. As a result of their no votes, our state will not have enough funds for agencies to deliver services that work for people, especially with our state facing a $400 million shortfall next session. I appreciate Speaker Charles McCall for allowing members to vote. Representatives, both Republicans and Democrats, who stood tall and voted for this measure should be commended.

“As a result, worst-case scenarios could become reality for several agencies that are being forced to cut crucial services if the pending revote fails. It will be devastating for many who depend on these services. This budget package would have helped set us on a path to long-term sustainability and stability by making more recurring revenue available, helped us to stop balancing our budget irresponsibly with one-time funds, and provided a teacher pay raise as well as a raise for state employees, and tax relief for low-income Oklahomans.

“The House leadership captured the bill, which with 71 votes was within a razor-thin margin of passing. The speaker should put it back up for a vote, and I call upon Oklahomans to continue to contact their representative.

“We can’t set Oklahoma up for failure by not facing our budget problems and kicking the can down the road. We must restore hope, and set future generations of Oklahomans up for success.”

Former Gov. Nigh sends Fallin endorsement of budget agreement


Former Governor George Nigh Endorses Budget Agreement

OKLAHOMA CITY – Former Governor George Nigh today sent Governor Mary Fallin the following statement calling on lawmakers to come together and vote yes on House Bill 1054X:

“Oklahoma’s dedicated teachers and our state employees deserve a raise; most haven’t had one in over 10 years," said Nigh, who served as governor from 1979 to 1987 and briefly in 1963. “We need to act. I’m hopeful that legislators can set aside their political differences and pull together to support this bipartisan agreement that will ensure the well-being of our most vulnerable citizens and our most dedicated public servants.

“It's important for Oklahomans with family members who have serious health problems to know the state will be there to help them. House Bill 1054X isn’t the perfect solution, but it will appropriate the necessary funds to continue core state services that many of our friends and neighbors rely on.

“Today I’m calling on both Democrats and Republicans to be the ‘good guys’ and vote yes on House Bill 1054X.” 

Tuesday, November 07, 2017

House does reboot on $454M tax increase, floor vote tomorrow



Yesterday, the State Senate passed HB1035X in a manner that brought up constitutionality questions (I posted on that here). Rather than proceeding down a road that could result in another Supreme Court ruling it unconstitutional, the State House decided today to avoid those issues, and do a "reboot" of the measure.

Here's what Majority Floor Leader Jon Echols (R-OKC) said on Twitter:

From State Rep. Josh Cockroft (R-Tecumseh):
Yesterday the Oklahoma Senate heard HB1035 which had passed off the House Floor two weeks ago. This bill included a cigarette tax, a motor vehicle fuel tax, and an alcohol tax. They added language including a 4% Gross Production Tax on the Senate Floor and passed it 37-5. This essentially made it the same bill which I voted for in the Budget Committee last week(HB1054), but failed to gain enough support in that committee.

This is where it gets tricky: Questions of constitutionality were immediately raised since a revenue raising bill must start in the House. Because HB1035 passed from the House with 54 votes, but failed to gain the required 76 votes a revenue raising measure must have, constitutionally it wasn’t viewed as a revenue raising measure. Instead it would have gone to the ballot for the people to vote on. When the Senate changed the revenue raising language and voted it through with over the 75% required, it called into question the legality of advancing the bill any further.

Today during negotiations between the Governor, Senate, and House an agreement was reached not to hear HB1035 in the House. Instead, HB1054 with the exact same language as HB1035 as passed by the Senate, would be brought up again in the House budget committee and moved forward.


The language from HB1035X was placed into HB1054X (which deadlocked in a tie during committee vote on October 27th), and the Joint Committee on Appropriations passed the measure 19-6. The measure will now be taken up on the House floor tomorrow.

HB1054X is projected to bring in $455M in taxes annually, and $140M for the remainder of the current fiscal year:

  •  Cigarette tax increase: $243.5M annually
  • Mixed beverage tax on low-point beer: $14.5M annually
  • 6-cent increase on gasoline and diesel tax: $170.4M annually
  • GPT increase from 2% to 4% after 36 months: $13.4M annually
  • Miscellaneous tobacco taxes: $12.9M annually
  • TOTAL = $454,859,000 annually

Friday, October 27, 2017

Fallin comments on tax bill failing in House JCAB


Governor Mary Fallin Statement on House Committee Failure to Advance Budget Bill

OKLAHOMA CITY –  Governor Mary Fallin today issued the following statement after the House of Representatives Joint Committee on Appropriations and Budget (JCAB) failed to advance House Bill 1054x:

“I was hopeful that the Senate’s resolution would have provided a path for success. It met the elements of most of my special session call: providing a teacher and state employee pay raise; putting Oklahoma on a path to long-term stability by making more recurring revenue available; and reducing the use of one-time funds to balance our budget.

“I’m extremely disheartened by the inability of the House Joint Committee on Appropriations and Budget (JCAB) to advance House Bill 1054x. I believe Oklahomans lost today by the House committee’s inability to move this budget solution forward.

“It appears that as a result of the House JCAB’s failure to pass the budget bill,  we will have to prepare a budget that will include drastic across-the-board cuts for all state agencies to deal with the loss of revenue. The House JCAB’s inability to pass a meaningful revenue bill means our state will not have enough funds for agencies to deliver essential core services that work for our people. As a result, worst-case scenarios will become reality. Our state is at a fiscal crossroads, and it’s unfortunate that this House committee couldn’t get the job done and failed so miserably by keeping us on a road to failure.

“Oklahomans deserve better!”

House committee deadlocks in tie vote on GPT increase


Just a few minutes ago, the House Joint Committee on Appropriations deadlocked 11-11 on the new tax hike plan that included raising the Gross Production Tax on new wells to 4% for the first 36 months.

The measure, HB 1054X, would have raised an estimated $186M for the remainder of the current fiscal year and $455M for following years. Here is the roll call from the JCAB vote:
YEAS: 11 -- Caldwell (R), Casey (R), Cockroft (R), Dunnington (D), Echols (R), Ortega (R), L. Osborn (R), Ownbey (R), D. Roberts (R), Sears (R), Watson (R)

NAYS: 11 -- Calvey (R), Hall (R), Kouplen (D), Lepak (R), Loring (D), Murphey (R), O'Donnell (R), Pfeiffer (R), Proctor (D), Stone (D), Virgin (D)

The measure can be brought back up for another vote. Committee ch‎airman Kevin Wallace (R) did not cast what would have been a tie breaking vote. According to news reports, he opted against doing so, as the lack of Democratic support (1 for, 5 against) indicated that it would fail in a vote on the House floor.