The Oklahoma House narrowly missed the three-fourths majority needed for a revenue bill to fill the state’s $215 million budget hole.
With 76 votes needed to send the measure to the governor, the final vote was 71–27. "Yes" votes came from 48 Republicans and 23 Democrats. "No" votes came from 22 Republicans and five Democrats.
House Bill 1054 is comprised of cigarette, tobacco, fuel and low-point beer tax hikes — and, since Monday, a gross production tax increase added by the Senate. Many saw it as the grand bargain that has eluded lawmakers through nearly six weeks of special session.
The measure was expected to bring in $140 million this year and $455 million next year.
Rep. Earl Sears said no one wants to raise taxes, but Oklahoma can’t keep relying on one-time spending.
"Literally, in February, we'll be right back to where we are right now, talking about trying to come up with income and revenues to fund our state programs, a teacher pay raise, etcetera, etcetera," Sears said.
The package of tax increases would lessen looming cuts made necessary by the shortfall caused by the Oklahoma Supreme Court striking down a cigarette tax passed during the last five days of regular session without a three-fourths majority. Agency heads have proposed eliminating state outpatient mental health treatment and programs to help seniors stay in their homes.
Democrats who voted against HB1054 said it's a package of regressive taxes. Rep. Meloyde Blancett was among several Democrats who voted yes in order to alleviate health and social service cuts.
"But this is the stinkiest package that I can see, and I think all of you should be ashamed," Blancett said. "The only reason I'm voting for this is because I feel like you have your foot on the throat of our most vulnerable citizens."
Several Republicans were against the bill, saying they oppose further spending without auditing all state agencies. Rep. Bobby Cleveland says he’s a “no” on any tax increase until all waste, fraud and abuse in state government is weeded out.
"Consequently, all agency heads should cease scare tactics and utilize their skills, resources and priorities [sic] available funding in providing essential services to those most needed. They need to stop the blackmail," Cleveland said.
HB1054 would have also funded teacher and state employee raises, and restored the Earned Income Tax Credit.
