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Oklahoma Republican, Democratic Leaders See Budget Differently

Matt Trotter
/
KWGS

Oklahoma lawmakers agree the $6.9 billion budget they passed isn't perfect.

Senate President Pro Tem Mike Schulz and Minority Leader John Sparks, however, disagree on how well it addresses the state's recurring deficits.

"We made some very difficult decisions as a caucus, as a body, as a chamber, to make votes that would bring revenue to the state that would be ongoing," Schulz said.

"We've got a $1 billion deficit in the state, and one of the answers was to double the fee for Coke machines," Sparks said. "If that's a really good idea, I'm not sure what the bad ones are."

The budget and several revenue bills to fund part of it await the governor's signature. There are still concerns about those revenue bills, passed to make up an $878 million shortfall.

Sparks said he's particularly worried about Senate Bill 845, which puts a $1.50 fee on a pack of cigarettes in order to raise more than $250 million.

"The money is not used for regulation. It's used for general government activities," Sparks said. "It fits the definition of a tax ... and even if it doesn't, it was a revenue raiser in the last five days. There's no way it survives a constitutional challenge."

Tax proposals need three-fourths supermajorities to pass. SB845 got just 51 House votes.

Some revenue ideas fell to the wayside during the legislative session.

A gross production tax increase on some horizontal wells will bring in $95 million next year. House Bill 2429 hikes the rate during a four-year incentive period from 1 percent to 4. Senate Appropriations Chair Kim David said they wanted a bigger increase.

"The Senate's proposal was to take them to 7 [percent], 1 to 7," David said. "We could not get an agreement between all three, you know, between the House and the governor's office and the Senate."

David believes HB2429 would survive legal challenges because it modified an existing tax rebate.

Matt Trotter joined KWGS as a reporter in 2013. Before coming to Public Radio Tulsa, he was the investigative producer at KJRH. His freelance work has appeared in the Los Angeles Times and on MSNBC and CNN.