A budget deal announced Monday by Oklahoma’s Republican leaders fell short Wednesday on its House vote.
The final vote on the package of tax increases on tobacco products, fuel and low-point beer was 54–44, leaving it short of the three-fourths majority needed.
Several Democrats asked to add gross production tax increases to House Bill 1035 on the floor of the House. Rep. Emily Virgin’s request for a 5 percent gross production tax was rejected by 66 of the House’s 72 Republicans, and the other six didn’t vote.
"And what that tells me is that you're not making a genuine offer to raise the gross production tax to five percent," Virgin said.
Republican leaders told Democrats if they voted for the package, the House would have a floor vote on a separate measure for a 5 percent gross production tax.
Requests to amend the bill to include a 4 percent gross production tax and to reverse income tax cuts for high earners were rejected by similar margins. Democrats also said a 4.5 percent gross production tax could be added to the bill, but a proposal to send HB1035 back to committee made during debate was rebuffed for violating House rules.
All but one House Democrat voted against the bill — Minority Leader Scott Inman did not vote — but 17 Republicans joined them in rejecting the budget deal. Rep. John Bennett said Oklahomans set a high bar requiring three-fourths majorities for lawmakers to raise taxes.
"It's never been attained, and it never will. And that's by design," Bennett said. "It should go to a vote of the people. It's their money. They should make the decision."
It’s not clear what lawmakers will do now. Rep. Kevin Wallace, chair of the Appropriations and Budget Committee, told members there isn’t another plan.
"Those of you who are holding out, thinking there's a better bill coming, there's not. This is the absolute best bill put together with the highest probability of getting over that hurdle of 75 percent, 76 votes," Wallace said.
Proceedings got tense. Speaker Charles McCall and Rep. Cory Williams held dueling press conferences outside the House chamber while the vote was being held open so Republican leaders could try to come up with 76.
"I'm hopeful this passes, and then we'll talk about that," McCall said.
"You're delusional if this passes," Williams said.
"You guys need to support this. This is b******t," McCall said.
"Well, I'm glad you think so. So does most of Oklahoma," Williams said.
HB1035 was expected to bring in $184 million this year, which Republican leaders said — combined with agency revolving funds and one-time cash — would fill the $215 million budget hole left when the cigarette tax was struck down, give teachers a $3,000 raise and give most state employees a $1,000 raise.
