Time is running out and tensions are high when it comes to Oklahoma’s budget.
Gov. Mary Fallin this week criticized lawmakers for a lack of progress making up an $878 million shortfall, and she raised the possibility of vetoing their budget, effectively forcing a special session. Senate President Pro Tem Mike Schulz said that’s not in the cards.
"We will get our work done. We will get a budget passed. We will get it on the governor's desk, and it will go into effect," Schulz said.
But Schulz also said state agencies should prepare for the worst.
"And the worst is an 18 percent cut. Now, do I think an 18 percent cut's going to happen? No, but you prepare for the worst," Schulz said. "My farm at home, I'm getting ready to prepare how to make it on a $3.50 a bushel wheat crop. Would love to be talking about that at $4.50, but I've got to prepare for the worst."
Schulz said revenue measures must originate in the House, but the two chambers have been talking about them throughout the session. Schulz said cigarette and fuel tax increases aren’t dead yet, and lawmakers are looking at recapturing some off-the-top money currently going to a transportation fund and to counties.
One bill in the works is similar to a bill passed this week that decouples state income tax standard deduction amounts from federal ones. Schulz said with all the talk about federal tax reform, it may be the right time to decouple itemized deductions, too.
"Moving forward, the impact immediately to Oklahoma is $4 million to $5 million, but moving into the future, depending on what happens at the federal level, it could be a much greater impact," Schulz said.
Schulz said there isn’t enough support among lawmakers for a gross production tax increase.
