No proposed tax cut agreed upon during Thursday’s budget talks
OKLAHOMA CITY (KFOR) — As fast as possible is what seemed to be the only thing agreed upon in terms of money during Thursday’s budget meeting between state legislators.
The total earmarked was $45 million after Monday’s discussion between legislators but Thursday Governor Stitt and others agreed on using $30 million already set aside from last years storms as well.
“I think this is a good thing, we’re agreeing on something,” said Governor Kevin Stitt during the talk.
Thursday’s discussion was the second held in just one week between the governor, House Speaker Charles McCall, and Senate Pro Tem Greg Treat.
They have until 5 p.m. May 31st to decide on a finalized budget.
“I know we will be able to get it done on that third Friday in May,” said legislators. “We will do our constitutional duty and get it done.”
However, the big ticket item that was brought up by the House and by Governor Stitt was their tax cut plan. Thursday was not the day that anything around a potential income tax cut would be agreed upon.
“We’re not doing another tax cut right now unless they can show us that we can afford it on a recurring revenue,” said Senate Pro Tem Greg Treat before the budget meeting.
Treat has said many times before that they will not agree upon something before the revenue is understood and agreed upon.
Stitt changed things up only slightly by proposing that instead of cutting income taxes by 0.25%, he’d like to have a flat tax bracket in an attempt to eliminate income taxes for the poorest Oklahomans.
“We’re talking about those under that $27,000 or so area,” said Stitt.
Members of the House stated that there is plenty of wiggle room for money to provide if the tax cuts did happen. Pro Tem Treat argued that what they have seen so far doesn’t necessarily seem like it but that he and the Senate wanted to finalize the revenue before officially approving any proposed tax cut.
“We worked it out and agreed on the grocery tax cut,” said Treat.
The conversation during the over four hour long meeting was disrupted several times by the idea of the proposal, Treat continued trying to get it back on track but it was never settled.
“You don’t build a budget based on bonuses,” said Treat. “You get your money that you left over in a sock drawer. You have to have real reoccuring incomne to be able to make recurring budget decisions. You don’t go out and make a major purchase or investment without knowing you can pay for it in the long term. So, that’s in simplest terms, that’s why we worry.”
The one thing that the group did seem to agree upon was money needed fast for victims of the storms. They discussed $30 million that had already been set aside from last years disastrous storms and it’s recovery.
The $45 million that was agreed upon Monday was discussed to be fast tracked by next week, with the hopes that victims and emergency management could get it quick.
“I think that I’m not much of a blank check type of guy, but whatever he tells us they need, we will answer that call,” said Treat. “If we have this tornado that impacted Bartlesville and Barnsdall and Northeastern Oklahoma this week, and have a new number, we will be ready to answer that.”
Monday they are expected to meet yet again with the emergency management funds expected to be the main topic.
The next fiscal year for Oklahoma’s budget begins at the start of July.
There is still many line items to be discussed before they could finalize the budget. There are also still other potential hurdles that the state can see whenever it is crunch time at the end of this legislative session.
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