Tax cuts, tribal relations issues could dominate upcoming 2024 legislative session

Maybe the fourth time will be a charm.

With the second session of the 59^th Oklahoma Legislature set to begin on Monday, the 149-member Oklahoma Legislature will, once again, return to the state Capitol building.

And for the fourth time in two years, lawmakers will be asked to cut taxes in Oklahoma. In addition, the Legislature will have to address issues related to tribal relations, possible changes to the criminal justice system and review the idea of creating a new economic development agency before the session ends in May.

And then there are those tax cuts.

Last spring, Gov. Kevin Stitt called for reductions in the income and grocery tax during his State of the State address. The governor repeated that message when he called the Legislature into a special session in September and got nowhere.

The special session he called last week for a cut in the state income tax sputtered off to an uneven start. The House voted to approve the reduction the governor was seeking, but the Senate did not go along, saying it was too soon to know if the state could afford the cut.

Stitt is expected to renew his call for tax cuts during his State of the State address on Monday, and though the governor’s message is clear, reducing taxes isn’t as easy as it sounds.

“In my five years as governor, we’ve developed this huge savings account, and I’ve tried to hold down spending,” Stitt said in an interview with The Oklahoman. “I just believe that we have to be the most business-friendly state and keep the momentum going. We can absolutely afford it right now.”

Stitt is continuing to call for a .25% reduction in the personal income tax. Last year, the governor also called on lawmakers to reduce the state’s portion of the grocery sales tax — a cut of about 4.5%.

The governor’s push to cut taxes has received a positive reception from House Speaker Charles McCall, but in the Oklahoma Senate, the pro tempore is not amused.

“The Senate will adhere to the call of the special session, as we have always done to respect and uphold our constitutional duty,” said the Senate’s leader, Greg Treat, R-Oklahoma City. “However, I do not know what will be different between the last week in January and the last time he pulled this stunt in October.”

Along with a reluctant Senate, the governor faces a large helping of election year politics.

Still, taxes won’t be the only issue in 2024. The state’s relationship with tribal nations and their leaders is sure to be part of the discussion this year.

After rocky year of tribal relations, lawmakers and Gov. Stitt could address tribal tags, compacts

Last fall, tribal leaders were furious after reports surfaced that the Oklahoma Highway Patrol had issued tickets to at least two drivers whose cars carried tribal tags.

Both Stitt and Department of Public Safety Commission Tim Tipton said the tickets were necessary because only two tribal entities provided registration data to the state. Records obtained by The Oklahoman, however, showed that at least 26 of the state’s 38 federally recognized tribes provided data to the department.

That incident came just after the governor’s office faced off with attorneys for the Legislature over whether or not the Legislature had the authority to approve tribal compacts. The Oklahoma Supreme Court heard arguments in the case but has yet to issue a ruling.

More: Gov. Stitt says new compact guarantees access to tribal tag data. But the state already had the data

Two weeks ago the governor’s office announced it had successfully negotiated new tag and tobacco compacts with the Chickasaw Nation. That announcement was praised by legislative leaders, including Treat. Treat said the compact “highlights the importance of the progress we can make as a state when we work together.”

“I applaud everyone involved, including Chickasaw Nation Governor Bill Anoatubby and Governor Stitt who negotiated these compacts,” Treat said in a media statement. “I also appreciate my colleagues in both the Senate and the House who came in during our special legislative session several months ago to override vetoes of the extension to our existing compacts, which game more time for further discussions that led to this resolution.”

Like taxes issues surrounding the state's relationship with its 39 tribal nations will continue as the governor and many tribal leaders face off over tribal taxes, jurisdiction in criminal justice cases, gaming and public safety. Legislative leaders have, on several occasions, countered the governor and adopted policies endorsed by tribal leaders.

With the governor midway through his second term, some political experts are urging Stitt to work quickly to mend his relationship with the tribes before the debate becomes even more contentious.

Oklahoma lawmakers may look at improving criminal justice

While the debates about tribal issues and tax reductions will likely occupy a great deal of lawmakers’ time, one state representative said he would continue his push for major changes in Oklahoma’s criminal justice system.

Lane Republican Justin Humphrey has long pushed for a moratorium on the death penalty and changes to the state’s death penalty system. Recently, Humphrey called out representatives with the Oklahoma Department of Corrections for moving their headquarters without legislative approval.

In addition, Humphrey continues to advocate for additional investigations of state agencies and for more authority to issue legislative subpoenas. In October, Humphrey held an interim hearing to examine ways of restructuring the state's criminal justice system.

"We believe the criminal justice system in Oklahoma is broken and that what we are doing as legislators is simply putting Band-Aids on the system," Humphrey said at the time. "This isn't going to work. We need a new system, one that actually changes criminal behavior and reduces our prison population while keeping our people safe."

Humphrey, who said he has worked in nearly every job within the corrections system, pointed to the state’s community corrections, or parole and probation, as an example of one area the system that is fragmented and dysfunctional.

"We have DA supervision, we have DOC supervision, we have community sentencing, we have private," he said, "And we don't have anything across the state that links all of us together."

A new agency for economic development

With more than 2,000 pieces of Legislature to review and a fiscal year 2025 budget to write, the Legislature won’t have a great deal of time for outside issues. Yet for the Senate's leadership, one goal for the next session is the creation of a new state agency focused solely on economic development: the Oklahoma Office of Economic Development, Growth and Expansion — OK EDGE.

Sen. Kristen Thompson, R-Edmond, said the agency would target and unify the state’s economic development efforts, moving them away from the Oklahoma Department of Commerce.

“The agency will be the center point for economic development and business growth and business retention for the state,” Thompson said in an interview with The Oklahoman. “We’re pulling those functions out of commerce and giving it its own owner, essentially.”

Thompson said representatives of the new agency would also gather information about why businesses and industries chose not to come to Oklahoma.

“I think, with anything in life, your mistakes just help make you better,” she said. “We can’t fix what we’re not aware of. We have to ask those questions if we’re going to get better. The state is missing something," she said. “So, what is it? We have to be able to ask those hard questions.”

Those questions will begin on Feb. 5.

This article originally appeared on Oklahoman: Tax cuts, tribal tags likely to dominate Oklahoma legislative session