Bon Appétit!

The Oklahoma legislature adjourned their 2022 regular session sine die (Latin for with no appointed date for resumption.) on Friday, May 31.

The state constitution requires legislative regular sessions end by the last Friday in May. Lawmakers are still in a ‘special’ session to consider how to spend the $1.87 billion in federal coronavirus relief funds (federal tax dollars) under the American Rescue Plan Act (ARPA).

Reportedly, there are $17.8 billion in requests from Oklahoma agencies, municipalities, and other organizations.

In all, 430 bills made it to Governor Kevin Stitt’s desk for signature during the regular session. The governor vetoed a few bills, including part of the budget, which is unusual when the governor and legislature are from the same Party.

Stitt claims he wasn’t a part of the budget process, criticized the tax relief measures in the record $9.8 billion dollar state budget (+9.7% over last year) and took issues with the tax rebates proposed by the legislature. Calling the plan to send $75 to all single tax filers and $150 to couples, ‘a political gimmick,’ Stitt said it was a page out of President Joe Biden’s playbook.

“I never expected to see Republicans waste $181 million sending government checks out,” the governor said.

Stitt also vetoed a bill to eliminate the 1.25% tax on all vehicle sales and the attempt to override it failed in the House. Governor Stitt has issued a call for a special legislative session starting June 13th (two weeks before the primary election) to discuss cutting the state income tax by .25% and eliminating the state sales tax on groceries.

Three observations:

First, eliminating the sales tax on vehicles is a good idea.

Oklahomans currently pay 3.25% excise tax on vehicle purchases. In 2017, the legislature removed the 1.25% vehicle sales tax exemption, meaning Sooners paid 4.5% when they brought a vehicle, which cost hard working Oklahomans about $165 million a year. The governor claims he wants real tax relief for Oklahomans, but vetoed a proposal that would do just that? Restore and make the exemption permanent!

Second, everyone but Oklahoma taxpayers got a raise.

This year, the legislature appropriated more money for every state agency, gave raises to law enforcement, the judiciary, and other state employees. Of the nearly $10 billion budget, about $2.5 billion is going into the rainy-day fund. In other words, Oklahoma taxpayers ‘overpaid’ their tax bill by $2.5 billion but the state government is going to keep the money just in case it’s needed (which it always is).

The Oklahoma legislature is required to balance the budget every year. The state constitution requires the legislature not spend more than Oklahoma government takes in. Unfortunately, the constitution doesn’t require taxpayers to get back any excess- and they seldom do.

The governor proposes elimination of tax on food and cutting the income tax by .25%. Stitt claims it would save the average Oklahoma family about $500 a year. But based on estimates, both the governor’s proposal and the legislature’s plan would reduce state revenue by the same amount.

Third, the governor and the legislature don’t seem to be getting along.

House Speaker Charles McCall, R-Atoka, said the governor has made some ‘inaccurate and misleading statements about the state budget. Governor Stitt said he was ‘cut out of the budget process,’ and that he is looking for the ‘smoke filled back room,’ where the budget is crafted. He says he did not see the budget until 9 pm before it was released to the public the next day.

In Oklahoma, the legislature has responsibility to craft the budget, but the governor has the right and responsibility to review and veto. The governor proposes and the legislature deposes legislation. Both sides would be well served to recognize the need to cooperate and avoid expensive and time-consuming multiple special sessions that cost taxpayers money.

According to the Consumer Price Index, the price of beef in the U.S. is up +21% over last year. The cost of a good steak dinner at a nice restaurant is about $75 with tip.

The Oklahoma legislature proposes giving you back enough of your tax dollars to have a nice steak dinner.

The governor wants to string that dinner out over a year.

Bon Appétit!

Note: Steve Fair is Chairman of the Republican Party in the Fourth Congressional District of Oklahoma. Steve’s conservative commentaries appear regularly at the CapitolBeatOK.com news website. Contact him by email at okgop@aol.com. His blog is stevefair.blogspot.com.