Dear Friend, As you likely know, earlier this month, the main revenue measure based on proposals from the Step Up Oklahoma coalition (HB 1033xx) failed to gain the three-quarters support in the House needed to pass a revenue bill. In a new blog post, OK Policy looks at where the failure of the Step Up proposal leaves the state's budget. We explain what actions lawmakers took to balance the current year budget and examine next year's budget outlook following last week's meeting of the Board of Equalization. Modest revenue growth marks a major improvement compared to the large shortfalls that lawmakers have faced in recent years; however, this growth is more than offset by numerous spending obligations that are on the books, as well as the need to find the funds for pay raises for teachers and state workers and other longstanding priorities. The blog post concludes by asking if there still a chance that lawmakers will come together and agree to a comprehensive revenue package with enough bipartisan support to clear the supermajority hurdle for new taxes. Our view is that despite all the obstacles, a deal is both possible and essential: For all the political drama of recent months, there is now a strong, bipartisan consensus that the state has a structural budget deficit that must be addressed with new recurring revenues. More than three-quarters of lawmakers have already crossed the political Rubicon by voting for bills to raise taxes over the past year. Although there is disagreement on the details, the outlines of a bipartisan deal are in place: a higher gross production tax, cigarette tax, and fuel tax, coupled with limits on tax breaks for high-income individuals and an increase in tax credits for low-income households.. This is truly a critical moment for Oklahoma. Failing to reach a real solution for our budget problems would be a massive and unacceptable failure to responsibly govern our state. Our lawmakers, and the constituents they represent, cannot let that happen. Read the full post here. We are also pleased to release a newly updated version of our Budget Trends and Outlook, a two-page fact sheet of key points and charts that can be read online or downloaded as a PDF. All of our budget and tax materials, including our Online Budget Guide, can be found on our website. For tips on how to contact your legislators and advocate for a better budget for Oklahoma, click here. Thanks! David | Oklahoma Policy Institute
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Tulsa, OK 74120
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