With the drought continuing, the Oklahoma Conservation Commission adopted a plan proposed by the Emergency Drought Commission to deliver $33,000 in emergency funds to each Oklahoma county. The legislature also allocated an additional $20 million for the second phase of the plan, which is also on its way to farmers and ranchers.
Transcript
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Dick Pryor: This is Capitol Insider - taking you inside politics, policy and government in Oklahoma. I'm Dick Pryor with Quorum Call publisher Shawn Ashley. There are no signs we're going to get a break in the drought anytime soon. Last Monday, the Oklahoma Conservation Commission approved the first phase of the state's emergency drought relief plan. Shawn, what does the first phase actually do?
Shawn Ashley: The first phase makes $3 million available statewide to local farmers and ranchers through a cost share program. The state will bear up to 80% of the cost. And the farmer or rancher the other 20% of certain projects. Eligible projects include pasture and hay planting, excluding Bermuda grass, water pipeline and pumping plants, watering facilities, water wells, pond clean out, cover ups and heavy use protection areas. The maximum grant is capped at $7,500 per project and the program is being administered by the Oklahoma Conservation Commission. So, farmers and ranchers will be hearing more about it from their local conservation districts.
Dick Pryor: What is the plan in the second phase?
Shawn Ashley: There is another $20 million in the queue for drought relief. Like the first phase, the Emergency Drought Commission, which was activated when Governor Kevin Stitt issued an executive order in September, will set the guidelines for the program, and it's likely the Conservation Commission will administer it as well because of its statewide reach and experience in handling grant programs for individual agricultural producers. (Editors note: On Tuesday, Governor Kevin Stitt signed HB1006XX, which immediately authorized the additional $20 million for drought relief.)
Dick Pryor: Now let's shift to taxes. Senate President Pro Tem Greg Treat says the legislature will not return in special session this fall to consider tax cuts, including the repeal of the grocery tax. However, he has opened the door to tax cuts in the 2023 regular session. What's on the table?
Shawn Ashley: Well, Treat told reporters recently. Everything is on the table. Now remember the pro tem appointed a si- member working group made up of all Republicans at the end of May, when Governor Stitt called the third special session to address tax and inflation relief. That working group is taking a look at what Treat described as global tax reform. “Global reform,” he said, “is what we're looking at with the hope that we can get as close to zero on the personal income tax as possible.” And he also added, “nothing is off the table but to maximize the benefit to Oklahomans; the income tax is where we see a competitive disadvantage for Oklahoma at times.”
Dick Pryor: During the ARPA special session, lawmakers deferred providing funding for human services projects, but it appears those projects will receive attention next year. Why did they not take those up during the special session?
Shawn Ashley: There were ten projects in that legislation totaling close to $90 million. According to Senate President Pro Tem Greg Treat, the House did not want to include a $2.8 million appropriation for a program to provide semi-independent housing, food security and transitional tools to victims of domestic violence. The funding was requested by the YWCA of Oklahoma City and would have been passed through the Department of Human Services to the organization. Treat noted the proposal went through the Health and Human Services Working Group and the Full Joint Committee on Pandemic Relief Funding. So, it was the Senate's position it should be included in the bill. The House, however, did not want to include it. Treat said the Senate is working through its differences with the House over the proposal and expects the appropriations will be taken up in the regular session. He said it even could be fast tracked to move through the legislature quickly.
Dick Pryor: Shawn, a lot of our recent focus has been on the pandemic relief funding through ARPA. How are general revenue fund figures looking so far in fiscal year 2023?
Shawn Ashley: For the first two months of the fiscal year, collections were nearly $216 million more than those in 2021 and almost $267 million more than the estimate. Now, keep in mind the comparison of actual revenues to the estimate is very important because it shows the state is able to meet the appropriations lawmakers made during the 2022 regular session. Now, if the economy is headed toward a recession, as some suggest, that gives the state a bit of a cushion. But if the economy remains strong, as others predict, it's the foundation on which future collections can build. We should be seeing updated numbers from the Office of Management and Enterprise Services in the coming days.
Dick Pryor: And those figures may tell a lot. That's something we'll be watching.
Shawn Ashley: It certainly is.
Dick Pryor: Thanks, Shawn.
Shawn Ashley: You're very welcome.
Dick Pryor: And that's Capitol Insider. If you have questions, email them to news@kgou.org or contact us on Twitter @kgounews and @QuorumCallShawn. Until next time, with Shawn Ashley, I’m Dick Pryor.
