Oklahoma legislators continue to work through a variety of issues as they craft the fiscal year 2025 state budget...and time is running short.
TRANSCRIPT
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. Shawn, at most three weeks are left in this year's legislative session, and it's all budget, budget, budget. Lawmakers spent two of the last five days in what the governor has called a “budget summit.” Has that approach produced any new agreement?
Shawn Ashley: Budget negotiators have made progress, but they have yet to reach a final agreement. The Senate and House's original budget proposals included agreements on 15 state agencies and one program's budget, mostly where they were holding things flat. Things got off to a slow start last Monday, but the pace really picked up Thursday with the teams reaching a number of line-item agreements - specific funding for particular programs within state agencies and agreements on funding levels for some of the smaller agencies they previously had not agreed upon.
Dick Pryor: There are still various outstanding issues: deferred maintenance, capital improvements, whether to slow spending, whether to cut individual income taxes, what to do with so-called “excess money,” and how to fund agencies including K-12 and higher education, which combine to make up the largest part of the budget. They're even going back and forth on whether to start their discussions talking about revenue or expenditures. How did legislators get this deep in the session and still leave so much unresolved?
Shawn Ashley: I really think there are two reasons. First, this is how the process works. The budget teams are talking about spending between 11 and $13 billion. So those are not easy decisions and that work began in October when state agencies made their budget requests, then those requests were reviewed by subcommittee chairs in the fall and then the appropriations subcommittees when the session began. All that work produced the Senate's budget resolution that passed in March and the House budget blueprint that was made public in April. That's a lot of work. But that one-month period between the Senate passing its resolution and the House releasing its blueprint is the second reason I think we are where we are at. That delayed the final talks. And things were delayed another week near the end of April, when Senate President Pro Tem Greg Treat replaced his Appropriations Committee chair. So, all that work, combined with a couple of hiccups, put us at the end of the first week in May without a budget agreement.
Dick Pryor: And that's where we are right now. Legislative weeks normally are four days. Lawmakers haven't had a five-day week yet. Does that say anything about where legislators think they are in closing out the session?
Shawn Ashley: I think it does. And I think they believe they're better off than perhaps we suspect they are. Lawmakers already have sent 300 bills to Governor Kevin Stitt’s desk. He has signed 279 of those, vetoed 19, and allowed two to become law without his signature. On average, the governor acts on around 420 bills every session. In other words, a lot of work has already been done rather quietly.
Dick Pryor: The state treasurer just released a new revenue report. And as is often the case, it's a good news, bad news report.
Shawn Ashley: That's right. Total tax revenue for April was up $57.7 million, or 3%, over the same month one year ago, State Treasurer Todd Russ recently reported. For the month, most tax sources were up, but sales tax collections - a measure of consumer buying power and sentiment - were down just over two percentage points. For the 12 -month period, total receipts for the past 12 months are down $584.6 million, or 3.3%. Something certainly worth watching.
Dick Pryor: Shawn, what's on the agenda for the week ahead?
Shawn Ashley: Dare I say it? Budget, budget, budget. Day three of the budget summit is planned for some time Monday, and lawmakers will continue working through those other bills they would like to see on the governor's desk before the legislature is required to adjourn at 5 p.m., May 31st.
Dick Pryor: Okay. Thanks, Shawn.
Shawn Ashley: You're very welcome.
Dick Pryor: For more information, go to quorumcall.online. You can find audio and transcripts at kgou.org. And look for Capitol Insider where you get podcasts. Until next time, with Shawn Ashley, I'm Dick Pryor.
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