TRANSCRIPT
Announcer: Capitol Insider sponsored by United for Oklahoma. Tribal nations building unity and economic strength to benefit all Oklahomans. More at unitedforoklahoma.com. Oklahoma thrives together.
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, the Senate has passed a bill that would gradually eliminate the state's individual income tax, something Governor Kevin Stitt has been pushing for. What does this bill do?
Shawn Ashley: Well, it does provide the path to zero, the eventual elimination of the individual income tax that Governor Stitt has been calling for. And under the bill, the individual income tax rate would be reduced by one quarter of a percentage point whenever the Board of Equalization determines state revenue collections grew by $300 million or more. So, it's a long path. It would take nearly 20 years to reduce the rate to zero under the bill, provided revenue grows by $300 million every year. And recently, it hasn't done that.
Dick Pryor: Yeah, and there was bipartisan debate over whether this is the right time to push for the income tax cut. What were those arguments about?
Shawn Ashley: Well, arguments were really two-fold. Senate Minority Leader Julia Kurt argued a cut would undermine the state's ability to keep up with increases in the cost of providing state services. Remember, state agencies said in their budget request that they needed one billion more dollars, not less, to do their jobs. And Senator Brent Howard, a Republican from Altus, said he did not oppose the bill's concept, but felt the bill was being rushed. Howard is a member of the Senate Revenue and Taxation Committee that heard the bill on Monday, and concerns were raised there, Howard said, that had not been addressed before the bill was brought to the floor.
And it should be noted, the bill was kind of fast-tracked this week. Originally, it was double assigned to two committees, Revenue & Tax and Senate Appropriations. After it passed out of Revenue & Tax on Monday it was withdrawn from Appropriations, which allowed it to be heard on the floor more quickly on Thursday.
Dick Pryor: It seems likely the House will pass this bill and send it to the governor to sign. Economic growth would trigger individual income tax cuts under this bill, but costs to provide government services keep increasing. Is there a mechanism to raise taxes back up if there is little or no sustained economic growth?
Shawn Ashley: No, there is not. And that was a point both Kurt and Howard noted. It only takes the majority of votes to cut taxes, but it takes a three-fourths vote in each chamber to raise taxes. And we saw that in 2017, when lawmakers needed to increase taxes to balance the budget. It took them six months in a special session to come up with a plan that would ultimately receive enough votes.
Dick Pryor: Tuesday is the deadline for state agencies to comply with a new executive order issued by Governor Kevin Stitt last Monday about the state's workforce. What information is the governor seeking?
Shawn Ashley: Governor Stitt has said he wants state agencies to employ fewer people when he leaves office in 2027 than when he became governor in 2019, but some, including House Speaker Kyle Hilbert, have raised concerns that state agencies may be hiring more expensive contract workers to keep their employee counts low. Stitt said, “I'm putting this executive order out to prove that's not true. There's no way. If, obviously, we're paying a contractor when we can have an employee do it better and quicker and more efficiently, I would absolutely say hire that employee.”
Now the order asks agencies to report among other things, instances where agency employee counts have been reduced or where the agency has left a position vacant due to the use of independent contractors or other outside contracts and the total compensation inclusive of benefits for each employee position eliminated due to or replaced by independent contractors or other outside contracts.
Dick Pryor: Another bill we're watching would allow veterans to receive discounts on the purchase of liquor. Are liquor discounts available to anybody now under state law?
Shawn Ashley: No, they're absolutely not. Current law does not allow for retailers, bars, restaurants, or anyone who sells alcoholic beverages to offer those products at a discount. So, this would be the first of its kind.
Dick Pryor: What should we watch for in the week ahead?
Shawn Ashley: Committee work is continuing. The House is moving into the second phase of its committee process, the Oversight Committee process, with Senate bills that came across from the rotunda. The Senate, meanwhile, is considering those House bills that made it across the rotunda.
Dick Pryor: 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.
Announcer: Capitol Insider sponsored by the Oklahoma State Medical Association, committed to fostering health care in rural Oklahoma through education and public and private partnerships. More on OSMA at okmed.org.
Announcer: This is Tonya Mosley, co-host of Fresh Air. You'll see your favorite actors, directors, and comedians on late night TV shows or YouTube, but what you get with Fresh Air is a deep dive. Spend some quality time with people like Billie Eilish, Questlove, Ariana Grande, Stephen Colbert, and so many more. We ask questions you won't hear asked anywhere else. Listen to the Fresh Air podcast from NPR and WHYY.
KGOU produces journalism in the public interest, which is critical to an informed electorate. Listeners like you provide essential funding for Capitol Insider. Make your contribution at KGOU.org.
