OKLAHOMA CITY — If an effort to repeal a tax hike for teacher pay raises is successful, the state would see a revenue failure, the Board of Equalization was told Monday.
The end result would be across-the-board cuts to state agencies of about 6.5 percent, including to the Oklahoma Department of Education, said Denise Northrup, Office of Management and Enterprise Services director.
Lawmakers last session passed House Bill 1010xx which hiked taxes on cigarettes, little cigars, gross production and fuel to fund an average $6,100 teacher pay raise. The bill takes effect June 28.
Critics are circulating a referendum petition to get enough signatures to repeal the measure.
Legal challenges to that effort, State Question 799, have been filed with the Oklahoma Supreme Court.
A ruling is expected any day.
People are also reading…
Signatures are currently being collected.
“If voters should repeal it, we will have about a $414 million shortfall in our state budget and of course the new fiscal year is July 1,” Gov. Mary Fallin said. “Agencies would have to start making cuts.”
The pay raises were contained in a separate measure, House Bill 1023xx.
Both the Oklahoma Tax Commission and State Superintendent Joy Hofmeister have asked for an opinion on the repeal effort from Oklahoma Attorney General Mike Hunter.
Northrup was asked if schools would still be required to give the raises should the repeal effort be successful.
She said it is up to the attorney general and the Oklahoma Supreme Court to determine.
“I don’t think any of us are in a position to say that,” she said.
Shelly Paulk, deputy budget director for the Office of Management and Enterprise Services, said it is possible some of the funding from the state’s Rainy Day Fund could be used to offset the loss, but not all of it.
