Senate President Pro Tem Brian Bingman, R-Sapulpa, warned Wednesday of a possible state revenue shortfall this budget year, while House Speaker T.W. Shannon said an income tax cut scheduled for 2015 should have been implemented immediately.
The two legislative leaders addressed the Tulsa Regional Chamber on the 2014 legislative agenda.
"The tax cut we passed — we delayed it a year," said Shannon, R-Lawton. "I am confident if we had not done that we would have seen an increase in revenue."
Bingman, who has demonstrated a more cautious approach to revenue and tax cuts, noted that general fund allocations for the first quarter of the current budget year are more than 8 percent lower than expectations and 4 percent less than the same period a year ago.
In all, the general fund is $113.8 million short of expectations for the quarter.
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"Hopefully," said Bingman, "part of that is due to the ongoing Washington, D.C., ... debt ceiling and budgeting woes causing businesses and individuals to be reluctant to spend money. If that is solved, we'll hopefully see (revenues) more in line with what we've expected."
Bingman spoke at some length on the A-F school grades controversy and said he expects education funding and state retirement system reform to be near the top of the Senate's priorities next session.
Shannon said retirement system reform will be the top priority of the House.
He repeated the position of legislative leadership and the Fallin administration that the current defined benefit plans are unsustainable and that a transition to 401(k)-type defined contribution plans is inevitable.
Several of Oklahoma's state retirement plans have been actuarially unsound for years — and in some cases decades — but their financial positions have improved recently. Leaders, however, have made clear their commitment to phasing them out.
As he has for most of the year, Shannon rattled his legislative saber at the state Supreme Court. He promised judicial reform designed to drive out justices who have consistently ruled against some of the Republican majority's proudest legislation.
In particular, he wants term limits for the judiciary.
"We've gotten out of balance with the balance of power," he said.
Shannon praised Gov. Mary Fallin's decision to refuse to expand Medicaid or form a state-run insurance exchange under the Affordable Care Act.
"One in four Oklahomans (are) already on Medicaid," he said. "I don't know that making (that) one in three would be affordable."
Under the Affordable Care Act, the entire cost of expanded Medicaid would be covered by the federal government initially. Eventually, the state would be responsible for 10 percent of the cost.
Shannon acknowledged that not accepting the Medicaid money is working a hardship for many Oklahoma hospitals and said a solution for that problem must be found.
Randy Krehbiel 918-581-8365
