Correction: This editorial originally referred to tax and budget figures recently presented by Gov. Mary Fallin to legislators as a “proposal” and a “plan.” Fallin’s office says she wasn’t endorsing the ideas, but presenting them for discussion purposes. The editorial has been corrected.
Members of the do-nothing Oklahoma Legislature went home last week, leaving the budget $215 million out of balance and three state agencies quickly spending their way into insolvency.
Lawmakers are expected to resume their efforts to repair the state budget hole next week, but so far all we’ve seen is an unwillingness to compromise and a lack of the creativity needed to work through problems.
The state’s budget problem stems from an Oklahoma Supreme Court decision that the Legislature created a state cigarette tax in an unconstitutional way during its regular session. The cigarette tax was designated as part of the funding for the state’s Medicaid program and health and human services departments.
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If things stay the way they are, the Medicaid program will run out of money by January, the mental health department will do so in November, and DHS will be out of state appropriations by May, The Oklahoman has reported.
Over the weekend, Tulsa World reporter Barbara Hoberock reported on a figures Fallin put before lawmakers before their disappearing act. The ideas included a (constitutional) $1.50-a-pack cigarette tax, raising gross production taxes to 5 percent for new wells, a 6-cent hike in the state gasoline and diesel taxes and two new income tax brackets: a 5.25 percent bracket for those earning $250,000 to $499,999 and a 5.5 percent bracket for those earning $500,000 and more.
The figures also included ending a wind manufacturer sales-tax exemption, redirecting $83 million in cash and a sales tax on some services, including pet grooming, short-term aircraft rental, swimming pool cleaning, fur storage and tattooing.
Bringing together those and idea would produce enough money to balance the budget, set the state on a more sustainable fiscal course and fund teacher pay raises.
We hope that when they return to the Capitol on Monday, legislators are ready to do some real work and produce some real results. So far, they haven’t.
