Flush with cash, Oklahoma governor expected to push tax cuts

OKLAHOMA CITY (AP) — With state financial savings accounts and income collections at all-time highs, tax cuts are anticipated to be a high precedence for Gov. Kevin Stitt and the Republican-controlled Legislature when it begins the 2023 session on Monday.

Stitt, who simply received reelection in November, will current his govt price range proposal to lawmakers and ship his fifth State of the State handle at midday to a joint legislative session.

The governor final 12 months urged the Home and Senate to ship him payments to remove the state gross sales tax on groceries and scale back the person and company earnings tax charges, however none of these proposals made it into regulation. All of these are anticipated to be a part of the price range negotiations once more this 12 months.

After the Federal Reserve enacted one other rate of interest hike, final week Stitt tweeted that “we have to reduce taxes and that begins with eliminating our state’s grocery tax.”

Oklahoma at present has about $1.4 billion in its constitutional Wet Day Fund and a separate income stabilization fund, and the amount of cash out there for lawmakers to spend on this 12 months’s price range is predicted to extend by one other $950 million, primarily based on December figures accredited by the state Board of Equalization.

Lawmakers are also more likely to go a pay elevate for lecturers, though the main points will probably be hammered out through the session. State Sen. Adam Pugh, the chairman of the Senate Schooling Committee, unveiled a plan final month to offer an across-the-board trainer pay elevate of between $3,000 and $6,000, primarily based on years of service. However the governor’s Secretary of Schooling and new State Superintendent Ryan Walters has put forth a plan to offer merit-based pay raises to lecturers.

The Legislature is also more likely to take into account once more a plan endorsed by Stitt and Walters for a voucher-style plan to divert public schooling funds from public faculties to personal faculties, though the proposal stays unpopular with many Home Republicans, notably these in rural areas.

Numerous payments even have been launched by Republicans this 12 months to revive a number of the abortion restrictions that had been imposed final 12 months, together with a invoice that may permit abortions in instances of rape or incest which have been reported to regulation enforcement and clarifying the definition of when an abortion is allowed in instances of medical emergencies that threaten the lifetime of the mom.

“That invoice is supported and endorsed by Oklahomans for Life, so I might anticipate (it) has an opportunity of passing,” mentioned Rep. Jon Echols, majority ground chief within the Home. “I positively suppose it’s going to get thought of.”

A number of payments even have been launched to ban gender-affirming medical care for younger individuals. These proposals come after the governor signed payments final 12 months to stop transgender women from taking part in on women sports activities groups and requiring college students in public faculties to solely use bogs that correspond with their gender at start.

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Observe Sean Murphy at www.twitter.com/apseanmurphy