The Oklahoma Senate
(Most of the work in the Legislature occurred behind the scenes in budget meetings or conference committee. House and Senate budget writers are trying to reach agreement on the distribution of funding allocations to various agencies. Budget leaders are also meeting with members of the Governor's staff, trying to reach agreements with him. Three weeks remain in the legislative session. Lawmakers must adjourn by 5pm Friday, May 29th)
- $144 million for education;
- $8.6 million for law enforcement pay;
- $31.5 million for OSEEGIB subsidy;
- $6.9 million for water quality management;
- $34.5 million for public safety;
- $40 million for state employee pay;
The Governor's proposal would spend more general revenue than is currently
available for appropriations. He apparently plans to free up more funds
through improved tax collections and a raid on state pension accounts which
he claims are fully funded. Those initiatives were proposed in his executive
budget.
In addition to those spending proposals, Governor Keating said his first priority is tax cuts.
- Reducing the state sales tax on groceries
from 4.5% to 2.25% by Oct 1, 2000.
- Increasing the estate tax exemption from $175,000 to $600,000 over the
next four years;
- Exempting $1,000 of the value of a non-commercial car or truck when calculating
the vehicles's annual registration fee;
- Enacting an Oklahoma College Savings Plan that would exempt from state
income tax interest earned on an account set up to finance a student's expenses
while attending a public or private college in Oklahoma;
- Authorizing a Small Business Administration guaranty fee credit that would
allow small companies to obtain an income-tax credit when they pay a guaranty
fee to acquire an SBA-backed loan.
The tax program is a turnaround for Speaker Benson, who has previously advocated nothing more than a tax rebate, saying anything else would be irresponsible. Senate President Pro Tempore Stratton Taylor labeled the latest initiative "election-year posturing" and questioned the impact such a program would have on education.