House Republican Caucus Unveils Pro-Growth Strategic Plan

OKLAHOMA CITY – The House Republican Caucus today unveiled their 2013 legislative agenda, which included a three-point plan addressing economic development, education reforms and infrastructure funding and maintenance.

Speaker T.W. Shannon

“Oklahomans have spoken loud and clear this year by voting in the largest Republican majority in Oklahoma history,” said House Speaker T.W. Shannon, R-Lawton. “They want overreaching regulations that limit their freedom repealed. They want policies enacted that protect their rights, that encourage job growth and prosperity and that improves our education system so their children can have a brighter future.”

On infrastructure, Speaker Shannon proposed an eight-year, pay-as-you-go plan to directly fund the upkeep and repair of infrastructure.

“In the past, the model has been to neglect infrastructure to the point of decay and then to take out bonds to repair those needs,” said Shannon. “Our plan will be similar to the eight-year transportation plan we introduced last year that allows us to prioritize projects based on need and to pay our way as we go without adding more debt onto the backs of hardworking Oklahomans.

Agency Performance and Budget Hearings Scheduled

OKLAHOMA CITY – The House will begin holding performance and budget request hearings for state agencies this week in preparation for the upcoming legislative session, House Appropriations and Budget Committee Chair Scott Martin announced.

The hearings will be held over a two-week period at the state Capitol beginning on Tuesday, January 22.

Rep. Martin said the hearings are an important process for members to review how the agencies performed during the most recent fiscal year. The meetings give the agencies an opportunity to explain to the committee how the prior year’s appropriation was spent, whether new programs were added or old ones discarded and to present their budget request for the next fiscal year.

“I’m glad we were able to reinstitute these critical hearings for the upcoming session,” said Martin, R-Norman. “It’s our duty to provide oversight and evaluate agency budgets, and these hearings will give my House colleagues the chance to really dig deep into agency spending and thoughtfully consider any new request before session begins.

“It’s important to the taxpayers that every penny spent is justified and used wisely. These are taxpayer dollars we will be appropriating, and it’s incumbent on us to be good stewards of them. I’m confident these meetings will be beneficial for the legislature, just as it will be for our state agencies. While the budget is considered and passed during a short four-month timeframe, our vigilance over it never ends. I hope my fellow citizens feel free to attend these public meetings and listen to the proceedings.”

The Performance and Budget hearing schedule is as follows:

• A&B Joint (with Senate) Human Services Subcommittee, Tuesday, January 22 at 8:30 a.m.
• A&B Joint (with Senate) Judiciary Subcommittee, Thursday, January 24 at 9:00 a.m.
• A&B Joint (with Senate) Natural Resources Subcommittee, Thursday, January 24 at 10:30 a.m.
• A&B Public Health Subcommittee, Monday, January 28 at 8:30 a.m.
• A&B Joint (with Senate) Career Technology Subcommittee, Monday, January 28 at 9:30 a.m.
• A&B Joint (with Senate) Higher Education Subcommittee, Monday, January 28 at 2:00 p.m.
• A&B Non-Appropriated Subcommittee, Tuesday, January 29 at 9:00 a.m.
• A&B Joint (with Senate) Common Education Subcommittee, Tuesday, January 29 at 9:30 a.m.
• A&B Transportation Subcommittee, Tuesday, January 29 at 10:30 a.m.
• A&B Public Safety Subcommittee, Wednesday, January 30 at 8:30 a.m.
• A&B General Government Subcommittee, Thursday, January 31 at 9:00 a.m.

All meeting notices with locations and agendas have been posted to the House website.

The 54th Legislature will convene on Monday, February 4.

New income tax cut plan proposed by House Republicans

New proposal contains no tax increases

OKLAHOMA CITY – House Republicans plan to introduce a new income tax reduction measure Wednesday that ensures Oklahomans receive either an income tax reduction or no tax change at all.

“We came here to lower taxes for hardworking Oklahomans we’re going to do exactly that with this new plan,” said House Speaker Kris Steele, R-Shawnee. “We’re excited about this plan, we believe in this plan and we’re going to pass this plan along to the Senate. Anyone who is for lower taxes should be for this plan.”

The new plan proposes three growth triggers that would reduce the top personal income tax rate to 4.5 percent within three to ten years, dependent upon revenue growth. Each trigger would result in a .25 percent reduction. In order for the trigger to take effect, there must be a 5 percent annual growth in collections of motor vehicle taxes, use taxes, sales taxes, income taxes and corporate taxes apportioned to the general fund. The criteria for the triggers are the same criteria used for the trigger in HB 3061, the previous income tax reduction proposal.

The new income tax plan will be contained in an amended version of HB 3038 that will be introduced during the House General Conference Committee on Appropriations meeting at 1:30 p.m. Wednesday.

Speaker Kris Steele

“This plan is a lot like the tax reductions Oklahoma Republicans have enacted consistently for nearly 15 years in order to lower the rate from 7 percent in 1998 to 5.25 percent today. It allows us to continue down that path in a responsible, methodical manner that won’t cause any taxpayers to pay more,” Steele said.

The new plan keeps the current tax bracket structure and personal exemption intact. The tax bracket structure change and personal exemption modification proposed in HB 3061 are among the reasons why some taxpayers would see a tax liability increase under HB 3061.

“This House cannot fully embrace that plan because it would raise the tax liability of too many Oklahomans,” Steele said. “While the bill as a whole does represent a net tax decrease, we just can’t embrace the portion of it that leads to a tax increase. We had serious discussions about this matter and have come out more determined than ever to reduce taxes for all Oklahomans.”

House Republicans rallied in support of the new plan.

Rep. Leslie Osborn
R-Mustang

“This is a simple, straightforward way to lower taxes without any having to raise anyone’s taxes,” said Rep. Leslie Osborn, R-Mustang, the principal House author of HB 3038. “It’s not overly complicated. It just says when government revenues grow, tax reductions should occur. That’s what we fundamentally believe as Republicans.”

The new plan would not affect the proposed fiscal year 2013 state budget because it does not mandate a tax reduction in fiscal year 2013.

“It won’t cost us a cent next year,” said Rep. Earl Sears, R-Bartlesville, chairman of the House Appropriations and Budget Committee. “It’s a win-win deal.”

The earliest possible trigger would be for fiscal year 2014. Preliminary Tax Commission estimates show the cost of the first trigger as $120.5 million, $152.3 million for the second trigger and $172.9 million for the third trigger. The cost of each trigger would be spread across two fiscal years due to the difference between tax years and fiscal years.

“Tying these triggered tax cuts to actual growth makes them far easier to pay for because they won’t go into effect unless the state has far more revenue than it did the previous year,” Sears said.