House Republican Majority Caucus Elects Leadership

OKLAHOMA CITY – Two days after the election that gave Republicans a historic 72-29 seat control in the Oklahoma House of Representatives, the House Republican caucus today elected its leadership and re-affirmed state Rep. T.W. Shannon as their choice for House Speaker-elect.

Speaker-elect T.W. Shannon
R-Lawton

Speaker-elect Shannon is only the sixth Republican speaker in state history.

“I am truly honored and, frankly, humbled by the support of my colleagues,” said Shannon, R-Lawton, who ran unopposed for the position. “We face many challenges in the upcoming session, but I view challenges as opportunities to lead and make our state better for every Oklahoman.

“Our nation is at a tipping point, and I truly believe Oklahoma can be a light for the rest of the nation to follow. Leaders in Washington, D.C. have proven they are incapable of leading. We have the will to get things done, and I am ready to collaborate with the entire House body to develop a conservative, free-market, limited-government agenda that will create strong, prosperous families and grow our economy.”

The Republican caucus also elected several top leadership positions today and voted on proposed caucus rules.

In addition to electing Shannon, the caucus chose state Rep. Mike Jackson as Speaker Pro Tempore-elect.

“I am looking forward to working with Speaker-elect Shannon and the members of the caucus,” said Jackson, R-Enid. “It is a privilege to serve the members, and I feel like 2013 is going to be a great year for the people of Oklahoma.”

State Rep. Weldon Watson, R-Tulsa, who also ran unopposed, was chosen as Caucus Chairman.

"It has been a privilege to serve the caucus as Chairman during the past two years, and I am honored to continue serving," said Watson. "Our caucus has continued to grow. We have a great opportunity to govern and I am excited about the potential we have to make a difference for the future of Oklahoma."

Other elected leadership positions include:

• Vice Caucus Chairman, state Rep. Harold Wright, R-Weatherford, who ran unopposed.
• Caucus Secretary, state Rep. Elise Hall, R-Oklahoma City, who ran unopposed.
• Assistant Majority Floor Leader, state Rep. Lee Denney, R-Cushing.
• Assistant Majority Floor Leader, state Rep. Charles Ortega, R-Altus.
• Assistant Majority Floor Leader, state Rep. Randy McDaniel, R-Oklahoma City.
• Assistant Majority Whip, state Rep. Mike Sanders, R-Kingfisher.
• Assistant Majority Whip, state Rep. Steve Vaughan, R-Ponca City.
• Assistant Majority Whip, state Rep. Todd Russ, R-Cordell.
• Assistant Majority Whip, state Rep. Sean Roberts, Hominy.

"I'm humbled that my colleagues feel I have good judgment and trust me to do the job," said Wright, who was elected for a second term. "I always look at this position as a way to serve the members, much like I serve my own constituents. Serving the caucus can be a thankless job sometimes, but it is vitally important if you are going to build coalitions that get the people's work done."

"I am very honored to be elected by my fellow representatives to a position of leadership," said Hall. "We have a great opportunity to enact truly conservative policies during the next two years and I plan on working as hard as I can to repay my colleagues for their support."

During the next several weeks Speaker-elect Shannon will announce additional appointed leadership positions.

On Wednesday, November 14 at 11:00 a.m., the newly elected members of the entire House will be sworn in at the Capitol. In early January, the full House will convene for an organizational day to formally elect House leadership.

Lawmakers outline $853 million in unnecessary government spending

OKLAHOMA CITY – Over $853 million in unnecessary state government spending of taxpayer dollars was outlined today by a group of lawmakers who want to use the savings to make Oklahoma a no-income-tax state.

The group is advancing a proposal to phase out Oklahoma’s personal income tax over 10 years.

“We believe Oklahoma should be the state where people keep more of the fruits of their labor than anywhere else,” said state Rep. Leslie Osborn, R-Mustang. “This will make us a magnet for job creators and set us on a path of vibrant economic growth and long-term prosperity.”

The group’s proposal aims to achieve full phase-out of the tax without raising other tax rates, negatively affecting core state government services, or harming retirees, senior citizens or veterans.

To do so, the lawmakers say their proposal requires a total of $525 million in total reductions in state government outlays that must be found over a two-year period. Because the savings can be found over two years instead of just one, annual savings found for Fiscal Year 2013 could also be counted again in Fiscal Year 2014 toward the total savings necessary.

In offering a list of $853 million in total savings options over the next two budget years, the lawmakers maintain there is plenty of room to reduce wasteful, unnecessary state spending while avoiding cutting core services, and still put Oklahoma on track to become the tenth state in the nation without a personal income tax.

“We can make these reductions and not touch one dollar of actual core spending in education, transportation, public safety, or the safety net for the truly needy,” said state Rep. David Brumbaugh, R-Broken Arrow. “In return, we can repeal our state’s income tax in a responsible amount of time and see an influx of new jobs and investment in Oklahoma at levels we’ve not seen before.”

The list of $853 million over two years includes savings from three areas: wasteful, inefficient or unnecessary state expenditures; corporate tax credits that have not exhibited a high enough return on taxpayer investment; and modernization, consolidation and technology reforms within state government bureaucracy that are still in the process of being implemented.

“Some of our colleagues may feel uneasy about eliminating taxpayer subsidies for things like golf courses or rodeos that may be in their home district,” said state Rep. Tom Newell, R-Seminole. “Or they may think it’s inconvenient to make state agencies operate efficiently. But our constituents sent us to the Capitol to use common sense and fix what needs fixing. And they don’t deserve for their hard-earned tax dollars to be spent wastefully.”

Newell said the goal in releasing the list was to compile credible savings ideas from several sources. Working from this list, the lawmakers hope to encourage their colleagues to build a consensus around which areas of nonessential state spending could be trimmed over the next two years.

One source lawmakers credited was the work in recent months by state Rep. David Dank, chair of the House Appropriations & Budget Subcommittee on Revenue & Taxation, and state Sen. Mike Mazzei, chair of the Senate Finance Committee, to bring attention to ineffective corporate tax credits.

Another acknowledged source was a recently released list of state budget reduction ideas from the Oklahoma Council of Public Affairs (OCPA), a free-market think tank.

State Rep. Charles Ortega said he and his colleagues, when examining the savings recommendations from these and other sources, adopted some and left others for another day.

“The goal here is to put together good ideas from several different places and start reaching a consensus on what’s possible, both politically and practically, in order to find enough savings to phase out our income tax,” said Ortega, R-Altus. “We have great respect for the ideas put forward in recent weeks and months by Chairman Dank, Chairman Mazzei, groups like OCPA and others. Some of these ideas have legs right now, and some may not. We believe repealing Oklahoma’s income tax is essential for our state, so we’re asking our colleagues to work with us to determine where we can reduce unnecessary taxpayer expenditures in order to make it happen.”

Click here to see a list of suggested cuts

House Votes to Reduce Vending Machine Fee

Rep. Charles Ortega
R-Altus

The Oklahoma House of Representatives voted overwhelmingly today to roll back last year’s fee increase on vending machines, potentially helping many small businesses survive.

“It has become clear that we have to reassess last year’s policy decision to triple the fee on vending machine operators,” said state Rep. Charles Ortega, R-Altus.

“The fee increase was clearly excessive and now threatens to drive many operators out of business, which will ultimately reduce state tax collections. By voting to roll back the increase, lawmakers voted today to provide some support to small business owners across Oklahoma”

Last year, lawmakers voted to triple the fee paid by vending machine operators, increasing it from $50 per machine to $150 apiece. The increase was, in part, a response to last year’s budget shortfall.

House Bill 1634, by Ortega, would reduce the fee from $150 to $75.

According to Tax Commission records, there are 54,323 vending machines across the state.

Members of the vending machine association and soft drink bottlers have predicted the fee increase will result in a 30-percent reduction in machines on the Oklahoma market. If that prediction is correct, the $150 fee could actually result in a loss of $6.5 million to the state once associated job reductions are included. That is a dramatic contrast with the $8.5 million increase originally estimated.

“The $150 fee was simply bad policy and I am pleased to see such broad support for rolling it back this year,” Ortega said.

House Bill 1634 passed the Oklahoma House of Representatives on a 96-0 vote. It now goes to the state Senate.