Divide with Democrats stalls Oklahoma budget negotiations

Published 8:15 am Wednesday, May 17, 2017

OKLAHOMA CITY — One group of Oklahomans was glaringly absent from Gov. Mary Fallin’s side Tuesday as she stood flanked by Republican leaders, touting the Legislature’s latest budget compromise.

The Democrats.

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House Democrats found themselves relegated to the back of the room, listening intently — and in some cases angrily — as Republicans unveiled what they hoped would be a bipartisan budget agreement to raise nearly $400 million.

“For you to say there’s agreement, I don’t know who the agreement was with,” said state Rep. Regina Goodwin, D-Tulsa, as she confronted Fallin during an occasionally testy press conference.

In the final days of session, House Democrats complain that Republicans, who now need their support to raise revenue to fill the $878 million shortfall, have largely excluded them from budget negotiations — a strategy they contend will likely lead to a costly special session.

In recent years, Republicans have far out-numbered their Democratic counterparts. Even House Minority Leader Scott Inman admits their minority votes have been considered largely irrelevant on issues of great import to the state, including setting budget priorities.

In the shifting legislative landscape, lawmakers are struggling desperately in the final days to raise hundreds of million in new revenue to avoid deep cuts to public schools, roads, public safety, corrections and health care.

“This year their budget gimmicks have run out on them and they need our help, and I think they’re just now coming to the realization that they need us, but I don’t know whether it’s just pride or arrogance in their refusal to sit down with us at all the same table, but something is standing in the way,” Inman said.

House Republicans alone don’t hold enough seats to push through any revenue-raising measure, which by law require at least 76 votes. Republican leaders need at least three of the 26 House Democrats to break ranks and support their agenda

The Democratic caucus has said it wants Republicans to agree to raise gross production taxes that drillers pay on all oil and gas wells from 2 to 5 percent before they’ll consider supporting most Republican revenue ideas.

Still, a number of Democrats did break ranks on Monday as lawmakers rejected a $1.50 per pack cigarette tax increase. In the end, more Republicans than Democrats actually opposed the measure that would have raised $215 million.

Despite the setback, Fallin — flanked by House Speaker Charles McCall, R-Atoka, and Senate President Pro Tem Mike Schulz — attempted Tuesday to resurrect that failed proposal along with a measure that would increase the state’s gasoline tax by 6 cents a gallon.

House Democrats vehemently oppose raising the fuel tax.

The measure also would alter how oil and gas wells are taxed, though it would bring in no new immediate revenue. Currently, all new wells are taxed at 2 percent for 36 months. Under the proposal, new wells would be taxed at 2 percent for only 18 months.

McCall said 75 percent of his GOP members support raising the cigarette and gasoline taxes, but he’ll ultimately need Democratic support to push any measure through.

If the revenue measures fail this week, it will be because of Democrats, not his Republican caucus, he said.

Fallin said GOP lawmakers took a little bit of each party’s plan and put it together into a larger package that Republicans, at least, could agree on.

And though Democrats weren’t standing alongside her, Fallin argued that she spoke about budget matters with Inman on Monday when she was visiting the House floor and also at the start of session in February.

“Everybody has to come together to do what they can do to reach a final deal,” Fallin said. “I that’s what the people of Oklahoma expect of us. We’re going to provide solutions to the problems, and we’re going to get our work done.”

Janelle Stecklein covers the Oklahoma Statehouse for CNHI’s newspapers and websites. Reach her at jstecklein@cnhi.com.