Fallin, state leaders announce budget compromise

[SoonerDave]

Governor Mary Fallin and legislative leaders have announced some sort of budgetary compromise to help solve the state's budget crisis.

It appears the agreement includes a combination of changes to the Gross Production Tax and increases to the state motor fuel tax. The GPT changes appear to include a reduction from 36 months to 18 months in the time before a well is opened and taxed at the 7% rate over the more favorable 5% rate. Other details were not discussed.

Leaders indicate a vote on the package is apparently set for tomorrow (17 May).

[FighttheGoodFight]

I'm watching the press conference. Is there a link to actual bill anywhere?

[SoonerDave]

I'm watching the press conference. Is there a link to actual bill anywhere?

Not that I've found. I wish they'd talk more details. Some lady at the press conference is more or less ranting at the conference speakers and not really helping information get out.

I get the impression there may also be a cigarette tax increase as well in this package.....

...and not one outlet has a link to a document or a bill or anything that I've found. GRRRR.

[FighttheGoodFight]

Not that I've found. I wish they'd talk more details. Some lady at the press conference is more or less ranting at the conference speakers and not really helping information get out.

I get the impression there may also be a cigarette tax increase as well in this package.....

...and not one outlet has a link to a document or a bill or anything that I've found. GRRRR.

Fallin (paraphrased from presser): Cigarette tax 215 million, 177 million gas tax, on top of 60 million on other small fixes.

That is only 400 again. So I don't really know where the other 400 is coming from?

[SoonerDave]

These are numbers I'm typing in rapidly as I hear Fallin recite them, so forgive if they're wrong:

New expected revenue:
$124 M cigarette tax
$250 M fuel tax

[FighttheGoodFight]

These are numbers I'm typing in rapidly as I hear Fallin recite them, so forgive if they're wrong:

New expected revenue:
$124 M cigarette tax
$250 M fuel tax

Those might be better than my guesses. I couldn't understand her and she also said the wrong numbers three times.

[FighttheGoodFight]

Inman about to speak but News9 and KOCO cut the feed.

I assume we will know more tomorrow.

[Zuplar]

Talk about transparency.

[jerrywall]

From what I read, there's no deal. Even though it does include at least a partial increase in the GPT rate for new wells, Inman has said Dems won't support this. So unless some of them cross aisles, this is DOA.

[jompster]

Makes sense. The people who are going to hurt the most from this are low income Oklahomans if it passes. Why am I not surprised?

The GPT change is a good start I think.

[FighttheGoodFight]

What is the vote count needed to pass this budget? I thought the GOP had a super majority?

74 gop 26 dem

[gopokes88]

http://newsok.com/article/5549409?ut...n=NIC-Facebook

Link to more details

[onthestrip]

The GPT "compromise" that moves the time we tax 2% from 36 months to 18 months is a joke. A) it brings in nothing for this years budget. Zero. B) it's still shows that state republicans will try every gimmick, every other tax increase, nearly all of which are regressive, before they make oil companies pay a measly 5%.

Ask yourself, do you want to pay higher taxes at the pump, cig taxes, taxes on your cable, tax on transferring car to child all while no one will consider raising the biggest sweet heart GPT rate in the country?

[SoonerDave]

The GPT "compromise" that moves the time we tax 2% from 36 months to 18 months is a joke. A) it brings in nothing for this years budget. Zero. B) it's still shows that state republicans will try every gimmick, every other tax increase, nearly all of which are regressive, before they make oil companies pay a measly 5%.

Ask yourself, do you want to pay higher taxes at the pump, cig taxes, taxes on your cable, tax on transferring car to child all while no one will consider raising the biggest sweet heart GPT rate in the country?

Let's temper the "screw the oil companies" rhetoric with the real-world knowledge that those evil oil companies employ real, live, actual human beings who buy groceries, pay rent, income taxes, and otherwise participate in the economy. If we tax them into an uncompetitive environment, and they leave, we can feel great about screwing the oil companies, but it won't be much solace to the folks who will be out of jobs.

I'm *not* saying oil taxes shouldn't be part of this solution, not saying ANY political ox shouldn't be on the table for goring. And I'm not interested in some protracted debate about the oil tax issue. I'm just pointing out that real, working people are on the other end of those oil taxes, regardless of your or their political affiliation. I wish the budget situation were that simple.

As far as I'm concerned, bad or good, at least *someone* put *something* out there to start discussing. It could have been a starting point. But it was beaten down by politics as usual, so now we're back to nowhere with a $900M budget hole, and now a special session to try and solve it.

[onthestrip]

Let's temper the "screw the oil companies" rhetoric with the real-world knowledge that those evil oil companies employ real, live, actual human beings who buy groceries, pay rent, income taxes, and otherwise participate in the economy. If we tax them into an uncompetitive environment, and they leave, we can feel great about screwing the oil companies, but it won't be much solace to the folks who will be out of jobs.

I'm *not* saying oil taxes shouldn't be part of this solution, not saying ANY political ox shouldn't be on the table for goring. And I'm not interested in some protracted debate about the oil tax issue. I'm just pointing out that real, working people are on the other end of those oil taxes, regardless of your or their political affiliation. I wish the budget situation were that simple.

As far as I'm concerned, bad or good, at least *someone* put *something* out there to start discussing. It could have been a starting point. But it was beaten down by politics as usual, so now we're back to nowhere with a $900M budget hole, and now a special session to try and solve it.

I didn't say screw the oil companies, I said have them pay 5%, that's 2% less than Texas. Still a great deal, plus Oklahoma doeasnt add ad valorem taxes on rigs like Texas does. If 5% in Oklahoma is screwing them, then it's highway robbery in Texas.

[HangryHippo]

I didn't say screw the oil companies, I said have them pay 5%, that's 2% less than Texas. Still a great deal, plus Oklahoma doeasnt add ad valorem taxes on rigs like Texas does. If 5% in Oklahoma is screwing them, then it's highway robbery in Texas.

Exactly. I'm missing where 5% tax screws the O&G companies.

[gopokes88]

Exactly. I'm missing where 5% tax screws the O&G companies.

We have good rock Texas has great rock.

[SoonerDave]

I didn't say screw the oil companies, I said have them pay 5%, that's 2% less than Texas. Still a great deal, plus Oklahoma doeasnt add ad valorem taxes on rigs like Texas does. If 5% in Oklahoma is screwing them, then it's highway robbery in Texas.

I was speaking in broad terms about what seems a general theme of villifying the oil companies in the midst of all this, not that this or that particular proposal was being cast in such a light. There's no magic bullet from any perspective that's going to solve a billion-dollar shortfall without a lot of proverbial oxes being gored.

I'm no oil expert by any means, but knowing some folks through our church who very much are involved, I know that "oil industry" doesn't always imply some rich fat-cat kicking back and smoking a cigar and drinking brandy in some form of mogul stereotype. "Oil industry" also means working people, too, and I think that gets overlooked, that's all.

[HangryHippo]

I was speaking in broad terms about what seems a general theme of villifying the oil companies in the midst of all this, not that this or that particular proposal was being cast in such a light. There's no magic bullet from any perspective that's going to solve a billion-dollar shortfall without a lot of proverbial oxes being gored.

I'm no oil expert by any means, but knowing some folks through our church who very much are involved, I know that "oil industry" doesn't always imply some rich fat-cat kicking back and smoking a cigar and drinking brandy in some form of mogul stereotype. "Oil industry" also means working people, too, and I think that gets overlooked, that's all.

That is a very good point Dave. There just seems to be some very preferential for their industry.

[TheTravellers]

I was speaking in broad terms about what seems a general theme of villifying the oil companies in the midst of all this, not that this or that particular proposal was being cast in such a light. There's no magic bullet from any perspective that's going to solve a billion-dollar shortfall without a lot of proverbial oxes being gored.

I'm no oil expert by any means, but knowing some folks through our church who very much are involved, I know that "oil industry" doesn't always imply some rich fat-cat kicking back and smoking a cigar and drinking brandy in some form of mogul stereotype. "Oil industry" also means working people, too, and I think that gets overlooked, that's all.

But do you think that raising the GPT on the "oil industry" would really affect the "working people"? Is it enough of a burden that oil companies would start cutting back on hiring/laying people off/stop (or slow down) drilling? Personally, I (and many others) don't think so, but I'm not totally educated on the matter...

[Jersey Boss]

I was speaking in broad terms about what seems a general theme of villifying the oil companies in the midst of all this, not that this or that particular proposal was being cast in such a light. There's no magic bullet from any perspective that's going to solve a billion-dollar shortfall without a lot of proverbial oxes being gored.

I'm no oil expert by any means, but knowing some folks through our church who very much are involved, I know that "oil industry" doesn't always imply some rich fat-cat kicking back and smoking a cigar and drinking brandy in some form of mogul stereotype. "Oil industry" also means working people, too, and I think that gets overlooked, that's all.

You make a good point about the working people in this industry, but raising the tax to the regional average will not impact these folks. As noted earlier the drilling companies will not go to New Hampshire cause the rate is lower. While not a church goer, I see teachers who are subsidizing the state by providing supplies out of their pocket. I see DOC and other state workers being impacted with no raises for the last nine years. I see little kids impacted because the school is running on a 4 day week. Schools on the OK- Texas border closing due to lack of teachers who now work in Texas. These people have already been forgotten by current leadership.

[gopokes88]

The GPT "compromise" that moves the time we tax 2% from 36 months to 18 months is a joke. A) it brings in nothing for this years budget. Zero. B) it's still shows that state republicans will try every gimmick, every other tax increase, nearly all of which are regressive, before they make oil companies pay a measly 5%.

Ask yourself, do you want to pay higher taxes at the pump, cig taxes, taxes on your cable, tax on transferring car to child all while no one will consider raising the biggest sweet heart GPT rate in the country?

Just because you aren't getting your way doesn't mean it's a joke. Cutting the timeframe in half is still a tax increase. At 19months the tax rate is now 7% instead of 2%.

[onthestrip]

Just because you aren't getting your way doesn't mean it's a joke. Cutting the timeframe in half is still a tax increase. At 19months the tax rate is now 7% instead of 2%.

This deal does nothing for this years current billion dollar deficit. Also, it still allows a huge portion of the wells total output to not get taxed at a standard rate (most oil comes out very early in a wells life, then tapers off quickly). If we want to close the deficit, we need to tax the oil at a decent rate from day one. And by decent rate, I mean 5-7%, still below every other state that has oil under them.

[gopokes88]

This deal does nothing for this years current billion dollar deficit. Also, it still allows a huge portion of the wells total output to not get taxed at a standard rate (most oil comes out very early in a wells life, then tapers off quickly). If we want to close the deficit, we need to tax the oil at a decent rate from day one. And by decent rate, I mean 5-7%, still below every other state that has oil under them.

They used to taper off quickly, the stuff getting drilling today has a less steep decline curve.

And you can piss and moan all you want but calling a jump in taxes from 2% to 7% isn't a "joke". Stop being so hyperbolic.

[Jersey Boss]

They used to taper off quickly, the stuff getting drilling today has a less steep decline curve.

And you can piss and moan all you want but calling a jump in taxes from 2% to 7% isn't a "joke". Stop being so hyperbolic.

You appear to be refuting the graph in post # 48 with the above comment, could you provide a source that supports this assertion.
For the second time in this thread you incorrectly label those who have disagreement with the proposal as attempting to marginalize them by claiming they call it a "joke". Check the hyperpole please.