Last month, we wrapped up budget hearings with our largest state agencies and commissions. Our appropriations subcommittees are now working to craft our proposed agency budgets to present to the full Appropriations Committee in the next six weeks.
Some have questioned why the Senate chose not to take action in special session on the quarter percent income tax cut. For the most part, it was unnecessary since the regular session started this week. It also would be fiscally irresponsible of us to pass any tax measure before the State Board of Equalization certifies exactly how much we’ll have available to spend. While they estimated just over $13.8 billion in December, revenues can change quickly. The Board is scheduled to meet on Feb. 15, and we’ll wait until then before considering any tax reduction plans.
To remind everyone how important it is to wait for those final numbers, we need only look back at the difference between December 2022 and February 2023. In that short time, state revenues dropped $611 million. Patience and fiscal responsibility are imperative when dealing with any legislative actions that will lower future state revenues. We don’t want to unnecessarily put the state in a hole when we have to just wait a couple more weeks to know exactly how much money the Legislature will have available for spending.
The Senate has been working for two years reviewing various tax reforms to find the best solution that helps all Oklahomans. It looks like, if revenues are strong, that the Senate will pursue cutting the grocery tax, which is more equitable for all citizens and would put more money back in the pockets of hardworking Oklahomans than the quarter percent income tax reduction. Senate Pro Tem Greg Treat filed Senate Bill 1283 to eliminate the state’s portion of the grocery tax.
According to the U.S. Census Bureau, Oklahoma has the 10th highest grocery costs in the nation, spending just over $279 per week on average. While cutting the income tax a quarter percent would save most Oklahomans only around $110 after filing their taxes, eliminating the state’s portion of the grocery tax would save citizens, on average, $700 or 5.5 times more than the income tax cut.
We’ll just have to wait and see what state revenues look like and consider all our options.
With so much happening in the coming weeks, be sure to follow the Senate website at www.oksenate.gov, along with my Facebook page @ SenatorJessicaGarvin. You can also follow the main Senate Facebook @oksenate or the Senate GOP page @OKSenateGOP.
If you have any questions or concerns on legislative matters, please contact me at the Capitol by writing to Senator Jessica Garvin, State Capitol, 2300 N. Lincoln Blvd. Room 237, Oklahoma City, OK, 73105, emailing me at [email protected] or calling 405-521-5522.
