Bid to tie tobacco tax to Oklahoma state employee pay raises dropped

Thursday, March 11th 2004, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) _ A move to tie the tobacco referendum to state employee pay raises was dropped by a Democratic House leader Wednesday night after a howl of protest from Republicans.

Rep. Billy Mitchell's plan would have spent $70 million of the $130 million the tobacco tax would raise annually.

Republicans said that amounted to a double cross of those who had lobbied for the tobacco plan advanced by Democratic Gov. Brad Henry.

A stripped-down version of Henry's proposal was scheduled for a House vote late Wednesday. The plan earmarked all of the proceeds from the proposed tax increase to health care programs.

Mitchell, D-Lindsay, won a test vote on his plan, 56-43, but then did not press for a final vote after several House members debated against the idea.

He later said he had decided to abandon his proposal because it had become ``too divisive.''

The decision came after Republicans blasted the bill as a betrayal of those who had campaigned for the tobacco bill on the promise the tax revenue would go for health programs.

Henry's plan called for a vote of the people on a net cigarette tax increase of 52 cents a pack. Of the $130 million the bill would raise, $100 million would be matched with federal funds to expand health care coverage to uninsured Oklahomans.

The Democratic governor estimated as much as $500 million could be generated to provide health care to 200,000 people. The rest of the money was to be used for a cancer center and trauma care.

Rep. Leonard Sullivan, R-Oklahoma City, said he did not understand why Democrats would engage in ``bait-and-switch'' strategy on the bill.

``You are the people who are double-crossing the public,'' Leonard said.

Mitchell said he had made a commitment to state workers months ago to try to come up with a pay increase. His plan called for a 7 percent increase for all state employees. It would have cost $35 million next year and $70 million on an annualized basis.

Rep. Clay Pope, D-Loyal, chairman of the House Revenue and Tax Committee, defended the plan because the House had already passed a general appropriations bill that spent all but less than $10 million of available revenue.

``This isn't D.C., folks. You've got to have the money. You've got to balance the budget.''

Gary Jones, executive director of the Oklahoma Public Employees Association, said he appreciated Mitchell's efforts but preferred that the employee pay raises not be tied to a public vote.

Senate Democrats are backing a $79 million raise in state worker pay over two fiscal years that would be financed from the General Revenue Fund.

Some of that funding was included in the Senate version of the $5.3 billion general appropriations bill that was passed Wednesday. That bill contains several changes from the House-passed version.