House narrowly defeats tax trigger repeal

Thursday, February 21st 2002, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) _ A Democratic attempt to roll back an automatic increase in the state income tax was narrowly defeated in the state House Wednesday after the legislation was hijacked by Republicans.

The measure, which would cut state revenues by almost $90 million, was heavily amended by GOP House members who stripped it of a provision that made the rollback contingent on a corresponding 1.82 percent across-the-board cut in state agency budgets.

Republicans also restored the measure's title, a move that would have sent it straight to the governor if passed by the Senate, before it failed on a 50-48 vote _ one short of the 51-vote majority needed in the 101-member House.

Afterward, Minority Leader Fred Morgan, R-Oklahoma City, described the legislation as ``a cynical ploy'' at tax reduction.

``If we're serious about cutting government, then we should do it,'' Morgan said.

``I do think they were trying to be a little cute today. And it backfired on them,'' Morgan said.

Lawmakers and other state officials have taken the state to court to challenge an automatic increase in the state's income tax rate triggered by the state's budget shortfall.

The increase from 6.75 percent to 7 percent was triggered when the Board of Equalization estimated that revenues for the 2003 fiscal year would be less than the board's estimate of 2002 fiscal year revenues.

The board on Tuesday estimated that next year's shortfall will total $350 million.

Rep. Clay Pope, D-Loyal, authored a bill to repeal the automatic tax increase that also included a blueprint for cutting state agency budgets.

Pope said he included the cuts to comply with the state constitution's balanced budget requirement and to be ``intellectually honest'' with taxpayers.

``We should have the moxie to show where the cuts are going to be,'' Pope said.

But Rep. Bill Graves, R-Oklahoma City, successfully amended the measure to delete the mandated cuts and a section of the bill that made the tax rollback contingent on the cuts.

``This would just guarantee we don't raise taxes,'' Graves said. He also said that all agencies do not need to be cut their budgets by the same percentage.

``We're still in charge of the purse out here and we decide what goes where,'' Graves said.

Pope said his across-the-board proposal would trim more than $30 million from the budget of public education.

``Do we have to cut all these programs?'' said Rep. Wayne Pettigrew, R-Edmond. Pettigrew said lawmakers need to cut programs that ``are least needful and keep the ones that are most needful.''

``These are cuts that are going to have to come. But there is a better solution to slicing and dicing everyone,'' he said.

With the GOP amendments approved, Democrats _ including Pope _ debated against the Democratic bill.

``I guess you've got to be careful what you ask for,'' Pope said.

``Oklahoma, we're still healthy if we can resist the blind, pathetic move to drain state revenue,'' said Rep. Fred Stanley, D-Madill.

The chairman of the powerful House Appropriations and Budget Committee, Rep. Mike Mass, D-Hartshorne, said approval of the income tax rollback would be ``a blow to our state.''

``All this political grandstanding will hurt Oklahoma families,'' Mass said. ``It's a choice you're going to get to make.''