OKLAHOMA CITY – With just about a month remaining in the 2022 legislative session, Republican legislative leaders are pushing to finalize a budget deal that will probably include some type of pay increase for public safety officials and state employees, a member of the Senate’s budget committee said late last week.
State Sen. Darcy Jech, a Republican from Kingfisher, said he expects the final budget to be “relatively flat” but include targeted pay increases. “There is a lot of interest in some type of pay increase,” he said. “Especially for state troopers. It’s been seven years since the last one, so it’s needed.”
Jech said he also expected to see some form of tax relief on the sale of groceries. Right now, Oklahoma levies a 4 percent tax on grocery sales, while many municipalities add another four percent.
Jech said there were several versions of a grocery tax elimination bill alive. “I think we’re going to see some version of grocery tax relief,” he said. “But it’s a big issue. You’re talking about $300 million in tax revenue.”
Jech isn’t alone in his belief the fiscal year 2023 budget would limit spending. In January, Republican Gov. Kevin Stitt called for a flat budget and urged lawmakers to earmark millions for the state’s constitutional reserve fund.
Senate Budget Chairman Roger Thompson agreed. Thompson said he wanted to get the reserve fund “as close as possible to $2.3 billion.” In January the fund’s balance was about $1 billion.
“Now we find ourselves on the mountaintop, but the valley will come,” Thompson said at the time. “My job as appropriations chairman is not to just look at next year but to look at what’s best financially for Oklahoma five, 10, 20 years down the road.”
Jech said the agencies on his budget subcommittee – natural resources – would see limited increases and would mostly remain flat. “There may be some slight increases,” he said, “but it will vary within the agency.”
Earlier this year, the State Equalization Board certified $10.5 billion in revenue for allocation by the Legislature. That figure, though, included more than $1 billion in one-time funds.
In addition to a change in the grocery sales tax, lawmakers have also pushed proposals that reduce the personal income tax, corporate income tax and legislation that would modify the way sales and excise tax are calculated on vehicle sales.
Jech said legislation such as Senate Bill 1318 would provide some tax relief to Oklahomans.
“We know reliable transportation can be a barrier for many, so easing the burden of buying a car or truck by only taxing the total cost of the purchase could help many families needing a new vehicle,” he said in a media statement. “Additionally, giving more time for Oklahomans to register their car with the state and pay the taxes and fees that go along with it would help spread out the cost of the purchase.”