OKLAHOMA CITY – State lawmakers – facing a rapidly approaching general election in November – spent the better part of last week in special session, spending more than $1.4 billion in federal COVID-19 relief funds. The funds make up the bulk of the state’s $1.8 billion in federal American Rescue Plan funds.
During the regular legislative session in the spring, the Legislature formed a joint committee and sought input from the general public on how to spend the relief funds.
State Sen. Roger Thompson, R-Okemah, said lawmakers received more than $18 billion in requests from the public, though only a small portion of those requests were funded.
And while a large majority of the funding requests that were previously approved by the Legislature’s joint committee were passed and sent to the governor, some proposals that would have funded several nonprofit organizations stalled.
Those projects included:
• $50 million to the OK Primary Care Association for capital needs at the organization’s various locations.
• $30.1 million to Boys & Girls Club Inc., to build out mobile RV units that will have specialized programming for areas where the Boys & Girls Club does not have a physical presence, and for capital needs at their 96 locations.
• $30 million to Oasis Fresh Market to help Oasis expand its footprint across the state.
• $25 million to the YMCA of Oklahoma to expand access to child care outside school hours at facilities across the state.
• $25 million for Nonprofit Support to establish a grant program to help organizations replace lost revenue due to COVID-19.
• $10 million to the Oklahoma Arts Council for a grant program to be administered by the Arts Council, with 50% of the funds going to rural arts nonprofits and 50% to Oklahoma City and Tulsa.
• $9 million to the Potts Family Foundation to fund creation of a grant program that will help programs that are serving young Oklahomans who have suffered setbacks during the pandemic.
• $5.2 million for Dental Foundation for the creation of five mobile units to expand their current mobile dental clinic.
• $3 million to Food on the Move to help fund its first Food Hub, which will bring small/local farmers and independent sellers together to buy and sell products.
• $2.8 million to the YWCA to help build one- and two-bedroom apartments to house youth aging out of foster care.
• $2 million to the Family Safety Center to go towards their total need of $27 million for a new facility.
• $1 million to The Spring, a faith-based shelter for victims and their children, for facility needs.
• $700,000 to the Parent and Child Center of Tulsa for two intervention programs to prevent child abuse in high-risk communities and better integrate fathers who live separately from their children.
Sources tell The Ledger the proposals remain alive and are being reviewed by legislative leaders.
The Legislature also leveraged general revenue funds with federal relief funds to allocate millions for infrastructure projects across the state and address drought relief and allocated almost $400 million for broadband internet service.
In addition, lawmakers earmarked more than $170 million for public health programs, more than $200 million for workforce development, $300 million for water and water infrastructure projects and $247 million for mental health care.
One measure, Senate Bill 3, sparked some intense debate after the bill was amended to include a clause that prohibited the OU Health Science Center from performing gender reassignment medical treatment. The bill appropriated $108 million to the OU Health system.
The measure was amended to include gender reassignment prohibition after several lawmakers complained about a program at the health center known as Roy G. Biv. That program, which OU officials said was more than seven years old, provided gender-affirming treatment and services to the LGBT and trans communities.
The measure, complete with its amendment, passed the House and Senate.
Still, spending federal dollars wasn’t the only issue during last week’s three-day session. Legislative leaders also went back and forth with Gov. Kevin Stitt over the governor’s call for additional tax cuts.
Stitt has pushed the Legislature to eliminate the state’s portion of the grocery sales tax. Several bills that reduced the sales tax were developed during the spring legislative session, but none made it to the governor’s desk.
Republican lawmakers said they supported additional tax cuts but added that wanted to do those cuts “in the right way.”
“Philosophically, I am for lower taxes,” Senate President Pro Tempore Greg Treat said in a media statement. “Last year, I championed tax cuts and the members in the Senate were able to send responsible tax cuts and inflation relief to the governor’s desk.
“I’m proud to be part of the leadership in the state of Oklahoma, who has contributed to our current record savings, made critical investments into essential services, while living within our means. As we enter a recession, we must remember just a few short years ago we were scrambling with a $1.3 billion shortfall. We must be mindful and do tax cuts the right way.”
Treat, a Republican from Oklahoma City, said he created appointed a tax policy working group to address the issue of addition tax reductions.
“The members of this group are making serious strides to a long-term, sustainable plan to responsibly cut and reform taxes in our state,” he said.
Treat told reporters last week that the tax policy group had examined a grocery tax reduction proposal and “didn’t think that was going to provide the most relief to individuals.”
“I’m a believer in trying to do something on the grocery tax,” he said. “So, nothing is off the table.”
The Legislature will convene for its next regular session in February 2023.