Plenty of new money, old ways to spend it
Capitol Report for dailies for week of Jan. 29, 2006
By Jim Campbell
OPA Capitol News Bureau
There's a pile of new gold on the legislative table, glistening in the spotlight of an election year - and a lot of old reasons to spend it. 
Encouraged by the best crop of growth revenue in years, the Democratic governor and lawmakers of both parties hope to make up for time lost in building roads, funding education, improving health care, strengthening fire protection and meeting such other needs as the annual crisis in corrections.
Top Republican legislative goals this election year include proposals for big permanent tax cuts and renewal of lawsuit and worker's compensation reforms. Senate Democrats, citing a survey of judges showing no litigation crisis in Oklahoma, set out their own reforms for the legal profession as part of an initiative to help small business.
Money issues aside, as much steam could be generated this year by such emotional issues as the proposed teaching of intelligent design in science classes alongside evolution.
While relishing the relative good times rising largely from soaring energy revenues, some lawmakers caution that past booms have gone bust and that taxes, once cut, can only be raised by a three-fourths legislative vote or a favorable vote of the people.
A further uncertainty lies in an Oklahoma Education Association lawsuit seeking a declaratory judgment that the state's present system is under-funded by $1 billion. Possible spending restraints for legislators in later years could come in an initiative petition for the Taxpayer Bill of Rights, certified last week by the Secretary of State's office at 299,029 signatures of which 219,564 must be found valid. 
Proposing that education receive $256 million or nearly 82 percent of revenues certified last month by the Board of Equalization, Gov. Brad Henry said, "with proper accountability and oversight, every dollar we invest in the classroom and teacher salaries will pay dividends down the road."
Henry proposed spending $520 million in state money to fix dangerous roads and bridges over the next 10 years, pumping $100 million into immediate bridge repair. His plan also would annualize about $70 million allocated to the Oklahoma Department of Transportation for debt service on road bonds.
At a news conference announcing a plan for nearly $30 million more for state volunteer firefighters, the governor and State Treasurer Scott Meacham said there should be plenty of money in a balanced budget to pay for administration spending priorities without dipping into the Rainy Day Fund.
"There are $600 million in growth revenue and another $400 million in surplus revenue from this year," Meacham said.
Similarly, in proposing $235 million in tax relief, House Speaker Todd Hiett, R-Kellyville, said, "As the majority it is our responsibility to walk out of here at the end of the session with a balanced budget."
Hiett and Sen. Scott Pruitt of Kellyville, both Republican candidates for lieutenant governor, are seeking income tax cuts.  Pruitt would chop it to 4.9 percent from the current 6.25 percent, reducing state revenues by about $481 million.  Hiett proposed 5.85 percent this session as part of an incremental decrease that might someday bottom out at three percent.
Both said the cuts would stimulate the economy and eventually offset losses in tax revenue.
"Last year, state government grew by 12 percent," said Pruitt.  "Politicians set a record by spending $200 a second and then sent taxpayers a $45 rebate check. I believe their priorities are backwards."
Hiett also will seek elimination of the state estate tax and child care tax credit for stay-at-home parents to offset the current tax credit for parents who put their children in day care.
Rep. Joe Dorman, D-Rush Springs, was one expressing concern about the competition between spending and tax cutting proposals.
"Many of these changes need to be examined and addressed," he said. "However, I am curious what programs we are going to cut or eliminate since the Republicans have announced more cuts in taxes than estimated growth revenue." 
Henry's proposals for education and transportation received tentative support from key Republicans.
Kindergarten through twelfth grade would get $156 million more in fiscal year 2007 under Henry's budget, which would fund the second year of a four-year plan to raise teacher pay to the national average.
Reps. Mark Liotta, R-Tulsa, and Jim Newport, R-Ponca City, who spearheaded the House Bill 1078 highway bill last year, attended the rollout presentation for the governor's program and indicated they are ready to negotiate.
Newport said the GOP plan could ultimately give highways more money, "but at this point" Republicans were glad to see Henry moving strongly in the same direction.
The governor's package would include a constitutional "lock-box," if approved by the voters, preventing future legislatures from diverting highway money to other uses.
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