A reduction in the state's income tax rate that went into effect on Jan. 1 for most Oklahomans would be rolled back under a bill passed easily on a bipartisan vote in a Senate panel.
Despite objections to the bill from both Gov. Mary Fallin and House Speaker Jeff Hickman, the Senate Finance Committee voted 10-2 on Tuesday to advance the bill to the full Senate.
Committee Chairman Sen. Mike Mazzei wrote the bill and says the reduction in the state's top income tax rate from 5.25 percent to 5 percent should not have gone into effect amid a revenue failure.
"If we don't address this financial crisis wisely, we will unfortunately see education take the brunt of the hit, with the reduction of probably over $400 million," says Mazzei. "In addition to that, there will be widespread significant cuts that will affect public safety and health care, and negatively touch the lives of every Oklahoman in the state."
Mazzei says the bill would only delay the timing of the tax cut and would be re-enacted once the state's revenue funds are in a healthier state.
"It would require growth to be in place, where our economy and oil and gas industry were on a new, sounder footing," says Mazzei.
Oklahoma is facing an estimated hole in next year's budget of about $1.3 billion, or nearly 20 percent of last year's spending.
