Gov. Mary Fallin's $6.99 billion budget proposal for next year is only $52 million less than that of the current fiscal year and relies on revenue "enhancements" and "adjustments" to overcome what could become a $1 billion budget hole.
Here are the winners and losers in the governor's budget plan:
WINNERS:
TEACHERS - Fallin wants $178.4 million to fund $3,000 annual raises for public school teachers. Local districts would also be allowed to use local tax dollars to enhance salaries and benefits, freeing up $200 million currently dedicated to other purposes.
PRISONS - The governor wants to spend an additional $10 million for guards, prison operations and technology amid a growing inmate population. She also wants to reduce some mandatory sentences that keep some drug offenders in prison for years.
FOSTER CHILDREN - Fallin says $11.3 million should be appropriated to the Department of Human Services to complete implementation of the Pinnacle Plan to improve the foster care system. Oklahoma adopted the plan as part of a settlement to a class-action civil rights lawsuit over the treatment of children in state custody.
STATE CAPITOL BUILDING: - Fallin wants another $120 million bond issue to repair and renovate Oklahoma's almost 100-year-old state Capitol. Legislators approved a $120 million bond issue two years ago, but Fallin said more money is needed to complete the work. She also wants $10 million to help maintain state buildings elsewhere.
LOSERS:
SMOKERS - Fallin wants to raise $181.6 million through higher taxes on cigarettes - $1.50 per pack, which is more than double the current rate of $1.03. One in five Oklahomans smokes, and raising the tax on cigarettes might encourage people to stop smoking, so fewer smokers will reduce the amount of revenue from tobacco taxes.
TAXPAYERS - Under Fallin's budget, Oklahoma would eliminate exemptions on many goods and services. Items delivered electronically, like digital music, are currently tax exempt. Fallin also would tax certain services that are subject to sales taxes in neighboring states, and would prevent taxpayers from claiming a federal deduction for state income taxes on their state tax returns.
MANY STATE AGENCIES - Fallin proposes 6 percent budget reductions at 53 state agencies and $167.4 million in cuts to appropriations to 63 agencies. The state Insurance Department would receive no state appropriations because the state has enough non-appropriated revenue to maintain its operations. In addition, the budget proposes raising $125 million from fees and fines gathered by non-appropriated state agencies - funds that are not currently remitted to the state.
LAWMAKERS - While Fallin has laid out a plan, it is the responsibility of legislators to plug the budget hole - a task that will be particularly tough in an election year. In the past, lawmakers have been unwilling to tamper with most of the billions of dollars in tax exemptions, deductions and credits provided by the state. And Senate President Pro Tem Brian Bingman, R-Sapulpa, questioned balancing part of the budget on the backs of smokers: "I would be cautious about such a leap in the tobacco tax."
