Thursday, January 3, 2008

COMMENTARY: About that New Year thingy...

With the closing of 2007, we Oklahomans have put to rest another difficult, turbulent and, at times, wonderful year.

The year known as 2007 brought us death, destruction and, in some portions of the world, chaos.

And still, somehow, we survived.

Here in Oklahoma — and throughout the rest of the country — we have see the worse nature and our fellow man have brought.

And yet, we remain resilient.

Be it ice storms, political chicanery or tornadoes, Oklahomans are survivors.

Maybe it’s the red dirt under our fingernails.

Or the stubbornness in our hearts.

Whatever the reason, we Sooners always bounce back.

And, now with a new year facing us, we have the chance to, again, start over.

A chance to make 2008 better than 2007.

With that in mind, here a list of ways I believe we could make 2008 a great year.

• Get the mayors, vice-mayors and other city leaders together with the leaders of the all the state’s electric utilities and develop a game plan to bury all powerlines underground, across the state over the next decade.

Yeah, it will cost some money, but we can either pay the cost in damages or in better infrastructure.

• Expand the school year, and increase teacher (and support staff) pay. It’s time to stop dinking with education and get serious. Sandy Garrett is right, lengthen the school year. Secondly, move our teachers out of third world employee status and pay them a decent wage.

• Develop a statewide bond issue to repair and replace our ailing bridges, roads and highways. Oklahoma has let its transportation system fall apart and most lawmakers have done little more than give the issue lip service and a few million here or there. Like education, it’s time to invest heavily in our infrastructure.

• Offer a student loan reduction incentive for all Oklahoma college graduates who stay and work here after they graduate. This has been used successfully in the medical profession — let’s take it statewide.

• Invest millions more in our public libraries and charge the libraries of this state with fighting illiteracy. There’s a public library in almost every town in Oklahoma. It’s time to fund them properly and make them the central cog to encouraging literacy.

• Eliminate tuition at any Oklahoma institution of higher learning for Oklahoma high school graduates. You want and educated workforce, here’s the way to do it.

• Rewrite our state tax policy from the ground up; outlaw tax reduction incentives for idea such as Clay Bennett’s professional basketball team, and instead, develop a progressive policy based on income level. Taxes in Oklahoma and American hit the poor and the middle class with a higher percentage than the rich.

• Rewrite the state’s (and the country’s) child custody laws, to ensure the rights of both parents and eliminate the stupid idea of child support in cases of joint custody.

• Encourage personal accountability. You life is your responsibility, live that way.

• Encourage faith. Believing in something great than yourself is inherent in our nature; tolerance of other faiths and believes should be a foundation of our lives.

And finally, encourage peace.

I’ve always found it ironic that people will spend the entire month of December speaking about “peace on earth and goodwill toward men,” then promptly forget it on Jan. 1.

Let’s change that.

Let’s make 2008 a shining example of what humanity can do. God knows we’ve had lots of experience in show the world just how poorly we can behave.

Gumm files "Freedom from Hunger Act"

OKLAHOMA CITY — A southern Oklahoma state Senator has filed legislation to eliminate the state sales tax on groceries.

State Senator Jay Paul Gumm, D-Durant, recently filed Senate Bill 1153, the “Freedom from Hunger Act.”

Gumm said the act would save state taxpayers “millions of dollars.”

The measure would remove the state’s portion of the sales tax on groceries — currently 4.5 cents per dollar spent.

“If enacted, the bill would save Oklahoma families 4.5 cents on every dollar they spend at the grocery store. Families spending $500 per month on groceries would save $270 annually on sales taxes under the bill,” he said.

Gumm said “working families are feeling the pain” of all-time high gas prices, and could use the relief at the checkout stand when they buy food.

“Eliminating this unfair tax will allow Oklahomans to have more money in their pockets to spend on necessities and to boost their local economies,” he said.

The proposal is Gumm’s third try at the tax.

He introduced similar legislation last year, but that bill never was granted a hearing in the Senate Finance Committee.

Gumm said his previous bill faced fierce opposition from the Oklahoma Municipal League (OML) — an organization that lobbies on behalf of Oklahoma cities and towns.

“The (OML) fears the measure would strip cities’ and counties’ ability to tax groceries,” he said.

Gumm said that is “simply not true,” as his bill would not affect cities and counties. “The ‘Freedom from Hunger Act’ clearly allows cities and counties to continue taxing Oklahomans’ food, just like OML wants.”

He said the state’s participation in the Streamline Sales Tax Agreement would not allow a city or county option to end the tax on a jurisdiction-by-jurisdiction basis; the ability to tax an item must be uniform across a state under the agreement.

“Even though I would like to do away completely with the grocery tax, I realize OML would not allow that proposal to become law. Despite OML’s rhetoric to the contrary, their sales tax base is preserved under the bill.”

Gumm cited OML’s long opposition to the “Back-to-School” sales tax holiday as evidence the group “will pull out all the stops” to protect their sales tax base. Despite evidence that such a sales tax holiday would actually increase municipal revenues, OML stopped that bill cold for years before it finally passed in 2007.

“Getting rid of the state grocery tax is too important to risk on political gamesmanship,” Gumm said. “Removing the state’s portion of the grocery tax will make a real difference in the lives of Oklahoma families, and it is something to which I am deeply committed.If we aren’t successful this year, it will be back every year until it becomes law or my time in the Senate is complete.”

The measure will get its first hearing in February when the Oklahoma Legislature returns to Oklahoma City.

State revenue shows "marginal" improvement

OKLAHOMA CITY — State revenue collections for November showed “marginal improvement” from October, but still failed to meet collections from the prior year, State Treasurer Scott Meacham announced recently.

Mecham said net income tax and gross production collections failed to meet the estimate, while sales tax was equal to the estimate.

Preliminary reports show general revenue fund collections totaled $403.6 million for the month of November.

That amount, Mechan said, is $27.4 million — almost 6.5 percent — below the same month of the prior year and $11.4 million or 2.7 percent below the estimate for the same period.

"It would appear the growth of Oklahoma's economy has slowed," Meacham said. "Compared to the previous month, November's collections have improved - but only slightly. We hope the ice storms won't significantly curtail retail spending in the coming days and weeks and our economy will pick up strength."

In October, revenue collections fell short of the estimate and prior year collections in three of the four major tax categories. Collections that month missed the estimate by $16.6 million or 3.6 percent.

In November, Mechan said earnings on investments made by the

Treasurer’s office — the state's largest source of non-tax revenue — totaled $16.5 million, about 3.8 percent above the same month one year ago.

The combination of individual and corporate income tax returns totaled $153.8 million for the month; about $29.4 million or 16 percent below collections of one year ago and $2.7 million or 1.7 percent below the estimate.

Personal income tax collections for the month totaled $153.8 million, which is $25.6 million or 14.3 percent below the prior year but equal to the estimate. Corporate income tax collections were less than corporate income tax refunds for the month and are shown as zero. Variances in corporate collections are common on a month-to-month basis.

The state sales tax produced $131.1 million for the month of November, which is $5.6 million or 4.4 percent above the prior year and equal to the estimate.

The Gross Production tax on natural gas yielded $46.5 million during the month, which is $0.4 million or 0.9 percent above the priorz year but $3.2 million or 6.3 percent below the estimate.

Motor vehicle tax receipts, which come primarily from vehicle sales and licenses, produced $20.8 million in the month.

That is $4.1 million or 16.6 percent below the prior year but $0.4 million or 1.8 percent above the estimate.

Other Revenue, which includes investment earnings along with taxes on insurance, alcoholic beverages and others, produced $51.5 million during November. This is $0.2 million or 0.3 percent above the prior year but $5.9 million or 10.3 percent below the estimate.

For the first five months of the fiscal year, collections total $2.314 billion. That is $27.4 million or 1.2 percent below the same period of the prior year but $67.2 million or 3 percent above the estimate.