Wednesday, January 9, 2008

COMMENTARY: Ford Center tax proposal a bad idea...

So Oklahoma City mayor Mick Cornett wants to bring an NBA team to town.

And Cornett’s buddy, businessman and NBA fan Clayton Bennett — plus a cast of favorites — purchased the Seattle SuperSonics.

Then Bennett and company decide Seattle wasn’t being nice to his team and they should move it to Oklahoma City.

Further, since Seattle wouldn’t give into Bennett’s extortion, he threw a tantrum to justify his reason for pulling up stakes.

I know, you’ve heard all this before.

And, at this point, the debate is nothing more than a fight between millionaires.

“These are significant issues dealing with big numbers of dollars in taxpayer money,” Cornett told the Daily Oklahoman’s John Estus. “These are significant decisions, and we’re asking people in a matter of weeks to make up their minds. We’ve got a lot to do in a short time.”

Yeah, come up with a bad idea and try to shove it down the public’s throat quickly.

For the record: I have some swampland near Guthrie I’d like to sell you, too.

While I’ve said — and written — before that Bennett’s actions toward the people of Seattle have given Oklahoma a bad name, the proposal to have taxpayers foot the bill to upgrade the Ford Center so Bennett will bring his team here is even worse.

Public money for a private gain.

Bull.

If Mr. Bennett wants to spend his fortune (and, apparently, the fortunes of others) on a basketball team that’s fine.

And if he wants to try and extort money from the good people of Seattle, so be it (of course if I were him I wouldn’t travel there any time soon).

But now Clay, Cornett and company are playing on the home court.

And the voters should flush their plans.

The original MAPS proposal was a great idea.

As was MAPS for Kids.

But MAPS for Millionaires is a stupid, silly concept that does nothing but help make a few rich people richer.

And it’s not good public policy.

Rest assured chamber officials, Bennett and company and other insiders will do everything possible to sell this snake oil as economic development. They’ll tell you how Oklahoma City will move into the big leagues with its own NBA team.

They’ll tell you how much money the team will generate.

And they’ll tell you what a swell idea it is to have a Sooner state NBA team.

Don’t believe them.

Tell them ‘no.’

I find it ironic that Oklahomans will raise cain about taxes and even force a public vote on a tax for our schools, and in the same breath, come begging hat in hand for public funds so a millionaire will being his basketball team to Oklahoma City.

The whole idea would be funny if it wasn’t so stupid.

Cornett, Bennett and others should be ashamed they’ve even asked. With thousands living in poverty, the economy struggling and our schools and infrastructure needing million of dollars in improvements, earmarking taxpayer money to help a millionaire support hisbasketball team is the last thing we should consider.

And it shows just how messed up our priorities are.

Wesselhoft back with more dog legislation

OKLAHOMA CITY — Despite two previous legislative setbacks, state Rep. Paul Wesselhoft confirmed this week he would again author legislation to prevent attacks by vicious dogs.

Wesselhoft’s previous bills — written in 2006 and 2007 — attempted to outlaw pit bull dogs, and would have allowed communities to outlaw dog breeds they considered a public health risk. Both bills were put down by legislative committees.

This year, the Moore Republican said, he plans to write a proposal which is “non-breed specific.”

“This bill is modeled after similar legislation which passed in Texas,” he said. “It passed their Legislature and was signed by the governor.”

In Texas, Wesselhoft said, lawmakers approved the legislation “because three or four adults were killed by pit bull attacks.”
“They had many maulings by pit bull, so they developed legislation which was non-breed specific.”

Wesselhoft said his new proposal could make a dog’s “first-bite” a felony.

“If a dog gets off its property and if that dog attacks someone and if that attack is serious — that is if a prudent person would seek medical help — then my legislation calls for making that attack a felony offense with a mandatory 20 days in jail,” he said.

Wesselhoft said a serious attack would include deep, penetrating wounds, torn muscles or a wound requiring sutures.

“My bill will make people hesitate when purchasing pit bulls because it would be a felony if the dog bit someone,” he said. “You will think twice before you buy.”

Should the bill become law, Wesselhoft said he hoped it would “dramatically” reduce the state’s pit bull population.

“It will make people think,” he said. “And I hope it will reduce the number of attacks.”

At least twice, since 2004, Wesselhoft has authored legislation to outlaw pit bulls. Both times his bills have failed to make it out of the House of Representatives.

His most recent proposal, HB 1082, would have allowed communities to outlaw dog breeds they considered a public health risk.

That bill, he said, was blocked last year by Tulsa Republican Sue Tibbs.

“I’m amazed I didn’t get it out of committee,” Wesselhoft said last May. “I am not presenting a bill that outlaws any particular breed of dog. But I’m trying to give that right to cities who have daily interaction with dog owners and victims of dog attacks.”

Across the state many dog owners lobbied against the proposal.

“Animals are like people; some are just bad, some are not,” Tibbs said. “But most are good-natured and take on the nature of their owner.”

Tibbs said Wesselhoft’s legislation wasn’t needed because the state, “already (had) laws on the books about vicious dogs.
And research has shown that allowing municipalities to decide issues such as this on their own, doesn’t work.”

Wesselhoft said he will introduce his bill when state lawmakers return to the Capitol in February for the 2008 legislative session.

Monday, January 7, 2008

Lawmakers should be prudent with budget, taxes, Meacham says

State lawmakers should be conservative in their spending and in their plans to additionally reduce taxes, the state's top budget official said Sunday.

State Treasurer Scott Meacham -- who also serves as Gov. Brad Henry's cabinet secretary for revenue and finance -- urged lawmakers to hold the line on spending increases and new tax cuts during the upcoming legislative session until officials know how the latest round of tax reductions and spending will affect the state's revenue picture.

The Oklahoma Legislature reconvenes in February.

"Our rate of growth has slowed significantly," Meacham said. "And prudence dictates we don't make a lot more commitments; both on revenue reduction and expenditures in this environment."

Lawmakers, Meacham said, have passed major tax cuts and spending initiatives during the past few years and the effects of both just now are being felt.

"At this point, with state revenue slowing down and our spending commitments, we need to assess things. We just enacted the largest tax cuts in state history, we need to see how that will go."

Financial data seems to support Meacham.

November tax revenues, he said, showed "marginal improvement" from October, and failed to meet collections from the prior year.

Additionally, tax records show that net income tax and gross production collections failed to meet the estimate, while sales tax was equal to the estimate.

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

That amount, Meacham 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 in a recent media release. "Compared to the previous month, November's collections have improved -- but only slightly. We hope the (recent) ice storms won't significantly curtail retail spending in the coming days and weeks and our economy will pick up strength."

With the 2008 Legislative session only weeks away, Meacham said lawmakers should take a "conservative approach" with the state's budget.

"We need to be more conservative on both sides," he said. "We've just gone through the highest four years of growth in state history, we're spoiled a little bit."

Meacham's call is drawing support from both Democrats and Republicans.

Last fall, former Governor David Boren -- now the president of the University of Oklahoma -- urged legislators to put a moratorium on future tax cuts.

"I think we ought to have a moratorium on tax reductions right now," Boren, a Democrat, told the Associated Press in September of 2007. "I think we're bumping the limits and I think we certainly don't need to proceed down that path."

Since then, other lawmakers, including Moore Representative Paul Wesselhoft, have taken a "wait and see" attitude about addition revenue reduction.

"Don't get me wrong, I support tax cuts," Wesselhoft, a Republican said. "But I think we need to see what the effect of our recent cuts will be. We need to see the whole picture and what our needs are."

Advice that Meacham supports.

"I believe that soon, we're going to get to a point our rate of growth is not fast enough to keep up with our rate of spending," he said. "And when we hit the point were those two lines cross, we've gotta decide 'where am I gonna cut?' We could be making tough some tough decisions soon, as soon as two years."

Sunday, January 6, 2008

Immigration, corrections and education will top 2008 Legislative session, county lawmakers say

OKLAHOMA CITY — Call it the problem of “what they need to be doing versus what they’ll get to do.”

With just over five weeks left before lawmakers return to the state capitol, the list of issues needing legislative action grows almost daily — education funding, teacher pay, health care, transportation, corrections and, of course, the budget all “desperately need attention.”

But many legislators — including some from Cleveland County — are concerned those issues will take a back seat to one which has dominated the state’s political landscape for more than a year: immigration.

And some worry the issue — like Frankenstein’s monster — just won’t go away.

With Moore Rep. Randy Terrill’s recent announcement that he plans to file the “son of” his previous immigration bill, House Bill 1804, some state lawmakers worry Terrill’s newest bill could divert attention from many other pressing issues.

“Immigration, it’s an issue that shouldn’t be No. 1, but it is,” said state Rep. Bill Nations, a Norman Democrat. “We ought to be talking about education and health care and other things, but Rep. Terrill has us talking about immigration.”

And that debate, Nations says, is a distraction.

“They should be dealing with it in Washington, D.C,” he said. “The bill that Randy wrote is causing economic hardships. It’s going to distract us from dealing with more important things. But you can rest assured there will be a lot of press and immigration will be a front page issue.”

Instead, Nations said, lawmakers should be working on issues such as health care.

“We need to look at some type of universal health care for children,” he said. “I don’t know if we are where it can happen, but there is a moral obligation to see if we can cover all the children in Oklahoma.”

And while Nations says lawmakers and policy experts haven’t solved the health care problem yet, he believes there is hope.

“State Insurance Commissioner (Kim) Holland’s task force isn’t quite finished with its study,” he said. “She and I have talked and I may be pushing their timing, but I believe there is a need to keep the conversation in people’s mind. We have a need and responsibility to do that.”

But health care isn’t Nations’ only concern.

A slow down in growth has the five-term Representative cautious.

“Our budget will be fairly quiet,” he said. “It’s not so bad a revenue picture that we’ll have to make drastic cuts.”

That is, cuts in spending or cuts in the tax rate.

“I certainly hope we don’t try any more tax cuts,” he said. “I agree with (OU President) Boren and the State Chamber of Commerce. We can’t afford any more tax cuts at this point. We already have incredibly low taxes and, by any way you want to slice it, we need to hold off on any future ones.”

An idea that some of Nation’s more conservative colleagues support.

“I think we’ll probably have to assess our situation,” said Moore Republican Paul Wesselhoft. “We don’t know how important additional tax cuts will be until we can see what our needs are and know how much money is available.”

Wesselhoft, who says “he’s not against tax cuts” said lawmakers should “exercise some caution” with future reductions in state revenue. “I read what President Boren had to say,” he said. “You’ve got to see the whole picture and see what the needs are.”

For Wesselhoft, those needs include repairing the state’s ailing roads and bridges and reducing the number of inmates in the state’s corrections system.

“The most important issues are roads and bridges and the corrections system,” he said. “We’re going to have a tighter budget than we did last year and getting our roads and bridges repaired and answering the problems with the corrections department, those issues should be our focus.”

To do that, Wesselhoft said he wants to earmark all the state’s growth revenue — about $32 million — for road and bridge repair.

“That means it won’t go to teaches salaries,” he said. “But infrastructure is not a sexy topic. It doesn’t lend itself to political rhetoric and gamesmanship. It’s not a ribbon cutting kind of policy.”

The state’s bridges, he said, are crumbling.

“Chunks are falling through windows and killing our citizens. That should send a chilling message to lawmakers. It’s a concrete example of why we should invest in infrastructure.”

Wesselhoft also wants to reduce the number of inmates in state prisons by expanding the use of community based sentencing programs, alternative forms of incarceration and drug courts.

“We have an overcrowded prison system,” he said. “We need to give more thought to putting those incarcerated for drugs into different programs. We are going to have to develop an alternative system, such as community sentencing for these people.”

State Sen. John Sparks, a Democrat, agreed.

“We should look at the reasons for incarceration,” he said. “We should decide if we can use alternative sentencing more.”
The issue, Sparks said, comes down to money. “Without over simplifying the deal it comes down to this: How much do we want to pay to keep people in jail?”

Sparks says he would rather earmark state revenue for education.

“We need to get a handle on our higher education system,” he said. “I think everyone would agree that higher education benefits the state. The numbers don’t lie. If you don’t have a healthy, well educated work force, economic development isn’t going to happen.”

Sparks said the state “needs to step up” and make higher education a priority. “It’s important to understand, this isn’t a sprint, it’s a marathon. It’s a commitment, a long term commitment. We’re not going to fix the problem in one year. It’s going to be an ‘every year’ issue that is going to take an ‘every year’ commitment.”

For state Rep. Scott Martin, a Norman Republican, the focus will be on transportation issues.

“We’re going to look at removing the trigger and the cap on transportation spending,” he said. “So I’m sure that will be something that’s heavily debated and discussed.”

Two years ago, Martin said lawmakers passed legislation which had a 3 percent growth trigger. “If growth hit 3 percent, there would be additional funding to the Oklahoma Department of Transportation,” he said. “If it didn’t there would be extra funding, but not as much.”

And while growth didn’t reach the 3 percent threshold during last year’s legislative session, Martin said it hit the mark after the session, but lawmakers “weren’t able to go back and appropriate additional funds for roads and bridges.”

“I’d like to review that,” he said, adding that he also wants to reapportion fuel taxes which should be going for transportation issues but currently are not.

Like Martin, state Rep. Wallace Collins agrees that lawmakers should focus on transportation. But unlike Martin, Collins, a Democrat from Norman, said that discussion will probably be on light rail.

“We should be looking at transportation issues,” he said. “And we’ll probably be dealing with rail, it will get some attention. But I don’t think ethanol as an alternative fuel is going to solve much of anything. I think it’s a distraction.”

Education and mental health, he said, along with the state’s prison system and pay raises for state employees “all need to be dealt with.”

“It’s vital that we deal with them,” Collins said. “I just hope we won’t get bogged down with immigration and more tax cuts.”
Editor’s note: Despite repeated attempts, State Rep. Randy Terrill, Sen. Jonathan Nichols or Sen. Anthony Sykes could not be reached for this story.

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.