After Closer Look at GOP Proposal, Senate Democrats Conclude Henry’s Health Care Plan Still Best for Oklahoma

While praising Senate Republicans for stepping forward with an 11th-hour proposal Tuesday, Senate President Pro Tempore Cal Hobson said today that he will support moving forward with Governor Brad Henry’s tobacco tax plan and health care initiative.

The Senate Republican plan, Hobson said, simply calls for too large of an increase in the per pack tax on cigarettes given the tobacco tax rates throughout the region.

“When you look at the taxes in other states, Oklahoma can’t afford to raise its cigarette tax to the level Republicans in the Senate propose. I, too, began this fight seeking $1 increase in the cigarette tax, but the reality is that the taxes in states surrounding us are such that a net increase of 99 cents in the Oklahoma tobacco tax would be too high,” Hobson said.

Several surrounding states are currently considering cigarette tax increases and should the regional climate change, Hobson said he would consider joining Republicans in seeking to increase Oklahoma’s tobacco tax again next year.

Henry on Tuesday released the details of a compromise plan that calls for a net 55-cent increase in the Oklahoma cigarette tax to fund an important list of health care initiatives.

Hobson praised the Henry plan Tuesday, but also didn’t close the door on the Senate GOP proposal offered just hours later. That plan called for a net 99-cent increase in the tax on a pack of cigarettes and funded basically the same health initiatives as the governor’s plan.

“It’s extremely gratifying to have our Republican colleagues acknowledge the pressing health care needs of our state in their proposal. I’m encouraged that Senator Williamson and his caucus recognize the seriousness of Oklahoma’s health crisis and agree with Governor Henry in how best to address it,” Hobson said.

The Senate leader said he was also encouraged Tuesday by Senate Republican Leader James A. Williamson’s assertion that the GOP plan could garner the three-fourths super majority needed to pass the tax hike in the Legislature without sending it to a vote of the people.

But, Hobson said, his enthusiasm on that front was short lived when House Minority Leader Todd Hiett did not indicate support for the Senate GOP plan in a late afternoon meeting and suggested several changes.

“We said we’d take a closer look at the Senate Republican plan and we did. In addition to a tax increase we believe is just too high, we found some other troubling aspects of the plan. The truth is, however, that even if we could embrace that plan, the House Republican leader wouldn’t support it and the measure would never pass with a three-fourths majority,” Hobson said.

The Senate leader said that in addition to the size of the tax increase, the Senate GOP’s spending limits proposal could possibly jeopardize the governor’s plan to raise teacher’s salaries in Oklahoma to the regional average over the next four years and would require more study than would be possible in the waning days of the session. Also, Hobson said, Senate leaders are concerned that the so-called parity language could abrogate the state’s tobacco compacts with Native American tribes, giving tribal smoke shops an enormous competitive advantage over non-tribal retailers.

“On the whole, however, when you compare the two plans, there are more similarities than differences. Given that the members of the Republican caucus in the Senate have acknowledged Oklahoma’s health crisis and agreed with Governor Henry on how best to address it, I am hopeful they will join us is supporting the governor’s plan,” Hobson said.