2006 LEGISLATIVE SUMMARY AND FY 2007 BUDGET REVIEW
We are pleased to present the 2006 Legislative Summary and
FY 2007 Budget Review. Included within
this document are summaries of all substantive bills and resolutions enacted in
the 2006 session and information on appropriation measures and the state budget
adopted by the Legislature for FY 2007.
The summaries contained herein have been prepared by the
following Senate Committee Staff personnel:
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Tom
Stanfill, Legislative Analyst, Senate Aerospace,
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Melanie
Stucky, Staff Attorney, Senate Education and Health & Human Resources
Committees
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Information on appropriation measures and the state budget
has been prepared by the following Senate Fiscal Staff personnel:
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Amy
Dunaway, Fiscal Analyst, Subcommittee on Natural Resources and Regulatory
Services Subcommittee
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We also appreciate the assistance of Liz Park-Capron and
Caroline Dennis
Director of Senate
Agriculture
& Rural Development Measures
Banking,
Finance & Securities Measures
Crimes,
Punishments & Criminal Procedures Measures
Office
of Juvenile Affairs Funding
Economic
Development & Commerce Measures
Common
Education (K-12) Funding
Postsecondary
Education Funding
Career
& Technology Education Measures
Career
& Technology Education Funding
Conservation
Commission Funding
Department
of Environmental Quality Funding
Gaming,
Sports & Amusements Measures
Government
Measures (County, Municipal & Local)
Department
of Central Services Funding
Health
& Mental Health Measures
Mental
Health & Substance Abuse Funding
Department
of Rehabilitation Services Funding
Intoxicating
Liquor, Smoking & Tobacco Measures
Motor
Vehicles, Water Vessels & Licensing Measures
Professions
& Occupations Measures
Public
Safety & Homeland Security Measures
Public
Employees-Retirement/Insurance/Pay/Benefits Measures
Office
of Personnel Management Funding
State
Employee Pay Raise Funding
Telecommunications
& Technology Measures
Department
of Transportation Funding
Veterans
& Military Affairs Measures
In the second session of the 50th
Legislature, the O
The 2006 legislation session began with a
“Celebration of Life” ceremony to honor Sen. Robert M. Kerr, who lost his long
fight against cancer just days before the legislature was to convene.
The 2006 session also mar
Two new members were welcomed to the chamber
this year, with long-time staffer turned-Senator
The Second Extraordinary Session of the 50th
Legislature was called and convened on May 25th to consider budget,
tax and other fiscal matters. The
Special Session reconvened on June 21st to complete the legislative
budget process, and was adjourned sine die on June 23rd.
The following overview details the legislation
approved during the 2005 legislative session and 2nd Extraordinary
Session. Special Session bills are
indicated by a “XX” following the bill number.
Most FY’07 state agency appropriations and
funding for capital projects were provided for in SB 80XX (the General
Appropriations (GA) Bill) and SB 90XX (the Rainy Day Spillover Bill). These two bills, in conjunction with $2.05 million
in three other “clean up” bills, spend a total of $6,639,829,152 for state
agency operations. This represents an
increase in total appropriations of $437.6 million over the current fiscal year
(supplemental appropriations included).
Comparison of Funding, FY’06-FY’07
(in millions)
Final Proposed
FY'06 FY'07 Change
Approp. Approp. $ %
Education 3,247.5 3,573.3 325.7 10.0
Gen.
Gov/Trans. 531.8 448.1 (83.7) (15.7)
Health/Soc.
Serv. 948.8 1,053.2 104.4 11.0
Human
Services 616.0 672.7 56.7 9.2
Natural
Res. 162.4 147.3 (15.1) (9.3)
Public
Safety 680.0 729.8 49.8 7.3
R
Total 6,202.0 6,639.8 437.6 7.1
The 15.7 percent decrease for the General
Government and Transportation Subcommittee on Appropriations is due to the one
time FY’06 supplemental appropriation of $100 million for the repair of State
bridges. The percent decrease for the
Natural Resources and Regulatory Services Subcommittee on Appropriations is
attributable to the one time FY’06 supplemental appropriation of $17 million to
the Centennial Commission and another $12.5 million in supplemental
appropriations for rural fire programs.
The balance of remaining revenues available
for expenditure from General Revenue is $2.054 million. However, additional funds are expected to
become available after the start of the fiscal year. An additional $50 to $100 million is
anticipated to spill over from the Rainy Day Fund when it reaches a Constitutional
cap of $495.7 million. A total of $457.3
million in “spillover” funds were already allocated in the following manner in
SB 90XX:
EDGE $150,000,000
County Bridges $25,000,000
Regents for Higher
Education $85,500,000
State Emergency Fund $15,000,000
Rural Fire Departments $5,000,000
State Park Maintenance $8,000,000
Firefighter Retirement
Fund $35,000,000
Tax Commission $1,800,000
Additional spillover funds are anticipated, as
June collections have not been figured into the total amount allocated so
far.
HB 1172XX (Hiett/Crutchfield): Decreases
the top marginal rate for income taxes from 6.25% to 5.25% over a four-year
period, as follows:
2007: 5.65%
2008: 5.55%
2009: 5.50%
2010: 5.25%, subject to revenue growth
of 4% plus the cost of the tax cut.
Increases the standard deduction to the
federal level over a four-year period, as follows:
2007: $5,500 (joint)/$2,750 (single)/$4,125
(head of household)
2008: $6,500/$3,250/$4,875
2009: $8,500/$4,250/$6,375
2010: Federal level, estimated at $11,200/$5,600/$8,200.
Under current law, the state standard
deduction is $3,000 for joint returns and $2,000 for single returns for 2006
and $4,000 and $2,000 for 2007. The federal level for tax year 2005 was
$5,000 for single, $10,000 for married, and $7,300 for head of household.
It is indexed for inflation and changes every year. This proposal would
also change the state level so that it will remain at the federal level each
year after 2010.
Phases out the estate tax over a three-year
period by equalizing exemptions and rates for lineal and collateral heirs in
2007 and increasing the exemption $2 million in 2008 and $3 million in
2009. The tax is repealed entirely in 2010, except for the pick-up tax.
Effective
HB 1174XX (Benge/Crutchfield): Makes various changes relating to revenue and
taxation, including:
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Modifies
the time period during which taxpayers who computed insurance premium taxes by
applying certain credits prior to claiming insurance home office credit may
qualify for a refund of excess taxes paid;
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Provides
a sales tax exemption for community mental health centers, tickets to certain
women’s organization events, certain membership health organizations, patriotic
women’s organizations, YMCAs and veterans organizations;
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Provides
a sales tax exemption for dietary supplements ;
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Provides
a sales tax exemption for sales of property or services used or consumed in
quarrying operations and clarifies the exemption for wholesale distribution
centers;
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Provides
additional tax credit for Oklahoma-mined coal of $2.15 per ton and prohibits
claiming or transfer prior to
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Lowers
rated production capacity for zero-emission power generation facilities from 50
to 1 megawatt to qualify for tax credit. Also sets tax credit amount at
fifty one-hundredths of one cent per kilowatt hour for facilities placed in
service after
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Provides
credit against bank privileges tax for amounts paid for
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Requires
plants engaged in pulp, paper, tissue or paper board manufacturing to have at
least $2 million in investment and maintain an average wage of at least 150% of
the state average or have at least $5 million in investment in each year of the
exemption, in order to receive a five-year ad valorem exemption;
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Repeals
the tourism promotion tax and earmarks 0.93% of sales and use tax revenues to replace
the tourism tax revenue ($5.1 million) and to provide funding for capital
improvements in state parks;
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Repeals
Section 4 of Senate Bill 1084, relating to municipal taxing authority;
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Clarifies
exemption for capital gains;
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Phases
out the income limit for private sector retirees to qualify for the retirement
income deduction. The current limit is $37,500 for single filers and
$75,000 for joint filers; it is increased to $50,000/$100,000 for 2007,
$62,500/$125,000 for 2008, $75,000/$150,000 for 2009, $100,000/$200,000 for
2010, and eliminated in 2011 and succeeding years;
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Phases
in exemption for federal retirees retirement benefits;
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Limits
fees for license plates for 100% disabled veterans;
· Exempts 100% disabled vet