OKLAHOMA CITY –
Governor Mary Fallin, Senate Pro Tem Brian Bingman and House Speaker T.W.
Shannon today announced agreement and impending action on key legislative items,
including income tax cuts, workers’ compensation reform and a plan to address
long-term infrastructure needs. Three bills were identified as having the
support of both the governor and majorities in the House and Senate.
House Bill 2032
would cut the top income tax rate from 5.25 percent to 5.0 percent on January 1,
2015. It would cut the rate further, to 4.85 percent, on January 1, 2016. The
second cut is contingent on total revenue growth in FY 2016 being equal to or
greater than the FY 2016 fiscal impact of a 0.15 percent tax cut. The bill also
provides for a total of $120 million to fund repairs to the Oklahoma State
Capitol.
Senate Bill 1062
reforms the workers’ compensation system in Oklahoma. It reduces legal costs,
medical costs, and excessive payouts to workers that have driven up costs for
Oklahoma businesses and encouraged fraud. It moves Oklahoma from a court-based
workers’ compensation system to an administrative system, reducing the
adversarial nature of the system and reducing the time needed to process
claims. It ensures that injured workers are treated fairly and compensated
appropriately.
House Bill 1910
creates a Pay-As-You-Go Infrastructure Plan and forms the Long-Range Capital
Planning Commission which will first address the repair of the state Capitol and
later develop an 8-year plan to address the state’s other maintenance issues.
The commission’s
plan will create a system for maintenance to address the state’s needs without
incurring unnecessary debt. It will also include recommendations on
reallocation, reuse or liquidation of state properties.
Fallin said she
looked forward to signing the measures into law, saying the announcement set the
stage for a productive legislative session.
“My thanks go
out to the Speaker and the Pro Tem for working together with my office on these
important issues,” Fallin said. “Delivering a responsible, meaningful tax cut
will boost our economy and help us to create more jobs and bring more businesses
to Oklahoma. Likewise, overhauling our flawed workers’ comp system will reduce
costs to employers and allow them to invest in jobs and growth rather than
lawsuits. Finally, our long-term infrastructure improvement plan will ensure we
are maintaining and improving state assets, rather than watching them
deteriorate. Today’s announcement represents an exciting, important step forward
for Oklahoma. I look forward to signing these three measures into
law.”
Bingman said
that workers’ compensation reform would address the state’s greatest obstacle to
job growth.
“Today’s
announcement shows our commitment to government that is smaller, simpler, and
smarter,” said Bingman, R-Sapulpa. “Our broken workers’ compensation system is
Oklahoma’s greatest obstacle to job growth, and I believe the time has finally
come to put the brakes on our runaway costs. Moving to an administrative system
will attract quality manufacturers back to Oklahoma, and together, our tax cut
and workers’ compensation overhaul plans are an important step toward creating
more certainty in Oklahoma’s business environment. Additionally, our long-range
infrastructure plan shows a forward-thinking approach to good stewardship of
taxpayer-owned assets. I am thankful for the leadership shown by Governor
Fallin and Speaker Shannon as we have worked to craft agreements on issues of
such importance to Oklahoma’s future.”
Shannon said the
three bills would support Oklahoma growth and prosperity.
“Our offices
have come together to ensure a better future for Oklahoma,” said Shannon,
R-Lawton. “These three crucial measures prove that the conservative leadership
of this state is committed to government efficiency, reducing the tax burden and
becoming better stewards of our citizen-funded infrastructure. Through
implementing monumental workers’ comp reform, cuts in the personal income tax,
and a Pay-As-You-Go infrastructure plan, we are moving forward with responsible
policies that will produce growth and prosperity for the people of our great
state. As I have said many times before, we will not go down the same path of
Washington, D.C., by continuing an endless cycle of taxing, spending and
borrowing against the future of our children.”