Steve Lewis served as Speaker of the Oklahoma House of Representatives from 1989-1991. He currently practices law in Tulsa and represents clients at the Capitol.
Nine weeks down and seven weeks to go in this session, and the fog has yet to begin clearing on the FY-18 budget outlook. House appropriations Chair Leslie Osborn sent a shot over the bow recently when she asked agencies to report what they would do with a 14.5 percent budget cut. The results reported by most agencies were unacceptable by most any measure. But there still exists no public proposal by legislative leadership for a package of revenue measures that would come close to closing the budget gap.
It seems clear that a deal has been made to end the 10-year, fifty one-hundredths of one cent ($0.0050) tax credit earned on every kilowatt of electricity produced by wind facilities going into production after July 1, 2017. The credit is a refundable tax credit, which means it’s money that is paid directly out of the state treasury, and it has cost more than was ever anticipated. This, however will have no impact on the FY-18 budget so it will be no help in solving the budget gap. The budgets it will affect will occur in FY-19 and beyond.
Continue Reading »