Tax Hike on Oil and Gas Fails in State House

The latest budget-fix bill that would have raised the gross production tax on oil and gas failed in the House Wednesday night on a 71-27 vote. The measure needed 76 votes for approval.

Some Republicans, like Rep. Kevin Calvey joined Democrats in opposing the $140 million dollar plan as he argued it would cost jobs in the state’s oil and gas industry.

Calvey claimed state leaders had lied to the state about the measure and that the real reason such a tax hike was being pushed was to cover up the “corruption” in state government. He pointed out that many state agencies had not been audited yet were standing in line to get more funding.

Calvey cited the recent financial mismanagement discovered in the State Health department.

After the failure, Gov. Mary Fallin expressed disappointment saying the measure would have addressed the $215 million shortfall and provided a teacher pay raise.

“It is discouraging that some members have chosen politics over taking care of people by refusing to vote for this budget package and have shown they are not willing to move our state forward,” said the governor. “As a result of their no votes, our state will not have enough funds for agencies to deliver services that work for people, especially with our state facing a $400 million shortfall next session.”

Because the bill missed being approved by only 5 votes, the governor called on the House Speaker to put it back up for a vote.