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From: Jason Sutton Jason.Sutton@okhouse.

gov
Subject: RELEASE: Budget Chair Wallace Proposes Revenue Solution for Special Session
Date: September 12, 2017 at 9:37 AM
To: Jason Sutton Jason.Sutton@okhouse.gov

Oklahoma House of Representatives


September 12, 2017

FOR IMMEDIATE RELEASE:


Contact: Kevin Wallace
Capitol: (405) 557-7368
House Budget Chair Wallace Proposes Revenue Solution for Special Session

OKLAHOMA CITY House Appropriations and Budget Committee Chair Kevin Wallace today said he has a plan that would backfill the $215
million budget hole and create nearly $300 million in recurring revenue for the state.

Wallaces plan would involve passing the cigarette tax, using a portion of existing cash, utilizing 25 percent of the Rainy Day Fund and
modifying tribal gaming to allow ball and dice games in exchange for vehicle registration rebates paid to the tribes. Eliminating the rebates would
only apply to the tribes that adopt modified gaming.

When the Supreme Court overturned the cigarette fee, it created a situation for our state agencies similar to a revenue failure, said Wallace, R-
Wellston. As a Legislature, we need to address the lost revenue. My plan would not only provide the lost revenue, but it would provide recurring
revenue for the Legislature to utilize in next years budget hole and beyond without burdening citizens. My hope is the Legislature would come
together in a bipartisan way for the states best interest and not for personal interest.

Wallaces plan with projected numbers includes:


FY-18 FY-19
Appropriations Appropriations
Total Authority Total Authority

Cigare'e Tax Increase of $1.50 per pack equivalent (6 month) $128,920,413 $257,840,000

As Certied at 95% 122,474,392 244,948,000

Modied Gaming (nine month basis) 12,396,737 35,596,477

As Certied at 95% 12,322,356 35,382,898

Tribal Vehicle Registration Rebate Payments by Tribe: 4,184,760 4,184,760


(FY-16 totals provided by the Tax Commission)

Recurring Revenue Subtotal 138,981,508 284,515,658

FY-17 Prior Year General Revenue Fund Cash ($83,500,000) 51,680,322 31,819,678

Emergency Element of the Constitutional Reserve Fund 23,338,170 0

TOTAL RESOURCES 214,000,000 316,335,336

Appropriations from Cigare'e Fee (SB 845) (214,000,000)

Net $0

TOTAL RECURRING REVENUE 138,981,508 284,515,658




The 2018 legislative session begins on February 5.

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