Senate Review - May 18, 2007

    With the May 25 deadline for final adjournment of the 2007 session quickly approaching, I am extremely pleased with the agreements we've been able to reach that have been approved this year.

    After much intense negotiating, the framework for the 2008 fiscal year budget has been agreed to by leaders in the Senate, House and by Governor Brad Henry.  This agreement includes carefully targeted investments in key areas which will advance our efforts to grow Oklahoma's economy through improved education, infrastructure improvements, and public safety.

    This agreement also included an infusion of $10 million into the Teacher's Retirement System of Oklahoma as part of a long-term plan to strengthen the fund.  Current educators will benefit from an average $1,000 per teacher pay increase, weighted toward veteran teachers and those with advanced degrees.

    This same agreement also calls for the creation of a permanent funding source for the OHLAP scholarship program, also known as Oklahoma's Promise.  It also contains a tuition-lock program to allow incoming in-state Oklahoma college and university students to opt into a guaranteed tuition rate for four years.

    I am especially pleased that as a part of the budget agreement, the governor signed a package of tax relief for working families into law.  This legislation included something Oklahomans have long awaited -- a back-to-school sales tax holiday to help families with the cost of clothing and shoes for their children.  That same measure also included child care credits for stay-at-home parents, acceleration of income tax cuts and elimination of the franchise tax on most small businesses.

    This has been an historic session due to the unprecedented tie in the Senate between Republicans and Democrats.  Certainly there have been times when there disagreements stemming from different political views and philosophies -- that is a natural part of the process.  There were certainly areas in which more should have been done, including lawsuit reform.  But overall, I believe it has been a productive session with many accomplishments that will benefit our state for years to come.

Senate Review - April 19, 2007

     People in the Tulsa metro know how important the aerospace industry is here -- but did you know that it is the largest single employer in the state?  Altogether, when you add up the direct, indirect and other jobs created as a result of the industry, it employs 150,000 Oklahomans.  The fact is, one in ten Oklahomans earn their incomes either directly or indirectly because of the aerospace industry.

     Here's another important fact -- the average salary of a worker in the aerospace industry is more than $54,000 per year, compared to the annual salary of the average Oklahoman of about $29,000 per year.  These are excellent, high paying jobs.  It is easy to see why it is so important not only to keep those jobs in Oklahoma, but to create policies that will help us attract additional jobs in the aerospace industry.

     That's the idea behind one of the bills I've authored this session.  I am Senate author of House Bill 2085, which provides two tax incentives for the aerospace sector intended to help the industry bring engineering jobs to the state, and to encourage Oklahoma students to earn degrees in engineering and stay here to work.  This past week, the Senate gave its support to the bill, which now moves back to the House for consideration of Senate amendments.

     Under HB2085, an aerospace business would be provided an income tax credit for a percentage of the wage costs related to an employee with an engineering degree.  For the first through fifth years of employment, the employer could claim a tax credit equal to 30% of the wage costs for a graduate of an Oklahoma program and 20% of the costs associated with a graduate of an out-of-state program.  An employee of an aerospace business would be provided a tax credit of $5,000 per year for the first through fifth years of employment.

     Aerospace companies want to locate in states where there is an educated, well-trained workforce prepared for the jobs they offer.  Encouraging more students to enter the field of engineering benefits not only them, but our entire state.

     Looking at the bigger picture, this is an issue of national importance as well.  American engineers have made us leaders in the aerospace industry, which is one of only three that enjoy a trade surplus in the U.S., but there is the very real concern that we could lose that advantage.  The United States produces about 70,000 engineers a year, but India is currently producing 350,000 and China is training 600,000 engineers annually.

     We want to keep our edge, and we want Oklahoma to have every advantage when it comes to winning and keeping these high paying jobs in our state.  I believe HB2085 can help us do that.

Senate Review - March 26, 2007

    I am a strong proponent of public policy that ensures both individuals and businesses can keep more of what they earn.  I have stated many times that when we do that, our economy will actually grow because those dollars will either be saved, invested, or used to purchase goods and services, all of which will promote job growth and greater prosperity for the entire state.

That's why I was extremely pleased that the budget agreement worked out between the Senate and the House and approved by both chambers would include a tax relief package that will save Oklahoma taxpayers $90 million over two years.

    There are several items included in the package that I think most Oklahomans will be very excited about.  One of those is the creation of a sales tax holiday for the first weekend in August every year.  This is something other bordering states have had for years, but Oklahoma has failed to approve.  I believe that's going to be extremely beneficial to families, to individuals, and to local retailers who have lost business every August for the past several years.

    The agreement will also accelerate income tax reductions previously approved by lawmakers.  Under the agreement, the personal income tax rate will drop to 5.5 percent in 2008 and then to 5.25 percent in 2009.

    Another key provision is an exemption from franchise taxes up to $250 for 24,000 small businesses across the state.  This will eliminate burdensome paperwork and free up precious time for our entrepreneurs who are trying to create jobs.

    The agreement also includes a child care credit for stay-at-home parents.  Traditionally, such benefits have only been extended to families where both aprents work outside the home.  I think it is extremely important to give relief to those families who forego a second income to be with and nurture their children themselves.  I realize not every family can do this, but we should reward parents who sacrifice finances for families.

    This agreement achieves all of these things, as well as funding education by the April 1 Fund Education First deadline for the first time since the Legislature approved this mandate, in addition to ensuring the supplemental funding needed by our public schools for costs resulting from last year's pay increase.  It also fully funds the OHLAP scholarship program, with both a needed supplemental as well as an appropriation to ensure funding for the 2007-2008 school year.

    Even as we provide tax relief and record funding for education, we have created an actual decrase in government spending by about 3%, or $238 million, compared to last year's total spending.  You don't have to grow government to focus on important priorities.

Senate Review - February 9, 2007

    The 2007 Session is now underway, and Republicans and Democrats, who hold equal numbers of seats in the Seante, are sharing power as part of an agreement the members adopted.  During this session, I am serving as the co-chair of the Senate Finance Committee.  Under the power sharing agreement, the co-chairs, one Republican and one Democrat, together decide committee agendas and alternately chair meetings.  In addition to the co-chairmanship responsibilities, I am also serving as Republican Co-Assistant Floor Leader.

    Obviously, that means my schedule is even busier than it was before, but I still have a full slate of bills I am carrying that I will pursue vigorously on behalf of my constituents.  I have filed several measure taht I believe would give important tax relief to Oklahomans in several key areas.

Senate Bill 644 would reduce the top marginal income tax rate to 4.9% in 2011.  We are currently on a four year schedule to cut income taxes, which by 2010 will have reduced our top rate from 6.25 to 5.25.  SB644 will ensure that the following year, the rate will decline again.  I firmly believe that further reductions in Oklahoma's income tax will help draw more businesses to our state and keep existing ones here -- both will result in more jobs.  In addition, when our citizens are able to keep more of their hard-earned money, those resources are going to go back into our economy, further encouraging job growth.

    Senate Bill 30 would create a sales tax holiday for clothing and footwear as long as each individual item did not cost more than $100.  This would occur every year during a three-day period in August. Texas has had a sales tax holiday for years, and other states do as well.  We all know how expensive it can be getting children read for school each year -- this will give our citizens some greatly needed tax relief.

    Senate BIll 116 would exempt food and beverages purchased from grocery stores from state and local sales tax.  Items such as beer and tobacco products would still be taxed.  There are certanly plenty of luxury items that people are forced to forgo, but they shouldn't have to struggle to afford basic necessities like groceries.

    We all know that Oklahoma, unfortunately does not do well when it comes to heart disease, obesity rates, diabetes, cancer and other illnesses.  We know the most cost efective way to deal with these health issues is through prevention, and that includes getting enough exercise. Senate Bill 118 would provide a tax credit equal to 20% of the cost of membership fees for health and exercise facilities.  This bill came at the suggestion of a citizen from my district, and I think it is a good idea.

    Senate Bill 20 is a sales tax exemption for over-the-counter (OTC) drugs and medicine.  Currently, prescription drugs are exempt from sales taxes, but OTC medications are not unless they are reimbursed by Medicare or Medicaid.  The problem is, more and more pharmaceutical companies are getting medications approved for sale without a prescription.  This is a convenience, but causes people to miss out on the sales tax exemption.  This bill would correct that problem.

    These are just a few of the measures I have authored this session, and I'll be discussing others in the coming weeks.  My hope for Oklahoma is that we can help create public policy that will help Oklahoma families have the best quality of life possible.

Please contact me if I can be of any assistance.  At the State Senate, I can be reached by writing to Senator Mike Mazzei, Room 411-A, State Capitol, 2300 North Lincoln Blvd., Oklahoma City, OK  73105, or by calling (405)521-5675.