Gambling expansion stalls tentative budget agreement – Theadanews

OKLAHOMA CITY Oklahoma lawmakers said Monday that a proposal to expand casino gambling has stalled a tentative budget agreement that would have raised hundreds of millions in new revenue.

House Minority Leader Scott Inman, D-Del City, said House lawmakers thought they had reached a bipartisan budget framework that would have closed about half of the nearly $900 million budget gap by taxing cigarettes, capping itemized tax deductions, restoring an income tax credit and slashing about $50 million in oil and gas subsidies. It also would have expanded tribal gaming agreements, he said.

He said Monday, though, that state Senate Republicans had torpedoed the deal.

For the Senate Republicans to continue to stand in the face of the citizens of Oklahoma who are calling for an increase in the gross production tax, who are calling for significant revenues to help fund education, health care and public safety, is a tragedy, he said.

But Senate President Pro Tem Mike Schulz said theres no way his Republican caucus members could support any budget agreement that would allow full-blown Vegas gambling in Oklahoma.

Budget officials estimate that expanding gambling to allow Oklahomas tribally run casinos to offer dice games and roulette could generate an additional $20 million a year in revenue for the cash-strapped coffers. Under agreements better known as compacts tribes pay the state a portion of their gambling revenues each year.

Schulz, of Altus, said the proposed gambling component also would have given tribes the exclusive right to take sports bets if the federal government ever legalizes the practice beyond Nevada.

For me, personally, yeah, its a moral objection, Schulz said of expanding gaming. I think we have too much gambling going on in this state. I think its too accessible. I think we have people who are spending milk and bread money in a casino rather than taking care of their kids.

Senate Majority Floor Leader Greg Treat, R-Oklahoma City, said Senate Republicans back the plan to hike the pack of cigarettes by $1.50 a pack. That tax could generate more than $184 million a year.

They also support a plan to increase that states gasoline tax by 6 cents a gallon as well as eliminating the oil and gas rebates and back the plan to cap itemized deductions at $17,000 that would generate another $148 million, he said.

Were tired of the gimmicks, Treat said. We want a package not contingent on us expanding to Vegas-style gambling to bring revenue in to fill these holes that we all agree we have.

But Inman said its time for senators to act and do the right thing for the public that relies on crucial state programs.

Weve said all along that a cigarette tax is just simply a Band-Aid on a bullet hole, he said. It will not solve the states budget problems. Youve got to have additional revenue.

Janelle Stecklein covers the Oklahoma Statehouse for CNHI's newspapers and websites. Reach her at jstecklein@cnhi.com.

View post:

Gambling expansion stalls tentative budget agreement - Theadanews