Oklahoma House Appropriations and Budget Committee Chairman Kevin Wallace said he will propose expanding Indian gaming to include roulette and dice games, to help fill the state’s 5 million budget deficit created by a recent state supreme court decision. Under Wallace’s proposal, tribes would have to give up rebates they currently receive on car tag revenue.
Wallace’s measure also calls for passing a $1.50-per-pack cigarette tax increase and utilizing 25 percent of the Rainy Day Fund and a portion of existing cash.
Wallace said his plan would fill the budget hole as well as make available to the state nearly $300 million in recurring revenues.
In August, the Oklahoma Supreme Court ruled that a $1.50-per-pack cigarette fee was unconstitutional. However, lawmakers already had passed the cigarette fee in the final five days of a legislative session without a 75 percent majority vote. The fee was expected to generate $215 million—that plus losing matching federal funds would bring the total loss to nearly $500 million. Officials said as a result, several state agencies would run out of funding before the start of the legislative session.
Governor Mary Fallin said, “A special session is the best option. These agencies and the people they serve cannot sustain the kind of cuts that will occur if we do not find a solution.” Earlier this month, Fallin said she’ll call a special legislative session starting September 25 to address the current fiscal budget.
Wallace said his plan “would not only provide the lost revenue, but it would provide recurring revenue for the legislature to utilize in next year’s budget hole and beyond without burdening citizens. My hope is the legislature would come together in a bipartisan way for the state’s best interest and not for personal interest.”
However, Senate President Pro Tem Mike Schulz said he opposes expanding gambling laws to allow Las Vegas-style gambling. Schulz said Wallace’s bill also would authorize sports betting if a federal ban is lifted by Congress. “For me, personally? Yeah, it’s a moral objection,” Schulz said.
