The tax hikes fought by the oil and gas and wind groups in Oklahoma did one thing—they evoked what State Treasurer Ken Miller called “positive words” from Moody’s Investors Service.
One of the big three bond rating agencies, Moody’s said this week, “Oklahoma overcomes political gridlock and passes revenue bill for first time in decades, a credit positive.”
Consider what the legislature and Gov. Fallin have approved as of April—$468.7 million in new spending including the increase of the gross production tax on oil and gas to 5%. The increase on crude oil is estimated to raise $99.4 million while the hike on natural gas production will produce about $71.1 million.
Then there is the 3-cent a gallon gasoline tax increase which will produce $51.9 million while the 6-cent tax on diesel will raise $53 million.
“There is still potential for further progress,” wrote Miller in his latest Oklahoma Economic Report released this week.
Despite increases in funding for education, Miller also had words of caution.
“Increasing recurring revenue to pay for a like amount in new spending commitments to support education is positive for several reasons, but it does not solve the structural budget deficit nor address other pressing needs and reforms,” he wrote.
While crude oil prices have improved over the past two years, so have Oklahoma’s gross production tax totals. Receipts for February were up 77.1 % on gas and 13.1% on oil tax revenue. The revenue from the motor vehicle tax increased 27.1%.
While the governor on Tuesday signed a new law allowing ball and dice gambling at Indian casinos, tribal gaming fees for February generated $9.2 million. It represented a decline of $635,409 or 6.5% from February of 2017.