American Oil and Gas Reporter - September 2021 - 33

we adjourned in 2020, the executive
branch revenue estimates suggested a
$1.4 billion contraction in one year. "
Fortunately, he continued, Oklahoma
policymakers succeeded in finding the
optimum balance between keeping the
state's economy open to the greatest
extent possible and keeping people safe
from exposure to COVID-19. The upshot,
he reported, was a $1.4 billion surplus.
" We came back to a situation where,
because we were conservative and prepared
with the highest level of reserves
in the state's history, we were able to
do some things, while other states were
left simply trying to figure out how to
fund their services, " McCall reflected.
" All the reserve money that we had prepared
to backstop (from the presumed
shortfall) was not needed because of
more funding. "
When asked whether future shortfalls
might prompt policymakers to again increase
Oklahoma's gross production tax,
Senator Treat emphasized the unusual
confluence of events that swayed the
House, Senate and governor to approve a
GPT hike in 2018. That year, he noted,
included a 10-day walkout by the state's
public school teachers and public backing
for the GPT incr ease from former Oklahoma
Governor and University of Oklahoma
President David Boren.
" It was a much different situation, "
Treat contrasted. " Obviously, you always
have to stay on guard. If I were to say
you don't ever worry about it, I would be
lying, because somebody always has that
idea, but assuming the chamber keeps
me as pro-tem, I have three more years
From left, Alliance Senior Vice President of Government Affairs & Public Policy Adria
Berry discusses the 2021 Oklahoma Legislature with Speaker of the Oklahoma House of
Representatives Charles McCall, R-Atoka, and President Pro Tempore of the Oklahoma
Senate, Greg Treat, R-Oklahoma City.
and zero desire to go through a three
quarters vote (to raise taxes) again. "
Moreover, McCall indicated, Oklahoma's
previous fiscal crisis was characterized
by four consecutive years of
contraction in the state's economy. " I
still wake up in the middle the night
dreaming about that time; it was tough
and we do not want to go back there, "
he acknowledged. " We made a very deliberate
effort to ensure we would have
safeguards in place to make sure we do
not revisit that. "
Those safeguards have helped the
state's revenue reserves reach record
levels, McCall said, adding that lawmakers
likely will be able to expand those reserves
again in 2022. " I think next year will be
another strong year for us; we will continue
to hold money back and not appropriate
everything we have, " McCall related.
" We are pretty savvy and have learned
some things. "
Although the legislature made no GPT
changes in 2021, McCall noted that Oklahomans
still received some tax relief
this year. " For C-corps, taxable rates
went from 6% down to 4%, a 33% cut,
which puts us in the best category among
all other states in the country, " he observed.
" Levels for S-corps and personal income
dropped by a quarter as well. "
Other achievements from the 2021
session, Treat suggested, include education
reform such as allowing students to
transfer freely between public schools,
and increased opportunity scholarships
to expand school choice. He also touted
the legislature's successful effort to reform
the state's merit protection system for
state employees.
" Under the antiquated merit protection
system, state employees were being fired
not according to how well they were producing
or how good a fit they were, but
based on how long they had been around, "
Treat described. " We blew that up this
year and you are going to see a much
better state government workforce.
" We achieved a lot working together
this session, " he assessed. " This session
was the most successful one I have ever
been part of. "
❒
Pausing before the keynote luncheon at the Petroleum Alliance of Oklahoma 2021
Annual Convention are, from left, Cimarex Energy Co. President and Chief Executive
Officer Tom Jorden; Alliance President Brook Simmons; Marathon Oil President and
CEO Lee Tillman; Continental Resources Inc. Chairman Harold Hamm and Continental
President and CEO Jack Stark. Later, Simmons moderated a panel discussion with
Jorden, Tillman and Stark. The convention was held Aug. 5-7 at the Four Seasons Resort
& Club Dallas in Las Colinas, Tx.
SEPTEMBER 2021 33
American Oil and Gas Reporter - September 2021

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