Sources: Barry Switzer, J. C. Watts Stand To Share In Huge Highway Traffic Camera Plan Fee

The McCarville Report Online has been told that former University of Oklahoma football coach Barry Switzer and his former star quarterback, ex-Congressman J. C. Watts, will share in a huge fee if the Chicago-based InsureNet is successful in its bid to help implement a system of highway traffic cameras to catch insurance scofflaws in Oklahoma and other states.

Thus far, however, Oklahoma is the only state where the firm's system has won gubernatorial and legislative approval and is in the process of being adopted; it has been rejected in other states, including Nevada and Pennsylvania, primarily because of privacy concerns raised by opponents. Failure by the company to win contracts in those, and other, states apparently means the two have been paid nothing for their efforts to date. In Oklahoma, the company is one of four bidders and may or may not be awarded the contract.

One of those involved says he knows nothing about any fees promised Switzer, Watts, or others, including himself.

Switzer has been the company's out-front representative in Oklahoma, meeting with Governor Henry's chief budget writer, Treasurer Scott Meacham, to push for inclusion of the company's plan in Henry's budget.

While Switzer has contended Henry "has nothing to do with this," it was Henry's action in including the plan in his budget that would make possible the fee due Switzer and others for their lobbying if InsureNet were to be awarded the contract. Switzer was one of Henry's chief fundraisers in his 2002 campaign and is credited with helping Henry win his upset victory over Republican Steve Largent.

Bids on the plan, which Henry claims will generate $50 million for the state in its first year of operation, have been taken by the Department of Central Services after being outlined by the Department of Public Safety and its expert, David Beatty; a contract has not yet been awarded. Payment due the firm chosen to implement the plan is estimated in the 25-30 percent range.

InsureNet reports on its website that it now has formed a partnership with Intelligent Imaging Systems (IIS) to "blend their respective technologies in order to provide added functionality relating to vehicle insurance verification. IIS is a leading supplier of Smart Roadside™ solutions for the Transportation Safety and Security market. IIS’ automated electronic screening systems represent the evolution in effectiveness and efficiency of roadside law enforcement operations. With technology deployed in almost half the States and Provinces in North America, IIS is leading the way in helping public agencies use technology to improve highway safety and security."

Watts, a Republican who is now a Washington lobbyist, has not been publicly visible in working for InsureNet. Sources say, however, that he has worked behind the scenes on the company's behalf, "opening doors" in several states. Oklahoma City lobbyist Chad Alexander, Watts' former campaign manager and spokesman, is InsureNet's Oklahoma lobbyist. Alexander did not respond to questions about Watts' involvement, nor did House Speaker Chris Benge. Senate President Pro Tem Glenn Coffee, through spokesman Randy Swanson, said he's had no contact with Watts. TMRO has been told that Watts had contact with a key member of Benge's staff when the push to land the contract for InsureNet began a year ago.

Former Rep. Wayne Pettigrew, whose contract with InsureNet expired May 31st, said he doesn't believe Watts is active in the Oklahoma effort: "I believe JC’s consulting company was only used in Louisiana."

Efforts to determine if Watts has been active on the company's behalf in Canada, where he was a popular professional football player, have been unproductive. InsureNet has pursued its automated license plate recognition system in that country.

Capitol sources say it may be the involvement of Republicans Watts, Pettigrew and Alexander that resulted in no questions about the plan from Republican House and Senate leaders, or from Republican Rep. Randy Terrill of Moore, chairman of the House Budget Subcommittee with jurisdiction over the Department of Public Safety budget. Some observers found it curious that Republicans asked no public questions about the controversial use of the cameras, opposed by civil libertarians and privacy advocates, or about how the revenue figure was determined. Benge and Coffee approved the plan, apparently without question, when they signed off on Henry's budget.

Identified by The McCarville Report Online as part of the InsureNet "team" through company documents and sources are Switzer, Watts, former OU players and brothers Tinker and Steve Owens, Alexander, and Pettigrew. Tinker and Steve Owens are Norman insurance agents. Steve Owens says he was approached to join the InsureNet "team" but declined to do so; he was unaware a company document with his photograph was being used.

Pettigrew told TMRO he was contacted more than a year ago by Tinker Owens and asked to arrange a meeting with InsureNet's top official and Rep. Ken Miller, chairman of the House Budget Committee. Pettigrew said they subsequently had lunch. Miller confirmed the lunch and said he took no action as a result, and did not advocate InsureNet's plan with anyone.

A source with access to details of the alleged agreement involving Switzer and Watts says Switzer is to be paid 2 percent of the company's possible revenue in the states where he's been active, while Tinker Owens is listed also at 2 percent, with Watts, Pettigrew and Texan Jack West listed at 1 percent. West, who is in the insurance business, is a former pro football star known as the player who once ran into a goal post.

Pettigrew, however, told TMRO he knows nothing about those percentages or any contract outlining them.

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Meacham Confirms Highway Traffic 'Spy' Camera System Meeting With Barry Switzer; J. C. Watts Involved In Louisiana, Wayne Pettigrew Says

Governor Henry's chief budget writer confirms to The McCarville Report Online that he met with former OU and Dallas Cowboys football coach Barry Switzer as Switzer advocated one company's plan for a system of controversial highway traffic "spy" cameras to nab insurance scofflaws that Switzer wanted Henry to include in his budget.

And while sources say former OU football star and ex-Congressman J. C. Watts also has been involved in Switzer's effort here, one of those involved says Watts joined Switzer on the company's behalf only in Louisiana and "shied away" from involvement in Oklahoma. Louisiana's governor, Republican Bobby Jindal, is a former Washington appointee in the Bush Administration and a former congressman.

Later Today: Has The InsureNet Push Run Aground?

Henry adopted the plan Switzer advocated and included it in his budget as a measure that would generate $50 million in new revenue (and more millions for a company chosen to administer the plan). It also apparently would generate considerable sums for Switzer and others lobbying for it in fees for their efforts.

Switzer says he is working on a contingency basis for InsureNet, the Chicago-based firm that has bid on the multi-million dollar Oklahoma contract.

Treasurer Scott Meacham, through Deputy Treasurer Tim Allen, told The McCarville Report Online that he met with Switzer. Said Allen: "Yes, he (Meacham) did meet several months ago with Coach Switzer."

Allen said Meacham, Henry's chief budget adviser, didn't immediately recall all the details, or the date of the meeting, but last Friday said he would provide that information.

Switzer has confirmed TMRO's initial report that he represents InsureNet in numerous states, but denied his advocacy of the firm's system in Oklahoma has anything to do with the governor or their close personal and political affiliation.

Henry's 'Not even involved'?
"Brad Henry is not even involved in this," Switzer told The Oklahoman's Randy Ellis despite the fact that the entire purpose of the Meacham meeting was for Switzer and others to advocate the InsureNet system to spot vehicle insurance scofflaws for inclusion in Henry's budget. It was included as a revenue measure by Henry after Meacham's meeting with Switzer; bids have been taken by the Department of Central Services but a contract has not yet been awarded.

Switzer said he doesn't believe his relationship to Henry had anything to do with InsureNet seeking him out to lobby on its behalf although it appears to be the company's method of operation to secure politically-connected public figures and former elected officials as its advocates.

Switzer's ties to Henry are long-standing. In Henry's 2002 campaign, Switzer emerged as a key fundraiser and his support of Henry is credited by some with helping Henry stage his upset win over Republican Steve Largent.

The connection has prompted the suggestion that Henry's adoption of the plan pushed by Switzer is political payback from Henry since Switzer stands to profit from the transaction. Switzer told The Oklahoman he's not yet been paid, but expects to be if the InsureNet plan is adopted: "If these states go on these contracts, I'm sure I'll get paid for doing it."

Contingency Fee Payments Prohibited
That statement has resulted in the citation, by some, of Oklahoma's law prohibiting contingency fees. The law, OS 21.9334, reads, "Contingency fee prohibited. No person may retain or employ a lobbyist ... for compensation contingent in whole or in part on the passage or defeat of any official action or the approval or veto of any legislation, issuance of an executive order or approval or denial of a pardon or parole by the Governor. No lobbyist may accept any employment or render any service for compensation contingent on the passage or defeat of any legislation or the approval or veto of any legislation by the Governor. Any person convicted of violating the provisions of this section shall be guilty of a felony punishable by a fine of not more than One Thousand Dollars or by imprisonment in the State Penitentiary not exceeding two years or by both such fine and imprisonment."

Pettigrew said, "I don’t know if Switzer had a contract or if he did if it was similar to mine with InsureNet but mine has a provision that if the contract would be in violation of any state or federal law, then it is null and void."

'All I do is open the door for them'
Switzer said InsureNet officials asked him to help introduce them to Meacham and others. He said he was introduced to InsureNet by Tinker Owens, the former OU wide receiver who is now a Norman insurance agent. (An internal InsureNet document viewed by TMRO shows Switzer, Tinker Owens and his brother, former OU star Steve Owens, as members of the "InsureNet Team" in Oklahoma. Steve Owens, however, says he was invited to join the team but declined. He was not aware the document is in circulation.)

Switzer said he introduced InsureNet officials to executives in Oklahoma, Texas, Tennessee, Kansas, Missouri and New Mexico. "All I do is open the door for them," he said.

Switzer said he does not have a contract with InsureNet, only a handshake. Company officials did not respond to inquiries about the relationship of Switzer and others to the company, nor did Oklahoma City InsureNet lobbyist Chad Alexander, the former Oklahoma Republican Party chairman and former campaign manager for Watts. Governor Henry's office did not respond when asked when Henry met with Switzer.

Former Rep. Wayne Pettigrew, Edmond insurance agent who is partners with Tinker Owens in a Tulsa-based life insurance company, says he doesn't believe Watts has been active in Oklahoma for InsureNet: "I believe JC’s consulting company was only used in Louisiana," he told TMRO. However, another source said Watts made "introductory" phone calls for the company and Switzer in Louisiana, Nevada and other states.

Pettigrew has been a national representative of InsureNet and helped push the company's plan across the nation; he said today his contract expired on May 31st and he no longer is helping the company.

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Tax Collections Prompt Another 5% Budget Cut

State Treasurer Scott Mecham said today that for a second, consecutive month less-than-estimated tax collections forced state officials to order a five-percent across-the-board cut in budget allocations to all state agencies.

Preliminary reports for collections in the month of August show General Revenue Fund collections totaled $335.2 million. That amount is $154.9 million or 31.6 percent below the prior year and $131.3 million or 28.2 percent below the estimate.

State Finance Director Michael Clingman ordered a continuation of the five-percent cutback in allocations to each state agency that was instituted in August. The five-percent reduction in September's allocation of annual appropriations represents a total cut of $21 million for the month.

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Shortfall Prompts Agency Budget Cuts

A state revenue shortfall for July prompted a 5 percent across-the-board cut in agency budget allocations today.

That followed the discovery that revenue collections for July, the first month of the new fiscal year, are well below prior year collections and the official estimate.

The shortfall is great enough that state officials immediately ordered an across-the-board budget cut in budget allocations to all state agencies this month, State Treasurer Scott Meacham said.

Preliminary reports for collections in the month of July show General Revenue Fund collections totaled $336.7 million. That amount is $120.4 million or 26.3 percent below the prior year and $74.4 million or 18.1 percent below the estimate.

In response to the shortfall, State Finance Director Michael Clingman ordered a 5 percent across-the-board reduction to each state agency’s allocation in the month of August. This amount represents a total cut in allocations of $21.9 million for the month of August.

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Meacham: Recession Hits Tax Revenues

Oklahoma’s fiscal year has ended with evidence the state’s revenues are being deeply impacted by the nationwide recession, State Treasurer Scott Meacham announced today.

Meacham said June collections were sufficient to fund appropriated obligations for July, the first month of the new fiscal year, but action may be required in coming months.

“It appears very likely at this point that Fiscal Year 2010 revenues will e less than originally estimated by the tax commission. That means a revenue shortfall is probable,” he said. “I will be meeting with state finance officials and Governor Henry to determine if it will be necessary to begin reducing allocations to state agencies to meet the anticipated revenue shortfall.”

Preliminary reports show general revenue fund collections for Fiscal Year 2009 that ended June 30 totaled $5.519 billion. That amount was $434.7 million or 7.3 percent below the prior year and $427.8 million or 7.2 percent below the estimate.

The recession started significantly impacting Oklahoma during the last half of the fiscal year, Meacham said. During the first half of the fiscal year, July through December, collections exceeded the estimate by $189.5 million or 6.6 percent. During the final six months, January through June, collections were below the estimate by $617.3 million or 20.1 percent.

“We are seeing a slowdown in every revenue source. Only sales tax collections were higher than collections in the prior fiscal year, but they failed to meet the estimate,” he said.

“The fall off in gross production taxes on oil and gas was particularly steep. While total fiscal year gross production collections were 5.5 percent below the estimate, in the month of June they were off the estimate by 81.7 percent reflecting the current low prices of these commodities”

Net income taxes, a combination of personal and corporate income taxes, produced $2.279 billion, which was $238.9 million or 9.5 percent below the prior year and $174.8 million or 7.1 percent below the estimate.

Personal income tax collections for the year were $2.014 billion.That is $225.5 million or 10.1 percent below the prior year and $151.2 million or 7 percent below the estimate.

Corporate income tax collections were $265.6 million. That is $13.4 million or 4.8 percent below the prior year and $23.6 million or 8.2 percent below the estimate.

Gross production taxes on oil and natural gas yielded $718.5 million for the year, which was $106.7 million or 12.9 percent below prior year collections and $41.8 million or 5.5 percent below the estimate.

The state sales tax produced $1.647 billion for the year, which was $34.8 million or 2.2 percent above the prior year but $54.8 million or 3.2 percent below the estimate. Motor vehicle taxes produced $175.8 million, which was $75.9 million or 30.1 percent below the prior year and $71.1 million or 28.8 percent below the estimate.

For the fiscal year, investments by the treasurer’s office yielded $157.2 million. That is $14.2 million or 8.3 percent below the prior year.

Other revenue, including investment earnings along with taxes on insurance, inheritance, alcoholic beverages and others, produced $698.4 million for the year. This was $47.9 million or 6.4 percent below the prior year and $85.3 million or 10.9 percent below the estimate.

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State Revenue Shortfall Declared; All Appropriations Face Reductions

State revenue collections failed to meet estimates for a fifth consecutive month in May, forcing state officials to declare a revenue shortfall as annual collections fell below the amount needed to meet appropriated funding levels, State Treasurer Scott Meacham announced today.

The state constitution requires the legislature to appropriate no more than 95 percent of the state’s estimated revenues. If actual revenue collections are less than the amount appropriated, there is a “shortfall”and the constitution requires that all appropriation allocations be reduced across-the-board by the amount of the shortfall.

The last such shortfall occurred six years ago during Fiscal Year 2003.

Current revenue collections have fallen below 95 percent of the estimate by $6.8 million or 1.42 percent of June spending allocations.

“Unfortunately, revenue collections have dropped well below the official estimate and even lower than Tax Commission projections made in February,” Meacham said. “Fortunately, the shortfall is relatively small –only 0.1 percent on an annual basis. I am hopeful most agencies will be able to minimize the impact by using unspent funds from earlier in the fiscal year.”

Agencies will receive their monthly allocations from the Office of State Finance next Tuesday, June 9, but Meacham said he is making the announcement today to give advance warning.

“Since January, we have been cautioning that this scenario could occur as Oklahoma experiences the effects of the recession,” he said. “Unfortunately, a revenue shortfall has now occurred and we are forced to make small, across-the-board cuts.”

May collections were below the prior year and the estimate in every major category – income tax, sales tax, and gross production and motor vehicle taxes.

“It appears low oil and gas prices are driving the economic downturn throughout Oklahoma’s economy,” Meacham said.

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Meacham: State Revenue Continues Slump

From The Treasurer's Office ~ Oklahoma’s continued participation in the national recession is reflected in April revenue reports as collections again dropped below the prior year and failed to meet estimates, State Treasurer Scott Meacham said today.

Preliminary reports show general revenue fund collections for April were $513.4 million.

That amount is $141.3 million or 21.6 percent below the prior year; and $137 million or 21.1 percent below the estimate.

For the first 10 months of the fiscal year, collections total $4.72 billion. That is $107.9 million or 2.2 percent below the prior year and $171.4 million or 3.5 percent below the estimate.

“The April numbers were not particularly good. We experienced lower income tax, motor vehicle and gross production collections that are reflective of the national recession and its continued effects in Oklahoma,” Meacham said. “We did see some bright news this month as sales tax collections were higher than the same month last year.”

Meacham said the trend with falling revenue collections now appears to be deeper than Tax Commission projections presented in February and the margin to avoid a revenue shortfall in the final month of the fiscal year has become very thin.

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Meacham: Collections Fall Below Estimates

From The Treasurer's Office ~ Led by lower collections in all major tax categories in March, year-to-date revenue collections have fallen below the estimate for the first time in almost six years, State Treasurer Scott Meacham announced today.

Preliminary reports show General Revenue Fund collections through the third quarter of Fiscal Year 2009 totaled $4.207 billion.

That amount is $33.4 million or 0.8 percent above the prior year; but $34.5 million or 0.8 percent below the estimate.

The last time year-to-date revenue collections failed to meet estimates was in June 2003, the end of Fiscal Year 2003.

“Current projections have anticipated this dip below the official estimate,” Meacham said. “This drop is in line with the Tax Commission’s revised February projections and we remain hopeful we will finish the fiscal year in June without needing to make any cuts.”

Last month, Meacham said March collections would give a clearer picture of what lies ahead for the remainder of the fiscal year.

“Today’s numbers indicate that unless the revenue reduction accelerates more than the Tax Commission predicted over the next three months, we should be able to end the fiscal year without having to make cuts,” he said.

Meacham said projections made by the Tax Commission in February showed the state would finish the fiscal year collecting some 96 percent of the original estimate.

“Year-to-date collections are generally in line with the February projections,” he said. “We expect collections for the next three months to also fall below original estimates, but they are not forecasted to fall enough to require cuts between now and the end of June.”

The state constitution requires the legislature appropriate only 95 percent of the certified estimate. This year, that leaves a cushion of approximately $297 million. Currently, some $262 million of that cushion remains.

Meacham issued a reminder that this report is not related to budget cuts that the legislature will have to make for the next fiscal year.

“The next state budget year that begins July 1 of this year will definitely require cuts,” he said. “While federal stimulus money will help offset some of those reductions, we will most certainly have to cut spending. We anticipate making targeted reductions in funding for the coming year. If we were to experience a revenue shortfall in the current year, we would be required to make across-the-board cuts.”

Net income tax collections produced $1.641 billion through March,which is $57.6 million or 3.4 percent below the prior year and $24.6 million or 1.5 percent below the estimate. Net income tax collections include personal income taxes and corporate income taxes less refunds paid for the month.

Year-to-date personal income tax payments totaled $1.436 billion. That is $79.5 million or 5.2 percent below the prior year and $45.3 million or 3.1 percent below the estimate.

Corporate income tax collections are $204.7 million year-to-date.That is $21.9 million or 12 percent more than the prior year and $20.8 million or 11.3 percent above the estimate.

The state sales tax produced $1.269 billion for the first nine-months of the fiscal year, which is $52 million or 4.3 percent above the prior year but $5.4 million or 0.4 percent below the estimate.

The gross production tax on oil and natural gas yielded $645.8 million through March, which was $121.2 million or 23.1 percent above the prior year and $105.4 million or 19.5 percent above the estimate.

Motor vehicle taxes produced $132.3 million, which is $53.3 million or 28.7 percent below the prior year-to-date and $49 million or 27 percent below the estimate.

Investment of state funds produced $121.9 million for the year-to-date. That is $6.4 million or 5.0 percent less than the previous year.

Other revenue, which includes investment earnings along with taxes on insurance, inheritance, alcoholic beverages and others, produced $518.7 million for the first three quarters of the fiscal year. This is $29 million or 5.3 percent below the prior year and $61 million or 10.5 percent below the estimate.

For the month of March, General Revenue Fund collections fell below the prior year and the estimate, Meacham reported.

Preliminary reports show General Revenue Fund collections in March totaled $394.9 million. That amount is $93 million or 19.1 percent below the prior year; and $81.8 million or 17.2 percent below the estimate.

Net income tax collections, a combination of personal and corporate taxes, totaled $146.8 million for the month. That is $29.1 million or 16.6 percent below the prior year and $25.2 million or 14.7 percent below the estimate.

Personal income tax collections for March totaled $96.5 million. That is $27.8 million or 22.4 percent below the prior year and $23.4 million or 19.5 percent below the estimate for the month.

Corporate collections for the month totaled $50.3 million. That is $1.3 million or 2.5 percent below the prior year and $1.8 million or 3.5 percent below the estimate.

Sales tax collections for March totaled $125 million. That is $4.4 million or 3.4 percent below the prior year and $11.3 million or 8.3 percent below the estimate.

Gross production taxes totaled $46.6 million for the month, which is $32 million or 40.7 percent below the prior year and $29.3 million or 38.6 percent below the estimate. Motor vehicle tax in March totaled $11.1 million, which is $3.8 million or 25.4 percent below the prior year and $6.8 million or 38 percent below the estimate.

Investment of state funds by Treasurer Meacham produced $13.5 million for the month. That is $0.4 million or 3.4 percent more than the previous year.

Other revenue sources in March produced $65.4 million for the month.That is $23.8 million or 26.7 percent below the prior year and $9.2 million or 12.3 percent below the estimate.

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Cole Says No To Race For Governor

By Jim Myers/Tulsa World Washington Bureau ~ U.S. Rep. Tom Cole announced Monday he will not run for governor next year.

"It was a close call. I thought about it long and hard,'' the Oklahoma Republican said. "Strangely enough at the end, I thought Oklahoma was doing awfully well.''

Cole then cited challenges on the federal level, adding that he thought he could offer more for Oklahoma by remaining in Congress. Taxes and budget issues topped his list of concerns. Cole said his philosophy has been ''you always ride to the sound of the guns.''

A new member of the House Appropriations Committee, one of the more coveted panels in Congress, Cole also reflected on the importance of that appointment as well as the seniority he has built up in his current post.

"I am pretty pleased with the candidates that are out there,'' he said.

Rep. Mary Fallin already has jumped into the race on the Republican side, and former Rep. J.C. Watts and state Sen. Randy Brogdon are considering a bid.

Cole's announcement will fuel speculation that Watts will make the race. The two men have been close friends for years.

"I certainly would never run against J.C. Watts,'' Cole said, adding, however, his decision against running was not connected to Watts' future. "I don't know what he is going to do.''

Asked if he would be make an endorsement, Cole said it would be premature for him to say.

On the Democratic side, Lt. Gov. Jari Askins has said she is running and Attorney General Drew Edmondson is scheduled to make an announcement later this year. State Treasurer Scott Meacham is considered a potential candidate

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Meacham: Tax Revenues Plunge 30%

State Treasurer Scott Meacham said today that general fund revenues plunged 30 percent below projections in February, led by a steep decline in income tax collections.

Overall revenues were $65.4 million, or 21.6 percent below February 2008.

Income tax collections were down 80 percent from a year ago.

“Collections in each of the four major tax categories were below the prior year and the estimate," said Meacham. "February collections are typically light, but this February’s collections were significantly lower.”

Meacham said the state will probably be able to meet its budget projections for the fiscal year ending June 30.

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Meacham: Economic Downturn Finds Us

From The Treasurer's Office ~ It appears the downturn in the U.S. economy has found its way to Oklahoma, State Treasurer Scott Meacham announced today.

Oklahoma's General Revenue Fund collections dropped significantly below prior year collections and the estimate in the month of January.

Preliminary reports show General Revenue Fund collections for January totaled $492.8 million. That amount is $45.5 million or 8.5 percent below the prior year and $50.8 million or 9.3 percent below the estimate.

"It would appear that Oklahoma is increasingly seeing the effects of the nationwide recession," said Meacham. "This is the first time in nine months that monthly collections have been lower than both the previous year and the estimate."

In spite of the reduction in collections, Meacham said it appears the state is positioned to finish the fiscal year with sufficient revenue to meet the state's financial obligations.

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Meacham: Tax Collections Top Estimate

From The Treasurer's Office ~ While the national economy is experiencing the worst economic slowdown since the Great Depression, Oklahoma's General Revenue Fund collections for the month of December once again topped prior year receipts and the estimate, State Treasurer Scott Meacham announced today.

Preliminary reports show General Revenue Fund collections for December totaled $567.4 million. That amount is $37.7 million or 7.1 percent above the prior year, and $56.2 million or 11 percent above the estimate.

"We should count our blessings," Meacham said in reaction to December's revenue reports. "We are building a comfortable cushion as we head into the new year, while most of the rest of the nation is being forced to make drastic cutbacks in essential governmental services as their economies suffer the effects of the global recession."

Meacham said the strong collection numbers reflect the important role the oil and natural gas industries play in Oklahoma's economy.

"Gross production taxes on oil and natural gas are about 75 percent higher than December of last year and are close to double what was estimated to be collected," he said.

"In fact, without the exceptionally high gross production tax collections, overall collections for the state would be below the estimate for the fiscal year."

Meacham said sales tax collections for the month - reflecting Christmas sales through mid-December - show an increase from the previous year.

"Sales tax collections grew by almost four percent over last December," he said. "Given what is going on in the national economy, this is great news for Oklahoma."

Meacham said personal income tax collections are becoming a growing concern as collections for December dropped below the prior year by almost six percent. "As the unemployment rate in Oklahoma inches up and Oklahoma companies tighten their belts, we are beginning to see a decrease in the amount of money state employers are withholding and sending to the state," he said.

"Last month, withholding was down $3.6 million from last December."

Net income taxes, a combination of personal and corporate income tax collections, produced $247.7 million, which was $13.5 million or 5.2 percent below the prior year but $13.3 million or 5.7 percent above the estimate. Personal income tax collections for the month totaled $211.9 million,which is $13.3 million or 5.9 percent below the prior year but $11.9 million or 6 percent above the estimate. Corporate collections totaled $35.7 million, which is $0.1 million or 0.4 percent below the prior year but $1.4 million or 4 percent above the estimate.

The gross production tax on oil and natural gas yielded $98.7 million for the month, which was $42.1 million or 74.5 percent above the prior year and $47 million or 90.9 percent above the estimate.

The state sales tax produced $148.9 million for the month, which was $5.1 million or 3.6 percent above the prior year and $0.2 million or 0.1 percent above the estimate.

Motor vehicle collections for the month were $9.2 million, which was $3.1 million or 25.2 percent below the prior year and $5.9 million or 38.9 percent below the estimate.

Other revenue produced $62.9 million for the month of December. This was $7 million or 12.6 percent above the prior year and $1.6 million or 2.6 percent above the estimate.

The treasurer's investment earnings for December were $14.5 million, which is $1.2 million or 8.9 percent above the prior year.

Preliminary reports show General Revenue Fund collections for the first six months of FY '09 totaled $3.069 billion. That amount is $224.8 million or 7.9 percent above the prior year, and $189.5 million or 6.6 percent above the estimate.

The gross production tax on oil and natural gas yielded $523.5 million during the six-month period, which is $193.9 million or 58.8 percent above the prior year and $190.4 million or 57.1 percent above the estimate.

During the first half of the fiscal year, net income taxes produced $1.241 billion, topping collections of one year ago by $18.8 million or 1.5 percent and exceeding the estimate by $51.9 million or 4.4 percent.

Year-to-date personal income tax collections total $1.110 billion, which is $7.7 million or 0.7 percent above the prior year and $37.7 million or 3.5 percent above the estimate.

Corporate collections for the same time period total $131.3 million, which is $11.1 million or 9.3 percent above the prior year and $14.2 million or 12.2 percent above the estimate.

The state sales tax produced $871 million for the period, which is $49 million or 6 percent above the prior year and $12.3 million or 1.4 percent above the estimate.

Motor vehicle tax receipts, which come primarily from vehicle sales and licenses, produced $94.5 million in FY-09's first half. This is $31.4 million or 25 percent below the prior year and $27.6 million or 22.6 percent below the estimate.

Other revenue, which includes investment earnings along with taxes on insurance, alcoholic beverages and others, produced $338.4 million during the first half of the fiscal year. This is $5.4 million or 1.6 percent below the prior year and $37.5 million or 10 percent below the estimate.

The treasurer's earnings on investments for the first half of the fiscal year were $83.2 million, which is $1.1 million or 1.3 percent below the prior year.

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Has Tom Coburn Had Enough?

He served six years in the U. S. House and quit, citing his personal commitment to term limits. Now, U. S. Senator Tom Coburn enters his fifth year in the Senate and, should he decide to seek a second term there, faces reelection in 2010.

A Speculative Analysis By Mike McCarville

But has Coburn had enough of the world's most exclusive club?

Known as "Dr. No" for his steadfast opposition to the freewheeling spending that has marked the federal government, Coburn has given no indication of his future plans. With his thinly-veiled disgust for the spending habits of Republicans as well as Democrats, the physician has few friends and allies in the Senate.

Coburn seems to have prospered politically despite his lack of camaraderie with the politically-well-established. Polls have shown him among the state's most popular politicians.

As the 2010 election cycle begins to heat up, there likely will be increased speculation about Coburn's Senate future.

Among the controversies that have visited Coburn in the Senate is the question of him continuing to practice medicine. He has persisted despite a Senate prohibition against engaging in a professional practice. Coburn has continued to deliver babies through his Muskogee medical practice and has said in the past he intends to return to his practice fulltime when his public service ends.

Should Coburn decide that one term in the Senate is enough, that decision could set off a wide-ranging chain reaction that could involve 2010's campaigns for the Senate, for governor and Congress.

Such a decision would set off a free-for-all among Republicans and Democrats. Among Republicans, one scenario would have Congresssman Tom Cole, mentioned as a possible candidate for governor, opting instead to seek the Senate seat Coburn now holds. That would open up Cole's 4th District seat, and take Cole out of the gubernatorial equation. That could prompt Congresswoman Mary Fallin of Oklahoma City, and likely many others, to get into that race; she thus far has not revealed her future plans but her name is prominent among those thought to be eyeing the race. If Fallin opts for the governor's race, the 5th District seat goes up for grabs and an almost-certain candidate in that scenario would be Mayor Mick Cornett, who lost the GOP primary runoff to Fallin in 2006.

Already, Lt. Governor Jari Askins and Attorney General Drew Edmondson, Democrats, have revealed plans to run for governor although an open U. S. Senate seat might also be attractive to Edmondson, whose father, Ed, represented northeastern Oklahoma in Congress for years before failing to win a Senate seat despite repeated attempts to do so. Another possible gubernatorial contender is Treasurer Scott Meacham whose mentor is popular Governor Brad Henry.

And what of Henry, whose second term ends with the inauguration of a new governor in January 2011? Would Henry entertain a race for the U. S. Senate? Like some of the others, Henry has given no indication of his future plans. There has been speculation he'll eventually be offered a post in the Obama Administration given his early support for the president-elect and most insiders don't rule out the possibility although some believe it's unlikely.

And what of Congressman Dan Boren, the 2nd District congressman? Might an open Senate seat intrigue him?

The political crystal ball now is unclear; what is certain is that if Coburn opts to return to private life as Dr. Tom Coburn, the floodgates will open.

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Taxes Show State's Economic Strength

From The Treasurer's Office ~ State Treasurer Scott Meacham says the state is well poised three months into the fiscal year should the national economic downturn begin to take a toll on the local economy.

"First quarter collections are at 106.5 percent of the estimate and, including the five-percent cushion between the estimate and appropriations, we have collected $169.9 million more than is needed to pay the state's bills so far this year," he said.

Meacham said collections are buoyed primarily by higher than expected receipts from the gross production tax on natural gas.

"Year-to-date gross production collections are running 64.4 percent or $111.8 million ahead of the estimate," he said. "However, we can't expect this trend to continue as natural gas prices have dropped significantly in the past few weeks."

Meacham explained there is a two-month delay between assessment and remittance of gross production taxes, meaning the current low prices will not be seen in collections until November or December.

Also, on a positive note, Meacham said income tax collections in September were up slightly over the prior year and significantly over the estimate, driven primarily by stronger corporate tax collections.

Meacham noted that sales tax collections for September were below the prior year.

"This comes as no real surprise since last September was uncharacteristically high due to a one-time payment of $29.4 million from a company that sold a large amount of assets," he said. "If not for that one payment, sales tax receipts for the month would have shown considerable growth over the prior year."

Preliminary reports show general revenue fund collections totaled $620.5million for September. That amount is: $8 million or 1.3 percent above the prior year; and $22 million or 3.7 percent above the estimate.

Net income taxes, a combination of personal and corporate incomes tax collections, yielded $303.3 million to the general revenue fund in September, which was $1 million or 0.3 percent above the prior year and $10.7 million or 3.7 percent above the estimate.

Individual income tax collections produced $232.6 million, which was $4.5 million or 1.9 percent below the prior year and $2 million or 0.8 percent below the estimate.

Corporate returns produced $70.7 million,which was $5.5 million or 8.4 percent above the prior year and $12.7 million or 21.8 percent above the estimate.

Sales taxes produced $142.8 million for general revenue, down $18.3 million or 11.4 percent from the prior year and $12.1 million or 7.8 percent below the estimate for the month.

The gross production tax on natural gas accounted for $98.8 million for September, which was $34.9 million or 54.5 percent above the prior year and $40.7 million or 70.1 percent above the estimate.

Motor vehicle taxes produced $19.2 million, which was $5.2 million or 21.2 percent below the prior year and $2.9 million or 13.1 percent below the estimate.

Other revenue, which includes investment earnings along with taxes on insurance, inheritance, alcoholic beverages and others, produced $56.4 million in September. This was $4.3 million or 7.1 percent below the prior year and $14.4 million or 20.4 percent below the estimate.

The treasurer's investment earnings totaled $13.5 million for the month, which is $1.8 million or 15.9 percent above the prior year in spite of the current low interest rate environment.

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Coffee Cites State Economic Safeguards

Following a news conference today by Governor Henry and State Treasurer Scott Meacham, Senate Co-President Pro Tem Glenn Coffee, R-Oklahoma City, issued the following statement.

“Our nation is facing economic uncertainty. Thankfully, the Legislature’s conservative fiscal policies of the past two years have put Oklahoma in a much better position than most states to weather this situation. The Senate is working with the House and the governor’s office to ensure that our state government responds appropriately to any economic challenges,” said Coffee.

Coffee noted, “Our tax relief program has helped keep Oklahoma’s economy stronger than most of the nation, and our successful resistance of efforts to over-spend in the state budget and to raid the Rainy Day Fund for non-emergencies means that Oklahoma is very well prepared if we’re faced with a fiscal downturn,” he said.

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Henry Names Meacham To Review Economics

Citing ongoing turmoil in the international and national financial markets, Governor Henry today named State Treasurer Scott Meacham to conduct a review of Oklahoma interests to help protect the state during the ongoing economic downturn.

In announcing the action, Henry stressed that Oklahoma’s financial institutions and economy are in much better shape than their counterparts around the country, but he added that the state must be prepared to respond as economic conditions change.

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Meacham Calls For Bailout Bill Approval

State Treasurer Scott Meacham today called on members of the congressional delegation to act quickly to pass legislation to rescue the nation's failing financial markets.

"The longer they wait, the worse it gets," said Meacham. "It's time for every member of Oklahoma's congressional delegation to stand up and make the tough decisions needed to get the markets back on track.

"While sitting around saying 'no' may be the safe political thing to doright now, it's very short-sighted as credit is drying up, investmentsare shrinking and many Oklahomans' savings and retirement funds aredisappearing."

Without significant action soon, Meacham said the damage will only worsen.

"We saw earlier this week what happened to the stock market after the House failed to approve the first rescue package," he said. "The stock market set a record for the largest single day decline in history and investors lost more than a trillion dollars.

"I commend President Bush, Treasury Secretary Paulson and congressional leaders in both parties for their understanding of the potentially devastating impact of this ever widening financial crisis on our nation's economy and their hard work in drafting a compromise rescue plan to help stop the economic freefall we are currently experiencing."

Meacham said no package is going to please everyone.

"No taxpayer is happy that they are being called on once again to rescue private businesses from their poor decisions," Meacham said. "However, history teaches that failure to act in times of national crisis can be devastating. Herbert Hoover had to learn that lesson the hard way following the stock market crash of 1929.

"My call today is for all members of Oklahoma's delegation to rise tothis historic challenge and take decisive action to keep our country strong."

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Oklahomans Find $150,000 During Fair

From The Treasurer's Office ~ Cash and stock worth more than $150,000 has been found for people attending the Oklahoma State Fair in Oklahoma City, Treasurer Scott Meacham announced Tuesday. The money was found during the fair's first six days by treasurer's staff at the "Pot of Gold" booth in the Cox Pavilion at the fair.

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Meacham: Strong Economy Fuels Collections

From The Treasurer's Office ~ Fueled by strong collections from sales taxes and the gross production tax on natural gas, general revenue collections for the state of Oklahoma in August exceeded both the estimate and collections from the prior year, State Treasurer Scott Meacham announced today.

Preliminary reports show general revenue fund collections totaled $490.1 million for August. That amount is $47.6 million or 10.8 percent above the prior year; and $43.8 million or 9.8 percent above the estimate.

Meacham said strong sales tax collections indicate that Oklahoma's economy remains healthy, in spite of the national economic downturn.

Sales taxes provided $152.9 million to the general fund. That is $22.3 million or 17 percent more than the same month last year and $15 million or 10.9 percent above the estimate. "Sales tax collections were significantly above both the prior year and the estimate. Even when inflation of retail prices is factored in, these numbers show a strong increase in sales across the state," Meacham said. "Even more impressive is the fact that August collections include the impact of the sales tax holiday the first weekend of the month. The tax commission estimates the loss of revenue from the sales tax holiday to be $6.6 million."

Gross production taxes also showed much higher collections than the previous year and the estimate. Gross production taxes provided $96.6 million to the general fund. That is $39.7 million or 69.8 percent above the same month last year and $40.1 million or 70.9 percent above the estimate.

Net Income Taxes: This source yielded $155.9 million to the FY-09 general revenue fund, which was $7.5 million or 4.6 percent below the prior year and $6.8 million or 4.2 percent below the estimate.

Individual income tax collections produced $152.4 million, which was $7.5 million or 4.7 percent below the prior year and $7 million or 4.4 percent below the estimate.

Corporate returns produced $3.6 million,which was $5,000 or 0.1 percent above the prior year and $0.2 million or 6 percent above the estimate.

Sales Tax: The state's number two revenue source produced $152.9 million for general revenue, up $22.3 million or 17 percent from the prior year and $15 million or 10.9 percent above the estimate.

Gross Production Tax: This tax on natural gas accounted for $96.6million for the month, which was $39.7 million or 69.8 percent above the prior year and $40.1 million or 70.9 percent above the estimate.

Motor Vehicle Taxes: This source, based on motor vehicle sales and licenses, produced $18 million, which was $7 million or 27.9 percent below the prior year and $5.5 million or 23.2 percent below the estimate.

Other Revenue: Other revenue, which includes investment earnings along with taxes on insurance, inheritance, alcoholic beverages and others, produced $66.6 million. This was $0.1 million or 0.2 percent above the prior year and $1 million or 1.5 percent above the estimate.

The treasurer's investment earnings totaled $13.8 million for the month, which is $1.9 million or 12.3 percent below the prior year reflecting the current low interest rate environment.

Year-to-Date: After the first two months of the fiscal year, revenue collections total $947.2 million, which is $93.5 million or 11 percent above the prior year and $74.2 million or 8.5 percent above the estimate.

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Tax Collections 7.1 Percent Over Estimate

From The Treasurer's Office ~ The new fiscal year for state government is starting with positive news as General Revenue Fund collections for July, the first month of the Fiscal Year 2009, reflected growth in the Oklahoma economy, State Treasurer Scott Meacham announced today.

Preliminary reports show General Revenue Fund collections totaled $457.1 million for July.

That amount is $45.9 million or 11.2 percent above the prior year; and $30.4 million or 7.1 percent above the estimate.

In spite of the national economic picture, Meacham said revenue collections show the state's economy remains buoyant.

"Revenue collection reports show Oklahoma's economy remains healthy, driven by record strength in our energy sector," said Meacham, who also serves as Cabinet Secretary of Revenue and Finance. "Gross production receipts are very strong. Income taxes - both personal and corporate -show growth, as do sales tax collections."

Income taxes yielded $158.6 million to the FY-09 General Revenue Fund, which was $2.6 million or 1.7 percent above the prior year and $14.2 million or 9.9 percent above the estimate.

Individual returns produced $154.8 million, which was $1.7 million or 1.1 percent above the prior year and $13.6 million or 9.6 percent above the estimate.

Corporate returns produced $3.8 million, which was $0.8million or 28.3 percent above the prior year and $0.6 million or 19.5 percent above the estimate.

Sales tax produced $141.6 million for general revenue, up $10 million or 7.6 percent from the prior year and $2.1 million or 1.5 percent above the estimate.

Gross production tax accounted for $90 million for general revenue, which was $33.4 million or 59.1 percent above the prior year and $31 million or 52.6 percent above the estimate.

Motor vehicle taxes, based on motor vehicle sales and licenses, produced $19.6 million, which was $0.2 million or 1.3 percent above the prior year but $1.3 million or 6.4 percent below the estimate.

Investments by the treasurer's office produced $12.4 million, a reduction of only $0.7 million from the previous July despite a cut in the Fed Funds Target Rate from 5.25 percent in July of last year to 2.0 percent last month.

Other revenue, which includes investment earnings along with taxes on insurance, inheritance, alcoholic beverages and others, produced $47.3 million. This was $0.3 million or 0.7 percent below the prior year and $15.6 million or 24.8 percent below the estimate.

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