This week marks the start of the 2017 state legislative session and the launch of our new legislative e-newsletter. As we strive to represent American Farmers & Ranchers on all types of policy issues, we will be bringing you the top stories from Oklahoma City and Washington D.C. Please contact us any time if you would like more information.

At high noon on Monday, February 6th, the state legislature convened in joint session to hear from Governor Mary Fallin as she delivered her seventh State of the State address. In this speech she unveiled her executive budget proposal, which was highlighted by calls to repeal the state sales tax on groceries and the state corporate income tax, as well as providing for a $1,000 teacher pay raise. Other major provisions included an additional $1.50/pack cigarette tax and a fuel tax hike of $.07 for gas and $0.10 for diesel, raising them both to $0.24/gallon.

With the state already facing a $900 million budget deficit, the Governor's bold suggestions were met with mixed reviews. Many legislators felt the idea of a fuel tax would be difficult to pass, making the repeal of the grocery sales tax and the teacher pay raise a long shot. We will be keeping a watchful eye on the Governor's call to broaden the sales tax base. While she provided few details, the legislature is expected to discuss and debate taxing many services that have traditionally been exempt (such as insurance.)

In recent years, as legislators struggled to raise revenue and reduce spending in order to balance the budget, Oklahoma schools have also struggled to keep up with the demands placed on them. In 2017, a popular way to potentially address education funding appears to be amending the constitution to increase the maximum amount of ad valorem taxes that can be assessed. AFR members proudly pay our fair share in taxes, but we will be making sure the legislature does not shift a disproportionate burden onto rural landowners.

In 2016, the state of Oklahoma, Choctaw and Chickasaw Nations and City of Oklahoma City reached a historic legal settlement on a variety of disputed water rights issues. With that long-running litigation over, reams of bills have been filed attempting to allocate, study, manage or transfer our water resources. This has traditionally been one of the most emotional and divisive issues around the state. As the session progresses, we will be bringing you updates and information about these critical bills.

With the election of a new president, comes a new set of cabinet officials and many new federal agency executives. Oklahoma's own Attorney General Scott Pruitt has been tabbed to lead the U.S. Environmental Protection Agency and is expected to receive a confirmation vote in the U.S. Senate next week. Agriculture was kept waiting the longest, as former Georgia Governor Sonny Perdue was the last cabinet secretary to be nominated. He will appear before a Senate committee in late February. Oklahoma USDA agencies will receive their new leaders once a Secretary of Agriculture takes office in Washington D.C.