Inflation relief talks resume at the state capitol, possible agreement expected soon

OKLAHOMA CITY (KOKH) — "Real relief, right now" a sign read at a press conference Governor Kevin Stitt had at the end of May.

During that press conference, the Governor announced he was calling a special session so lawmakers could work out a deal on inflation relief measures.

Governor Stitt was insulted by the only inflation relief measure to come out of the regular session: a $75 check for people that wouldn't even be mailed off to residents until December.

"I never expected Republicans to take a page out of Joe Biden's liberal playbook and waste $181 million sending government checks out," Governor Stitt said.

After the Governor's May press conference, in-fighting between the house, senate, and Governor intensified.

State lawmakers did little to move the needle on measures the Governor said he wanted, like getting rid of the regressive sales tax on groceries.

"It’s obvious in today’s climate at the relationship between the Governor and the House of Representatives is not at its highest point, but we’re not going to get involved in political shenanigans," Sen. President Pro Tem Greg Treat, (R)-OKC said on June 14th, after the house advanced a bundle of measures related to the Governor's request and then adjourned for the summer. "We’re going to have a serious and mature conversation about tax reform."

After more than two months of little-to-no action by state lawmakers, a breakthrough might be on the horizon.

The Governor's office told FOX 25 Thursday morning an agreement is on the way.

“Governor Stitt is determined to provide inflation relief for hardworking Oklahomans and looks forward to upcoming discussions with the House and the Senate to determine a path forward for cutting taxes," the Governor's office said in a statement.

The Senate President Pro Tempore's office also hinted a deal might be coming soon.

"The Senate continues meeting frequently to discuss tax reform solutions. Pro Tem Treat is not opposed to cutting taxes or finding a way to get Oklahomans much-needed inflation relief. He is taking a methodical approach to ensure any kind of tax cuts don't have a negative impact on core services like education or roads and bridges. Additionally, by studying the issues, it will ensure anything that is passed isn't overturned by the courts," Pro Tem Treat's office said in a statement.

The Governor is also banking on using money from a massive savings account Oklahoma has right now. It was announced this week that Oklahoma had more than $2.8 billion in savings; something he hopes to tap into to provide inflation relief.

Tax cuts are not expected to help inflation. Temporary relief to people's wallets will help, but battling inflation is most effective at the national level, economists say.

"It's not really clear to me that the state government of Oklahoma should be stepping in and trying to embrace a bunch of knee-jerk reactions just because prices are a little bit higher," Greg Burge, Department Chair of Economics at OU, told FOX 25 in July.